AR, N&C 7-1-65 R

AR, N&C 7/1/1865 R

Report of the Nashville & Chattanooga RR

Covering December 1, 1860 to July 1, 1865

Committee's Report

Report of a Committee Appointed by the Board of Directors Showing the Business and Financial Condition of the Nashville & Chattanooga R. R. Co, From December 1, 1860, to June 30, 1865.

Committee:

Col. James H. Grant

W. S. Huggins, Esq.

Thos. C. Whiteside, Esq.

Report of the Committee

Nashville, January, 1866

To the President and Directors of the N. & C. R. R. Company --

Gentlemen,

In conformity to your resolution appointing us a committee to examine the books of the Company, from the 1st of December, 1860, to the 1st of July, 1865, and report thereon, we respectfully submit the following:

We find in our examination of the books, that as far as the business transactions of the Company appear on them, they are correct.

We herewith hand you a tabular statement, furnished by the Treasurer, marked (A) showing the financial condition of the Company on the 1st of July, 1865; also, statements marked (B), (B') (B'') and (B''',) showing the earnings and expenses of the road for the fiscal years of 1862-'3-'4 and '5.

Table A

Statement showing the Condition of the Books of the Nashville & Chattanooga Railroad Company to July 1st 1865

Dr.
Capital Stock			$2,056,543.64
Company's Bonds, endorsed		$1,650,000.00
Less amount surrendered and cancelled by State of Tennessee		104,000.00
		1,546,000.00
Company's Bonds, endorsed		23,000.00
Bonds of the State of Tennessee		150,000.00	$1,719,000.00
Equipment Account		48,010.00
Suspense Account		1,064.75
Profit & Loss, as per last Report		541,994.99
Profit for year ending June 30, 1862	219,951.36
" " " 30, 1863	635,580.27
" " " 30, 1865	88,963.43
	944,495.06
Less loss for year ending June 30, 1864	85,071.43	859,423.47	1,450,403.21
Floating Debt
Change Tickets Account		1,061.15
Unclaimed Goods sold for C. S. Treasury Notes		32,350.30
" " " Currency		856.21
Unpaid Interest on Bonds to January 1, 1865		354,661.00
Balance due to Individuals and Agents		23,534.54
" " Connecting Roads		17,817.38
Dividends payable in Currency		10,800.31
" " " Southern Bank Notes		18,513.49
Dividends payable in C. S. Treasury Notes		308,043.61
Bills Payable		35,466.18	803,104.17
			$6,029,051.02
Cr.
Road and Outfit, as per last report		$3,733,471.77
Add Permanent Work		112,003.04	$3,845,564.81
Slaves owned at Nashville		7,230.54
" " in Georgia		121,542.75
Real Estate	19,509.12
Vannoy & Turbiville Property	41,950.00	61,459.12
Material on hand left in Nashville, 1862		25,609.85
Stock in East Tennessee Georgia Railroad		150,000.00
		365,842.26
10 Bonds of McM. & M. R. R. Co., $1000 each	10,000.00
Bills Receivable	44,217.23
Balance due from McM. & M. R. R. Co.	31,668.32
Stolen Cash C. S. Treasury Notes	3,450.00
Balance due from Individuals, Agents and connecting Roads	81,317.84
South Carolina R. R. Annuity Bonds	25,000.00	195,653.33
Balance due by C. S. Government on account	126,429.13
Four per cent. C. S. Bond on account	99,638.25
6 & 8 " " " " " "	64,600.00	290,667.38	652,163.03
Assets
137 State Bonds		135,620.54
47 Endorsed Bonds		46,000.00
10 N. & C. R. R. Bonds cost in C. S. Tr'y Notes	10,000.00
Add Old Balance on Bond Investment	429,79	10,429.79
3404 1/4 Shares N. & C. R. R. Stock cost	41,541.75	192,050.33
9 Wills' Valley R. R. Bonds		8,500.00
25 Shares S. I. Co. Stock, cost		414,821.24
Bales Cotton cost 484,886.26
Less for Cotton Sold 202,695.00	282,191.26
Belair Farm	61,266.35
Provisions Account	81,882.49	890,203.09	1,082,253.42
Cash on hand			249,069.76
			$6,029,051.02
Table B
Statement showing the Receipts and Expenses of the Nashville & Chattanooga Railroad Company for the year ending June 30th, 1862
Receipts
From Passage		$373,012.48
From Freight		427,454.92
From Mail		19,963.98
From Rents and Privileges		9,385.89
From Extra Baggage		492.90
From Interest account		4,766.21	$835,076.38
Expenses
Repairs of the Road
Superintendence	$2,983.34
Bridges and Culverts	3,135.11
Cross-Ties and Stringers	2,032.72
Provisions and Clothing	5,693.78
Labor	27,765.66
Iron Rails	14,706.83
Chairs, Spikes and Turn-out Irons	6,167.69
Tools and Repairs of Tools	1,439.12
Road Cars and Repairs of do	1,106.22
Watching Bridges	11,083.17
Division Houses	148.71
Incidentals	429.72
Repairs of Water Stations	1,259.03
Fuel -- Gravel Engines	1,124.56
Labor -- " "	699.16
Oil, Tallow and Waste do	13.64
Repairs -- Gravel Engine	307.08	80,095.54
Motive Power
Labor -- Freight	28,771.34
Labor -- Passage	25,851.24
Material -- Freight	4,327.68
Material -- Passage	2,704.75
Expense of Water Stations -- Freight	1,224.63
Expense of Water Stations -- Passage	1,224.63
Fuel -- Freight	14,751.35
Fuel -- Passage	9,204.91
Oil, Tallow and Waste -- Freight	5,945.31
Oil, Tallow and Waste -- Passage	5,945.31	99,961.36
Maintenance of Cars
Passenger and Baggage Cars	8,575.02
Freight Cars	18,390.49
Oil, Tallow and Waste -- Freight	854.61
Oil, Tallow and Waste -- Passage	916.00	28,736.12
		$208,793.02	$835.076.38
Conducting Transportation
Freight -- Agents, Clerks and Train hands	30,570.72
Passage -- Agents, Clerks and Train hands	14,162.22
Loss and Damage -- Freight	1,210.45
Loss and Damage -- Passage	43.50
Stock Killed -- Freight	822.52
Stock Killed -- Passage	880.53
Incidental Expenses -- Freight	15,084.41
Incidental Expenses -- Passage	5,250.59
Mail Service	405.84
Damage to Employees	40.00
Damage to Individuals	6.50
Charity	231.08
Expense of Telegraph	44.13	68,752.49
Salaries of President, vice-President, Secretary, Treasurer, Superintendent and General Book-Keeper	13,283.34
Printing, Stationery and Advertising	1,719.12
Repairs of Building	1,451.13
Lawyers' Fees and Court Cost	1,512.49	17,966.08	195,511.59
Leaving Nett Earnings			$539,564.79
From which deduct amount paid for Extraordinary Repairs, New Outfit, Interest on Floating and Funded Debt, &c., to-wit:
New Embankments and Masonry		4,342.05
Florence Depot		460.00
Temporary Freight House at Chattanooga		321.40
Interest on Bonds Paid	24,960.00
Interest on Bonds Unpaid	63,451.00	88,411.00
Right of Way		250.00
Exchange		59.28
Interest on State Bonds		1,080.00	94,923.73
Leaving as Nett Profit			$444,641.06
From which deduct one-six per cent. and one five per cent. Dividend declared in 1862			226,308.08
Leaving as Surplus Profit			$218,332.98
And for amount of Worthless Debts collected and placed to credit of Profit and Lost Account			1,618.38
			$219,951.36

