AR, NOJ&GN 3/1/1861 P
Annual Report of the New Orleans, Jackson & Great Northern RR
as of March 1, 1861
President's Report
 
Report of the President and Directors of the New Orleans, Jackson  & Great Northern Railroad Company, to the Stockholders, showing the operations during the fiscal year ending 28th Febr'y, 1861
 
Gentlemen,
   When the present Board of Directors first entered upon their duties, (on the 17th April, 1860,) it was found that there was a large amount of liabilities matured and maturing in a short time, for which the previous Board had made no provision, and to meet which, the present Board were compelled to raise nearly three hundred thousand dollars, on the individual credit of the Directors, and on that of some of their friends.
   The amounts due and unprovided for on the 17th April, 1860, were as follows:
Accrued Interest and Sinking Fund on first mortgage bonds $94,000.00
Back pay rolls for February and March 50,000.00
Due Cocke, Bradford & Co. to 1st April 15,300.00
Outstanding bills for materials, &c (estimated) 50,000.00
Balances due foreign railroads and other accounts, say 20,000.00
To this amount add items maturing to 1st July, 1860, as follows:
Bills payable, say $125,000.00
Earnings of Cocke, Bradford & Co. from 1st April to 1st July 20,500.00
Balance of Interest & Sinking Fund due on first mortgage bonds on 1st July 66,000.00 $211,500.00
   Total due to 1st July 1860 $440,800.00
We have been compelled to receive seven Locomotive Engines, (which had been contracted for by the previous Board,) against our strong efforts to cancel the contract; as they were not required for the business of the road, and none of them have to this date been attached to a train. The cost of these engines, with two others delivered in November, 1859, but not settled for until April, 1860, is, say $86,000.00
Contracts for Passenger and Freight Cars had also been made, many of which cars have not been used, costing 54,000.00
We have also settled with Cocke, Bradford & Co. for their final estimate for work done north of Canton, with the exception of a balance of some $7,000 still to their credit 32,500.00 $172,500.00
$613,300.00
   Amounting in all to $613,300, the whole of which (with the exception of $125,000 bills payable, included in the above figures) the present Board have had to provide for, over and above the general liabilities of the Company, as reported by the former Board of Directors as liabilities under the head of bills payable.
   These items, with the disasters of October and November, alluded to hereafter, will, in a great measure, account for the present embarrassed condition of thee Company.
   The Mail earnings for the balance of the year ending January 1st, 1861, we found, had been anticipated by their pledge as security for a loan obtained to the extent of $30,000.
   By the Treasurer's Report, the receipts from all sources during the year ending February 28th, 1861, have been, including the balance on hand $1,873,609.35
Disbursed during the same period, for Operating the Road $747,461.28
For graduation, mostly for the extension beyond Canton 166,297.68
For iron rails and fastenings on hand, at depot in New Orleans 126,118.37
For locomotives, cars and tolls 152,628.90
For real estate, right of way, surveying & engineering, fencing, &c 34,600.74
For building Way Stations and improvements to Depot Grounds, &c 43,508.52
For interest on first mortgage bonds and other interest accounts 213,331.09
For expenses, contingencies, law charges, &c 40,420.88
Balance on hand, chiefly in bills receivable for stock subscriptions in Mississippi, and amounts to debit of sundry agents and others 349,241.89 $1,873,609.35
   We redeemed on the 1st July, 1860, (after due public notice,) from the lowest bidder, fifty-nine of our first mortgage bonds, for the sum of forty-nine thousand five hundred and thirty dollars, which reduces the mortgage by the amount of fifty-nine thousand dollars.
