| Annual Report of the Mobile & Great
Northern RR |
| as of April 1, 1861, |
| President's Report |
| |
| President and Director's Report |
| |
| To the Stockholders of the Mobile &
Great Northern Railroad Company |
| The Directors respectfully
submit this their Second Annual Report: |
| By referring to the first
annual report it will be seen that, at its date, the preliminary
surveys of the road were completed, that, arrangements having been
made by which it was considered the necessary means for the
prosecution of the enterprise could be obtained, contracts were
entered into for the materials and construction of the greater part of
the road east of the Tensas river, and for the bridging over and west
of that river, with the design of having the road, from its junction
with the Alabama& Florida Railroad to the Tensas river, in
operation early in the summer of 1861, and to the city of Mobile in
the latter part of 1862, or early in 1863; and that a respectable
force was then actually engaged in the execution of these contracts. |
|
It will also be remembered that, in the commencement of
this successful career in the construction of the road, the Company
was threatened with litigation in regard to the validity of the city
bonds, which composed a large proportion of their resources. This
threatened litigation seriously embarrassed the operations of the
Company, and the Directors used every exertion to have the matter
decided by the Courts of the country as speedily as possible.
|
| It was not until late in
July, 1860, that this litigation was decided by the Supreme Court. The
decision was in favor of the Company upon all points involved, placing
the legality of the bonds beyond all question. |
|
In the meantime, having confidence in the validity of the
bonds, the Directors, being anxious that the enterprise should not be
delayed, pushed forward the work of local construction with all
energy; but, as a matter of prudence, postponed the execution of some
of the contracts for the delivery of materials, which involved heavy
cash expenditures.
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As soon, however, as the decision of the Supreme Court
was obtained, the Directors took immediate steps to prosecute the
enterprise with great vigor in all its departments.
|
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The President went to New York to make arrangements for
the future financial and other wants of the Company, and the Chairman
of the Executive Committee was despatched to England to see to the
proper execution of the contracts made by the Company with Messrs.
John Rogerson & Co., of Newcastle-on-Tyne, England, for iron rails
and fastenings and for bridge work.
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With the very efficient assistance of H. O. Brewer, Esq.,
of New York, late of Mobile, the President succeeded in negotiating
the sale of a considerable number of the city bonds at par, and in
establishing that as their market value. These sales continued until
the date of the late Presidential election, quite as rapidly as the
Company required the money, and up to that time the construction of
the road and the delivery of materials were carried on with energy.
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After the late Presidential election, no further sales of
the bonds being practicable, and the state of the country rendering it
uncertain to what extent the subscribers to the capital stock would be
able to pay the calls for instalments, the Directors, being unwilling
to incur obligations which they did not see the means to discharge,
called a meeting of the stockholders, and submitted to them a
statement of the condition of the enterprise, and of the means
required to carry it on.
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At that meeting the stockholders, being informed that it
was believed the payment of monthly instalments of 10 per cent. on the
subscriptions to the capital stock would, with the other reliable
means of the Company, enable the Directors to keep up the forces of
construction, and to prosecute the work, so far as to put the road in
operation to the Tensas river, nobly resolved to pay these monthly
instalments, and instructed the Directors to make the requisite calls.
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Calls for the payment of monthly instalments of 10 per
cent. were accordingly made, and, in a short time, it being
ascertained that they would, for the most part, be punctually paid,
the Directors decided upon continuing the construction of the road,
notifying the contractors for the road-bed, however, that in so doing
they (the Directors) could only promise that the usual monthly cash
payments of eighty per cent. of the work done, promptly made
heretofore, would, in future, be settled to the extent of the amounts
realized from stockholders, that if the stockholders failed in their
payments, the money collected would be divided pro rata among
the contractors, and that the 20 per cent. reserved for payment on the
completion of contracts, would not probably be paid until some future
period, when the bonds could be negotiated.
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No contractor on the road expressing any dissent to this
notice, the work of construction was continued, but not with the same
vigor as previously, some of the wheel-barrow forces, which could be
dismissed without detriment to the contractors, having been withdrawn,
and some of the masonry and bridging, not immediately essential,
having been postponed.
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In January last the Directors having learned that the
Alabama & Florida Railroad Company had received such assistance
from the State of Alabama as to ensure the speedy completion of their
road between Montgomery and Pensacola beyond a doubt, determined to
make all possible efforts to raise the necessary means to place the
Mobile & Great Northern Railroad in operation to the Tensas river
in time to take off the crop of 1861.