Table B'
Statement showing the Earnings and Expenses of the Nashville Chattanooga Railroad Company for the year ending June 30, 1863
Receipts
From Passage		$974,448.05
From Freight		233,776.37
From Mail		17,187.48
From Rents and Privileges		17,392.70
From Lard and Grease Adventure		7,171.34
From Extra Baggage		472.60	1,250,448.54
Expenses
Repairs of the Road
Superintendence	3,719.92
Bridges and Culverts	8,754.91
Cross-Ties and Stringers	6,817.13
Provisions and Clothing	9,630.62
Labor	30,482.96
Iron Rails	2,040.00
Chairs and Spikes	975.90
Tools and Repairs of Tools	807.00
Road Cars and Repairs of do	393.66
Watching Bridges	1,029.50
Division Houses	151.40
Repairs of Water Stations	4,127.45
Fuel -- Gravel Engine	88.50
Labor -- " "	153.75	69,172.70
Motive Power
Labor -- Freight	38,454.92
Labor -- Passage	38,444.98
Material -- Freight	24,035.03
Material -- Passage	24,040.11
Expense of Water Stations -- Freight	1,060.15
Expenses of Water Stations -- Passage	1,059.20
Fuel -- Freight	15,757.15
Fuel -- Passage	15,704.72
Oil, Tallow and Waste -- Freight	6,042.95
Oil, Tallow and Waste -- Passage	6,042.99	170,649.20
Maintenance of Cars
Passenger and Baggage Cars	4,193.34
Freight Cars	4,447.25
Oil, Tallow and Waste -- Freight	339.05
Oil, Tallow and Waste -- Passage	339.05	9,318.69
Conducting Transportation
Freight -- Agents, Conductors and Train hands	22,418.70
Passage -- Agents, Conductors and Train hands	16,085.82
Loss -- Freight	403.46
Damage to Employees	193.00
Stock Killed -- Freight	37.00
Incidental Expenses -- Freight	9,372.57
Incidental Expenses -- Passage	9,083.05	57,593.60
Salaries of President, Vice-President, Secretary and Treasurer, Superintendent and General Book-Keeper	18,499.71
Repairs of Buildings	4,242.80
Printing, Stationery and Advertising	2,424.35	25,166.86	331,901.05
Leaving as Nett Earnings			$918,547.49
From which deduct amount paid for Extraordinary Repairs, New Out-fit, Interest on Floating and Funded Debt, etc., to-wit:
Machine shop at Chattanooga		7,405.22
Interest on Bonds		1,380.00
Interest on Account		1,980.27
Tools for Machine Shop		4,750.00	15,515.49
Leaving as Nett Profit
From which deduct one-three and one-ten per cent. Dividends declared in 1863, amounting to			267,451.73
Leaving as Surplus Profit			$635,580.27

Table B''
Statement showing the Receipts and Expenses in operating the Machinery of the Nashville & Chattanooga Railroad Company for the year ending June 30th, 1864
Receipts
From Passage		$57,592.31
From Freight		623,540.61
From Interest Account		39,521.33
From Privileges		42,120.00
From Extra Baggage		68.50
From Rent of Cars and Engines		179,398.81
From Mail		350.00	$942,591.56
Expenses
Motive Power
Labor -- Freight	74,621.94
Labor -- Passage	30,629.21
Material -- Freight	5,649.84
Material -- Passage	2,147.09
Expense of Water Stations -- Freight	54.00
Expense of Water Stations -- Passage	54.00
Fuel -- Freight	2,103.33
Fuel -- Passage	520.45
Oil, Tallow and Waste -- Freight	14,367.09
Oil, Tallow and Waste -- Passage	7,251.89	137,398.84
Maintenance of Cars
Passenger and Baggage Cars	7,153.72
Freight Cars	52,932.29
Oil, Tallow and Waste -- Freight	528.50
Oil, Tallow and Waste -- Passage	11.00	60,625.51
Conducting Transportation
Freight -- Agents, Clerks, Conductors and Train hands	28,461.86
Passage -- Agents, Conductors and Train hands	5,869.50
Loss and Damage -- Freight	534.50
Stock Killed -- Freight	60.00
Incidental Expenses -- Freight	27,438.77
Incidental Expenses -- Passage	4,327.86	66,692.50
Salaries of President, Secretary and Treasurer, Superintendent and General Book-Keeper	23,599.74
Printing, Stationary and Advertising	928.00
Repairs of Buildings	10.00
Lawyers' Fees and Court Cost	200.00	24,737.74	289,454.59
From which deduct amount of Extraordinary Expenses and Interest on Floating and Funded Debt, to wit:
Passenger House at Chattanooga		145.35
Machine Shop at Chattanooga		5,505.53
Discount on Old Issue		33,597.46
Confederate States Taxes		63,066.67
Side Track at Decatur, Ga.		8,121.58
Machine Shop at Decatur		4,528.45
Expenses of Company, Negroes, Clothing, &c.		7,627.92
Interest on Bonds, amount paid	90.00
" " " unpaid	204,060.00	204,150.00	326,742.96
Leaving as Nett Profit			$326,394.01
Deduct this amount from two Dividends of ten per cent. each, declared in 1863, amounting to $411,465.60, and it leaves a loss of 85,071.59 for the year ending June 30th, 1864

