above stated, included grading, bridging, superstructure, fencing, right of way, depot grounds, buildings, engineering, agencies and interest, after deducting net earnings of the year. The net earnings were $46,100, and the interest paid, $46,500.

By act of April 9, 1852, the Madison and Prairie du Chien Company was incorporated, and by act of June 25, 1853, the Madison and Prairie du Chien Company and the Milwaukee and Mississippi Company were authorized to consolidate in accordance with terms agreed upon, June 25, 1853. The road was opened to Stoughton, May 24.

During the year 1853 and 1854, the road was completed to Madison. Total miles in operation, December 31, 1854, 105. The gross receipts for 1853 were, $226,918.48—the net receipts, $134.340.14. The gross receipts for 1854 were, $456,864.78—the net receipts, $307,632.41. After paying all interest upon the debt, the balance of net receipts was declared equal to 22 per cent. upon $754,665.32—the whole of the outstanding stock, except that held by the city of Milwaukee as security for bonds, on which the road paid the interest. This balance of net earnings was used for cancelling debts of the company, and a dividend of 15 per cent. paid to stockholders in stock, amounting to $113,199.70. The remainder of net earnings was reserved for repairs and debt. The annual deterioration of road, from use and decay, was estimated from 2 to 4 per cent. Total funded debt, December 31, 1854, $1,750,000, of which $302,500-more than all the floating debt-remained in the hands of the company. Total paid stock, same date, $988,655.32; total floating debt, $233,002.80; total expenditure, $2,729,082.11. Expenditure west of Madison $100,000. Total expenditure on 105 miles of road in operation, for all purposes whatsoever, from the organization of company, $2,679,082.11—about $25,500 per mile. "This cost includes very valuable and extensive depot grounds, equal in value to $500,000." The engineer reported, "a superior road bed and superstructure cannot be found on any road in this country.” The company awarded from six to thirty acres of land to each of the stations at Janesville, 16; at Milton, 10; at Fulton, 25; at Stoughton, 25; at Madison, 30; at Whitewater, about 10; at Milwaukee, about 20, in the heart of the business portion of the city, including 320 feet on Milwaukee river and 2,000 feet on the Menomonee river. At the end of the year 1854, the company had purchased and contracted for the right of way and depot grounds for the entire distance from Madison to Prairie du Chien, and Engineer Edgerton estimated the cost of completing the road from Madison to the Wisconsin river at $13,090 per mile.

In April, 1855, the company contracted for the completion of the road from Madison to Prairie du Chien. The contract provided for a first class road, equal to that portion between Eagle and Madison, including right of way, fencing, crossings, cattle-guards, etc., and the expenditure of $100,000 for buildings. The length of road was stated at about 100 miles, and the contractors were paid $2,014,500-$1,230,000 in bonds of the company, $250,000 in mortgages taken in payment of stock, $100,000 in cash, and $434,500 in stock, all at par. Iron 58 pounds to yard. The western terminus of the road

continued through 1855 at Madison. Total paid stock, December 31, 1855, $1,826,438.81; total funded debt, $2,400,000. Total expenditures, to same date, for all purposes whatever, including Janesville branch, $3,578,757.80, of which $635,242.80 had been expended west of Madison, and $20,379.12 for right of way from Janesville to Monroe, and depot grounds at those places. The estimated cost of completing the main line from Madison to Prairie du Chien, and the branch line from Janesville to Monroe, a total distance of about 134 miles, according to contracts let, was $2,179,258, or $16,263 per mile. The cost of additional equipment contracted for, and deemed necessary to complete line, $241,985, making the entire estimated and constructed cost of the road complete to Prairie du Chien and Monroe, (238 miles of line and 30 miles of side-track,) with full equipment, including expenditures for all purposes from the beginning, $6,000,000-deducting cost of side-track— less than $25,000 per mile. The gross earnings for 1855 were $691,843.94; operating expenses, $273,797.06, or 40 per cent. of gross earnings. During the year the directors paid all the interest on funded debt, and declared a dividend on stock of 17 per cent.-10 per cent. in cash and 7 per cent in cash. To aid the construction of the road from Janesville to Monroe, the city of Milwaukee issued bonds for $300,000, and subscriptions were obtained in the counties of Rock, Green and Stephenson, for $362,700, one-half of the latter payable in cash and the remainder in mortgages upon land. December 12, 1855, the company contracted for all the work and materials on this part of the road, except rails, spikes and chairs, at $10,324 per mile-$300,000 to be paid in Milwaukee city bonds at par, the remainder in cash.

