| From the Western Democrat (Charlotte,
N.C.) |
| |
| February 24, 1863 |
| |
| Annual Report of the President of the
Charlotte & S. C. Railroad Company |
| |
| To the
Stockholders of the Charlotte & S. C. R. R. Co. |
| Your President and
Directors respectfully submit the following Annual Report: |
| With the
close of the 31st day of December, terminated the 15th fiscal year of
your Company. During the past year, the business of the Road has been
unusually heavy. It more than exceeded, in gross income, double the
amount of any preceding year. From the Treasurer's Report, the
earnings from all sources amount to the sum of six hundred and
forty-one thousand five hundred and twenty dollars and seventy-six
cents ($641,520.76). The expenses for the same period are one hundred
and eighty-nine thousand three hundred and thirty-four dollars and twenty-one
cents ($189,334.21) -- leaving a net income of four hundred and
fifty-two thousand one hundred and eight-six dollars and fifty-five
cents ($452,186.55). This sum is chargeable with two dividends,
payable in July last and January, 1863, the payment of interest on the
funded debt, the redemption of $30,000 of bonds due January 1st, 1863.
From it is also to be deducted the cost of about 1000 bales of cotton
and 40 slaves, purchased for the use and benefit of the Company, the
accounts for which are not entirely closed -- leaving a balance of
about $15,000 to liquidate outstanding accounts and claims against the
Company. |
| It has
long been the settled policy of this Company to won a considerable
portion of the labor necessary to the maintenance of the Road. The
cotton is held as a medium of exchange and basis of credit abroad
after the blockade of our ports is relieved. Should this war, wantonly
and wickedly forced upon the Confederacy by the Federal Government,
terminate immediately, your Company will require the expenditure in
foreign countries of not less than one hundred and fifty thousand
dollars, to restore its property to the same condition it maintained
at the beginning of the revolution. Upon the return of peace, the
necessities of the Road will be urgent, the currency of the country
depreciated, and sterling exchange will for some time rule high; with
the cotton, supplies can be then imported at the lowest rates. |
| The
Stockholders should realize the facts, that while their income has
been greater, the deterioration, wear and tear of their property has
been in a corresponding ration. The rails in the track have been much
worn; the engines are without their usual efficiency; notwithstanding
many cars have been built in the shops during the war, the number on
hand is reduced fifty per centum below the average supply. This was
the result, to some extent, in yielding to the urgent appeals of the
Government to expedite all munitions of war to their destination. The
threatened interruption of the East Tennessee and Virginia roads by
the enemy, and the inconvenient transfer across the Cape Fear River,
at Wilmington, caused much of the heavy ordnance and other munitions
for the defence of the Atlantic and Gulf coasts, as well as the Valley
of the Mississippi, to pass over your Road. Owing to the difference in
the gauge of tracks at Charlotte, these heavy guns and other munitions
were received by your cars, and without transfer sent to Charleston,
Savannah, West Point, Corinth, Mobile, New Orleans, Vicksburg and Columbus.
As was anticipated, many of these cars were never returned. A number
of them were west of Huntsville, Alabama, when it was captured by the
enemy. These losses are referred to only in explanation of the present
condition of your property. In the then defenceless condition of our
country, the causes which led to them were cheerfully submitted to,
and would be again under similar circumstances. Such urgent demands
have not been made upon your transportation for the past few months,
and it is hoped that such necessity will not occur in future. |
|
According to the authority vested in the Board of Directors at your
annual meeting two years since, a stock dividend of 33 1/3 per centum
was directed to be issued on the entire capital stock, to each
stockholder in proportion to his shares. This issue, when completed,
will increase the capital stock to about one million five hundred and
thirty-five thousand dollars. This amount will be somewhat varied by
the number of fractions of shares purchased from or sold to the
Company, the holder in all cases having the election to buy or sell at
par value. To this time 3,676 1/2 additional shares have been issued;
in which $9,700 were paid for fractions, and $8,533.33 received for
fractions of shares, leaving the difference between cash received and
disbursed on this account only $1,066.67, reducing the dividend of
stock that much less than 33 1/3 per centum on the amount issued.
