AR, NC 6-1-64 P

AR, NC 6/1/1864 P

Annual Report of the North Carolina RR

as of June 1, 1864,

President's Report

President's Office N. C. R. R. Co.

Company Shops, July 6, 1864

To the Board of Directors:

Gentlemen:

I submit to you the Fifteenth Annual Report of the operations of the Road for the year ending 31st May, 1864:

Earnings From All Sources
From Passengers, other than Troops	$851,483.40
From Government Passengers	695,709.27	$1,547,192.67
From Freight -- Private	$609,316.35
From Freight -- Government	743,580.91
From Freight -- Southern Express Company	292,175.75	$1,645,073.01
From Interest	$6,741.08
From Mails	$26,375.00	$33,116.08
From Shops	$19,541.62
From Rent	2,156.16	$21,697.78
Total Earnings		$3,247,079.54
Expenses
Transportation	$293,554.34
Maintenance of Road	108,558.76
Maintenance of Cars and Machinery	201,495.72
Tax	35,171.86
Interest and Premium on Bonds	33,747.09
Rent of Cars and Engines	109,980.50
Hand Hire	181,698.89
Loss and Damage	115,617.07
Salary	49,546.99
Supply Account	462,286.82
Purchase of Engines	46,000.00	$1,637,658.01
Nett Earnings		$1,609,421.53

Compared with last year

Gross earnings -- 31st May, 1864	$3,247,079.54
" " " " " 1863	1,649,935.26
Excess this year	$1,597,144.28
Nett earnings this year	$1,609,421.53
" " " last "	1,018,743.16
Excess nett earnings	$590,678.37

Financial

The Treasurer’s statement set forth particularly all disbursements made during the year and includes not only payments for actual working expenses, but also large amounts for purchase of cotton, coupons, real estate and dividends.

In consequence of the Act of Congress regulating the currency passed in February last, under your instructions I invested all the money, we had on hand on the 1^st of April, in bonds and stocks; and the item of cash in hand on the 1^st of June, Treasurer’s account, amount $713,006.01 includes:

7.30’s C. S. Bonds at average premium of $1.10	$177,300
7 and 8 per cent. Coupon C. S. Bonds average premium of $1.12	58,500
4 per cent. Certificates	270,500
Total amount of Bonds and Certificates	$506,300

On the 22d of March the Board directed that the Company should pay the Confederate Tax on Individual Stock, and that three time the amount of that tax should be paid to the Treasurer of the State in 4 per cent. Bonds of the Confederate States. Under that resolution, $100,000 has been paid to the Treasurer since 1^st June. Though we have been ready at all times to pay the tax, and have urged upon the Collector to receive the same, yet he has not collected it, as he as received no instructions. I had hoped also to avail ourselves of that opportunity to dispose of a considerable amount of five dollar bills which we had received at par, and which now will be subject to a discount of one-third.

This derangement of the currency has operated seriously against us. The Confederate Government owes us a very large sum for transportation, amounting to over $650,000. Yet since the 1^st of April we have only received from that source $150,000, and in our repeated applications for money we have been answered that there was no money on hand.

When it is considered that our monthly expenditures are now about $200,000, and that our duty to the Government requires us to give them almost the exclusive use of the road, thus depriving us of our ordinary revenue from private freights and passengers, it is not a matter of astonishment that we have not been able to pay our ordinary expenses without recourse to loans, which have been made on two occasions. And although we have an apparent large balance in the hands of the Treasurer, yet consisting of bonds, we cannot make them available at present for payment of debts. We hope, however, every day to hear from the accounting officers of the Government that they are prepared to liquidate our accounts.

Two Dividends have been declared during the year one on the 15^th of July of ten per cent., the other 1^st of February of six per cent.

Agreeably to the resolution of the stockholders at their last annual meeting, we have purchased eight hundred and sixty-five bales of cotton, weighing three hundred and sixty-five thousand eight hundred and forty-four pounds, at an average cost of fifty-four cents.

This cotton is now stored, and well secured under good shelter.

Transportation

The number of passengers, other than soldiers, carried over the road, has been	228,522
Number of soldiers and government agents	166,172
Whole number of passengers carried	394,694

Compared with last year,

Number of passengers other than soldiers	210,987
" soldiers and government agents	102,526
Whole number last year	313,513
Excess this year	81,181
And we can proudly say, that under the blessing of God, not one of this vast multitude has been in the slightest degree injured by any fault or carelessness of any of the servants of this Company. Three soldiers have lost their lives in attempting to jump on the train while it was in motion.
Earnings from private freight have been --
Amount carried East	$245,944.69
" " West	363,371.66
	$609,316.35
Government freight	743,580.91
Southern Express Company	292,175.75
	$1,645,073.01
Total amount freight earnings last year	643,422.46
Excess this year	$1,010,650.55

It is needless for me to say that the road has been worked to its utmost capacity with our present means; for by a careful examination of the statements above set forth, and the fact that we have had no more engines and but few more cars than in the preceding year, it will be at once perceived that your employees have worked faithfully, and are entitled to the commendation of their superior officers.

