| Annual Report of the Central (of Georgia) RR |
| as of March 1, 1863 |
| President's Report |
| |
| President's Report |
| Office of the C. R. R. and Banking Co. of Ga. |
| Savannah, March 1st, 1866 |
| |
|
To the Stockholders |
| |
|
The absence of your then President, Wm. B. Johnston,
Esq., at the date of the last Report, and the want of a complete
organization in subordinate departments, no doubt, prevented a more
elaborate and detailed statement of the affairs of your Company from
being made by our predecessors. |
| Having recovered to some
extent, from the disorganized state incident to the terrible struggle
through which the country has recently passed, and completed the repairs
of the Road so as to connect, by rail, the cities of Savannah and
Augusta, the present Board feel it incumbent upon them to make a
Supplemental Report, showing the present condition of your Company, and
the progress that has been made in the work of reconstructing the Road;
and also to offer such observations in regard to its future as will,
probably be of interest to you. |
| In order that the
embarrassments under which the Board labored, may be fully understood
and appreciated it is proper to state that, on the arrival of General
Sherman in this city, i December, 1864, the Road, Depot, and all other
property of the Company within his lines, were taken possession of by
the United States military authorities; and, subsequently, the assets of
the Company, that had been removed to the interior, were also seized by
the same power. |
|
The vicissitudes of war having dispersed the Directors,
and the death of your former worthy and lamented President, Richard
R. Cuyler, Esq., occurring, disorganized the Board to a very
considerable extent. Preliminary to a re-organization, on the 3d day
of May, 1865, Capt. John W. Anderson was elected Chairman of the
Board, and at a subsequent meeting (on the 19th of June ensuing,)
Wm. B. Johnston, Esq., was made President, in terms of the Charter.
Under this organization, the Road and the assets of the Company were
recovered from the military authorities, and contracts entered into
with Messrs. Spratt & Callahan, and Messrs. A. L. Maxwell & Co., to
rebuild that part of the Road which was destroyed by General Sherman
in his march on Savannah. These contracts were, without doubt,
considered the most speedy manner of completing the work in hand;
but it is now believed that a greater distribution of labor would
have secured its completion at a day much earlier than is now
expected. |
| To purchase Rails and provide
the means for carrying on the work, the Board appointed Andrew Low,
Esq., to proceed to New York, in conjunction with the President, and
negotiate in behalf of the Company. With the means in hand, five hundred
(500) tons of Rails were purchased and shipped to Savannah, and the work
of reconstruction immediately commenced. Other purchases of Rails have
since been made, amounting, in all, to six thousand six hundred and
ninety four (6,694) tons; or, about eighty-four (84) miles of track. |
| The Board having authorized
the issuance of one million dollars ($1,000,000) of Mortgage Bonds, the
President executed, on the first of September, 1865, a Deed of Trust to
Moses Taylor and James Robb, Esqs., of the city of New York, to secure
their payment, and the Interest Coupons attached. Of these Bonds, Mr.
Johnston negotiated six hundred and ninety one thousand dollars
($691,000,) for which entries have been made in our books prior to this
date; he also contracted with parties for the sale of ten thousand
dollars ($10,000,) yet to be delivered. These sales were, at a discount
of fifteen (15) per cent. And, by authority of this Board, three
thousand dollars ($3,000) more have been disposed of at a discount of
five (5) per cent. These Bonds are now sought for as the most desirable
securities in the market, and it is not doubted that sales could readily
be effected at par, and, probably, at a premium; but it will not be our
policy to dispose of more than is absolutely necessary to complete the
reconstruction of the Road -- which we now hope to accomplish from
Earnings of the Road and assets that we may reasonably expect to realize
within a few months. |
| In addition to these Bonds,
there are yet outstanding four thousand five hundred dollars ($4,500) of
the Bonds issued to pay for the stock owned by this Company in the
August & Savannah Railroad; making the entire Bond debt of this Company
seven hundred and eight thousand five hundred dollars ($708,500.) Seven
hundred and four thousand dollars ($704,000) of this, being of the new
issue of Mortgage Bonds, bears seven (7) per cent. interest -- say,
forty-nine thousand two hundred and eighty dollars ($49,280) per annum
-- payable semi-annually, on the first days of March and September of
each year, until the maturity of the Bonds, on the first day of
September, 1875. |
| The Company also owes one
hundred thousand dollars ($100,000) to the National City Bank of New
York, borrowed by Mr. Johnston to pay for Rails, and for which a note of
the Company was given, due on the 13th of May next. It is now hoped that
we shall be in a condition to meet this note at maturity. There are
other accounts against the Company, the most important of which being
those for the purchase of Rails from Messrs. M. K. Jessup & Co., and
Hon. John A. Griswold. The Rails from the latter have not been
