AR, V&T 7/1/1861 P
Annual Report of the Virginia & Tennessee RR
as of July 1, 1861,
President's Report
 
Report of the President
Office of the Virginia & Tennessee Railroad Company
Lynchburg, September 5, 1861
 
To the Stockholders:
 
Gentlemen,
   The Board of Directors herewith respectfully submit the fourteenth annual report:
Operations of the Road
   The following facts in relation to the operations of the road will be shown in the accompanying report of the General Superintendent, and the different tabular statements annexed:
The gross earnings of the road were $798,928.60
The expenses of operating, &c. 399,414.66
Nett gain $399,513.94
   The nett gain is a fraction of fifty per cent., and five and one-half per cent. upon the total cost of the road.
Of this amount there has been applied to building telegraph line, new depots, rebuilding bridges, &c. $29,062.23
Interest on funded and floating debt, exchange, &c. 185,417.98
Total $214,480.21
   This amount being subtracted from the nett gain over operating expenses, there will remain $185,033.73, which is equivalent to five 36/100 per cent. upon the capital stock after payment of all expenses, ordinary and extraordinary. This amount has been applied thus:
Reduction of floating debt $85,962.62
Payment of Salt Works bonds 39,5000.00
Increase of cash and other resources 32,280.53
Sinking fund of one per cent. to State 10,000.00
Payment of old claims, suits, &c., not heretofore included in liabilities 17,290.38
Total $185,033.73
   There is a decrease of 7,426 tons in the amount of tonnage moved; a decrease in the average length of movement, and a decrease in the yield on each ton moved.
   There is a large increase of passengers (20,400); and increase in the average length of movement, and an increase of 47 per cent. in the yield of passengers per mile run.
   The decrease in the amount and yield of freight, was caused by the almost total failure of wheat and other crops in the West and South-west.
   The increase in the number of passengers and the yield per mile run, was caused principally by the movement of troops, most of whom were transported the whole length of the road; during the greater portion of the year there has been but one regular passenger train instead of two as previously.
   Detailed statements of the movements and yield of freight and passengers will be found in tabular statement, No. 12.
   In comparing the divisions or classes of the different products, it will be seen that the products of the forest have increased 4,297 tons, or 228 per cent.; the mines decreased 2,589 tons, or 29 per cents.; animals increased 2,761 tons, or 57 per cent.; manufactures decreased 1,782 tons, or 10 per cent.; merchandise decreased 198 tons, or two per cent.; agriculture increased 4,451 tons, or 156 per cent.; vegetables decreased 7,735 tons, or 49 per cent.
   The following are among the articles in which the variations occur. Those which increased were,
Cotton -- in pounds 7,894,590
Bacon 3,583,906
Fruits, domestic 685,347
Cattle 820,944
Lumber 718,953
Wood 6,675,716
Leather 88,188
Butter 56,993
   Among those which decreased were,
Corn -- in pounds 2,029,487
Wheat 18,233,405
Flour 3,746,339
Plaster 5,634,734
Salt 801,318
Hogs 2,707,253
Copper ore 1,191,757
Liquors, foreign and domestic 1,244,941
Drugs and medicine 399,252
Dry goods 1,382,593
Financial
   The receipts and disbursements for the year, as shown by the reports of the Auditor and Treasurer, are as follows:
Cash on hand at commencement of the year, as per report of Treasurer   $80,291.36
Receipts from all sources during the year 895,274.55
$975,565.91
The disbursements were $888,944.07
The cash on hand 86,621.84
$975,565.91 975,565.91
   The total receipts and disbursements from the organization of the Company, to the close of the last year, have been, 
Receipts $10,524,119.55
Disbursements $10,692,305.79
Deduct liabilities $485,995.59
Less resources, except cash 231,187.51
254,808.08
10,437,497.71
Cash on hand $86,621.85
   The floating debt is as follows:
Amount due by bills and notes $95,329.27
Amount due on plain bonds 4,611.99
Amount due on open accounts 62,909.30
Amount due State for interest due prior to 1858 293,670.03
Amount due State for temporary loan 29,475.00
Total $485,995.59
Resources
Due by bills and notes 5,155.66
Due on open accounts from other roads, &c. 149,205.55
Due on capital stock 52,292.68
Due Cumberland Gap Branch 3,088.73
Due Montgomery Coal Branch 809.38
Due telegraphic stock (24 shares) 2,400.00
Due cash in hands of agents 22,131.74
Due cash in hands of treasurer 86,624.84 321,705.58
Balance of liabilities above resources $163,790.01
   A portion of the above resources may be considered as valueless, having remained uncollected for several years. It may be estimated at $50,000, which would increase the liabilities above resources to $231,790.01, instead of $163, 790.01 as shown above.
   The present funded debt is:
1st mortgage bonds $500,000.00
2nd mortgage bonds 23,500.00
Enlarged mortgage bonds 1,000,000.00
