| Annual Report of the Knoxville &
Kentucky RR |
| as of January 1, 1861, |
| President's Report |
| |
| President's Report |
| To the stockholders of the Knoxville
& Kentucky Railroad Company: |
|
|
| Gentlemen, |
| The reports of the chief
engineer and the secretary and treasurer of your company, herewith
submitted, give you very full information as to the operations of your
board of directors during the past year. |
| The one informs you as to the
extent of work done, and the other gives you in detail the cost of
that work. |
| From these reports you will
at once see that though the whole country has been convulsed by
political and monetary troubles, the work has gone on as you were
promised a year ago it should be prosecuted, and that, too, without
sacrifice of the securities upon which you have relied mainly for the
building of the road. |
| We have the satisfaction of
reporting to you that during the entire year, we have paid promptly to
contractors every estimate according to contract, and in no instance
have we been forced to hypothecate any bonds or other assets of the
company, to procure money wherewith to meet our engagements. More than
this: by comparing the cost of the work already done with the
estimates of the chief engineer submitted a year ago, you will see
with what accuracy these estimates were made. This gives assurance
that the resources of the company, yet unexpended, are ample to
complete the road, with the same management, to Coal creek. |
| Notwithstanding the
difficulties which for some time past have attended the sale of State,
county and city bonds, you will see from the report of the treasurer
that such of these bonds as were held by the company have been so used
as to realize an actual cash value but a fraction below what
could have been obtained for them one year ago. How far the company
will be able to maintain these values in the future is of course a
matter of mere conjecture, and will depend very much not only upon the
skill used to dispose of them, but also upon the political state of
the country. |
| You will also see from the
report of the treasurer, that but a small portion of private stock,
compared with that of Knoxville, and Anderson and Knox counties, has
been paid into the treasury. The forbearance of the directors to
enforce collections has been because of a desire to refrain from
suing. It is now obvious, however, that the stockholders must pay up
in order that the work may go on with that expedition heretofore
promised. In view of this fact it is regretfully submitted to your
consideration whether or not the private stockholders should not
resolve to pay the balances due from them, and, in the event of the
failure of any to do so within such time as you may specify, then
should not the board be instructed to enforce payment. |
| It has been a matter
discussed by members of the board whether or not, upon the opening of
the spring, it would be well to operate the ten miles of road now
complete, by running a freight and passenger train together. There is
no doubt that the daily use of the road in this way would result in
some loss to the company for the present; at the same time, however,
it would accustom the people for that distance to its use, and would
after a while be remunerative. More than this; it is said as the road
is constructed mainly by the subscriptions of the county of Knox, the
city of Knoxville, and Anderson county, it should be operated at the
earliest day that it will contribute, indirectly even, to their good.
Unless some different advice be given by the stockholders, it is
probable that the present board, if continued by the stockholders,
will so use the road now finished. |
| The chief engineer makes in
his report some allusion to the prospect of an extension of your road
to the Ohio river. At present nothing is occurring which can be taken
as a substantial movement in that direction. The policy of your
board has been to indicate both to Louisville and Cincinnati a desire
to have an extension to the Ohio river; but neither point has yet been
settled upon, and we presume will not be until one or the other of
these cities shall make such movement as will satisfy your company
that a line of road extending from one or the other city will
certainly be completed to our State line. |
| The board of directors deem
it due to themselves to acknowledge in this manner many courtesies and
favors extended to this company by the officers of both the East
Tennessee & Georgia, and the East Tennessee & Virginia roads,
showing thereby the interest which both these companies feel in
encouraging the completion of your road. |
| Respectfully, |
| Joseph A. Mabry |
| President |
|