| Annual Report of the South Side RR |
| as of October 1, 1863, |
| Committee of Examination's Report |
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| Report of the Committee of Examination for
year 1862-'63
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| The Committee of the
Stockholders of the South Side Rail Road Company, to whom was referred
the duty of examining the Road, its management, &c., present the
following |
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Report
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The general condition of the Road manifests an
improvement in its management. The Road-bed, with some few exceptions,
is more even and in a better condition than during the former year:
the ditchings, however, on some of the sections has been too long
postponed, but it is progressing with dispatch. The daily use of the
Road, by heavy Passenger and Freight Trains, and the consequent wear
of the cars and rolling stock, together with the constant demand, by
the government of the Confederate States, for the transportation of
its freight, of necessity, depreciates the value of the rolling stock.
Allowance should be made for the fact, that the means of supplying
materials for repairs is limited. The iron taken from the City Point
Road is advantageously used.
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The Committee have called the attention of the officers
to defects, noticed by them, which will, it is hoped, be corrected;
and the particular mention thereof, to the Stockholders, is deemed
necessary. Repairs to some of the water tanks and to the houses
occupied by negroes hired for the Company is deemed worthy of special
mention; some of those needed repairs noticed in former years, have
received attention.
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While the bridge over Buffalo, has been thoroughly and
well re-built, and that over the Appomattox, near Farmville, is also
being renewed, (and will be completed, it is hoped, at an early day,)
the Committee feel it to be their duty, to repeat their suggestions,
made in former reports, with regard to the bridge near Lynchburg, and
the wagon bridge at the same place. In their two former reports, the
Committee urged that they "must soon be re-built."
The funds of the Company, in our judgment, should, without further
delay, be applied, with energy, to this object: and such application,
of a portion of our surplus funds, could not be more profitably
employed.
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The Company uses a large amount of wood; its cost has
advanced and will form a heavy item of expense. The Committee
recommend that some system should be adopted, by which the
amount of wood delivered to agents and consumed should be ascertained,
and agents should account for wood received by them. The purchase and
use of a small engine for sawing wood is also recommended.
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The Books and Accounts, of the Treasurer and other
officers, have received examinations by the Committee. They find on
the Ledger of the Treasurer, accounts with individuals, with Rail Road
Companies and Corporations, and with the Confederate States. A number
of the accounts exhibit indebtedness to the South Side Company, and
are annually estimated as assetts: some are of long standing and
others are in dispute and will, no doubt, prove unproductive. The
Committee urge, that there should be no further delay in efforts to
have these accounts adjusted and settled: and that there should be a systematic
interchange of accounts, and at short periods, between this and other
Rail Road Companies. The unsettled account with the Confederate States
should receive early attention.
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The annexed Financial Statements show the condition of the
Company on the 30th September, 1863, and also as compared with the
previous year. The debt of the Company has been reduced $234,200 and it
has added to its assetts the sum of 43,015.17. The Company had on 30th
September 1863, in cash and uncollected accounts, after allowing for its
floating liabilities, (if all were settled up to that date) the sum of
$141,343.03.
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Our present tariff rates for transportation commenced on
1st September, being only one month before the close of our financial
year, and its benefits have only to that extent, aided in this years
receipts. The tariff rates as now fixed by the Board of Directors meet
your Committee's views, with the exception of Dry Goods and
Manufactured Tobacco. These will bear a higher rate for
transportation than other articles of merchandize. The Richmond &
Danville Rail Road charge on Dry Goods per 50 miles 103 cts per 100
lbs, for 118 miles 145 cts per 100 lbs.
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The South Side charges for 52 miles 90 cts, 100 lbs. for
123 miles 130 cts per 100 lbs.
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On Manufactured Tobacco the R. & Danville charges for
50 miles 164 cts, for 118 miles 215 cts.
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On Manufactured Tobacco the South Side charges for 52
miles 90 cts, for 123 miles 130 cts.
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We recommend an increase of our Tariff for Transportation
of Dry Goods of 12 1/2 per cent., and on Manufactured Tobacco an
increase of 50 per cent., which would more equalize our rates with
those of the Richmond & Danville Road. Your Committee on the 5th
of May last, after an examination of the Road and the Books of the
Company for the half year, made a written report of the results of
their examination to the President and Directors as follows:
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"To the President and Directors of the Southside Rail Road Co.
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Gents,
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The Committee appointed by our Stockholders in the
performance of their duties, (and desirous as yourselves for the
prosperity of the Company) beg, with respect, to submit a result of
figures, which an examination into the Company's affairs for past six
months, arrives at
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| The receipts for the 6 months to 1st April, 1863 |
$357,994.53 |
| The
expenditures
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"
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199,610.31 |
| Six months net earnings |
$158,384.22 |
| For the preceding year the net earnings for six
months was |
171,336.63 |
| Showing a falling off in six months of this year
of |
$12,952.41 |
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| Our Company's Bonds for negro hire due 31st
December, 1863 are increased over the previous year, about |
$30,000.00 |
| Wood, to be purchased, will cost from 1st April
to 1st Jan. next an increased price about |
30,000.00 |
| Wages of employees, engineers and mechanics will
be increased about |
20,000.00 |
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$80,000.00 |
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The expenses to maintain the Road -- as Iron, Sills,
Bridges, Taxes, &c., we make no estimate how much will be the
increased expense.
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To meet these increased expenditures for maintaining the
Company's Road, the necessity is apparent, that our receipts must be
augmented. The President informs us that application has been made to
the Secretary of War to increase the pay for government transportation
and travel, which was refused. We submit to you, as recommended in our
report to the Stockholders on 3d December last, that you will make our
tariff of freights and fares conform to that of the Richmond &
Danville Rail Road.
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The State of Virginia is largely interested in both
roads, and if an increased tariff is necessary to that Company, how
much more is it to ours? Mr. President Campbell fears that the
advancing our rates of travel to 8 cents per mile might cause some
parties to bring us before a justice and be fined, as the Rail Road
Law limits us to 6 cents per mile -- while on our tariff of freights
Mr. Campbell does not think any would complain of the increased rates.
To protect the Company, however, we suggest that the advertisement of
increased fares sets forth that it is caused from the necessity of
maintaining the Road at largely increased expenses and of State taxes,
and if you deem the protection of the Company from warrants requires
it, then also state in the advertisement, that, as the Charter allows
but 6 cents per mile for passengers, they have the privilege of paying
it in specie, or 8 cents in currency. We presume you are fully
appraised of the statistics which are presented in this paper. Our
purpose is only to urge, (in our opinion) the necessity of meeting the
increased expenses of the Company, by the immediate action of your
Board in increasing your tariffs for travel and freight.
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Respectfully submitted,
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May 5, 1863
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Signed by the Committee"
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The expenses for the year now entered upon will be
greatly increased, the re-building of a bridge at Lynchburg and large
repairs to others cannot be delayed much longer. As the Company has
now the means the materials should be at once contracted for, or
procured, and the work speedily executed.
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Your Committee beg to express a brighter and more than
hopeful prospect to the Stockholders, of remuneration for their
investment. A vigorous surveillance on the part of the Board of
Directors, and effectiveness of officers in the discharge of their
duties, will place our Road in such condition as to yield us, we hope,
regular dividends after another year.
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Respectfully submitted,
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F. N. Watkins
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C. C. Read
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James Venable
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Jos. E. Venable
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Andrew Kevan
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Committee
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Petersburg, Nov. 23, 1863
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