| Annual Report of the Virginia Central RR |
| as of October 1, 1864, |
| President's Report |
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To the Stockholders of the Virginia Central Railroad Company
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The past fiscal year has been one marked by the
extraordinary difficulties and embarrassments. The history of this
Company has doubtless not been forgotten, when the construction of the
road was trammeled by the want of public confidence, by financial
weakness and legislative opposition; but whatever trials and troubles
were presented at that time in its construction, they were met and
overcome with greater ease than the impediments which were encountered
ruing the past year in the administration of its business.
Circumstances attending the war had produced an entire change in the
mode of supplying the Road with wood, cross-ties, and lumber
generally. Formerly, contractors vied with each other in furnishing
these supplies, and the Company had no trouble in providing for all
their wants at reasonable prices, and in any quantities they though
proper; and without any difficulty, negro labor was hired to keep the
track in order. But as the war progressed, the negroes in the country
bordering on the Road, either ran off, or were forcibly abstracted by
the enemy; the teams were impressed by the Government, and the
contractors were enlisted in the army. Before the Company could adapt
itself to this changed condition, the Road as become almost striped of
wood and cross-ties. During the late winter, for the want of timber
and fuel, and of labor on the trains and in the shops, the
transportation became extremely precarious and the supply of Gen.
Lee's army became a source of painful anxiety more easily conceived,
than expressed. During the year, however, arrangements were made which
have secured for the time much relief. The Confederate Government,
becoming convinced of the necessity of giving the Company some aid,
detailed a number of men on condition that they would contract with
the Company to furnish wood and ties, and thus a good supply for the
present was procured; but we regret to say that a large number of our
ties and some wood was destroyed by the enemy in their frequent raids
on the Road. Congress passed an act, exempting from military duty a
certain number of men for Railroad service, and thus mechanics were
obtained for the shops, although they have been taken from on
occasions of emergency, and our machinery has suffered much
consequence thereof.
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Raids of the Enemy
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During the present calendar year, the enemy have been on
this Road at eight different times and places. They have destroyed in
the aggregate about eighteen miles of track, and burned a large amount
of property, details of which are contained in the report of the
Superintendent.
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On the 29th of February, Gen. Kilpatrick passed by Beaver
Dam in his march towards Richmond, and burned all the Company's
property at that place, but did very little injury to the track.
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On the 9th of May, Gen. Sheridan, making another advance
on Richmond, reached Beaver Dam at the time Gen. Lee commenced
accumulating stores there; several unloaded trains were surprised, two
engines were disabled, and twenty-nine cars burned, the wheels of
which were rendered entirely unfit for use in consequence of the
excessive heat produced by the burning bacon and other articles which
were not unloaded when the enemy arrived. In their retreat from the
vicinity of Richmond, the Chickahominy bridges and some trestle work
were burned.
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On the 20th of May, a small raiding party burned the
trestle bridges near Hanover Court House, and one car, found at that
place.
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On the 26th of May, a part of Gen. Grant's army occupied
the Road between Anderson's and Hewlett's; while there they tore up 4
1/2 miles of track, burning the ties and bending the rails, many of
which will be unfit for use until they are re-rolled.
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The trestles at Hanover Court House, which were destroyed
on the 20th of May, had just been rebuilt, when the were again visited
on the 1st of June, at which time they destroyed 2 1/2 miles of track,
and burnt the South Anna bridge, this being the third which has been
destroyed over that stream.
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On the 5th of June, Gen. Hunter burned all the Company's
buildings at Staunton and Fishersville, the bridges between those
points, and nine west of Staunton, including that at Goshen, and
destroyed three miles of track.
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On the 12th of June, Gen. Sheridan, having passed up the
north side of the North Anna River, from the direction of Hanover
Town, crossed into Louisa and destroyed about three miles of track
near Trevillian's.
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On the 26th of September, Gen. Sheridan's cavalry came to
Staunton, and thence to Waynesboro', on which occasion all the
Company's property in Waynesboro' was burned, and one span of the
bridge at that point destroyed.
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By the activity and energy of Wm. G. Richardson, Road
Master, his assistant, J. T. Maynard, and Geo. Thomason, principal
Road Carpenter, and other employees of the Company, the damages to the
Roadway, as they occurred, were repaired in a very short time on the
whole line, thus preventing any serious interruption to the business
of transportation. The Board have thought it unwise to rebuild, at the
present time, any of the depots which have been burned, except that at
Staunton, which seems to be indispensable.
