THE
NE- W v YO  EJt K:
Steam Cable Towing Company.
CAPITAL STOCK, 8500,000.
FIRST MORTGAGE SINKING FUND PARTICIPATING GOLD BONDS.
0 Fi FI C E.
NO. 40 BROADWAY NEW YORK.
t OM  2 6.
ALBANY:
WEED, PARSONS AND COMPANY, PRINTERS.
1873.








OFFICERS
OF THE
New York Steam Cable Towing Co.
PRESIDENT:
JAMES A. BELL.
Late Auditor of the Canal Department of the State of New York.
VICE-PRESIDENT:
CHAUNCEY VIBBARD.
Late General iSuperintendent New York Central Railroad.
TREASURER:
JOSEPH T. BROWN.
SECRETARY:
EDMUND SAVAGE.
Qf the Canal Department, Albany N. Y.
GENERAL SUPERINTENDENT:
MADISON M. CALEB.
Of/ American Transportation Company, New York City.
TRUSTEES:
EMERSON FOOTE,                  HIRAM D. FAULKNER,
Of Vibbard, Foote & Co., N. Y. city.      New York city
HARRIS C. FAHNESTOCK,           JAMES A. BELL,
Of Jay Cooke & Co., New York city.   Dexter, Jefferson Co., N. Y
CHAUNCEY VIBBARD,               ADDISON M. FARWELL,
Of Vibbard, Foote & Co., N. Y. city.    Watertown, N. Y
PHILIP W. HOLMES,               TALCOTT H. CAMP,
New York city.    Pres. Jefferson Co. Nat. B'k, Watertown, N. Y
EDMUND SAVAGE,
Albany, N. Y.
EXECUTIVE COMMITTEE:
EMERSON FOOTE,               CHAUNCEY VIBBARD,
HARRIS C. FAHNESTOCK,   PHILIP W. HOLMES.
ATTORNEYS:
BARNEY, BUTLER & PARSONS,
Trinity Building, New York city.




PRINCIPAL OFFICE OF THE COMPANY,
NO. 69 NORTH PEAREL STREET.
ALBANY, N. Y.












OFFICE OF THE N. Y. STEAM CABLE TOWING CO., )
ALBANY, April 18t, 1873.
The introduction and rapid progress of railway transportation
within the last quarter of a century has, to a great extent, diverted
the public mind from the important services which our canals are
rendering to the commerce of our country,
With the slow process of animal towage, the canal traffic has
steadily increased from year to year until, in 1872, it reached 6,673,370 tons, which will nearly equal the combined freight traffic of the
New  York Central and Erie Railways. No stronger evidence
could be adduced to show that, however much our canals have been
neglected, they are still indispensable agents in the movement of
the large and increasing commerce between the Western States and
the city of New York,
It is, therefore, proposed to give to the public a brief description of our canals; the importance of their traffic; a description
of the cable systeml; a history of the organization of the NEW
YORK STEAM CABLE TOWING COMIPANY, and the method by which it
is proposed to obtain the additional capital necessary to carry out
the object of its organization.








THE NEW YORK CANALS.
THEIR CONNECTIONS AND COMMERCE.
THE canals and navigable rivers within the territory of the United
States of America furnish channels for transportation unequaled, in
extent and importance, by any country in the world. The canal
system of New York alone is one of the most stupendous and
important works of internal improvement of modern times. The
" Grand Erie canal," and its branches, furnish artificial channels of
water communication of nine hundred miles in length. And their
connection with rivers and small lakes, within the State, makes the
whole distance now navigated by New York canal boats nearly
thirteen hundred and fifty miles.
These inland channels connect, by the best and only feasible
route, the Atlantic ocean, at New York city, with some nine thousand miles of natural waters in the great northern lakes.  This
chain of lakes is also connected, by the Fox river improvement and
the Michigan and Illinois canal, with the waters of the Mississippi
river; thus affording an unbroken water highway from the Mississippi river, at two several points, to the American metropolis, and
thence to nearly every part of the world.
TI- ERIE CANAL - ITS DIMENSIONS AND LEVELS.
The Erie canal, the construction of which commenced in 1817, was
formally opened in 1825. It is three hundred and fifty miles long,
and, since the enlargement, seventy feet wide on the sarface, fiftysix feet at the bottom, and seven feet deep, with seventy-two locks,
nearly all of which have been doubled. It connects the Hudson
river at Albany and Troy with the waters of Lake Erie at Buffalo.
The length of the principal levels on the Erie canal, from Buffalo
eastward, is as follows:
2




10
From Buffalo to Lockport................................ 31 miles 0 locks.
"  Lockport to Rochester............................... 65  "  0  "
Pittsfo.d to Arcadia............................   27  "  2  "
"  Clyde to Geddes.................................. 40  " 2
"  Lodi to Frankfort...................... 64  "   1 "
"  Sprakers to Schollarie aqueduct............... 14  "  0  "
"  Lock No. 19 to Head of 16's.................9  "  0  "
Total................................................ 250  "  5  "
TIME IREQUIRED FOI LOCKAGE.
The time consumed in passing boats through the locks depends,
to some extent, upon circumstances. For instance, the lifts are
unequal, varying from six to twelve feet, and, as a general rule,
heavily-laden boats require more time than light boats, and more
time is consumed in passing a boat through a lock in the night than
in the day time.
ITS CAPACITY.
The capacity of a canal is determined by the number of lockages
that can practically be made in a definite time.  The locks upon
the Erie canal have never received the attention to which they are
entitled, being indifferently manned, and without proper mechanical auxiliaries. It has been shown by frecluent tests that a boat can
be passed in four minutes, to wit:
For boat to enter lock, snub and shut the gates................ 1~ minutes.
To open valves, and empty the lock..............1.............. 1 "
To open the gates and get the boat out.......................... 1 
Total average time consumed.............................. 4 minutes.
This result would give 360 lockages in twenty-four hours, at a
single lock, and 720 at double locks, calling the movement from
tide, one-seventh of the tonnage going to tide water and the average
length of the season of navigation 230 days; it would make the
annual capacity of the Erie canal equal to 9,360,000 tons with single
locks, and 18,720,000 tons with double locks.
CAPACITY OF BOATS — MODES OF TOWAGE.
The boats now navigating this canal carry from  200 to 250 tons
burden, and are towed by animal power, at an average speed of
about one and a half miles per hour, including lockages.  The
towing of boats is managed in accordance with the interests or
inclination of the owners. In most cases the owner of a boat keeps
two teams, one of which is carried in a small stable in the bow of




11
the boat, while the other is at work on the tow-path. These teams
are changed at regular intervals, thus keeping the boat moving, day
and night, to the end of the trip.  The expense of keeping these
teams, at Troy or Albany, while the boat is towed by steam to New
York and back, is a serious drawback on the earnings of the season.
To avoid this, and keep the animals constantly at work, towing
companies have been formed, and stations established at suitable distances along the canal, with the necessary number of teams to tow
such boats as may choose that method.  The cost of towing a boat
in these " lines" varies from thirty-five to forty-five cents per mile.
It, occasionally reaches fifty cents near the close of navigation.
HoRSE TOWAGaE- TIME REQUIRED.
The official reports from the Canal Department state that for the
last ten years the average time consumed in towing a boat from
Buffalo to Troy or Albany, by animal power, is ten days. Boats
of the largest class, however, more frequently require twelve days.
The following statement will more definitely express actual results.
Boats running day and night require:
From Buffalo to Syracuse................1............ 186 miles.  5 days.
"  Syracuse to Utica.................................. 56  2 "
"  Utica to West Troy................................ 103  "    4
From Buffalo to West Troy......................... 345  "   11
Instances have occurred in which boats have been "timed" at
eight days, but the above is believed to be better time than boats
average during the season.
CANAL NAvIGATION   LENGTH OF SEASON.
For several years past the New York canals have not been opened
for navigation until firom the 6th to the 10th of May, and they have
been officially closed during the first week in December, the official
season of navigation averaging from  212 to 214 days.  From
unforeseen causes of interruption, it may not be safe to count on
over 200 days.
THE COMMERCIAL IMPORTANCE OF THE CANALS.
An estimate of the business now done on these canals may be
made from official reports. The register shows that there are 6,8T0
boats, with a carrying 6apacity of 1,225,000 tons.  The amount of
freight transported annually averages about 6,000,000 tons. In 1S65
the total movement was 6,442,225 tons, or 1,033,751,268 tons moved




