Morning journal and courier., 1884-10-07
By order of the Board of Finance,
 JAMES P. PIGoTT, City Clerk.

OAMEo L. 1GO11, SAGy OIolh'
 In April, 1867, the city government voted to apply to the legislature for authority to aid the New Haven and Derby railroad by subscribing to it's capital stock. The author ity was given in an act approved June 16, 1867. By virtue of this act and the vote of the city the city subscribed for two thousand shares of the stock of the par value of $200,- 900. To raise this sum bonds of the city were issued to the amount of $200,000 Said bonds were dated October 1, 1867, bearing interest at the rate of per cent. per annum, payable semi-annually, $2O,O0O of these bonds maturing in ten years from the date thereof and $2O,0O0 maturing every year thereafter, so that the whole amount should be paid by October 1, 1886.
 Over three hundred citizens subscribed to the capital stock of the road in sums varying from $100 to S5, ,000. Stock was also issued to contractors to pay indebtedness to them
 The total amount of stock now outstanding is, according to the books of the treasurer, 4, 477 shares.
 The company also raised funds by the sum of $500, 900 first mortgage bonds, secured by a first mortgage on about 1015 miles of road. These bonds bear date 1868. They mature in 1888, and draw seven per cent. interest.
 The construction of the road began in 1868. Early in 1869 the city voted to extend further aid by guaranteeing another issue of bonds. Authority to do so was given by the legislature at it's May session, 1869. $225,- GOO of bonds were accordingly issued by the company and guaranteed by the city, princi- pal and interest. These bonds are dated February 1st, 1870, and payable in 1900, bearing interest at seven per cent. payable semi-annually.
 The city received an agreement of indem- nifty against any and all loss by reason of it's guaranty of these bonds, and the agreement is secured to the city by second mortgage on all the property covered by the first mort gage of the road and by first mortgage on all the ether property of the road, more par ticularly first mortgage on all the real es- tate of the New Haven and Derby Railroad company on Water street and extending to the flats or harbor. In 1871 the city voted to extend further aid. The authority to do so was obtained from the legislature by an act dated July 21, 1871. By the terms of this act the city was authorized to loan the company $75, ,000. The money was raised by the city at the Townsend Savings bank the city's note at seven per cent. interest dated July 31, 1871.
 This $75, 900 does not appear to have been paid by the city directly to the road, but to have been for the most part disbursed by the city to the creditors of the road as fol lows: July 31 and August 1, 1871, there was disbursed by four city vouchers, num- bered 1, ,758, 1,759, 1,760 and 1,761, to pay interest due on bonds and other indebted ness Of the road, S57, ,74l.6I:
 August Voucher 1,90g to Morris Tyler for locomotive and cars, $14, 553. 40.
 August 10 (voucher 2, 2,015) New Haven Car company, $14 4,260.OO
 August IA Voucher 2,016) Smith &c Sperry for work done, S630.90.
 September Voucher 2,252) Albert Spen- cer on contract for ballasting, $4,000.
 October 12 Voucher 2,62D Albert Spen- cer on contract for ballasting, $2, ,039.0
 October 12 Voucher 262D Spring & Will COX for turn table, $1S0.90.
 November Voucher 2,S6S) for construc- tion account, S595. .63.
 December Il Voucher 3, 129) to balance to company, s1,00o.0O. Total, S75, ,OOO.OO.
 The city's loans and investments may be summarized as follows:
 First, The city bought and owns two thousand shares of the capital stock for which it paid $200, ,000.
 Second, The city has guaranteed the pay ment, principal and interest, of $225, ,000 of thirty year seven per cent, bonds.
 Third, The city has paid out in cash its loan of 1871, $75, 1000.
 In this connection it should be stated that the city has paid the interest on the gnaran- teed bonds, beginning February 1st, 1872, amounting to S15, 750 per annum. The city has also paid or forborne the interest on $50, 900 of the $75, 900 cash loan above set forth, the company paying the interest on
 
 Further transactions have taken place be- tween the city and the road as follows:
 As above stated the road gave the city a mortgage deed to secure the city for all loss by reason of it's guarantee of the $225, ,000 in bonds. This deed gave the city a sec ond mortgage on ts 10 1-3 miles of road and first mortgage on it's property from Water street to the water line or chan nel, as claimed by the Derby road, except the road bed itself. In 1871 the Consolidated road desired to obtain the water front owned by the Derby road, and the purchase price was determined by the arbitrators, Messrs. H. M Welch, Luzon B. Morris and Pierport Foster, in 1873 and fixed at S112, ,000. The city holding first mortgage on this land, no title could be given without it's consent. The city released it's mortgage on the property ia question and on June 10th or 11th, 1873, there was paid to the city$50, 900 of the$112, 900, the road taking the remaining $62, ,000 The city applied this $50, 900 to pay in part the indebtedness of the city to the Townsend's s bank above alleged to.
 In May, 1874, the Court of Common Coun- cil passed an order to loan the road sum not to extend $50,0 upon satisfactory se- curity and appointed committee to attend to the matter. The loan was made on note of the road, dated July 31st, 1874, bearing interest at seven per cent, and tho money was disbursed as follows:
 1of4, July oQ, voucher 6.142l 1874 Sept. 1st, (voucher 7,173l Q s00 00 1874, Sept, 24th, Voucher 75SU. 145OO %
 Total $5OOoo %
 The city has loaned the road in cash s75. : 900 and $50, 900, in all $125, 900.
 It has received in return cash $50 OOO
 This cash payment to the city has gener- ally been treated as repayment of cash loaned. For the remaining $75, 900 the city holds the note of the company for $50,- 000.
 The other $25, 900 is represented by note which the city gave to William Fitch, trus- tee, dated February 1st, 1874, the interest on which has always been paid by the railroad company.
 TEg gamount paid by the city as interest