Table B'''
Showing the Receipts and Expenses in operating the Machinery of the Nashville & Chattanooga Railroad for the year ending June 30th, 1875
Receipts
From Premium account		51,490.00
From Freight "		562,128.89
From Interest "		3,056.26
From Exchange "		470.00
From Rents and Privileges		114,850.00
From Profit derived from Company's Negroes		10,000.00
From Rent of Cars and engines		32,598.00
From Receipts S. J. Co.		18,285.28
From Dividends on Stock in E. T. & Ga. R. R.		150,000.00
From Profits on Provisions sold		10,893.76	$953,772.79
Expenses
Repairs of Road
Bridges and Culverts	45.00
Provisions and Clothing	3.50
Labor	135.03
Chairs, Spikes and Turn-out Irons	93.75
Tools and Repairs of Tools	85.80
Repairs of Water Stations	261.20
Fuel for Gravel Engines	11.00	635.28
Motive Power
Labor -- Freight	144,928.89
Labor -- Passage	668.39
Material -- Freight	70,116.66
Expenses of Water Stations	110.58
Fuel -- Freight	6,899.88
Fuel -- Passenger	304.90
Oil, Tallow and Waste -- Freight	22,534.45
Oil, Tallow and Waste -- Passage	205.50	245,769.25
Maintenance of Cars
Passenger and Baggage Cars	4,258.52
Freight Cars	141,917.02
Oil, Tallow and Waste	2.00	146,177.54
Conducting Transportation
Freight -- Agents, Conductors and Train hands	74,294.20
Passage -- Agents, Conductors and Train hands	2,326.33
Stock Killed -- Freight	2,100.00
Incidental Expenses -- Freight	30,201.52
Incidental Expenses -- Passage	421.43	109,343.48
Salaries of President, Secretary and Treasurer, Superintendent and General Book-Keeper	17,716.48
Printing, Stationery and Advertising	2,131.82
Repairs of Building	18.45
Machine Shop	2,136.01	22,002.76	523,928.31
Leaving as Nett Earnings			$429,844.48
From which deduct amount paid or due for Extraordinary Repairs, Interest on Floating and Funded Debt, &c., to-wit:
Damage to Employees		300.00
Side Track at Rutledge, Ga.		1,732.50
Shop and Yard Rents at Augusta		27,632.50
Side Track at Augusta		2,175.00
Interest on Bonds Paid	1,200.00
Interest on Bonds Unpaid	101,940.00	103,140.00
Charity		168.25	135,148.25
Leaving as Nett			$294,696.23
From which deduct one Dividend of ten per cent. declared in October, 1864			$205,732.80
Leaving as Surplus Profit			$88,963.43

It will be seen by the foregoing statements, that there has been realized from the operations of the road, since the dater of the last report (after setting aside $369,451.00 to pay interest on bonds) the sum of $1,968,763.30, out of which dividends have been declared amounting to $1,110,958.21, still leaving the sum of $857,805.09 as a surplus profit for the stockholders. A most gratifying exhibit of it was in available funds, but the failure of the Confederates States Government involved the ruin of their finances, and the reality is now forced upon us that the most of the stated surplus profits of $857,805.09 is now utterly worthless -- that all the dividends still payable in Confederate States Treasury Notes (amounting to $308,043.00) is now lost to the stockholders, as well as the amount appropriated to pay the interest on bonds, being $369,451.00 -- really leaving the Company in debt to bondholders $404,661.00 to July 1st, 1865, and also sustaining a heavy loss in rolling stock from the wear and tear, destruction by fire, capture and rotting of the wood-work of the cars.

Under this state of the Company's affairs, it becomes necessary, as the road has been turned over to the Stockholders by the United States Government, and new Directors elected, to have the General Exhibit revised and changed, so as to show the actual value, as near as we can arrive at it, of the Company's property and assets.

We, therefore, proceed to lay before you statements of the different investments and accounts made during the period the managers were working the rolling stock over the Southern roads, from which we derive, in part, the items necessary to correct the General Exhibit, and show, to a certain extent, the use made of the Company's means and property during the time embraced in the fiscal years of 1862-'3-'4 and '5.

We find from the books that there has been invested in negroes, in Georgia, the sum of		$154,348.00
And negroes sold amounting to		32,805.25
Leaving negro investment		$121,542.75
As stated in the General Exhibit (marked A.)
This was an unauthorized investment, and is now, manifestly, a total loss, and as such, should not be chargeable to the new Board as assets of the Company; neither should the amount $7,230.54, previously appearing in the annual statements, representing property in slaves, any longer appear as assets of the Company.
There has been invested in Confederate States Bonds		$771,361.00
Of that amount of bonds there was sold ten certificates of $10,000.00 each, to Col. V. K. Stevenson, in Confederate Currency	100,000.00
Proceeds of sale to R. T. Wilson 100,000.00 for new issue	100,000.00
253,333.33 for Sterling Exchange ($12,666.67)	253,333.33
Taxes on bonds sold to Wilson	63,066.67
Georgia Railroad Company on Dividend account	20,000.00
Charleston, on Dividend account	45,000.00
20,000 bonds sold	20,000.00
Paid to Cunningham, Evans & Solomons	5,725.25	$607,125.25
Showing a balance on hand of		$164,235.75

Which appears, as assets, in the statement A, which is also worthless. The only proceeds of any value now derived from the Confederate States Bond Investment, was the $12,666.67 of Sterling Exchange received from Wilson.

There appears in the General Exhibit, as assets, $126,429.13, a balance due from the Confederate States Government, which is, manifestly, of no value; also, an item, as assets, under the head of "Provision Account," of $81,882.49, which is an entry of no value, as it was an investment in provisions for the employees of the Company, which have been consumed and disposed of.

The investment in the Supply and Importing Company, appearing as assets, being $414,821.24 for twenty-five shares of their stock, must be reduced to the amount actually paid in specie $25,000.00, and this amount must be regarded as a very doubtful asset. We are told that it may yield more than the amount invested, if a faithful account is rendered, but after repeated applications for the books of that Company, they were finally exhibited to us torn into fragments. this singular proceeding on the part of that Company, in destroying their books, leaves us without any data to form an estimate of their property and means, causing doubts of there ever being a correct account rendered of their profits and property, or that our Company will be reimbursed the $25,000.00 paid in gold for the stock. And this, too, in addition to the fact that we are advised in no court in England or America, would said contract for stock or dividends upon it, be enforced.

With regard to the $25,000.00 South Carolina Railroad Annuity Bond, appearing on the credit side of the statement A, it represents an interest in a Railroad Bridge over the Savannah river at Augusta, Ga. While our Company may derive some benefit from it, in making through freight arrangements with the Georgia and South Carolina roads, no available means will be derived from the investment. It being, in fact, a donation towards the building of that bridge, and securing a connection of tracks.

