| Annual Report of the Milledgeville RR |
| as of October 1, 1862 |
| President's Report |
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| Office, Milledgeville Railroad Co. |
| Augusta, October 6, 1862 |
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| To the Stockholders: |
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At the last
annual meeting, it was expected that the road would be stopped at
Sparta. For reasons stated in the annual report, it was thought that the
policy would be forced upon the Company of suspending further calls upon
the Stockholders selling the surplus iron for the road beyond Sparta,
and arresting the road at that point until a more auspicious period for
its further progress. This policy was very unacceptable to a majority of
the Stockholders' and it was considered the duty of the Directors to
make further efforts to provide means and go on with the Work. The
Company had purchased and paid for the iron to reach Milledgeville, and
by great exertions, an addition was made to the stock subscriptions of
about $400,000. Circumstances referred to by the Engineer in his report,
caused labor to be unexpectedly abundant about the first of January, and
the means provided, were, by his estimate, deemed fully sufficient to
complete the work to Macon.--Nothing seemed necessary to ensure the
rapid and uninterrupted progress of the work to completion, except the
iron for the road from or near Milledgeville to Macon; and it was hoped
that, before the road should reach that point, the ports would be
opened, and that the iron could be procured in time for uninterrupted
progress. At any rate, Milledgeville would have been an important and
profitable point, as stated by the Engineer, and the road completed to
that point, would have answered many of the most important objects for
which the main enterprize was designed. |
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Under these
circumstances the Board deemed it an imperative duty to the
Stockholders and to the country to proceed with the work, and the
whole road to Macon was placed under contract with responsible
contractors, with heavy force, as stated in the Engineer's report. A
track-laying force was also set to work at Warrenton, and but for
unforeseen interruption was expected to reach Sparta early in the
past summer. |
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Sad experience, however, soon convinced us of the uncertainty of all
private enterprises in the midst of the calamities of war. Early in
April the work was suddenly arrested by the forcible seizure of the
whole of the iron of the company, except a few miles already laid down,
and a small quantity already hauled to the track for the track laying
force engaged in the work. The whole iron left to us will not cover more
than ten miles a distance too short to be run with any profit to the
company. In a time of war private rights are often made to yield to the
necessities of Government, but it must have been a most extraordinary
public exigency to justify such an invasion of private rights as that
involved in the seizure of this iron. A case can scarcely be conceived
where the damage would be greater in proportion to the market value of
the property seized. It had been specially provided for a particular
purpose--was actually being used for that purpose--could not be replaced
at, any price, and its loss not only involved its own value, but the
loss of profit upon the entire capital expended in the enterprise. |
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The case differs nothing in principle, and but little in degree, from a
seizure of iron upon a finished road in actual operation! If not in
actual profitable use, it was in the process of being made so, and, but
for the seizure, would shortly after have been in profitable use to
Sparta, and with hope of but little delay at that point. |
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In view of the vital importance to the company of this seizure, the most
strenuous and persevering efforts were made to induce the Department to
release at least a few hundred tons to reach Culverton, where the road
would have been of some use to the citizens of Hancock. But every appeal
upon this subject was entirely disregarded, and the further appeal
recommended by the Engineer would be hopeless. Whatever may be the
importance to the Company, the Department shows little disposition to
release iron which it can forcibly hold at 3 3/4 cents per pound, when,
in open market, iron is worth from 12 to 15! |
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Under
these circumstances of oppression to the Company, it was reasonably
supposed that, at least, the fair market value of the iron would have
been allowed, but not so; the iron was valued by the Government agent at
$80 per ton, which it now seems was intended to include all expenses and
duties! It was about the price of pig iron at the time, was 25 per cent.
less than the market price of railroad iron in the hands of those who
had it to sell, and is not half the value of the article at present. |
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Iron, like other articles, has been rapidly rising, and from the
same causes. The demand is much in excess of the supply, and whilst
the demand is urgent, the supply cannot be increased in consequence
of the blockade. Another cause of advance is the depreciation of our
local currency compared with a specie basis, or foreign exchange.
Our currency is in good credit at home, but as a fund to replace our
iron, it serve us but little purpose. It will probably appreciate
after peace, but too slowly for our purpose, as our demand will be
urgent. It is impossible, therefore, now to estimate what our damage
will be, in consequence of this unfortunate seizure, but independent
of the loss of interest on our whole expended capital, it will
probably be heavy. |
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It is not the intention of the Board to criticise harshly the action of
the Government. In a time of war encroachments upon individual rights
are often submitted to, and sometimes necessary; but a just Government,
in peace or war, will make these sacrifices as equal as possible. If the
exigencies of the public are so urgent as to justify the forcible
seizure of the property of the citizen, the principle of indemnity
should be recognized, and the public should make just compensation for
the injury done. There is no justice or propriety in making individuals
or classes the victims of a forced economy for the benefit of the rest
of their fellow citizens. After some hesitation, it was deemed best to
accept the amount offered by the Government officials in this exparte
and oppressive proceeding, and appeal to the justice of Congress for at
least some mitigation of the losses thus forced, upon the Company. Full
indemnity for the damage done us we do not expect, but that the market
price of iron at the time of seizure will at least be awarded to us, we
do hope and expect. |
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As contracts had been made, we had no alternative but to proceed with
the work, and the work of preparing the road-bed is making satisfactory
progress. The grading to Milledgeville will be done in a few months, and
the whole road-bed to Macon will probably be done during the next year.
There is, however, now no object in pushing the work. We cannot replace
our iron until peace shall be again restored to the country. If to be
purchased now, it would cost us $250 per ton, and after procured, would
most likely be seized by the Government. This state of uncertainty is
not very encouraging, but the position has been forced upon us, and we
can only submit. The policy will be to finish the road-bed complete,
ready for the iron, and on the restoration of peace, to purchase the
iron, and complete the work as rapidly as possible. For this purpose our
stock subscriptions are believed to be ample. They now amount to over
$1,600,000, which making all fair allowances for loss, will more than
cover the estimate of the Engineer, independent of outfit, and should
furnish a part of that. |
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Should the former prosperity of the country be restored by peace, the
Directors have full confidence that the road, on completion, will be a
profitable one to the Stockholders, besides, answering all the valuable
purposes designed by its original projectors. The line from Vicksburg to
Montgomery is making rapid progress, and will soon be completed to
Selma; and the short road from Greensborough, N.C., to Danville, Va., is
also progressing under the auspices of the Confederate States. These
roads are important to our road, as hastening the line between Richmond
and the Southwest and the Gulf States. For further details, the
Stockholders are referred to the report of the Engineer and the
financial statement of the Treasurer, hereto annexed. It will be seen by
the latter document that the Company is well supplied with ready means.
In fact, the Stockholders have paid rather faster than was desirable,
and, to save interest $100,000 of South Carolina Railroad bonds were
purchased, at a premium of 10 per cent., which could now be sold for a
considerable profit. |
| In behalf of the Directors, |
| Jno. P. King |
| President |
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