385 
 
 Su532s
 
 STATEMENT 
 
 COSCFRxivi; iiir. 
 
 SULLIVAN AND ERIK 
 
 PENNSYLVANIA, 
 
 WITH A HAP AND DESCRIPTION OF ITS MINES, PROPERTY, ROAD AND 
 COXXECTIONS ; ITS WORK, PROGRESS AJfD FUTURE PROS- 
 PECTS, AND THE 8ECU1UTV AM> AVAILABILITY OF ITS 
 
 FIRST MORTGAGE BONDS. 
 
 NEW YORK, JANUARY, 1868. 
 
 BOSTON: 
 ALFRED MUDOE & SON, PRINTERS, 84 SCHOOL STREET. 
 
 1868.
 
 OFFICERS AND DIKECTOKS. 
 
 M. C. MERCUR, Towanda, Penn. 
 CHARLES MERCUR, Towanda, Penn. 
 
 ©reaieitttfr, 
 
 B. S. RUSSELL, Towanda, Penn. 
 
 H. A. FRINK, Towanda, Penn. 
 
 M. C. MERCUR, Banker, Towanda, Penn. 
 
 C. F. WELLS, President of Penn. & JV. T. Canal & B. B. Co. 
 
 The Hon. GEO. D. JACKSON, Dushore, Penn. 
 
 M. MEYLERT, Laporte, Penn. 
 
 The Hon. ULYSSES MERCUR, M. C, Towanda, Penn. 
 
 J. S. ANDREWS. 
 
 (iittattrial gigfutisi, 
 
 HENRY CLEWS & CO., Bankers, 32 Wall Street, N. Y., 
 
 Company's Office, 111 Broadway, N. Y. 
 
 John A. Stewart, President United States Trust Co., JV. Y. 
 McFarland & Thorne, Leather Merchants, 76 Oold Street, \. Y 
 Bank ok the Metropolis, Boston, Mass. 
 Townsend, Whelen & Co., 309 Wahiut Street, Phila., Penn. 
 J. S. Potter, Arlington, Mass. ^J^^'VERSfTY OF 
 
 ILLINOIS LIBRARY 
 
 AT URBANA. CHAMPAIGN 
 BOOKSTACKS
 
 The Sullivan and Erie Coal and Railroad Company 
 was incorporated by a Special Act of the Legislature of 
 the State of Pennsylvania, approved March 23d, 1 865 — 
 a copy of which is appended to this Prospectus. 
 
 ITS FRANCHISES. 
 
 The rights conferred upon the Company by the said 
 charter are of great value, and may be briefly enumerated 
 as follows : 
 
 I. The power and right to purchase and hold in fee 
 sim^jle, or by lease, real estate in the Counties of Sullivan 
 and Bradford, in the State of Pennsylvania, provided 
 only that the amount of land held in fee simple shall 
 not exceed six thousand acres. 
 
 II. The exclusive power and right to mine, prepare, 
 transport to mark( t. ;iiul soil the coal and other products 
 of their lands. 
 
 III. The exclusive right to construct and operate a 
 jingle or double track railroad from the coal fields of 
 '^Sullivan County, via Towanda, to any point on the Erie 
 £l{ailway, situate and lying between the Chemung and 
 
 iSuscpiehanna Rivers. 
 
 ^ 1\. Authority to connect the said road, if desired, 
 owith any canal or other railroad in the line of their route, 
 and to use, with consent, as a part of its line, the track 
 Sjor grade of any other railroad.
 
 V. The right to construct branches or lateral roads 
 to any point in the Counties of Bradford, Sullivan or 
 Wyoming. 
 
 VI. Power to construct, operate, and maintain a 
 telegraph line from Laporte, Sullivan County, via 
 Dushore, to Towanda, Bradford County. 
 
 VII. The right to borrow money to an amount not 
 exceeding the capital stock, and issue therefor bonds of 
 the Company, with seven per cent interest, secured by a 
 mortgage of and upon the road and property, or any por- 
 tion of either. 
 
 ITS ORGANIZATION, PROPERTY, AND VALUE. 
 
 Under this charter the Company organized with a 
 capital of One Million Two Hundred Thousand Dollars 
 — One Million of which has been paid in and invested 
 in the purchase of the franchise, together with five 
 thousand acres of developed coal land, in fee simple, situ- 
 ated in the heart of the Sullivan County Coal Fields, some 
 six miles south of the town of Dushore. The tract of 
 land so obtained lies in a semi-circular body on a spur 
 of the Alleghany Mountains, and is thickly covered with 
 a remarkable growth of timber of great variety and 
 value, and the heaviest quality, being mainly oak, black 
 and white birch, hickorj , walnut, maple, hemlock, pine, 
 and whitewood. The parties owning the land having 
 discovered large outcroppings of coal in the side of the 
 mountains, commenced the development of the same 
 under the supervision of able and experienced geologists
 
 ail I ea^iuejis, by boring and otheissise testiug the 
 extent and value of its mineral deposits ; the result of 
 these tests established the fact that nnder forty-five hun- 
 dred acres of the property now owned by the Company, 
 and some seventy miles farther north and west than any 
 anthracite coal field known, lay a large, valuable and 
 hitherto undiscovered bed of anthracite coal of a purity 
 before unknown to exist in this country, and which the 
 openings, subsequently made, revealed the upper vein 
 to be of the depth of twelve feet. These openings have 
 since been slowly but steadily worked, and the coal 
 taken therefrom subjected to careful analysis by compe- 
 tent chemists, mineralogists and others, and submitted to 
 various experiments in the way of testing its heat-giving 
 qualities, its purity, freeness from clinker, and other 
 obnoxious substances. 
 