12
one mile, at a cost of 88-100 of a cent per ton per mile, against a
total movement, on the Nrew York Central and the Erie Railways,
of 5,754,842 tons, or 961,899,011 tons moved one mile, at an average
cost of 24-6 cents per ton per mile, or nearly three times the cost
of canal transportation. On the tonnage of that year the canals
received, from freight and tolls, $9,012,659, against $20,917,166
charged for freight on the tonnage of said railways. For several
years previous to 1870 the gross revenues of the canals have
averaged $4,250,000, and the annual average cost of collection and
repairs has been about $1,250,000, leaving a net revenue to the
State of $3,000,000.
The amount of freight transported over our canals in 1872 was
6,673,370 tons. With a more certain and expeditions system  of
towage this tonnage could -be largely increased.
AN IMPROVED SYSTEM OF TOWAGE REQUIRED — DIFFICULTIES HAVE
ATTENDED ITS INTRODUCTION.
Canal navigation in this country has not kept pace with the improvements of the age. It is a remarkable fact that the same slow process
of animal towage which was inaugurated nearly fifty years ago is still
exclusively employed in the movement of boats upon the New York
canals.  One of the principal arguments used in favor of the enlargement of the Erie canal to its present grand dimensions was, that a
"canal of seventy feet width and seven feet depth of water would
afford a splendid chance for the propulsion of boats by steam."
Various attempts have been made to supersede this slow and vicious
system, by the use of the side wheel and screw propeller. But, thus
far, all such attempts have ended in technical and commercial
failures. The want of success in the use of steam in the propulsion
or towage of boats upon canals is mainly attributable to the excessive loss of power which is unavoidable in the use of a screw, or, in
fact, any other propeller working in the receding waters of a narrow
and shallow channel.
Numerous other inventions intended to remedy the defects of the
ordinary propeller have been and are being tried with no other result
than to ascertain their utter want of adaptation to this peculiar navigation.
Hence the horse and the mule, with their wretched drivers, are
still seen toiling along the tow-path as they did a half century ago,
while the increasing facilities of the railways- are daily diminishing
the once prosperous traffic of the most natural and cheapest highways of commerce.




13
THE CABLE SYSTEM - THE ONLY PRACTICAL REMEDY.
The system of steam cable towage has been in successful operation
upon the canals and rivers of France, Belgium, Holland, Austria,
Russia and other European countries for several years. The principle involved in this system was first introduced upon the river
Seine, in France, some ten or fifteen years ago, for towing freightboats between IHavre and Paris. The process was there performed
by the use of a submerged chain, with links about eight inches long.
This chain was placed over or round a cog-wheel attached to the
engine. The cogs were made oblong to fit the links of the chain
and prevent it from slipping. But the invention of Fowler's clip
drum allows the use of a wire cable, instead of the cumbrous chain,
which largely reduces the cost, and increases the efficiency of this
method of towage. The system has since been so much simplified
and perfected that it is now being used upon most of the principal
canals and rivers on the continent of Europe.
The system is simple, consisting of a wire cable laid on the
bottom of the canal through its entire length, and fastened at the
two extreme ends; and a steam tug or tow-boat, provided with an
additional engine, to which is attached a clip-drum, or grooved
driving wheel, with suitable guiding and tightening pullies. Thus
equipped, and the boats to be towed made fast to the tug, the process
of towing is performed by lifting the cable from the bottom of the
canal by means of a grapple, and placing it over the clip-drum.
This drum is then put in motion (turned) by machinery in the tug,
causing the cable to pass over it without slipping, and fall back again
into the canal at the stern,of the tug. Thus the tug is drawn along
the cable, and consequently through the canal, with the same facility
that a locomotive is drawn on the rails, with this difference: the
rail is stationary and the locomotive wheel passes over it, while the
cable is flexible and pacsses over the drum. The tugs used, and the
boats towed thereby, can be passed through the locks with the same
facility as those towed by animal power. The immense commerce
of the Erie canal will require two cables -one for the i~p, and
another for the down boats.
The great advantage of this system over all methods hitherto
tried for the towage of boats by steam is, that there is no slip or
waste of power, the whole force of the engine being exerted upon
the cable.
In the autumn of 1869 ADDIsoN MI. FARWELL, of Watertown,
N. Y., visited Europe to witness the operation of this system of




14
towage upon the canals and rivers of France, Belgium and Germany,
with a view of introducing it upon the canals and rivers of this
country. After making a most thorough and critical examination
of the system, and witnessing its operation under almost every
conceivable circumstance, he returned deeply impressed with its
great superiority over any plan yet devised for the propulsion of
boats upon the canals of this continent. Upon his report and application the Legislature passed an act, chapter 576 of the Laws of
1870, authorizing him, his associates and successors, to form a corporation under the "general act," for the introduction  of the
European system of steam towage upon the canals of this State.
Said act gives himl, his associates and successors, the exclutsive right
and privilege to submerge, or place one or more chains or cables on
the bottom of the canals of this State, and use the same in the
propulsion or towage of boats -or floats thereon for pay or hire.
The act also imposes a severe penalty upon any person who may
meddle with or disturb such chains or cables, or obstruct, interfere
with or detain the boats rightfully using them, or towed thereby.
It also exempts the tugs and the machinery connected therewith,
together with the necessary fuel, from the payment of tolls. This
system is subject to the rules and regulations of the Canal Board,
with the usual clause for its modification.
The Canal Board also amended the regulations for navigating
the canals, and gave to boats towed by steam a preference at the
locks.
PATENTS SECURED.
The clip-drum and other portions of the machinery used in tfle
propulsion and towage of boats upon canals and rivers by this
system have been patented in Europe and the United States. Mr.
FARWELL, by contract with the patentees, secured the right to use
the same upon the canals of the State of New York, and subsequently transferred all the rights thus acquired to the New York
Steam Cable Towing Company.
In the spring of 1871 orders were sent to Europe for the construction of six miles of steel wire cable, one inch in diameter, an engine,
Fowler clip-drum, and other necessary machinery.  In the mean
time a tug, or tow-boat, of seventy-five feet keel and fourteen feet
beam, had been built in this country, after plans obtained from Belgium. Upon the arrival of the machinery it was readily placed in
position, and the cable laid in the Erie canal between Albany and
West Troy.




15
BENEFITS OF THIS SYSTEM OF TOWAGE ON THE CANALS.
Benefits to Commnerce.
No argument will be necessary to convince the most superficial
observer that the employment of steam in the towage of boats will
infuse new life and activity in all connected with the canals. Its
quickening influence will be felt all along the line, from the lock
tenders to the highest official.
This system will enable boats to make twice the usual number of
trips in a season.  It will double their earnings, and practically
double the equipments and capacity of the canals.  By furnishing a
more reliable and expeditious method of transportation, it will offer
greater inducements to shippers to patronize the canals and thus
increase their traffic.
The advantage of this system  will further appear by comparing
the cost thereof with the cost of the present method of towage. It
will not only diminish the time, but it will reduce the cost of
transportation. Hitherto no process has been invented that can tow
boats on canals so cheaply as animal power.  For a series of years
past animal towage has cost from  thirty-five to fifty cents per boat
per mile. During the season of 1871, the price ruled from 35
to 40 cents per mile. Therefore, the aggregate cost of towing a
boat the whole length of the Erie canal, 350 miles, at, say, thirtyfive cents, is $122.50.
By the steam cable system it is confidently believed that boats
can be towed through the canal, with double the speed, at a greatly
reduced cost. For example: one tug will haul six canal boats at a
uniform speed of three miles per hour.
The cost of running the tugs for twenty-four hours may be stated
as follows:
Two tons coal at $6.......................................... $12
One captain     3........................................  3
Two engineers    3..6....................    6
Two wheelsmen  2..........................................  4
Two deckhands  1.50.......................................  3
Board of 7 men   1...................................   7
Oil, incidentals, etc.........................................    5
$40




