| Annual Report of the East Tennessee &
Virginia RR |
| as of July 1, 1862, |
| President's Report |
| |
| President's Report |
| East Tenn. & Virginia Railroad Company |
| Knoxville, Tenn., November 27, 1862 |
| |
| To the Stockholders of the East
Tennessee & Virginia Railroad Company: |
|
The thirteenth year since the organization of your
Company has elapsed, and the duty of the Directors to report to you
the condition of the Company has recurred. During the year the Road
has been operated with but few accidents, and these were the results
of the unauthorized and unwarranted interference of Military Officers
with the running of the trains. It affords the Board much
gratification however, to say, that these causes of annoyance and
disaster have been entirely removed, and officers in command of troops
await the regular trains, as arranged by the Superintendent fore the
transportation of men and army stores. It is a source of further
gratification to state that the officers commanding this Military
Department have employed every possible means to protect the Road from
injury by the incendiary, or others who would destroy, if possible,
this important line of communication. The management of the Road has,
of course, been conducted under very many disadvantages, because of
the constantly advancing price of labor, and the difficulty of
procuring reliable and trustworthy laborers; and, also, the greater
difficulty in procuring proper and necessary supplies.
|
| A serious difficulty will
arise in the operation of your Road, should the late act of Congress,
called the Conscription Act, be rigidly enforced on the employees of
the Road, not exempt by the provisions of that law. That law, I
suppose, contemplated the employment of slave labor upon all Railroads
for the repairs, for the procuring of wood and cross-ties, as well as
for brakemen, firemen and all other laborers necessary for running a
Railroad. There being few slaves in East Tennessee, and the difficulty
of obtaining them in other States, owing doubtless to the fact that
the owners out of the State regard the risk too great to send them
into a country with a population, a large majority of which is
disloyal, and hostile in sentiment to the Confederate States, would,
if that law be rigidly enforced as to your Road, stop its operations
in ten days. Seeing this difficulty, when the law was put in operation
in East Tennessee, I applied to the Enrolling Officer, Col. E. D.
Blake, and gave him a Descriptive List of each man absolutely
necessary to carry on your Road successfully. My application was by
him referred to the Secretary of War, and I immediately dispatched an
agent to Richmond, for the purpose of definitely arranging this matter
with the authorities there. The Secretary of War referred the matter
back to the Major General Commanding this Division, and it was again
by him referred to Col. Blake, who has taken the responsibility of
temporarily suspending the Act, thereby securing to the Road, for the
present, its employees until some more definite and permanent
arrangement is made by the proper authorities; either by the President
of the Confederate States, or the Congress which assembles again in
January next. To employ slave labor to do the work on your Road that
is now being performed by white men subject to enrollment, under the
provisions of the Conscript Act, I think utterly impossible at this
time. The only slaves that I am aware of, that could be had now, are
those driven from the sea coast, who are totally incapable from their
previous occupation, upon the cotton and rice fields of that section,
as well as from the climate, of withstanding the heavy labor of the
work, and the severity and rigors of this mountainous region during
the winter season, the period when the services of able-bodied men
will be most needed. I am informed by Major Wallace, President of the
East Tennessee & Georgia Railroad, that they had in the employ of
that Road a number of negroes from the South, who proved wholly
unavailable for the purposes intended, and that out of one gang, a
number had died, several had runaway, and the balance were inefficient
to do the work. The men now engaged on this Road, subject to Conscription,
feeling the insecurity of their position under the arrangement with
Col. Blake, are seeking other positions, and thereby rendering the
future operations of your Road extremely doubtful and uncertain. It is
useless for me, in this communication to the Stockholders, to enter
into an argument to show the great and vital importance of a certain
continuance of this link in the great chain of Southern communication
and transportation between the different important points in the
Confederate States. The Government has already, at great expense, in
both men and money, detailed a heavy force for the protection of this
Road, as a safe-guard against the incendiary and other evil-disposed
persons in our midst, and it certainly would be bad economy to
conscript and take the very men who have been, and are most
instrumental in successfully carrying on this great highway of
transportation, without the ability to put others equally efficient
and reliable in their places. These men are already experienced, tried
and skillful in their various avocations, and many who are industriously
engaged in fulfilling contracts for the supply of wood and cross-ties
from off their own premises, would, if taken by this law, immediately
stop their necessary supplies, which could not possibly be obtained
from other sources, even by impressment, without great trouble,
expense and delay, both to the Road and the Government. In view,
therefore, of the utter impracticability of obtaining the necessary
slave labor to carry on the Road, as well as the vital importance of a
continuance of this great line, not only to the people, but to the
Government, I think it eminently necessary, prudent, and proper, to
detail or exempt from Conscription a sufficient force from the present
employees to carry it on successfully. Unless this is done it is
useless to attempt to carry on its operations so as to meet the
requirements of the Government and public generally. |
| However, the Road has been so
operated that the machines and cars employed are in as good condition
as could be expected. While the road-bed has been greatly improved by
the renewal of ties, proper ditching, ballasting, &c., so that the
machinery and other property must necessarily deteriorate in value, it
is believed the same judicious use of it for the coming year will
leave it but little more depreciated in value than at present. The
accompanying reports of the Officers of your Company will show, that
while the property has been so well preserved, its use has resulted in
gratifying earnings. These in gross may be thus stated for the year
ending June 30, 1862. |
| From Passengers |
$377,056.24 |
| "
Freight |
221,083.16 |
| "
Express |
19,582.48 |
| " Mail |
19,500.00 |
| "
Miscellaneous |
8,636.52 |
| Total |
$645,858.40 |
|
|
To operate the Road during the year, the following
expenses have been incurred:
|
| Ordinary Expenses |
$247,676.66 |
|
| Extraordinary Expenses |
49,582.45 |
|
| Total |
$297,259.11 |
|
| The gross Receipts being |
|
$645,858.40 |
| The gross Expenses being |
|
297,259.11 |
| Leaves nett Earnings |
|
$348,599.29 |
|
|
From which you will perceive that, notwithstanding the
large increase of the expenses of the Company, there has been realized
a sum equal to eleven per centum on the entire cost of the road and
its equipments. The large increase in the earnings of the Road are not
to be attributed, as many suppose, to the business done for the
Government, as it appears from the books of the Company that
$356,276.12 have been received from private individuals, while only
$289,582.28 have been received from the Government, thus showing that
the principal receipts of the Company are from individuals. The
increase of ordinary and extraordinary expenses is to be set down to
the re-building of the Bridges at Zollicoffer and Lick Creek, and the
purchase of four additional Engines and sixteen Box Cars, building of
Car Shop at Knoxville, and expenses incurred in passing freight and
passengers over the streams where the Bridges were burned, as well as
also the greatly increased price of supplies and labor necessary to
conduct properly the business of the Road. The destruction of the
Bridges, and the stoppage of freights and travel from the Nashville
& Chattanooga and Memphis & Charleston Railroads, have
necessarily also detracted considerably from what would otherwise have
been the earnings of the Company.