 The nature and character of the coal of this Company 
 may be judged of from the analysis of Prof. Brush, who 
 declares that the coal of the Sullivan and Erie Company, 
 while semi-bituminous in its outward appearance, is really 
 the '■'^ purest anthracite coal ever minedin this country^ being 
 entirely free from sulphur or slate" — a feature of incal- 
 culable benefit possessed by no other coal yet discovered on 
 the American Continent, thus rendering it available in 
 the manufacture of steel, iron, etc., and of unequalled 
 value for steam and heating purposes, taking the 
 place of peat and other fuels which are required to be 
 free from sulphur, and which have been and are con- 
 stantly superseding coal. It is believed that it will 
 entirely supersede the use of all other coals now used in 
 railroad locomotives as soon as it can be delivered in the 
 markets of the country, and be generally adopted by all
 
 railroads that can possibly obtain it. The natural advan- 
 tages of the position of the Company's coal field are 
 unsurpassed. The openings are all made in the side of 
 the mountain, and the mines being thus reached by 
 drifts, drain themselves (saving the vast outlay generally 
 incurred in procuring buildings, shafting, breakers, 
 crushers, rollers, engines, and pumps), while the cars 
 can be filled on the main track at the very mouth of the 
 mines, and much additional expense, time and labor 
 thus saved. 
 
 THE ROAD. 
 
 That all profits in the way of freight and transporta- 
 tion should accrue to the Company, the line of a rail- 
 road was surveyed and laid out, and the same is now 
 wholly under contract, and the work is being vigorously 
 pushed throughout the entire line. This road will start 
 at the mines, and run direct to Towanda, Bradford 
 County, a distance of twenty-nine miles, connecting 
 there with the North Branch Canal and the Pennsyl- 
 vania and New York Canal and Railroad Company. 
 which connect at Waverly with the Erie Railway. Ref- 
 erence to the accompanymg map will correctly exhibit 
 these and the more remote but equally valuable railroad 
 and canal connections of the road and the extensive ter- 
 ritory and markets which they open to the products of 
 the Company's property. 
 
 A great portion of the grading has been completed 
 during the past summer and fall, the ties are mostly out 
 and delivered, and the principal portion of the material 
 for bridges, etc., on the ground, and it is the determina- 
 tion of the Company to complete their road for business
 
 early the coming fall, hi \w\\ ol this tact, the Company 
 have erected extensive mills, and are cntting a large 
 quantity of various kinds of lumber, to be seasoned and 
 ready for shipment on the completion of their road, 
 which, in connection with their coal business, will net 
 the Company a large profit the first year, A promi- 
 nent feature of the road is its grade, which, from the 
 mines down, is all in favor of trade, enabling the Com- 
 pany to bring to market large trains of loaded cars with 
 great ease, while the same power will be ample to return 
 the empty cars. The road runs through one of the most 
 beautiful and fertile valleys in the State, and it is believed 
 will do a paying business independent of the illimitable 
 and profitable freight which will always be waiting for it 
 in the coal field's of the Company. 
 
 That these facts are entitled to careful consideration, 
 and have attracted the attention of capitalists and others, 
 is a matter of no surprise. One incident alone will 
 serve as an illustration. During the past summer, 
 wealthy and prominent citizens of Central New York, 
 becoming acquainted with the enterprise, have visited 
 the Company's property, carefully examined its manage- 
 ment and prospects, and become so profoundly impressed 
 with its real merit iis to organize a company and pur- 
 chase the right of way for a road from Waverly, the 
 connection of the Sullivan and Erie, witli the New York 
 and Erie, across the State of New York to a connection 
 with the Erie Canal and the New York Central Railroad, 
 at Cayuga and Auburn, thus making Central New York, 
 and all points north, west and east, a large and near 
 market for the Company's coal.
 
 THE BONDS OF THE COMPANY. 
 
 For carrying to completion the work herein con- 
 templated and set forth, the Company has issued One 
 Million Dollars in Bonds, of the denomination of $500 
 each, having twenty years to run from November 1st, 
 1866, bearing interest at the rate of seven per cent per 
 annum, payable semi-annually at the American Exchange 
 National Bank of New York. To secure the payment 
 thereof, the. Company has executed to John A. Stewart, 
 Esq. President of the New York Trust Company, as 
 Trustee, its mortgage (a copy of which is hereto ap- 
 pended) on the entire road and all of its coal property, 
 stations, buildings, and other appurtenances, and its 
 franchises. And as further security has created and 
 reserved a Sinking Fund for the payment of the bonds 
 of ten per cent of the annual net income of the Com- 
 pany, the right of redemption of the bonds by lot at one 
 hundred and five cents on the dollar being reserved, and 
 the privilege given the holder of converting the principal 
 sum into the capital stock of the Company at par, w hich, 
 by those who are familiar with the prospects of the Com- 
 pany^ must regard as a very favorable feature in these 
 securities. 
 