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These efforts the Directors are convinced will be crowned
with success, if the stockholders will pay their stock as called for.
Under this conviction they are now, and have been since February last,
pushing on the work of construction with all the energy and despatch
possible, and the Directors, if sustained by the stockholders, mean to
continue to do so, until the road is in operation to the Tensas river,
both by day and by night, if the labor can be procured. Already a
considerable amount of work has been done at night.
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In this connection the Directors would say that they will
not permit themselves to doubt the readiness of the stockholders to
respond to the calls. So far most of the stockholders have promptly
paid up. In a few instances, when stockholders had positively refused
to meet the calls, and were in default of the calls before made, legal
measures for collection have been resorted to. Some of these
delinquent stockholders have since settled. The Directors earnestly
hope that no further suits will be necessary. The subscribers to the
capital stock of the Company ought to know that the Directors have not
only no poser to release them, but are bound in good faith -- to the
city -- to the contractors -- and to the paying stockholders, to
collect the subscriptions.
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The unpaid subscriptions to the capital stock form, in
the absence of ability to negotiate the bonds, much the largest
proportion of the available means of the Company, and the stockholders
must not, and it is hoped will not, rely too far upon the capacity of
the Directors to provide the additional funds that will be wanted,
should the stockholders fail to pay promptly.
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The system pursued by the Directors in building the road
from the junction to the Tensas river, has been to press the work from
the beginning on both ends, to prepare them for the reception of the
superstructure, leaving the middle portion of the road to be finished
last. Almost all the graduation, masonry and bridging on fifteen miles
on the eastern end, and twelve miles on the western end, are
completed. Thus about three-fourths of the whole work of local
construction required on the road between the Tensas river and the
junction is finished. The remainder is in such a state of forwardness
that it is believed the entire length of the road bed will be ready
for reception of the track in time to permit track-laying to be
continued systematically through from both ends without delay.
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For further particulars in regard to the local work of
construction, reference is made to the Chief Engineer's report
herewith submitted.
|
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The Directors, fully alive to the importance of having a
good quality of rail, required in their contract with Messrs. John
Rogerson & Co., that a good rail, equal to the best made in
England, should be furnished; and to secure this end, and to supervise
the execution of the contract for bridge work with the same parties,
the Chairman of the Executive Committee, Lewis Troost, Esq., was, as
previously stated, despatched to England immediately after the
decision was had as to the validity of the city bonds.
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Mr. Troost did not arrive in England until the latter
part of August, at which time two cargoes of rails and fastenings,
amounting to 848 tons, had been made and placed on board ship. Taking
some rails indiscriminately from a pile remaining from these two
shipments, they were submitted to tests which demonstrated them to be
excellent as regards strength, elasticity, composition and make.
|
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From this time until the latter part of November, Mr.
Troost was present at the iron works whenever rails were making for
this Company, inspecting their manufacture. During this period 716
tons of rails and fastenings (fish bars and bolts) were made and
shipped, all of which have been received.
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The rails thus received are of very high quality,
properly welded and well shaped. They weigh 60 lbs. to the yard, and
are of the form known as the flat-bottom T rail. The fractures of
these rails present a section showing a head of very hard, compact,
fine-grained iron, and a stem and flange of tough fibrous iron. The
tests by blows and pressure to which they were submitted, indicate
them to be very strong and elastic.
|
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The fastenings of the rails consist of fish bars and bolts
at the points, and of hook-headed spikes at the intermediate parts.
|
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The shock given to public confidence by the result of the
Presidential election was so great, that the Directors felt bound to
advise Messrs. John Rogerson & Co. of the state of affairs in this
country, and of their probable inability to pay for the rails
according to contract. These advices were received in England in the
latter part of November, and from that time shipments of rails were in
consequence discontinued. Shortly afterwards John Rogerson, Esq., the
principal of the contracting firm, came to this country in company
with Mr. Troost, and on the 11th of February last the Directors
renewed and modified their contract with his house for 3,168 tons of
rails, and the due number of fastenings, the quantity required to
finish the superstructure of the road to the Tensas river -- 2,000
tons of rails, &c., to be paid for this spring, and the remainder
in January and April, 1862. The latter payments to be secured by
hypothecation of an equal amount of city bonds.
|
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In pursuance of this modified contract, Mr. Rogerson
telegraphed to England for 2,000 tons of rails to be sent forthwith. A
portion of these rails are now shipped, and the Directors hope soon to
hear that the remainder are on their way. The remaining 1168 tons are
to be shipped in May next. In the ordinary course of events these
rails and fastenings will, without shipwreck, arrive in the times
wanted.