From the investment in the Belair Farm, $61,266.35, there cannot be realized more than $1,000.00, as it contains only

300 acres of poor "piney woods" land, about eight miles from Augusta, Ga. We find that the said farm really cost only	$15,418.09
The rest of the $61,266.35 being expended for a saw-mill, mules, wagons, tools, provisions, etc.
The amount appearing in the General Exhibit as assets due from the McMinnville & Manchester Railroad Company	31,668.32
Also the ten bonds of said Company	10,000.00
Making the sum of	$41,668.32

As well as the profits allowed that Company for work done in transportation of troops and army supplies in 1862-'3 and '4, $43,623.14 in Confederate funds, makes a total loss to the Nashville & Chattanooga Railroad Company, in leasing that road for five years, of $85,291.46.

In the account of balances due from individuals, agents and connecting roads, amounting to $81,317.84, we regard $70,812.00 of it as worthless, from the best information we ca obtain, $1,607.79 as doubtful, leaving $8,898.05 which may be collected.

In the account of Bills Receivable, amounting to $44,217.23 (see said statement A,) we find $858.41, which may be collected, $20,190.75 we regard as doubtful, and the balance, $23,168,07, of no value. We learn that the most of the amount we report doubtful, was money loaned by the Treasurer, without authority, in Confederate Treasury Notes.

Of the 2,384 shares of Nashville Chattanooga Railroad Stock purchased since the last report, 200 shares will revert back to the original owners, the same having been purchased from the Confederate States Government as sequestrated stock, being a loss of the amount paid, $5,000.00.

The nine Wills' Valley Railroad Company Bonds appearing as assets, we regard as worthless at present. They may, eventually, be of some value, if the Company succeed in completing their road.

The materials left in the Machine Shop, estimated at $25,609.85, (see statement A,) was used by the United States Government while they occupied the Company's shops, and should be allowed by the Government in settlement with our Company.

The "cash on hand" brought back by the Treasurer, stated as $249,069.76, is of such a nature that it is impossible to make any satisfactory statement in regard to it. At one time during the progress of our investigations we came to the conclusion that it might produce $11,000.00, though we think it would not, at present, product that sum. See the Treasurer's statement of the character of the funds he holds, representing the cash on hand, marked (K.).

Table K
W. A. Gleaves, Treasurer, in account with Nashville & Chattanooga Railroad Company
June 30th, 1865
To Balance to July 1st, 1865, as per books		$249,069.76
Credits
By Confederate Treasury Notes		171,228.75
" Counterfeit Coin	7.50
" Bank of Lawrenceburg	62.00
" Citizen's Bank	136.00
" Exchange	98.00	303.50
		$171,532.25
By Georgia Treasury Notes	37,400.00
" Georgia and South Carolina Bank Notes	40,719.87
" Bank of Tennessee	50.00
" Georgia Railroad and City of Augusta	20.35
" Western & Atlantic R. R. Change Notes	355.00	78,545.22
" Coin		268.35
		$250,345.82
By Balance on Burk's Due Bill	2,325.00
" " " J. A. Fisher's Due Bill	3,820.00
" E. A. Keeble's Due Bill	3,500.00
" W. G. Davis' Due Bill	500.00
" W. G. Underwood	100.00	10,245.00
" E. W. Cole & Co. Currency	237.50
" H. W. Clark's Due Bill	50.00
" W. G. Davis' Due Bill	90.00
" V. K. Stevenson's Due Bill {Should be $48.00}	00.00	427.50
		$261.018.32

In taking up the item of "Road and Outfit," as per last report, we agree to let the amount representing the cost of road	$2,912,875.38
Plus the permanent work since	112,093.04
Making the sum of	$3,024,968.42
Stand as its actual value, now, notwithstanding the destruction of some of the permanent bridges, and substitution of temporary ones, for the road, as it is, could not be constructed now for less than the $3,024,968.42. Great loss, however, has been sustained in the rolling stock, depot buildings, etc., embraced under the general head of "outfit."
Their value was given in last report as follows:
Locomotives	$347,163.13
Cars	284,506.90
Depot Buildings	104,275.73
Wood Sheds and Water Stations	26,698.90
Division Houses	5,913.16
Tools	15,299.84
Total	$783,857.66

Table C
Valuation of Engines as Estimated by John C. Hagan, Master Mechanic
Engines	Amount	Remarks
Tennessee		Scrap Pile
Harrison		" "
Stevenson, V. K.	2,000.00
Watterson	2,000.00
Grampus		Sold to Salt Co. $20,500 Conf. money
Nashville		Scrap Pile
Thompson, J. E.	2,400.00
Coweta		Sold to Wills' Valley Railroad Co.
Pollard		Sold in Chattanooga
Chattanooga	8,500.00	Now called "Tennessee"
Shelbyville	1,000.00
Moore, R. I.		Exploded at Bridgeport
Cumberland	2,000.00
Sevier, Gov.	7,500.00
Houston, Gov.	8,445.00
White, H. L.	10,232.36
Polk, Jas. K.	5,000.00
Jackson, A.	5,000.00
Webster, Daniel	5,000.00
Clay, Henry	5,000.00
Calhoun, J. C.	8,000.00
Conner, H. W.	9,956.98
Peabody, George	10,571.66
Soutter, J. T.	10,811.71
Trenholm, G. A.	10,000.00
Moore, Wm.	10,000.00	Belong to McMinnville Company
Smart, Wm. C.	10,000.00	" " " "
Rogers, Thos.	10,000.00
Colwell, J. C.	8,500.00
Winchester	8,500.00
Murfreesboro		Exploded in Kentucky
Jourdine, H.	7,000.00
Lamar, G. B.	7,000.00
King, J. P.	8,986.98
Eakin, John
Tullahoma
Carroll, Gov.	1,000.00

	$164,404.69
9,600 lbs -- Old Driving wheels	96.00
2,950 " Tender Truck Frames	44.25
3 " Tanks at $500	1,500.00
Total (present value of Old Engines)	$166,044.94
Value of same, as per last report	347,163.13
Showing loss during Civil War	$181,118.19

