U. * r STATEMENT OF THE AFFAIRS OF THE jfa ^i[nssJ and Jttiluiaaki RAILROAD COMPANY, SHOWING THE COST OF THE ROAD UP TO JULY 1, 1857, WITH A REPORT OF THE CHIEF ENGINEER, SHOWING THE PROGRESS OF THE WORK, ETC., JULY 2 3, 1 8 5 7. NEW YORK: BAKER & GODWIN, BOOK AND JOB PRINTERS, CORNER NASSAU AND SPRUCE STREETS. 1857. Digitized by the Internet Archive in 2017 with funding from University of Illinois Urbana-Champaign Alternates https://archive.org/details/statementofaffaiOOIacr STATEMENT OF THE COST OF THE SEVERAL DIVISIONS OF THE ffa (fosse aitir |$lrltoiutta gMroalr, UP TO JULY 1st, 1857. EASTEKN DIVISION. CAPITAL STOCK. Full paid Stock, . . $2,281,300 00 Partially paid Stock, . 64,671 74 Total Capital Stock, $2,345,974 74 First Mortgage Bonds, Less amount purchased for Sinking Fund, Less amount converted into Stock, Less amount on hand, BONDED DEBT. $950,000 14,000 6,500 1,000 21,500 Total 1st Mortgage Bonds outstanding, $928,500 00 4 314,000 00 Milwaukee City Bonds, Convertible five-year Bonds 7 per cent., Less amount converted, $300,000 193,000 Total convertible Bonds out- standing Farm Mortgage Bonds, . 1,073,800 Less amounts in hands of 107,000 00 agents and unexpended, 142,700 931,100 00 Total Bonded Debt. $2,280,600 00 These farm mortgages were given in payment of stock, and though nominally a debt of the com- pany are really payable b}^ the individual mortgagors, who are stockholders to the same amount; and this item would be more properly included as stock not transferable, than as indebted- ness. This amount deducted from the above, would leave the bonded debt of the Eastern Division, $1,206,800 instead of as above. Incumbrances assumed on Beal Estate, purchased for Depot grounds in Milwaukee, 14,108 33 Bonds and Mortgages given for Beal Estate, purchased for Depot Grounds in Milwaukee, . . . 6,000 00 FLOATING DEBT. Bills payable Sundry Accounts, $120,439 65 104,560 39 $225,000 04 5 Deduct Bills BecVble, $8,563 25 <£ Sundry Accts., 34,714 06 “ Cash in hand of Treas., 38,499 83 “ Milwaukee and Superior B. B. Stock, 20,000 00 $101,777 14 Balance of Floating Debt, . . . $123,222 90 Income prior to July 1st, 1856, . . 212,713 50 General Account charged to Eastern Division, 4,982,619 47 From which deduct credits as follows : Balance due from Watertown Division, . . $416,844 21 Balance due from Portage Di- vision, . . 51,900 95 Balance due from Western Di- vision, . . . 38,149 35 Balance due from Northwestern Division, . . 279,268 77 And the following sums, being payments made on general ac- count and charged to the Eas- tern Division, for Engineering, Bight of Way, Interest, Agen- cies, Incidental Expenses, and construction, which are charge- able to the other Divisions, viz. : To the Western Division, 218,873 72 “ Northwestern Division, 512,890 16 “ Watertown “ 537,688 12 “ Portage “ 96,329 58 Total charged to other Divisions, $2,151,944 86 Which sums deducted from the foregoing general 6 account of the Eastern Division, will reduce the true cost of the Eastern Division, including its proper pro- portion of Interest, Discount, Commissions and Finan- cial Agencies, to the sum of 2,880,674 61 Length of main line in operation, 95 miles. “ side track “ 7f “ Total 102f “ WESTERN AND NORTHWESTERN DIVISIONS. CAPITAL STOCK. Full paid Stock in Western Division, $2,200 00 “ “ N. Western “ 9,900 00 Privilege “ 77,310 00 Total Capital Stock, $89,410,00 BONDED DEBT. First Mortgage Land Grant Bonds, total issue, $2,500,000 00 Less Amt. on hand Mil’kee Office, 102,000 00 “ “ “ New York, “ 576,000 00 Total on hand, . . . 678,000 00 Total amt. disposed of . . $1,822,000 00 Construction, 5 years, 7 per cent. Bonds, whole issue, . $1,000,000 00 Less amt. on hand and unex- pended, . . . 240,000 00 Total amt. construction Bonds expended, $760,000 00 Total Bonded Debt, . . $2,582,000 00 In addition to the foregoing bonded debt, there was issued in settlement with the St. Croix and Lake Superior R. R. Co., in pursuance of the requirements 7 of the act making the grant of land to this company, one million of dollars in its unsecured bonds, payable in ten (10) years from the 1st day of April, 1857, with 7 per cent, per annum interest ; which, how- ever, is not included in the indebtedness of the company, for the reason that the St. Croix and Lake Superior R. R. Company under its new organiza- tion, became responsible for the same amount by an issue to this company of its first mortgage bonds, pay- able at the same period with interest at the same rate per centum, whereby this company is guaranteed against loss, and the means provided for the ultimate liquidation of the entire issue. FLOATING DEBT. Bills payable, . . $33,000 00 Amts, due on sundry accts. . 12,048 00 Total Floating Debt, . . . $45,048 00 Amt. due Eastern Division from FT. Western Division, . . $279,268 77 Western Division, . 38,149 35 And for Engineering, Right of Way, &c., as stated above, — For Western Division, . . 218,873 72 N. Western do., . 512,890 16 Total due Eastern Division, . $1,049,182 00 Total expended on Northwestern and Western Division, . . $3,765,640 00 From which deduct credits as follows : — Balance due for Portage Division, 1,753 05 “ “ Waterton, “ 157,140 33 “ “ St. Croix and Lake Sup. R. R. 5,160 00 Due other Divisions $164,053 38 8 Cash on deposit with Wis. Marine and Fire Ins. Co. . . 