C c / l Ithaca and Athens Railroad Company. SEVEN PER OENTT. FIRST MORTGAGE BONDS. Principal and Interest payable in New York in GOLD, free of G overnment Tax . Principal due in Twenty Years from July 1st, 1870. r CHARLES J. PUSEY, > .... . y 78 & 80 Kvoadwai), New York, \ AGENT FOR THE SALE OF BONDS. Hosford & Sons, Printers. 'THE ITHACA & ATHENS RAILROAD 00. President, ElZiPA.A. OOPX PUjPj- Vice-Pres’t, GEORGE W. SCHUYLER, Sec’y, L. L. TREMAN. Treasurer, GEORGE McCHAIN. -• « •- DIRECTORS: EZRA CORNELL, Founder of the Cornell University, .Ithaca. GEO. W. SCHUYLER, Late State Treasurer,. “ L. L. TREMAN. Merchant, Firm of Treman Bros. “ GEORGE McCHAIN, Merchant, Firm of Andre us, McChain & Co. “ C. L. G-RANT, President Tompkins County Bank . “ JOHN A. NICHOLLS, Attorney at Law.Spencer, Tioga County. J. F. HIXON, Manufacturer.Ithaca. LEONARD TREMAN, Merchant, Firm of Treman Bros. “ JOSEPH ESTY. A. B. CORNELL, Surveyor of Port of New York. .: . . WM. HALSEY, Grain Dealer & Miller. “ J. H. SELKREG, Ithaca Journal... .... ALEX. KING, Lumber Dealer. “ . .J. E. Pi RADLEY, Engineer. - ^ - PRINCIPAL OFFICES, ITHACA. SEW YORK. AG BA'7 BOTi TUB SALE OB flOAEDS, CHARLES J. PUSEY, 78 & 80 Broadway, New York, I 1-13 S THE & The Ithaca and Athens Railroad Company was organ¬ ized as the Ithaca and Towanda Railroad Company, under ^ the general railroad laws of the State of New York, the name of the Company being subsequently altered to its present title on account of the change of the southern j.y terminus of the road from Towanda to Athens. r The road runs from Ithaca, New York, to a junction with the Lehigh Yalley Railroad, near Athens, Pa., a dis¬ tance of thirty-six miles, affording the shortest means of p communication between the principal anthracite and bitu- ^ minous coal fields of Pennsylvania, and water transporta- ' rt7 tion at Ithaca to all points east and west, and to the great Lakes, via Cayuga Lake and the Erie Canal. Being practically a continuation of several heavy coal carrying roads, whose freight naturally seeks the cheapest jc mode of transportation to the points of delivery, the southern connections of this line cannot fail to contin , uously supply it with a fruitful and constantly increasing source of revenue ; and that this is unquestionably the cheapest route for the distribution of coal to the principal 4 towns on the lakes, in Northern and Central New York, and the West, will be demonstrated by figures presented herewith, gathered from official sources. The connections of the road are, at Athens, with the Lehigh Valley Railroad and its numerous connections to the anthracite coal fields of the Wilkesbarre, Pittston and Shamokin regions; to Easton, Pa., and thence to New York, Philadelphia, and all other important points. With the Sullivan and Erie Railroad at Towanda, to the coal lands of Sullivan county, Pa. With the Barclay Railroad to the Barclay bituminous mines, all of which will prove to be inexhaustible feeders to the traffic of the line. The tonnage of the Lehigh Valley Railroad for Northern Delivery in 1870, was. 276,151 tons* The production of the Barclay Mines in 1870, was. 273,335 The Sullivan and Erie Company will mine this year. 100,000 “ For the products of the-mines of the two latter Com¬ panies, this route is the natural outlet, as well as for those in the Lehigh Valley seeking an outlet to the North and West. At Waverley the road is crossed by the Erie Railway. At Ithaca, water transportation is reached, and thence via Cayuga Lake to the Erie Canal at Montezuma, is a distance of forty-six miles. From this point without trans¬ shipment after leaving Ithaca, coal and other freight can be transported on the largest class of boats to all points 1 5 East and West on the canal and lakes; the canal also serving as a feeder for freight destined south, which of itself will be an important item in the business of the road, affording as this line will, the cheapest route for the transportation of grain, flour, etc., with which commodities the mining districts are mostly supplied from the North¬ west. The connections via the North Pennsylvania Rail¬ road, give a through route to Philadelphia, by which produce from the lakes can be delivered at much cheaper rates than by any other channel of communication. At Ithaca, the road will