| From the New Orleans Daily Crescent |
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| March 6, 1861 |
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| Talk on 'Change |
| ***** |
| The following extract, from
the annual report of the President and Directors of the New Orleans,
Opelousas & Great Western Railroad, will be read with interest.
The earnings of the road for the last twelve months exceed the
estimates nearly $32,000. We learn with pleasure that the interest on
the Mortgage Bonds, issued by the Company, has been promptly paid, and
there is no indications of any faltering for the future; in fact, the
earnings of the Company for the year 1860 over 1859 were $111,8?9, or
an increase of 30 pct. The expenses and costs of running the trains
and the maintenance of roadway amounts to a trifle over 53 1/2 pct. of
the earnings. |
| It is not out of place, during
the present redundancy of unemployed money, to call the attention of
our capitalists or money lenders to the Mortgage Bonds of this road;
they bear 8 pct. interest, and can be purchased at 80, making a good
and safe 10 pct. investment. The punctual payment of the interest is
provided for by contract with the Louisiana State Bank. Special
monthly deposits are made, which cannot be withdrawn for any purpose
whatever. For the redemption of the bonds for the benefit of all bond
holders, and with the Louisiana State Bank establishing a sinking
fund, to commence in 1866, when $84,000 of bonds will be paid off or
redeemed annually. It will be difficult amount the long array of
securities offered or issued throughout the country to find those
offering greater inducements to moneyed men than the Mortgage
Construction Bonds of this Company. |
| The report of the Company to
the Legislature, says: |
| The earnings of the road,
estimated in our last report at $450,000, proved to be $484,921.87. |
| The extension of the track to
New Iberia -- forty five miles -- will proportionally increase the
revenue, without adding materially to the expenses. |
| There have been great delays
in the collection of tax stock subscriptions, and there is yet some
$70,000, as well as a considerable amount -- good and bad -- from
individual subscribers, long in default, in whole or in part. |
| The number of bonds sold to
the 31st December, 1859, was 340, and there have been disposed of
since that date, 226; total sales, 566; leaving on hand, $1,434,000. |
| The speedy completion of the
road being of vast importance to the commerce of the city, measures
were adopted by the board in June last, to interest our merchants in
an united effort to effect sales of such an amount of bonds as would
enable us to push on rapidly with our construction. But the business
season drawing to a close, and monetary matters not being in a
favorable condition, it was determined to defer action until November.
We are now met by a state of affairs, public and private, preventing
any movement of this kind at present; although, under any
circumstances and changes, there are no securities in which
capitalists can invest with surer guarantees of prompt payment of
interest, and eventful reimbursement of the principal. |
| Notwithstanding these
hindrances, we have made considerable progress by means derived from
sales of bonds and the earnings of the road, without increasing the
floating debt, which will be carried over to next year, paying the
interest in advance. |
| We report as follows: |
| The track of the completed
portion of the road -- 80 miles, to Brashear -- together with the
rolling stock, maintained in perfect order. |
| The swamp work at Berwick,
under contract with Mr. Knox, nearly finished. |
| The graduation of the whole
line (except one and a half miles of swamp) between Berwick and New
Iberia, under contract with Mr. Bisbee, to be finished in about two
months. |
| Nearly twenty miles of
gradation completed between New Iberia and Opelousas. |
| Four first class passenger
cars, and two of second class, added to the rolling stock; a contract
made for the Berwick's Bay transportation steamboat, and partial
payment thereof; two new barges, paid for; also, payment in full of
the Gretna mortgage debt of $25,000; and punctual provision made,
monthly in advance, for the interest on the bonds sold, agreeably to
our contract with the Louisiana State Bank. |
| The quantity of lands enuring
to the Road, under the grant of 1856, as given in our last report, was
698,150 acres. In appendix to second edition, there was added a
supplemental list of approved lands, 34,483 acres, making a total of
642,633 acres, approved and reported to the Governor of the State,
exclusive of 90,332 acres suspended for examination, nearly the whole
of which, we are advised, have been approved to the Road, but the list
not yet received. * |
| None of these lands have yet
been sold. The sales will probably nett an amount equal to the whole
paid up capital of the Company. |
| The Board of Directors,
although fully impressed with the very great importance of completing
this Road as soon as possible, do not think it expedient or safe, at
this time, to increase our floating debt for that purpose, but decide,
rather to go on steadily, as the resources of the Company in bonds and
land, can be realized, so as in no event to jeopardize the property
entrusted to their care and management. These resources are considered
ample for paying off our whole debt, and for completing and equipping
the road to the line of Texas -- total length, 258 miles. |
| And this Road, thus built and
equipped by the paid up subscription ($580,000) to the capital stock,
and the probable proceeds of the sale of public lands, will have cost
and be fully worth six millions of dollars, at a cost to the
Stockholders (State, city and individual) of only three and a half
millions, and by this the prospective value of the stock may be
estimated. |
| William G. Hewes, President |
| * Since received, 76?00 acres, making a
total of 719,193 acres. |
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