   By the General Superintendent's Report, it will be seen that the Earnings of the road during the twelve months were, from
Freight $649,599.04
Passengers 520,624.60
Mails 62,400.00 $1,232,623.64
   The expenses during the same time have been
For maintenance of way 251,109.28
For motive power 212,772.80
For conducting transportation 187,873.47
For steamers and other expenses during overflow of October and storm of November, 1860 27,327.39
For stock killed in Mississippi 9,277.58
For maintenance of cars 49,100.76
Add outstanding and unpaid bills 28,106.66
$775,567.94
From which must be deducted the amount paid during the present year, for materials and labor for the previous year, as pr. bills 98,378.24
$677,189.70
   Total earnings of Road in 1861 $1,232,623.64
   Total cost of operating the Road in 1861 677,189.70
   This amount includes all the extraordinary expenses caused by the overflow in October, and storm of November, 1860; also the repair damage from the floods of Pearl River and Tangipahoa; also the building of three division houses; near four miles of second track and sidings, and five miles of fencing; which ought properly to be charged to construction of road
   Leaving the net earnings 555,433.94
Or 45 per cent of gross earnings, which will compare favorably with any road in the country.
   The gross earnings, as shown by the Report for the year previous, during eleven months, from April 1st 1859, to February 29th, 1860, were $999,510.92
The expenditures were 670,065.62
   Showing the net earnings of the Road, during the eleven months ending 29th February, 1860, to have been $329,445.30
   By which it will be seen that the actual expenses for the eleven months ending February 29th, 1860, ($670,065.62,) were only $7124.08 short of those for the full year ending 28 February, 1861, ($677,189.70,) while the increase of receipts for the corresponding time was $233,112.72.
 
The debt due and outstanding February 28th, 1861
Loans received of the State of Mississippi, maturing in 1863, 1864 and 1868 $215,000.00
Bills payable maturing in 1861, 1862, 1863, 1864 and 1865 $665,237.35
Pay master bills payable, maturing within 60 days 54,150.00
Amount due sundry persons, on account of outstanding bills and balances due other railroads, and other balances 39,126.63
Balance due on pay roll account 67,203.06
Coupons on first mortgage bonds due 1st January, 1861, say 110,000.00 935,717.04
The first mortgage bonds, (due in 1886) now outstanding, amount to 2,665,000.00
   Making the total liabilities of the Company $3,815,717.04
   Besides the above, the Interest and Sinking Fund due on the 1st July next, 1861, will amount to about $160,000.00
   The floating debt, as reported on the 29th February, 1860, (exclusive of the Mississippi loans,) under the head of bills payable, amounted to $617,766.41
To which should be added for unsettled debts; for graduation done; material and labor for construction; and Road expense accounts assumed by this Board $158,659.59
And liabilities for contracts made prior to the incoming of the present Board, for locomotives & cars $140,712.49  
Graduation Cocke, Bradford & Co's contract 45,822.45 186,534.94 345,194.53
The floating debt on 1st March, 1861, (exclusive of loans of the State of Mississippi,) is 935,717.04
   Showing a reduction of $27,243.90
To which should be added the following items in round numbers, to make up the amount of the net earnings of the Road for the year ending 1st March, 1861, say
Iron rails 126,118.37
Interest on first mortgage bonds p'd July, 1860 110,000.00
Interest paid on loans and renewals 82,780.07
Depot grounds, buildings and improvements 43,508.52
Real estate, right of way, fencing, bridging, &c 18,443.35
Graduation between New Orleans and Canton, on line of road 33,653.22
Expense, advertising, law charges, contingencies, &c 40,420.88
Engineering, and surveying 16,157.39
Uncollected mails $20,800.00
Uncollected freight 34,430.00 55,230.00
And other miscellaneous accounts, pr. statement B 1,878,24
$555,433.94
   We have prepared, and have ready for issue, a second series of Construction Bonds, secured by a first mortgage on that portion of the road between Canton and Aberdeen, Mississippi, and a second mortgage upon the road and machinery between New Orleans and Canton, for the sum of Three Millions of Dollars, payable thirty years from October 1st, 1860, bearing interest at the rate of eight per cent. per annum, with coupons attached, payable semi-annually, on the 1st of April and 1st of October of each year.
