| Annual Report of the Pensacola &
Georgia RR |
| as of April 1, 1863, |
| President's Report |
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| President's Report |
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| Eighth Annual Report of the President and
Directors of the Pensacola & Georgia Railroad Company to the
Stockholders |
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Tallahassee, May 4th, 1863
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| Gentlemen |
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The time fixed by you for your annual meeting having
again returned, another fiscal year closing on the 31st March, the
President and Directors respectfully submit the following report: |
| Earnings Pen. & Geo. Railroad and branches |
$207,812.69 |
| Ordinary expenses |
$81,586.65 |
| Net earnings |
$126,226.04 |
| By referring to the last report, submitted on the 5th May,
1862, it will appear that the earnings of the fiscal year
1861-'62, were |
$90,538.11 |
| Expenses |
$65,908.14 |
| Net earnings |
$24,629.97 |
| Comparing the two years' operations, the following result is
deduced: increase of earnings |
$117,410.68 |
| Of expenses |
$15,678.51 |
| Increase of net earnings 1862-'63 |
101,596.07 |
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Ratio increase of net earnings nearly equivalent to one
hundred and twelve per cent. Of the above gross receipts the sum of
111,49587 has been derived from passenger transportation, $72,470.48
from transportation of freight and $23,846.34 from miscellaneous
sources, in which is included mail pay, work done at shop for
government and other parties, &c. The sum received for government
transportation is $57,301.85, about on-fourth of receipts. |
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The above exhibit is encouraging, and the large increased
receipts, although measurably attributable to the disturbed state of
the country and its military necessities, yet when peace an commerce
shall again have their sway, the loss of revenue derived from the
existing war will be compensated for by the receipts to be derived
from the transportation of the produce of the country exported and
the return of merchandize which will be imported to be distributed
along the line of road. |
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For the appropriation of receipts from all sources you
are referred to the report of the Treasurer. |
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The floating debt, which was seven hundred and
seventy-six thousand nine hundred and thirteen dollars and
fifty-eight cents ($776,913.58) at the close of the fiscal year
ending 31st March, 1862, has been reduced to three hundred and
ninety-two thousand eight hundred and sixty-two dollars and forty
cents ($392,862.40) Of this amount the sum of $271,767.98 were in
the hands of parties who were living in the Northern States in 1860,
at the commencement of the war. The bonded debt of the Company on
the 31st March, 1862, was of first mortgage seven per cents.
guaranteed bonds $551,950, an of 2d mortgage land eight per cent.
$70,000 -- in all $621,950. It is now, of first mortgage seven per
cent. guaranteed bonds $831,300, and of 2d mortgage eight per cent.
land bonds $160,500 -- whole bonded debt on 31st March, 1863,
$991,800. This amount, it will be understood, does not include the
bonded debt of the Tallahassee Railroad Company, which is $203,400,
as the Pensacola & Georgia Railroad Company owns the Tallahassee
Railroad; indeed it may now be considered as a branch of this road,
although built under a separate charter. The bonded debt of the
Tallahassee Railroad included, will make the entire amount of bonded
debt $1,195,200. The sum of $397,000 of first mortgage guaranteed
bonds seven per cents. are hypothecated to secure the payment of a
large portion of the floating debt. These bonds, could they be put
in the market, would more than pay the entire amount of floating
debt, a they would command a premium. The amount due at the
commencement of the war to parties residing, or who were then
residing, in the enemy's country, has been returned to the
Sequestration Court for this district. No action has yet been taken
by the Court. The wisdom of the course adopted by the Board in not
pressing the bonds in the market and sacrificing them at the low
rates which, had such a course been adopted, would have been the
inevitable result, is established by the sales which have been made
during the past year, as most of these securities have been disposed
of at par and par and interest, and the last sale made of $10,000 of
the eight per cent. 2d mortgage land bonds was at $1.15. These bonds
are a first lien on the lands of the company lying east of
Tallahassee, and originally, a reported by land agent, amounting to
380,000 acres of the best unoccupied land in the State, and are