Table D
List of Old Cars belonging to the Nashville & Chattanooga Railroad, with the Old and New Numbers attached, and the appraised value, as appraised by Green Sawyers, Superintendent Car Repairs
Class	Old Nos.	New Nos.	Appraised Value
Box	2	501	500.00
"	83	502	350.00
"	137	503	325.00
"	142	504	200.00
"	1	505	500.00
"	12	506	375.00
"	74	507	300.00
"	28	508	575.00
"	193	511	550.00
"	71	512	350.00
"	5	513	300.00
"	49	514	400.00
Stock	3	515	275.00
"	34	516	400.00
Box	38	517	300.00
"	36	518	275.00
"	90	519	275.00
"	17	520	300.00
"	132	521	425.00
"	189	522	400.00
"	4	523	200.00
"	90	524	225.00
"	115	525	200.00
"	B'd	526	100.00
"	85	527	200.00
"	114	528	275.00
"	120	529	550.00
"		530	250.00
"		531	300.00
"			175.00
"			150.00
Pass'r	F		600.00
"	M		700.00
"	R		600.00
"	A		700.00
"	U		200.00
"	1		1100.00
"	2		1000.00
"	3		2000.00
"	4		1200.00
"	5		1000.00
"	6		1300.00
Bag	S		450.00
"	1		1200.00
"	2		1200.00
Box	2	532	225.00
"	6	533	450.00
"	61	534	250.00
"	10	535	450.00
"	136	536	225.00
"	914	537	300.00
"	148	538	400.00
"	67	539	375.00
"		540	125.00
"	110	541	275.00
"	123	542	250.00
"	171	544	300.00
"	150	545	275.00
"	17	546	400.00
"	6	547	600.00
"	55	548	600.00
"	3	549	500.00
"	11	550	625.00
"	186	551	400.00
"	2	552	275.00
"	20	553	325.00
"	5	554	325.00
"	15	555	425.00
"	179	556	550.00
"	116	557	200.00
"	84	558	500.00
"	4	559	475.00
"	7	560	475.00
"		2001	375.00
"			200.00
"			225.00
Flat		2002	300.00
"	2	2003	150.00
"		2004	250.00
"	22	2005	250.00
"	5	2006	175.00
"	32	2007	150.00
"	20	2008	175.00
"	10	2009	200.00
"	15	2010	200.00
"	12	2011	200.00
"	4	2012	150.00
"		2013	300.00
"	9	2014	150.00
"		2015	300.00
"	14	2016	250.00
"	13	2017	300.00
"	60	2018	400.00
"		2019	200.00
"	5	2020	275.00
"		2021	425.00
"	1	2022	220.00
"	7	2023	250.00
"	19	2024	225.00
"		2025	300.00
"		2026	250.00
"	21	2027	300.00
"	7	2028	300.00
"		2029	600.00
"	9	2030	225.00
"	10	2031	200.00
"	6	2032	375.00

Est'd value of Pass'r and Bag'e Cars	$13,350.00
Estimated value of 93 cars	$29,420.00

The trucks and other iron work of the Cars scattered on the different roads South will average $6,000 lbs. each, value at one cent per pound scrap.

Jno. C. Hagan

Master Mechanic

Table D -- Continued

Estimated value of the Cars brought home from the South, also of the wrecks of Cars scattered over the Southern roads

Freight Cars, estimated by G. Sawyers

$29,420.00

Passenger and Baggage Cars, estimated by G. Sawyer

13,350.00

Freight Cars, not arrived, estimated at the average of the rest

4,740.00

Box Cars at Greenville, S. C.

Wrecks of Cars at Columbus, Ga.

" " " " Manchester, S. C.

Box Cars on Danville Railroad

Box Cars Scattered over Mobile & Ohio and other Southern roads

Flat " " " "

Stock " " " "

183

Wrecks which are estimated at 6,000 lbs. scrap iron per car at one cent lb.

10,980.00

99,618	lbs. Car Scrap, at 1 cent	$991.18
45,424	" " Axles, at 4 1/2 cents	681.36
61,100	" " Wheels, at 4 1/2 cents	916.50
13,030	" " Trucks, at 1 1/2 cents	195.45
3,220	" " Springs, at 4 cents	161.00
30,550	" " Wheels, new at 1 1/2 cents	458.25
34	Pair " Axles, new, at $15.00	510.00

3,913.74

Total

$62,403.74

Value of Cars, as per last report

284,506.90

Showing loss in Cars

$222,103.16

Table E

Freight and Passenger Houses destroyed during the Civil War

Freight House at Lavergne, estimated	$500.00
" " " Murfreesboro, burned, cost	5,218.53
" and Passenger House at Fosterville, burned, estimated	2,749.45
" " " " " Wartrace, burned, cost	2,749.45
" " " " " Shelbyville, burned, estimated	5,218.52
" " " " " Normandy, injured, estimated	200.00
" " " " " Decherd, burned, cost	2,915.62
" " " " " Cowan, injured	200.00
Union Passenger House, Stevenson, burned, cost	549.00
Freight House, Bridgeport, destroyed, estimated	350.00
" and Passenger House, at Shellmound, destroyed, esti'd	3,000.00
Chattanooga Freight House, burned, and then repaired, not worth more than one-half of the original cost (which was $8,044.05)	4,022.00
Old Freight Offices, Platforms, etc., at Chattanooga, estim'd at	750.00
Platforms, Stock Pens, etc., destroyed at the Way Stations, estimated at	1,000.00
Total loss	$28,922.56

Table F

Wood Sheds and Water stations destroyed during the Civil War

Antioch	Shed and Water Station, burned
Lavergne	" "
Christiana	" "	$4,330.00
Smyrna	" "
Estell's Springs	" "
Tantalon	" "	4,329.00
Total Wood Sheds and Water Stations destroyed		$8,659.00

Table G

Account of Division Houses destroyed during the Civil War

Division Houses at	Antioch, burned, cost	$625.00
" " "	Smyrna, " "	626.00
" " "	Murfreesboro, half destroyed	313.00
" " "	Christiana, burned, cost	626.00
" " "	Tullahoma, estimated	625.00
" " "	Stevenson, House and Lot	950.00
Total Loss		$3,765.00

Table H

The following List of Tools, the Property of the Nashville Chattanooga Railroad, as appraised by John C. Hagan, Master Mechanic

