| Annual Report of the Memphis & Ohio RR |
| as of October 1, 1861, |
| President's Report |
| |
| Office of the Memphis & Ohio Railroad Co. |
| Memphis, Tenn., October 1, 1861 |
| |
| To the Stockholders of the Memphis &
Ohio Railroad Company: |
| The President and Directors,
in obedience to the requirements of the Charter of your Company, submit
their Annual Report of the operations of the Road, and the condition of
its affairs. |
|
Herewith we hand you also, the reports of the General
Superintendent and Treasurer, from which you may learn the details
of its management. |
|
As the Seventh Annual Report, submitted at your meeting
last October, has not been published, we deem it proper to devote a
portion of this report to the discussion of subjects properly
belonging to that report. |
|
The entire line from Memphis to Paris, a distance of one
hundred and thirty and seven-tenths miles, was completed on the 11th
of May, 1860. The alignment of the Road is equal if not superior to
that f any Road in the country. From Brownsville to Paris it i
almost a tangent, being ninety-two per cent straight and the balance
a radius of curvature as not to interfere with the highest rate of
speed. The gradients of the Road are generally light, for the
greater part not exceeding fifty-two and eight-tenths to the mile,
while on most of the important Railways in the country a minimum
grade of seventy, eighty and even as high as one hundred and sixteen
feet per mile, are not deemed objectionable. The cuts and fills are
constructed with flat slopes, and of such width as to ensure
thorough drainage of the road-bed. |
|
The country traversed, particularly north of Brownsville,
is not favorable for cheap construction. The streams of the country
are very numerous, and ar generally crossed ar right angles to the
course, the ridges are abrupt, and the valleys of the streams are
wide, requiring heavy embankments or extensive trestling. |
|
The straight line of Road, wide road-bed, and low maximum
grade, have greatly increased the first cost of the Road;
nevertheless we think the wisdom of the policy pursued in its
construction will be fully appreciated hereafter. |
|
Foreseeing the importance of the Road, forming as it does
a link in the great line of Roads extending from New Orleans to
Louisville, and occupying a prominent position with reference to the
South-western and North-eastern system of Roads, and perceiving that
we should become competitors for the mighty stream of trade and
commerce of the Ohio and Mississippi valleys, the Directors have
steadily borne in mind the necessity of constructing the Road so
straight and with such low grades that it could not be superseded by
rival routes or surpassed in point of speed and safety. |
|
In this respect the Directors have done nothing they
would undo. They believe their polic will be vindicated by the best
of all tests experience, and they point with pleasure to the fact
that since fhe firs train passed over the Road to this day,
notwithstanding that freshets, severe winters, and other causes,
have interrupted the running of nearly all neighboring lines, this
Road of yours has not ceased to be run with precision for a single
day, except in obedience to military orders; and what is still more
remarkable, not a single passenger has ever been injured while
passing over the Road. |
|
The timber found in the region contiguous to the Road,
owing to its porous character and the humidity of the climate,
rapidly decays. Scarcely had the Road been finished to Paris before
it became obvious that the bridges, trestling, and cross-ties on the
first fifty miles would have to be renewed. This caused a very heavy
expenditure all of which has been charged to operating expenses. |
|
Almost the entire line from Memphis to Brownsville, has
been relaid with new cross-ties, the wooden bridges, in part,
superseded by superior iron structures, of the most improved
character, and such of the trestling replaced by permanent earth
embankments, and iron trestling in such places as it is necessary to
leave large openings for the passage of water during heavy freshets. |
|
The completion of the Memphis, Clarkesville & Louisville
Railroad, giving you an entire rail connection with Louisville; and
the completion of the Mississippi & Tennessee Road to Grenada,
affording a direct through route to New Orleans and the Gulf Coast,
mark a new and bright era in the history of this Road. |
|
The first through train from Memphis to Louisville was
run on the 15th of April last, making the trip in twenty hours,
which was the most expeditious traveling ever done between those
points. The time has since been reduced to eighteen hours, and will
be still farther reduced upon the completion of the Tennessee River
bridge. It will be perceived that this is the shortest possible
route to Louisville and the East, and that we can never have very
great competition for this travel. This route to Nashville is fifty
miles shorter and four hours quicker than any other competing line.