delivered, nor has the account of the former been rendered;
consequently, we are unable to state accurately the amount of those
claims. In both instances, however, the accounts are to be paid, mainly,
in old Rails, which are now being shipped as per agreement. |
| To the amount of indebtedness
already mentioned, must be added Bills of the Bank yet out -- say three
hundred and thirty three thousand nine hundred and sixty-two dollars and
seventy-five cents ($333,962.75,) although it is believed that two
hundred and fifty thousand dollars ($250,000) will cover the entire
amount that will ever be presented for redemption; and Rents for the
Augusta & Savannah, and Milledgeville & Eatonton Railroads -- for the
former, to the first of June next, one hundred and forty-six thousand
dollars ($146,000,) six months of this, amounting to thirty-six thousand
five hundred dollars ($36,500,) being for rent during the existence of
the Confederate Government; and the latter, on the first of April next,
fourteen thousand dollars ($14,000.) |
| All other indebtedness of the
Company (except that due the Confederate Currency) is for Current
Expenses, which, being paid monthly, can hardly be considered in
reviewing the financial condition of the Company. We submit, in round
numbers, the following summary of our liabilities, viz: |
| Mortgage Bonds |
$704,000.00 |
| Other Bonds |
4,500.00 |
| Bills Payable |
100,000.00 |
| Unclaimed Dividends |
32,806.68 |
| Bank Bills that will probably be presented for redemption |
250,000.00 |
| Rents for A. & S. and M. & E. Railroads |
160,000.00 |
| All other indebtedness, (including claims of Messrs Jessup &
Griswold,) |
248,693.32 |
| Total |
$1,500,000.00 |
| To meet these liabilities, we have property, in
Stocks, Bonds, and other assets that are beyond all question
good, amounting to |
$1,100,000.00 |
| 7,000 tons old Rails, at $45 per ton |
315,000.00 |
| Cash on hand, and balances due by Treasurers |
116,699.55 |
| Bills Receivable |
41,291.22 |
| Dividends due from South-Western, A. & S., and M & E.
Railroads |
45,122.00 |
| Total |
$1,618,112.77 |
|
| This exhibit shows (without
touching the Road and its Appurtenances,) a clear surplus of more
than one hundred thousand dollars ($100,000) over and above all
liabilities; and it is believed that the Road and Appurtenances are well
worth the full amount of the Capital Stock of the Company. In estimating
the value of your Road, it must be remembered that the Milledgeville &
Gordon Railroad has been consolidated with the main line, from Savannah
to Macon, under an Act of the Legislature, referred to in the Report to
the Stockholders of this Company, dated 15th December, 1859. The stock
of your Company is, therefore, now represented by two hundred and eight
(208) miles of Road, instead of one hundred and ninety-one (191) as
formerly. Reference is now made to this consolidation of the two Roads,
as it has not been alluded to in any former Report. |
| The Earnings of the Road,
since the date of the last Report, have been -- |
| For December -- Savannah to Augusta |
$27,888.50 |
|
| For January -- Savannah to Augusta |
28,119.72 |
|
| For February -- Savannah to Augusta |
76,316.07 |
$132,325.19 |
| For December -- Macon to Eatonton |
10,561.89 |
|
| For January -- Macon to Eatonton |
10,040.05 |
|
| For February -- Macon to Eatonton |
7,910.28 |
28,512.22 |
| Total |
|
$160,837.41 |
|
| Our Payments, during the same
period, were as follows: |
| For Expenses in operating and reconstructing the Road
between Savannah and Augusta |
$511,066.02 |
|
| For Expenses, &c., between Macon and Milledgeville |
28,870.16 |
$539,936.18 |
| For Bank in Liquidation |
|
176,628.42 |
| For Expenses paid other Companies on Down Freights |
|
48,444.46 |
| For Expenses advanced on goods forwarded |
|
1,236.38 |
| Total |
|
$766,245.44 |
|
| The last two items, while they
will constantly appear in our future accounts, will in no wise affect
the result, so far as our Net Earnings are concerned, as the amounts
therein embraced, in all cases, have either been or will be received by
the Company; or, in other words, they are necessary to explain that we
frequently pay out sums of money belonging to other parties, and advance
sums that are returned to us again. Of the amount expended for operating
and reconstructing the Road between Savannah and Augusta, two hundred
and ninety-two thousand dollars ($292,000) was paid for rails, spikes
and chairs, prior to 1st December, but which had not been entered on our
books prior to the last report. |
| From this time, until the
connection between Savannah and Macon direct is established, we
confidently expect that our Earnings will equal the Payments necessary
to be made. |
| On the first day of February,
ultimo, the rails between Savannah and Augusta were joined a few miles
below Milled; and since that time the trains have been regularly run
between the two cities. As soon as possible after completing the Road
between Savannah and Augusta, operations were commenced from Millen
towards Macon, and from Gordon towards Savannah; and, at the date of
this Report, the track has reached a point three miles above Millen, and
nine miles below Gordon -- leaving seventy-nine (79) miles yet to be
completed. Of this, there are about seventeen (17) miles of track
intact, which reduces to sixty-three (63) miles the actual distance
of track yet to be laid. This, under the contract with Messrs. A. L.
