6

be refunded in the accruing freights of subsequent years,)
amounting to nearly one-half the whole cost, to aid the ex-
tension of its road from the head of Jennings' Run to Lona-
coning, ten and a half miles, the small concession of less than
one-third of one cent per ton per mile in transportation,
below the rates charged to all other parties at the period of
making the agreement, was made; and then only upon the
guaranteed daily quantity of six hundred tons. This agree-
ment was made in 1856, and the money supplied during the
following year, which was one of great severity in the money
market, and but for such aid, promptly rendered, the exten-
sion of the road would not have been consumated. This ex-
tension of ten and a halt miles, so made, enabled some seven
other coal companies to develope their property, which they
did with comparatively slight cost. The rates named in this
contract were at the period undoubtedly remunerative, and it
was within the ability of any other proprietor of coal lands at
that period to have had similar concessions in freight, if any
equal, or definite daily quantity, similarly guaranteed, had
been offered, but it was not asked for.

Second. In Oct. 1863, finding constant difficulties thrown in
the way of its business in fulfilling the American contract in
good faith, (for their mines were located 1 1/3 miles below Lon-
aconing, upon the line of railroad belonging to the George's
Creek Coal and Iron Company,) and believing an identity of
ownership of the two roads, would advance the general inter-
est, this company opened negotiations with the said George's
Creek Coal and Iron Company for the purchase of its 9 miles
of railroad, extending from Piedmont to Lonaconing, and
finally consummated the purchase upon the best attainable
terms. Coupled with the sale the George's Creek Coal and
Iron Company exacted the sole condition, of having the pro-
ducts of its mines transported over the 9 miles, to Piedmont,
at the (lien prevailing rates of two and a half cents per ton per
mile, common alike to the 9 miles of railroad so sold, and to
that of the Cumberland and Pennsylvania Railroad Com-
pany's line at the period of purchase. The effect to avoid
this condition which had no practical bearing at the time,
was made without results and believing that rate remunera-
tive, it was finally conceded in view of what were deemed the
more advantageous features of the purchase.

The extraordinary advance in the cost of opeiating, which
followed the fourth year of war, obliged this company to in-
crease its rates at all points where it was practicable to do so,
and hence the higher rates of charge imposed upon the coal
companies who had not aided the company in any manner,
and rendered absolutely necessary to keep up its way and
machinery.

Third. For and in consideration of heavy advances of
money, (to be refunded in the accruing freights of subsequent