As an evidence of the unusual advantages this connection will give
us, we refer you to the earnings of your Road since the opening of
the route, compared with the corresponding months last year. It will
be seen that the earnings for May this year, from passengers alone
exceeded those of May, 1860, $12,903.37 or one hundred and twenty
per cent. The increase for June was still greater, amounting to one
hundred and forty-four per cent., and was derived exclusively from
through travel. Our Southern connection will eventually prove
equally advantageous, and will pour a stream of travel over this
Road, which will exceed the most extravagant estimates of its
friends. In fact we may with confidence predict that the business of
the Road, when Commerce resumes its accustomed channels, will
greatly exceed the most sanguine expectations of its projectors. |
|
In previous annual communications, the Directors have
referred to our connections with other Roads, to the character and
extent of the business we may legitimately claim for this Road. |
|
Subsequent reflections have strengthened our convictions,
that ultimately we shall take our place in the front rank of the
great and prosperous thoroughfares of the country. In the spring of
1860 the floating debt of the Company amounted to about $400,000.
Knowing that our through connections North and South would not be
effected for twelve or fifteen months from that date, and seeing
that it would be impossible to liquidate any portion of this debt
out of our receipts from a local business; knowing also that a large
amount of money would still have to be expended in completing and
equipping the Road, the Directors determined to raise a sum
sufficient for these purposes by issuing the Bonds of the Company.
Accordingly they applied to the Legislature, then in session, for
power to issue six hundred thousand dollars of Income Bonds, to be
secured by a deed of trust upon the entire property, rights, and
franchises of the Company, subject to the prior lien of the State.
On the 29th day of February, 1860, the Legislature authorized the
issuance of the Bond, as requested. On the 5th April, 1860, after
due notice, the Stockholders were convened. The act amending the
Charter, and authorizing the issuance of the Bonds, was laid before
them; almost with unanimity they sanctioned the issuance of the
Bonds. Six hundred thousand dollars in ten per cent. Bonds were
issued. The Committee appointed by the Board of Directors for the
purpose of negotiating the same, effected the sale of four hundred
thousand dollars, deeming it impolite at that time to sell any more,
and believing that the money thus obtained would be ample for all
present wants of the Company. The application of the proceeds of
these Bonds will appear by reference to statement marked "C" in the
Treasurer's report. Had the means arising from the sale of these
Bonds been applied exclusively to the payment of the floating
indebtedness of the Company, it would have been entirely liquidated.
But about the time of making this negotiation, the Directors were
applied to by the Memphis, Clarksville & Louisville Railroad Company
for aid. They stated that it would be impossible for them to finish
their Road without assistance. The Directors, considering the
prosperity of your Road, and its future business, depended in a
great degree, upon having the entire line to Louisville completed at
the earliest day possible, did not hesitate to loan the sum asked
for by them -- forty thousand dollars. It is gratifying to the
Directors, and they doubt not it will prove so t the Stockholders,
to know that this loan has enabled the Clarksville Company
successfully to complete their Road, and that it has proved of
incalculable advantage to both Companies. |
|
It must be remembered, while contrasting the present
financial condition of the Company with its condition when these
Bonds were issued, that we have since that time expended $286,676.56
in the construction and equipment of the Road. |
| The total cost of the Road up to this date is |
$3,416,676.58 |
| At the date of issuing the Bonds it amounted to |
3,130,000.00 |
| Expended since April 1, 1860 |
286,676.56 |
|
|
This additional expenditure on account of construction
and rolling stock has prevented the payment of our floating debt,
and as every dollar of it was absolutely necessary, in the opinion
of the Directors, they hope their course will be appreciated by the
Stockholders. It will certainly account satisfactorily for the
existence of the present floating liabilities. |
|
The cost of your Road at this date, as will appear from
statement marked B in the Treasurer's Report, is $3,416,676.56, or
$26,000 per mile, estimating all securities and subscriptions at
par. This result corresponds almost precisely with the estimates
contained in previous reports. The total liabilities, as will be
seen by reference to the Treasurer's Report, are as follows: |
| State of Tennessee |
$1,493,000.00 |
| Company Bonds |
529,000.00 |
| Floating Debt |
269,978.24 |
| |
$2,291,978.24 |
|
|
It will be observed that the cost of the Road exceeds
this sum by $1,124,698.22. The Directors entertain no doubt that
they will be able to pay off the floating debt in two or three
years, and they would especially direct attention to the
recommendation of the Treasurer on that subject. An examination of
the Treasurer's accounts has been annually made by a committee
appointed by the Board, and their report herewith submitted is a
part of this report. |
|
The business of the past year is highly gratifying. The
earnings are as follows: |