Articles	Quantities	Price	Total Am't
Press, Drill	1	300.00	300.00
Planer	1	400.00	400.00
Machine, Screw Cutting	1	300.00	300.00
Lathe, Hand	1	150.00	150.00
Vises	6	12.50	75.00
Drill, Upright	1	75.00	65.00
Bellows, Blacksmith	3	8.33 1/3	25.00
Scales, Fairbank's	5	10.00	50.00
Lathe, Small	1	250.00	250.00
Lathe, Large	1	500.00	500.00
Lathe, Driving Wheel	1	2500.00	2,500.00
Machine, Screw Cutting	1	100.00	100.00
Planers, Daniels'	1	400.00	400.00
Machine, Moulding	1	35.00	35.00
Saw, Jig	1	150.00	150.00
Machine, Tongue & Groov'g	1	500.00	500.00
" Moulding	1	250.00	250.00
Saw, Circular, "small"	1	40.00	40.00
Planer, Surface	1	400.00	400.00
Saw, Circular, "large"	1	150.00	150.00
Machine, Morticing	2	30.00	60.00
Truck, Lumber	1	15.00	15.00
Pulleys and Shafting	1 Lot	1000.00	1,000.00
Engine, Stationary	1	800.00	800.00
Boiler, "Flue 2"	1	350.00	350.00
Shovels	55	.75	41.25
Picks	200	2.00	400.00
Jacks Screws	8	25.00	200.00
Saws, Cross Cut	10	10.00	100.00
Bars, Claw	800	.15	120.00
Anvils	7	20.00	140.00
Chains -- 3,500 lbs		.10	350.00
Total value of Tools			$10,226.25
Belonging to the N. & C. Railroad Company, when they were returned from the South -- worth originally			15,229.84
Showing a loss of			$5,073.59

From the foregoing accounts, marked C, D, E, F, G and H, showing the present condition and value of the Company's property, embraced under the general head of "outfit," it will be seen that the Company have sustained

A loss in	Locomotives of	$181,118.19
" " "	Cars of	222,103.16
" " "	Depot Buildings of	28,922.56
" " "	Wood Sheds and Water Stations of	8,659.00
" " "	Division Houses of	3,765.00
" " "	Tools of	5,073.59
	Total loss	$449,641.50
Leaving the present value of "outfit" embraced in the last report		370,954.89
To which must be added the cost of Chattanooga Passenger House		10,308.53
Chattanooga Freight House		8,044.05
Nashville Down Freight House		12,396.08
" and Chattanooga Depot Lots		44,738.73
Present value of "outfit"		$446,442.25
The Cotton Investment, as appears on the books gives amount paid for cotton in 1863 and '4		578,889.80
Accruing expenses		94,352.10
Making total amount paid		$673,241.90
Total amount received from sales, was		391,054.64
Leaving a balance to credit of that account of		$282,191.26

The available proceeds from this balance is 1,254 bales now being shipped North and estimated to nett $250,000.00.

We find on examination of J. W. Thomas' books, who was the Company's Agent at Wilmington, N. C., that he received while there, 3,136 bales of cotton for the Nashville & Chattanooga Railroad Company, and that he disposed of them as follows:

108	bales was paid to Crews & Co., under a contract to ship out to Liverpool (to Frazier, Trenholm & Co.)
108	bales for the Company
1735	" sold, and proceeds sent to W. A. Gleaves, Treasurer, Augusta
163	" was burned
3	" " lost
1019	" " shipped to Liverpool on account of a contract with the Confederate States Government, the substance of which is given by Lieut. Col. Thomas L. Bayne, as follows: "Under authority of the Secretary of War, an arrangement was made through Col. Sims, with several railroad companies, to place extra through trains on the road to carry cotton exclusively, to Wilmington, on Government account. To secure these trains, it was agreed that five bales on every hundred thus transported, might be sent out on Government space on the steamers, at Government rates, the money realized to be expended in machinery and rolling stock to recuperate the roads."

The amount of five per cent. privileges earned by the Nashville & Chattanooga Railroad Company for transporting Government cotton under the foregoing contract, was:

From James Saxias, Agent War Department	741.38 bales
" W. S. Peters, " Navy "	161.05 "
" A. S. Gibb{e}s, " Treas. "	246.00 "
Total	1,148.43 "

Certificates accompanied each train, stating the number of bales the Nashville & Chattanooga Railroad Company would be entitled to shipping room for, as per contract.

Of the above 1,148.43 bales, privileges earned, the South Carolina, and Wilmington & Manchester Railroad Companies were entitled to 123 bales, leaving 1,025.43 as the actual number of bales the Nashville & Chattanooga Railroad Company were entitled to ship out to England. For details of the Company's transactions at Wilmington, we refer you to Mr. Thomas' books.

Allowing the 1735 bales sold in Wilmington, brought the average price of $2.00 per pound, and averaged 500 pounds then the gross amount of sales would be	$1,750,000.00
Putting the cost and charges at one-half	875,000.00
The profits would be, of course	$875,000.00

Neither the proceeds of that cotton, nor the 108 bales shipped out on contract with Crews & Co., nor the 1025 bales shipped out on contract with Confederate States Government, appear on the books of the Company, neither does the amount paid for the said cotton appear on the books, but the freight is claimed to have been paid at Augusta, by E. W. Cole & Co., as shown by the accompanying statement, marked I. How this is, in fact, we do not pretend to determine.

Table I

Statement showing the Amount of Freight and Charges paid by E. W. Cole & Co. on Cotton, &c.