27,409 95 “ u “ Atwood & Co., (N. W. Diy.), 29,901 63 (Westr.) 162,135 90 Cash on hand, . . 219,447 48 383,500 86 Total net expenditure on Western and Northwestern Division, . . $3,382,139 14 POETAGE DIVISION. Amount due Eastern Division, . . . $51,900 95 “ “ “ for Engineering Eight of way, &c., . . 96,329 58 “ “ Western, “ 1,753 05 Sundry Accts. ..... 100 00 $150,083 58 WATEETOWN DIVISION. Capital Stock, .... $216,960 04 BONDED DEBT. First Mortgage Bond, . . 310,000 Milwaukee City Bonds (secured by 2d Mortgage), . . . 200,000 Third Mortgage Bonds, . 150,000 Less amt. reduced by sinking fund and canceled, . 32,000 118,000 Watertown City Bonds, . 80,000 Less Ain’t, retired, . . 5,100 74,900 Consolidation Bonds issued for stock of Mil. and W atert’n E. E. Co. 8 retired, 145,100 Total Bonded debt, $848,000,00 La Crosse and Milwaukee railroad company. Statement of the affairs of tip La Crosse and Milwaukee railway comp- any, showing the cost of the road up to July 1, 1857, with a report of the chief engineer, showing the progress of the work, etc. New York, Baker & Godwin, 1857. 9 There is a contingent liability of $31,000 for town bonds, received from Town of Columbus and other towns, given to the company in consideration of stock issued to the towns (embraced in foregoing amount $216,960 04), which bonds the towns are liable to pay although guaranteed by the company. FLOATING DEBT. Bills Payable, . $73,698 78 Open Acc’t. with Bishop, Stewart & Co. (cont.) 31,047 13 Amt. due on sundry acc’ts. 8,022 01 112,767 92 Less 1st Mtge. Bonds with Bishop, Stewart & Co., 58,000 00 “ Sundry open acc’ts. 5,107 30 “ Cash in hands of Treasurer, . 4,591 65 “ Atwood & Co., 4,180 80 71,879 75 Total Floating Debt, . . $40,888 17 Amount due Eastern Division, . . 416,814 21 “ “ “ “ For right of way, Engineering, &c. 537,688 12 u « Western, . . . 157,140 33 Total expended on Watertown Division, $2,217,520 87 J. HADLEY, Secretary. It is to be borne in mind that all sums included in this statement are the actual amounts expended in the securities of the company, at their par value ; and that to ascertain the actual cash cost of any portion or division of the road, a deduction of about twenty-five per cent, must be made, for discounts in the negotiation of those securities. 10 RECAPITULATION. EASTERN DIVISION AND OLD GENERAL ACCOUNT. Capital stock, .... $2,345,974 74 Mortgage Stock, . . . 1,073,800 00 Other Bonds, .... 1,206,800 00 Due on Real Estate, . . 20,108 33 Floating Debt, . . . 123,222 90 Income prior to July 1, 1856, 212,713 50 $4,982,619 47 Less ain’t transferred to other divisions, .... 2,151,944 86 Cost of Eastern Division, . . $2,830,674 61 NORTHWESTERN AND WESTERN DIVISION. Capital stock, .... Bonded debt for road, . Do. on account of land grant, . Floating debt, Due Eastern Division and Gene- ral Account, $89,410 00 1,822,000 00 760,000 00 . 45,048 00 1,049,182 00 $3,765,640 00 Less am’t due from other divisions, $164,153 38 Less cash on hand, 219,500 86 383,500 86 Total expended on N. W. and W. Div., 3,382,139 14 PORTAGE DIVISION. Due other divisions, . . $149,983 58 Floating debt, .... 100 00 Total expended on Portage Division, . 150,083 58 11 WATERTOWN DIVISION. Capital stock, .... $216,960 04 Bonded debt, .... 848,000 00 Floating debt, .... 40,888 17 Due other divisions, . . 1,111,672 66 Total expended on Watertown Division, 2,217,520 87 Total on all divisions, . . $8,580,418 20 Cash on hand, .... 224,607 48 $8,805,025 68 SECOND RECAPITULATION. General stock, . . . $2,345,974 74 Division stock, . . . 306,370 04 $2,652,344 78 BONDED DEBT. Eastern Division, . . . $2,280,600 00 N. W. and W. Division, . 1,822,000 00 Do. on account of land grant, . 7 60,000 00 Watertown Division, . . 848,000 00 $5,710,600 00 FLOATING DEBT. Eastern Division, . . . $123,222 90 N. W. and W. Division, . . 45,048 00 Portage Division, . . . 100 00 Watertown Division, . . . 40,888 17 $209,259 07 20,108 33 212,713 50 Due on real estate, Income prior to July 1, 1856, $8,805,025 68 12 OPERATIONS OF THE ROAD. Month, 1857. Receipts from Passengers. Receipts from Freight. Receipts from all other sources. Total Receipts. January, . . February, . . March, . . . April, . . . May, . . . June, .... $8,214 69 9,098 42 14,922 61 18,188 36 18,895 09 21,480 73 $12,662 54 19,011 99 32,609 46 26,366 27 43,763 57 37,250 40 $280 39 951 07 301 25 479 77 563 11 1,801 00 $21,157 62 29,061 48 47,833 32 45,029 40 63,221 77 60,532 13 Total, . . $90,794 90 $171,664 23 $4,376 59 $266,835 72 CHIEF ENGINEER’S REPORT. Engineer’s Office, La Crosse and Milwaukee Railroad. Milwaukee, July 18th, 1857. Hon. Byron Kilbourn, Prest. La C. and M. R. R. Co. Sir, — The following statement in relation to the condition and progress of the construction of your road, is respectfully submitted : — Extent of main line in operation on the Eastern Division ninety-five (95) miles. The amount of side track now com- plete on the Eastern Division, is seven and three fourths (7f) miles. Extent of main line completed on the Northwestern Division five (5) miles. The work now done in grading, bridging, &c. on the Northwestern Division between Portage City and the point of junction with the Western Division, a distance of sixty-one (61) miles, amounts to $522,000. Estimated cost of completing the grading, masonry, and bridging, and laying tracks on the sixty-one miles of the Northwestern Division, is $225,000. The work now done on the Western Division amounts to $12,000. Estimated cost of completing the grading, masonry, bridging, and laying track on same, is $610,000. Amount of work done on the Portage Division $25,000. The track is being laid westward from Portage City as rapidly as possible ; and no doubt need be entertained, but that sixty- 13 one miles of the Northwestern Division or land-grant road can be completed and placed in operation by the beginning of winter. This will leave a distance of one hundred and fifty-six miles between the termination of the track and the city of St. Paul, by way of the traveled road, and will open up by far the most favorable and expeditious route for travel between that city and the East that can be had during the coming winter. Early this spring several parties of engineers w T ere placed in the field for the purpose of making the necessary surveys and examinations preparatory to the final location of the westerly part of the Northwestern Division. These sur- veys will shortly be completed. The fact has already been developed that a very direct and favorable line can be had with easy grades, and of cheap construction. The lands along the vicinity of the line, are for the greater part of the distance of a superior quality. On either side of Black River, for some ten or twelve miles from the stream, the soil is sandy ; and the value of the land is principally owing to the pine timber, which exists in such quantities as to render its value equal to that of any portion of the State. West of the prairie and Black River, and from thence to Chippewa River, the lines pass over a series of prairies and oak openings, the fertility of which is clearly shown by the exceeding productiveness of the few farms opened up and improved, in this as yet very thinly settled region of the State. West of the Chippewa River, and thence to the St. Croix, the soil is excellent without exception. For a distance of thirty miles nearest the Chippewa, it is clothed with a very heavy growth of hard wood interspersed with pine of a superior quality. The remaining distance to St. Croix Lake is through prairies and openings. Timber sufficient for farming purposes is met with throughout the entire line ; and nothing is required but railroad facilities, and the settlement and improvement which will certainly follow such facilities, to render the country traversed by the line the most flourish- ing portion of the Northwest. Very respectfully yours, E. W. WOODWARD, Chief Engineer . 14 CONCLUSIONS. From the foregoing statement of the Secretary, and report of the Chief Engineer, the following conclusions are arrived at : — There has been expended on the Northwestern and Western divisions, the sum of $3,382,139 14, which includes the cost of the iron rails for that part of the northwestern division, or land-grant road, between Portage City and the divergence of those lines, a dis- tance of sixty-one miles ; and for the western division from that point to La Crosse, a distance of forty-five miles ; so that the iron is on hand sufficient to complete the road to the Mississippi. It also includes $760,000 of bonds issued, and all expenses incident to procuring the land-grant ; also the work done on the line in grading, bridging, &c., which it appears is over two- thirds done between Portage City and said point of divergence, requiring only $225,000 for its completion to that point ; which being completed, will put in operation sixty-one miles of the land-grant road, and secure to the company the title to three hundred and seven thousand two hundred acres of land, which, at the price heretofore estimated as the value of said land (about $14 per acre), gives $4,300,800, as the value of the lands to be received by a further outlay of only two hundred and twenty-five thousand dollars. It also includes the work done in grading, bridging, &c., on the western division from the point of divergence to La Crosse, which requires $610,000 for its completion. The whole amount, therefore, required to complete the road from Portage City to La Crosse, is $835,000, which, being done, gives the company a productive through line to the Mississippi, of which sixty-one miles will be on the line of the land-grant road ; which will 15 secure to the company an amount of land which, at the lowest valuation, will be worth over four millions of dollars, and which, at the prices that will in fact be obtained on the sale of said land after the completion of the road, give an aggregate of over five millions of dollars. From a more perfect knowledge of the coun- try by surveys and exploration, we are fully confirmed in the opinions heretofore formed as to the value of the lands, and believe our former estimates to be not only safe, but much below what will be the actual result. Thus, by an expenditure