| Annual Report of the Richmond &
Danville RR |
| as of October 1, 1863, |
| President's Report |
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| Report of the President and the Directors
of the Richmond & Danville R. R. Company |
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| To the
Stockholders of the Richmond & Danville Railroad Company |
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Gentlemen,
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The President and Directors respectfully submit to you the
following report:
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The entire receipts of the road for the year ending 30th
day of September, 1863, reached the sum of $1,232,961.43.
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The working expenses of the road amounted to $820,995.07,
and the nett earnings to $411,966.36.
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The ratio of working expenses being 66.60 per cent. to
33.40 of nett earnings.
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| Working expenses |
$820,995.07 |
| Nett earnings |
411,966.36 |
| Total Receipts |
1,232,961.43 |
| To total receipts, 1862 |
724,430 |
| Increase in last fiscal year |
$508,531.43 |
| of entire receipts over
the fiscal year of 1862 |
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Indebtedness of the Company
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The entire extended debt of the Company fell due in
November last, and the holders have been notified to present their
claims for payment. All has been discharged except the sum of $30,500
held by parties who have failed to present the bonds. Payment has been
tendered to the holders, and they have been notified that the Company
will refuse to pay interest on the same from the date of the tender
payment.
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The debt of $200,000 guaranteed by the State, but not
payable before 1875, remains in the same condition, interest thereon
having been punctually paid.
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The annuity of $42,000 due to the State of Virginia, as
interest and sinking fund upon the debt of $600,000, has been
regularly paid. The continued payment, semi-annually, of $21,000,
liquidates the entire debt in a period of near thirty-three years from
the date of the bond. We have punctually paid it off for a period of
one third of the entire time.
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The foregoing constitute all of the debts of the Company
growing out of transactions connected with the construction and
working of the road. The balance in the treasury at the close of the
fiscal year was $92,994.86.
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Indebtedness of the Company on account of the
construction of the Piedmont Railroad
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By agreement with the Secretary of War, one million of
dollars, in bonds of the Confederate States, was advanced to the
Richmond & Danville Railroad Company to aid in the completion of
the Piedmont Railroad. the details and terms of the contract, and the
transactions growing out of them, are set forth in the last annual
report to the Stockholders. They are respectfully referred to the
statement for a full understanding of our proceedings. As those bonds
bore eight per cent. interest, and were placed at the disposal of this
Company, the President and Directors were required to execute to a
trustee for the payment of the Confederate bonds, bonds of this
Company for one million of dollars bearing eight per cent. interest,
as security for the loan. The bonds so executed do not bear interest
until eighteen months after the completion of the Piedmont Railroad,
and said road is in actual operation. We are collecting eight per
cent. interest upon one million of eight per cent. Confederate bonds
held and owned by this Company, and the trustee holds one million of
Company eight per cent. bonds as security, bearing no interest until
the period indicated. When the Piedmont Railroad shall have been
completed and actually in operation for eighteen months, we can be
called upon to pay the one million of dollars advanced by the
Confederate Government; this can be done by a return of the one
million of bonds now held by this Company, or by the sale of the same,
if commanding a premium, and payment made in Confederate treasury
notes.
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The policy of the Directory has been to make no use of
the Confederate bonds, except to draw the interest upon them, to
retain them as they received them, and to return them again to the
government in discharge of the debt, or sell them at a premium and pay
off the debt. Either of these alternatives will fulfill the
obligations of the Company and subject it to no risk arising from
depreciation of the currency, change in value of Confederate bonds, or
casualties growing out of the unsettled condition of public affairs;
whatever may be the developments of the future in monetary affairs or
military operations, we can hold the Company harmless from any claim
by the Confederate government.
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Having provided against every contingency in the
protection of the Company bonds, and the mortgages of the railroad, it
became necessary to raise the money required for the construction of
the Piedmont Railroad to the amount of $1,484,999 subscribed to the
stock of that Company, the President and Directors of the Piedmont
Railroad Company have, from time to time, made requisitions upon the
Directors of this Company for the payment of their subscription,
closing with a requisition for the whole amount on the 27th November
last.
