| Annual Report of the Nashville &
Chattanooga RR |
| as of July 1, 1861 |
| President's Report |
| |
| Report of the Directors |
| |
| Office Nashville & Chattanooga R. R.
Co. |
|
August 13, 1861
|
| |
| A change made by the
stockholders terminating the fiscal year of the company on the 30th of
June, instead of the 30th of November, as heretofore, requires, at
present, a report to you of the operations of the company for the
seven months preceding the 30th June past. |
|
The accompanying reports, from the superintendent of
transportation, treasurer, and engineer, relieve the board of
directors from any elaborate statement of the condition and operations
of the company for that time, and to which, for information in detail,
the stockholders are respectfully referred.
|
| By these reports it will be
seen that the business of the road for the seven months was as
follows: |
|
Earnings |
|
| From passage |
$459,528.46 |
| From freight |
322,323.99 |
| From mail and other sources |
18,939.68 |
| Total earnings |
500,792.13 |
| Ordinary expenses |
250,521.13 |
| Leaving as net earnings the sum of |
250,271.00 |
| Out of this has been paid for interest on funded
and floating debt, extraordinary repairs, new freight houses,
twenty new freight cars, &c., the sum of |
87,961.45 |
| Leaving as net profit the sum of |
162,309.55 |
|
|
As compared with the corresponding seven months of the
previous year, the earnings and expenses of the road are as follows:
|
| Total earnings for the seven
months of the year 1859-'60, $431,735.57. And for the same months of
the year 1860-'61, the sum of $500,792.13; showing an increase of
earnings on the seven months' business of $69,056.56. |
| The expenses of 1859-'60 were |
$234,591.30 |
| And were in 1860-'61 |
250,521.13 |
| Giving of increased expenses the sum of |
18,929.83 |
| Which being deducted from increased earnings, as
stated above, of |
69,056.56 |
| Leaves as net increased profits on the seven
months' business the sum of |
50,126.73 |
|
| The floating debt of the
company, contracted mainly on account of the purchase of $200,000 of
the company's stock from the city of Nashville, and for permanent work
on the road between Stevenson and Chattanooga, as stated in our report
of December last, has, during the last seven months, been reduced by
the sum of $29,356.23, and might, with the available assets of the
company, be paid off at any time. But as the design has been to pay
this debt out of the surplus, after payment of expenses and
dividends, this board advises an adherence to that policy; provided a
portion of the debt can be extended until it can be paid off with such
surplus. |
|
This debt, at the close of last year, was held in New
York, where, heretofore, this company has had no difficulty in
commanding the use of money on moderate terms, on pledge of such
collateral security as it had to offer in the form of State bonds. The
altered state of the political relations of the country induced the
necessity of transferring this debt to the south; and if it can be
extended in part, the finances of the company, as will be seen from
the treasurer's report, are in a condition justifying the declaration
of a dividend among the stockholders. But owing to the deranged and
unsettled condition of financial affairs, and the uncertainty as to
the business operations of the road, the directors have deemed it most
prudent to hold some reserve strength, and postpone the question of
dividend until the meeting of the board in October, by which time more
may be known of the business prospects of the road for next season.