conveyed to William Bailey and John C. McGehee, Trustees, whose duty
it is to sell and lease the said lands and with the proceeds pay
interest and constitute a sinking fund for the ultimate payment of
the principal. They also are a second lien upon the roadway, depots,
stations, franchise and equipment, with power to the Trustees, in
the event of default in the payment of interest or principal, to
take possession of said railway, depots, &c., without judicial or
other preliminary process, to sell, lease or otherwise dispose of
the same. These bonds are due in 1870. |
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The Western extension to Quincy was completed on the 31st
January last, or rather the tract reached the Quincy depot at that
date. The constructure account on this section of road not being yet
closed, as there has been much work done since the tract was laid to
the depot at Quincy, in filling out embankments, cleaning out and
enlarging cuts and building culverts, &c., and there is much more to
be accomplished before the road can be considered completed. The
Board regret that there has been so much delay in completing the
track to Quincy, but it was unavoidable, owing to unexpected
difficulties and the state of the country, explained fully in the
Superintendent's report. |
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The Director deem it their duty again to call your
attention to the action of the Stockholders on the 6th of June,
1855, when the following preamble and resolution were adopted: |
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"Whereas, justice demands that early subscribers should
not be placed on a less advantageous footing than those who are more
tardy in subscribing, |
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Resolved, That interest, to be paid on stock at
par, at the rate of eight per cent. per annum, shall be allowed in
all payment on account of subscriptions up to the time of completing
the road;" or again to the action of the Stockholders, on the 3d
December, 1856, when it was |
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"Resolved, That on instalments called in by the
Board of Directors interest at the rate of 8 per cent. per annum
shall be charged until paid, provided that the receipt to be given
shall be for the principal only, and at the date when the instalment
was due and payable; and provided further, that the principal sum
thus paid shall be entitled to draw interest, payable in stock, in
favor of the paying Stockholder in the same manner as if he had paid
on the day when the instalment was due and payable." |
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The road having reached Quincy, and though the Directors
have been anxious to continue its extension on westward to
Pensacola, its ultimate destination, and have solicited
subscriptions for the purpose of carrying on the work, no means have
been received, and the Company is at present without the ability to
prosecute the work, and even though it were different, and
subscriptions had been or could be obtained, to prepare the roadbed
and furnish the cross-ties, yet another difficulty here presents
itself: where are the means to purchase the iron and equipment to be
derived? The 30th section of the internal improvement law provides
"that no bonds shall be issued to the companies, under the
provisions of this act, in aid of any part of their roads not
completed at the end of eight year from the passage of this act."
The act was passed 6th January, 1855, and the eight years expired on
January last. The present prospect therefore being that the further
progress of the road will be stayed for some time, the Directors
have caused a calculation of the interest stock which has accrued,
under the sanction of the resolutions above quoted, up to the first
of January last. It appears that the interest stock amount to
$267,000. This is interest on subscription paid up, add amount
subscriptions for stock paid up $750,480, an w have as amount of
stock liability $1,017,480, increasing the shares to ten thousand
one hundred and seventy-four; the bonded and floating debt,
$1,384,662, added, the entire liabilities of the company is
$2,401,662 -- nearly equal to the value of the road, equipment,
depot, shops, &c., valued at $2,600,000. It will be understood that
this is the estimated value of the Pensacola & Georgia Railroad from
Quincy to Lake City, including the Monticello branch, 133 miles of
road, and does not include the Tallahassee Railroad and the property
of that company, neither does it include the lands of the Pensacola
& Georgia Railroad. It thus appearing that a continuance of the
process of allowing interest stock must increase the stock to an
indefinite amount and the greater the amount the less the value of
the share, the Board recommend that the interest stock accrued up to
the 1st January lat be now issued to the stockholders, and that