16
Then, if six days be allowed for making a trip, the cost of towing
six boats through the Erie canal, by this system, will be only $240
against $122.50 for one boat by animal towage.
Of course, interest on capital, wear and tear of machinery, and
unforeseen contingencies, will increase the cost of steamh cable
towage considerably above these figures, but it will be seen from the
above comparison that there will be an ample margin left for
profits, after providing for all such expenses.  It is, therefore,
believed, that, in addition to the great commercial benefits which
an accelerated movement will confer, this system of steam cable
towage will reduce the cost of transportation on the canals much
below the rates now paid for animal towage.
Benefits to th/e State.
Any system of towage that will increase the commerce of the
canals will benefit the State; and a system that will double their
commerce, or even increase it fifty per cent, will not only largely
benefit this State but all the States lying east and west of us. With
the present toll-sheet, the employment of this system  would supply the means for paying the balance of the State debt in half
the time possible under the present system, or tolls could be again
reduced one-half and furnish the present amount of revenue.
This system of steam  cable towage will not only increase the
revenues whiich the State would receive from tolls omn an increase
of tonnage, but it would decrease the cost of taking care of the
canals. The complete adoption of this system would render any
further repairs upon the tow-path unnecessary.
But few persons are aware of the amount of money annually
expended by the State in keeping up the tow-paths and. change
bridges. A carefully prepared statement of the expense of maintaining these structures, for the year 1870, shows that they cost
the State over $18,000Q.
THE CITY OF NEW YORK LARGELY INTERESTED IN THE SUCCESS OF
THIS ENTERPRISE.
Aside from the advantages afforded'by this system as a means for
profitable investment, there are other considerations of public interest which should not be lost sight of, and in regard to which New
York should not be indifferent.
Powerfnl combinations are already formed, and forming, to divert
this western commerce to other Atlantic cities.  It can only be




17
retained and increased by a more certain, cheap and expeditious
system of towage on our canals.
The city of New York, now first in population, wealth and commerce, owes that proud position to the Erie canal. Take away or
neglect that artery of commerce and other Atlantic cities, by means
of their railway combinations, would soon gain the ascendancy, and
command the trade of the West.
Shipments made in the West by rail are diffused to all parts of the
Atlantic seaboard, while those by water find but a single outlet, by
way of the lakes, Erie canal and Hudson river to New York.
The city of YNew York is largely interested in the success of this
enterprise. She owes her vast wealth and commercial supremacy to
the Erie canal. Should the traffic of the great west be diverted
from this artificial channel it would reach the seaboard at other
points, and New York would be compelled to yield her proud position to her southern rivals.
THE NEW YORK STEAM CABLE TOWING COMPANY.
This Company was organized under the general and special laws
of the State of New York, on the 1st day of November, 1S71.
Its object is to introduce and operate an improved system of Steam
Towage upon the canals of this State. To aid in the accomplishment of this object, the legislature has conferred upon this Company
the exclutsive right to use the European system of Steam  Cable
Towage upon the canals for a period of fifty years.
The adaptation of this system to the towage or propulsion of
boats upon our canals, and its superiority over all other methods of
Canal Towage, have been fully established. In addition to its use for
many years in Europe, this Company has s'8ccessfsdly operated two
steam tugs on some thirty-one miles of single cable, in the towage of
canal boats last fall, on the Erie canal, between Buffalo and Lockport, and now propose to procure the means necessary to complete
the equipment of this level with a double line of cable and the
requisite number of tugs, and to extend the same to Rochester, a
distance of ninety-six miles in all.
It appears, from the official returns in the Canal IDepartment,
that the number of boats leaving Buffalo daily during the season of
navigation  averages forty-five, nearly three-fourths of which clear
to tide water. Hence, it will require six tows of six or seven boats
each, and making a round trip daily, to do the business between
Buffalo and Lockport.
3




18
The distance between Lockport and Rochester is sixty-five miles,
or double the distance from Buffalo to Lockport, and will, therefore,
consume twice the time in making a trip, and require double the
equipment. To provide in part the funds requisite for this equipment, the New York Steam Cable Towing Company has executed,
and delivered to the New York Guaranty and Indemnity Company, of the city of New York, $8)0,000 of its first mortgage
six per cent bonds, payable in gold in ten years from the first day
of April, 1873, interest payable in gold, semi-annually, on the first
days of October and April, and pcarticmipcatinc zwith the stockc in the
nbet eaCrnings of said (onryany to the extent of' Can additional six
per cent in gold.
To secure the payment of these bonds and the interest thereon,
as the same becomes due and payable, the New York Steam Cable
Towing Company has duly executed and delivered to the New York
Guaranty and Indemnity Company, as required by law, a mortgage
or deed of trust upon all the rights, privileges, franchises and property which the Towing Company now owns, or nmay acquire on,
or pertaining to that portion of, the Erie canal.
2No one familiar with the immense conzmerce of the Erie canal,
the superiority of our system of towage, comprising tile most practical and economical application of steam power, and the value of the
property, rights, privileges and franchises which this Company has
pledged to secure the payment, of these bonds, can doubt the sufficiency of this security. The State has virtually placed the entire
commerce of her canals in the control of this Company. For all
practical purposes, this Company has the same control over the Erie
canal, for the working of this system, that it could have were it the
owner of the canal in fee. Nor do the benefits end here.
In addition to the free use of the immense amount of capital
which the State has expended in the construction of these canals,
they are kept in repair, and the locks attended at the expense
of the State. Again, if a mortgage on the rights, privileges,
firanchises and property of a Company holding a valid and undisputed
charter to lay tracks and operate a railroad in any section of country
or in the streets of New York city, with a guaranteed annual tonnage of six million tons, would be considered a sufficient security
for the funds necessary to provide the rails and rolling stock - then,
equally sufficient is the security now offered by this Company to
secure the bonds necessary to obtain the means to purchase the
cable or furnish the tugs.




IN CONCLUSION.
The character of the security which this Company offers to parties
who may invest their money in any of the stocks or bonds which the
Company may issue may be briefly stated as follows: State Engineer
RICHIMOND, in his report to the Legislature in 1871, estimates the
cost of the construction and equipment of the canals at $80,710,832.
The Erie canal alone, without equipment, as it stands this day, has
cost the State over $40,000,000.  These canals are also kept in
repair and the locks tended at the expense of the State. In addition to this large outlay of money by the State, individual capital
has stocked these canals with nearly 7,000 boats of sufficient capacity
to carry, with the present method of towage, over 10,000,000 tons
in a single season. Nor is this all. The success of this enterprise
does not depend upon a doubtful or uncertain traffic to be built up.
The commerce of these canals has, for the last ten years, averaged
nearly 6,000,000 tons per annum.  By virtue of its charter and
certificate of organization, this Company has the exclu~sive right to
tow or propel boats by this system  upon the canals for fifty years;
consequently, this system  being so much superior to animal towage
as to command the business, doing it cheaper and with greater
dispatch, this Company has the benefits of this large expenditure
for the construction, equipment and maintenance of these canals as
a basis of credit on which to borrow the money necessary to lay
the cable and supply the tugs. The pledge of the earnings of this
system of towage should be ample security for the money necessary
to put it upon the canals.
BUFFALO AND ROCHESTER LEVELS.
DISTANCE, NINETY-FIVE MILES.
The following is an estimate of the annual business of the two
levels it is now proposed to equip, based upon a charge of thirty
cents per mile, or much less than the rates charged for animal
towage:
Earnings on the BmBqfalo and Rochester Levels.
BUFFALO LEVEL.
(Horse-towing Company's charge, is 35 cents, and upwards, per mile.)
Forty boats each way for 200 days (length of season) - from Buffalo
to Lockport, 31 miles.
40 boats, at 30 cents per mile for 31 miles, is, per day..    $372 00
200 days, at $372.............................  $74,400 00
Return trips....................................   74,400 00
Earnings from Buffalo to Lockport..........................  $148,800 00
Carried forward.................................. $148,800 00




