Copy

1st.

THE MORTGAGE

THIS INDENTURE Made This First Day of June in
The Year of our Lord One Thousand Eight Hundred and Eighty Three,
between THE DENVER AND EASTERN RAILWAY
AND COAL COMPANY

A Corporation incorporated, existing and doing business under
and by virtue of the Laws of the State of Colorado, Party of the
First Part, and James Gilfillan of the City, County and State of
New York, Party of the Second Part,

Witnesseth:

Whereas the Party of the First Part deems it necessary for
the purpose of its business, to borrow money by its Bonds and
Mortgage as allowed by the Law, and therefore designs and intends
to borrow the same and wishes to dispose of its Bonds in the sum
of Five Hundred Dollars ($500,000-100) Each, in Number not to exceed
One Thousand (1000) payable at the American Exchange National
Bank in the City of New York, said Bonds to be dated on the first
day of June A.D. 1883, and payable on the first day of June 1913
with interest thereupon at the rate of six per cent per annum,
payable Semi-Annually at the American Exchange National Bank in
the City of New York, on the first days of June and December in

2nd

Each year according to the Interest Warrants, or Coupons, attached to said Bonds and to Mortgage the Corporate Property and franchises of the said party of the first part to secure the payment thereof, in the manner hereinafter mentioned, The said several Bonds to be numbered consecutively from number one (1) upwards to, and including number One Thousand (1000), and such Bonds are to be equally secured by these presents, without preference of the one over the other, and all of which are in form following, To-Wit:

No. $500.

State Of Colorado.

THE DENVER AND EASTERN RAILWAY
AND COAL COMPANY.

First Mortgage Six Per Cent Bond. Incorporated under the Laws of the State of Colorado.

THE DENVER AND EASTERN RAILWAY
AND COAL COMPANY. Promise to pay to the Bearer of this Bond on the first day of June in the year 1913 at the American Exchange National Bank in the City of New York, Five Hundred Dollars in Lawful Money of the United States and interest thereon at six per cent per annum payable sem-annually on the first days of June, and December, in each year upon presentation, and surrender of the annexed Coupons thereof, as the same shall severally mature, free from all United States and Municipal Taxes that may be required by law to be deducted by said Company from said Interest, the said Company hereby assuming to pay the same.

The payment of the Principal and Interest of this Bond with others of like tenor and same date, not exceeding in all One Thousand Bonds of Five Hundred Dollars each, numbered consecutively from one to One Thousand, is secured by a first Mortgage duly

3rd

made by said Company to James Gilfillan Esquire of New York as Trustee for the Holders of all of said Bonds which is the first Mortgage upon the whole of the Rail Road constructed and to be constructed by this Company with the appurtenances and all property, and rights of property including the Coal Fields of said Company now held or which may hereafter be acquired and all its franchises including the franchises to be a corporation, which property more particularly appears recited in said Mortgage bearing even date herewith and duly recorded in the Registry of Deeds, at the City of Denver, County of Arapahoe, and State of Colorado.

This Bond or any of the said series, shall not be obligatory or valid for any purpose unless certified to be James Gilfillan the said Trustee in the City of New York.

In Witness whereof the said Company hereunto affixes its corporate seal and causes these presents to be signed by the President and Secretary thereof on the first (1st.) day of June in the year 1883.

President.

Secretary.

Now therefore in order to secure the principal and interest of said Bonds, and in consideration of One Dollar to it paid, the DENVER AND EASTERN RAILWAY AND COAL COMPANY The party of the first part, herein hath given, granted, bargained, conveyed and transferred, and by these presents doth give, grant, bargain, sell, convey and transfer to the said party of the second part and his successor, or successors, in the trust hereby created, all the right of way, Rail, Road, Iron, Ties, Engines, Locomotives, Cars, Switches, Turnouts, Sidings, Buildings and property of every name, kind, and nature, of the

DENVER AND EASTERN RAILWAY AND COAL
COMPANY
In and around the Rail Road thereof, commencing at
the City of Denver in the State of Colorado, and running easterly
therein, twenty miles more or less to the Coal Fields belonging to
said Company. And also all the following described Real Estate
situated in the County of Arapahoe in the State of Colorado. Being
all of the sections seventeen (17) twenty (20) twenty one (21)
twenty eight (28) and thirty two (32) and the northeast quarter
of section twenty six (26) all in township three (3) south of
range sixty five (65) west, in said County last mentioned, and con-
taining in all about three thousand and three hundred and sixty
(3360) acres of land more or less.

