| Annual Report of the Charlotte & South
Carolina RR |
| as of January 1, 1865, |
| President's Report |
| |
| To the Stockholders of the Charlotte
& South Carolina Railroad Company: |
| |
| The operations of the Road
during the year 1864, have been attended with many difficulties and
varied success. The scarcity of skilled labor, materials and
subsistence of all kinds have materially contributed to these results. |
|
Notwithstanding these embarrassments, the amount of
business, both passengers and freights -- constituting the tonnage
transported -- has far exceeded that of any former year. This is
owing, in some degree, to the use of two additional engines and about
thirty cars hired from the Memphis & Ohio Railroad Company, and to
the improved condition of the track, (under the direct supervision of
Captain John Rhodes.) This department of your property is in better
condition, with more capacity for transportation than it has been for
three years. Hence, notwithstanding the frail structure of a portion
of the track, accidents resulting from defects therein have been rare,
considering the number of trains that daily pass over it. With the
energy, skill and fidelity of your Superintendent and Master
Machinist, it is believed that the engines and cars will soon be in a
greatly improved condition.
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| The earnings have far
exceeded those of any former year, but much of them, invested in
necessary supplies, have been consumed by fires in Columbia and
Charlotte. These losses have absorbed more than the surplus profits,
and will add greatly to the expenses of the ensuing year in which they
occurred. That you may more fully understand the financial condition
of the Company, your attention is invited to the Reports of the
Superintendent and Treasurer, with the exhibits furnished by the
latter. From this it is manifest that if the whole net earnings,
including dividends, had been applied to the payment of twelve
miles of rails purchased during the year, it would not have paid
on-half of the debt thereby created. It is fair to presume that the
iron is wearing at the rate of ten per centum per annum with the heavy
transportation now on it. At this rate, eleven miles per annum would
be required to maintain the property in this respect alone. The entire
net receipts would not replace half this quantity of iron, independent
of the loss and depreciation otherwise. It is manifest, therefore,
with the apparently large receipts, that the property is annually
depreciating in value -- that its capital is not maintained. The
dividends declared, although one-tenth in value of what you formerly
received, could not be invested in what was essential to the maintenance
of the property, and hence were paid to the stockholders. This is only
referred to in explanation of the present and future conditions and
prospects of your property. It is not to be expected that it should be
exempt from reasonable burdens as a part of the price of our
independence. The taxes imposed by Congress upon this corporation are
a very small portion of its contributions to the common cause. More
than four-fifths of the tonnage transported during the year has been
for the Government. The highest rate paid for this transportation has
been one dollar in Confederate currency per hundred pounds per hundred
miles. This is not equal to one-half of the actual cost of
transportation. As the account of this Company against the Confederate
States amounted to $1,341,322 25/100 for the past year at a rate which
did not pay half the cost of transportation, its voluntary
contributions to the Government may safely be stated at that sum,
independent of the taxes paid into the Confederate States Treasury,
and the large number of smaller contributions for which the
necessities of the times required it to provide. Had the cost of
transportation been the same to the Government as to private parties,
the earnings of the Company would have been three times its present
amount. This state of things is not peculiar to this Company, but
pertains to the Roads generally of the Confederacy. Upon the
leading lines of military transportation it is important to increase
the rates on Government freights as a means of giving continued
efficiency to the Roads. No other species of property, in value, has
contributed more freely to the common cause in this great struggle
than the Railroad Companies. It is gratifying to state, in the present
condition of your property, that the Road will be able to maintain its
efficiency during the next year, without some unexpected casualty; and
that the policy of the Company will be to make liberal expenditures to
maintain its capacity and usefulness to the country. |
| Respectfully submitted |
| Wm. Johnston |
|
President
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