20
Brought forward...........................................  $148,800 00
ROCHESTER LEVEL.
Forty boats each way for 200 days —from  Lockport to Rochester,
64 miles.
40 boats, at 30 cents per mile, for 64 miles, per day....     $768 00
200 days, at $768................................. $153,600 00
Return trips....................................   153,600 00
Earnings from Lockport to Rochester.........................  807,200 00
Total earnings for both levels............................ $456,000 00
EXPENSES.
I8 boats, at $40 per day, is $720, and for 200 days.................. $144,000 00
Net earnings............................................  $312,000 00
Deduct for depreciation..........................  $35,000 00
Deduct for royalty...................................   13,850 00
Deduct 12 per cent gold, or say 14 per cent currency on
$800,000 of bonds for interest and participation in
profits............................................    112,000 00
-  _-  160,850 00
Leaving for Sinking Fund and dividends on common stock..... $151,150 00




APPENDIX.
Copy of the law authorizing the employment of this system of
towage upon the canals of the State of New York.
CHAPTER 576, LAWS OF 1870.
AN ACT to provide for the introduction of the European system
of steam towage upon the canals of this State.
PASSED May 2, 1870; three-fifths being present.
The People of the Slate of New York, represented in Senate and
Assembly, do enact as follows:
SECTION 1. Permission is hereby granted to ADDISON M. FARWELL, of Watertown, New York, his associates and successors, who
may organize a corporation under the act entitled "An act to
authorize the formation of corporations for manufacturing, mining,
mechanical and chemical purposes," passed February seventeen,
eighteen hundred and forty-eight, and any act or acts amendatory
thereof, to introduce upon the canals of this State the "European
system " of steam towing.
~ 2. The said FARWELL, his associates and successors, who shall
organize as provided in previous section, are hereby authorized and
empowered to tow boats, floats and cargoes on the canals of this
State, for hire, and for that purpose may purchase and construct, or
cause to be constructed, the necessary appliances for carrying on the
business of canal towing, under the said European method, and
shall have the exclusive right and privilege, during the term for
which said corporation may be organized, to submerge or place one
or more chains or cables on the bottom of the canals of this State,
and attach the same thereto in such manner as will not interfere
with navigation; and shall have the exclusive right to use such submerged chains and cables, designated and known as the European
system, in the prosecution of the peculiar method of towing thereby.
And whenever and wherever it may be necessary so to do, the said
FARWELL, his associates and successors, or corporation aforesaid, are
hereby authorized and empowered to own and employ other motive




22
power in connection with said chain or cable process, provided the
same shall not interfere with navigation.  Nothing, however, in
this section contained shall be construed as excluding other parties
from the right or privilege of propelling or towing themselves or
others by the agency of steamboats, propellers, elevated railway or
animal power, but simply to vest in the said FARWELL, his associates and successors, or corporation organized as aforesaid, the
exclusive right to lay and use chains or cables in the prosecution of
the European system of towing thereby.
~ 3. Any person who shall meddle with or disturb the chains or
cables, authorized to be laid under this act, with intent to injure the
same, or in any manner to embarrass the operation thereof, or any
petrson who shall willfully obstruct or interfere with boats rightfully
using said chains or cables, or towed thereby, shall be deemed guilty
of a misdemeanor, punishable by fine or imprisonment, the fine not
to exceed $200, and imprisonment not to exceed three months.
And any person who shall willfully injure the chains or cables as
aforesaid, or by other improper conduct shall detain the boats rightfully using said chains or cables, or being towed thereby, shall be
liable to the parties aggrieved for all damages occasioned by said
injury or detention.
~ 4. The tugs, with machinery connected therewith, employed by
said FARWELL, his associates and successors, or corporation aforesaid,
in the prosecution of towing, together with the fuel necessary to
the voyage, carried thereon, shall be exempt from the payment of
tolls.
~ 5. In case said FARWELL, his associates and successors, or corporation aforesaid, shall neglect or fail to introduce said system of towing on the Erie canal within eighteen months after the passage of
this act, all rights and privileges herein granted shall cease.
~ 6. Nothing herein contained shall be construed to exclude the
system of towage hereby authorized from the supervision and control of the Canal Board, but the same shall be subject to all the
rules and regulations from time to time established by the Canal
Board for the navigation of the canals.
~ 7. The Legislature may at any timre alter, modify or repeal this act.
~ 8. This act shall take effect immediately.
STATE OF NEW YORK,  e
Office of Secretary of State. S'
I have compared the preceding with the original law on file in this office, and
do hereby certify that the same is a correct transcript therefrom and of the
whole of said original law.
HOMER  A. NELSON,
Secretary of State.




23
CHAPTER 93, LAWS OF 1872.
AN ACT to confer additional powers upon the New York
Steam  Cable Towing Company, a corporation organized
pursuant to the requirements of chapter five hundred and
seventy-six of the Laws of eighteen hundred and seventy,
and to authorize said company to issue the preferred stock
and bonds thereof.
PASSED March 8, 1872; three-fifths being present.
The People of the State of Nvew Yorlc, represented in Senate and
Assembly, do enact as follows:
SECTION 1. In addition to the powers and privileges conferred upon
ADDISON M. FARWELL, his associates and successors, by act chapter
five hundred and seventy-six of the laws of one thousand eight
hundred and seventy, entitled "An act to provide for the introdclction of the European system of steam towage upon the canals of this
State; " the New York Steam Cable Towing Company, a corporation
duly organized in conformity with the provisions of "An act to
authorize the formation of corporations for manufacturing, mining,
mechanical and chemical purposes," and the several acts amendatory
thereof, as provided in the aforesaid act first mentioned, shall have
power to build, purchase, import, own, charter, equip and furnish all
such boats, tugs, towers, chains, cables and other machinery and
apparatus as may be necessary to apply and operate the said European
system in the towage and propulsion of boats and floats upon the
canals of this State, subject to the approval, in all cases, of the Canal
Board. The New York Steam Cable Towing Company may also
purchase, own, hire, lease and convey such real and personal property
as may be necessary in the execution of the business contemplated in
its charter and certificate of incorporation.
~ 2. Whenever the written assent of the stockholders owning at
least two-thirds of the capital stock of the company shall have been
obtained and filed, as hereinafter provided, the trustees of said company may, for the purpose of procuring the means necessary for
equipping the canals with the system of steam cable towage, issue the
preferred stock of the company, and make and issue the bonds of said
company, and secure the same by mortgage of the franchises of said
company, and also of all or any part of its real and personal estate;
and every such mortgage shall, to all intents and purposes, be as valid
as if executed by an individual owning such real and personal estate.
Such assent shall be filed, and every such mortgage shall be recorded,
in the office of the clerk of the county where the principal office of the