connect with a road from thence to Geneva, the construction of which is now contemplated, also with the Ithaca and Cortland Railroad now being rapidly completed, and which will probably be in opera¬ tion by May 1st, next. There are also two projected roads terminating at Ithaca, which will furnish additional northerly outlets for the business of the road; one to run along the east shore of Cayuga Lake to the New York Central Railroad and Erie Canal; the other to pass through the centre of Tompkins, Seneca and Wayne Counties to Sodus Bay on Lake Ontario. The only other route from the coal mines to the Erie Canal is via Watkins, at the head of Seneca Lake, from which point to the canal junction at Montezuma, the distance is eighteen miles greater than from Ithaca. Watkins being five miles further from Athens than is Ithaca, gives a total of twenty-three miles in favor of the Ithaca route. The road traverses a rich and productive section of country, most of it in a high state of cultivation, and 6 yielding large crops of grain, etc. At various points in the vicinity of the line are extensive bodies of fine hem¬ lock and hardwood, timber, and numerous saw-mills, which will furnish to the local traffic an important item in the article of lumber. Passing through a natural valley, the entire distance, there is no outlet from the coal regions that will compare with this as to easy grades, and consequent economy in operating. With the exception of about half a mile, where the grade is twenty feet, the maximum grade against trade along the whole line, is but fourteen feet to the mile. Ithaca is a prosperous town at the head of Cayuga Lake, having a population of 10,000 inhabitants. Its manu¬ facturing interests are already of an important character, and possessing a water power, which when fully utilized, will hardly be surpassed by that of any other town in the State, surrounded by a rich agricultural country, and the site of the famous Cornell University the projected rail¬ road facilities will, ere long, elevate Ithaca to the fore¬ most rank of interior towns. Within the corporate limits, in* addition to their tracks and necessary sidings, the Company owns seventy-eight acres of land, having a water frontage of over 3,000 feet on the canal and Cayuga Lake. On this property a tier of water basins 500 feet long and sixty feet wide is being excavated. These will have substantial wharves on which will be erected extensive coal pockets, by means of which the coal will be transferred from cars to boats at slight cost, and be afforded ample storage. 7 • The principal source of revenue will be from the trans¬ portation of coal. Particular attention is therefore called to the following statement of the comparative cost of transportation by this and other routes, showing the dif¬ ference in favor of this line : HARD AND SOFT COAL. 1 . Athens to Syracuse, via Southern Central and New York Cen¬ tral Railroads. $2 26 via Ithaca and Athens Railroad, Lake and Canal. 1 53 Difference in favor of Ithaca route. $0 73 2 . Athens to Albany, via Erie and Albany and Susquehanna Railroads.. $3 64 via Ithaca and Athens Railroad, Lake and Canal. 2 48 Difference in favor of Ithaca route. $1 16 i 3. Athens to Buffalo, via Erie Railroad.. $3 44 via Ithaca and Athens Railroad, Lake and Canal. 2 03 Difference in favor of Ithaca route. $1 41 8 4. Athens to Rochester via Erie Railroad.. $2 ■ '8 via Ithaca and Athens Railroad, Lake and Canal . 178 Difference in favor of Ithaca route. $0 90 HARD COAL. 5. WlLKESBARRE TO OSWEGO, via Scranton, Lanesboro : and Erie, and Syracuse and Binghamton Railroads. $4 24 via Lehigh Valley and Ithaca & Athens Railroads, Lake & Canal 3 80 Difference in favor of Ithaca route. $0 44 6 . WlLKESBARRE TO BUFFALO, via Scranton and Erie Railroad.... $5 72 via Lehigh Valley and Ithaca & Athens Railroads, Lake & Canal 4 05 Difference in favor of Ithaca route. $1 67 7. PlTTSTON TO LTTICA, via Scranton, Binghamton and Syracuse.. $4 08 via Lehigh Valley and Ithaca and Athens Railroads, Lake and Canal. 3 85 Difference in favor of Ithaca route. $0 23 9 SHAMOKIN AND PITTSTON (Hard Coal) Compared. 