Maxwell & Co., should be completed within two months; but, making
liberal allowance for loss of time by bad weather, we think the work
should certainly be accomplished by the last of May. Should these
reasonable expectations be realized, and there is made a tolerable crop
during the current year, it is believed that a Dividend may be paid
within the next twelve months. |
| In re-organizing, the Road and
the Bank were entirely divorced, so far as relates to the Books and
Accounts -- each being now managed as though they were separate
Institutions. In this way, it is believed that the accounts, being
simplified, will be more intelligible to the generality of persons
examining our Reports, and that no possible disadvantage can result to
either. |
| The closing of the operations
of the Bank prior to the termination of the war will necessarily involve
a heavy charge upon the Road; and, with a view to keep the old entirely
separate and distinct from the business now being done by the Bank, we
have opened and account, in the Books of the Road, under the head of
"Bank in Liquidation." By reference to the Balance Sheet from the Books
of the Road, hereunto annexed, it will be seen that this account has
already been charged with one hundred and seventy-six thousand six
hundred and twenty-eight dollars and forty-two cents ($176,628.42) and
it is probable that it will yet cost two hundred and fifty thousand
dollars ($250,000) over and above the amount we shall realize from the
assets due to it. |
| Exact Balances from the Books
of the Road, on the 1st instant, and from those of the Bank on the 5th,
are given in the Balance Sheets hereunto annexed -- to which you are
respectfully referred. |
| That part of your Road which
was not disturbed by General Sherman has not received, for the last few
months, that attention necessary to render it safe for a heavy traffic;
consequently, three accidents to Freight Trains have occurred within the
last tow weeks. These were not of a serious nature, however -- causing
only some delay to a Passenger Train, and damage to ten or twelve
freight cars. For the last month an increased force has been employed,
and we expect, within the next three or four months, to make the track
perfectly safe for any business that may offer. We shall require,
however, at the earliest possible day, ten or fifteen miles of new
Rails, to replace much that are now so badly worn as to render it quite
impossible to make a good track with them. A more accurate estimate of
the necessity for renewal of Rails will be made before the next Annual
Report. We may, however, say that our requirement, in this particular,
will be very considerable, at least, until all the old Rails now on the
Road shall have been replaced by new. This sudden necessity for so large
a quantity of new iron results from the fact that none has been put on
the Road during the last four years, whilst that now in use has been
subjected to constant wear and a very heavy tonnage. |
| Our Engines -- forty-nine (49)
in number -- are in very bad condition. They have nt only suffered for
the want of timely repairs during the last four or five years; but many
of them were mutilated by order of the Confederate authorities when
Savannah was evacuated All the force that it is possible to employ
advantageously in our Shops are now engaged on their repairs; and we
feel confident that a sufficient number can be made ready to meet all
demands likely to be made upon us for Motive Power during the next year.
For a detailed statement of the number and condition of Engines owned by
the Company, and of those sold and otherwise disposed of since the first
of December, 1863, we respectfully refer you to Tabular Statement No. 1,
hereunto annexed. |
| The Cars belonging to the
Company are in a very dilapidated condition; and, unfortunately, many of
those reported in 1862 are missing -- the exact number of which we are
now unable to state, and consequently omit our Tabular Statement of
them. Our inability to report exactly the number of Cars belonging to
the Company, arises from the fact that they are scattered over so large
a scope of territory, it has been impossible, thus far, to obtain
satisfactory accounts of them from the various Roads on which they are.
This, of course, places it out of our power to state at this time,
whether or not more Cars will be required for our next year's business.
Our Shops will be worked to their full capacity in repairing the old,
and if found necessary, building new Cars. |
| With this brief exposition of
the financial status of your Company, and of the condition of your Road
and its Equipment we trust that you will be able to form a just estimate
of the value of your Stock. |
| Respectfully, submitted, |
| Wm. M. Wadley, President |
|