September. Covers 526.28 miles of railroad. Denomination of bonds, $1,000 or £200. Annual interest, $1,182,370.

Sixth mortgage on the main line, third mortgage on the Newburgh branch, and second mortgage on the Buffalo Branch. Also mortgage on leasehold rights in the Union Railroad, Buffalo, New York and Erie Railroad, Buffalo, Bradford and Pittsburg Railroad, Rochester and Genesee Valley Railroad, and the Long Dock Company. Issue was limited to $30,000,000, of which $13,065,000 was reserved to retire the first, second, third, fourth, and fifth mortgage bonds of the New York and Erie Railroad Company, and the Erie Railway and Buffalo Branch first mortgage bonds. This loan was the famous Gould issue of bonds, wise in its intent, but a good intention belated and fallen on evil times.

NEW YORK, Lake Erie and Western RAILROAD COMPANY'S FIRST CONSOLIDATED MORTGAGE COUPON BONDS, $3,699,500. Issue, 1878. Issue, 1878. Principal payable September, 1, 1920; interest, 7 per cent., gold, payable March and September. Covers 526.28 miles of railroad. Denomination of bonds, $1,000. Annual interest, $258,965.

These bonds are secured by the same property as the above consolidated mortgage, they having been issued to fund coupons from the bonds of that issue, which coupons are held as collateral security. These bonds were provided for in the reorganization plan of 1878. With this included, the total outstanding debt of the Erie under the Erie Railway Company's first consolidated mortgage is $33,663,077.

BUFFALO AND SOUTHWESTERN RAILROAD COMPANY'S FIRST MORTGAGE, gold, $1,500,000. Issue, 1877. Principal payable July 1, 1908; interest, 6 per cent., payable January and July. Covers 66.36 miles of railroad. Denomination of bonds, $50, $100, $500, and $1,000. Annual interest, $90,000.

First mortgage on the above railroad, Buffalo Creek Railroad Junction, Buffalo, to Jamestown, N. Y.

ERIE RAILROAD COMPANY'S SECOND MORTGAGE ON THE BUFFALO AND SOUTHWESTERN RAILROAD, gold, $1,000,000. Issue, 1895. Principal payable July 1, 1908; interest, 6 per cent., gold, payable January and July. Covers 66.36 miles of railroad. Denomination of bonds, $1,000. Annual interest, $50,000.

This mortgage covers the same property as the Buffalo and Southwestern first mortgage, and was placed to facilitate and insure consolidation of that railroad with the Erie system in 1895.

NEWBURGH AND NEW YORK RAILROAD COMPANY'S FIRST MORTGAGE, $250,000. Issue, 1868. Principal payable January 1, 1929; interest, 5 per cent., gold, payable January and July. Covers 12.64 miles of railroad. Denomination of bonds, $1,000. Annual interest, $12,500.

First mortgage on that railroad, Arden Junction. to Vail's Gate Junction, N. Y. Consolidated with Erie in 1895. This railroad is the "Newburgh Short-cut." It was built by a corporation entitled the Newburgh and New York Railroad Company, which was composed of the leading men in control of the Erie in the time of President Berdell and later under the Eldridge and Gould régimes. The railroad was to be the link that was to bring about the much-vaunted Erie connection with Boston and the East, by means of the railroad then exploited under the name of the Boston, Hartford and Erie, of unsavory memory, and of contact most unfortunate to Erie interests.

000.

*JEFFERSON RAILROAD COMPANY'S FIRST MORTGAGE, $2,800,000. Issue, 1869. Principal payable January 1, 1909; interest, 5 per cent., gold, payable April and October. Covers 36.51 miles of railroad. Denomination of bonds, $1,000. Annual interest, $140,000.

First mortgage on the Jefferson Railroad, Carbondale, Pa., to Susquehanna, Pa., 36.51 miles. Entire capital stock $2,095,450, owned by the Erie.

JEFFERSON RAILROAD COMPANY (HONESDALE BRANCH), FIRST MORTGAGE, $204,000. Issue, 1867. Principal payable July 1, 1927; interest, 41 per cent., payable January and July. Covers 8.18 miles of railroad. Denomination of bonds, $1,000. Annual interest, $9,180.

First mortgage on above railroad, on Honesdale Branch, Honesdale, Pa., to Hawley, Pa., 8. 18 miles. The mortgage was extended in 1887 until 1927; interest reduced from 7 to 4% per cent.