   None of these bonds have been sold up to this time, but a portion of them have been pledged to secure the payment of notes issued for iron rails, machinery and renewals.
   We have on hand --
45 Locomotives, (7 of which have never been attached to a train)
37 Passenger Cars, (11 never having been used,)
10 Baggage and Express Cars
503 Freight and Hand Cars
   The Engines during the last nine months have run (no record having been kept for the previous three months) 405,650 miles.
   The average cost for Engines per mile run, has been
For wood 5 9/10c
For oil, tallow and waste 1 1/10c
For material and labor 5 2/10c
   The number of bales cotton transported during the year, 181,509.
   The number of passengers, (without a single injury of a serious nature,) 165,677.
   The road is in complete repair, and equal to any first class road in America. The repairs rendered necessary from the storms of October and November, having all been completed in the most substantial and permanent manner, will prevent any interruption from the usual ordinary storms in future. The extraordinary storms and floods of October and November last (which only occur at long intervals of about fifteen years) have shown the necessity of raising the level of the road for a distance of ten miles, along the valley of the Tangipahoa, about two feet, and the same height along the Pearl River, below Jackson, for a distance of two miles.
   The crib work along the Lake shore must also be filled in, and the level of the road raised two and a half feet, from Bayou La Branche to Pass Manchac.
   This work can be done in the next two years, by additional laborers being added to those necessary to make the general repairs, without interfering with the general traffic of the road. The cost of the whole of the above will be about fifty thousand dollars: this will secure the road completely against all possible interruptions in future, from similar causes.
   It was a mistaken policy of the engineers who had charge of the construction of the road, who, to save a small amount on the first cost of the construction, fixed the levels on these portions of the road below high water mark, from which the road has suffered in loss of business, reputation and extraordinary repairs, not less than One Million of Dollars since its construction.
   From a careful estimate based upon the workings, during the last nine months, there can be no doubt the gross earnings of the road from all sources, for the current year, will be $1,500,000.00
   And the total expense of operating the road, and keeping both the Road and Machinery in complete repair, will not exceed 600,000.00
   This will leave (after paying the interest on the first mortgage bonds, amounting to $240,000, and $100,000 to the sinking fund) $560,000, to be applied to the payment of the floating debt of the Company.
   The road was completed to Canton, Mississippi, a distance of two hundred and six miles, with a single track, and the necessary turn-outs and sidings for transportation of freight and passengers, in the month of March, 1858.
   The cost up to February 28th, 1861, has been, for the 206 miles of Road, with the bridges, depot buildings, division houses, iron rails, wood and water stations, real estate, right of way graduation, labor and material of all kinds, $5,570,452.65
For locomotive engines, cars, tools and machinery 1,040,729.52
Expended for graduation, &c, north of Canton, say, 418,392.18
For iron rails now on hand at the depot, ready for laying on the extension -- 17,242 bars, weighing 3,054 1/2 tons, sufficient to lay 35 miles, cost, say, 126,118.37
   The graduation of twenty-six miles immediately north of Canton, Mississippi, is complete, and now ready for the rails -- fourteen miles more are under contract, and being rapidly completed; the payments for which, by the terms of the contract, are made by the subscriptions obtained along the line, from the property holders.
   An additional section, nine miles in length, extending from the city of Aberdeen, to the intersection of the Mobile & Ohio Railroad, is being graded, and the contract for laying the iron has been made upon the same conditions.
   There can be no doubt that the road will be extended to Kosciusko, within twelve months from this date, and Aberdeen connected by rail, by the way of the Mobile & Ohio and the Southern Roads, with New Orleans, on or before January next, 1862.