To have and to hold the said granted premises unto said party
of the second part and his successors in the trust for the use
and purposes in this Indenture expressed, that is to say, that if
the interest on any of the Bonds so to be issued shall not be
paid by the party of the first part when the same shall become
due, and if said interest shall remain in arrears for six months
or in case the principal of said Bonds or any of them shall not
be paid at their maturity, then it shall be lawful for the said
party of the second part or his successor or successors in the
trust on the written request of the holders of not less than one
fourth part of said Bonds then outstanding to take possession of
all and singular the said premises, property, and franchises, so con-
veyed, and as the Attorney or Attorneys in fact or Agent or Agents
of the said party of the first part, by himself or themselves or
his or their Agents or servants or substitute or substitutes duly

5th.

constituted shall cause the said premises and real property
belonging to the party of the first part to be sold according to
law and on such sale to make, execute, and deliver to the purchaser
or purchasers thereof a good and sufficient deed in fee simple
for the same which shall be a bar against the party of the first
part, its successors and assigns and all persons claiming under it
or them, of all rights, interests or claims in or to the said prem-
ises or any part of them. And the said party of the second
part, after deducting from the proceeds of said sale, the costs and
expenses thereof and the proper fair and legal compensation to be
paid to the party of the second part for his services as trustee
under the trust, and in case of any such taking possession or pro-
ceeding to sell the mortgaged premises for default of payment of
interest only, if the said party of the first part before the said
Bonds shall become payable, and before such sale shall be made,
shall pay and satisfy all interest then in arrear on any of said
Bonds and shall pay and discharge all costs, expenses, disbursments
and compensation provided for by this instrument, then and there-
tofore incurred by reason of such default, the said party of the
second part upon evidence thereto, to his satisfaction, shall there-
upon discontinue such proceedings and restore possession of the
mortgaged premises to the said party of the first part to be held
subject to these presents in like manner as if such default had
not happened, and in case of such taking possession or proceeding
to sell the mortgaged premises for default of payment of principal
and interest, and the same shall be sold for the purpose of pay-
ment of principal and interest, then the said party of the second
part, shall apply so much of the proceeds of such sale as may be
necessary to the payment of the principal and interest due and

6th.

unpaid on all of the outstanding mortgage Bonds issued hereunder
and in case there should not be a sufficient amount of the pro-
ceeds of said sale to pay all of the said Bonds, issued principal,
and interest in full, then the same shall be paid pro rata.

It is agreed between the parties to this Instrument that the
said party of the second part and his successor or successors
in said trust shall only be accountable for reasonable and proper
diligence for the management thereof, and shall not be responsible
for the acts or defaults of any one of his employees by him or his
successor or successors under this trust and that the said party
of the second part shall be entitled to receive proper compensa-
tion for all labor and services performed and expenses and dis-
bursements and damages incurred by him in the discharge of his
trust, and in case he shall take possession of said premises or
any part thereof that he shall not in any manner be liable for
any loss or damage which we shall not happen by his gross neg-
ligence or wilfull malfeasance.

And the said James Gilfillan does hereby accept the trust
hereinbefore particularly mentioned and set forth and promises
and agrees to execute the same to the best of his ability.

In witness whereof the said DENVER AND EASTERN
RAILWAY AND GOAL COMPANY By order of its
Board of Directors and upon the written content of persons hold-
ing more than two thirds of the stock of said corporation,
actually issued has hereunto affixed its corporate seal and
caused the same to be signed by its President and Secretary.

Chicago, July 9th, 1883

Chas. E. Barrett Esq.

Chicago,

Dear Sir,

The Anthracite Coal lands that I presented you are located on the south part of Anthradite Creek and about three miles south and west of the town of Irwin, Gunnison County, Colorado, comprises seventeen hundred and twenty (1720) acres all in one tract, the lands are very favorably located for cheap and economical mining, the coal being nearly all above water level hence there is no use for heavy and expensive hoisting and pumping machinery such as most Collieries require, the lands are thoroughly developed by not less than twenty openings on the vein at different points of the tract, five of the openings being from three to five hundred feet in depth, so that we know that we have a continuous body of coal the lands are heavily timbered by a large growth of Mountain Pine it making very fine timber for building or mining purposes, the vein dips at an angle of about twenty degrees (20°) the coal is a pure Anthracite, carrying ninety (90) per cent fixed Carbon, the cap rock is Sand Stone and perfectly smooth, the foot wall slate, with about two inches of soft mining between the slate and the coal, there is no slate, shale, bone, clay, or any impurity in the vein it being a vein of solid clean coal it is a dry mine and will require but little if any timbering, the lands have been opened and worked in a limited way for the last three years and the coal been tested in a very thorough way for steam,

and the coal been sealed in a very thoroughly way for a year,
obined and moked in a finished way for the year three times,
will secure fire, fire in any manner, the lands have been
aird if permit a air of a thin clean coal it is a dry one and
soal 'there is no afate, shale, one, cist or any mineral in the
with aoint two inches or soft minuit between the afate and the
rock 18 Bond Stone and bateably amounte the floor well afate.'

