Year: 1862

From the report of the Directors of
the Detroit and Milwaukee Railroad, the
following abstract is made. Tire third
and fourth mortgage of the old company
was foreclosed in the spring of 1860, and
on the fourth of October in the same year,
the Chancery Court of Michigan granted
n decree for the sale of the road. The
sale took place October oath, and the
present company was at once organized.
The holders of the second bonds of the
road, to meet the payment Of the sums
ordered by the court to be paid in cash,
when the road was sold, agreed to fund
their coupons up to May Is, 1862. The
great bulk Of the coupons have been so
funded.


The proposition to fund the coupons
up TO the 10Th of May was made because
the then traffic of the company gave ev-
cry reason TO hope that by that time lhe
net revenue would be sufficient to pay off
the debts ordered by the court to be paid
in cash, and the time was fixed upon af-
ter consultation with some of the largest
holders of the bonds. Unfortunately,
however, circumstances over which the
company had no control, have operated to
prevent the traffic being sufficient to clear
off the debts by the date fixed upon.


The principal reasons assigned are, the
unfortunate present war, which in the
early part Of last year greatly crippled
the whole trade of the country and seri-
ously affected railway traffic.


In the spring Of last year freshet of
unusual magnitude occurred in Grand
River, at the western terminus of the line,
which, by undermining the high saud hills
near the mouth of the river caused the
formation of q heavy bar at its mouth,
and bv reducing the depth Of water pre-
vented the company's steamers from get
ting in and out of the harbor. The re-
suit of this was, that the through trade
of the line was very seriously injured dur
ing the business months of the spring, be-
sides increasing the expenses, and requir-
ing considerable outlay of capital to
dredge out a new channel across the bar,
as well as for protection works to avoid
the recurrence Of similar misfortune
hereafter.


The freshet, it is estimated, diminished
the cash resources of the company by not
less than $4,000.


The capital account shows that Cor bal
lasting, rolling stock, stations, sidings, and
the works at Grand Haven, &C., there has
been an outlay by the present company
of $105,944 50. The report of the en-
gineer states that the condition of tie
line to be satisfactory, but that to COM
plete its thorough ballasting and drain
age, further outlay of $50,700 will be
required. This expenditure may be ex-
tended over the present and next year, but
it is most desirable that the work should,
if possible, be completed this year, as by
doing so the value of the line would be
much increased, and the maintenance and
repair of the road and rolling stock pro-
portionately diminished.


1t is recommended that the harbor al
Grand Haven be placed, without delay,
in position 10 allow steamers TO enter
and leave without difficulty or delay, by
extending the pier at that place 500
feet into the lake, and constructing q
second one parallel to the first, SO as to
confne the flow of the river TO narrow
channel where it enters the lake, thus
forming rapid current which will always
maintain deep water across the bar
The cost is estimated at $4,000.


The liabilities of the company on De-
cember 81, 1861, were as follows: