| Annual Report of the South Carolina RR |
| as of January 1, 1863, |
| President's Report |
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| Report of the President and Directors
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| Office of the South Carolina R. R. Co. |
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Charleston, January 20, 1863
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To the Stockholders of the South Carolina Railroad Company
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Gentlemen,
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The Board of Directors have the honor respectfully to
submit a Report of the operations of the Company for the year
ending the 31st December, 1861, and of its financial condition at that
date.
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The earnings have been as follows, viz:
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| From Freight |
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$807,832.80 |
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Passage |
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986,758.26 |
| " Other
sources |
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45,622.97 |
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$1,840,214.03 |
| The operating expenses have been |
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678,984.70 |
| Leaving a balance of earnings of |
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$1,261,229.33 |
| Against this sum there have been charged for
interest, damages, etc. |
$166,827.58 |
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| Dividends |
465,552.00 |
$632,379.58 |
| Leaving as net income for the year |
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$528,849.75 |
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This surplus, which is considerably in excess of any
previous year, perhaps requires a few words of explanation, that there
may not be any misapprehension of its real nature. It is customary out
of this fund to make the annual appropriations for the replacement of
wear and tear; and the amount of these appropriations, though of
course ever varying, may be estimated to average about $120,000 ro
$130,000. In 1861 a very cautious policy was forced upon the Board, in
consequence of the heavy reduction in the business of the Road, and
the great uncertainty respecting its future extent which then
prevailed. In that year, therefore, but a trifling charge was made to
this account. In 1862, though the same causes did not influence the
managers of the Road, others equally powerful did, for, as is stated
in the Report of the General Superintendent, it was found impossible
to procure the needed material in any quantities, even at most
extravagant prices -- and the material in these cases was
"Locomotives," "Cars," and "Rails."
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It is thus seen that in the sum now at the credit of
Surplus Income are comprehended the appropriations for the replacement
of two years wear of Locomotives, Cars, and Rails -- only not
withdrawn because of an inability to apply them, but of course liable
to be as soon as the opportunity is afforded.
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The Income of the year is largely in excess of any
previous year. In comparison with 1861, the following striking
differences are shown, viz:
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1861 |
1862 |
Difference |
| Gross Income |
1,161,742.18 |
1,840,214.03 |
678,471.85 |
| Expenses |
757,164.26 |
845,812.28 |
88,648.02 |
| Bal. of Earnings |
$404,577.92 |
$994,401.75 |
$589,823.83 |
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It is very gratifying to the Board to be able to present
such profitable results to the Stockholders; but it is their duty,
also, to add a caution against calculations upon similar results in
the future, when obviously the present exhibit is due to the peculiar
condition of the country.
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The Board have, however, no apprehensions about the
Income. It is already demonstrated that during war the admirable
location of this property will insure it amply remunerating
employment, while a return of peace would bring with it a tide of
prosperity whose swollen proportions would tax their best efforts for
accommodation beyond all previous experience.
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The Board would greatly rejoice to be equally at ease
with respect to the condition of the Company's Machinery and Rolling
stock generally. They have to report a considerable deterioration in
this department. The demands of the Government and of the public have
been, through out this year, much in excess of our ability, and in
consequence the Locomotives and Cars have been subjected to a strain,
which could have no other result than that we have mentioned above,
more particularly, when at times they were taken from us and sent upon
connecting roads, and when, also, there was great difficulty in
procuring necessary labor and material.
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Of the large number of Locomotives reported in the tables
from the General Superintendent's office last year not two-thirds can
now be relied upon for even moderately effective service, and this
greatly reduced number is with difficulty maintained by the constant
and vigorous efforts of the mechanical department.
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The Board are fully impressed with their responsibilities
in this connection; with the vast importance of maintaining in a
condition of the greatest possible efficiency property so essential,
apart from other considerations, to the convenience if not to the
safety of the country. They propose to leave untried no measures which
promise success in procuring whatever may be necessary.
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They have placed at the disposal of the General
Superintendent ample funds for present purposes. They have authorized
contracts with parties they have the right to consider reliable for
the delivery here at an early day (say sixty days) of a large amount
of valuable material from abroad. They have adopted still other
measures, and, these failing, contemplate further movements to obtain,
if practicable, whatever may be needed.
