The estimated revenue on which the projectors invited the public to invest in its shares was—

The actual results for 1866 were, as reported by the

The local business of the road was very large, from the first opening of this great thoroughfare. The country through which it passes is one of remarkable fertility, and it was already thickly settled, and all the farms along the route in a state of high cultivation. The railroad, however, afforded the farmers what they had not before, namely, the means of getting their produce quickly and cheaply to market. They eagerly embraced the opportunity, and the production of grain, fruit, and cattle, all along the route, became greatly stimulated.

The value of the road was further seen, in the rapid growth of the towns along the route. Elmira, Binghampton, Owego, and Corning, were all small towns, when the road was commenced. Now they are

all flourishing cities, and their wealth and population have steadily increased.

But it was as a through route between the East and the West, that the New York and Erie Railroad acquired its greatest celebrity, and gained its greatest wealth. The Michigan Southern Railroad was opened to Chicago in 1852, and the Lake Shore Railroads, from Dunkirk to Toledo, in 1853. In connection with these roads, the New York and Erie road at once began to carry passengers, and this route between New York and Chicago became immediately popular. The passenger traffic over this through route increased rapidly, year after year, from 1854 to 1860; and during these six years the revenues of the New York and Erie Railroad, from passengers, were enormous. Freight, of course, followed the same route; and the freight business of the road, between New York and Chicago, increased rapidly year after year.

The great trouble with regard to freight was, that it all had to be unloaded at Erie, and transshipped into other cars. This was owing to the difference of gauge in the roads west of Erie, from that in use on the New York and Erie road. After some years, however, this difference was obviated, but not until a serious riot had taken place at Erie, in consequence of the attempt to equalize the grades. Since that time there has been no difficulty on this point, and loaded freight cars now go through, between New York and Chicago, without breaking bulk. ·

This road has an eastern terminus at Newburg, as well as at New York. It will be connected at Newburg, in a few months, with the Boston, Hartford, and

Erie Railroad, which is now completed, except a distance of twenty-six miles, east of Newburg. This road, when completed, will extend from Boston to Newburg, passing through Hartford, and several other important towns in Connecticut. It will prove a most valuable feeder to the New York and Erie road, and will add greatly to the business of the latter.

The Erie Railway, for convenience in operating, is divided in four divisions, while the branches leading from the main line to Buffalo constitute a fifth division, each under the charge of an assistant, or division superintendent.

The Eastern Division, extending from Jersey City to Port Jervis, 87 miles, is double-tracked the entire distance, the last completed portion of the second track (near Hohokus) having been brought into use early in March, 1866.

The Delaware Division, extending from Port Jervis to Susquehanna, a distance of one hundred and four miles, has nineteen and a half miles of double track, and fifteen miles have been graded for a second track. It is the intention of the Company that nothing shall be allowed to interfere with the steady prosecution of this important and essential work, until the double track is completed over the whole division. The Susquehanna Division extends from Susquehanna to Hornellsville, one hundred and thirty-nine miles, and of this one hundred miles are supplied with double track. The Western Division extends from Hornellsville to Dunkirk, one hundred and twenty-eight miles, and a single track has been found sufficient. The Buffalo and Northwestern Divisions, united under the

charge of one Division Superintendent, comprise the road from Buffalo to Corning, one hundred and fortytwo miles; from Attica to Hornellsville, sixty miles; and from Avon to Rochester, eighteen miles, making two hundred and twenty miles of single track road.

In the year 1861, the earnings of the road were, from passengers one million eighty-five thousand nine hundred and sixty-nine dollars; from freight five millions eleven thousand six hundred and sixty-one dollars. The total earnings were six million two hundred and fourteen thousand one hundred and eighty-two dollars, and the net earnings were two million four hundred and twenty-nine thousand six hundred and ninety-eight dollars.

On the 1st of January, 1862, the whole property of the road, and its management, passed from the hands of the Supreme Court into the possession of the present New York and Erie Railroad Company. For two years and a-half previously, the road had been operated by a receiver appointed by the court; but all liabilities and claims against the Company and its property having been paid or satisfactorily adjusted, by arrangement between the shareholders and creditors, he was discharged. On handing over the property to the new Company, the receiver said: "With the ability to earn more income than ever before, it is hoped the early return of peace and prosperity to the country will so increase the traffic that the road will hereafter earn full interest on the entire capital and debt of the Company." This hope, so far only as the earnings of the road are concerned, has been fully realized. The road has not only earned more than the

interest on its entire cost to the Company, but is in a condition so improved in its permanent way and rolling stock as to be able to earn still larger income, subject only to the state of the times and the degree of the general prosperity of the country.

During the year 1862 the road bed was very much improved by widening cuts, deepening ditches, adding new culverts, and raising the grade in places exposed to floods, substituting stone ballast for gravel, and increasing the number and size of cross-ties. The whole road was now fenced for the first time, on both sides, along its entire length. The rolling stock consisted of two hundred and twenty-six locomotives, one hundred passenger cars, and three thousand one hundred and fifty freight cars. The net earnings of the road were three million five hundred and thirtynine thousand five hundred and eighty-six dollars.

During the year 1863 the efficiency of the rolling stock was largely increased by the addition of seventeen fine locomotives and two hundred and fifty-seven cars. INCREASE OF MEANS TO OPERATE THE ROAD.The report of the President for this year says:

"The necessity for more equipment both of locomotives and cars, as well as additional double track, machine shops, station accommodations and turnouts, is strongly impressed upon the minds of the Board of Directors. In order to increase the earnings, or even to maintain the rate of last year for any considerable time, these increased facilities are indispensable. The large earnings of 1863 were produced by working the machinery almost to its utmost capacity, and far beyond the limits of economy; while some parts of the