24
company is located. And it is hereby declared that such filing and
recording shall be a sufficient compliance with the laws on this subject, except as to mortgages upon the real estate of said company,
which shall be recorded as now provided by law.
~ 3. This act shall take effect immediately.
STATE OF NEW YORK, I 
Office of Secretary of State.
I have compared the preceding with the original law on file in this office, and
do hereby certify that the same is a correct transcript therefrom, and of the whole
of said original law.
Given under my hand and seal of office, at the city of Albany, this eighth
[L. s.] day of March, in the year one thousand eight hundred and seventytwo.
G. HILTON SCRIBNER,
Secretar'y of State.
CERTIFICATE OF INCORPORATION.
"STATE OF NEW  YORIK, as'8
COUINTY OF ALBANY,
Be it known that we, ADDISON M. FARWELL, of the city of Watertown,  N. Y.; JAMEs A. BELL, of the village of Dexter, N. Y.;
HIRAM D. FAULKNER, of the city of New York, and EDMIUND SAVAGE,
of the city of Albany, N. Y., do, by these presents, pursuant to, and
in conformity with, the act of the Legislature of the State of New
York, passed on the seventeenth day of February, one thousand
eight hundred and forty-eight, entitled "An act to authorize the
formation of corporations for manufacturing, mining, mnng echanical or
chemical purposes," and the several acts of the said Legislature
amendatory thereof, associate ourselves together and form a body,
politic and corporate, under the name and style of "The New York
Steam Cable Towing Company,"' and the following are declared to be
the corporate name of the said company; the objects for which the
company is formed; the amount of the capital stock of the said
company; the term of existence of the said company; the number
of shares of which the capital stock of the said company shall consist; the number of trustees, and their names, who shall manage the
concerns of the said company for the first year; the name of the
town and county in which the principal part of the business of the
said company, within this State, is to be transacted.
FIRST. The corporate name of the said company is hereby declared
to be " The New York Steam Cable Towing Company."
SECOND. The objects for which the said corporation is formed are
as follows: For the purpose of introducing and operating, upon the




canals of this State, the European system of steam cable towage;
and constructing, purchasing, importing, owning, using and operating tugs, boats, vessels, cables, chains, machinery and other motive
power and appliances to be used, employed and operated for pay
and hire in the propulsion and towage of boats and floats, and
for the purpose of complying with and carrying into effect the provisions and franchise of act, chapter 576 of the Laws of 1870, entitled
" An act to provide for the introduction of the European system of
steam towage upon the canals of this State."
THIRD. The capital stock of the said corporation shall be $25,000,
which shall be divided into two hundred and fifty shares of $100
each.
FOURTH. The said corporation shall commence on the first day of
November, in the year one thousand eight hundred and seventy-one,
and shall continue in existence for the term of fZfty years.
FIFrII. The number of trustees of the said corporation shall be
seven, whose names are as follows, and who shall manage the concerns of the said corporation for the first year: ADDISON M. FAR
WELL, DAVID W. BALDWIN and ISAAC H. FIsic, of the city of Watertown; JAMES A. BELL, of the village of Dexter; EDMUND SAVAGE,
of the city of Albany; HIRAM  D. FAULKNER and EMERSON FOOTE,
of the city of New York - all of the State of New York.
SITITH. The principal place of business of the said corporation
shall be in the city of Albany, in the county of Albany, and State
of New York.
ADDISON M. FARWELL, Watertown, N. Y.
JAMES A. BELL, Dexter, 1N. Y.
HIRAM D. FAULKNER, [New York city.
EDMUND SAVAGE, Albany, N. Y.
CITY AND COUNTY OF ALBANY, 88:
On the 1st day of November, 1871, before me personally appeared
ADDISON M. FARWELL, JAMES A. BELL, HIRAM D. FAULKINER and
EDMUND SAVAGE, to me well known to be the persons described in
and who executed the above instrument, and each, for himself,
acknowledged the execution of the same, for the use and purposes
therein mentioned.
H. C. SoUTHwICK, Jr.,
X                  Conz. of Deeds, Albany Co.




26
At a subsequent meeting of the trustees the following officers
were elected: JAMES A. BELL, President; ADDISON M. FARWELL,
Treasurer; EDMUND SAVAGCE, Secretary.
The company has since increased its capital stock to $500,000,
and also increased the number of its trustees to nine in accordance
with the provisions of law.
COPY OF BOND.
No....                                                  $1,000.
UNITED STATES OF AMERICA.         STATE OF NEW  YORK.
Six per cent Gold, Sinking Fund and Participating Bond of
THE NEW  YORK STEAM  CABLE TOWING COMPANY.
Incorporated November 1, 1871.                    Whole issue $800,000.
SECURED BY FIRST MORTGAGE
Upon its Franchises and Property pertaining to the Buffalo and Rochester Division of the Erie canal.
THE NEW YORK STEAM CABLE TOWING COMPANY, a corporation formed and
existing under the general and special laws of the State of New York, is indebted
to      in the sum of One Thousand Dollars, which the said company promises
to pay in gold coin to the registered owner hereof on the first day of April in the
year one thousand eight hundred and eighty-three, together with interest thereon
from and after the date hereof, at the rate of six per centurn per annum, payable
semi-annually in gold coin at the banking house of the New York Guaranty and
Indemnity Company, in the city of New York, on the first day of April and October in each year.
If default shall be made in the payment of any interest of this bond, and if
default shall continue for the period of six months, and if such interest shall be
afterward demanded at the place where the same is payable, then, on any failure
to pay such interest so demanded, the whole principal of this bond, and of all
other bonds of the same series which shall have been issued, and shall then be
outstanding shall thereupon be and become forthwith due and payable, any thing
herein contained to the contrary thereof notwithstanding.
This bond is one of a series of eight hundred bonds of the same tenor and
date, and numbered consecutively from one to eight hundred both inclusive for
the sum of one thousand dollars each, and amounting in the aggregate to eight
hundred'thousand dollars. The payment of the principal and interest of all of
said bonds is alike and equally secured by a mortgage or deed of trust, bearing
even date herewith, made, executed and delivered by this company, to the said
The New York Guaranty and Indemnity Company, upon all the real and personal
estate, boats, towing cables, franchises, business, profits and property of this
company acquired or to be hereafter acquired, being in the use or possession, or
to come into the use or possession of this company or in any wise appertaining to its business of Cable Towing by steam upon the two levels of the Erie
canal from Buffalo to Lockport and from Lockport to Rochester, in the State of
New York, as particularly expressed in said mortgage.
This bond is entitled to the benefit of a Sinking Fund of ten per centum of the
net earnings of the company to be deposited annually on the first day of April
with the trustee, as provided in and by said mortgage. And the owner of this
bond is also entitled on the first day of every April hereafter to a pro';ata participation in all such net earnings of this company as shall be realized from its




27
business upon the two levels aforesaid during the year ending the thirty-first day
of the previous December, after deducting therefrom interest on this issue of its
bonds and ten per centum  for the sinking fund, such participation to be
equal to one-half of said net earnings to the extent and amount of six per
centum per annum on the amount of the principal of this bond. And this company hereby binds itself to pay such additional six per centum or so much thereof
as shall be realized as aforesaid in gold coin at the banking house of The New
York Guaranty and Indemnity Company on the first day of every April hereafter
until this bond is paid.
This bond shall pass only by assignment indorsed hereon and by transfer on
the books of the company in the city of New York, which transfer books the company may close during the fifteen days next preceding the date herein fixed for
the payment of interest.
IN WITNESS WHEREOF, the said The New York Steam Cable Towing Company
has caused its corporate seal to be hereunto affixed, and these presents to be subscribed by its President and attested by its Secretary, and to certify that the said
trustee is possessed of the said mortgage, and that this bond is one of the said
eight hundred bonds, secured thereby, the said The New York Guaranty and
Indemnity Company, as trustee has, by its President, countersigned this bond the
first day of April, in the year of our Lord, one thousand eight hundred and
seventy-three.
[L. s.]                                            President.
Secretary.
Countersigned, The New York Guaranty and Indemnity Company,
Tr.us tee.
By                    President.
COPY OF TRUST DEED.
THIS INDENTURE  made the first day of April, in the year
of our Lord one thousand eight hundred and seventy-three, BY
and BETWEEN THE NEW YORK STEAM CABLE TOWING COMPANY,
a corporation duly organized and existing under and by virtue of the
several laws of the State of New York, hereinafter snore particularly mentioned, party of the first part, and THE NEW YORK GUARANTY AND INDEMNITY COMPANY, a corporation duly organized and
existing under and by virtue of the laws of said State, and having
its banking house or place of business in the city of New York,
party of the second part, WITNESSETHI  as follows, viz.:
WHEREAS, The People of the State of New York, by a certain
act of their Legislature, passed lMay 2, 1870, entitled "An Act to
provide for the introduction of the European system of steam towage upon the canals of this State." and known as chapter 576, of
the Laws of 1870, granted to Addison M. Farwell, his associates and
successors who might organize a corporation under the act entitled
"An Act to authorize the formation of corporations for manufacturing, mining, mechanical and chemical purposes," passed Febru



