| Statement read to the Board of Directors at
their first meeting on the 17th day of July 1861
{by President Yulee} |
| {From Board of
Directors Minutes} |
| |
| Owing to the Financial
convulsions of 1857 it became desirable to the original contractors
Messrs Finegan & Co to be relieved of their contract, and on the 24 day
of May 1858 they assigned their contract to Edward N Dickerson and
associates. This assignment was approved by the Board of Directors at a
meeting on the day of
1861. |
| At the date of the assignment
the exact state of the work was nearly as follows, namely
miles of road completed and about
cubic yards of earth work done beyond. |
| As one of the consequences of
the revulsion of 1857, all Railroad securities were depreciated and
unsaleable. By the contract for construction it was provided that if at
any time the contractors were unable to realise 80 per cent. for the
Bonds which they received from the company in payment, the time for
completing the work should be prolonged so as to allow them two years
from the time when the bonds were available at that rate. |
| I had been aiding by all
means in my power the original contractors (Finegan & Co) and they had
proceeded with their work, not withstanding the Bonds had not been
saleable at 80 per ct. But they had not until the trouble of 1857 parted
with any of their Bonds at a lower rate than 70 per ct. After the
troubles of 1857 the Bonds of this company became uterly unsaleable at
any tolerable rate. Indeed no Railroad securities, except of roads
paying regular dividends, had any value in market. The Florida RR
securities were sold during this period at private sales & at auction as
low as 20 pr ct. & I believe in some instances as low as 10 pr ct -- and
continued at the same depressed standard generally up to the date of the
secession of Florida -- the Int. Impt Bonds being offered as late as
Jany 1861 in NYk at 25 r ct. This marked depreciation of our securities
was owing to the Executive war upon the Company superadded to the
general downfall of RR securities in public favor. |
| Bent upon the completion of
the road, I did all I could to encourage the new contractors, and
besides devoting my time to their aid, I used in their behalf, freely,
the company name in negotiations connected with the construction of the
Road. This was necessary to secure the continuation of the work in
waiver of the condition above refered to. In every instance I took care
that the company should be fully protected by a large amount of its own
outstanding obligations issued to the contractors for the construction,
and also took care that the whole fruits of the negotiation were
strictly for construction or equipment of the road, and so applied. I
also on several occasions added, where to do so was useful in the
general purpose that animated me, of securing the completion of the
road, my personal liability, without reward or the expectation of it. |
| The liabilities thus assumed,
so far as they related to transactions of a date prior to the assignment
of F&Co, were always secured by the same collaterals which were before
held for the purpose. So far as the liabilities were for iron purchased
by F&Co, the collaterals consisted of the whole amount of Bonds issued
for iron, viz, $8000 per mile of Int Impt (1st Mortgage) Bonds. In all
other cases the Bonds pledged amounted nearly to two to one as compared
with the liability assumed - sometimes more, sometimes a little less. I
also obtained from the contractors some Bonds to be used for the company
purposes. |
| If it had not been for the
prostrating effects of the political revolution now pending, I have no
doubt that most of these liabilities would have been disposed of, so
that at this time but a trifling amount if any would have remained
existing. |
| I append what I believe to be
a full statement of the liabilities incurred by the company in aid of
the contractors, as well as for equipment on its account through my
acts. |