Antinette's, emruntly (80) her coal fixed Carbon, the coph
of an antle of aoint twenty detroes ( 80: ) the coal is a brine
asay fine timber for buildint or minuit purposee, the airn dubs
afily timbered of a fine growth of Moss and brine if making
know that we have a courimonne poda of coal the lands are hea
intie permit from three to five hundred feet in depth, so that we
ou the airn at different borne of the tract, five of the ohe-
use thoroughly decomposed by not less than twenty oblongs
and hambint machinery enough a most Collieries redunre, the lands
level hence there is no way for heavy and exbensive horint
and economical minuit, the coal permit nearly all spoke water
in one tract, the lands are very favorably located for each
one's cooldraes aevenes hundred and twenty (1120) series all
miles south and west of the town of Irain (Bunrion County Col-
located on the south part of Antinette Creek and sport three
lands in the south part of the tract.

The Antinette Coal lands that I brought here are

Dear Sir,
Chas. F. Barrett Ead.

Chas. F. Barrett Ead.

Chicato, July 9th 1888.

smelting and general domestic purposes, and is in general use
now at Irwin, not only at the reduction works and mines, but for
all purposes, and gives universal satisfaction, it is a bright
black with a clean sharp conchidal fracture, the lands are now
in condition to produce one hundred tons per day, and could be
put in shape in a few months, to produce one hundred thousand
tons per annum, it can be mined, and prepared and put on the
ears at a cost of less than two dollars per ton, and can be
laid in Denver, or Pueblo at a cost not exceeding five dollars
and a half per ton, where now Pa. Anthracite cost seventeen
fifty per ton, the demand for this coal is practically speak-
ing, unlimited as we not only have the west and south west
but the east as far as the Mo. River, the tract will cost, from
one hundred and eighty to one hundred and ninety thousand dol-
lars, Colliery, Miners, Houses &c., about sixty thousand making
a total cost of lands, and improvements of a quarter of a
million dollars, these lands, were the first located in Colo.,
and I can say without fear of contradiction that they are the
best, and received in a commercial sense, they are unquestion-
ably the most valuable of any yet discovered out-side those
Pa. it is my purpose to interest practical business men with
me in this enterprise and work it legitimately, and judiciously,
this property has a great future, and if properly managed
must necessarily make a great deal of money. Any further
information that I can give you either by letter or by person
I shall be pleased to do.

Very resp'y yours,

Chas.H.Lawrence.

["Cruz: H. F. Tumauane.", "Aeryx Keek, A. Morte.", "I shall be pleased to do so.", "Information that I can give either by letter or by telephone\nthat it necessarily make a threat deal or money. Any further\ntheft property has a great future, and it properly motivated", "me in this encumbered and work if letterly, and unduly, and\nby. If I take my burrooes to interest pastures men with\nonly the most inducible or any net recovered out-ands phone\nbeat, and received in a commercial sense, they the undueation-\nand I can see without room or contradiction that they are the\nmillion dollars, these lands, were the transit possessed in Colo.,\na total coat of lands, and improvements of a draper or a\nfane, 'Coltirry,' 'Wurkes,' 'Homes &c.' about axfly thousand making\nthe thousand that are worth to and worth it and worth it to-\nput the coat so far as the No. 75, the truck will coat, from\nthat, unimproved as we now only have the meat and south meat\nthat per the demand for this coat is brusquely above-\nand the ton, where now be Authority's coat seven\nfor Denver, or 'Prairie' of a coat not exceeding five dollars\nas a coat or less than two dollars her ton, and can be\ntons per annum, it can be mined, and prepared and put on the\nland in three in a few months, to produce one hundred thousand\nin connection to produce one hundred tons her ton, and could be\nblack with a clean shank concave tractive, the lands are now\nall burrooes, and free universal attraction, if I be a prating\nnow of Irain, not only at the reduction works and mines, but\nam I limited and general domestic burrooes, and I be in general no", "in three months, to produce one hundred thousand\nin three months, to produce one

["THIS INDENTURE MADE THIS FIRST DAY OF JUNE IN THE YEAR OF OUR\nLORD ONE THOUSAND EIGHT HUNDRED AND EIGHTY THREE, BETWEEN THE\nDENVER AND EASTERN RAILWAY AND COAL COMPANY A CORPORATION INCORPO-\nRATED, EXISTING AND DOING BUSINESS UNDER AND BY VIRTUE OF THE LAWS\nOF THE STATE OF COLORADO, PARTY OF THE FIRST PART, AND JAMES GILFILLAN\nOF THE CITY, COUNTY AND STATE OF NEW YORK, PARTY OF THE SECOND PART,\nWITNESSETH:", "WHEREAS THE PARTY OF THE FIRST PART DEEMS IT NECESSARY\nFOR THE PURPOSE OF ITS BUSINESS, TO BORROW MONEY BY ITS BONDS AND\nMORTGAGE AS ALLOWED BY LAW, AND THEREFORE DESIGNS AND INTENDS TO\nBORROW THE SAME AND WISHES TO DISPOSE OF ITS BONDS IN THE SUM OF\nFIVE HUNDRED DOLLARS ($500,00-100) EACH, IN NUMBER NOT TO EXCEED ONE\nTHOUSAND (1000) PAYABLE AT THE AMERICAN EXCHANGE NATIONAL BANK IN\nTHE CITY OF NEW YORK, SAID BONDS TO BE DATED ON THE 1ST DAY OF JUNE\nA, D, 1883, AND PAYABLE ON THE FIRST DAY OF JUNE 1913 WITH INTEREST\ntobe\nTHEREUPON AT THE RATE OF SIX PER CENT PER ANNUM, PAYABLE SEMI-ANNU-\nALLY AT THE AMERICAN EXCHANGE NATIONAL BANK IN THE CITY OF NEW YORK,\NON THE FIRST DAYS OF JUNE AND DECEMBER IN EACH YEAR ACCORDING TO THE\nINTEREST WARRANTS OR COUPONS ATTACHED TO SAID BONDS AND TO MORTGAGE\nTHE CORPORATE PROPERTY AND FRANCHISES OF THE SAID PARTY OF THE FIRST\nPART TO SECURE THE PAYMENT THEREOF IN THE MANNER HEREIN AFTER MEN-\n-TIONED, THE SAID SEVERAL BONDS TO BE NUMBERED CONSECUTIVELY FROM\nNUMBER ONE (1) UPWARDS TO AND INCLUDING NUMBER ONE THOUSAND (1000)\nAND SUCH BONDS ARE TO BE EQUALLY SECURIED BY THESE PRESENTS, WITHOUT\nPREFERENCE OF THE ONE OVER THE OTHER AND ALL OF WHICH ARE IN FORM\nFOLLOWING, TO WIT:"]

