| Annual Report of the Georgia RR |
| as of April 1, 1861, |
| President's Report |
| |
| Office Georgia Rail Road & Banking
Company |
| Augusta, Ga., May 14th, 1861 |
| |
| To the Stockholders |
| Of the Georgia Rail Road
& Banking Company: |
| The earnings of the Road, and
the receipts through the Bank, will appear by the Report of the
Superintendent, and the Statement of the Cashier hereto annexed. It
appears by these documents, that the earnings of the Company for the
past year have been: |
| From Earnings of the Road |
|
$860,460.81 |
| Charged with ordinary current expenses |
|
491,847.92 |
| Leaving nett profits after deducting ordinary
expenses |
|
$368,612.89 |
| Expended in new track laying branches with T
Rail, new Depots, &c., as stated by Superintendent |
|
212,903.60 |
|
|
$155,709.29 |
| Income from Bank -- for interest, discount,
rent, premiums, dividends on stock, &c. |
$185,209.30 |
|
| Expenses, interest on bonds, taxes, &c. |
50,976.81 |
|
| Nett profits from Bank |
|
134,232.49 |
| Nett profits from all sources |
|
289,941.78 |
| Add reserved Fund |
|
1,108,180.79 |
| Total nett profits and reserved fund |
|
1,398,122.57 |
| From these profits two dividends of $4 each have
been declared |
|
332,480.00 |
| To cr. of Reserved Fund 31st March |
|
$1,065,642.57 |
| |
|
|
| It will be seen from the above figures that the
gross receipts from road operations have fallen off |
|
$298,727.41 |
| And from Bank receipts |
|
66,321.67 |
| Making a total reduction of |
|
$365,049.08 |
| And whilst ordinary expenses have been reduced
for Road |
$49,645.70 |
|
| And interest and Bank expenses |
5,589.29 |
|
| Yet by charging all new work and increased
materials to expenses, there is an increased expenditure of |
|
68,027.58 |
| Resulting in a reduction of nett profits for the
year from all sources |
|
$433,076.66 |
|
|
Notwithstanding this unpromising result of the year's
business, it will be perceived that it has required a charge of only
$42,292.02 upon the Reserved Fund, to enable the Company to pay the
usual dividend of 8 per cent. to the Stockholders. The causes of this
discouraging exhibit are too well known to require extended comment.
It is accounted for in part by an unusual deficiency in the cotton
crop, but mainly by the disorganized condition of the country and the
interruption of business through the port of Charleston, one of our
main seaboard connections. From this latter cause a profitable through
business has been mainly cut off, and a local traffic with Augusta has
been our main resource for the last five or six months -- covering the
best business season of the year. Add to these causes the reduced
purchases and diminished consumption of the country, and some farther
diversion of business from newly finished routes -- as anticipated in
last Annual Report -- and no surprise need be felt at the result. We
should rather be gratified that it has been no worse. It will be
perceived that the extra expenditures are unusually large. It
was deemed very important to change the superstructure of the main
line above Social Circle from stringer to cross ties, and relay the
same with a T rail of heavier pattern, also to substitute the T rail
for the flat bar upon the Branches. As the Company at the commencement
of the year, was in a condition of decided strength, and with a heavy
Reserve fund, it was deemed advisable to hurry this work to
completion, and most of the extra outlay has been made with this
object. Had the events of the year been foreseen, the improvement might
have been made more gradual; but most of the work is now fortunately
done or provided for, and the expenses may hereafter be greatly
reduced, as may be seen b y the estimates of the Superintendent.
|
| The Milledgeville Rail Road
Company, to which this Company subscribed 200,000, has made
considerable progress and we have paid $124,000.00 of the
subscription. Under existing circumstances, it is deemed unfortunate
that the work was commenced; but as heavy expenditures and contracts
were made before the financial difficulties were foreseen, it was
deemed best, by that Company, to make an effort to finish the road to
Sparta. Whether it will go farther, will depend upon the future
resources of the Company, and the condition of the country. |
| The Directors will venture no
remarks upon the prospects of the Company for the future, so much
depends upon contingencies which no human sagacity can foresee, and so
much upon events which this Company has no power to control that all
values and business relations must remain in doubt and uncertainty
until the condition of the country assumes a more settled form. The
Board can only indulge the hope that with close management and strict
economy the investment may continue to be a safe one, yielding fair
profits to the Stockholders. |
| Jno. P. King |
|
President
|
|