AR, SC 1/1/1862 P

Annual Report of the South Carolina RR
as of January 1, 1862,
President's Report
 
Report of the President and Directors
 
Office of the South Carolina R. R. Co.
Charleston, January 22, 1862
 
To the Stockholders of the South Carolina Railroad Company
 
Gentlemen,
   The Board of Directors have the honor of presenting to you their Annual Report of the operations of the Company for the year ending the 31st December, 1861, and of its financial condition at that date.
The Gross Income, as shown by Statement A, is $1,161,742.18
And the expenses of management, ordinary and extraordinary 588,466.95
Leaving $573,275.23
From which deduct interest, damages, stock killed, etc 168,697.31
and there is left a Net Income of $404,577.92
Against this we have charged two semi-annual Dividends of 3 per cent each 349,164.00
and carried the balance $55,413.92
as heretofore, to Surplus Income account.
   The usual Statements and Tables from the Auditor's Department, containing all necessary information, are herewith submitted.
The Income of the year shows a decrease from that of 1860 $337,894.17
At the same time, however, there has been a reduction in our expenses of 213,928.00
making an actual loss of $123,966.17
   The condition of the country affording the amplest explanation of the cause of this decrease, the Board deem it unnecessary for them to attempt any, hoping, in view of the disturbed state of the times, that the result of the operations of the year will prove satisfactory to the Stockholders.
   It is gratifying to the Board to refer to the Report of the General Superintendent, particularly with regard to the fact of the good condition of the Company's property, and equally so respecting the reduction of the operating expenses for the past year. It will be observed, that a further reduction is contemplated by him, in at least one of the departments -- and the probability is, that the expenses of the ensuring year will not be greater than those of the one just closed.
   By reference to the Debt account, it will be seen that there has been a reduction of the balance of indebtedness during the year of $69,372.79.
   The Board have arranged with the holders of $200,000 of the Bonded Debt, payable in 1863, to extend its time of payment at par for ten years, at an interest of 7 per cent per annum, payable semi-annually.
   Since your last meeting, a favorable opportunity has occurred for securing to the Company the long desired improved connection by Rail between Charleston and southwestern Georgia and southern Alabama, through the construction of a Road from Warrenton to Macon, Georgia {the Milledgeville RR}. A free and uninterrupted transit of freight will be thus secured, the advantages of which to this Company must be very great. This object was accomplished, on our part, by a subscription of $200,000 to the capital stock of the above mentioned Road. It will be built, it is expected, in the next two years; the amount of our subscription will consequently be distributed over that space of time, and will not materially embarrass us in any financial respect. When the amount to be expended comes to be compared with the almost certain benefits to be derived from the connection that will be secured to us, the Board hope the Stockholders will appreciate the motives that induced them to make the subscription.
   The Board take great pleasure in acknowledging the liberal action of the City of Augusta in promoting the building of the Road by subscribing largely to the enterprise, and consenting to remove the most important obstacles to the free transit of freight through the City by this Company.
   In view of the present uncertain condition of the country, the Board think it best not to indulge, at this time, in any speculation as to the future prospects of the Company.
   All of which is respectfully submitted.
John Caldwell
President

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