 The bonds are issued only as the work progresses, 
 and represent not only the first and only lien upon a 
 completed, equipped, and productive railroad, but a first 
 lien, also, upon an extensive developed coal property^ 
 fully paid for^ the value of which alone is worth more 
 than the entire bonded debt of the Company at the 
 present time ; and on the completion of the road will be
 
 worth many times the amount of the bonds, which can 
 be issued. The completion of which, and putting 
 everything in running order, is fully provided for in the 
 bonded debt, thereby insuring the entire net earnings to 
 the payment of the interest on the bonded debt, the 
 sinking fund for the payment of the bonds, and divi- 
 dends on the capital stock of the Company. 
 
 Extended comment upon the security of these bonds, 
 which are now offered for sale, is believed unnecessary, 
 as the facts herein stated, the high social and pecuniary 
 standing of the Directors and officers of the road, and the 
 rare and valuable franchises and property possessed by the 
 Company, and mortgaged as security for the payment of 
 the bonds, fully warrant the statement that no more safe 
 and profitable securities for investment have ever been 
 presented than those now offered by this Company, which 
 must soon realize rates largely in advance of the price 
 at which they are now offered. 
 
 niARTER OF TflK CO >f PA NY. 
 
 All A</ fn incorporate the >iuliivan and Erie Coal and Railroad 
 
 Company. •*, 
 
 Section 1. Be it enacted, by the Senate and House of Repre- 
 sentatives of the Commonwealth of Pennsylvania, in General 
 Assembly met, and it is hereby enacted by the authority of the 
 same, That M. C. Mercur, C. F. Welles, Jr., George D. Jackson, 
 Michael Meylert, Ulysses Mercur, Jervis Langdon and F. L. Page, 
 their associates, successors, and assigns, be, and they hereby are, 
 constittited a Iwdy politic and corporate by the name, style, and 
 title of the Sullivan and Eric Coal and Railroad Company, with 
 all the rights, pri\nleges, and franchises incident to a Corporation, 
 with power to purchase and hold real estate in fee simple, or by 
 
 2
 
 10 
 
 lease, in the counties of Sullivan and Bradford, provided that the 
 amount of land they shall hold in fee simple shall not at any one 
 time exceed six thousand acres 
 
 Sect. 2. The said Company shall have the right to mine, pre- 
 pare, transport to market, and sell the coal and other products of 
 their lands, and to lease or sell their lands and the minerals, or any 
 portion thereof. 
 
 Sect. 3. The said Company shall have the right to construct 
 .'ind operate a single or double track railroad from the coal fields of 
 Sullivan County, by the way of Towanda, to form a connection 
 with the New York and Erie Railroad between the Chemung and 
 Susquehanna rivers, with authority to connect with any canal or 
 other railroad in the line of their route, and to use as a part of 
 their line the track or grade of other railroads, provided the con- 
 sent of said road or roads is first obtained, with power to construct 
 branches or lateral roads to any point in the counties of Bradford, 
 Sullivan, or Wyoming ; and in the location, construction, and man- 
 agement of said railroad and branches, said Company shall have 
 all the powers, privileges, and immunities, and be subject to all the 
 restrictions of an act entitled " An Act regulating Railroad Com- 
 panies," approved the nineteenth day of February, Anno Domini 
 one thousand eight hundred and forty-nine. 
 
 Sect. 4. The capital stock of said Company shall consist of two 
 thousand shares, of one hundred dollars each, with the right of the 
 Company to increase their capital stock from time to time to such 
 an amount as in their opinion may be necessary to carry out the 
 true intent and meaning of this Act ; and the said Company may 
 borrow money to an amount n6t exceeding their capital stock, and 
 issue therefor, from time to time, the bonds of the Company, witii 
 interest not exceeding seven per centum per annum ; and for 
 securing the payment of said bonds, with interest, execute a mort- 
 gage or mortgages of and upon their road and property, or upon 
 any portion of either. 
 
 Sect. 5. The aff'airs of said Company shall be managed by a 
 Board of Managers, to consist of not less than three, or more than 
 seven, stockholders, who shall elect one of their number President, 
 and shall have power to make and establish such rules, regulations, 
 and by-laws as they may deem necessary for the proper and efllcient
 
 11 
 
 management of their business, witli the right to alter and amen<l 
 the same IVom time to time. 
 
 Sect. 6. The said Company shall have power to consfruct, 
 operate, and maintain a telegraph line from Lajwrte, Sullivan 
 County, by the way of Dushore to Towanda. 
 
 Sect. 7. The stockholders of said Company shall be jointly 
 and severally liable in their individual capacities and estates for 
 all debt« due to workmen and laborers employed by them, and for 
 supplies furnished said Company, to .be sued for, and collected as 
 is provide<l by the twelfth, thirtcentli, and fourteenth section of 
 the act incor|X)rating the Lackawanna Iron and Coal Company, 
 approved April fifth, Anno Domini one thousand eight hundred and 
 fifty-three, provide<l they shall not be individually liable for any 
 l>onded debt of the Company. 
 