28
ary 17, 1848, and any act or acts amendatory thereof, permission
to introduce upon the canals of said State the European system of
steam towing, and thereby authorize said Farwell, his associates
and successors, who should organize as aforesaid, to tow  boats,
floats and cargoes on the canals of said State for hire, and for that
purpose to purchase and construct, or cause to be constructed, the
necessary appliances for carrying on the business of canal towing
under the said European method; and further granted to said Farwell, his associates and successors as aforesaid, the exclusive right
and privilege, during the term for which their said corporation should
be organizedl, to submerge or place one or more chains or cables on
the bottom of the canals of said State and attach the same thereto
in such manner as not to interfere with navigation, and to use such
submerged chains and cables in the prosecution of the peculiar
method of towing thereby; and further granted to said Farwell, his
associates and successors as aforesaid, the right to own and employ
other motive power in connection with said chain or cable process;
and further granted to said Farwell, his associates and successors as
aforesaid, exemption from the payment of tolls upon the tugs and
machinery connected therewith, together with the fuel necessary for
the voyage carried thereon, to be employed by them in the prosecution of towing; and further provided by suitable penalties for the
punishment of any person who should interfere with, or disturb,
said cables, machinery or tugs; and,
WHEREAS, In pursuance of the provisions of said act passed
February 17, 1848, the said Addison M, Farwell and his associates, to
wit, James A. Bell, Hiram  D. Faulkner and Edmund Savage, on
the first day of November, in the year one thousand eight hundred
and seventy-one, made, signed and acknowledged a certificate in
writing in due form, whereby they organized a corporation in conformlity with the act last above mentioned, under the name of The
New York Steam Cable Towing Company, for the object of introducing and operating upon the canals of this State the aforesaid
system of steamn cable towage, and of complying with, and carrying
into effect, the provisions and franchises of the aforesaid act of May
2, 1870, and whereby the capital stock of said corporation was fixed
at twenty-five thousand dollars, and the term of the existence of the
said corporation was fixed at fifty years, from and after the said first
day of November, one thousand eight hundred and seventy-one,
and the city of Albany, in the county of Albany and State of New
York, was designated as the principal place of business of said
corporation; and




29
WHEREAS, The said certificate was duly filed in the office of
the clerk of said county of Albany, on the first day of November, in
the year one thousand eight hundclred and seventy-one, and a duplicate thereof was on the same day duly filed in the office of the
Secretary of State at said Albany; and
TWHEREAS, The said Farwell and his associates have introduced
the aforesaid system  of towing on the Erie canal, as required by
the aforesaid act of May 2, 1870, and the said New York Steam
Cable Towing Company now has and owns in and upon the Buffalo
and Lockport level of said canal, thirty-one miles of steel cable properly laid and adjusted for towing purposes, and two steam tugs built
and equipped for towing according to said system; and,
WHEREAS, The said New York Steam Cable Towing Company
afterward, by due proceedings taken in conformity with the aforesaid act of February 17, 1848, increased its capital stock on the 8th
day of February, 1872, to the amount of five hundred thousand
dollars; and
WHEREAS, The people of the State of New York, by an act of
their Legislature passed March 8, 1872, entitled " An act to confer
additional powers upon The New York Steam Cable Towing Company, a corporation organized pursuant to the requirements of
chapter 576 of the Laws of 1870, and to authorize the said Comnpany to issue the preferred stock and bonds thereof, " and known as
chapter 93, Laws of 1872, granted to the said New York Steam
Cable Towing Company in addition to the powers and privileges
conferred upon the said Addison M. Farwell, his associates and
successors, by the said act of May 2, 1870, the power to build, purchase,
import, own, charter, equip and furnish all such boats, tugs, towers,
chains, cables and other machinery and apparatus as might be necessary to apply and operate the said European system in the towage
and propulsion of boats and floats upon the canals of said State, and
the right and power to purchase, own, hire, lease and convey such
real and personal property as might be necessary in the execution
of the business contemplated in the charter and certificate of incorporation of said Company, and also further granted and provided
that whenever the written assent of the stockholders, owning at
least two-thirds of the capital stock of the said New York Steam
Cable Towing Company should have been obtained and filed in the
office of the clerk of the county where the principal office of said
Company should be located, the trustees of the said Company might,
for the purpose of procuring the means necessary for equipping the
canals with the system of steam cable towage, make and issue the




30
bonds of said Company, and secure the same by mortgage of the
franchises of said Company, and also of all or any part of its real
and personal estate; and
WHEREAS, The people of the United States, by an act of their
Congress, approved June 6, 1872, entitled "An act to reduce
duties on imports, and to reduce internal taxes and for other
purposes," have granted and provided that for a term of two years
from the passage of said act, machinery and apparatus, designed only
for and adopted to be used for steam towage on the canals, may be
imported by any person duly authorized by the Legislature of any
State, free of duty; and
WHEREAS, The said New York Steam Cable Towing Company
is about to equip with double lines of steel cable, and with steam
tugs and mlachinery sufficient to move all the freight offered for
transportation, the two levels of the Erie canal, between Buffalo
and Locliport, a distance of thirty-one miles, and Lockport and
Rochester, a distance of sixty-five miles; and
WIH-EREAS, To procure the means necesssary for equipping the
said ninety-six miles of the Erie canal, as aforesaid, with the said
system of steam cable towage, the stockholders of said New York
Steam Cable Towing Company, owning more than two-thirds of
the capital stock of said company, did, by an instrument in writing,
dated the twenty-sixth day of March, one thousand eight hundred
and seventy-three, and signed by them, assent to the issuing of
bonds of said Company, to the amount of eight hundred thousand
dollars, and to the making and delivery of a mortgage, with such
provisions, stipulations and covenants as should be approved by the
trustees, conveying all the franchises, property and estate, real and
personal, acquired or to be acquired by said company, and on or
pertaining to the two levels of the Erie canal aforesaid, to the New
York Guaranty and Indemnity Company, or other suitable trustee,
to secure the payment of said bonds and interest and the payment
of the debts to be contracted by said company in the business for
which it was incorporated, as evidenced by said bonds; and
WHEREAS, The said written assent was filed in the office of the
clerk of Albany county, where the principal office of the said Steam
Cable Towing Company is located, on the first day of April, one
thousand eight hundred and seventy-three, and in the office of the
clerk of Erie county on the nineteenth day of April, one thousand eight
hundred and seventy-three, and in the office of the clerk of Niagara
county on the nineteehth day of April, in the year last aforesaid, and
in the office of the clerk of Orleans county on the nineteenth day of




31
April, in the year last aforesaid, and in the office of the clerk of the
county of Mlonroe on the twenty-first day of April, in the year last
aforesaid; and,
WI-IEREAS, At a meeting of the trustees of the New York Steam
Cable Towing Company, held at No. 40 Broadway in the city of
New York in said State, on the twenty-sixth day of March, one
thousand eight hundred and seventy-three, it was resolved and
decided that, to secure the payment of debts to be contracted by the
said New York Steam Cable Towing Company in the business for
which it was incorporated, to wit: To procure the means necessary to
enable said company to equip with the system of steam cable towage
the two levels of the Erie canal between Buffalo and RoIhester in
the State of New York, the said company and its trustees in its
behalf issue bonds in conformity with the aforesaid assent of stockholders and in the form approved by resolution duly passed and
recorded at said meeting of trustees, which said form is as follows
viz.:
(Bond omnitted here, but will be focnd ont page 26, preced]ing.)
AND, WHEREAS, The said New York Steam Cable Towing
Company has made and caused to be duly executed, attested and
delivered to the New York Guaranty and Indemnity Company, as
trustee, to be by said trustee countersigned and held subject to the
provisions hereinafter set forth, its bonds in the form aforesaid, numbered consecutively from one to eight hundred, both inclusive, each
for the sum of one thousand dollars in gold, and amounting in all
to the sum of eight hundred thousand dollars in gold, to which
amount the issue of bonds to be secured by this mortgage is
restricted; and
WIHEREAS, At the aforesaid lmeeting of the trustees of the
said New York Steam Cable Towing Company, held on the twentysixth day of March, one thousand eight hundred and seventy-three,
it was further resolved and decided that the aforesaid issue of bonds
be secured by a mortgage of all the franchises, property and estate
of said Company, in conformity with the aforesaid assent of said
stockholders, and that the said mortgage be in the form  of this
instrument, which said form was at the said meeting of trustees duly
approved, adopted and entered upon the minutes of said trustees.
NOW, THEREFORE, For the purpose of securing, equally and
alike, the payment of each and all of the bonds of the aforesaid
series, principal and interest, as the same shall become due, according to the true tenor and import thereof, and in consideration of
the premises, and of the sum of one dollar paid to the party of the