|
| The advantages expected from
a lease of the McMinnville & Manchester railroad have not been
realized, and at the end of five years from its date, (15th December,
1857,) should be terminated in accordance with the stipulations of the
lease. When taken, it was confidently expected that the railroad then
being built north of McMinnville, having the usual State aid, with
liberal county and individual subscriptions, would long before this
time have been in operation, throwing a heavy business on that road,
and much, in addition, on our main line. But the extension having
failed, the McMinnville & Manchester road lacks the necessary
amount of business to make it self-sustaining with all the economy
which can be introduced into its management. |
| The business of that road for
the seven months ending the 30th June has been as follows: |
|
Earnings |
|
| From passage |
$4,604.88 |
| From freight |
4,709.52 |
| From mail |
1,020.81 |
| Total |
10,335.21 |
| Expenses |
5,112.41 |
| Leaving of net earnings the sum of |
5,222.80 |
|
| After applying all the net
earnings of the road since the date of the lease towards the payment
of the interest on its bond debt and towards its sinking fund there
remains to its debit on that account the sum of $61,431.46, which our
company has paid. Besides this, our company holds the bond of that
road for $10,000 more, on account of aid in freights given in its
construction, making in all the sum of $71,321.46, exclusive of
interest. |
|
The Nashville & Northwestern railroad, which has
always been regarded as the direct extension of our line to the
Mississippi river, and its most important tributary, now, with
four-fifths of its work done, is likely to be greatly delayed, if not
altogether defeated, in its completion, on account of the great
depreciation of State bonds appropriated to the work, and the
impossibility of making them available for its prosecution.
|
| Our road is mainly dependent,
for permanent and profitable business, upon this extension, which, if
made, will give us uninterrupted communication, all the year, with the
trade and travel of the upper and lower Mississippi and country
beyond. |
| In view of its great
importance to us, and the great loss which we must sustain in its
failure, the directors have thought proper to submit to the
consideration of the stockholders the propriety of aiding that company
by the indorsement of its bonds to an amount not exceeding two hundred
thousand dollars. Upon satisfactory assurance that this help will
prevent a forfeiture of the road to the State, and insure its
completion, the directors recommend to the stockholders that this aid
be given, not doubting that the net profits of our road resulting from
the completion of this extension will amount to much more than any
contingent liability which we may incur on that account. |
| This aid should be given from
the same motive which induced the Georgia Railroad and Banking Company
to aid to the extent of $250,000 the building of our road, which was
to enlarge their business and thereby increase their profits. They
paid the money, while we only propose to lend our credit, and will
have nothing to pay if the road shall half realize the expectations of
its most intelligent friends and projectors. Copies of the resolutions
passed by the board of directors on this subject are herewith
presented for the consideration of the stockholders. |
| The heavy embankments
required to fill the high trestles in Raccoon mountain have been
completed since your last meeting, and the work is far advanced in
filling the long trestle on Long island. The work of converting the
old Stringer track to one on cross-ties has been steadily prosecuted,
as the was required by the condition of the timber in the track, and
but thirty-nine miles on the whole line remain now to be changed. The
road is in good, safe condition, though of uneven surface in many
places, owing mainly to the settling of the road bed where the earth
surface has been disturbed in remodeling the track. This is being
remedied by raising the sunken ties, using rock ballast where required
by the character of the material forming the road bed. |
| The new Howe's truss bridges
have been weather-boarded, covered with tin, and painted. |
| Several new depot buildings
have been erected, and all have been put in an improved condition for
the accommodation of the local business which it is hoped the abundant
crops of the present season will afford. |
| Much heavy ditching has been
done in Crow Creek bottoms and elsewhere, as required by a late act of
the Alabama legislature, to give drainage to burrowing pits sunk in
the construction of the road, which subsequently formed ponds of
stagnant water deemed prejudicial to the health of the adjacent
country, and as constituting a nuisance which, by special law, the
company was required to move or be subject to a heavy penalty. |
| Indeed, it should be a matter
of congratulation that the road, in all its appliances, including its
depots, sidelings, workshops, cars, and machinery, is, under a heavy
current business, constantly improving in its capacity for a still
larger one; for which the company is much indebted to the energy,
skill, and fidelity of the respective superintendents of the
transportation, machinery, and road repair departments, and to the
industry and watchful care of those filling subordinate positions in
them. |
| For a statement in detail as
to the condition of the work on the Jasper road, reference is
respectfully made to the engineer's report, from which it will be seen
that something more than half the work required to prepare for the
iron rails has been done, and that the work is progressing
satisfactorily. |
| V. K. Stevenson |
| President |
|