JEFFERSON RAILROAD COMPANY (HONESDALE BRANCH),

SECOND MORTGAGE, $96,000. Issue, 1869. Principal payable January 1, 1929; interest, 6 per cent., payable January and July. Covers 8.18 miles of railroad. Denomination of bonds, $1,000. Annual interest, $5,760.

*LONG DOCK COMPANY'S CONSOLIDATED MORTGAGE, $7,500,000. Issue, 1885. Principal payable October 1, 1935; interest, 6 per cent., gold, payable April and October. Denomination of bonds, $1,000. Annual interest, $450,000.

First mortgage on 577 acres of land and land under water, located at Jersey City, including the tunnel through Bergen Hill, the lands used by the Erie for depot and track purposes, and the strip of land 100 feet wide extending from the terminus of the Paterson and Hudson Railroad at the west portal of the tunnel, to the Hudson River; also mortgage on all buildings constructed or to be constructed, and all tracks, etc. On this property there are about 48 miles of track, many large warehouses and docks, ferry slips, passenger depot, machine, boiler, and car repair shops, and other structures. Estimated value of all, $16,000,000. These bonds are redeemable by lot at 110, but "only from the proceeds of sale of such lands as may be sold . . . as not necessary for the purposes of the Company." Capital stock, $800,000, all of which is owned by the Erie.

* NEW YORK, LAKE ERIE AND WESTERN DOCKS AND IMPROVEMENT COMPANY'S FIRST MORTGAGE, $3,396,000. Issue, 1883. Principal payable July 1, 1913; interest, 6 per cent., payable January and July. Denomination of bonds, $1,000. Annual interest, $203,760.

First mortgage on 94.17 acres of land and land under water at Weehawken, N. J., having a shore front of 2,558 feet, together with grants and leases. from State of all riparian rights in front of property. Original consideration for the lands alone, $2,342,708. Property situated south of West Shore Railway terminals and north of the Delaware and Hudson Canal Company's terminals. Depth of water, 25 feet. Property improved with 8 piers, varying in length from 700 to 1,000 feet, and in width from 40 to 100 feet; also a coal trestle 1,000 feet long, and a cold storage warehouse about 200 feet square, shops, etc. Structures are kept insured for 80 per cent. of value. About 25 miles of railroad track are laid on the property. The mortgage also covers the floating equipment of this Company, consisting of

ferry-boat, barges, car floats, lighters, etc. This property constitutes the main freight terminal of the Erie in New York Harbor. The total issue of these bonds was $4,000,000, of which $604,000 and the entire capital stock of the company are owned by the Erie.

NEW YORK, LAKE ERIE AND WESTERN COAL AND RAILROAD COMPANY'S FIRST MORTGAGE, $1,100,000. Issue, 1882. Principal payable May 1, 1922; interest, 6 per cent., payable May and November. Denomination of bonds, $1,000. Annual interest, $66,000.

First mortgage on the main line of the above company's railroad, Crawford Junction, Pa., to Johnsonburgh, Pa., 29.92 miles, and branches 27.72 miles; total, 57.64 miles; also on 14, 120 acres of coal lands owned in fee, and the mining rights in 8,057 acres additional. Total issue of bonds, $3,000,000, of which $1,900,000 is owned by the Erie. The entire capital stock, $500,000, is owned by the Northwestern Mining and Exchange Company.

*SUSPENSION BRIDGE AND ERIE JUNCTION RAILROAD COMPANY'S FIRST MORTGAGE, $965,000. Issue, 1870. Principal payable July 1, 1900; interest, 7 per cent., payable January and July. Covers 24.01 miles of railroad. Denomination of bonds, $1,000. Annual interest, $67,550.

First mortgage on the above railroad, East Buffalo Junction, N. Y., to Suspension Bridge, N. Y., via Niagara Falls. The total issue of bonds was $1,000,000, of which $35,000 is owned by the Erie. Of the capital stock, $500,000, all but $800 is owed by the Erie.

ELMIRA AND STATE LINE RAILROAD COMPANY'S MORTGAGE, $160,000. Issue, 1875. Principal payable October 1, 1905; interest, 7 per cent., payable April and October. Covers 6.50 miles of railroad. Denomination of bonds, $500 and $1,000. Annual interest, $11,200.

First mortgage on the Elmira and State Line Railroad, New York-Pennsylvania State line to Northern Central Railroad Junction, Elmira, N. Y. Principal and interest guaranteed by the Tioga Railroad Company. Leased to that Company in 1876 for nine hundred and ninety-nine years. Stock $90,200, of which $61,000 is owned by the Erie.