32
first part by the party of the socond part hereto, the receipt whereof
is hereby acknowledged, the said party of the first part, THE NEW
YORK STEAM  CABLE  TOWING  COMPANY, has granted,
bargained, sold, assigned, conveyed and confirmed, and does, by
these presents, grant, bargain, sell, assign, convey and confirm, unto
the party of the second part, THE NEW  YORK GUARANTY
AND  INDEMNITY  COMIPANY, its successor in the trusts
herein and hereby created, ALL the rights, firanchises, property,
estate, lands, tenements and hereditaments, and all the chattels and
effects hereinafter mentioned; that is to say, the right and franchise
to be a corporation for the purpose of introducing, and as such c:orporation to introduce the European system of steam towing upon
the two levels of the Erie canal, between Buffalo and Rochester, in
the State of New York, in all, a distance of ninety-six miles or
thereabouts, and to tow boats, floats and cargoes on the said two levels
of the Erie canal for hire, and for that purpose to purchase and construct, or cause to be constructed, the necessary appliances for carrying on the business of canal towing under the said European method;
and the exclusive right and privilege, during the term of fifty years,
to submerge or place one or more chains or cables on the bottom of
said two levels of the Erie canal, and to use such submerged chains
and cables in the prosecution of the peculiar method of towing
thereby, and in respect to said two levels of the Erie canal to have
and enjoy all the rights, powers, immunities and privileges, which
have been granted to and conferred upon the party of the first part'by any and all of the aforesaid acts of the Legislature of the State
of New York, and of the Congress of the United States of America,
or which have been, or may at any time be, acquired by the party
of the first part, under or with reference to the aforesaid acts or any
of them.
ALSO, All the lands, tenements and hereditaments that the said
party of the first part now has or may hereafter at any time acquire
adjoining the two aforesaid levels of the Erie canal between Buffalo
and Rochester aforesaid; and,
ALSO, All the boats, tugs, towers, chains, cables and other
machinery and apparatus, including the two steam tugs and thirtyone miles of steel cable now owned by the party of the first part
and in use upon the aforesaid level between Buffalo and Lockport,
which the said party of the first part now has or may, at any time,
acquire for use upon, and fully to equip and furnish for the operation of said European system of towage, the aforesaid two levels of
the Erie canal.




33
TOGETHER with all rights, franchises, lands, tenements, hereditaments, chattels, effects, income, earnings, rents, issues and profits
which the said party of the first part has or may, at any time, have
or acquire upon, about or with reference to the said two levels of
said Erie canal, and also all the estate, right, title and interest,
property, possession, claims andc demands whatsoever, as well in law
as in equity, of the said party of the first part, of, in and to the
same, any and every part thereof, with the appurtenances.
TO HAVE AND TO HOLD the above-described premises and
appurtenances unto the said party of the second part, its successor or
successors, in the trust hereby created, for the purposes and upon
the conditions and subject to the provisions hereinafter set forth,
to wit:
FIRST. It is hereby provided that, until default shall be made in
the payment of the interest or principal of the aforesaid bonds, or in
the performance'of the covenants and agreements herein contained
on the part of the party hereto of the first part, and until the said
party hereto of the second part shall be entitled to take possession
and control of the premises conveyed hereby for the purpose of
enforcing the lien created hereby, the said party of the first part, its
agents, appointees or assigns, shall be entitled to have, hold, use,
possess and enjoy the said premises, property and appurtenances,
and to receive the income, rents, issues and profits thereof.
SECOND. It is hereby furtther provided that if the said party
of the first part shall well and truly pay, or cause to be paid, all the
interest of or on account of said bonds, and also the principal of the
said bonds, as the same shall become due and payable, according to
the tenor and true intent and meaning of said bonds, and shall keep
and perform all the covenants and agreements herein contained, on
the part of the said party of the first part, then and in that case this
indenture shall be and become null and void; otherwise it shall be
and remain in n full force and virtue.
THIRD. All of thle cVforesaid bonds (excepting an amount
thereof not exceeding fifty thousand dollars par value which, when
countersigned by said trustee, may be delivered to and used by said
party of the first part to cover immediate expenses in prosecuting
its business) shall be forthwith delivered to and deposited with the
party of the second part.
FOURTH. The party of the second part may deliver from the
bonds so deposited witll it such part thereof as may from  time to
time be sold to actual bonafide purchasers, on receiving from the
party of the first part, or its authorized agents, a certificate stating
5




344
the number of bonds so sold, and the price at which the same have
been sold, and on receiving at the same time the said proceeds of
sale or valid and sufficient security for the payment thereof.
FIFTHI. From the proceeds of bonds sold as aforesaid, or, in case
such proceeds shall not be sufficient, then by the delivery of a sufficient number of said bonds at eighty-five per cent of their par value,
in lieu of such proceeds the party of the second part may pay for
property purchased or constructed for the equipment of the aforesaid
two levels of the Erie canal, and also for the cost and expense of
transporting and putting such equipment on said levels, upon the
receipt of vouchers properly certified by the party of the first part
showing that the said property has been acquired, and said cost and
expense incurred for the purposes aforesaid by the party of the first
part.
SIXTH. From t#he proceeds of said boznds while the same or any
part thereof shall remain in its possession, the said party of the
second part shall pay any interest or principal of said bonds or any
of them which shall become due, and shall not be otherwise provided for by the party of the first part.
SEVENTH. TW/ten the level of the Erie cacal between Buffalo
and Lockport shall have been completely equipped and furnished
as hereinbefore mentioned, and prepared for the prosecution of the
business of Steam Towing according to said European system, and
that fact shall be certified by the party of the first part, then the
party of the second part shall deliver to the party of the first part,
or its agents, an amount of said bonds or the proceeds thereof sufficient, together with what shall have been delivered or paid prior
thereto, to make two hundred and fifty thousand dollars of the
aforesaid bonds or the proceeds thereof, besides the fifty thousand
dollars mentioned in the preceding third clause hereof, and when
the two levels of said Erie canal between Buffalo and Lockport,
and Lockport and Rochester, shall have been fully equipped, furnished and plrepared as aforesaid, and that fact shall be certified as
above required, then the party of the second part shall deliver to
the party of the first part, or its agents, the remaining five hundred
thousand dollars of said bonds and the proceeds thereof, or such part
thereof as shall not have been delivered or paid out by the party of
the second part as hereinbefore authorized.  Provided, that said
party of the second part shall not deliver the said two hundred and
fifty thousand dollars of bonds or the proceeds thereof, or the said
remaining five hundred thousand dollars of bonds or the proceeds
thereof, nor any part of the same, unless at the time when such




