| Annual Report of the Richmond,
Fredericksburg & Potomac RR |
| as of April 1, 1864, |
| President's Report |
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| Thirty First Annual Report |
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| RFP R. R. Offices |
| Richmond, May 31st, 1864 |
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The Board of Directors submit herewith to the Stockholders
the annual tabular Statements exhibiting the condition of the company's
affairs on the 31st March, 1864.
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It will be seen that the income from transportation
during the year amounted to $706,435.38, that from rents of Real
Estate to 40H and that from profits on Confederate States Bonds sold
for re-investment in Cotton Bonds to $24,653.86, making an aggregate
income for the year from all resources of $731,129.24. Besides this in
the month of October last the sum of $147,084.73 was paid to this
Company by the Virginia Central and the Orange & Alexandria
Railroad Companies, under the decree of the Circuit Court of the City
of Richmond rendered in the cause some years since instituted in the
Court by this company, to recover from those Companies the fares of
passengers traveling between Richmond & Washington diverted from
this Company Railroad to theirs in violation of the legislative
guarantee claimed in the Company Charter.
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But this money being the legitimate revenue earned during
former years, during which no dividends were paid to the holders of
the common stock of the Company, it was deemed by the Directory just
and proper to divide among the holders of that Common Stock, as a
partial indemnity for the loss they had ten sustained, the balance of
the amount so recovered, after deducting the expenses incurred in
recovering it.
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This was done as nearly as practicable in the special
dividend of $11 1/2 per share declared upon the Common Stock in October
last, and paid simultaneously with the regular dividends of $7 per share
paid from the current years earnings of the 1st November last.
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The current expenses of the company for the fiscal year
amount to $510,239.01 very greatly exceeding both in amount and in their
proportion to the income those of any preceding year. But this excess
was the unavoidable result of causes beyond the control and influence of
the Company. One item of these expenses consists of the sum of
$59,623.17 paid as taxes to the Confederate States, an expense not
included in those of previous years. The price of materials and supplies
needed for Railroads have increased to rates varying from fifteen to seventy
times -- and on some minor articles even more -- the prices formerly
paid for them. The great demand for and scarcity of skilled mechanical
labor, and the enormous and unprecedented increase in the cost of the
necessaries of life have made it both just and necessary that the
Directory should from time to time increase as other companies have done
the compensation received by all who are in the employment of the
Company, none of who, except the President and Treasurer whose salaries
are not under the control of the Directory, receive less than from three
to five times the compensation they formerly received; although the
increases scarcely affords them the means of support with strict
economy. And although the hire of slave labor may be computed at not
more than from two to three times the rate formerly paid, yet the cost
of subsistence and clothing for the slaves as existing prices is from
twenty to fifty times what it formerly was. Every practicable exertion
to lessen this last item of expense was made by anticipating the wants
of the Company and the continuous rise of prices, and by purchasing with
specie bought for that purpose. But the results of these efforts though
important and valuable, could not keep pace with the inflation and
depreciation of the currency and the actual scarcity of supplies,
especially in this state occupied and desolated by hostile armies of
unprecedented size.
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The legitimate and only means of protection to the Company
was an increase in the rate of tolls and fares somewhat proportionate to
its increased Expenses. But the continued hope of a reduction of those
expenses restrained the Directory perhaps longer than the mere pecuniary
interests of the Company would have justified, from increasing its tolls
and fares to the extent required. Nor were they disposed to disregard
the restrictions imposed on those tolls and fares by the letter of the
Company's Charter however much its spirit and intent would have
justified such a measure. Hence the increase of the revenues of the
Company unavoidably failed to keep pace with the increase of its
expenses. At length however the necessity of an increase of tolls and
fares beyond the limits allowed by Railroad Charters became so glaring
and urgent that it was promptly authorized as to private persons by the
Legislature of the state and recognized by the Confederate Government in
its contracts for military transportation and compensation for all
transportation is now received by the Company much more commensurate to
the expenses of performing it and more remunerative to the
Company. And although the current events of the war may cut off
some portions of our Road from use, yet should such a contingency occur
the reduction of its revenue will not be in like proportion. For not
only will there be less roadway to keep in repair, but by an equitable
principle recognized in the Contracts with the Government, higher rates
of tolls and fares are paid over shorter roads than over longer ones.
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The funded debt of the Company has been during the past
year reduced by anticipating the payments to the state of the dividend
bonds held by it amounting to $124,021.50 due in the years 1869 &
1879.
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For the purpose of maintaining in efficiency the machinery
and equipment of this Road this Company in conjunction with other
Railroad Companies of this state, through the agency of Capt. Jno. M.
Robinson now of the C. S. Engineer Corps, and formerly the efficient
Superintendent of the Seaboard & Roanoke R. Road, purchased in
England supplies of materials for which the Bonds of these Companies
payable in Cotton after the war or after the 31st of December 1865 and
bearing interest semi-annually payable in London in Sterling Exchange
with the pledge of Confederate States Bonds as collateral security were
given to the contractors Messrs Chs. Joyce & Co. London. At the same
time and through the same agency an arrangement was effected with Mess
Jno. K. Gilliatt & Co. of London by which they have for a reasonable
commission and on a pledge of the same securities afforded their
friendly and liberal intervention for the honor and credit of the
Company in advancing the interest accruing and accrued on the Sterling
Bonds of this Company held by bond holders in England. To meet the first
semi-annual payment of interest on one of these obligations remittances
were made of Bills of Exchange. But the difficulty and uncertainty as
well as the enormous expense of procuring these induced the shipment to
London of a small amount of Cotton, which arrived there safely, and
which at its present high price there proved a most profitable
investment and afforded means of discharging all the interest on all the
obligation accruing during the next twelve months. As a means of
securing the Cotton for discharging the principal of its Bonds to Messrs
Chs. Joyce & Co given for these Railroad supplies the sum of
$272,500 was invested in Cotton Bonds of the Confederate States, the
interest on which is payable at the option of the Government in Cotton.
The Cotton payable by the Government as the first installment of
interest on these Bonds on the 1st of June next, if safely exported (as
there is good reason to hope it may be) to London would considerably
more than suffice at the existing high price of Cotton there, to
discharge the whole of this Company's obligation to Messrs Chs. Joyce
& Co. earning as clear profit at that may hereafter be received as
interest on those Government Bonds, on which another installment of
interest (doubtless also to be paid in Cotton) will be due seven months
before the 31st December 1865, the latest date at which this Company's
Bonds to Mess: Chas. Joyce & Co. will be due.
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In reviewing the operations of the past year and all the
unprecedented necessitudes and perils attending them the Board cannot
forbear expressing their gratitude and gratification that under such
circumstances the company has enjoyed so much comparative immunity from
loss and so much prosperity. While uncertain must obscure the future,
yet experiences of the past encourages them to look trustfully and
cheerfully forward through the coming year for the dawn of Peace &
prosperity to our whole Country. They also take pleasure in testifying
to the fidelity, zeal and efficiency which have characterized generally
during the past year the conduct of the officers and employees of the
Company.
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Respectfully submitted by the Board of Directors
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