| Annual Report of the Vicksburg, Shreveport
& Texas RR |
| as of September 1, 1861, |
| President's Report |
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| Report of Charles G. Young |
| President of the Vicksburg, Shreveport
& Texas Railroad Company |
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| Office of the Vicksburg, Shreveport &
Texas R. R. Co. |
| Monroe, Louisiana, September 1st, 1861 |
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To the Stockholders:
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| Gentlemen, |
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Since the date of our last annual report, we have laid 26
miles of track on the Eastern Division, thereby completing the
connection between Monroe and the Mississippi River; the first trip of
the cars over the entire division having been made on the 27th day of
January last. The completion of the road to this place was justly
deemed by yourselves, by the Board of Directors and by the country at
large, a matter of great moment; and, as such, was a source of
congratulation to all. It was achieved under great difficulties, and
involved an indebtedness which, however small in comparison with the
resources of the Company, it was not thought prudent to increase amid
the uncertainties that overhung the future business of the country.
Chiefly on this account the contract with Fannin, Grant & Co. was
terminated by mutual consent, and the work they had begun on the
Middle Division was suspended. They had earned, under their contract,
$440,000 in guaranteed stock, which was issued to them. They had also
earned $88,000 in bonds, and we owed them about $120,000 in cash, all
of which was paid them in our first mortgage bonds at par. For the
revenues of the road, to which they were entitled, we relieved them
from their obligation to go on with their contract, and allowed them
$152,000, which were also paid then in our bonds at par; and we
purchased from them ninety-two slaves, for which we paid them $135,200
in bonds, at the rates we have been realizing in cash. On the 1st day
of March the road was turned over to this Company; and, since that
day, has been operated on our own account. At that time we felt
assured that the revenues of the finished road would be amply
sufficient to pay the interest accruing semi-annually on the
guaranteed stock and bonds sold, and, in the possible event of any
accident, the other resources of unpaid subscriptions and land sales,
would, it was believed, always enable us to meet our obligations and
protect the credit of the Company. In this our expectations have been
entirely disappointed. The revenues of the road have but little more
than paid its current expenses -- nothing has been realized upon sales
of land, and the collection of moneys due the Company has been
entirely suspended. It would not have been possible to have forced
collections, and we thought it improper to make any effort to do so.
We could not foresee events which have since fallen upon our country,
nor calculate the effect of a war waged by a great and powerful enemy
for our subjugation. Beyond this, there is no reason to distrust the
judgment we had formed of the business of the road, and its ability,
in any ordinary times, to meet all of its liabilities. In a statement
of the financial condition and affairs of the road, made to the
stockholders by the President in March, its net income for the first
year was estimated at $125,000. By reference to the report of the
General Superintendent, it will be seen the gross earnings for the
first six months were $53,584.341; and, with these figures before
him,, he confidently estimates the earnings, in times of ordinary
prosperity, at $250,000 per annum, without materially increasing the
expenses. This is fully up to any estimate submitted by us, but is no
doubt below what will be realized whenever the business of the country
shall resume its usual prosperity. There has certainly not been
one-forth the trade or travel of ordinary seasons. But the income for
the past six months, multiplied by four -- doubled -- would exceed, by
$164,000, Mr. Wadley's estimate.
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Thus far, nothing has been received for the
transportation of the mail. Hereafter this will add $6,400 to the
earnings.
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The location of the road is such as to deprive us of the
advantages which a few roads, of more central position and nearer
proximity to the seat of war, have derived from it; while we suffer all
the losses incident to the general prostration of business. The earnings
of the road, however, have been sufficient to pay its current expenses,
and the repairs done have improved the track, and the condition of the
rolling stock is quite as good as when we got possession. It is of great
public utility. Considerable service has been rendered to the State, for
which no charge has been made; and two thousand eight hundred and
eighty-three troops have been transported for the Confederate States, at
the rate of two cents per mile for each soldier. The expense account for
maintaining and operating the road is charges with $11,742.45 for hire
of slaves belonging to the Company, but does not include anything for
officers' salaries, amounting, for the time, to $8,750.
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Upon a careful survey of the business of the road during
the past six months, we think it will continue to pay its current
expenses and maintain itself in tolerable order, until such time as
the cotton shall begin to be moved. When this takes place, and the
business of the country assumes its former prosperity, it will no
doubt begin to pay its interest and other obligations. Meantime, we
deem a good husbandry indispensable -- by a careful conduct for the
preservation of its means and resources, by reducing the salaries of
officers, and the practice of a rigid economy in all expenditures.
Beyond this, and during the continuance of the war, we see no
reasonable ground of promise.