1864
Feb'y 16	Freight on Cotton for Chicora Co	$7,170.00
" 16	" " " " Powell & Co	1,740.00
" 16	Georgia Railroad, freight on 516 bales Cotton	1,683.00
" 16	S. C. R. R. freight on 475 and 217 bales Cotton	3,114.00
" 16	Wilmington & M. R. R., freight on 475 bales and 217 bales Cot	2,422.00
" 16	Freight on Salt, &c.	39,903.23
M'ch 16 & 17	paid Company freight on 387 bales Cotton	3,870.00
" "	Paid S. C. Railroad freight on 86 bales Cotton	387.00
" "	Paid W. & M. Railroad freight on 86 bales Cot	301.00
" "	Paid Company freight on 253 bales Cotton	2,530.00
" "	Paid Expenses on 561 bales Cotton	586.50
" "	Paid 1/2 Ga. Railroad freight on 369 bales Cot	818.00
" "	Paid 1/2 S. C. " " " " " "	830.25
" "	Paid 1/2 W. & M. " " " " " "	645.75
" "	Paid 1/2 Company " " " " "	1,845.00
" "	Paid 1/2 Expenses at Augusta on 369 bales Cot	597.50
June 29 & 30	Paid expenses on Cotton at Wilmington, old J, in March	3,713.18
" "	Paid expenses on Cotton at Wilmington, new J, in April	1,266.00
July 31	Paid expenses on Cotton at Wilmington, in May	7,377.48
" "	" " " " " " " June	25,680.61
	Paid Company freight on 86 bales Cotton in March, 95 bales Cotton in April, 141 bales Cotton in May, 530 bales Cotton in June -- in all 851 bales Cotton	8,510.00
Sept. 9	Paid Company freight on 151 bales Cotton	7,550.00
" "	Paid " " " 28 " "	1,400.00
Aug. 8	Paid " " " 250 " "	12,500.00
" 30	Paid " " " Cotton	3,000.00
" "	Paid " " " 30 bales Cotton	1,500.00
Sept. 12	Paid " " " 25 " "	1,250.00
" "	Paid " " and other expenses on Cotton	9,550.00
Oct. 1	Paid " " on 82 bales Cotton	4,100.00
" 21	Paid " " " 73 " "	3,650.00
Nov. 21	Paid " " " 6946 lbs Mdize at 15	1,041.00
" 12	Paid " " " 25 bales Cotton	2,125.00
" 14	Paid " " " 23 " "	1,955.00
" 16	Paid " " for error in freight on 212 bales Cotton having heretofore been charged at $7.00 less than should have been	1,484.00
" 16	For Disbursements in Cotton in Sept. and Oct.	11,620.70
" 25	" Freight on 34 bales Cotton, paid Co. for S. C. R. R.	680.00
" 22	" " " 22 " " aug. to W	1,848.00
" 23	" " " 33 " " " "	2,772.00
D'c 15	" Disbursements on Cotton at Wilmington	3,039.60
" 22	" Freight on Cotton	30,408.00
" 23	" " " 58 bales Cotton	4,872.00
Jan 13	" Expenses on Cotton	342.00
Feb 13	" " " "	570.00
" 20	" " " "	484.00
		$222,732.70

From our investigations of the Company's transactions in cotton, it appears that Col. V. K. Stevenson purchased one-sixth of an interest in 1420 bales of cotton owned by the Nashville & Chattanooga Railroad Company, stored in Montgomery, Macon, Fort Valley, LaGrange and Montezuma, on the 1st of July, 1863, at cost, being an average of 21 8/56 cents per pound and expenses in all		$27,370.93
That he received from proceeds of sales
May 30th, 1864, of 100 bales	$58,039.20
March 3d, 1865, " 22 "	24,329.27	$82,368.47
Giving him a profit on the 122 bales of		$54,997.54

From the most reliable information we have obtained, there was 735 bales lost of the said 1420:

616	were burned at	Montgomery
25	" "	Charleston
29	" "	Griffin
15	" "	Macon
50	worthless on plantation

One-sixth of which, 122 1/2 bales, would be Col. Stevenson's proportion of the loss. If the above account of the loss is correct, the Col. Stevenson has received proceeds of 7 5/6 bales more than he was entitled to, supposing his contract with the Company to have been legal.

We find further that Col. V. K. Stevenson, Col. E. W. Cole and W. A. Gleaves, Esq., entered into co-partnership, under the name and style of E. W. Cole & Co., and appropriated about 500 bales of the Company's cotton -- shipped the same to Wilmington -- replacing the same number of bales at other points, deemed by them more secure.

The average price paid for the Company's cotton in 1864 was 65 cents per pound. the average price received in Wilmington the same year was $2.00, giving
Gross amount		$500,000.00
Deducting cost of 500 balers at 65	$162,000.00
And putting freight and charges at	37,500.00	200,000.00
It leaves a profit of		$300,000.00
on the 500 bales taken and replaced.

With regard to the 1,735 bales received and sold by the Company's Agent at Wilmington -- as it was marked Nashville & Chattanooga Railroad, and no freight charged on the freight list, it could not have been regarded otherwise by him than as belonging to the Nashville & Chattanooga Railroad Company; and he sold it and sent the proceeds to the Treasurer of the Nashville & Chattanooga Railroad Company, at Augusta, Ga. During the same time there was other cotton shipped to our agent on account of E. W. Col & Co., on which the freight was paid at Wilmington, and proceeds of sales sent to E. W. Cole & Co., Augusta, Ga.

After the surrender of the Southern army, E. W. Cole & Co. informs our agent at Wilmington that he has been laboring under a misapprehension as to the ownership of said 1,735 bales; that the cotton belonged to them, and that they had paid the freight on it at Augusta (as the books show); also, after the failure of the Southern cause, when most of the cotton shipped out on the Confederate Government Steamers, (under the said contract) had gone safely through the Blockade, (there being only about 75 bales lost); then E. W. Cole & Co., claim it as their cotton, and say they will pay the market price for the privilege; which was according to our best information, fifty dollars per bale in Gold. They also allege that they have already paid the Company $156,970.00 in Confederate currency on the above privilege, (as the books show.) The amount earned by the Nashville & Chattanooga Railroad Company, from the Confederate States Government, and from Crews & Co., for shipping through the Blockade, would be at the said market value $56,671.50 in Gold. If you accept the above payment in Confederate States Notes -- after reducing them to a Gold basis, at the same rate the bonds were sold to Wilson for (May 30th, 1864,) then they would still owe the Company $48,823.00 in Gold, on the transaction; but of course we must leave it for the Board to decide, whether they will accept the trade made by E. W. Cole & Co., with themselves, in regard to the cotton shipped to Liverpool: as well as what disposition they deem proper to be made in the transactions involving the appropriation of one sixth of 1420 bales, the 500 bales taken and replaced, and the 1735 bales sold at Wilmington.

In reviewing the whole matter, we cannot find that the Nashville & Chattanooga Rail Road Company, have derived any benefit or profit, whatever, from its road, machinery and men, since the removal of their engines, cars, books, etc. from Nashville: on the contrary all the large surplus profits made before the currency depreciated, together with the $99,150.72 cash on hand on 1st July 1861, -- amounting to over half a million, as well as the large nett profits made afterwards, in progressively depreciating currency, amounting to near half a million, more appears to have been mostly absorbed by the managers in their new business operations, under the name and style of E. W. Cole & Co. For but little is brought back for the Stockholders but an array of figures, which proves to be mainly nothing but dross from which the metal has been extracted. We regard it as a reflection upon their well-known business abilities, to suppose that with the ample means, engines, cars and men at their disposal; -- with a field for speculation seldom, if ever, equaled in this country, and with all the essential elements for successfully embarking therein, that they did not make large fortunes at the expense of the Nashville & Chattanooga Railroad Company! that they had ample means, and used them, is evident from the fact, that in addition to our estimate of their nett profits on said cotton operations -- amounting to $1,229,998.54. we find on examining Col. Stevenson's and E. W. Cole's individual accounts, that they used at various times -- from Sept. 1863 to April 1865, $346,059.13 exclusive of the amount paid them on account of their salaries, making in all, $1,576,057.67; thus giving the mover a million and a half with which to carry on their speculations; besides their profits in the hands of Frazier, Trenholm & Co. in Liverpool -- on the 950 bales that went through the blockade -- which we cannot estimate at less than $225,000.00 in gold. Also not including the profits made by them in their heavy operations in salt and other articles.