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In anticipation of these requisitions, by resolutions of
your board, and by authority of the stockholders conferred at their
annual meeting in 1861, the President was authorized to execute bonds
of this Company from time to time as required to meet the
requisitions, to an amount not exceeding $1,500,000 as security for
the punctual payment of principal and interest; he was also empowered
to execute a deed of trust upon the Richmond & Danville Railroad
and other property of the Company. The deed has been duly executed,
and a portion of the bonds bearing six per cent. interest and payable
on May 1st, 1873, have been sold at different premiums. The lowest
sale of the bonds was at $133, and the highest and most recent sale at
$248. There has been a steady and regular advance in the value of the
bonds. The total amount sold is five hundred thousand dollars
($500,000), and the nett proceeds of the sales realized, reaches the
sum of $934,395.66, all of which has been paid over to the Piedmont
Railroad Company to meet the different requisitions. In addition to
that amount we have received from interest on the Confederate bonds
the sum of $82,381.12 to July 1st, 1863. As no interest will be
chargeable upon the Company bonds until eighteen months after the
completion of the Piedmont Railroad -- assuming the completion of the
road on the 1st day of May, 1864, the interest on the Confederate
bonds which will become payable to the Company will extend to the 1st
of November, 1865, and will amount to $186,666.00.
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To sum up these various items the result will be --
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| Received from sale of $500,000 of Company bonds |
$934,395.66 |
| From interest on $1,000,000 of Confederate
bonds, to July, 1863 |
82,381.12 |
| Future interest to November, 1865 |
186,666.00 |
| Total from sale of
bonds and interest |
$1,203,442.78 |
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It will be observed then, that the available resources of
the Company to meet the requisitions of the Piedmont Railroad Company
will be $1,203,442.78, for which amount your board have incurred a
debt of only $500,000. These various items of receipts which have
fallen due, and may hereafter become payable, are set apart to meet
the subscription of this Company to the stock of the Piedmont Railroad
Company. The amount will not be sufficient to complete the obligations
of the Company, and, for a distinct understanding of the future
demands upon this Company, the estimate of the cost of the Piedmont
Railroad is submitted.
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The Chief Engineer of the Piedmont Railroad Company, who
commands the confidence and respect of your Directory, submits as an
approximate estimate the cost of the road at present rates between
$2,000,000 and $2,100,000, in this the rolling stock is not included.
The stock on hand is estimated at $226,000. Relying upon this estimate
he may safely put
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| the completion of the road at |
$2,000,000.00 |
| To which add for rolling stock |
250,000.00 |
| Making the cost of the road in actual running
order |
$2,250,000.00 |
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It is probable then, that the Company will be called upon
to provide one million of dollars, in addition to the resources set
apart, to complete the road and put it in actual running order. At the
present rates the sale of an additional five hundred thousand of the
Company bonds will realize over twelve hundred thousand dollars, and
that sum may be regarded as ample provision for the entire cost of the
road, depots, and rolling stock of the Piedmont Railroad. The whole
debt incurred by the Company, if these estimates prove correct, and
they are regarded as liberal, will be a debt of one million of dollars
bearing six per cent. interest, and payable from 1873 to 1878. In
making this estimate, your Directory have the actual cost of the work
completed, and the estimated cost of that in progress of construction.