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The Cars of the Company, the Board are pleased to know,
have sustained less loss than they could have expected. So largely
used as they have been in the most trying of all services, and so
frequently scattered in all directions over connecting roads in
military service, as compared with last year their condition is, of
course, much reduced, but with care and such repairs as they can
obtain readily from the shops, large and profitable service can be
performed by them.
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Of the Road the Board feel great satisfaction in the
favorable Report of the General Superintendent. It is considered in
good condition generally -- much better than could have been expected.
It is nevertheless very evident that very soon to this department,
also, must be given the most anxious concern of the Board, and they
frankly confess in advance the embarrassment which will be occasioned
them, unless the Government will undertake the supply of rails, in
connection with some concerted action of the Railroads of the country.
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The wants of the departments thus hastily reviewed for
the ensuing year may be estimated, so far as it is possible to
estimate at this time, as follows, viz:
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| In |
Material |
$75,000 |
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Locomotives |
150,000 |
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Cars |
100,000 |
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Structures |
25,000 |
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$350,000 |
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For more particular information, and for much interesting
detail, the Board would refer to the Report of the General
Superintendent accompanying.
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The very full and satisfactory statements of the Auditor
will convey a faithful exhibit of the financial affairs of the
Company. The Board invite the attention of the Stockholders to them.
This department of the Company they regard in a condition of decided
and increasing strength; and with prudent management, and a steady
resolution to reduce as fast as practicable the large debt which has
so long preyed upon the vitals of the Company, a position of
prosperity will in a short time be developed, amply compensatory of
any self-denial the Stockholders may choose to impose.
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The Bond debt of the Company is now stated at $3,104,500.
A comparison of it with that at the same period last year will show an
increase of $465,666.33. The increase has been occasioned by an issue
during the past year of bonds to the extent of $450,000, for the
purpose of paying the subscription to the Augusta and Milledgeville
Railroad {the Milledgeville RR}, the
obligation of the Company to the City Council of Augusta, and of
extinguishing the bills payable and other floating liabilities of the
Company. These bonds have been arranged to fall due in annual
succession in such amounts as will not be likely to interfere with the
usual movement of the Company's affairs. If from the debt as above
stated the securities and other assets usually applied to this object
be deducted, the balance of indebtedness will stand at $2,104,059.74;
and in comparison with the same period last year will show a reduction
of $405,552.02.
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With very abundant resources in the currency of the
country, it was found impossible at the usual time to procure the
means of remitting to the foreign creditors of the Company the January
interest due on the Sterling bonds of the Company. Our agents in
London have been written to with full explanation of the difficulties
in procuring exchange here, and have been furnished with a statement
of the Company's business and condition for the information of all
interested, and there is good reason to believe that all reasonable
parties are quite satisfied to accept the condition of the country as
a sufficient explanation of the circumstance.
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In view of the fact that a large portion of the Company's
debt is rapidly advancing to maturity, the state of its finances must
annually assume an aspect of great and growing interest to the
Stockholders. In that connection, however, the Board have at this time
no special measure to urge upon them of a preparatory nature.
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The Board have to announce that on the 20th October last,
Mr. John Caldwell, who for many years had ably and acceptably presided
over the affairs of the Company, resigned his position, and that they
elected Mr. W. J. Magrath to the vacant seat for the unexpired term.
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The Board are deeply pained to be compelled further to
announce their loss by death of one of their oldest and most valued
associates, Mr. Andrew Wallace. The Board bear willing and grateful
testimony to the wisdom of the counsels which his ripe judgment and
large experience enabled him to bring to their assistance and support,
and they could not hold up to his successor a brighter example of
unselfish devotion to the interest of the Company.
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The Board before concluding this report discharge a most
agreeable duty in acknowledging their obligations to their able and
worthy General Superintendent for the skill, judgment, and energy
exhibited in the management of the Company's affairs during a period
full of perplexing cares and arduous labors.
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All of which is respectfully submitted,
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W. J. Magrath
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President
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