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Previous to leaving England Mr. Troost made arrangements
with a skilful rail-maker to inspect the manufacture and to test these
rails, furnishing him with instructions, which, if carried out, will
place the Company in possession of rails of the very first class.
|
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Referring to the first annual report, it will be noticed
that a contract was made also with Messrs. John Rogerson & Co. for
the iron cylinders necessary for the piers of the bridges over the
Tensas and Mobile rivers.
|
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Pending the litigation in regard to the bonds, Messrs.
John Rogerson & Co., with the sanction of this Company, deemed it
best not to proceed with the execution of this contract. After the
suit was determined they were notified of the Company's readiness to
receive the cylinders and to proceed with the contract. This notice
and contract were not complied with in all respects, which released
the Company from their obligations to receive the cylinders, and the
bonds which had been forwarded to pay in part for the cylinders, are,
by agreement with Mr. John Rogerson, to be applied to the part payment
of the rails, &c., to be shipped as before mentioned.
|
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It is fortunate for this Company that the cylinders were
not received, as it was impossible, from the unfortunate condition of
the country, to carry through, as intended, the construction of the
road between the east bank of the Tensas river and Mobile. The
cylinders, if shipped and received, must necessarily have been settled
for if possible, which would have seriously increased the difficulties
of the Company, not only without any adequate advantage, but, on the
contrary, with the disadvantage of causing a loss of interest upon the
large amount invested in the cylinders during the time they could be
of no service.
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In the expectation that the cylinders would have arrived
in due time, the Company purchased and paid for the greater part of
the machinery necessary to sink them, and ordered an air-lock to be
used for the same purpose. This order was, however, countermanded in
November last.
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The work from the east bank of the Tensas river to Mobile
will involve a very large expenditure of money. The present Directors,
if they continue in the management of the enterprise, propose to enter
upon the execution of this work at the very earliest date that they
see it is practicable to meet the required expenses. The Directors
recognize to the fullest extent the obligation of this Company to
extend the road into the city as speedily as possible, having due
reference to the best interests of the Company and of the city of
Mobile. They are unwilling, however, to embark in any undertaking
without a fair prospect of being able to meet their obligations. The
policy of this course will be recognized by every reflecting person.
Up to this time every claim against the Company has been promptly
adjusted and paid. No creditor has been permitted to come a second
time for his money. The result is, the road between the junction and
the east bank of the Tensas river is far advanced towards completion
under the estimates, as will be seen by referring to the Chief
Engineers's report, and the credit of the Company, notwithstanding the
critical times, is unimpaired.
|
| Total Receipts and
Expenditures |
| The receipts to date of last Annual
Statement April 2d, 1860, were |
$116,310.40 |
| The report of the
Treasurer, herewith submitted, shows that the receipts during
the fiscal year, ending April 1st, 1861, were as follows, viz: |
|
| From |
instalments on stock |
$142,260.48 |
|
|
City Bonds |
266,000.00 |
|
|
Interest on bonds |
68,566.86 |
|
|
Interest account |
312.81 |
|
|
Bills payable |
3,000.00 |
|
|
Bills receivable |
2,500.00 |
|
|
* Sale of iron rails |
981.14 |
|
|
Insurance on cement lost |
500.00 |
$484,121.29 |
|
Total receipts up to
April 1st, 1861 |
|
$600,431.69 |
|
|
* These sales were for the remainder of a lot of iron
rails, purchased in New Orleans to facilitate the construction of the
road, left there and not wanted.
