| Annual Report of the South Side RR |
| as of October 1, 1863, |
| President's Report |
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| President's Report
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| Office South Side Rail Road Co. |
| Petersburg, Nov. 20th, 1863 |
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To the Stockholders of the South-side R. R. Co.
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Gentlemen,
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I herewith submit, in behalf of the Board of Directors,
the annual reports of the Treasurer and General Superintendent of the
company, for the year ending September 30, 1863.
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The Treasurer's report exhibits in detail the receipts
and disbursements, and the General Superintendent's the condition of
the road, rolling stock and other property.
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The receipts, or gross earnings of the road were
$880,012.12, and the expenses of operating it $405,488.00; the
receipts increased $300,053.75 over those of the previous year. It
will be seen that the expenses also increased largely. This was caused
by the high and constantly increasing price of supplies for railroad
purposes, and the increased cost of living, which made it necessary to
increase largely the wages of the employees of the company. The rates
of passenger fare and freight have been increased from time to time,
to meet the increased cost of working the road, and it remains to be
seen whether the high rates now charged will suffice for the ensuing
year.
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The Board took no action in regard to the new road from
Rice's station to Farmville, the cost of constructing which, under
existing circumstances, would be so greatly beyond the estimate of the
engineer, that it was thought best to defer action on the subject, not
doubting that if the future should develop that the improvement was a
necessity, the Legislature would grant equally as good if not more
favorable conditions than are embraced in the act passed in its last
session.
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The earnings of the road have, therefore, have been
appropriated to paying off the debts of the Company. During the year
the back debt to the State for accrued interest and redemption,
amounting to $208,000 has been paid, and also $56,000 for this year.
In addition to this, of the $28,000 coupon bonds, which fell due on
the first of January last, $25,500 (all that were presented) was paid,
leaving outstanding $4,500); and of the unpaid bonds January, 1862,
there was presented and paid $2,200, leaving unpaid $14,900. The money
was ready to pay these bonds when due, and it was advertised that no
interest would be paid on all that were not presented.
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The debt of the Company is now:
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| For coupon bonds maturing from January 1st, 1865
to January 1st, 1875 |
$812,500.00 |
| Outstanding bonds not presented as above stated |
$19,400.00 |
| Balance due the State on loan of $800,000,
exclusive of accrued interest on payments made |
$720,102.34 |
| Showing the present debt to be |
$1,552,002.34 |
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It is greatly to the interest of the Stockholders to
reduce this debt, for the history of the Company will show that its
heavy indebtedness has had a most depressing effect upon its credit.
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The amount of coupon bonds maturing between January 1st,
1865 and January, 1870, is small, and distributed in easy payments,
presenting a favorable opportunity of anticipating the payments of the
loan from the State, payable in 34 years from date, at the rate of
$56,000 per annum. With this view, application has been made to the
Legislature to grant the privilege of anticipating its payment, and if
it be allowed, it is hoped that it can be paid off out of the surplus
earnings, between this and January, 1870. This will place the credit
of the Company beyond all question, and the Stockholders may reasonably
expect regular dividends thereafter. Another reason, which commands
the application to the favorable consideration of the Legislature, is,
that after the end of the war, the Company will have to make large
outlays for construction and machinery, and may have to resort to
loans, which, with a debt of one and a half millions, a depreciated
road and rolling stock, may be embarrassing, and it will be well to
guard against such a contingency if practicable.
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The necessity for increasing the supply of rail road
iron and other materials for repairs, is becoming more urgent, and
your attention is particularly called to the part of the
Superintendent's report in relation to that subject. It has been
suggested, that to meet the wants of the roads in this and the
adjoining States, they, or such of them as would be willing to do so
should combine and contribute pro rata to raise the necessary capital
for creating a rolling mill, and the other works necessary to meet the
wants of the roads. Some practical plan of effecting this desirable
purpose is certainly needed.
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A part of the City Point road has been taken up and the
best rails are being used in replacing the mashed rails on the main
line. There will be about enough for that purpose, and the old rails
will be kept for the future wants of the Company.
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The road and stock are believed to be in as good
condition as could be attained in these difficult times of procuring
the necessary labor and supplies; but there is room for improvement
and every effort shall be made to effect it.
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Respectfully submitted,
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Lem'l Peebles
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President
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