| Annual Report of the Mobile & Ohio RR |
| as of April 1, 1862, |
| President's Report |
| |
| Fourteenth Annual Meeting of the
Stockholders of the |
| Mobile & Ohio Rail Road Co. |
| Held in Mobile, May 7, 1862 |
| |
| To the Stockholders of the Mobile &
Ohio Rail Road Company |
|
The President and Directors of your Company present the
following Report of their proceedings for the past year:
|
| We are passing through
extraordinary times, when all the industrial interest of the country are
prostrated, and in many instances entirely destroyed. Your Road running
from a Blockade at Mobile to a blockade at the mouth of the Ohio meeting
hostile fleets and armies at both points, has had its commercial
connections broken up North and South, and has consequently been a great
sufferer. The shipment of cotton, heretofore our source of income, has
been entirely suspended. The shipment of provisions and supplies from
the Northwest, our next most important interest, has also been broken
off, while those from Kentucky and Tennessee have been reduced to less
than one fourth of what they would have been under other circumstances. |
|
Our income from Earnings for the past year has been one
million two hundred and sixty five thousand three hundred and
eighteen dollars and thirty five cents. ($1,265,318.35) Our Expenses
during the same period have been six hundred and seventy eight
thousand, one hundred and forty seven dollars and ninety four cents
(678,147.94). It will be seen by Reference to our last Report that
this shows an increased per cent of Expenses on the years income.
This has been produced by the low rate fixed for the transportation
of Troops and munitions of war, for the army and the high prices of
provisions and supplies used in operating the road, we have carried
for the Government at about one half of ordinary rates, while our
expenses have been necessarily increased. Not only this, but a great
many persons connected with the army have passed over our Road
without paying anything. Under these circumstances it is only
remarkable that our income has been as good and our expenses as
small as they have been. |
|
In former Reports reference has been made to large
hypothecations of our ???, made chiefly in the early stages of our
progress, to secure floating debts contracted for the purchase of
Rails and rolling stock. The policy of getting these hypothecations
Securities released and removed from danger of forced sales and
sacrifice, has been perseveringly adhered to. We have recently paid
the debt of three hundred thousand dollars to the State of Alabama
and the Bonds pledged as collaterals have been returned to us by the
Governor. Our indebtedness of one hundred thousand dollars to the
Estate of Wm. Jones jr and other liabilities of smaller amounts,
have also been paid, and the collaterals returned, our income Bonds
falling due in 1861, 1862, and 1865 are being taken up by the
substitution of Sterling Bonds; and we feel sure, that all danger of
forced sales is gone, and that our Sterling Bonds rest in a ?????. |
|
Since our last report our floating indebtedness has
remained two hundred and twelve thousand five hundred and fifty nine
dollars and sixty nine cents. The sales of our Bonds have been
nearly suspended, but will be recommenced as soon as the condition
of the Country will permit. Sales will be made payable in our
Sterling Bonds at par, thereby making the sales of our Lands operate
as a sinking fund to take up our funded debt. This we think will
give increased facilities to purchase in making payments for Lands
and by creating a demand for Bonds will enhance their value. |
|
On a review of our condition, gloomy as outward
appearances are our financial prospects have very much improved
since our last Report. A great deal however depends on how much of
our Road and its Machinery may hereafter be destroyed by the war. If
peace can be restored within a reasonable time and commerce and
trade resume their proper channels everything justifies the believe
that the importance of this great enterprise has never been
overestimated. |
|
The detention of our Chief Engineer and General
Superintendent on duty at Corinth has put it our of his power to
make his Report in time for this meeting. |
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All of which is respectfully submitted.
|
|
Milton Brown, President
|
|
Mobile & Ohio Rail Road Company
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