| Annual Report of the South Western RR |
| as of August 1, 1861, |
| President's Report |
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| President's Report
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| South-Western Railroad Company |
| Macon, Ga., August 8, 1861 |
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To the Stockholders:
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The operations of the Road for the year ending 31st July,
ultimo, its condition and the condition of the motive power, are shown
in the report of Virgil Powers, Esq., Chief Engineer and
Superintendent, herewith submitted:
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| The net earnings have been |
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$280,463.52 |
| And the same have been disposed of as follows: |
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| February dividend, 4 per cent. |
$121,032.00 |
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| Interest on bonds |
25,602.50 |
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| Annuity to city of Macon |
1,250.00 |
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| Dividend this day, 8 per cent |
95,292.00 |
248,176.50 |
| Leaving |
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$37,287.02 |
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In the year's earnings, is included the sum of
$12,601.16, due by the United States. It is not probable that the
amount will ever be realized.
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Of the bonds of the Company, falling due in this year,
there have been presented and paid bonds to the amount of $12,000 --
leaving still to be paid $26,000.
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The Board has deemed it prudent, in view of these facts,
and also of the probability of very short earnings in the immediate
future, to retain in hand the surplus of earnings shown above to
exist, after the declaration of a dividend of three per cent. for the
last six months. This is the first dividend day on which there has
been a failure to declare four per cent. semi-annual dividend, and in
August of last year, an extra dividend in cast of five per cent. was
given. The Board believes that the stockholders will entirely approve
the action of today. In ordinary times there would be no danger in
paying a dividend at present of four per cent., but situated as we
find ourselves, it behooves us to rely on the future for but little.
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An examination of table (A), annexed to Mr. Powers'
report, will show that the earnings of the Road have fallen off
largely and suddenly. It now requires strict attention to keep the
expenditures within the gross revenue. Great reduction has been
recently made in the expenditures, and today all the salaries of the
officers have been reduced from 40 per cent. (on the President's salary)
down to eight per cent. The stockholders may rely on the utmost car
and economy in the management of the Road. The officers of the Company
will cheerfully bear the reduction of salaries, knowing that when the
day of prosperity shall return they will be duly provided for.
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The existing blockade has cut off entirely the
transportation of goods, one of the main sources, hitherto, of our
profits. It is the policy of our Government, as long as the blockade
continues, to discourage the movement of cotton to the sea-ports. For
some time, then, we shall make nothing by the carriage of the present
cotton crop. The planters generally will make abundance of grain and
we shall have but little more of breadstuffs to carry. We cannot
reasonably hope for a revival of business before the end of the year.
By that time the necessities of the European world -- the success of
our arms and the greatly increased butthens upon the people of the United
States will, it is believed, produce a great change for the better
in our condition. In the meantime, our stockholders will suffer in
common with the rest of the people, but they will bear patiently
burthens necessarily imposed upon them as the price of establishing
our independence. Considering the malignant hatred of the North toward
the South, their mortification at defeat on the field of battle, and
their well-grounded fear that their section will be overshadowed by
the Southern Confederacy, peace is not to be expected at an early
period. The determination of the North to pursue and subjugate the
South will continue until sufficient time shall have elapsed to
convince the world that the South cannot be conquered. That we shall
be able to carry this conviction to the people of the North -- no
matter what may be the cost of blood and treasure -- cannot be doubted
for a moment.
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But although the blessings of peace and amity with all
nations may be postponed, we believe that the Government of the United
States will be compelled to abandon the blockade before the first day
of January next. That Government will find it more difficult to carry
on their war of invasion, than the Confederate States will find it to
maintain their position, and when their people shall see, as they
surely will, notwithstanding their present blindness, that the vast
appropriations of money and insatiable calls for "grand
armies" of men, by their despotic rulers, are likely only to
impose upon them and their children, for generations to come, an
immense public debt and consequent heavy taxation, the small voice
which has already been heard in their Congress for peace will swell
into a loud demand that the Confederate States shall be acknowledged
to be a free, sovereign and independent nation.
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All the Banks -- all the Railroad Companies -- all the
men -- all the women, and even the children, within the Confederate
States, )save the disgraced few in Western Virginia and Eastern
Tennessee,) have already given, and daily give, the most indubitable
proofs of firm resolve to support and aid our Government with their
money and their lives. To such a host, putting their shoulders to the
wheel, and humbly supplication the Almighty Ruler of events for help,
there never can come disgrace of defeat.
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The confidence of the Board in the value of our Railroad
is unimpaired. Although dividends may, for awhile, be suspended, it is
certain that our business, when the time of affairs shall turn, will
yield larger profits than any we have hitherto made.
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In the last annual report, the question of issuing
additional stock was submitted to the stockholders, to be by them
considered at the annual meeting in February last. The necessary
amendment of our charter was obtained from the Legislature in November
last. There was no expression of opinion by the stockholders adverse
to the view expressed by the Board, and therefore a stock dividend was
abandoned. The item of "profit and loss" was accordingly
carried to the reduction of the cost of road and appurtenances.
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The stock and bonds of the Company at this day amount,
together, to the sum of $3,566,400. A sale of stock, or issue of
bonds, to an amount not exceeding $100,000, will be necessary to
finish the road and depot buildings, making a sum total not over
$3,666,400. The cost of Road and outfit will stand on our books at the
same figures. We shall have a well built and well provided Road of a
little over 207 1/2 miles in length, at a cost of $17,669.39 per mile.
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At a time like the present, it will not be found
practicable to sell our stock or seven per cent. bonds at par. The
Board is of opinion that the proper way to raise, during the course of
the year, the sum of $100,000, will be by an issue of guaranteed 8 per
cent. stock. By resolution of this day, such guaranteed stock will be
placed on the market, not to be disposed of under par.
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Respectfully submitted
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By order of the Board
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R. R. Cuyler
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President
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