|
|
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| The total
expenditures during the same period have been as follows viz: |
| Total to date of First
Annual Statement, April 2d, 1860 |
$84,230.16 |
| For Engineering expenses
(preliminary surveys) |
$1,500.00 |
|
|
Instruments and equipments (location and construction) |
238.44 |
|
|
Engineering expenses (location and construction) |
12,770.02 |
|
|
Negroes |
|
|
61,952.20 |
|
|
Overseeing and subsistence of negroes, horses, and mules, for
construction |
11,725.89 |
|
|
Stock and implements and machines for construction |
7,855.53 |
|
|
Advanced to contractors and bills receivable |
25,225.81 |
|
| Grubbing and Clearing |
10,231.26 |
|
|
|
| Grading |
156,526.28 |
|
|
|
| Masonry |
38,191.19 |
|
|
|
| Bridging |
9,794.17 |
|
|
|
| Foundations |
12,582.50 |
Road-bed |
227,325.40 |
|
| Iron rails |
79,269.63 |
|
|
|
| Fastenings |
15,273.13 |
|
|
|
| Cross-ties |
12,138.53 |
|
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|
| Track-laying |
643.50 |
|
|
|
| Road-crossings and fencing |
229.39 |
Superstructure |
107,554.18 |
|
| Rolling stock |
|
|
21,807.83 |
|
| Depots, Stations &c |
|
|
187.42 |
|
| Real estate and right of way |
|
|
1,387.25 |
|
| Wharf |
|
|
644.76 |
|
| General expenses |
|
|
10,627.47 |
|
| Interest and commissions |
|
|
1,078.58 |
|
| Attorneys' fees and expenses of
litigation |
|
|
13,105.35 |
|
| Expenditures for this fiscal year,
ending April 1st, 1861 |
|
|
|
504.986.13 |
| Total expenditures up to April 1st,
1861 |
|
|
|
$589,216.29 |
| Cash inn hands of Treasurer, April
1st, 1861 |
|
|
|
11,215.40 |
|
|
|
|
$600,431.69 |
|
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In the statement of Expenditures it will be observed that
$61,952.20 have been paid this fiscal year for negroes, making with
the purchases of last year the sum of $118,401.90 invested by this
Company in negro property. Of the force thus purchased two are dead,
viz: Solomon, a faithful man, and Charles, who was shot and killed,
while runaway, by some unknown person. Steps have been taken to
investigate this affair with the view of a criminal prosecution, and a
recovery also of the value of the negro.
|
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The Company's force now consists of 70 men, 11 women and
4 boys. Full information in regard to the manner in which this force
has been employed, and the results, are given in the accompanying
Chief Engineer's report.
|
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It will be seen by the Treasurer's report that 266 of the
city bonds have been realized since the last report. Of these 15
became due on the 1st of January last, and were redeemed by the city;
the remainder were sold at par, the company receiving the accruing
interest to the date of sale.
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According to the last annual report, 79 bonds were sold
up to its date. The Company now hold, therefore, 655 bonds. Of these
72 are to be paid to Messrs. John Rogerson & Co. for rails and
fasteners, leaving in the hands of the Company 583 bonds, after paying
for the rails, &c.
|
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These bonds and the unpaid stock, $167,393.52, constitute
the present resources of the Company.
|
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The Directors, upon careful consideration, have thought
it most advisable to endeavor to contract with responsible parties
familiar with the management of steamboats, for the transportation of
freight and passengers from the east bank of the Tensas river to the
city of Mobile. The Chief Engineer is now advertising for proposals
for such a contract. It is hoped that some suitable party will come
forward with offers such as the Directors may deem advantageous for
the Company to accept. Otherwise arrangements will have to be made
during the summer for this business to be done by the Company itself.
The Directors do not intend to establish a depot on the east bank of
the Tensas river.
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The Directors have made a favorable contract with the
American Telegraph Company for a telegraph upon the road. That Company
has in consequence established a telegraph line on the road, which is
now in operation.
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The Directors have thus given a general statement of
their operations and of the affairs of the Company. It can now be
hardly doubted, from the progress heretofore made, that had the
Directors been permitted to prosecute the enterprise from the
beginning, without the embarrassments of litigation, all the bonds
could have been negotiated last spring on terms favorable to the
Company, all the rails and bridge materials would have been delivered
in season, and the work of construction would have been so pressed
forward that the road could have been running to the Tensas river
early in this summer, and to the city by the latter part of 1862, or
early in 1863.
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The consequences would have been that the road would at
an early date have been in operation, and in the receipt of an income
which would soon have relieved the city from the payment of the
railroad taxes, and the Company would not have been compelled to incur
expenses for litigation, which, as will be seen in the statement of
expenditures, have been by no means light.
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In conclusion, the Directors are pleased to be able to
inform the stockholders that the present state of the work and the
financial condition of the Company, authorize them to announce that, if
the monthly calls for stock are punctually paid, the line will be,
notwithstanding the many difficulties encountered, in operation to the
Tensas river by railroad, and thence to the city of Mobile by
steamboat, in the month of September next, unless prevented by a
shipwreck of rails, or some other interposition out of the control of
the Directors.
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Wm. D. Dunn
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President
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Office of the Mobile & Great Northern Railroad Company
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Mobile, April 3d, 1861
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