delivery is required, the party of the second part shall have in its
possession funds of the party of the first part, exclusive of and
beyond the property and stuns so demanded, sufficient in amount to
pay on all outstanding bonds of this issue the semi-annual interest
which will become due next after such demand.
EIGHTH. DTe pa2rty of tl/e first part shall provide for and pay
all interest accruing on such of the aforesaid bonds as may at any
time be outstanding, as the same shall become due, and shall provide for and pay the principal of said bonds at the maturity thereof.
NINTH. The party of' the first part shall in each and every
year deposit with the party of the second part ten per centum of
the earnings and profits of said party of the first part, net, after
the payment of expenses of business and interest due in said year.
The sums so deposited shall constitute a sinking fund, of which the
party of the second part shall be the custodian, and the said fund
shall be invested froln time to time in the purchase of bonds of this
series at the lowest price at which they can be obtained in market,
or said sinking fund shall be kept on interest and allowed to accumulate, and shall be paid and applied first, to the payment of any
interest due and not otherwise provided for on any bonds of this
issue; second, to the payment of the principal of said bonds when
the same shall mature; third, to the treasury of the party of the
first part, as soon as all bonds of this issue shall have been redeemed,
taken up or fully provided for or paid.
TENTH. It is hereby farthler )provicled that in case default shall
be made in the payment of the interest or principal of the bonds of
this issue, or any of them, or in the performance of the covenants
and agreements herein contained on the part of the party of the first
part, and such def:ault shall continue for six months, and payment
shall afterward be demanded at the place where the interest or principal so unpaid is payable, and payment shall, upon such demand,
be refused, the whole of said series of bonds shall thereupon forthwith become due and payable, and the party of the second part
may, and on the request in writing of the owner or owners of
the bonds of said series then outstanding, or any thereof, and on
being properly indemnified against costs and expenses, shall enter
on and take possession and control of all and singular the premises
hereby conveyed or intended so to be, and shall proceed, by advertisement or by bill in equity, or in such lawful manner as it may be
advised, to sell the premises and property hereby conveyed, or
intended to be conveyed, at such time and place as may be appointed,
4-.~ -1,- l..l...-!b;ir'rll. {,,-~  oCh Enn. n.fd-p.  ct1+-vi-n~r the costs and




36
expenses attending the execution of these trusts shall apply the
balance of the proceeds of sale, or so much thereof as shall be
required, to the payment of whatever shall then be due and unpaid
on said bonds, interest and principal.  Provide d, that before making
the sale herein authorized the party of the second part shall give at
least sixty days' notice thereof, by advertisement in one morning
and one evening paper in New York city once in each week.  An4d,
in case of the sale of said premises as herein authorized, the party of
the second part, or its successors or successor in trust, or the person
or officer duly authorized thereto by a court of competent jurisdiction, shall have power to execute all proper and lawful conveyances
for the same, which shall vest in the purchaser all the title to the
property and interests so sold.
ELEVENTH. It is thereby furtler provided, that the party of
the second part, in the performance of the trusts hereby created,
shall have power to appoint and employ competent agents or attorneys, one or more, whose acts performed within the scope of the
authority which shall be conferred on them" shall be as valid and
effectual as if done by the party of the second part.  And all the
powers, rights and discretion conferred upon the said party of the
second part in and by this indenture, and all the provisions hereof
shall extend and be applicable to its successors or successor in trust.
In case of a vacancy arising in the trusteeship by the resignation or
inability to act or removal of said trustee, such vacancy shall be
filled by a new trustee or trustees to be chosen by the owners of a
majority of said issue of bonds at a meeting duly called for that purpose by any one of said bondholders; or in case such choice shall
not be had within one year from  the happening of such vacancy,
then by such new trustee as the party of the first part- may designate; or the Supreme Court of the State of New  York on the
application of any bondholder, with due notice to the company, may
fill such vacancy.
TWELFTH. Th/e party of the second part shall not be responsible or liable for the consequence of any act performed by it, or
consented to or approved in good faith, but only for willful neglect
or misconduct in the discharge of its duties.
THIRTEENTH. Th/e yparty of the first part hereby covenants to
and with the party of the second part, its successors or successor in
trust, that the party of the first part, its successors and assigns, shall
and will, at all times hereafter, execute, deliver and acknowledge
such further deeds, conveyances and assurances in the law'for the
better assuring unto the party of the second part, its successors or




successor in the trust hereby created, the title of the premises as
above conveyed or intended to be conveyed, as well in reference to
property or things at any time hereafter to be acquired as to such as
are now owned or possessed by the party of the first part, or the
better to give effect to the intent and object of this instrument, as
by the said party of the second part, its successors or successor, or
their counsel learned in the law, shall be reasonably advised or
required.
FOURTEENTH. The party of the second part hereby accepts
the aforesaid trusts, and covencanlts ancl ayrees with the party of the
first part to execute the same upon the terms and conditions hereinbefore mentioned and provided, which said terms and conditions are
mutually agreed to by both the parties to these presents.
IN WITNESS WHEREOF, The New York Steam
Cable Towing Company, by order of its board
of trustees, has hereunto affixed its corporate seal
and caused the same to be duly attested by its
Secretary, and has caused these presents to be![. s.]   signed and acknowledged by its President, and
The New York Guaranty and Indemnity Company has hereunto set its corporate seal and
caused the same to be duly attested by its Secretary, and these presents to be signed by its President the day and year first above written.
The New York Steam Cable Towing Company.
By JAMES A. BELL, President.
Attest:
EDMUND SAVAGE, Secretary X. Y. StecT Ccable Towing Co.
New York Guaranty and Indemnity Company.
[L. S.]      By JAMES P. WALLACE, President.
Attest:
F. J. OGDEN, Treas. NB. Y. G. & 1. Co.
STATE OF NEW YORK, }
CITY AND COUNTY OF NEW YORK, 88.
Be it remembered that on the 12th day of April, A. D. 1873,
before me, the undersigned, James H. Gilbert, a Notary Pnblic of
the State of New York, duly commissioned and sworn, and dwelling
in the city of Brooklyn and county of Kings, personally appeared
James A. Bell, to me personally known, and known to me to be
the President of the New York Steam Cable Towing Company,




38
who, being by me duly sworn, did depose and say: That he resides
in the village of Dexter, Jefferson county, N. Y.; that the first of
the seals affixed to the foregoing instrument is the corporate seal of
the said The New York Steam Cable Towing Company, and was
thereto affixed by authority of the board of trustees of said company,
and that he subscribed his name thereto as President by like authority; and that on this 25th day of April, A. D. 1873, before me personally appeared James P. Wallace, to me personally known, and
known to me to be the President of the Nlew York Guai'anty and
Indemnity Company, who, being by me duly sworn, did depose and
say: That he resides in the city of Brooklyn; that the second seal
which is affixed to the foregoing instrument is the corporate seal of
the said The [New York Guaranty and Indemnity Company, and
thereto affixed by authority of the board of directors of said company, and that he subscribed his name thereto as President by like
authority.
IN WITNESS WHEREOF, I have hereunto set my hand
[L. S.]    and affixed my official seal this, the day and year
last above written.
JAMES HI. GILBERT,
TNotary Public, KfingY8 Co., N. Y.
STATE OF NEW YORK,.
COUNTY OF KINGS,.
I, George G. Herman, Clerk of the County of Kings, and Clerk
of the Supreme Court of the State of New York, in and for said
county (said court being a court of record), do hereby certify that
James I-I. Gilbert, whose name is subscribed to the certificate of
proof or acknowledgment of the annexed instrument, and thereon
written, was, at the time of taking such proof or acknowledgment,
a Notary Public of the State of New York, in and for the said
county of Kings, dwelling in said county, commissioned and sworn,
and duly authorized to take the same; and, further, that I am well
acquainted with the handwriting of such Notary, and verily believe
the signature to said certificate is genuine.
IN TESTIMONY WHEREOF, I have hereunto set my hand
[L. s.]    and affixed the seal of said county and court, this
28th day of April, 1873.
GEORGE G. HERMAN, Clerk.
Recorded in the clerk's office of the county of Albany the 1st day
of May, 1873, at 12 hours M., in Book No., of Mortgagcs, on
page                                A. C. JUDSON,
Clerk of Albany Co.