| Annual Report of the Richmond &
Danville RR |
| as of October 1, 1864, |
| 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, 1864, were $3,261,628.96. Of that amount the sum of
$2,344,406.86 constituted the working expenses of the road; and the
sum of $917,222.10 the nett earnings. The ratio of working expenses
being 72 per cent. and the nett earnings 28 per cent. of the
aggregate.
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The entire receipts for the year 1863 were $1,232,961.43,
which shows an increase of $2,028,667.53 in the last fiscal year over
that of the preceding.
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The receipts for Government transportation in the fiscal
year, ending 30th September, 1863, were $322,182.52, and for the year
ending 30th September, 1864, $1,679,734.63.
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The entire receipts for six months, ending the 1st of
April, 1864, on Government transportation, was only $152,725.40, whilst
in the last six months, ending 1st October, 1864, they were
$1,527,009.23.
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The actual loss on Government business for the first six months
of the year was $125,761.95, and the actual working expenses of the road for
the first six months, ending on the 1st April, 1864, exceeded the entire
receipts on Government and private business by $58,705.64. Indeed, the road
was worked at a loss to the Company until the opening of the piedmont Railroad
about the 1st day of June.
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It was only in the months of June, July, August and September
that the nett earnings accrued.
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Indebtedness of the Company on account of
Construction and Working of the Road
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1. A debt of $200,000, guaranteed by the State of
Virginia, not payable before 1875, upon which the interest has been
punctually paid.
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2. The State of Virginia loaned to the Company the sum of $600,000
upon the condition of the payment semi-annually of $21,000, which was
7 per cent. per annum upon the principal, for a period of near
thirty-three years. The semi-annual payments of $21,000, to liquidate
the principal and interest, and to extinguish the entire debt. The
obligation has been punctually met for a period of eleven years, and
thus more than one-third of the debt has been cancelled.
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3. The sum of $30,500, being an extended debt of the
Company, held by parties who have refused to receive payment in the
present currency.
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4. A debt due the Confederate States Government for labor
and material furnished in repair and re-construction of the road
destroyed by the enemy in their raid. The amount of this debt has not
been ascertained and audited; but the basis of a fair and equitable
settlement by arbitrators, to be selected by the Government and
Company, has been agreed upon. An approximate estimate only can be
furnished, and that not reliable, but it may be safely stated not to
exceed $600,000, after allowing credit for the old strap iron turned
over to the Government in part exchange and payment of the heavy iron
furnished to the Company.
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Indebtedness of the Company on account of the
Construction of the Piedmont Railroad
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The last annual report contains a full statement of the
contract with the Confederate Government, requiring the deposit of 8
per cent. bonds of this Company to the amount of one million of
dollars as collateral security for the payment of the Confederate
bonds of the same amount and same per cent. of interest loaned to this
Company to aid in the construction of the Piedmont Railroad. This
company did not use the one million of Confederate 8 per cent. bonds,
but still hold them, to be returned to the Government in exchange for
its own bonds. By terms of the contract, the bonds of the Company did
not bear interest until 18 months after the completion of the Piedmont
Railroad, and said road is in actual operation.
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That period commenced on the first day of last June, and
will close about the 1st day of December, 1865, when the Government
will hold one million in amount of 8 per cent. Company bonds, and the
Company will hold one million of Confederate 8 per cent. bonds, both
bearing interest, the one being a full offset to the other, and thus canceling
the indebtedness of both to that extent.
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That transaction, though standing upon the books as a
debt of one million dollars, is substantially no debt, as the equivalent
amount is held against the Government to meet that special debt as
soon as the interest upon our bonds begins to run, that is on the 1st
day of December, 1865.
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In the last Annual Report, it was stated that the Company
had sold its bonds to the amount of $500,000, and it was estimated
that an additional $500,000 might be required to complete the
construction of the Piedmont Railroad, put it in actual running order,
and provide engines and other rolling stock. That estimate proved
larger than was actually required, the whole amount since sold being
only $316,000 instead of the estimated amount of $500,000. These bonds
have been partially registered, and in part in coupons. The following
is a statement of the bonds issued and premiums received on the sales:
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| Registered bonds issued |
$504,000 |
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| Amount received thereon |
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$942,395.66 |
| Coupon bonds issued |
312,000 |
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| Amount received for same |
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737,651.85 |
| Total bonds issued |
$816,000 |
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| Total Received |
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$1,680,047.51 |
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The sum of $816,000 constitutes the only debt incurred
for the construction of the Piedmont Railroad, and the outfit of
engines and rolling stock, except for the iron furnished by the
Government "at the cost thereof to the Government" by the
terms of the contract. Some of this iron is to be returned after the
ratification of the treaty of peace between the belligerent
Confederacies in kind; that is, in railroad iron of the same quality
and quantity, the residue is to be paid for at the value it cost the
Government. This account has not been settled with the Government, and
could not therefore be audited and reported to you.