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Progress of the work on the Piedmont Railroad
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The grading of the whole road is ascertained to be, in
round numbers, nine hundred thousand cubic yards -- of which there
have been completed seven hundred and twenty thousand yards -- leaving
only one hundred and eighty thousand yards unfinished. Of the
superstructures twenty-one and one-half miles have been laid at the
Danville terminus, and the cars are actually running that portion from
Danville to a point near Reedsville. That is, beyond this point, four
miles ready for the track. At the Greensboro' terminus one mile of
track has been laid, and nine miles of the grading are nearly ready
for the track, and will be ready before the track can be laid, leaving
a gap between Danville and Greensboro' of only 13 1/2 miles, on which
the grading is nearly finished on several miles, and the entire
grading of the gap only 160,000 cubic yards to be completed. All of
the iron is to be furnished by the Government, under contract, to be
delivered on the road, and the price of the larger portion is
ascertained and fixed; the cross ties and iron will doubtless be ready
as early as they can be used. From this exhibit the Company will see
that so large a portion of the cost of the road, depots and rolling
stock has been ascertained, that the estimate of the final cost is not
underrated, without material enhancement in the present rates of cost.
The Administration take occasion to congratulate the Stockholders that
a work of so much importance to the public interests of the
Confederacy, and the private interests of the Stockholders, could be
completed under so many obstacles, and so many difficulties at so
small a sacrifice. The interests of the State in the Richmond &
Danville Railroad, and those of private Stockholders, have been
protected, we believe, by judicious measures of policy in a financial
aspect, and we have no hesitation in giving the assurance that every
effort has been made to push forward the completion of the work as
rapidly as possible.
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Condition of Roadway, Buildings, &c., of the
Richmond & Danville Railroad
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In regard to the condition of the roadway, buildings,
machine shop, and rolling stock of the Company, as well as its general
affairs, the report of your Examining Committee and Superintendent of
Transportation will inform you. Five and one-third miles of heavy rail
have been laid between Richmond and the Junction, which completes the
heavy rail to the Junction. The iron was obtained on favorable terms
by contract with the Government.
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Your Directory have to express their regret that a quorum
of Stockholders failed to meet at their last annual call. The failure
deprived them of the benefit of your counsel, and the expression of
your wishes in a most important period deeply affecting your
interests. But they wish to assure you that they will continue to
consult what they consider the interests of the Company, and to
exercise all the powers invested in them with the same energy,
decision and zeal, whether the Stockholders meet or fail to assemble.
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In closing this report, we would call the special
attention of the Stockholders to the increased ratio of working
expenses to nett earnings. The policy of the Administration has been
directed to one chief end, having due regard to economy, making this
road self-sustaining during the war. To this end over $88,000 have
been expended in new buildings. A sawmill has been erected with a
capacity to supply all the lumber for this and the Piedmont Railroad.
The teams, wagons and harness have been purchased for supplying the
logs. Teams have been purchased for supplying most of our wood, which
has been purchased, cut and hauled by us. Even the axes have been made
to cut it. A foundry has been constructed and is in operation, which
has supplied all of the iron and brass castings for the road, since
its construction in January last. All the car grease and oil used by
the Company are manufactured in the shops. We are purchasing, packing,
and curing our own bacon and beef. We have built machine and
blacksmith shops at North Side near Danville, and enlarged the
capacity of the shops in Manchester to such an extent that we can
construct and keep in repair all the rolling stock, including
passenger and freight cars, needed for both roads, with sufficient
number of machinists and blacksmiths. There has been difficulty in
procuring that class of mechanical labor; but we have been unable to
keep our own rolling stock in order, and supply the wants of the
Piedmont Railroad during the past year. These additional improvements
have been made, and expenditures incurred, in anticipation of the
wants of the Piedmont Railroad.
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To these details we can confidently refer to show the
necessity for large expenditures. In this connection a just tribute of
commendation is due to the Superintendent of Transportation, for the
discharge of his duties, and for his faithful, intelligent, and
zealous co-operation in all efforts to advance the objects of the
Board and the interests of the Company. It is due also to the officers
of the Company generally, to testify to their fidelity and zeal in the
discharge of their duties, under the most embarrassing circumstances.
The Stockholders well know the constantly advancing cost of living,
the depreciation of the currency, the rapid rise in the price of
provisions, and difficulty in procuring supplies. Amidst all, the
duties of the officers have been faithfully performed, upon the
payment of salaries inadequate, in many cases, to support their
families.
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Lewis E. Harvie
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President
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