It may not be out of place here, to state that at a convention of the Stockholders in Murfreesboro, on the 15th of December 1858, it was resolved, "That neither the President, nor Superintendent, nor any Director, or other officer in the employment of the Company, having the letting of contracts, shall have any interest, direct or indirect, in any contract with the Company, and nothing shall be paid by the Company, or received by them on any contract in which the President or any Director, Superintendent, or other officer in the employment of the Company, having the letting of contracts, shall have any interest, except such as may be cast upon them by will, or operation by law."

We present the following abstract of our classification of the assets appearing in the General Exhibit, marked A.:

	May be Collected	Doubtful	Worthless
Slaves			128,773.29
Confederate States Bonds			164,238.25
Provision Account			81,882.49
Balance due from Confederate States Government			126,429.13
Machine Shop Materials			25,609.85
Due from Manchester & McMinnville Railroad Company			31,668.32
10 Bonds " " " "			10,000.00
Stolen Cash Confederate States Notes			3,450.00
Bills Receivable	854.41	20,190.75	23,168.67
Due from Ind. Agents and Con. Railroads	8,898.05	1,607.79	70,812.00
9 Wills' Valley Railroad Bonds		8,500.00
25 Shares S. I. Company Stock			414,821.24
Belair Farm	1,000.00		60,266.35
South Carolina Annuity Bonds			25,000.00
10 Nashville & Chattanooga Railroad Bonds	10,000.79
2,384 Shares Nashville & Chattanooga Railroad Stock, purchased since last report	26,686.36		5,000.00
Balance Cotton Investment, estimated nett value	250,000.00		32,191.25
Cash on hand	11,000.00		238,069.76
	308,872.61	30,298.54	1,441,380.61

From which it will be seen that in our pruning of the general statement, we throw out $1,441,380.61 as worthless, $30,298.54 as doubtful, leaving only $308,872.61 as possibly available funds (out of the large show of figures) for meeting the heavy indebtedness of the Company, and this amount is mainly derived from the cotton secured and brought from the South by the perseverance of our President, M. Burns, Esq.

When the losses in the "outfit," (mainly in rolling stock,) amounting to $449,641.50 is added to the foregoing, it leaves a deplorable deficit on the credit side of the Company's condition at the time the road was turned over to the new managers.

We herewith hand you our General Statement, which is as close an approximation as we can make of the true value of the Company's property and assets, and their liabilities at the time

Revised Statement showing the value of the Nashville & Chattanooga Railroad Company's Property and Assets, and their Liabilities, on the 1st of July, 1865, as nearly as the Examining Committee can arrive at their true condition

	Dr.			Cr.
Capital Stock		$2,056,543.64	Road, Track and Bridges		$3,024,968.42
Company's Bonds, endorsed	$1,569,000.00		"Outfit" -- consisting of Locomotives, Cars, Depot Buildings, Water Stations, Division Houses, Tools and Depot Lots		446,442.25
Bonds of the State of Tennessee	150,000.00	1,719,000.00	Real Estate	18,509.12
	Floating Debt		Vannoy & Turbiville property	41,950.00
*Bills Payable	35,466.18		Stock in East Tenn. & Ga. Railroad	150,000.00	210,459.12
Unpaid Interest on Bonds to first of July, 1865	404,661.00		Available Assets
Due Individuals, Agents and Connecting Roads	41,351.92		137 State Bonds	135,620.54
Unpaid Accounts for Materials, Provisions, Labor, etc., not reported by proper officers, estimated at	15,000.00		47 Endorsed Bonds	46,000.00
Unclaimed goods sold -- estimated amount required to settle this class of claims	10,000.00		10 N. & C. Railroad Bonds	10,429,79
Change Ticket Account	1,061.15		3,204 1/4 Shares of N. & C. R. R. Stock	36,541.75
Dividends -- payable in Currency	10,800.31		Bills Receivable	858.41
Dividends -- payable in S't'n B'k N'ts.	18,513.49	536,854.05	Due from Individuals, Agents and Connecting Roads	8,898.05	238,348.54
Total		$4,312,397.69	1254 bales Cotton, estim'd to nett		250,000.00
			Cash in hands of Treasurer
			18,513 Southern -- to pay Dividends	18,513
			22,404.40 Southern -- worth, say	5,000.00
			In Coin and in hands of responsible individuals	613.85	24,127.34
			Total		$4,194,345.67

*$12,000.00 of this is due the Planter's Bank, and may be settled by the purchase of their own notes for about $7,000.

Showing excess of Liabilities over Property and Assets $118,052.02

On examination of our statement it will be seen that we have reduced the grand total of $6,029,051.20, representing the value of the Company's property and assets in the said statement A, to $4,194,345.67, showing a loss, when compared with that statement, of $1,834,705.35 in property and assets, and a loss of $330,946.76 as compared with the statement of the financial condition of the Company on the 30th of June, 1861, as given in the last printed report.

We deem it due to ourselves to state, that owing to the sickness of the Treasurer, we have not been able to count the bonds and "cash on hand," or examine titles and other evidences of property belonging to the Company, in his custody; therefore, we give you his statements, believing them to be correct.

We consider it due to J. W. Thomas, Esq., who was acting under the appointment of V. K. Stevenson, at Wilmington, to say that we found his books had been kept in a systematic, correct and satisfactory manner; also we take pleasure in testifying to the faithful and business-like manner in which the principal book-keeper, R. C. Bransford, Esq., has discharged his duties in rendering intelligible, all the complicated accounts of the Company.

Before closing this report, we beg leave to state that if we have over-estimated, mistated or misrepresented any account or transaction embraced herein, that we have done so unintentionally, and not through any disposition to give a false coloring to the transactions of the managers, and that we hold ourselves ready and willing to correct any errors which may prove to have been so made.

Respectfully submitted,

James H. Grant

W. S. Huggins

I concur in the statements and calculations in the foregoing report in regard to the condition and value of the property and other assets belonging to the Company, and the amount of their liabilities, but do not assent to some of the other statements or remarks and conclusions arrived at therein.

Thos. C. Whiteside