$500. STATE OF

NO

COLORADO.

$500.

THE DENVER AND EASTERN RAILWAY AND COAL COMPANY. FIRST MORTGAGE SIX PER CENT BOND.

INCORPORATED UNDER THE LAWS OF THE STATE OF COLORADO. THE DENVER AND EASTERN RAILWAY AND COAL COMPANY PROMISES TO PAY TO THE BEARER OF THIS BOND ON THE FIRST DAY OF JUNE IN THE YEAR 1913 AT THE AMERICAN EXCHANGE NATIONAL BANK IN THE CITY OF NEW YORK, FIVE HUNDRED DOLLARS IN LAWFUL MONEY OF THE UNITED STATES AND INTEREST THEREON AT SIX PER CENT PER ANNUM PAYABLE SEMI-ANNUALLY ON THE FIRST DAYS OF JUNE AND DECEMBER IN EACH YEAR UPON PRESENTATION AND SURRENDER OF THE ANNEXED COUPONS THEREOF, AS THE SAME SHALL SEVERALLY MATURE, FREE FROM ALL UNITED STATES AND MUNICIPAL TAXES THAT MAY BE REQUIRED BY LAW TO BE DEDUCTED BY SAID COMPANY FROM SAID INTEREST, THE SAID COMPANY HEREBY ASSUMING TO PAY THE SAME.

THE PAYMENT OF THE PRINCIPAL AND INTEREST OF THIS BOND WITH OTHERS OF LIKE TENOR AND SAME DATE, NOT EXCEEDING IN ALL ONE THOUSAND BONDS OF FIVE HUNDRED DOLLARS EACH, NUMBERED CONSECUTIVELY FROM 1 TO 1000 IS SECURED BY A FIRST MORTGAGE DULY MADE BY SAID COMPANY TO JAMES GILFILLAN ESQUIRE OF NEW YORK AS TRUSTEE FOR THE HOLDERS OF ALL OF SAID BONDS WHICH IS THE FIRST MORTGAGE UPON THE WHOLE OF THE RAILROAD CONSTRUCTED AND TO BE CONSTRUCTED BY THIS COMPANY WITH THE APPURTENANCES AND ALL PROPERTY AND RIGHTS OF PROPERTY INCLUDING THE COAL FIELDS OF SAID COMPANY NOW HELD OR WHICH MAY HERE AFTER BE ACQUIRED AND ALL ITS FRANCHISES INCLUDING THE FRANCHISE TO BE A CORPORATION, WHICH PROPERTY MORE PARTICULARLY APPEARS RECITED IN SAID MORTGAGE BEARING EVEN DATE HEREWITH AND DULY RECORDED IN THE REGISTRY OF DEEDS AT THE CITY OF DENVER, COUNTY OF ARAPAHOE AND STATE

OF COLORADO. THIS BOND OR ANY OF THE SAID SERIES SHALL NOT BE
OBLIGATORY OR VALID FOR ANY PURPOSE UNLESS CERTIFIED TO BY JAMES
GILFILLAN THE SAID TRUSTEE IN THE CITY OF NEW YORK.

IN WITNESS WHEREOF THE SAID COMPANY HEREUNTO AFFIXES ITS CORPORA-
RATE SEAL AND CAUSES THESE PRESENTS TO BE SIGNED BY THE PRESIDENT
AND SECRETARY THEREOF ON THE FIRST (1ST) DAY OF JUNE IN THE YEAR 1888

PRESIDENT.

SECRETARY.