8. Shamokin to junction of Erie and Seneca Canals at Montezuma, via Northern Central Railroad, Watkins and Seneca Lake.. . $3 90 Pittston to junction of Erie and Seneca Canals at Montezuma, via Lehigh Valley, Ithaca and Athens Railroad and Cayuga Lake 3 00 Difference in favor of Pittston Coal and Ithaca route. $0 90 9. Shamokin to Buffalo, via Northern Central and New York Central Railroads. $6 10 Pittston to Buffalo, via Lehigh Valley and Ithaca and Athens « Railroads, Lake and Canal_ ..... 3 85 Difference in favor of Pittston Coal and Ithaca route. $2 25 SULLIVAN AND SCRANTON (Hard Coal) Compared. 10 . Scranton to Syracuse, via Del., L. & TV estern, and Syracuse and Binghamton Railroads. $2 84 Sullivan to Syracuse, via Lehigh Valley and Ithaca & Athens Railroads, Lake and Canal. 2 35 Difference in favor of Ithaca route and Sullivan Coal. $0 49 10 11 . Scranton to Oswego, via Del., L. & Western, and Syracuse and Binghamton Railroads. $3 56 Sullivan to Oswego, via Lehigh Yalley and Ithaca & Athens Railroads, Lake and Canal. 2 60 Difference in favor of Ithaca route and Sullivan Coal. $0 96 It may be remarked here that the semi-anthracite coal from the Sullivan mines is pronounced equal to the best hard coal for general use, and superior for the grate and the production of steam. The following comparison will show that the Sullivan coal can compete successfully with that from Scranton, not only to the above places, but to points more distant on the Erie Canal: Scranton to Albany, via Del., L. & Western, and Albany and Susquehanna Railroads. $4 06 Sullivan to Albany, via Lehigh Valley, and Ithaca & Athens Railroads, Lake and Canal. 3 30 Difference in favor of Sullivan Coal and Ithaca route. $0 76 SOFT COAL. (Blossburg and Barclay Coal Compared.) 12 . Blossburg to junction of Erie and Seneca Canals at Montezuma, via Northern Central Railroad and Seneca Lake . $2 24 Barclay to Montezuma, via Barclay, Lehigh Valley, Ithaca & Athens Railroads, and Cayuga Lake $1 82 Difference in favor of Barclay Coal and Ithaca route. $0 42 which will hold good to all points on the Erie Canal, East and West. 11 13. Blossburg to Rochester, via Corning and Erie Railroad. $2 70 Barclay to Rochester, via Ithaca, Lake and Canal. ... 2 42 Difference in favor of Barclay Coal and Ithaca route. $0 28 14. Blossburg to Buffalo, via Corning and Erie Railroad. $3 46 Barclay to Buffalo, via Ithaca, Lake and Canal. 2 67 Difference in favor of Barclay Coal and Ithaca route. $0 79 BARCLAY COAL. 15. Barclay to Utica, via Southern Central and New York Cen¬ tral Railroads. $3 96 via Ithaca, Lake and Canal. 2 67 Difference in favor of Ithaca route. $1 29 16. Barclay to Syracuse, y via Southern Central and N£fr York Central Railroads.*. $2 90 via Ithaca, Lake and Canal. 2 17 Difference in favor of Ithaca route . $0 73 Among the items of general freight which may be expected to find their way over this route, the article of grain merits some mention. As before stated, the sections of Pennsylvania reached by the connections of this road, are in a great measure supplied from the North-west. 12 The freight on grain from Buffalo to Waver- ley is 20 cents per 100 lbs., or per ton. . . $4 00 From Buffalo to Ithaca, per canal.$1 33 From Ithaca to Athens via I. & A. B.R. ... 1 60 2 93 Making a difference of. $1 07 ^ per ton in favor of the Ithaca route, besides avoiding the expense and waste attendant on changing from broad to narrow gauge cars. From Union Springs on Cayuga Lake, there are annually shipped south, about ten thousand tons of plaster, most of which now finds a circuitous outlet by Seneca Lake. On the completion of this road a direct route will be afforded, and the largest portion of the plaster will go this way. Large quantities of Syracuse salt, Canada, Lake Superior and Oneida County iron ore are used in the mining districts and the interior of Pennsylvania, the transportation of which will be largely absorbed by this route, and it is believed that the lower rate of freight that it will be enabled to offer will induce a considerable increase in the shipment of these articles. These remarks will also apply to Canada pine lumber and live stock raised in northern New York, from which, and from mis¬ cellaneous and express freight the Company may fairly t calculate to receive a large revenue. From passenger traffic a well-paying income may safely t be relied on. In addition to the by no means inconsider¬ able local and business travel that the superior facilities of the