after that time no interest stock be allowed, and that a resolution
to this effect be passed. |
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The report of last year informed you that the grading of
the line of road from Live Oak station to the boundary line between
this State and Georgia, 22 miles in length, was completed and the
cross-ties nearly all distributed. The part in Georgia from Lawton to the
line is also graded. The board have determined to build the
structure a simple trestle bridge, 180 feet span in all, across the
Suwannee immediately. It can be expeditiously constructed, and, as
soon a the iron can be procured, the superstructure can be rapidly
laid down. The Messrs. Savage, well known, responsible and energetic
contractors, are ready to under take the laying of the track and
will engage to put the iron down in two months, the necessary means
being furnished. It is presumed that the laying the superstructure
in Georgia can be a rapidly completed. The finishing of this link,
connecting the roads of this State with those of the Confederacy,
would afford great facilities to the whole section of country from
Apalachicola river to the St. John's and the country penetrated by
the Florida Railroad. The distance from Quincy, present western
terminus of the Pensacola & Georgia Railroad, within 20 miles of the
Apalachicola river, to Live Oak station, where the Georgia
connection diverges, is 106 miles; from Live Oak station to
Savannah, 183 miles; entire distance from Quincy to Savannah 289
miles; distance from Gainesville, on the Florida Railroad, to
Baldwin 51 miles; from Baldwin to Live Oak station 66 miles, and
from thence to Savannah 183 miles -- in all 300 miles from
Gainesville to Savannah. A more convenient point, having in vie the
section of country above referred to, could not be chosen. It is all
ready for the iron, and can be built before the grading of any other
can be half accomplished. The point Monticello and Thomasville have
been urged a more suitable, and between which a road could be more
easily constructed. This cannot be so, as the distance from
Monticello to Thomasville is 22 miles, through a hilly country, with
red clay formation, hard material to excavate, and will consume much
time and labor; and, a gain, to build a road and connect at these
points is against the settled policy of the State, violated the
rights of the Pensacola & Georgia Railroad, in which the counties of
Middle Florida and the State are the principal stockholders, and
comes in conflict with the 24th section of the internal improvement
law, and will always meet the determined opposition of this company.
In the month of December last, the following resolution, adopted by
the Board of Directors of the Savannah, Albany & Gulf Railroad, was
transmitted to this company, to which your directors replied as
follows: |
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At a meeting of the Directors of the Pensacola & Georgia
Railroad Company, held Dec. 2, 1862, the following resolution of the
Savannah, Albany & Gulf Railroad Company was read: |
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"Resolved, That the President be authorized and
requested to have a survey made for a line of Railroad in the
direction of Monticello, Florida, starting at station 16 or 17, or
at any point between that may be found most practicable and
convenient, and that he place the said branch road under contract a
early as practicable." |
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The resolution was referred to a committee, who made the
following report: |
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The committee, to whom was referred the resolution
adopted by the Savannah, Albany & Gulf Railroad Company, authorizing
a survey for a road from station 16 or 17 in the direction of
Monticello, and directing the President to place the same under
contract as early as practicable, beg leave to report: |
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That every consideration affecting the interest of this
company, and of good faith towards the State and the subscribers to
our capital stock, including the counties so largely interested in
our welfare, forbids us from giving any favor to the enterprise
proposed in the resolution referred to. A brief reference to the
past will be sufficient to justify this company in the course your
committee deem it to be its duty to adopt. At the early organization
of the Pensacola & Georgia Railroad Company, it was desired by many
who took an interest in railroad enterprises in Florida to form such
a connection with the Georgia system as would ensure the best and
shortest route to Savannah. There were others, however, who believed
that a State system should be first built up before we should expend
our efforts to secure a Georgia connection, as the local as well as
general necessities of the State would be soonest promoted thereby.