Our locomotives are in much better order than they were at the commencement of the war. One has been entirely rebuilt, and with pride and pleasure we can point to the “Governor Morehead,” and defy any road in the South or elsewhere, to show an engine that will surpass her in its appearance or performances.

During the year most of the engines have been thoroughly overhauled and repaired, nearly all of them have been refitted with new tyres of our own construction, and our experience satisfies us that the chilled tyres of “Company Shops” are fully equal, if not superior, to the “Low Moor.”

We have not built any coaches during the year; suitable material for their construction cannot be obtained. We are deficient in this part of our equipment, and many on the road require renovation. Two have been thoroughly repaired and refitted. We have built twelve new box cars and four new flats. We have purchased fourteen new box cars and as rapidly as possible intend building others. But we find great difficulty in procuring material absolutely necessary, and when obtained it is at very great cost. Before the war we could build a good box car for four hundred and fifty dollars, now it costs about eight thousand dollars.

Road

The road is now in admirable condition with the exception of bad rails. I say without hesitation that the road bed itself is in better condition than it ever was. It is well ditched ad much of it, especially bad cuts, has been well gravelled.

We have kept two trains constantly at work, and some fifteen or twenty miles have been ballasted during the year; and this work is to be carried on until the whole road bed is covered. Its beneficial effects have been manifested. But few cars have been run off during the year, and not a single engine has been off the track. Much work has been done to the bridges; several of them have been thoroughly repaired, and a large force is kept constantly on that work.

Buildings at Shops

During the year we have erected seven dwellings for our employees at this place, and four good log-houses for negroes. Many more are needed, and will be erected when we can conveniently do so. The comfort of the men and their families has been greatly increased.

We still need those two great pioneers of civilization – school-houses and churches. Much complaint exists among those who are compelled to live here, that their children are growing up in ignorance and sin. I know not what course to recommend; but certainly something ought to be done to take away this reproach from us.

Here is a population of three hundred persons, who live in a Christian land, and yet they never hear a prayer nor a sermon, and that not from any fault of theirs.

The round house for the protection of your engines has not been built. However the brick has been made, and we hope before the next winter that a sufficient portion of it will be completed.

The passenger shed at Raleigh has not been built, simply because we could not obtain the lumber. A plan for a joint shed with the Gaston road has been agreed upon, and a large portion of the lumber cut at our own mill; but the demands of the government for lumber to build warehouses and hospitals has been so great that we have not been able to obtain what we need. It is hoped, however, that we will have it completed before the ensuing winter.

Wood and Water

The policy adopted last year in purchasing land for procuring wood and cross ties has been proved to be a wise one. All the wood used between the Shops and Raleigh, and much on other portions of the road, has been procured off your own land. We are now using about twice as much wood as at any former period – the consumption is enormous. I am sorry to say that we have but a tolerable supply; and if the government takes from us all the men liable to military duty, who are now engaged in getting wood and ties, the road will be seriously crippled, if our trains are not compelled to stop.

Our supply of water on the Eastern Division is abundant. Owing to increased transportation in the Western Division, we have often been delayed for the want of water. Arrangements have been made to obviate the difficulty; and new tanks have been erected six miles from Charlotte, and at McLean’s. One is also ready to put up at Yadkin River, into which the water will be conducted through pipes. We have also increased our supply at Concord, using a Hydraulic Ram.

Loss and Damage

This item of expenditure for the year appears and is very great. Fire, theft, and water, have been our great enemies. And as we have to pay market price for everything lost or destroyed, a few articles amount to a large sum. The government formerly charged us with actual cost, but now it makes us pay market price.

Fire has been the cause of our principal losses. Many articles have been damaged by rain through leaky cars, especially tobacco. The loss from theft is great; but it will now be much less as we have our cars in pretty good repair, having locks for the doors, and also hold the Conductors responsible when there is any reason for it. But manage it how you will, this will always be one very considerable item of your expense.

Piedmont Rail Road

Since the completion of this work in May, and for some weeks previous, a large portion of government freights have been carried to Greensboro’ only. A large portion of the travel also takes that route. So far as freights are concerned, we will lose nothing, as we can make two trips to Greensboro’ from Charlotte while we are making one to Raleigh. Yet our passenger trains run the whole length of the road, and as passengers take the nearest route we will lose some revenue from them. I think the connection an advantageous one for our interest, whilst its benefits to the Confederacy are incalculable. At this time the enemy having possession of the Petersburg Railroad, our line is the only one that can carry those vast quantities of stores requisite to the support of that noble army who are so successfully battling for our very existence.

Conclusion

Permit me to congratulate you upon the success of your road. We are now returning to the State and the stockholders regular semi-annual dividends of handsome amounts. Your road and its equipment is in good order – inferior to none in the Confederacy. But it is not only in a pecuniary view that renders it valuable to you. Its importance to our country cannot be calculated. Being one of the main arteries by which the army is sustained, our destruction would be its destruction, and that gallant band of heroes, who now in Virginia are stemming the angry tide of battle and keeping from our immediate homes the desolations of war, would be forced into our midst, and the time of our redemption would be prolonged.

Respectfully submitted,

Thomas Webb