 Sect. 8. The said Company shall pay to the Treasurer of the 
 Commonwealth a tax of one-half of one per centum on the capital 
 stock thereof, and upon all increase of the same, payable in four 
 equal annual instalments, the first payment to be made within one 
 year from the subscription to and pa^'ment of said stock. 
 
 (Signed,) A. G. OLMSTEAD, 
 
 Speaker of the House of Reps. 
 (Signet!,) WM. J. FUN ELL, 
 
 Speaker of the Senate. 
 
 Approved the twenty-third day of March, Anno Domini one 
 thousand eight hundred and sixty-five. 
 
 (Signed,) A. G. CURTIN. 
 
 MORTGAGE OF SULLIVAN AND ERIE COAL AND RAILROAD CO. 
 TO JOUN A. STEWART, ESQ., TRUSTEE. 
 
 This Indenture, made the first day of NovemJ^er, A. D. ooe 
 
 thousand eight iiundrod and sixty-six, between the " Sullivan and 
 Erie Coal and liailroml Company " of the first part, and John A. 
 Stewart, of New York, Trustee, of the second part ; 
 
 Whereas^ Said party of the first part was duly incori>orated by 
 an Act of the Legislature of the Commonwealth of Pennsylvania, 
 approve<l the twenty-third day of March, A. D. one thousand eight
 
 12 
 
 hundred and sixty-five, entitled " An Act to incorporate the Sulli- 
 van and Erie Coal and Railroad Company," wherein it was pro- 
 vided inter alia that the " Capital Stock of said Company shall 
 consist of Two Thousand Shares of One Hundred Dollars each, 
 with the right of the Company to increase their Capital Stock from 
 time to time, to such an amount as in their opinion might be neces- 
 sary to carry out the true intent and meaning of said Act." And 
 it was also provided that "• sa'.d Company might borrow money to 
 an amount not exceeding their Capital Stock, and issue therefor, 
 from time to time, the bonds of the Company, with interest not 
 exceeding seven per centum per annum ; and for the securing the 
 payment of said bonds, with the interest, execute a mortgage or 
 mortgages of and upon their road and property, or upon any por- 
 tion of either." 
 
 And whereas, In pursuance of said power, said Company have 
 increased their Capital Stock to One Million Two Hundred Thousand 
 Dollars, and have issued bonds bearing even date herewith, which 
 bonds are for the sum of Five Hundred Dollars each, and are 
 numbered from One to Two Thousand, inclusive [amounting in 
 the aggregate to One Million of Dollars], and are payable on the 
 first day of November, A. D. one thousand eight hundred and 
 eighty-six, at the American Exchange National Bank, in the City 
 of New York ; which said bonds have coupons annexed for interest 
 thereon at seven per centum per annum, payable at the said Bank 
 in the said City of New York, on the first days of May and Novem- 
 ber in each and every year. 
 
 Now this Indenture witnesseth. That the said Sullivan and Erie 
 Coal and Railroad Company, in pursuance of the powers and 
 authorities aforesaid, and for the better securing the payment of 
 the said bonds and the interest thereon issued as aforesaid, and for 
 and in consideration of the sum of One Dollar to them in hand 
 paid by the party of the second part, the receipt whereof is hereby 
 acknowledged, have granted, bargained, sold, released and con- 
 firmed, and by these presents do grant, bargain, sell, alien, enfeoff, 
 release, convey and confirm unto the said John A. Stewart, his 
 successor and successors, in the trusts hereinafter mentioned, all 
 that certain piece, parcel, or tract of laud lying and being in the 
 Townships of Cherry and Colley, iu the County of Sullivan and
 
 Id 
 
 SUte of Pennsylvania, bounded and described as follows, to wit : 
 Beginning at a Hemlock on the north bank of the Loyalsock Ci-eek 
 in the South line of the Henry Epple tract, thence along said line 
 north fifty-seven and one-hulf degrees west, forty-one perches to a 
 post corner; thence by the William Van Phal warrant south 
 thirty-two and a half degrees west, eighty-two perches, to 
 the north bank of said Loyalsock Creek at high-water mark ; 
 thence down the Siune at high-wat«r mark, the several courses 
 and distances thereof, about six hundred sixty perches, 
 to a hemlock corner on line between the William Stein and 
 Joseph P. Norris warrants; thence along the line of the said 
 Joseph P. Norris warrant north thirty-two and a half degrees 
 east, seventy-nine and five-tenths perches to a dead hemlock corner ; 
 thence north two hundred and eighty-nine and four-tenths perches 
 to a post corner in the west line of the George Roberts warrant ; 
 thence along the line of the Samuel M. Fox warrant north thirty- 
 two and one-fourth degrees east, two hundred and eleven perches, 
 to a post conier ; thence south fifty-eight degrees east, two hundred 
 and forty perches, to a fallen birch ; thence north thirty-two and 
 one-half degrees east, two hundred and twenty-four perches to a 
 post comer; thence south fifty-nine degrees east, seventy-four 
 perches to a hemlock comer ; thence south fifty-seven and one-half 
 degrees east, seventy-two perches to a birch corner ; thence south 
 fifty oeven degrees east, two hundred and fifty-five perches to a 
 beech comer ; thence south sixty and three-fourths degrees east, 
 one hundred and seven i)erches to a fallen beech corner ; thence 
 south fifty-seven and one-half dfegrees east, two hundred and forty 
 perches to a post corner ; thence north three degrees east, one 
 hundred and eighty-four perches to a post corner ; thence south fifty- 
 eight and one-hulf degrees east, eighty-nine perches to a i>ost 
 corner; thence north thirty-two and one-half degrees east, one 
 hundred and fifty-nine and five-tenths perches to a post comer ; 
 thence north fifty-eight degrees west, two hundred and forty i>er- 
 ches to a i>ost corner ; thence north thirty-two and one-half degrees 
 east, two ijerches to a birch corner ; thence north fifty -seven and 
 three-fourths degrees west, one hundred and forty -seven perches to 
 a i>ost corner ; thence north thirty-two degrees east, twelve i>erche8
 