road will command, the natural beauty of the scenery around Ithaca and on Cayuga Lake will doubtless 13 induce very many to select this route to reach the New York Central Road from Pennsylvania and other sections. The entire line is graded, bridges built and ready for the rails, which are purchased, and a large portion now ') delivered to the Company. Favorable contracts have also been made for the locomotives and rolling stock, which will be completed by the time the iron is laid, and it is expected that the line will be in full operation by the first of June next. The road has been constructed with great economy, but very substantially; the iron is of the highest grade of American manufacture, and the equip¬ ment of the first order of workmanship and material. The Board of Directors of the Company is composed of some of the principal business men of Ithaca, whose names are a sufficient guarantee for the faithful and able manage¬ ment of the affairs of the Company, and for the honest execution of their duties; and it may not be out of place to state that not one of these gentlemen has received a salary or other remuneration for his services, their interest in the enterprise and the prosperity of the town of Ithaca, having been sufficient inducement for them to devote such of their time to the carrying out of the project as has been necessary. The fact of the town of Ithaca having subscribed to one-lialf of the capital stock of the Company, is an evidence of the confidence placed by the community in the enterprise and its management. The capital stock of the Company is $600,000, of which $300,000 has been subscribed by the town of Ithaca, and $200,000 by individuals there and along the line. 14 The $500,000 raised from stock subscriptions has been judiciously expended on the right of way, grading, bridging, tieing and fencing of the road, the remaining $100,000 together with the bonds will be used for its completion and equipment. To iron and equip the road, and to pay for property purchased for wharves at Ithaca, and complete the con¬ templated improvements at that point, the Company has issued bonds of $100, $500, and $1,000 each to the amount of $600,000; secured by a first and only mort¬ gage to Hon. Josiah B. Williams, of Ithaca, Trustee, on the whole road and equipment. The bonds run twenty years, and bear interest at the rate of seven per cent, per annum, payable semi-annually on the first days of July and January of each year, principal and interest payable in gold coin in the City of New York. The mortgage provides for a sinking fund to be set apart out of the earnings of the road, for the payment of the bonds at maturity. The following is an estimate of the earnings of the Company for the first year: 200,000 Tons Coal, carried 36 miles at 2c., 72c. per ton. . .$144,000 00 5,000,000 Feet of Lumber, at $2. 10,000 00 3,000,000 Lath. 720 00 Miscellaneous Freight, including Grain going South. 30,000 00 Return Freight, Miscellaneous. 8,000 00 Plaster . 5,000 00 Salt and Lime. 2,000 00 Cattle and Sheep. 3,000 00 Express .. 4,000 00 Passengers and Mails . 18,000 00 $224,720 00 Operating Expenses, 55 per cent.$123,596 00 Interest on Bonds, 7 per cent, on $600,000 42,000 00 Premium on Gold, 10 per cent. 4,200 00 169,796 00 Net earnings over all $54,924 00 From information and assurances received from con¬ necting coal roads, it is believed that the foregoing is a very low estimate of the earnings of the road, and that the actual result of the first year’s operations will be much more favorable than these figures indicate. The bonds of the Company are now offered for sale, and are confidently recommended as one of the safest securities ever placed on the market, being secured by a first and only mortgage on property costing with the most economical outlay, double the amount of the whole issue. The high social and financial standing of the managers of the road, the certainty of an ample revenue from the 16 day of its completion, and a constantly increasing business, preclude the possibility of any failure on the part of the Company to pay the interest on the bonds or their prin¬ cipal at maturity. Any further information desired will be furnished on application to CHARLES J. PUSEY, 78 & SO B'ROAZnV'A.r, JV'BW TORtf, Agent for the Sale of the Bonds.