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|
But for these causes it is not improbable that the
earnings up o this date would have been ample to extinguish altogether
the floating debt of the Company, as well as pay all interest and
sinking fund now chargeable to the Company. As it is, when the cash on
hand at this date is appropriated to these objects, there will remain
no interest or sinking fund unpaid, and only about one hundred and
five thousand dollars of floating debt unpaid.
|
|
That being extinguished, the liabilities remaining
compose the funded debt, which may be thus stated:
|
| State Loan |
$1,602,000.00 |
| Bonds of the Company indorsed by the State, due
May 1st, 1866 |
185,000.00 |
| First Mortgage Bonds, due June 1st, 1867 |
100,000.00 |
| Second Mortgage Bonds, due October 1st, 1867 |
18,000.00 |
| Income Bonds |
7,000.00 |
| Total Funded Debt |
$1,912,000.00 |
|
|
Under the authority to issue the ten per cent. guaranteed
stock, certificates amounting to $24,900.00 have been issued. Much
more has been subscribed, but the parties subscribing have so far
declined to complete the transaction by calling for certificates, and
hence I recommend that such subscriptions be annulled, and no more
guaranteed stock be issued. What are to be the earnings for the
incoming year we can only conjecture from the receipts of the Road
already, from the 30th of June to 31st October, 1862. These amount to
the sum of $329,540.23, while, for a corresponding period of last
year, they amounted to $265,476.15. For the same period this year,
from 30th June to 30th October, the expenses were $104,552.98, and for
the same period last year they were $74,697.78. We must expect,
however, that as the war progresses, even if our property be amply
protected by the Government, the receipts will not be largely
increased, while the expenses must, in every department of the
operations of the Road, be considerably increased.
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|
The Bridges at Zollicoffer and Lick Creek were rebuilt at
a cost of $22,420, by A. L. Maxwell, assisted by his foreman, Mr.
Gates. The structures reflect great credit upon the contractors, are
of excellent material, and as durable as they could possibly be made
of wood.
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|
Since your last meeting, Dr. John W. Lewis resigned the
office of Superintendent, and John S. Goforth, Esq., was chosen to
succeed him. The very successful operations of the Road, and its
present condition, and that of other property, attest not only his
fidelity, but his skill in managing his department.
|
|
For the good condition in which you find you Engines and
Cars, you are indebted to the faithfulness and industry of the Master
Machinist, Mr. Robert Young, and Mr. R. M. Gramling, who has charge of
the Car department.
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|
Since your last meeting one of the most esteemed members
of the Board you then elected, Gen. W. R. Caswell, has been suddenly
taken from this life, by the hands of violence. Esteemed by all who
knew him for his manly deportment, his high moral integrity, and his
sincere devotion to the interests of the Company, it will be difficult
to supply his place. Another, Samuel Rhea, Esq., a few days since,
resigned his place in the Board because of his advanced age and
declining health. I cannot forego the opportunity in this manner to
say of him, as he retires from further active co-operation with us,
that our enterprise, from the first moment of its conception down to
this day, has had no truer friend. For thirteen years a Director, he
has, in the darkest hours of the Company, by his great moral courage,
and by the pledge even of his whole fortune, shown that he has indeed
been its friend. As said of Gen. Caswell, it may be truthfully said of
him, that it will be difficult to supply his place in the Board.
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I am unwilling to close this communication without
rendering due acknowledgement to the several Officers, Agents and
Employees of the Company for the very faithful discharge of their
respective duties. Frequently required to perform extra service, it
has at all times been executed with an alacrity and cheerfulness
deserving of commendation. The limited equipments of the Road have
rendered it necessary to often exact an undue amount of labor from
them, while all have seemed to strive to render the operations of the
Company as efficient and profitable as possible.
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Respectfully submitted for the Directors
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Jno. R. Banner
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President
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