NOW THEREFORE IN ORDER TO SECURE THE PRINCIPAL AND INTEREST OF
SAID BONDS AND IN CONSIDERATION OF ONE DOLLAR TO IT PAID, THE DENVER
AND EASTERN RAILWAY AND COAL COMPANY THE PARTY OF THE FIRST PART
HEREIN HATH GIVEN, GRANTED, BARGAINED, CONVEYED AND TRANSFERRED, AND
BY THESE PRESENTS DOTH GIVE, GRANT, BARGAIN, SELL, CONVEY AND TRANSFER
TO THE SAID PARTY OF THE SECOND PART AND HIS SUCCESSOR OR SUCCES-
SORS IN THE TRUST HEREBY CREATED, ALL THE RIGHT OF WAY, ROAD, RAIL,
ROAD, IRON, TIES, ENGINES, LOCOMOTIVES, CARS, SWITCHES, TURNOUTS, SIDINGS,
BUILDINGS AND PROPERTY OF EVERY NAME, KIND AND NATURE OF THE DEN-
VER AND EASTERN RAILWAY AND COAL COMPANY IN AND AROUND THE RAIL-
ROAD THEREOF, COMMENGING AT THE CITY OF DENVER IN THE STATE OF
COLORADO AND RUNNING EASTERLY THEREIN, TWENTY MILES MORE OR LESS
TO THE COAL FIELDS BELONGING TO SAID COMPANY. AND ALSO ALL THE
FOLLOWING DESCRIBED REAL ESTATE SITUATED IN THE COUNTY OF ARAPA-
HOE IN THE STATE OF COLORADO, BEING ALL OF SECTIONS SEVENTEEN (17)
TWENTY (20), TWENTY ONE (21), TWENTY EIGHT (28) AND THIRTY TWO (32)
AND THE NORTHEAST QUARTER OF SECTION TWENTY SIX (26) ALL IN TOWNSHIP
THREE (3) SOUTH OF RANGE SIXTY FIVE (65) WEST, IN SAID COUNTY LAST MEN-

THIZED AND CONTAINING IN ALL ABOUT THREE THOUSAND AND THREE HUNDRED
AND SIXTY (3360) ACRES OF LAND MORE OR LESS.

TO HAVE AND TO HOLD THE SAID GRANTED PREMISES UNTO SAID PARTY
OF THE SECOND PART AND HIS SUCCESSORS OR SUCCESSORS IN THE TRUST
FOR THE USES AND PURPOSES IN THIS INDENTURE EXPRESSED, THAT IS TO SAY,
THAT IF THE INTEREST ON ANY OF THE BONDS SO TO BE ISSUED SHALL NOT
BE PAID BY THE PARTY OF THE FIRST PART WHEN THE SAME SHALL BECOME
DUE AND IF SAID INTEREST SHALL REMAIN IN ARREARS FOR SIX MONTHS
OR IN CASE THE PRINCIPAL OF SAID BONDS OR ANY OF THEM SHALL NOT BE
PAID AT THEIR MATURITY, THEN IT SHALL BE LAWFUL FOR THE SAID PARTY
OF THE SECOND PART OR HIS SUCCESSOR OR SUCCESSORS IN THE TRUST, ON
THE WRITTEN REQUEST OF THE HOLDERS OF NOT LESS THAN ONE FOURTH PART
OF SAID BONDS THEN OUTSTANDING TO TAKE POSSESSION OF ALL AND SIN-
GULAR THE SAID PREMISES, PROPERTY AND FRANCHISES SO CONVEYED, AND
AS THE ATTORNEY OR ATTORNEYS IN FACT OR AGENT OR AGENTS OF THE SAID
PARTY OF THE FIRST PART, BY HIMSELF OR THEMSELVES OR HIS OR THEIR
AGENTS OR SERVANTS OR SUBSTITUTE OR SUBSTITUTES DULY CONSTITUTED
SHALL CAUSE THE SAID PREMISES AND REAL PROPERTY BELONGING TO THE
PARTY OF THE FIRST PART TO BE SOLD ACCORDING TO LAW AND ON SUCH SALE
TO MAKE, EXECUTE AND DELIVER TO THE PURCHASER OR PURCHASERS THEREOF
A GOOD AND SUFFICIENT DEED IN FEE SIMPLE FOR THE SAME, WHICH SHALL
BE A BAR AGAINST THE PARTY OF THE FIRST PART, ITS SUCCESSORS AND
ASSIGNS AND ALL PERSONS CLAIMING UNDER IT OR THEM, OF ALL RIGHTS,
INTERESTS OR CLAIMS IN OR TO THE SAID PREMISES, RIGHTS OR FRANCHISES
OR ANY PART OF THEM. AND THE SAID PARTY OF THE SECOND PART, AFTER
DEDUCTING FROM THE PROCEEDS OF SAID SALE, THE COSTS AND EXPENSES
THEREOF AND THE PROPER, FAIR AND LEGAL COMPENSATION TO BE PAID TO
THE PARTY OF THE SECOND PART FOR HIS SERVICES AS TRUSTEE UNDER THE