of a little over eight hundred thousand dollars in addition to the sum already ex- pended, the company will accomplish two most import- ant results : 1st. A through line that will render productive the expenditures already made ; and, 2d. Secure to the stockholders a large tract of land, the value of which will be equal to more than one-half the entire cost of the road from Milwaukee to La Crosse, leaving the remainder of the grant of near 700,000 acres to complete the road to the St. Croix. It will be seen from the foregoing statement of the Secretary, that there are still on hand 678 of the land- grant bonds. Some of these will be paid for by sub- scribers, and the remainder, with the other resources of the company, will furnish us with a fund which will be amply sufficient to raise the amount we now need. It being necessary to call upon stockholders for their aid, a plan is being matured which we think will be satisfactory to them, and at the same time subserve the interests of the company, which will be submitted for their consideration without delay. Any modifica- tion of the plan proposed may at any time be made at the suggestion of stockholders. All expenses incurred in procuring the land-grant, it should be borne in mind, is not properly a charge 16 against the road, although necessarily included in the accounts ; but is to be considered an expenditure pecu- liarly for the land itself, as an extra item, foreign to the regular expenditure incident to the construction of the road. It would, therefore, be improper to include it in a statement of the cost of the road itself. It is reported that statements have been made to the effect “ that the land grant is dependent on the entire completion of the various roads named in the act of the legislature.” So far from this being the case, the act expressly provides that the company shall receive the title to 240 sections, or 153,600 acres upon the completion of the first twenty miles ; and that thereafter it shall receive the title to 120 sections or 76,800 acres, in advance of the construction of each subsequent twenty miles of road. The section of the act on this subject provides as follows : “ The title to said lands shall vest in the said La Crosse and Mil- waukee Railroad Company in the manner following, that is to say, whenever twenty continuous miles of said road shall have been completed so as to admit of running regular trains on the same, the Governor of this State shall certify to the Secretary of the Interior the fact that such twenty continuous miles are com- pleted as aforesaid, then the title to two hundred and forty sections of said lands shall vest in the La Crosse and Milwaukee Railroad Company ; and when a sec- ond continuous twenty miles of said road shall have been completed so as to admit of running regular trains on the same, the Governor shall certify as be- fore, and thereupon a further quantity of one hundred and twenty sections of said land shall vest in said company ; and so from time to time, until said roads are completed.” A panic prevailed in the month of June and early IT part of July, in regard to all railroad securities, which in extent and intensity has been seldom equaled ; and just at the time when the nerves of capitalists were at their greatest tension, and the slightest report would produce the greatest sensation, numerous false reports were circulated in Wall street and elsewhere in regard to the management and condition of the affairs of this company, which, so far as they have come to our knowl- edge, are sheer fabrications or gross exaggerations, as ean be made satisfactorily to appear to all parties inter- ested who will take the trouble to make the inquiry. But to undertake to trace and refute them separately, would occupy too much space for a paper of this kind, and prove uninteresting to the majority of readers. These reports, being untrue, will die out of themselves after an ephemeral existence, without the trouble of a formal refutation. Much has been said in relation to the large expen- ditures made, and losses sustained by the company in consequence of procuring the grant of land ; and it has been asserted that the whole might have been pur- chased at a less cost by entering them at the land-office by means of land- warrants, &c. Without going into any lengthy explanations on this subject, it may be proper briefly to remark that all which has been said in relation to it is erroneous. The lands could not have been entered by means of land-warrants at all , nor for cash, at any price; for the reason that they had been given to the State. Con- gress appropriated these lands to the State, without any agency of the La Crosse Co. The simple fact ex- isted and could not be changed . The State was about to confer it upon some company or association ; and had not the La Crosse Co. applied for it, some other would have received it, and by so doing would have 2 18 been in a position to monopolize the line of the La Crosse road, and thus have crushed out the La Crosse Company. Strong parties were applying for it, and to have yielded it to them would have been the total ruin of the La Crosse Company, and a sacrifice