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Revenue and Expenses
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| Gross receipts for the fiscal year, ending 30th
September -- see Treasurer's Statement, marked C |
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$2,652,869.09 |
| Expenses of administration, see Table C |
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2,212,122.38 |
| Net revenue, or excess of gross receipts
above expenses of administration |
$440,746.71 |
| Out of this sum has been paid the interest on the debt
of the Company, which has been called for |
$56,474.47 |
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| Dividend on the 15th of March |
98,652.62 |
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| Tolls due to the State for the use of the Blue Ridge
Railroad and Tunnel |
64,984.49 |
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| Sinking fund for redemption of funded debt, due in 1872,
and in 1880, and dividend bonds due 1865, '66 and '75 |
30,000.00 |
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| Sinking fund for redemption of debts due in 1884 * |
25,000.00 |
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| Sinking fund for redemption of loan from the State |
2,430.35 |
$277,541.93 |
| Leaving a net balance of |
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$162,204.78 |
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An amount of interest on the debt, about $20,000, has not been
called for, and remains unpaid.
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*This sum is a new appropriation, ordered by the Stockholders at
their Annual Meeting in 1858, on the recommendation of the Board. By reference
to the Report of that year, pages 16 and 17, it will be seen that a
continuation of the plan of a sinking fund therein explained, will extinguish
the whole debts of the Company in 1884, which is the maturity of the last.
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The question of declaring in September the regular semi-annual
dividend, was fully considered by the Board, but it was omitted in
consideration of the very heavy damages inflicted on the Road by the enemy,
some of which are not fully repaired, and the possibility of their repetition.
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A superficial view of the subject might induce the expectation
that from an amount of gross receipts, exceeding two and a half millions of
dollars, a larger available net balance ought to have been realized than that
shown by the above exhibit; but it will not be a matter of surprise when the
amount of extraordinary expenses and the enormous increase of prices are
considered, together with the fact that when the Road was stopped, revenue was
lost, while expenses continued, and that a large proportion of the business of
the Company has been done for the Government at rates which did not pay
expenses. On mature reflection it can scarcely be considered extravagant to
say that the cost of operations this year are ten fold what they were before
the war, when, as appears by the annexed table taken from the Report of the
General Superintendent*, that the prices of many leading is articles of
expense have increased since the year 1860, from thirty to fifty fold, and
when it appears, by the vouchers of the Company, that the cost of a single
barrel of oil this year, exceeds, by upwards of $600, the whole cost of
"Oil, Tallow, Lard and Grease for the year 1862."
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The fact that so large an amount of the gross receipts have been
consumed in expenses, is accounted for in part by the increase of prices and
occurrence of many extraordinary expenses, viz: the payment of
$66,666.89 to the Richmond, Fredericksburg & Potomac Railroad Company, in
settlement of their suit of long standing. $50,292.97 for repairing the
Brooksville Tunnel and rebuilding Cowpasture bridge, the cost of two
locomotives, $44,594.05, which amounts to nearly five per cent of the capital
stock of the Company, to say nothing of reconstructing eighteen miles of track
torn up by the enemy. But it is proper to state that the consumption of so
large a proportion of the gross receipts does not so much prove the greatness
of the expense as the smallness of the receipts, or rather the inadequacy of
the rates of charge. The expenses of administration have not been too large,
but the charges for Government transportation, which constitute the large
portion of our business, have not been remunerative, and consequently the
receipts have been too small. From a calculation made by the Superintendent,
if the whole business of the Company had been done at the rates paid by the
Government, instead of the small profit now exhibited on the year's
operations, the Company would have been brought in debt nearly $275,000. But
the Board are glad to say that the Government has at last become convinced of
the injustice of thus imposing this indirect double tax, and have agree, for
the future, to allow an increase of rates.
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Comparison of Prices
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1860 |
1864 |
| Clothing and Subsistence of a negro |
$60.00 |
$1,870.00 |
| Iron castings and wrought iron |
.04 |
1.00 |
| Brass " |
.34 |
4.50 |
| Car wheels, each |
15.00 |
500.00 |
| Oil and tallow, per gallon |
.90 |
50.00 |
| Coal for shops, per bushel |
.12 |
2.60 |
| Lumber, per 1,000 feet |
12.50 |
100.00 |
| Shovels, per dozen |
10.50 |
300.00 |
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| In 1862, oil used |
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1,227 gallons |
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" tallow used |
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1,934 pounds |
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" lard used |
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4,586 pounds |
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" grease used |
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7,488 pounds |
| Cost of a bbl. of oil, 42 1/2 gallons, at
present price, $100.00 per gal. |
$4,250.00 |
| Cost of barrel |
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10.00 |
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4,260.00 |
| Cost of oil, tallow, lard and grease used
during the year 1862 |
3,654.48 |
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$605.52 |
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The result of the operations of this Company or the past year,
has vindicated at least one of the Railroad Companies of the Confederacy from
the charge of growing rich since the commence of the war, by
extravagant charges. A fair and unprejudiced investigation of the subject will
show that the Stockholders of Railroad Companies, generally, are probably the
only persons in the Confederacy whose capital has not been productive since
the war commenced. This Company has not declared more than 7 per cent per
annum at any time in Confederate paper, and this year only 3 per cent.