 14 
 
 to a post corner ; thence north fifty-seven and one-half degrefes 
 west, thirty-six and seven-tenths perches to a beech stump ; thence 
 north thirty-two degrees east, one hundred and five-tenths perches 
 to a hemlock corner ; thence south sixty degrees east, thirty-seven 
 and eight-tenths perches to a post ; thence north thirty-one degrees 
 east, eighty-six and three-tenths perches to a beech corner ; thence 
 south fifty-eight and one-half degrees east, one hundred and forty- 
 eight perches to a post corner ; thence south thirty-two and a half 
 degrees west, thirty-five perches to a post comer ; thence south 
 fifty-eight and one-half degrees east, one hnndred and fifty-six 
 perches to a post corner ; thence south thirty-two degrees west, 
 sixty-seven and six-tenths pcFches to a corner ; thence south fifty- 
 eight degrees east, two hundred and forty-two perches to a corner ; 
 thence south tliirty-two and one-half degrees west, forty-seven and 
 four-tenths perches to a beech corner ; thence south two and one- 
 half degrees west, twenty-six and three-fourths pesches to a post 
 corner ; thence south eighty-seven and one-half degrees east, one 
 hundred and thii-ty perches to a post corner ; thence south two and 
 one-half degrees west, one hundred and fifty-six and three-fourths 
 perches to a post corner ; thence south eighty-seven and one-half 
 degrees east, three hundred and twenty aud five-tenths perches to 
 a post corner ; thence south three degrees west, one hundred and 
 twenty-nine perches to a Maple corner in the line of the bellas 
 lands ; thence along the same south fifty-three and three-fourths 
 degrees west, two hundred and sixtj'-eight porches to a corner ; 
 thence north eighty-seven and one-fourth degrees west, two 
 hundred forty-six and five-tenths perches to a birch corner in 
 line of John Culbertson warrant ; thence by the same north three 
 degrees east, eighty-one and three-tenths perches to a beech 
 corner ; thence along the north line of said Culbertson warrant 
 north eighty-seven and one-fourth degrees west, two hundred and 
 thirty-six perches to a post on the north bank of the Loyalsock 
 Creek, and in east line of David Zeigler warrant ; thence down the 
 Loyalsock Creek at high-water mai-k, the several courses and 
 distances thereof, about six hundred and twenty-eight perches to 
 the place of beginning, containing Jive thousand acres of land^ more 
 or less, being the following-named warrants aud parts of war-
 
 15 
 
 rants, viz. : John Raker and Andrew Epple and parts of Philip 
 Stein, Georp^ Roberts. Joseph P. Norris, William Stein, Leonard 
 Jnoohv, Philip Wager, Henry Epple, Peter I leister, David Ziegler, 
 SsmuK'l Carpenter, Heber Chase, Dudley Chase, Elipalet Gillet, 
 Thomas Odion, Richard Tomlison, Jacob Ritzer, Joseph Tatem, 
 Colinson Reed, Getting Gover, and Christian Getting, and l)e;ng 
 all the coal lands of said party of the first part. Also all 
 the lands of the said party of the first part now or here- 
 after to be nsed and occupied as the road bed of said Railroad 
 fk-om their mines in said County of Sullivan to the present 
 nortliern terminus thereof, at or near the Borough of Monroe, 
 in the County of Bradford. Also the railroad^ and all the lauds of 
 the said party of the first part now or hereafter to l>e occupied 
 by them within the limits aforesaid, for the erection of depots, con- 
 structing sidings, etc., and all the corporate franchises of said 
 Company, as secured by the charter of said Company inand to the 
 same. Tof/elher with all and singidar the buildings and improve- 
 ments, rights, liberties, privileges, hereditaments and appurtenan- 
 ces to the same belonging, or in any wise appertaining, with rever- 
 sions and remainders, rents, issues and profits thereof. To have 
 and to hold the said lands, rights and franchises hereby granted 
 unto the said John A. Stewart, his successor and successors, upon 
 the following special trusts, and to and for the following uses and 
 purposes — that is to say : In Trout to and for the use of the per- 
 sons, l>odies politic and corporate, who are or may be the holders of 
 said bonds, according to the provisions of the several bonds and of 
 said Act of Assembly incorporating said Company : but subject to 
 the exclusive possession, use, occupancy and control of the said 
 Company of the first part, until the said bonds shall be forfeited, 
 and until by the provisions and stipulations herein contained, the 
 title of the said Company shall be divested : And the said Com 
 pany hereby covenant and agree to make, execute, and deliver all 
 such further conveyances an<l assurances in the law as shall be 
 needful, from time to time, for carrying into effect fully and entirely 
 the purpose of this mortgage in securing the said bondholders 
 which counsel learned in the law may devise and advise ; it being 
 the intent :nul purpose of these pTesents to give the said party of
 