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Condition of Roadway, Buildings, &c., of the
Richmond & Danville Railroad
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At the last annual meeting that portion of the road from
the Junction to Staunton River, a distance of 36 1/2 miles, was laid
with the old strap rail put upon the road in its first construction.
The constant use and gradual wearing had rendered it unfit for heavy
transportation and unsafe for travel at the ordinary speed. On the
completion of the Piedmont Railroad, about the 1st of June, the
transportation and travel were greatly increased, and the defects of
that portion of the road became each day more apparent. In a few weeks
the heavy transportation regularly increasing and giving but little
time between the trains for inspection and repairs, proved the
absolute necessity for a new superstructure of better and heavier
iron. This necessity was scarcely developed before the heavy column of
the enemy's cavalry struck the road at the Junction and destroyed
about one-half of the slab track, at irregular intervals, from that
point to the Staunton River. A meeting of the Board of Directors was
convened at Keysville as early as practicable. In the meantime,
Captain E. T. D. Myers, Chief Engineer of the Piedmont Railroad,
promptly moved a large force of hands, teams, and the implements used
in the construction of the Piedmont road, to Staunton bridge, and
commenced the work of repairs and reconstruction on the day after the
repulse and retreat of the enemy and whilst the timbers were still
burning. His prompt action, energy, zeal and valuable services cannot
be too highly appreciated.
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A large force of laborers was collected also on the lower
portion of the road, and equal energy and zeal displayed in repairing
the damage.
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Col. T. M. R. Talcott, with the First Regiment of
Engineer Troops, was assigned by the Government to superintend the
work, with full powers of impressment. The work was pushed forward
with the least possible delay, and was completed in the shortest
practicable time, 21 days from the day of the repulse of the enemy.
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At the meeting of the Directors held at Keysville,
Colonel Talcott, Captain Myers and the Superintendent of
Transportation, C. G. Talcott, Esq., were requested to decide upon the
condition of the slab rail and track, and to report whether it could
be relied upon for the increased transportation required by the
Government. They in concurred in condemning the old iron and united in
recommending the reconstruction as rapidly as practicable, with heavy
iron. The Board adopted their plan, and have since carried it out as
fast as the Government could furnish the iron. From Staunton River to
Meherrin Depot, a distance of 25 miles, the whole distance, except a
fraction of one mile, has been laid with heavy iron. The tracklaying
force is now employed upon and will soon complete that gap, and will
then commence laying down the heavy iron between Meherrin Depot and
the Junction. We have been assured by the Engineering Department that
the iron will be furnished as fast as we can lay it, between the
frequent passing of the trains. In a short time we may confidently
expect to congratulate the Stockholders upon the completion of an
unbroken track of heavy rail from Richmond to Danville.
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The time occupied in this work of reconstruction of 36
1/2 miles will be a little over six months, in the period covering the
most active operations of war in any campaign, and whilst the roadbed
was occupied by frequent passing of trains and by heavy
transportation. The condition of the roadway has been greatly improved
by the gradual progress made in taking up the light and relaying the
heavy rail, and is now in better condition than it has ever been for
regular and heavy transportation, with the exception of the slab track
not yet taken up.
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The depots burnt in the raids have been replaced by
temporary structures just sufficient to shelter the agents and to
afford necessary facilities for transacting the business.
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The expenditures growing out of the raids of the enemy
have been heavy, but the value of the road and the capacity for
transportation have been greatly increased. No debt, except that to
the Government for labor and materials furnished, has been incurred,
and that debt could be paid off on any day when ascertained and
settled, with less than one-half of the amount due from the Government
to the Company for the last four months' transportation for the
Government. In the months of August, September, October and November
the freight and passenger accounts against the Government exceed
sixteen hundred thousand dollars. In October the receipts on
Government transportation reached $544,462, and on private
transportation and travel $247,865.81, making the entire receipts of
the road for that month $792,327.81. For the same month in 1863 the
entire receipts were $88,284.84, the excess for the single month being
$704,042.97. The receipts for October on the Piedmont Railroad were
$271,000, as reported by the Auditor and Treasurer. Added to the
receipts on the Richmond & Danville Railroad it shows the total
receipts on the two roads for the month of October alone, on
Government and private transportation and travel to be $1,063,327.81.