   We have built for the protection of the depot buildings and machine shops, at a cost of $9,000, and Iron Tank or Reservoir, of a capacity to hold 375,000 gallons of water, by which, with the connecting pipes and hose, the freight sheds and machine shops can at any time be flooded with water, in case of danger from fire. With a view to extend our cotton yards, we made two lines of embankment through our property below Claiborne Street, and laid the cross-ties and iron; it was absolutely necessary to the trade of the road, and will have to be extended. The machine shops must be removed as soon as practicable, from their present situation, to the Company's property beyond Claiborne street, and should be permanently built of fire proof materials. By this means, the present cotton and freight yards will be sufficiently enlarged, to amply accommodate the increasing business of the Road.
   We have been compelled to re-survey the whole line of the Road, from the State line to Canton, in order to ascertain the lines of the various properties through which we pass, the right of way having been but partially obtained, and suits for heavy damages being constantly brought against the Company for trespass. These surveys have been completed, the necessary maps and plans made out, and our attorneys are now ready to commence the necessary legal proceedings to obtain titles to the land over which the Road passes.
   The necessary preliminary surveys have been made, under the immediate charge of the assistant engineer, Mr. Miller, between Kosciusko and Aberdeen, to ascertain the best practicable route, and the necessary maps and profiles are now being made out.
   To connect that portion of the Road between Kosciusko and the Aberdeen division, at the crossing of the Mobile & Ohio Railroad, a distance of seventy-three miles, with the necessary sidings and turnouts, will cost about one million five hundred thousand dollars. To meet this, we shall have to rely upon subscriptions obtained along the line of the Road and its vicinity, from the planters and resident property holders, and by the counties through which it passes, which are daily increasing; also, the proceeds of the second series of bonds, already alluded to, as now ready for negotiation. Should these resources be insufficient, it will be necessary to devote the net earnings of the Road, after paying the floating debt of the Company to this purpose.
   Should the earnings of the Road be thus applied to the construction of the Road beyond Canton, it will require at least three years of its revenue for its completion to Aberdeen, say 1865, until which time no dividend can be declared.
   A new and commodious Depot should be built at Canton, for the accommodation of passengers, with sufficient platforms and sheds to enable us to exchange freights with the Mississippi Central Railroad. By this change, we will save nearly all the amount paid for lost and damaged freight, under which head, we paid last year $11,760.10. New Depot buildings are required at Terry, Osyka and Kenner stations, and the sidings extended still further, to accommodate the increasing business. It will be to the interest of the Company to encourage the building of manufacturing establishments and private dwellings along the line of Road; also, agricultural improvements , by so arranging the prices for freight and passage as to induce their location in the vicinity of the Road. The local and way traffic already exceeds the through travel and freights.
   Notwithstanding the resolution passed at the last annual meeting of the stockholders, prohibiting the issue of any free passes, we have been constantly annoyed by applications for them, which are not confined to objects of charity. The most persistent in their demands are those who have the least claims.
   The Legislature of the State of Louisiana has amended the charter of the Company, by repealing the tenth section of the act of incorporation, subject, however, to the approval of the stockholders. This amendment, to become a law, requires a vote of three-fourths of the whole number of shares subscribed; and the vote will be cast on this question on the 15th of April next, at the time of the election for directors for the ensuing year.
   This change in the charter does not deprive the stockholders of their voice in any contemplated amendment, now or at any future time, as may be seen by reference to the 11th section of the act of incorporation.
   The following statements make a part of this report:
   A. Report of the receipts and expenditures of the Company, from its organization to 28th February, 1861.
   B. Report of the receipts and expenditures of the Company, for the year ending 28th February, 1861.
   C. Statement of bills payable.
   D. Statement of loans received from the State of Mississippi.
   E. Statement of the disposition of 3000 first mortgage bonds.
   F. Report of the General Superintendent.
   G. Statement of the earnings of the Road for the twelve months ending 28th February, 1861.
   H. Statement of the earnings from passage and miles traveled.
   I. Statement of the character, condition and mileage of the different locomotives.
All of which is respectfully submitted,
H. J. Ranney
President
New Orleans, April 6th, 1861

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