Accordingly, the Internal Improvement Law was passed by th General
Assembly, extending certain advantages and privileges to those
companies who should accept the provisions of the act; but it was
provided no branch road should be made to Georgia until after the
line from Suwannee east should b completed, and then only east of
the Alapaha river except with the consent of all the companies
interested in the main line. This company accepted the provisions of
the act in good faith, and has completed the line as far west as
Little River, near the town of Quincy, with the view of conforming
to the Internal Improvement Act, and at the same time desiring to
carry out its original design of reaching Savannah through a
connection with the Savannah, Albany & Gulf Railroad; and having
obtained authority to construct a branch road to the Georgia line
east of the Alapaha River, this company entered into an agreement
with the Savannah, Albany & Gulf Railroad Company to form a
connection between Lawton, on the Georgia Road, and Live Oak, on the
Florida Road. We have, in good faith, graded and procured cross-ties
for the whole line of road forming the connection within the
jurisdiction of Florida, and even laid a portion of the track, at an
expense of nearly one hundred thousand dollars, and have only
delayed the work on account of the inability to obtain the iron
rails. The people of Hamilton county made a ready response to the
call upon them for aid to construct the branch road through their
county, in full expectation that this company would adhere to its
purpose and insure to them the benefit of the road. Good faith to
these, as well as a regard for the obligations of this company,
demand that we shall not sanction, by any action of ours, the
enterprise now proposed by the Savannah, Albany & Gulf Railroad
Company. |
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It must be apparent that the effect of the proposed
connection between section 16 or 17 and Monticello would be to give
to the Georgia company the benefits to be derived from our
legitimate business within our own State, and, in proportion as the
Georgia road would be benefitted, would ours be injured. |
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Duty to our Stockholders -- duty to the State, so largely
interested as it is as a bondholder and stockholder -- duty to the
people of the counties who have largely contributed to the
construction of our road, demands of this Road to be diligent in
preserving the value of the stock, and to oppose the effort of the
Georgia Company, the result of which, if successful, will nearly
destroy the large interest invested in our Company. |
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The connection agreed upon between Live Oak and Lawton
secures to our people access to Savannah, connects us with the
Georgia system, gives to the Savannah, Albany & Gulf Railroad its
due proportion of our business, and secures to us the benefits to
which we are legitimately entitled. We cannot, therefore, regard the
proposed branch from station 16 or 17 otherwise than unfriendly to
this company, and promising to Florida no advantage which it will
not enjoy by the connection through Hamilton county, already agreed
upon and in progress of construction, and which good faith requires
the Georgia Company to complete. |
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Your Committee propose for adoption the following
resolutions: |
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Resolved by the Board of Directors, That they will
not connect with the Savannah, Albany & Gulf Railroad by the
construction of a road from Monticello to met a branch from station
16 or 17, and we will oppose all efforts to connect our road with
the Savannah, Albany & Gulf Railroad, except between the points
already agreed upon east of the Alapaha river. |
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Resolved, That this company is firmly and
unwaveringly bent upon carrying out the original and declared policy
of making the two connections, which have been determined upon time
and again, viz: the one from Live Oak east of the Alapaha river,
with a view of connecting with Savannah, Charleston and seaboard
line of roads, and the other from Quincy northward, to
connect with a road from Albany to the Georgia line, and thus give
us a connection with the northwest. |
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Which report and resolutions were accepted and
unanimously adopted. |
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The distance from Gainesville station, where the produce
of the rich counties of Marion, Alachua, &c., are hauled, and to
which large herds of beef cattle are driven, as already seen, is 300
miles to Savannah. Now, if the connection were established between
Monticello and Thomasville, all the produce and travel would have to
be carried out of the way from Live Oak to Monticello, 55 miles,
then to Thomasville, 22 miles, then start back to Savannah, 200
miles -- whole distance by this route, from Gainesville to Savannah,
394 miles, and 94 miles further for all transportation East of Live
Oak Station. Whereas, the transportation and travel from Quincy and
points West of the Monticello junction will reach Savannah with no
more, or, if more, not exceeding then miles railroad travel, and
from points between Monticello junction and Live Oak with much less
transportation. |
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The completion of the Georgia connection, and the
extension of the road to the Apalachicola river, will add greatly to
the receipts and prosperity of the company. Since the road has been
opened to Quincy the company have been compelled to refuse freight
destined for that station, the warehouse being filled to its utmost
capacity, and the side track being occupied with loaded cars. Were
the means at hand, the Directors would immediately take steps to
have this section of the road graded, that there might be no delay
in completing it when the iron can be obtained. |
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The report of C. T. W. Syfan, Superintendent, will inform
you of the condition of the road, shops, rolling stock, &c., &c. |
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The hotel at St. Marks, the property of the company, was
consumed in March last by fire. It occurred on the morning of the
9th March, and was accidental. The greater part of the furniture was
saved, and, as soon as repaired and placed in proper condition, will
be disposed of at auction. |
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For information as to the condition of the land fund of
the company, you are referred to the report of D. G. Livingston,
Land Agent. |
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During the past year, the Board have authorized the
transportation of a considerable amount of freight free of charge,
such as salt, corn and other provisions, for the families of
soldiers, which they hope will meet with your approval. |
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Respectfully submitted, |
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E. Houstoun, Prest. |
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