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Upon the completion of the road to Monroe, it was found
the difficulties and expense of getting freights across the Ouachita
River would be so considerable as to affect the business of the road,
and the Board of Directors, therefore, determined to bridge it during
the present season, if means could be raised for that purpose. It was
believed the bridge would increase the revenues of the road from
twelve to fifteen thousand dollars per annum, while the interest upon
the cost of construction would not exceed four thousand dollars. The
investment was thought quite safe, and, accordingly, some of our
largest stock and bond holders, who were personally cognizant of the
facts upon which the estimates were based, agreed to take the required
amount of our bonds at eighty cents on the dollar, and contracts for
building the bridge were closed and the work immediately begun. After
the war began, money became so scarce that our friends, for the
greater part, were unable to comply with their promises to cash our
bonds, made in all good faith. This deprived us of the means relied
upon, which has retarded very much the work, and would have suspended
it, but that it had advanced so far as to render it advisable, by all
means, to go on to completion, if possible. For the progress that has
been made in its construction and the present state of the work,
together with the depot buildings erected and in progress, and a
particular statement of the condition of the road, and the business
done on it, you are respectfully referred to the accompanying report
of Wm. M. Wadley, General Superintendent.
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The Treasure's report is a full statement of the receipts
and expenditures during the year. Consolidating these with the
aggregates previously reported, shows the entire amount of receipts
and expenditures, from the beginning of operations to date as follows:
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Received |
| I. Payments Made
Upon Stock Subscriptions |
| 1. Individual subscriptions |
$949,365.23 |
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| Less reduction by tax |
24,439.41 |
$924,925.82 |
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| 2. Parish of Madison |
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$101,828.26 |
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| 3. Parish of Caddo |
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100,322.65 |
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| 4. City of Shreveport |
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24,070.23 |
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| 5. City of Vicksburg |
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43,177.10 |
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| 6. State of Louisiana |
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291,000.00 |
$1,485,324.06 |
| II. Contributions to preliminary survey |
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346.00 |
| III. Sales from depot lot at Monroe |
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1,452.50 |
| IV. House rent |
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608.90 |
| V. 713 First Mortgage Bonds |
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713,000.00 |
| VI. Tax payers to make tax receipts equal shares |
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67.84 |
| VII. Sales of lands |
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45,728.12 |
| VIII. Road earnings |
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53,584.41 |
| IX. Profit and loss, (negro hire) |
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11,603.68 |
| Indebtedness of
Company |
| 1. Bills payable |
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$48,706.66 |
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| 2. M. Morgan & Sons |
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43,010.34 |
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| 3. J. R. Anderson |
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1,115.99 |
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| 4. John Ray (payable in bonds) |
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3,500.00 |
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| 5. W. O. Wadley, contractor |
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2,519.48 |
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| 6. W. G. Bonner & Co |
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| (a) Bonds retained |
$33,880.34 |
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| (b) Cash |
6,047.56 |
39,927.90 |
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| 7. Due agents |
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1,162.02 |
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| 8. Due connecting roads |
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12.00 |
139,954.39 |
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$2,451,669.90 |
| Disbursed |
| Construction |
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$1,844,631.96 |
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| Depot grounds and right of way |
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36,736.37 |
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| Engineering |
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93,322.21 |
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| Printing |
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5,580.51 |
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| Salaries |
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48,034.94 |
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| Expenses |
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16,666.48 |
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| Operating and maintaining road |
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47,613.81 |
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| Commissions |
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15,428.66 |
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| Law Charges |
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13,408.15 |
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| Coupon Interest |
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14,371.93 |
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| Interest (balance) |
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109,381.86 |
$2,245,126.88 |
| Ninety-two slaves |
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135,200.00 |
| Fannin, Grant & Co, on interest account |
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$16,240.65 |
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| Bills receivable |
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34,001.97 |
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| Account against Confederate States |
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3,170.32 |
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| Balance in hands of agents |
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2,381.97 |
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| Balance of negro hire |
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104.67 |
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| Cash and cash assets |
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15,443.44 |
71,343.02 |
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$2,451,669.90 |
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In addition to the indebtedness which appears above, the
Company owes a balance of interest unpaid this day of about $25,000,
and it owes a few thousand dollars of accounts no rendered.
Altogether, $130,000 will cover its entire cash liabilities. The
interest on the bonds, and the guaranteed stock sold, will approximate
$100,000.
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There are due the Company, from various sources, about
$318,000 -- estimating the loss on our subscription lists as
heretofore. How far our future collections may be affected by the war,
or in how far the ultimate loss may be increased by it, it is
impossible to foresee. The President, however, estimates that, in any
event, enough will be eventually collected to pay the amount of our
present indebtedness and the interest which may accrue on the bonds
and privileged stock during another year. Should the road, the, pay
its current expenses, and the war continues one year longer, the
Company will owe as much as the amount, probably collectable, due to
it. Under these circumstances, it may be well for the stockholders or
the incoming Board of Directors to consider the policy of exchanging a
portion of our lands for the bonds and stocks upon which interest is
accumulating, whenever this can be done upon fair terms.
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The Company owns over 340,000 acres of land; 80 miles of
finished road; 98 slaves; has 15 miles of road-bed nearly graded; and
$50,000 worth of iron on hand.
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Under ordinary circumstances, the affairs of the road
should be regarded as healthful and prosperous; but it must share
largely in the sacrifices which manhood and patriotism are making upon
the altars of Liberty and Independence.
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By order of the Board
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C. G. Young, President
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