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Whole Debt of the Company
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| Bonds secured by mortgage, viz: |
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| Due in 1872 |
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$206,500.00 |
| Due in 1880 |
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100,000.00 |
| Due in 1884 |
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983,000.00 |
| Debt to the Commonwealth, on account
of loan authorized by the Legislature |
210,000.00 |
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$1,499,500.00 |
| Deduct investment in Sinking Fund (see
table A) |
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214,736.13 |
| Leaving total mortgage debt |
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$1,274,763.87 |
| Dividend bonds due in 1865 |
$17,001.00 |
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" 1866 |
23,188.00 |
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" 1875 |
82,660.00 |
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122,849.00 |
| Floating debt |
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262,540.96 |
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$1,660,153.83 |
| Deduct debts due the Company |
$849,427.34 |
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| Cash on hand 30th September, 1864 |
27,334.87 |
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876,762.21 |
| Leaving total liabilities 30th September,
1864 |
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$783,391.62 |
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The cost of the Road and equipment remains without
material change. The whole cost uo to the present time, as stated in
the Treasurer's Report, is $5,937,307.25.
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Brookville Tunnel
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During the last fall, a defect was discovered in the
construction of the arch of this Tunnel, and during the winter serious
apprehension were felt lest it might give way before the necessary
support could be introduced. It is gratifying, however, to report that
after consultation with engineers of eminent ability, our Chief
Engineer, H. D. Whitcomb, adopted a plan for strengthen the work which
seems to promise entire security, and it has so far progressed as to
quiet all fears on the subject.
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Road Way
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The general condition of the Road is better than would be
expected from the heavy service to which it has been subjected. For
details on this subject, reference is made to the report of the
General Superintendent.
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The Road between Staunton and Goshen having been much
injured by the enemy, and all the bridges burned, the Board was
doubtful as to the expediency of repairing it at the present time; but
the Government desiring it to be done, and wishing to use some iron
from the west end of the Road, an arrangement has been made by which
it is to be done at its expense, on terms and conditions which are
deemed satisfactory for the interests of the Company.
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Difficulty with the Postmaster General
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An address of the President of this Company to the
Stockholders has been published, explaining the causes of the
controversy on this subject, which induced the Postmaster General to
suspend the transportation of the mails on this Road. although that
address has probably reached the hands of most of the Stockholders, it
is proper here to say that the course pursued by the Board insisting
on certain modifications of the old contract is not to be regretted,
as the agitation of the subject caused a thorough consideration on the
part of the Postmaster, which resulted in satisfying him that some
changes were necessary in the terms of the contract, and accordingly,
in a commendable spirit of concession, such modifications as met the
views of the Board were made, and the whole difficulty has been
adjusted.
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Importation of Supplies
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The Stockholders were informed at the last meeting that
the Board had united with several other companies in the importation
of articles of necessity which could only be obtained in the
Confederacy at very great, and some of them not at any price, except
from those who had imported through the blockade. Though some of the
articles were captured, in amount about one-fourth of the whole
purchase, those received, if valued at present prices in this country,
are worth more than the cost and charges of the whole, and a portion
are still in Bermuda.
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The articles imported were brought of Messrs. Charles
Joyce & Co., of London, and the bonds for the amount, $11,714.18,
are payable in October, 1865. Thirty-five thousand dollars of
Confederate eight per cent bonds were deposited with them as
collateral security. The first and second installments of interest
have been paid by the proceeds of a joint shipment of cotton, leaving
a balance due the importing Railroad Companies of L167 12s 5d, a sum
nearly sufficient to pay the interest to the 1st of April, 1865, on
the joint purchase.
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The sum of $201,000 has been invested by this Company in
the Confederate States cotton coupon loan, at a premium of 50 per
cent. Giving $134,000, or one hundred and thirty bonds, of $1,000
each, redeemable in 1883, paying six per cent interest per annum,
either in specie, or cotton at 12 cents per pound, at the option of
the Government.
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The interest if paid in cotton would be 500 pounds for
each bond or $1,000, or 67,000 pounds of cotton per annum. One year's
interest was due on the 1st of June last, but taking it for granted
that the cotton would be tendered, in view of the difficulties of
shipment abroad, it was thought best to permit the interest to remain
in arrears. This outlay, though made for the special object of
obtaining specie or cotton to pay the bond for our importation, is a
valuable investment, looking to the future interests of the Company.
The Board forbear to make any specific estimate of its value, as the
many contingencies to which it is subject would make the result
uncertain, but it does not need any specious array of figures to show
the value of these bonds. When the interest and principal is realized,
without taking into account any premium on exchange, the Company will
have received 1,340,000 pounds of cotton, if paid in that medium for
the interest, and at their maturity in 1883, the principal of the
bonds, $134,000, will be paid in specie or cotton at 12 cents per
pound.
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By order of the Board
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E. Fontaine, President
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November 8, 1864
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