of all the cap. ital invested in it. It would have ruined many of the stockholders, whose farms and homesteads were in- volved in it, and to a greater or less extent would have been injurious to every stockholder. It was, in fact, a question of necessity, involving the very existence of the company ; and it was compelled to secure this grant, or in other words prevent any other company from hav- ing it, or go into bankruptcy. This \yas all the ques- tion which the company had to consider ; and if sacri- fices were necessary to prevent so serious a result, it was better to meet them than be sacrificed wholly and entirely. But it is a mistake to suppose that, under any cir- cumstances, the land could have been purchased at a cost less than that expended by the company in its acquisition. Land-warrants will cost more than a dol- lar an acre ; while all the expenses incurred by the com- pany, of every name and kind, on this account, will fall considerable below a dollar an acre. No unnecessary expense, however, was incurred : in every stage of the proceeding, the interests of the company were faith- fully guarded; and every representation to the con- trary is destitute of truth. It may not be improper in this connection to state further, that in addition to the public grant made by the State to the company, arrangements have been made which secure to the company the most valuable acquisitions at the St. Croix terminus, worth from one and a half to two millions dollars, even before the road shall be finished to that point, which will more than 19 doubly pay all the expenses incurred in procuring the grant. These concessions could have been as easily secured to the directors individually as to the company in its corporate capacity, had they been so disposed. If, therefore, the directors have been called upon to make large expenditures in procuring the grant, they ought to be awarded corresponding credit for provid- ing the means of paying all such expenditures, without cost to the company. Much has also been said about the company having expended large sums to secure an interest in the Min- nesota land-grant ; all of which is imaginary and with- out any foundation. The LaCrosse Company has never had nor desired to have any interest in those grants, except to secure favorable connections with those roads, which object has been fully attained without the expenditure of a dollar of company funds ; and yet those connections will be worth millions. Such erro- neous statements only exhibit the prolific fruit of a lively imagination in those who seek for occasion to find fault, and who prefer to see only the dark side of the picture. The income of the first division of the road has exceeded the sanguine hopes of its friends, and the receipts of the ensuing six months will confirm all that has been written in this behalf, though only 95 miles of the road are in operation, and the business is at present strictly of a local character. On the accompanying map, the lines of the La Crosse road are colored in red, while all branch or tributary roads of other companies are colored in blue. A mere glance at the map, exhibits our commanding position, and carries conviction to the mind without argument, that it is the only great artery along which '20 must flow the business of the largest scope of the finest country which can be found tributary to any one road in the United States. The business of the Upper Mississippi surprises every one who visits that country. There are now some forty steamboats plying on the river above Galena, and all doing a full and profitable business. The travel alone to and from that country, which would pass over the La Crosse road at this time, if completed to La Crosse and St. Croix, would make it one of the best paying roads in the country. The emigration is immense, and flow- ing in an increasing tide every year. The business travel and intercourse are incredibly large, and increasing in a rapid ratio. The importation of merchandise and the general traffic, are keeping pace with the settlement of the country, and are already very large, but increasing at a pace requiring largely increased facilities. All these, to a very great extent, will pursue the track of the La Crosse Railroad, and place it in the foreground of dividend-paying railroads, from the moment it shall be opened to the bank of the Mississippi at La Crosse and St. Croix. By the time our road reaches these points, a road will have been commenced on the west bank of the Mississippi, taking its course to the south bend of the St. Peter’s River, and thence up its valley and across the vast expanse of plain, some five hundred miles, touching the upper section of the Missouri; making tributary to our road the southern part of Minnesota ; while from our northern terminus at St. Croix, as be- fore mentioned, a road to St. Paul will be in the full tide of successful operation; and thence extending through the central part of Minnesota, on the great route towards the Pacific, with another line diverging 21 to the flourishing settlements on Red River to the far Northwest, railroad facilities will be in rapid progress, bringing to our road the rich