| From |
Passengers |
$191,132.21 |
| " |
Freight |
159,936.79 |
| " |
Mails |
6,600.00 |
| " |
Express |
4,651.55 |
| " |
Mileage |
2,950.93 |
| " |
Privileges |
250.00 |
| |
Total |
$365,521.48 |
| |
Deducting operating expenses |
194,098.87 |
| |
Nett profits amount to |
$171,422.61 |
|
|
Of this $133,000 has been paid for interest on funded and
floating debt; $25,000 is due by the State of Tennessee and the
Confederate States, and the balance is in the hands of the
Treasurer, subject to the order of the Directors. |
|
The past year in many respects, has been the most
extraordinary in the history of the country. The accession of a
fanatical sectional party to the administration of the Government,
caused the withdrawal of eleven of the Southern States, and
inaugurated a revolutionary civil war, which has no parallel in the
history of the world. This has resulted in the establishment of a
vigorous republican government over a majority of the Southern
States, united by the holies bands of alliance, with a determination
to achieve their independence or perish together in a common
destiny. That events of such magnitude should transpire without
exerting a depressing influence on the business of your Road could
not be expected, yet in the face of civil war and the distractions
inseparable therefrom, you will perceive that the business of your
Road has steadily and materially increased and that your gross
receipts exceed those of last year by $77,937.83, while your nett
receipts show an increase of $101,962.96. |
|
Had the bridge across the Tennessee River (the completion
of which has been unfortunately delayed from various causes) been
finished at the time this route was opened to Louisville, we may
confidently say our receipts would have been increased $15,000 per
month, or $82,500 from April 15th to the close of the year. This
would have swelled our total earnings to $446,950.08, and would have
added comparatively nothing to our operating expenses. |
|
It is usual in the annual communications of the Directors
to make some estimate of the prospective business of the Company for
the ensuing year; but as the country is in the midst of a political
revolution, such calculations, in our present distracted condition,
must necessarily prove inaccurate and delusive. We can, however, say
that your Road, in time of peace, will be a great artery of
commerce, and in time of war, a powerful arm of defense; and whether
in peace or in war, its influence will be exerted to the utmost to
sustain the South and her institutions. |
|
On the 30th September last, Col. Robertson Topp declined
a re-election to the Presidency of the Road, which position he had
occupied from its organization to that date. It would be unjust to
close this report without alluding to his services. He was one of
its earliest friends and projectors; was elected its first
President, and continued to preside over its management for seven
years. During this period he labored incessantly, with his
characteristic zeal, for the promotion of the Company's interest;
sustaining it by his talents, his influence, his private credit, and
his money, in every emergency, through all its trials, reverses and
gloomy surroundings, bringing it to a successful completion, and
establishing it upon a sure basis of future prosperity. The
importance of your Road to the new Confederacy, as a powerful
auxiliary in defending its soil from invasion, cannot be over
estimated, and we are indebted to Col. Topp, in a great measure, for
its existence. It is but proper to place this testimonial upon
record, in recognition of his services. |
|
Col. Topp was succeeded by D. B. Molley, Esq., who
continued to discharge the duties of the position with faithfulness
and fidelity until the 26th of March last, when, in order to give
his undivided attention to private affairs, then devolving upon him,
he tendered his resignation. |
|
The President cannot close this communication without an
allusion to the Directors, nearly all of whom have served without
compensation from the inception of the project to the present time.
Their official position has not been unattended by anxiety and
responsibility. Their acts have been often misunderstood, and not
unfrequently misrepresented, With a disinterestedness and devotion
worthy of the highest commendation, they have constantly freely and
liberally pledged their private, property and credit in the
prosecution of the work undertaken by the stockholders and entrusted
to their charge. This they did took when doubt hung a gloomy veil
over final success. Many pretended friends were ever ready, by their
predictions of ultimate failure to destroy the confidence of your
chosen agents instead of offering succor and encouragement, to
sustain them in their arduous undertaking. If success followed their
voluntary proffers of means and credit, no reward awaited them,
except the consciousness of having well and faithfully performed a
public duty. If they failed in their endeavors to accomplish the
task assigned them, the would be the greatest sufferers in name and
estate. Their efforts, however, have been crowned with success, and
the Memphis & Ohio Railroad will be a lasting monument to their
public spirit, zeal, indomitable energy and perseverance. |
|
In closing this report it only remains for the President
and Directors to testify, which they do with the greatest pleasure
and entire unanimity, to the faithful manner in which the several
officers and agents have discharged their respective duties. |
|
Respectfully submitted, |
|
J. P. Wood, President |
|