 16 
 
 the second part as security as aforesaid all the lands, rights, and 
 franchises hereinbefore described and mentioned. 
 
 This indenture farther witnesseth^ that if default shall be made in 
 the payment of the interest or of the principal of said bonds when 
 and at the time the same shall become due, according to the true 
 intent and meaning of said bonds, and of coupons for interest there- 
 to attached, for the period of sixty days after the same shall become 
 due and payable as aforesaid, then and from that time it shall and 
 may be lawful, and it is hereby made the duty of said party of the 
 second part and his successor in said trusts, to proceed at once to 
 advertise the said lands, rights, and franchises, for sale at auction 
 at such place in the City of New York as he may appoint, giving 
 at least six months notice of such sale in at least three weekly papers 
 of said city, and in such other papers as the Court of Common 
 Pleas of said County of Bradford, upon application to them for 
 that purpose, may direct, and upon such notice to sell all the said 
 mortgaged premises and property to the highest bidder, and upon 
 such sale full, perfect, and entire conveyances and assurances in 
 law, to make, execute, and deliver: Provided that before such 
 advertising, such person or persons who are the bona fide holder 
 or holders of at least one-tenth of all said bonds, and to whom 
 interest or principal is due and unpaid as aforesaid, shall by appli- 
 cation in writing to the said Trustee or his successor desire such 
 proceedings to be had : And provided further, that if at an}' time 
 before the sale, the said Company shall pay off and discharge 
 the amount then due upon said bonds, with costs, then all proceed- 
 ings for said sale shall cease and determine, but upon anj- subse- 
 quent failure to pay, the same may be.renewed as aforesaid. This 
 indenture further witnesseth, that the said Company have, and do 
 hereby release, all equity of redemption of the said mortgaged proi> 
 erts and all the rights, ben";fits, and privileges secured to mortgag- 
 ors by any laws of the State of Pennsylvania, in and to said mort- 
 gaged property and estate, and do constitute and appoint the said 
 Trustee and his successor in trust their true and lawful Attorne}', for 
 them, and in their name, place, and stead to sell and convey the 
 said mortgaged premises and property to the purchasers thereof at 
 public sale, as aforesaid, as fully, effectually, and with like effect,
 
 17 
 
 as the said Company is or may l>e authorized to do by the laws of 
 the S:ate of Pennsylvania : And the proceetls of said sale to dis- 
 tribute as follows, to wit : first to pay all the expenses and coste of 
 said sale, including such compensation to the Trustee under these 
 presents as shall l)e just and proper ; secondly, to pay and dis- 
 charge the said bonds, principal and interest ; thirdly, to pay the 
 balance or overplus to the said Corporation. In case of the death 
 or incapacity of the sai<l Trustee to act, then it shall and may be 
 lawful for any of the holder or holders of said bonds, or of the Sulli- 
 van and Erie Coal and Railroad Company, to apply, by petition, 
 to the Court of Common Pleas of said County of Bradford, setting 
 forth the necessary facts, and thereni)on it shall and may be lawl\il 
 for said Court, if so prayed for and required in and by said peti- 
 tion, upon thirty days notice given in the manner directed by said 
 Court, to appoint a suitable person or persons as Trustee or Trus- 
 tees in the place of such Trustee so deceased or incapable of acting 
 as aforesaid. And the Trustee or Trustees so appointed shall have 
 the same rights, powers and immunities, and be subject to the 
 same duties and liabilities as the said John A. Stewart, or his suc- 
 cessor, under and by virtue of the covenants, agreements, and stipu- 
 lations herein contained ; provided that the Trustee or Trustees so 
 appointeil by said Court shall give such security for the faithful dis- 
 charge of his or their duties, as the Court shall require. And the 
 party of the first part hereby covenants and agrees, by and with 
 the said party of the second part, that the said party of the first part 
 will well and faithftilly reserve one-tenth of its net annual earnings 
 as a sinking ftind from which to pay the principal of the debt hereby 
 secured, and to invest the said one-tenth of its earnings in the bonds 
 hereby secured, provided always that such bonds can be purchased 
 at par or under. But and if the said bonds cannot be so purchased, 
 then and in that case it is mutually covenanted that when the 
 accumulations of the sai''. sinking Aind shall amount to twenty-five 
 thousand dollars, the party of the first part shall proceed to desig- 
 nate by lot forty bonds, and after such selection and designation, 
 to give notice to the holders of said bonds, by advertisement, twice 
 a week for sixty days, in«two newspapers published in the Cities of 
 N^ York artd Philadelphia respectively, that they present the 
 8
 