TRUST; AND IN CASE OF ANY SUCH TAKING POSSESSION OR PROCEEDING TO SELL THE MORTGAGED PREMISES FOR DEFAULT OF PAYMENT OF INTEREST

the said lines shall become frigible and before

ONLY, IF THE SAID PARTY OF THE FIRST PART BEFORE SUCH SALE SHALL BE MADE, SHALL PAY AND SATISFY ALL INTEREST THEN IN ARREAR ON ANY OF SAID BONDS, AND SHALL PAY AND DISCHARGE ALL COSTS, EXPENSES, DISBURSEMENTS AND COMPENSATION PROVIDED FOR BY THIS INSTRUMENT THEN AND THERETOFORE INCURRED BY REASON OF SUCH DEFAULT, THE SAID PARTY OF THE SECOND PART UPON EVIDENCE THERETO, TO HIS SATISFACTION, HALL THEREUPON DISCONTINUE SUCH PROCEEDINGS AND RESTORE POSSESSION OF THE MORTGAGED PREMISES TO THE SAID PARTY OF THE FIRST PART TO BE HELD SUBJECT TO THESE PRESENTS IN LIKE MANNER AS IF SUCH DEFAULT HAD NOT HAPPENED; AND IN CASE OF ANY SUCH TAKING POSSESSION OR PROCEEDING TO SELL THE MORTGAGED PREMISES FOR DEFAULT OF PAYMENT OF PRINCIPAL AND INTEREST, AND THE SAME SHALL BE SOLD FOR THE PURPOSE OF PAYMENT OF SAID PRINCIPAL AND INTEREST, THEN THE SAID PARTY OF THE SECOND PART SHALL APPLY SO MUCH OF THE PROCEEDS OF SUCH SALE AS MAY BE NECESSARY TO THE PAYMENT OF THE PRINCIPAL AND INTEREST DUE AND UNPAID ON ALL OF THE OUTSTANDING MORTGAGE BONDS ISSUED HEREUNDER; AND IN CASE THERE SHOULD NOT BE A SUFFICIENT AMOUNT OF THE PROCEEDS OF SAID SALE TO PAY ALL OF THE SAID BONDS, PRINCIPAL AND INTEREST IN FULL, THEN THE SAME SHALL BE PAID PRO RATA.

IT IS AGREED BETWEEN THE PARTIES TO THIS INSTRUMENT THAT THE SAID PARTY OF THE SECOND PART AND HIS SUCCESSOR OR SUCCESSORS IN SAID TRUST SHALL ONLY BE ACCOUNTABLE FOR REASONABLE AND PROPER DILIGENCE FOR THE MANAGEMENT THEREOF, AND SHALL NOT BE RESPONSIBLE FOR THE ACTS OR DEFAULTS OF ANY AGENT EMPLOYED BY HIM OR HIS SUCCESSOR OR SUCCESSORS UNDER THIS TRUST AND THAT THE SAID PARTY OF THE SECOND PART SHALL BE ENTITLED TO RECEIVE PROPER COMPENSATION

FOR ALL THE LABOR AND SERVICES PERFORMED AND EXPENSES AND DISBURSE-
MENTS AND DAMAGES INCURRED BY HIM IN THE DISCHARGE OF HIS TRUST;
AND IN CASE HE SHALL TAKE POSSESSION OF SAID PREMISES OR ANY PART
THEREOF, THAT HE SHALL NOT IN ANY MANNER BE LIABLE FOR ANY LOSS OR
DAMAGE WHICH MAY SHALL NOT HAPPEN BY HIS GROSS NEGLIGENCE OR WILFULL
MALFEASANCE.

AND THE SAID JAMES GILFILLAN DOES HEREBY ACCEPT THE
TRUST HEREINBEFORE PARTICULARLY MENTIONED AND SET FORTH AND PROM-
ISES AND AGREES TO EXECUTE THE SAME TO THE BEST OF HIS ABILITY.

IN WITNESS WHEREOF THE SAID DENVER AND EASTERN RAILWAY AND COAL
COMPANY BY ORDER OF ITS BOARD OF DIRECTORS AND UPON THE WRITTEN
CONSENT OF PERSONS HOLDING MORE THAN TWO THIRDS OF THE STOCK OF SAID
CORPORATION, ACTUALLY ISSUED, HAS HEREUNTO AFFIXED ITS CORPORATE SEAL
AND CAUSED THE SAME TO BE SIGNED BY ITS PRESIDENT AND SECRETARY.

AND THE SAID JAMES GILFILLAN HAS HEREUNTO SET HIS HAND AND SEAL THE
DAY AND YEAR FIRST ABOVE WRITTEN.

SIGNED, SEALED AND DELIVERED
IN PRESENCE OF,

WILLIAM H. CLARKSON.
CHARLES NETTLETON.

SAMUEL C. POMEROY
PRESIDENT.
DENVER & EASTERN RAILWAY AND
COAL COMPANY. (SEAL)

EDWARD W. AYRES. (SEAL)
DENVER & EASTERN RAILWAY AND
COAL COMPANY. (SEAL)

STATE OF COLORADO.

