112,360.16 4, 686.47

STATEMENT RELATING TO ORIGIN AND COST OF WISCONSIN RAILROADS.

CHICAGO, MILWAUKEE AND ST. PAUL RAILWAY.

PRAIRIE DU CHIEN DIVISION.

Chartered February 11, 1847, from Milwaukee to Waukesha, under the name of "Milwaukee and Waukesha Railroad Company." Capital stock $100,000. Charter amended March 11, 1848, extending the road via Madison to some point in Grant county on the Mississippi river. Capital stock, $3,000,000. Name changed to "Milwaukee, Waukesha and Mississippi Railroad Company," and February 1, 1850, to "Milwaukee and Mississippi Rail road Company." Subscriptions to capital of the Milwaukee and Waukesha Company were first made at Milwaukee and Waukesha, February 7, 1848, and books were kept open until $100,000 were subscribed. First directors elected May 10, 1849. At the end of the year 1849, total subscriptions to stock amounted to $600,000. Survey from Milwaukee to Waukesha commenced June 7, 1849. Under this survey the maximum grades ascending to the westward were reported at 25 feet to the mile; eastward, 6 feet. No deep cut, no high embankment, no rock excavation, and no expensive bridges between Milwaukee and Waukesha. The estimated cost of this portion of the line20%1⁄2 miles-based on actual contract prices, and on actual proposals for iron, including entire cost of finished road and equipment, ready for operation, with necessary depot buildings, was placed by the directors in their annual report to the stockholders for the year 1849, at $232,652 or $11,349 per mile. The price of iron was included in this estimate, at $50 per ton.

At the close of the year 1850, subscriptions to capital stock, by citizens of Wisconsin and by the city of Milwaukee, had reached nearly $1,000,000, which subscriptions had been paid to a considerable amount, by mortgages on improved real estate in the country. The president of the company asserted that operations thus far had shown that the cost of the road complete, with the necessary buildings, would be about $12,000 per mile.

At the close of the year 1851, the length of road in operation was about 30 miles, and the directors assumed that a sufficient amount had been expended on all the line completed and in course of construction, to equal the cost of 381⁄2 miles. The total expenditures up to January 1, 1872, as far as ascertained, were as follows: grading and bridging, $146,818.16; superstructure, $246,485.43; right of way, $9,407.54; real estate, $24,230.15; Waukesha depot and machine shop, $24,531.43; shop tools and fixtures for same, $2,670.00; Milwaukee depot, including filling, $1,911.46; water stations, $641.11; equipments, $71,718.65; engineering, $18,743.99; interest and exchange, $49,434.69; incidental expenses $4,745,39; special expenses, $18,596.71; loan expenses and commission, $12,465.16; salaries, printing and stationery, $52,874.32; personal property, $2,612.65;

taxes, $144.70; other expenses, including interest on capital stock, after deducting net earnings, sufficient to make a total of $660,738.10—or about $17,000 per mile.

The cost of road-bed and superstructure for the 381⁄2 miles named, exclusive of engineering, right of way, incidental and contingent expenses, was placed at about $11,156 per mile. The cost of road-bed and superstructure of the 20% from Milwaukee to Waukesha, exclusive of engineering, right of way and other contingent expenses, was placed at $11,400 per mile, and the engineering and other expenses at about $1,600 per mile. The cost of road-bed and superstructure for part of the road between Waukesha and Eagle Centre, 161⁄2 miles, fully completed, exclusive of equipment, depot grounds and buildings, was placed at $11,604 per mile. Sept. 29, 1851, the company contracted for the construction of the road to the east bank of Rock river, 311⁄2 miles, for $12,000 per mile, one-half in bonds of the road, and one-half in cash. For this price the contractors were to build and complete the road-bed and superstructure, with frogs, switches, turn-outs, bridges, culverts, etc., ready for the running of the cars, furnishing all materials, iron and ties included, equal to those on the best portion of the road previously finished. The company was to provide gravel banks, right of way, and the usual motive power and cars for transporting materials only. The contract was subsequently modified by the payment of cash in place of the bonds specified, at a discount of five per cent.

At the close of the year 1852, the main line was completed from Milwau keee to Milton, a distance of 62 miles, and a connection formed with Janesville by a branch road of 8 miles, constructed under the charter of the Southern Wisconsin Railroad Company. Total road in operation, 70 miles. June 15, 1852, $600,000 of eight per cent. bonds were issued, secured by first mortgage on the road from Waukesha to Rock river, and by second mortgage on the road from Milwaukee to Waukesha. The amount of the second mortgage bonds was $74,000, and these were reserved to be used in exchange for the first mortgage bonds on the same portion of the road, so that the entire bonds outstanding should not exceed $600,000. The total paid subscriptions in stock up to Dec. 31, 1852, amounted to $734,369.87. Of this amount, $7,406.19, in partial payments for stock subscribed, had been forfeited to the company. The operating expenses of the year were 431⁄2 per cent. of gross earnings. The cost of the whole road to Janesville, as far as then ascertained, was reported by the directors at $19, 494 per mile. The separate cost of the branch from Milton to Janesville, not including equipment, was given at $98, 968.18, or $12, 371 per mile. At this date the bonds of the company commanded a premium in market. The road was open to Eagle, 36 miles from Milwaukee, Jan. 22, 1852; to Palmyra, 42 miles from Milwaukee, Aug. 3, 1852; to Whitewater, 50 miles from Milwaukee, Sept. 24, 1852; to Milton, 62 miles from Milwaukee, Dec. 1, 1852, and to Janesville, about 70 miles from Milwaukee, Jan. 6, 1853. The equipment included 6 passenger cars, 35 eight-wheel box cars, 43 eight-wheel platform cars, 67 four-wheel gravel cars, 7 hand cars, and 9 locomotives. The cost of entire line to Janesville, as

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-trackless 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 experditures 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.