 same at the time and place in said notice mentioned, for payment 
 at five per cent above their par value, and that interest shall cease 
 to grow on the said bonds after sixty days from the first insertion 
 of such notice. And the party of the first part further covenants 
 that the holder of any bond or bonds hereby secured, may, at any 
 time, convert the principal sum thereof into the capital stock of 
 the Company at par, on surrendering the bond with the coupons, 
 not then due, annexed. Provided, that it or they have not yet 
 been designated for redemption, or if it or they have been desig- 
 nated, that sixty days have not elapsed sinoe the first published 
 notice of sut-h designation. It is further stipulated and hereby 
 agreed that, if under the operation of the said sinking fund, 
 or otherwise, said Company of the first part shall have dis- 
 charged or taken up for cancellation one hundred thousand dollars 
 of said bonds, the Trustee or Trustees shall, upon request made by 
 said Company, enter upon the Record of said Mortgage special 
 satisfaction of said amount, and so on from time to time whenever 
 and so often as said amount shall be withdrawn and discharged by 
 said Company. In witness whereof^ the said parties have hereunto 
 interchangeably affixed their seals (the seal of said party of the 
 first part being hereto affixed by the direction of the President and 
 Managers of said Company), the day and year first above written. 
 Sealed and delivered in presence of us : 
 W. T. BISHOP, Jr., (Signed) 
 
 JOHN W. MIX. MAHLON C. MERCUR, 
 
 Pres. Sullivan and Erie Coal and R. R. Co. 
 
 '■■ Seal of Sullivan aiid Krl*" 
 : Coal and llallroad Co. 
 
 Attest. 
 
 CHARLES MERCUR, 
 
 Secretary. 
 
 $aoo u. s. 
 
 Krv. stamp. 
 Cancelled. 
 
 ♦200 U. S. 
 Rev. Stamp, 
 CancelU'd. 
 
 ♦200 U. S. 
 Rev. Stamp. 
 ' Cancelled. 
 
 $200 U. 8. 
 Rev. Stomp. 
 : Cancelled. 
 
 $200 U. S. 
 
 Rev. Stamp. 
 
 Cancelled.
 
 19 
 
 State of Pennstlvaxia, ) 
 Bradford County. ) **' 
 
 Bsfoi-e me, the subscriber, a Notary Public in and for the State 
 
 and County aforesaid, on the Erst day of November, A. D. 1866, 
 
 personally appeared Mahlon C. Mercur, President of the Sullivan 
 
 and Erie Coal and Railroad Company, and acknowledged that he, 
 
 as President of said Company, signed, executed and delivered the 
 
 foregoing Indenture of Mortgage, and affixed the corporate seal of 
 
 said Company thereto aa the act and deed of said Corporation, 
 
 and that said seal, so affixed, is the proper corporate seal of said 
 
 Sullivan and Erie Coal and Railroad Company, and duly attested 
 
 by the Secretary of said Corporation. "Witness my hand and 
 
 notarial seal, the day and 3'ear above written. 
 
 (Signed) JOHN W. MIX, 
 
 Notary Public. 
 
 The foregoing is a correct copy of a deed of trust executed by 
 the Sullivan and Erie Coal and Railroad Company, in my posses- 
 sion. 
 
 JOHN A. STEWART, 
 
 New York, March 9, 1867. Trustee. 
 
 The following letters from M. C. Mercur, President 
 of the Road, Messrs. Jay Cooke & Co., and John A. 
 Stewart, Esq., addressed to gentlemen in New York and 
 Boston, in reply to inquiries made concerning the status 
 of the Company and its bonds, are inserted, as they con- 
 tain some statements of facts which may not be found 
 elsewhere : 
 
 LETTER OF M. C. MERCUR, PRESIDENT SULLIVAN AND ERIE 
 C. AND R.R. COMPANY. 
 
 J. S. PoTTKR, Arlington, Mass. : 
 
 Dear Sir, — In relation to our Railroad and Coal property, we 
 arc organized with a capital of $1,200,000, of which one million is
 