December 31, 1856, the total stock paid footed up at $2,975,019.38, and the funded debt at $3,350,000. Total expenditures to that date, with estimated cost per contract of completing lines to Prairie du Chien and Monroe, estimating all stock and securities at par, $6,582, 310, an average cost per mile including side tracks, of $24,589. The increase in estimate of previous years is accounted for by extra cost of depot buildings west of Madison, $100,000: extra rolling stock, $83,000; depot grounds and other extra expenditures in Milwaukee, $90,000; discount on forfeited stock, $50,201; dividend on stock to contractors, $56,115; discount on southern Wisconsin and Milwaukee city bonds, $70,000: interest on bonds to contractors, $98,000; additional side tracks and depot buildings, $13,040; and interest on farm mortgages, $21,583. Gross earnings for the year, $680,472.80; operating expenses, $307,781.06, or 45 per cent. of gross earnings. Interest was paid on funded debt and a dividend of 10 per cent. declared on stock.

The balance of the main line to Prairie du Chien was opened April 15, 1857, and the Southern Wisconsin line to Brodhead, September 1, 1857. At the close of the year ending December 31, 1857, the president reported the entire line completed to Prairie du Chien and Monroe, a total distance of 235 miles, in addition to 28 miles of side track, the whole valued at $6,841,627.11. The company also owned 200 miles telegraph line, $7,600; shop tools and fixtures, $13,430; 743 acres wood land, $12,500; rolling stock, $808,980; materials and stock on hand, applicable to repairs and operating, $184,257; assets, 6-R. R.-Doc. (Doc. 16.)

$367,118. Estimated total value of property and effects, $8,235,512.11. Lia bilities of company, capital stock paid, $3,440,672.51; funded debt, $3,734,500; Milwaukee city bonds, $534,000; floating debt, $526,339.60; total liabilities, $8,235,512.11. Deducting materials and stock on hand, applicable to repairs and operating, also assets applicable to extinguishment of floating debt, $532,182. The directors report to the stockholders December 31, 1857, the sum of $7,703,330-11, as "substantially the cost of your road and its equipments," embracing all expenditures, losses, discounts, interest, commissions and exchange, about $29,000 per mile including side track.

The gross earnings for the year 1857 were $882,817.89; operating expenses' $412,200.10-or 46 per cent. of gross earnings. The equipment consisted of 13 locomotives, 5% feet drivers; 10 locomotives, 5 feet drivers; 21 locomo tives, 4% feet drivers; 33 first class passenger cars; 13 baggage and post office cars; 411 house freight cars; 107 platform cars; 40 gravel cars; 39 hand cars and 22 iron cars, valued as follows: locomotives, $379,450; cars, $429,530. Length of track, as stated by Superintendent, as follows: Main line, 191.93; southern line, 42.48; total, 234.41 miles. Side track, on main line, 23.46 miles; southern line, 4.16 miles; total side track, 27.62 miles. The President, in an exhibit of the affairs of the company, dated April, 1858, reported "construction account closed."

[For further statement of debt and cost, see tabular abstract of reports to Secretary of State.]

IOWA AND MINNESOTA DIVISION.

March 11, 1865, the Prairie du Chien Railway Company leased the McGregor Western Railway, in the state of Iowa, for the term of nine hundred and ninety-nine years; took possession of that portion of the road in operation at the close of that month, and of the whole road, finished and unfinished, on the 1st of the ensuing August. The Prairie du Chien Company was to complete the road and supply rolling stock; was to operate the road and, after deducting expenses of operation and repairs from earnings, was to receive 8 per cent. per annum on the cost of the equipment furnished; the remainder of the earnings were to be applied to the payment, first, of liens and judgments against the road; second, of maturing interest on the bonds of the road, not exceeding $28,000 per mile upon the first 60 miles, and not exceeding $15,000 per mile upon a further length of road, and the balance to the McGregor Western Company. The Prairie du Chien Company were also permitted to complete unfinished portions of the road from its own funds, or from the earnings of the leased road, and to receive 8 per cent. interest upon all funds advanced for this purpose. The Prairie du Chien Company, having reserved the option of purchasing the McGregor Railway within a specified time, by exchanging the second preferred stock of the Prairie du Chien Company, at par, for the bonds of the McGregor and Western Company, for not exceeding $18,000 per mile for the first sixty miles of the road, and $25,000 per mile for the remaining portions of the road, and by also exchanging the common stock of the Prairie du Chien Company for

the common stock of the McGregor and Western Company, at the rate of one hundred dollars of the former for every two hundred dollars of the latterprovided the total stock of the latter should not average more than $22,000 for each mile of road constructed at the time of such purchase. The sale was to include land grants, donations and subscriptions. Under this contract, $274,000 in first preferred full paid stock at or over par, and $26,000 in common stock at 150 per cent., were issued under the lease, during the year 1865.

Before the close of the year 1866 the Prairie du Chien Company availed itself of its option of purchasing the McGregor & Western road in accordance with the terms heretofore specified, and after an advance to the McGregor company of about $500,000 for new construction. In making this purchase, the Prairie du Chien Company became the equitable owner of a land grant of about 2,500,000 acres, donated to aid in building the McGregor Western from McGregor to O'Brien county, Iowa-a distance of about 200 miles. [The grant was subsequently resumed by the state and re-granted to the McGregor and Sioux City Railway Construction Co.]

The entire length of the Iowa and Minnesota Division from North McGreg or, Iowa, to St. Paul and Minneapolis, is 220 miles. The length of the Minnesota portion of the line-from St. Paul and Minneapolis, and from Austin to the Iowa state line, is 148 miles. The original Minnesota charter was granted March 1, 1856, to the "Minneapolis and Cedar Valley Railroad Company." The name of the company was subsequently changed to "Minnesota Central." Minnesota loaned its bonds to the company to the amount of $600,000, and work commenced on the main line in 1857; but after the construction of about three-fifths of the road-bed, the road was forfeited to the state for non-payment of interest on the bonds, and subsequently went into the hands of a new company upon condition that the road should be completed within a stated time. The work of preparing the road for rails from Minneapolis to Fairbault, 56 miles, was commenced by the new company in August, 1863, and the line was opened for business from Mendota to Northfield, September 4, 1865, and from Minneapolis to Fairbault, October 13, 1865. The entire cost of the road, completed and equipped, was estimated at about $3,000,000, or about $1,700,000, besides the cash value of land granted.

The charter of the "Minnesota Central" Company was amended March 9, 1867, and the chartered line of the road now runs from Red Wing via Fairbault to the south-west part of the state of Minnesota. It has the right to build a branch from Red Wing via Rochester to the south line of the state, to bridge and ferry the Mississippi river at Red Wing; also to consolidate with the Cannon River Improvement Company, which has the right to build a railroad from Red Wing via Fairbault and Waterville to Mankato, and to receive therefor 300,000 acres of swamp land. Land was granted to the Minnesota Central company to the amount of 171,000 acres, and the company had received but 1,000 acres of this land, by deed from Minnesota prior to August 31, 1872.

Before the Prairie du Chien Company exercised the option of purchasing the McGregor and Western Railway, in 1866, the latter company had consol

idated with the Minnesota Central Railway Company, then extending from Minneapolis to Owatonna. [See Appendix 6, 115.] Seventy-one miles of this line was in operation and a large amount of work had been done between Mendota and St. Paul (eight miles), and on other parts of the line. According to the terms of this consolidation, the McGregor Western Company took the Minnesota Central, subject to a mortgage of $2,000,000 and to a floating debt of $100,000, and paid therefor $2,000,000 in the stock of the McGregor and Western. The purchase of the McGregor and Western road by the Prairie du Chien Company transferred this contract of consolidation to the latter company, which, under the terms of their agreement with the McGregor and Western, thus secured the Minnesota Central by the payment of $1,000,000 in stock for the $2,000,000 in stock issued by the McGregor and Western Company. The whole line thus acquired extended from McGregor to Minneapolis, 220 miles. Of this line 85 miles-from Cresco to Owatonna -then remained to be built. The construction of this portion was placed under contract the same year for $3,000,000-$2,000,000 payable in mortgage bonds upon the whole line from McGregor to St. Paul, and $1,000,000 in the common stock of the Prairie du Chien Company.

By the terms of the sale to the McGregor Western Railway Company, by the Minnesota Central, the lands belonging to the Minnesota Central Com. pany were reserved from the sale to the Minnesota Company, and consequently did not pass into the hands of the Milwaukee and St. Paul Company when the McGregor and Western was transferred to the Milwaukee and St. Paul. The amount of these lands of the Minnesota Central sold and contracted to be sold prior to Aug. 31, 1873, was 64,893 acres, at an average price of $6.54 per acre. The officers of the Minnesota Central, Nov. 25, 1873, were Selah Chamberlain, President; Russell Sage, Vice-President, and Russell J. Baldwin, Secretary.

The following is a list of the property of the Minnesota Central, reported to the Minnesota legislature for the year ending August 31, 1873: Engine houses, 6; machine shops, 1; wooden bridges (aggregate length 3,203 feet), 20; trestle works (aggregate length 8,280 feet), 64; locomotives (average weight 54,000 lbs.), 36; snow plows, 3; first and second class passenger cars, 15; mail, express and baggage cars, 4; freight cars (estimated), 325. The capital stock issued in August, 1873, was estimated as follows: common stock, $1,651,048; preferred stock, $1,500,952; total stock, $3,152,000. Funded debt, 7 per cent. bonds (estimated proportion for Minnesota), $2,450,000. The gross earnings for the year ending August 31, 1873, were $765,795.01, and the net earnings $128,916.77. The amount paid for dividends (on preferred stock) the same year was $52,533.32, and the amount paid for interest was $171,500; capital stock per mile of road operated (148), $21,297.30; funded and unfunded debt per mile, $18,200.39. Total, per mile, $39,497.67. Gross earnings per mile, $5.174, 29. Operating expenses per mile, $4,303.23.

Annexed is the estimate of the Minnesota commissioner as to the cost of the Minnesota Central equipment: (See Minnesota Report.)

The Minnesota Central was sold to the McGregor Western Railway Com