tribute of the central tract of that territory ; while yet again, extending to the north, we shall find in a state of forwardness, if not completed, the St. Croix and Lake Superior road, bring- ing to us the valuable trade and travel of Northern Wisconsin and Minnesota. Our position and facilities will be such, as almost with certainty to give us the greater part of the trade of the Upper Mississippi, em- bracing the whole of Minnesota, which with one half of the State of Wisconsin, will embrace an area equal to three of the largest States of the Union, and an amount of business beyond computation. If any stock- holder in our road desires to know its value, he ought to visit in person that country, and see with his own eyes the sources from whence it will draw its support ; whereby he would be convinced by stronger and more abundant evidence than the descriptions of any third party could impress on him, however eloquent and glowing they might be. It had been our intention in the ordinary course of our operations to have made a full statement in Sep- tember next of the affairs of the company, past and present, and of its prospects in future, based upon the surveys of the line and selections of land actually made under the act of Congress. But the urgency of many to be informed of the state of affairs, has induced us to submit the foregoing, at an inconvenient season and before the data can be had for that portion of the statement which would be most highly interesting to all concerned. Hoping that the doubts which have been engendered by misrepresentation will soon lose their force, and that reason will resume its sway, 2 * 22 in regard to tlie merits of onr enterprise, we will look forward to that support from the stockholders in aid of the work to which its merits justly entitle it, and in due season, and as soon as practicable, furnish such further and additional information as may be necessary to a full appreciation of the value of the great work which we have in hand. Until then, we beg the indulgence of the stockholders, and request that they will not be- lieve every idle tale, to the damage of the officers of the company, nor condemn them without a hearing. I have the honor to be, very truly, Your obedient servant, BYRON KILBOURN, President * July 23d, 1857. New York, July 30, 1857- Hon. Byron Kilbotjrn, Prest. La C. and M. R. R. Go. Sir, — The examination which onr limited time at Mil- waukee allowed ns to make was not such as would enable us to verify in detail all the statements contained in the secre- tary’s report ; but so far as the examination extended, the result of it corresponds with the secretary’s statement. We did not investigate your affairs as a committee of the stockholders in general, nor with the intention of making a public report ; but merely to satisfy ourselves, and those whose interests we represented, as to the condition of the finances of the company and the value of its property. We were of course unable to examine all the vouchers and accounts of the company, but our examination led us to- believe that they contained nothing to justify the charges of misconduct that had been made against the officers of the 23 company. As far as we could judge, the present directors seemed to have managed its affairs with the view of pro- moting the interests of the stockholders. Of the value of the route of the road, the importance of its tributaries and the fertility of the adjoining country, we can speak in the strongest terms ; and when we consider these in connection with the fact that the road can be operated at a small cost, we cannot doubt but that its net receipts will equal the sanguine expectations of its friends. Hoping that you will succeed in pushing forward the road to an early completion, we are Yery respectfully yours,. JACOB B. JEWETT, D. H. MEEKS. EXTRACTS FROM THE REPORT OF THE COMMISSIONER OF THE LAND DEPARTMENT. The following description of the lands in the valley of the Chippewa Bivers is from the pen of an intelligent and observant traveler, who has recently made a personal exam- ination of that country : 44 The soil, for the most part, is a deep rich, sand loam, and the face of the country very much as we have pictured the Hunting Parks of Old England. About every three miles, there is a succession of small streams, starting from the ridges half a dozen miles back, and making straightway to the Chippewa. The ground between is nearly level, and interpersed with 4 gems of prairie,’ 4 oak openings ’ and timber, with here and there specks of hay-marsh, just enough to meet the wants of new settlers. In short, the country is about as near right as any jolly husbandman could ask from the hands of nature.” There is no fact, which gives more value to these lands, than the general healthfulness of that portion of the country in which they are situated. Well watered, possessing a pure and dry atmosphere, with no local causes to induce fevers or ague, or sickness, in any of the numerous forms often exhibited in the more southerly parts of the Mississippi valley. 