 20 
 
 paid in and has been expended in the purchase of five thousand 
 acres of valuable coal land, heavily covered with valuable timber, 
 on which we are now working a twelve foot vein of a superior qual- 
 ity of soft anthracite coal. We are constructing a railroad from 
 the mines to connect with the railroads and canal at this place. 
 During the past summer and Fall a large force has been at work 
 upon the road and a great portion of the work is now graded. The 
 most of the cross-ties and the greater proportion of the material 
 for bridging, etc., are on the line of the road, and we expect to 
 have the road finished and ready for the Fall trade of 1868. In 
 view of this, we are now manufacturing on our lands, to have sea- 
 soned and ready for market at that time, a large quantity of birch, 
 maple, cherry, beech and ash lumber, which in itself will give a 
 profitable tonnage to our road and yield the Company a heavy 
 profit. And we believe, aside from the lumber trade, that the 
 annual profit from our coal, increasing as it must from year to year, 
 will soon make our Company one of the best paying and most suc- 
 ces9f|^ coal and railroad Companies in the State. Upon our coal 
 lands, railroad franchises, depot grounds, etc., we have placed a 
 mortgage of one million dollars, and issued bonds therefor. We 
 are, however, only using such portion of the bonds as are 
 required in building our road, developing the property, etc. This 
 bonded debt is the only lien upon our property, road and fran- 
 chises. Our title to the land is perfect and free from all and every 
 incumbrance, except the above-named mortgage. Mr. Phelps, 
 the Attorney of John A. Stewart, Esq., the Trustee, pronounces it 
 perfect. I consider the value of the lands and property of the Com- 
 pany at this time fully equal to the amount of the bonded debt, and 
 at the completion of our road our lauds alone will be worth many 
 times that amount? Mining as we do from drifts, the mines drain 
 themselves, and we are saved the heavy expense of pumping that 
 nearly all other anthracite coal mines in the State are subject to. 
 Added to this, the purity of our coal and the thickness of the vein 
 enable us to mine and load in cars at about one-half the usual cost 
 of mining coal in this State, and as our coal can be placed in the 
 interior of the State of New York at least one dollar less per ton 
 than any other anthracite coal, we believe that at the same price
 
 21 
 
 we can take the market. I consider our bonds inferior to none 
 placed in the market, the eonpons being payable in New York 
 City, and at the option of the holder convertible into our stock 
 — and I believe that a careftil examination will satisl^' any expe- 
 rienced coal man that the intrinsic value of our stock is above that 
 of either the Pennsylvania Coal, the Delaware & Hudson Canal and 
 Coal Company, or the Delaware, Lackawanna and Western Rail- 
 road and Coal Company. 
 
 In relation to the prompt and regular payment of the interest 
 and the bonds at maturity, the bondholder has not only the 
 security of the entire property, railroad and franchises, but the 
 strong personal interests of the officers and stockholders to make 
 it largely remunerative to those who invest in them. 
 Yours respectfully, 
 
 M. C. MERCUR, President. 
 
 STATEMENT OF JAY COOKE & CO. • 
 
 Jay Cooke & Co., Bankers, 
 114 South Tiiikd Strkbt, Phil., April 4, 1867. 
 
 } 
 
 Dear Sir, — We are personally acquainted with Mr. M. C. 
 Mercur, and know him to be a gentleman thoroughly relillble in 
 every particular. 
 
 Yours, ve.y truly, 
 
 JAY COOKE & CO. 
 
 LETTER OF JOHN A. STEWART, ESQ.. TRUSTEE. 
 
 UNtTED Statbs Tkdst Co. ov Nkw York, > 
 
 No. 48 Wall, Cob. William Street, April 8, 1867. ) 
 
 Dear 5»r, — In reply to yours of 8d inst., requesting information 
 in regard to the bonds of the Sullivan & Erie Coal and Railroad 
 Company, 1 would state that at the request of Messrs. Andrews 
 and Mercur, I made a personal examination of the mortgaged 
 proi>crty last January, and that in my judgment they have a very
 
 22 
 
 valuable coal property, and such as to warrant the building of the 
 road ; that the principal parties interested, Messrs. Mercur & 
 Wells, are wealthy and energetic men, quite familiar with the 
 management of coal interests. The contractor, Mr. J. S. Andrews, 
 appears to be honest, energetic and capable, and has impressed me 
 favorably. 
 
 I have no interest in the bonds, other than as Trustee, and 
 should deem them a safe investment at eighty cents on the dollar. 
 1 would suggest the propriety of j'our visiting the mines. 
 Very respectfully yours, 
 
 JOHN A. STEWART. 
 
 CERTIFICATE OF TITLE OF PROPERTY" OF THE COMPANY. 
 
 The following certificates of the Hon. Ulysses Mercur, M. C, 
 and Wm. W. Phelps, Esq., as to the title of the Company's prop- 
 erty, fully explain themselves : 
 
 TowANDA, Pa., July 24, 1867. 
 
 I hereby certify that I have examined the title to the five thou- 
 sand acres of land described in the mortgage executed by the Sul- 
 livan ^& Erie Railroad Company, to John A. Stewart, Trustee, 
 bearing date the first da}'^ of November, 1866, and given to secure 
 the payment of the bonds therein recited, and find that said Com- 
 pany, at the date of said mortgage, had a good and unincumbered 
 title in fee simple to said lands, so that the aforesaid mortgage is 
 
 the first lien upon them. 
 
 ULYSSES MERCUR. 
 
 I have examined the Company's title to the premises referred to 
 
 and approve of the same. 
 
 WM. WALTER PHELPS, 
 
 26 Exchange Place, N. Y.
 
 23 
 
 ANALYSIS. 
 
 The following is the analysis of Professor Brush, of 
 Yale College, referred to within : 
 
 Carbon 89.29 
 
 Volatile matter (chiefly water) . . 5.06 
 
 Ash 5.65 
 
 100.00 
 
 *
 
 UNIVERSITY OF ILLINOISURBANA 
 
 HHi JO 
 
 Aaviian