NEW YORK, PENNSYLVANIA AND OHIO RAILROAD COMPANY'S PRIOR LIEN MORTGAGE, gold, $8,000,000. Issue, 1880. Principal payable March 1, 1935; interest, 41⁄2 per cent., gold, payable March and September. Covers 429.59 miles of railroad. Denomination of bonds, $1,000, or £200; $500, or £100. Annual interest, $360,000.

First mortgage on main line of the Nypano, Salamanca, N. Y., to Dayton, O., 383.04 miles; branches to Oil City, Pa., 33.78 miles, and to Coal Mines, O., This mortgage matured March, 1895, 7-77 miles. and was extended forty years, interest being reduced from 6 per cent. to 41⁄2 per cent.

* TIOGA RAILROAD COMPANY'S FIRST MORTGAGE, $239,500. Issue, 1852. Principal payable November 1, 1915; interest, 5 per cent., gold, payable May and November. Covers 38.89 miles of railroad. Denomination of bonds, $500 and $1,000. Annual interest, $11,975.

First mortgage on the above railroad, from the coal-beds near Blossburg, Pa., to the northern. boundary of Pennsylvania, near Lawrenceville. The mortgage was extended in 1872 until 1915; interest reduced from 7 to 5 per cent. Stock-$391,200 common, $189,700 preferred-is all owned by the Erie, except $300 of common.

Erie Railway Company First Consolidated Mortgage Bonds....

New York, Lake Erie, and Western Railroad Company First Consolidated Mortgage Coupon Bonds Erie Railroad Company Prior Lien Bonds... Erie Railroad Company General Lien Bonds, 3 per cent. Gold, July, 1896, to July, 1898, 4 per cent. Gold thereafter...

9,180 5,760

203,760

66,000

67,550

Newburgh and New York Railroad Bonds.

Long Dock Company Bonds..

450,000

Honesdale Branch Railroad Bonds.

Honesdale Branch Railroad Bonds...

Jefferson Branch Railroad Bonds........

Bergen County Railroad Bonds.

140,000 12,000

New York, Lake Erie, and Western Docks and Improvement Company Bonds......

New York, Lake Erie, and Western Coal and Railroad Company Bonds....

Suspension Bridge and Erie Junction Railroad Bonds

Buffalo and Southwestern Railroad Company First Mortgage Bonds..

Erie Railroad Company, Buffalo and Southwestern Division, Second Lien 5 per cent. Gold Bonds... Tioga Railroad First Mortgage Bonds.

Tioga Railroad, Tioga Extension Bonds.

Elmira State Line Railroad Bonds.....

New York, Pennsylvania, and Ohio Railroad Company Prior Lien Bonds...

360,000

90,000

50,000 11.975 18.550 11,200

$6,769,169

$3,500 00 26.500 00

48,400 00 16,000 00

19,035 00 50,000 00 34,012 00

10.500 00 6.314 00 6,001 00 5.725 00 75.000 00 525.957 38

37,101 00

Can the Erie earn this appalling sum? Can it pay this terrible penalty that its misguided past has doomed it to-and live?

The annual reports give every assurance that it can. The three of them that have been issued since the formation of the Erie Railroad Company show that the sum has thus far been earned. According to the report for 1898 the net earnings of the railroad and income from other sources (year ending June 30th) were $8,716,189.80, which provided for the fixed charges and left a surplus of more than $633,000. This, then, would seem to demonstrate, beyond dispute or cavil, the correctness of the claim of those who pressed the reorganization to success, that the Erie Railroad's earnings would easily be more than its expenses, if the Company were relieved of the incubi that had hampered it for a generation, and the subsidiary lines necessary for the Erie's traffic were changed from a warring, irresponsible group to one uniform system, through a rational, business-like process of consolidation, by which they might be brought under the control and direction of one head. By such a consolidation of the Erie system, the days of loading upon Erie worthless and extravagant leases, the aftermath of corrupt stock-jobbery, and the cost and future responsibility of bad personal undertakings generally, have become, necessarily and happily, a thing of the past. Those plunderings of Erie are represented to-day by not less than $100,000,000 of her tremendous debt. If the Company and the railroad, conducted on correct principles of business and financiering and of operative management, can show a surplus above the large sum of fixed charges made necessary by that unrighteous debt, what might not this highway of most unfortunate memory have done if it had not fallen into designing hands years and years ago?