24 it is undoubtedly as healthy a region as can be found on the Continent. It may be supposed, by some, that these lands are too far north to be well adapted to agricultural pursuits. This supposition is entirely erroneous. Hone of the lands are further north than the northern parts of the States of Ver- mont and Hew York, nor as far as a large part of Maine, Hew Hampshire, and nearly the whole of Canada, while the more southerly portions of them are in the latitude of the southern part of Vermont and central Hew York. But it is well known that latitude is not alone the index of climate. London is in latitude 51° 30', the same as the latitude of the upper or southern end of Hudson’s Bay, and of Queen Char- lotte’s Sound on the Pacific. Paris is in latitude of the north shore of Lake Superior and of the Pembina settlement. Florence, where it is almost perpetual summer, is in the lati- tude of Sheboygan and of Portland, Maine, while Berlin is further north than a large portion of the coast of Labrador. But, on the American Continent, it is well known that the climate on the Pacific coast is several degrees milder than on the Atlantic. The same causes operate to produce the same result as we recede from the Atlantic and approach the Pacific. The isothermal line is continually bearing north of latitudinal lines ; and it is well known that the climate of St. Paul, in Minnesota, in about latitude 45°, is as mild during the winter months as that of Massachusetts and central Hew York. St. Paul and Buffalo, Hudson and Albany, Chippewa Falls and Rochester, are isocheimal. All the arable lands in the area above described, which will be intersected by your railroad, are peculiarly adapted to the growth of wheat, oats, barley, buck-wheat, potatoes and all other esculent roots ; and Indian corn, especially the yellow-flint variety, is produced in great perfection. While in the more southern parts of the State, the only variety of wheat produced to any extent is spring wheat, in that part I have been describing, winter wheat is always a safe and abundant crop ; and it is beyond all doubt better adapted to the raising of winter wheat than any other portion of the State. The whole country is excellently adapted to grazing. It is well watered by numerous springs and small creeks, of 25 pure, limpid water ; and small, transparent lakes with pic- turesque shores are found in many places, which, as well as the creeks, abound with fish. The raising of cattle and sheep in this region will prove to the farmer a profitable business • and if viewed solely with reference to its advantages for agricultural pursuits, there can be no reason why, when it shall be supplied with railroad facilities, it will not become as densely peopled as any part of the State. In addition to its value as an agricultural country, the tract of which we are speaking possesses a peculiar value as a lumbering country, for the manufacture of pine lumber. It is traversed by three large rivers, which flow into .the Missis- sippi : the Wisconsin, the Black, and the Chippewa, while it is bounded on the northwest by the St. Croix. Upon all these rivers, as well as upon their tributaries, are numerous lumbering establishments, the annual product of all which exceeds three hundred million feet ; while, in addition, saw logs are rafted and run from these rivers to the cities and villages on the Mississippi river, to be there manufactured into lumber, amounting to about half the same quantity. The value of the lumber products of the forest, in that portion of the country drained by these four large rivers, though lumbering is yet in its infancy, already amounts to a sum varying from five to eight million dollars. The value of lumber is gradually increasing, and must continue to increase, as the demand in the Mississippi Yalley is, and ever will be, greater than the supply. The latter is limited, the former can have no assignable limit. The whole region of country between the Wisconsin and the St. Croix rivers is interspersed with thick groves of large white pines, which are not excelled in quality by the pine of Maine, New Brunswick, the Alleg- hany or Susquehanna rivers, or any other part of the world. While some of this pine timber is found in low or swamp lands, the largest portion is upon dry land, which, when the timber is removed, is well adapted to cultivation. Uo accur- ate estimate can be made of the quantity of these pine lands, until the line is located and the land selected ; but it is believed to be entirely within bounds to estimate that one tenth part of the entire quantity, or about one hundred 26 thousand acres of the lands of the company, will be pine timbered lands. Lumbering and agriculture are distinct and very dissimilar branches of business, so that one class of men engage in one pursuit, and another class in another. One class value the land chiefly' for its pine timber ; the other for its agricultural resources, and considers that clearing of its timber adds to its value. Hence, extensive proprietors of pine lands have actually adopted the policy of selling to lum- bermen the right of cutting the timber, receiving a certain stipulated price for what is called the “ stumpage,” and after- wards selling the soil to the farmer. It would undoubtedly be the wisest course