COUNTY OF ARAPAHOE. SS.

I HEREBY CERTIFY THAT THIS INSTRUMENT WAS FILED FOR RECORD IN MY
OFFICE AT 2 O'clock P.M. JULY 25 1883 AND IS DULY RECORDED IN BOOK

197 PAGE 421.

been made.

the braces my late fyiæ blockhead exhalation yane
the loss of the last fyiæ may be sufficient for us to
behave as of the other sections in the Lomami by the
place of 3300 acers. But since as far as been done in
140 fyiæ, Lytæ are about to move across to the other
Two halves were been a way to the degree of

each 3---lande 22.

each other as far as off the sections in the east and
South may come--and yane contract again as we go.

The Combaunt omits 3300 acres of sand, which

may be omitted after six feet of sand on the sea.

Found to be Combaunt in Lomami by Lytæ---lande 22
Gulf in an exhalation as collection to the Coast same as
Vicinity Combaunt---and located in the Gulf of Gleeck in the
middle below the Gulf of Peniel to the south side of
the Coast along the coast of the Gulf of Peniel on May 18th to
conclude a
which old collection made the same of the same state

THE DEMAND FOR EVALUATION AND CONT COMBINATION

["and by both hands, and held up by one arm and the other held in the air.\n\nThis sign means to stop and take a rest.", "When to be allowed to rest for a period of two hours:\n\n50 miles of navigation are allowed to be given to the coast\n\nDuring the first two hours of rest, 100 feet may be allowed.", "Time to be allowed to rest:\n\nAfter one hundred and one miles of travel.", "When the same amount of rest and rest periods are allowed to be given to the same number of ships in the same section, the same amount of rest is allowed for each ship in the same section, and the same amount of rest is allowed for each ship in the same section, and so on, and so on, and so on, and so

THE DENVER & EASTERN RAILWAY AND COAL COMPANY.

Duly organized under the laws of the State of Colorado, on the 4th day of May, 1883; to construct a railroad from the City of Denver to the east line of Arapahoe County; and located up Cherry Creek in said City, in an easterly direction, to the coal lands belonging to said Company in Township Three, range 65 west, about sixteen miles more or less.

The Company own 3300 acres of land, underlaid with coal; and have contracts and mineral rights secured in nearly all the sections in the said Township Three, range 65.

Two shafts have been sunk, to the depth of 140 feet. They are about two miles apart, upon this tract of 3300 acres. Boring has also been done in several of the other sections in this Township with the following results, which was uniformly met, in all the places where these practical experiments have been made. Thus it is seen that there is upon this tract, as in most of the coal deposits in that region, three veins; one above another. The Company, as seen in the above drawing, have opened one shaft to the depth of 140 feet; then by boring 130 feet farther they struck the lower vein of 13 feet in thickness.

They have also a similar shaft in section 28, about two miles from the one on section 17, as drawn above. This shaft shows the first two veins substantially as seen in section 17; and the lower vein in that shaft has not been attempted to be reached.

It will be seen by computation that these three veins of coal contain and will produce 300 tons to the square rod - -allowing 25 cubic feet to the ton, which makes 48,000 tons to the acre, and for one section of 640 acres over 30,000,000 of tons; and for the 3360 acres, which make five and one fourth sections, there are over 165,000,000 of tons, and on the lands where we have mineral rights and contracts for --- are, at this rate, **ONE THOUSAND MILLIONS OF TONS!**

Thus it is seen that these coal lands, (all within 20 miles of Denver) have an exhaustless body of coal lying in seams of 6, 9 and 13 feet in thickness; the lower vein being it is believed of very superior quality. And so far as ascertained by shafts and by boring, *underlying the whole tract of lands we own and occupy*.

Such a deposit of coal within sight of the City of Denver, makes it a most attractive investment for capital, and surely remunerative, for all money and labor bestowed.

Denver is becoming the best coal market in the west. It is developing rapidly-- the city alone consumes over a thousand tons daily; and besides the domestic consumption, the reducing-works, the city water-works and shops consume nearly as much more. There are seven lines of railroads entering the city, and others now projected; and upon the line of none of them can coal be produced at a lower cost than this Company can deliver it at Denver.

Mr. A.L.Sweet, Chief Engineer of the Chicago & Alton R.R., while making a personal examination of this route and the coal deposits, reported on the 26th day of July last as follows:

"That the route from Denver to the coal shafts was

"That the route from Denver to the cost analysis was
done should be based on the cost of a train as follows:

The cost of a personal examination to this route and the cost
of delivering it at Denver.

ML A.T. Sweet, Chief Engineer of the Chicago & Alton R.R.,
can deliver it at Denver.

then can cost be reduced so a lower cost than this Company
cost, and others now projected: and upon the line of none of
the lines now made. There are seven lines of traffic entering the
leagues—markets, the city market—markets and other commercial
and local markets: and besides the domestic consumption, the
to developing its traffic--the city alone commercial over a ton-
Denver to becoming the peak cost market in the West. If
commercialize, to all such markets and local markets.

make it a most attractive investment to all markets, and above
such a geoboard of cost within reach of the city of Denver.

