| Annual Report of the Mobile & Ohio RR |
| as of April 1, 1866, |
| President's Report |
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To the Stockholders of the Mobile & Ohio Railroad Company:
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| The president and directors
of your company present the following |
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Report
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As the mariner, who has been driven and tossed by winds
and waves until hope is nearly extinguished, embraces the first moment
of calm to take a reckoning of where he is, and calculates the chances
of finally reaching the shore, so we, at the close of the late
destructive war, took a reckoning of where we were and calculated the
chances of saving the great enterprise committed to our charge.
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At the commencement of the war the company was in good
condition -- had inspired universal confidence at home and abroad, and
had ample resources to meet all its engagements. The road, in its
progress to completion, had met and overcame opposition of the
greatest magnitude. In the State of Mississippi it had been opposed by
the friends of a rival road from New Orleans; in Tennessee, it had met
the violent opposition of the enterprising and energetic city of
Memphis. The great length of the road, passing through sections of
country having no previous business or commercial connection with each
other, gave to these rival interests an opportunity of playing
on the passions and prejudices of particular localities, and throwing
obstacles in the way of its progress. Towns and villages a short
distance from the track of the road put themselves in hostility to it
because it did not change its location and send its cars directly to
their doors. When the company was compelled to apply to the
legislatures of the several States through which the road was located
for necessary legislation to aid its completion, we were constantly
met by opposition from these local and rival interests.
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But by energy and perseverance this great road was
completed; and on the 22d of April, 1861, when the last rail was laid
in the track, the company had a road of the first class, built in the
most substantial manner, with rails and fastenings and other materials
unsurpassed in the United States, and supplied with rolling stock
amply sufficient to meet all the requirements of its extensive
business. From the resources then at our command, estimating the
future earnings of the road at figures below what we had a right to
expect, it was safe to calculate that, within two years from the
completion of the road, we would commence the payment of dividends on
our stock, having first taken up our floating liabilities, and from
the sale of lands and a portion of our annual earnings, set apart for
the purpose, provide for a sinking fund sufficient to extinguish our
funded debt before maturity. From the time of our successful
negotiations in London down to the completion of the road all our
financial calculations had been fully sustained, and we had far more
reason to expect success in the future than we had had in the past.
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But the war came, and the company has suffered largely by
it. The confederate government controlled the transportation of the
road, and we were occupied chiefly in transporting men and supplies
for the army. In this way the confederate government became our
debtors, including bonds, &c., as will be seen by reference to the
annexed tables, in the sum of $4,983,871.23. A part of this was due
long before the close of the war, but we were not able to collect it
because of alleged want of means of payment. Add to this, over fifty
negroes, costing $119,691, and Alabama State bonds, since declared
void, being issued for purposes of the war, $125,000, and it makes the
round sum in confederate currency of $5,228,562.23 -- all of which was
lost to this company.
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But our losses did not stop with a failure to get pay for
services which we were, by military orders, compelled to perform. All
our bridges, trestle-work, warehouses, and station buildings, between
Union City, in Tennessee, and Okolona, in Mississippi, a distance of
184 miles, were destroyed. General Sherman's raid to Meridian
destroyed, north and south opf that place, all the warehouses, water
stations, bridges, and trestle-work on 48 miles, and on 21 miles of
that distance he bent and, as far as possible, destroyed the rails and
fastenings. From a full supply of rolling stock of the finest quality
we were reduced to one-fourth of what was necessary, and that was in
bad condition. Our repair shop at Jackson, Tennessee, was broken up;
and on the evacuation of Mobile, the stationary engine and tools in
the shops at Whistler were destroyed. We had, at the close of the war,
neither tools nor material to repair our little remaining rolling
stock, and keep it on the track.
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*****
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Our earnings or 1864, including express and mails, were
$3,674,498.99. Our expenses, $2,281,596.38; leaving a net revenue of
$1,392,902.11.
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Our earnings from January 1, 1865, to May 1, 1865, when
confederate money ceased to be current, were $1,183,220.42. Our
expenses were $906,663.84; leaving a net revenue of $376,536.58.
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The expenses during the periods referred to were greatly
increased by the extraordinary repairs made necessary from injuries
inflicted by the contending armies.
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Soon after the commencement of the war, we purchased in
the name of George Peabody & Co., of London, 2,894 bales of
cotton, to be shipped to Liverpool, to pay the coupons on our sterling
bonds payable in London, intending, if successful in getting the
cotton out, to continue such purchases and shipments, to meet all our
obligations in London and elsewhere punctually. Messrs. Peabody &
Co. were advised of the purchase, and that the British consul in this
city had been requested to regard the cotton as under the protection
of his flag; and they were requested to apply to the United States
government for permission to ship the cotton, and the hope and belief
was expressed that, if this consent was obtained, the Confederate
States government would allow the cotton to go out. Messrs. Peabody
& Co. wrote us in reply, that it was impossible to obtain
permission from the United States, and therefore they declined taking
the responsibility of the agency or control of the cotton, and advised
and directed us to appropriate it as the best interests of the company
might require -- expressing their high appreciation of our efforts to
meet our engagements and sustain our credit, and assuring us that the
bondholders would be satisfied with whatever we deemed it best to do
under the adverse circumstances that surrounded us.
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Subsequently we purchased 799 more bales of cotton,
making in all 3,693 bales. Of this we lost 870 bales by fire and theft
during the war. *****
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Respectfully submitted:
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Milton Brown
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President Mobile & Ohio Railroad Company
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