There are yet outstanding about 442 shares entitled to receive the
stock dividend. It is desirable to have this account closed as early
as possible; and for this reason the rule was adopted to pay no
dividend upon the new stock until the old certificate was surrendered
and a new one issued including the stock dividend. The equipment of
your road was not ample at the beginning of the war for its then
limited business, and in addition to doing more than double its usual
transportation, it has furnished the engine and cars to the Atlantic,
Tennessee & Ohio Railroad, with which it has been operated. The
greater portion of your income is from freight, the passenger account
including the transportation of soldiers. All Government freights,
with slight exceptions, have been conveyed at rates much below the
average charges in times of peace, to-wit: 20 cents per hundred pounds
per hundred miles, and the soldiers at 2 cents per mile. The ordinary
charges of the Government business would have given you an income of
about $200,000 more than it has yielded. In addition much freight has
been transported free of charge for benevolent and patriotic purposes.
This has been accomplished too while the prices of every element which
enters into the operating expenses of railroads have advanced from 50
to 1,000 per cent, and yet it is gratifying to state that your
expenses are not 30 per cent on the gross income of the road. Such
results are not often attained by corporations under similar
circumstances, nor can such be expected by the stockholders in future.
At the beginning of the past year the Company had a fair quantity of
material and supplies on hand, purchased at peace prices. These have
all been consumed, and the Company is now paying for many essential
articles ten times their former rates. |
|
Notwithstanding the advancing prices of the country, your charges for
transportation of passengers and freights were not changed until
October last, when they were increased on passengers about 20 per
cent., and on freights an average of 30 per centum. While the
railroads generally have contributed, in a high degree, to maintain
the Government, it is manifest that their advances upon other
interests have not been commensurate with the increasing prices of the
country. |
| The
Atlantic, Tennessee & Ohio Railroad will be completed to
Statesville by the 20th of February. This will become an important auxiliary
to your road when finished. The progress of the work has been delayed
by the difficulties in procuring materials for the completion of the
bridge across 3d creek, two miles from Statesville. This bridge is 93
feet above the surface water of the creek, and 550 feet long, with
about 600 feet of trestle connected thereto, making no ordinary
structure. the income of the road for the past year in its incomplete
condition, running only four trips per week, will amount to nearly
$24,000. To this time it has only been necessary for this Company to
endorse $151,000 of its 6 per centum bonds; and the opinion is
entertained that it will not require much more aid from any extraneous
source. With this important tributary complete and an assurance that
the Greensboro and Danville connection will be made during the
ensuring year, you have every reason to rely upon a permanent and
increasing through business. Only one more important link is necessary
to place your property on the principal highway of the Confederacy.
This is the Columbia and Augusta connection. let this work of only 70
miles be constructed, and you annihilate 70 miles between these two
cities -- just one-half of the present distance by rail. To this work
your Company and the City of Columbia have for years been pledged to
do their duty, and whenever the Cities of Augusta and Hamburg and the
Georgia Railroad company, and the planters along the line will unite
with them, the road can be built without any foreign aid or capital.
Should concert of action between the respective parties identified in
interest be secured, the graduation of the road should be placed under
contract at once. Should Savannah or Charleston fall into the hands of
the enemy, this proposed road might become of vital importance to the
Confederacy, a greater military necessity than the Danville
connection. |
| The
trains have been run with much regularity, considering the
difficulties of the times and the pressure of business upon them, and
it is source of gratitude that no serious accident has occurred. More
than 90,000 passengers have been transported over the road without
injury to any one. Your former Superintendent left the road in August
last, and early in September E. Hulbert, Esq., of Georgia, was
selected to fill the position. His report, with that of the Treasurer,
including the various tabular statements, are submitted, and your
attention is invited to them for the more detailed statements and
accounts of the business of the road. |
| Respectfully
submitted |
| Wm. Johnston,
President |
|