Is this a good business?

fised by analysis and by computing, underlaying the whole cost of
this is
If it is believed to be very attractive, and so let us sacel-
aesma of 0. 6 and 13 feet in thickness, the low cost being
wrought at Denver) have an excessive load of cost lying in
the cost of Denver.

This is seen that these costs (all within so
this rate, ONE THOUSAND THOUSAND OF TONS:
where we have mineral lights and conductors to 100,000 tons,
sections, there are over 100,000,000 tons, and on the Isqna
of tons, and to the 3300 scales, which make live and one ton
for the scale, and to one section of 40 scales over 30,000,000
following so and so feet to the ton, which makes 48,000 tons
of cost, costain and will produce 300 tons to the adequate load -

It will be seen by combination that these three veine

"entirely feasible, being on an almost level prairie, "and that the cost of the road-buildings, machinery and "hoisting works at the shaft, (all save the rolling stock) "could be completed, ready for use, at an expense of "#218,000, and that the cost of mining and elevating the "coal - and loading the same on the cars - would not "exceed 75cts. per ton."

And allowing 25cts. (for the hauling 10 miles on a down grade) per ton, he estimates: "That this coal can be "delivered in Denver at a cost to the Company not exceed-ing ONE DOLLAR per ton."

This quality of coal finds a ready sale there at from three to four dollars per ton; and large contracts can be made at about these prices. And the Company, having its own means of transportation, cannot fail to regulate the price of coal for the Denver market.

This bituminous coal is of the same quality found at Boulder and other localities in Colorado; and used most en-tirely for domestic purposes, and exclusively for generating steam for all the uses of steam power.

The Smelting & Reducing Works at Denver also use this coal in large quantities, and upon the lines of railroads east to Kansas & Nebraska, these roads have no coal on their lines; and by them this coal market is rendered incalculable, for the supply must meet the demands of the settlements, for 250 to 300 miles, to the east, from the City of Denver.

Thus the market must always be good, and increasingly so.

Upon this whole franchise,---coal, lands, rights of way, road, road-bed, and rolling stock, "The Denver & Eastern Rail-

3

["\"Cost - and loading the same on the船 - would not\n\" \"and that the cost of mining and elevating the\n\" \"and that the cost of the load-piling bus, machinery and\n\" entirely separable, being on an stowage level,\"\n\"and that the

"way & Coal Company", have placed a mortgage of $500,000, to Hon. James Gilfillan of New York, (late Treasurer of the United States), as trustee, and prepared bonds of $500 each running thirty years, bearing 6 per cent interest, payable semi-annually at the American Exchange National Bank, N. Y., which are now offered for sale.

The proceeds of these bonds will be used entirely in further payments; for building and equipping the road, and paying for ties, lands and rights of way; which will all be covered by the aforesaid mortgage, making as we believe the safest and best railway security now offered to the public.

The following plat of Township Three, range 65, west; shows the location of our road, and the coal shafts already sunk upon the coal deposit, as shown in section 17, and section 28. Drifts have been cut through the vein on section 17, for over 1,000 feet, and a car-track laid to deliver the coal at the bottom of that shaft, on the middle vein.

Shipping of coal will immediately commence upon the completion of this road to Denver; where, at the Union Depot, it will connect with all the railroads entering the City; and also have its own depot, in a central locality, for the City supply.

Another vein of 13 feet, still lower down, was struck by boring. This is a vein of coal of very superior quality.

There is no water in mining - so far as the shafts have been extended.

["been extended.", "There is no water in mining - so far as the assets have\nbeing. This is a vein of coal of very inferior quality.", "Another vein of 13 feet, a still lower down, was struck by", "siaao have its own depot, in a central locality, for the City\nwill connect with all the railroads entering the City; and\nbination of the road to Denver; where, at the Union Depot, it\nsnapping of coal will immediately commence upon the com-\nbottom of that shaft, on the middle vein.", "1,000 feet, and a car-track laid to deliver the coal at the\nDrufta have been cut through the vein on section 17, for over\nupon the coal deposit, as shown in section 17, and section 18,\nthe location of our road, and the coalaults already mark", "The following list of Township Three, range of vein: show-\nses east and beat railway security now offered to the public.\ncovered by the storaesid mortgage, making as we believe the\nbuying for trees, fands and rights of way, which will all be\nfurther payments, for building and eddipping the road, and\nThe proceeds of these fands will be used entirely in", "which are now offered for sale.", "semi-annually at the American Exchange National Bank, N. Y.,\nrunning thirty years, bearing 6 per cent. interest, payable\nUnited States, as trustee, and prepared fands of $200 each\nto Hon. James Gillifan of New York, (late Treasurer of the\n\"ask & Cosl Company,\" have placed a mortgage of $200,000,", "and $200,000,000,000,000,000,