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These receipts justify the belief, that all damages
growing out of the raids in May and June can be repaired, the 27 1/2
miles from the Junction to Staunton River reconstructed and relaid
with heavy rail, and all of the vastly increased expenditures of the
Company met without incurring any permanent debt. It is not considered
advisable to declare any dividends, but to devote the whole resources
of the two Companies, to the permanent improvement of the roads, to
provide engines, coaches and cars, and to keep them in the best
possible condition, importing from abroad the indispensable supplies
needed for these purposes, to provide supplies of corn and forage for
the teams, provisions for the stores, and materials for future use. It
is the policy of the administration to make the roads self-sustaining
independent of all Government aid, except the prompt payment of their
just debts. This has heretofore been impossible.
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No supplies have been secured to any extent, because
there have been no funds in our treasury. Purchases could not be made
of beeves in border counties, nor of corn and pork in the States south
of us without money. Laird, tallow and oil, negro clothing, forage,
corn and meat can only be procured by barter or by money. The credit
system has ceased to be practicably available.
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The debt due by the Government to the two roads for the
last four months is over two millions of dollars. The whole amount
paid to us for the last twelve months' work has been only
$1,098,948.00
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We have had the utmost difficulty in meeting the daily
current expenditures absolutely necessary to work the roads. Inferior
materials have been used for want of funds to purchase better. No
supplies could be accumulated, for we had no means for purchase.
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The receipts from private freight and travel constitute a
small proportion of the earnings of the roads. The great business is
done for the Government, at rates which barely pay the necessary
expenses incurred in doing the work; and therefore the prompt payment
of all claims is indispensable to enable the roads to get supplies.
The difficulties are greatly increased already, and they will become
insuperable in a short time, as Quarter Masters, Commissaries and
Agents of Counties and Corporations are actively engaged in
purchasing. This statement is made in no spirit of complaint against
the Government, but as necessary justification of the Directory to the
Stockholders and to the Government. In the great struggle now
progressing, all the resources of the companies put in our hands will
be used to promote the views of the Government; but efficiency cannot
be justly required without requisite means.
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The operations of the companies have been greatly delayed
by the recent Orders of Conscription. The limitations upon exemptions
and details are too restricted to allow the roads to be worked to
their greatest capacity. As the number of engines and trains are
increased upon the roads, the number of experts in the shops, on the
engines and on the roads must necessarily be enlarged. The limitation
can be guarded and fixed solely by the amount of transportation needed
by the Government. Every additional engine requires additional experts
and exemptions.
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The Piedmont Rail Road was completed and actually in
operation on the 1st of June, though a few trains had passed over the
track before that day. It has been opened for through travel and
transportation about six and a half months, and the receipts from the
1st January, 1864, to the 1st January, 1865, will exceed one million
and a half of dollars. The actual receipts to the 31st of October,
reached $1,147,345.00, and they are regularly increasing. The last two
months must of course be conjectural, as the time has not expired; but
enough is known to make that estimate sufficiently small.
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As the running on the road was commenced as early as
practicable on account of the urgent need for transportation of
supplies for the army, the Administration has been subjected to much
severe and unjust criticism. It was opened without proper sidings,
depots, platforms; and without supplies of wood or water, as the whole
labor at the command of the company had been applied to construction.
In a very few weeks after the road was opened, the enemy destroyed the
most of the track of the Richmond & Danville Railroad, extending
from the Junction to Staunton River. All of the labor, teams and
materials which could be spared from the Piedmont were transferred to
the Richmond & Danville Railroad for repairs and reconstruction.
That transfer postponed the operations necessary to get a supply of
wood, water and materials for the convenient and regular working of
the road. It has been impossible to hire sufficient labor, even by the
offer of seventy five dollars per month. The company advertised in the
city and in local papers for the hire of one hundred slaves, and the
agents were instructed to make every effort to secure them, even by
the payment of that price, to afford every facility and convenience
for transportation and travel. The efforts were unsuccessful, and both
companies were driven to the necessity of applying to the Government
for labor. In a short time, it is believed, the force now at work will
complete important arrangements for connections at Danville and
Greensboro', -- secure a full supply of wood, put the roadbeds in
better order, and enable the Superintendent of Transportation to run
the roads with more regularity and efficiency.
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The labors required of the Officers and Operatives have
been constant and in many cases excessive. They have generally been
discharged with fidelity and diligence, deserving high commendations.
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The Superintendent of Transportation has been overtasked
in the duties required by his position, but he has spared neither
labor, zeal nor fidelity in the discharge of those duties.
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On the 1st of October, President Harvie in the zealous
discharge of his duties met with a most serious and painful accident,
the results of which have kept him closely confined. In the loss of
his services, the companies and the country sustained temporarily a
great misfortune. I am happy to state the confident expectation of his
early recovery and restoration to usefulness. At the request of the
Board of Directors of the two roads, I undertook to discharge the
duties of his office. Considerations of duty which I cannot disregard,
compel me to notify the Stockholders that I must decline to serve them
any longer in that office.
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Respectfully submitted by
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John R. Edmunds
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President, pro. tem.
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