Income mortgage bonds 448,500.00
Salt Works bonds 9,500.00
State loan on seven per cent 1,000,000.00
Total funded debt $2,981,500.00
Liabilities of floating debt above resources 213,700.00
Total funded and floating debt above cash and resources $3,195,200.00
   This debt is also subject to a farther credit of the one per cent. sinking fund, or $10,000 per annum paid the State (upon the $1,000,000 loan) for eight years, and which will, at the same rate, extinguish the debt in 26 years,
   There have been during the year, many causes operating to curtail the receipts of your road. First, the almost total failure of the grain crop in the West and South-west; then the washing away of the road for nearly 30 miles, together with a number of bridges, by which all operations were suspended for 20 days at one time; and then the prevalence of small pox in Lynchburg for two or three months, by which your local trade was for the time suspended.
   With the present large crop, with the seat of Government at Richmond, by which the West and South-west seeking the capital, will be forced to take this route; as well, also, as the fact that the competition for cotton and other Southern products with New York, Boston, and other foreign ports is now cut off, and that complete rail connections have been completed through Mississippi to Mobile, and through Alabama to Pensacola, the Board of Directors believe that the receipts of your road will in future equal any estimate which has been made.
Bridges
   The bridges on Peak Creek and other places, which were washed down by the freshets of last winter, have been rebuilt more substantially, and elevated in many cases, so as in future to secure them from similar accidents.
Road-Bed
   The road-bed has been placed in charge of two Road Masters, under the direction of the Resident Engineer, with a much larger force than has been heretofore employed. They are now engaged in ballasting, and before the commencement of winter will have the most important points well ballasted with broken stones.
Telegraph Line
   Poles for the telegraph line have been placed on the whole line, and arrangements are now being perfected with the Lynchburg and Abingdon Telegraph Company, by which your road will be enabled, during the present year, to put up and control its own line of telegraph.
Salt Works Bonds
   It will be seen that the amount of these bonds outstanding, by former president's report, was $47,000, and that this report shows $39,500 to have been since paid, and that there are still outstanding $9,500, making $49,000, or $2,000 more than was supposed. This was caused by an over-issue to B. K. Buchanan, in 1856, and was not detected until they were presented for payment. Proper steps have been taken and there is little doubt the amount will be refunded.
Report of Examining Committee
   The report of the Examining Committee will show that deficiencies in the accounts of different agents, amounting in the aggregate to $5,705 30/100, were discovered in October last. The different amounts have been since secured to the Company by the respective parties.
Income Mortgage Bonds
   The income mortgage bonds which had been hypothicated have all been released with the exception of 100 bonds of $500 each, now in the hands of Peters, Campbell & Co., in New York, and numbered from 481 to 580, inclusive. As there is nothing due upon them, and they have been since seen in the possession of a third party in this State, an injunction forbidding their disposal has been served upon such of the parties as could be reached. Public notice cautioning parties against trading for them has also been given through the newspapers.
Rolling Mill, &c.
   Your Board would recommend to your consideration the present difficulty of obtaining railroad supplies. In the whole Confederacy there is no manufacture of steel, locomotive tire or many other articles absolutely necessary. There is but one rolling mill (at Atlanta, Georgia) engaged in making rails, and there is no supply on hand to replace those which are wearing away. No single company in this State has the ability, even if its propriety was unquestionable, to construct the necessary works, but it is probable that an assurance of patronage to the extent of your wants, would induce other companies to the same pledge and thereby engage a sufficiency of private capital. The Government, too, in view of its great importance, might be induced to lend its aid.
Mail Services, &c.
   Arrangements have been made with the Confederate Government by which this road is entitled to the highest pay allowed by the Confederacy for the mail service and for the transportation of troops and freight belonging to the Government for one-half the usual local rates, taking therefor Treasury Notes or bonds of Confederate States.
   The reports of the different officers, with the tabular statements, will be furnished in pamphlet form as soon as they can be printed and bound.
Respectfully submitted,
Ro. L. Owen, Pres.

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