to adopt that policy with reference to the pine lands of your company. The “ stumpage ” upon the Penobscot, the Kennebec, and the Androscoggin, in Maine, the St. John’s, in Hew Brunswick, and upon the Alleghany and the Susquehanna, is from $5 to $8 per thousand feet. The price is regulated, of course, very much by the price of lumber and the supply of timber. Stumpage is higher now on those rivers than it was several years ago, when timber was more abundant ; and it will be dearer in Wisconsin a few years hence that it is now. Upon the pine lands of yo.ur company it would be worth now from $2 to $5 per thousand feet, depending very much on the distance it required to be hauled. It is safe to estimate the stumpage upon all the pine lands of your company at the average price of $2 per thousand. Ordinary pine trees will average at least one thousand feet each ; and it ought hardly to be called pine-timbered land that will not average twenty-five trees to an acre ; so that, upon this calculation, the stumpage of the pine-timbered lands would be $50 per acre, which, as extravagant as it may appear, I believe to be quite within bounds. In submitting an estimate, however, of the amount to be realized from “ stumpage,” I put it at one hundred thousand acres at $30 per acre. All the rivers and smaller streams which water the country through which your railroad will pass, furnish nu- merous water powers and facilities for manufacturing es- tablishments. Upon these will be erected saw mills and grist mills to supply the first demands of the inhabitants, and to 27 enable them to prosecute, with profit, their agricultural and lumbering pursuits, and, afterwards, manufacturing establish- ments of other kinds, adapted to the wants and interests of the country. Many of them will be the nuclei of villages, some of which may be expected to become important towns and interior cities ; and at every station along the line of the railroad, villages or towns of greater or less importance may be expected to grow up, a large portion of which will be laid out on the lands of the company. These stations, or villages, will be, on an average, probably about eight miles apart, giv- ing upon two hundred and sixty-eight miles of road thirty- three stations, villages, or towns ; of these, about two thirds, or say twenty, it may be assumed, would be on the land of the company; and if one section of six hundred and forty acres, for each of these twenty villages, be supposed to be rendered especially valuable in consequence, it would give 13,800 acres of land of this description. It is also known that extensive deposits of iron ore exist in various localities be- tween Portage City and the St. Croix River, none of which, however, have been extensively worked ; and no doubt exists that quite a number of tracts of the land of the company will prove to be especially valuable in consequence of the deposits of iron ore to be found upon them ; and it is thought to be entirely safe to estimate that ten thousand acres of the lands of the Company will realize $100 per acre, owing to their value as village sites, valuable w r ater powers, mines, &c. In forming an opinion of the value of the lands of the Company, they should be viewed with all the advantages they will possess after the road is constructed. All suitable for cultivation, none more than fifteen miles, and a large pro- portion within six miles of the railroad, possessing every de- sirable facility for fencing, fuel, water, and for cliea}) building materials, with all the adjacent lands purchased, owned, and occupied by an enterprising and industrious population, there can be no reason why these lands should not command as high prices as lands in the more southern part of the State, of no greater intrinsic value, nor possessing greater railroad facilities. Such lands are now worth, and are selling at, prices varying from $20 to $40 per acre ; and it surely can- 28 not admit of doubt, that these lands will readily sell, after the road is completed, at from $10 to $20 per acre, when offered on a long credit and at a low rate of interest. For the purpose of showing, beyond all doubt, that these lands will furnish undoubted security for $10,000,000, the following estimate is submitted ; which is believed to be considerably below what will ultimately be realized from the lands : 10,000 acres embracing village sites, valuable water powers, mines, &c., at $100 per acre, $1,000,000 200.000 “ first-class farming lands, near the line, with smaller water powers and other privileges, at $20 per acre, - 4,000,000 350.000 “ farming lands, &c., further from the road, at $15 per acre, - 5,250,000 350,000 “ farming lands, at still greater distance from road, at $10 per acre, - 3,500,000 119,120 “ inferior lands, at $5 per acre, - - 595,600 1,029,120 “ $14,345,600 Add, for “stumpage ” on 100,000 acres, at $30 per acre, 3,000,000 Total proceeds of lands, $17,345,600 So that, if bonds were issued for the amount of $10,000,000, a sinking fund, consisting of the proceeds of the land alone, would be amply sufficient to retire the bonds before their maturity, even if they were bought in at a premium of ten per cent.