| Annual Report of the Virginia &
Tennessee RR |
| as of July 1, 1862, |
| President's Report |
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| President's Report |
| Office of the Virginia & Tennessee
Railroad Company |
| Lynchburg, September 4th, 1862 |
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To the Stockholders:
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| Gentlemen, |
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The Board of Directors herewith respectfully submit their annual report:
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Operations of the Road
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The following facts will be shown in the accompanying reports of the General
Superintendent, and the different tabular statements annexed:
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| The gross earnings of the road were |
$1.051,216.62 |
| The expenses of operating (excluding sales of
old iron, goods, $c., amounting to $10,582.18) |
462,429.81 |
| Nett earnings above operating expenses |
$588,786.81 |
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This shows the net earnings to be fifty-six per cent.,
and the expenses of operating to be forty-four per cent. of the gross
earnings; this cost of operating is unusually low, and much of it is
due to the purchase of large supplies at the beginning of the war, and
to the present diminished speed.
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The average earnings of the road, per mile run,
has been $2.78, being an increase of 74 cents per mile over the
preceding year; the average receipts, per mile run, has been
$4,923.73, an increase of $1,233.57 per mile over the previous year.
The increase of receipts have been 31 61/100 per cent., while the
increase of expenses have been but 7 9/10 per cent.
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The number of passengers carried (including troops) was
197,106, an increase of 67,317; 103,737 were troops, showing a
decrease of 2,230 of passengers, other than those transported by the
Government. The earnings from those transported by the Government were
$313,242.13, an increase of $192,739.45, and the earnings from other
passengers were $263,995.04, a decrease of $62,482.25. The total
earnings from passengers was $577,237.17, an increase of $130,257.22.
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The total number of tons of freight transported is
67,339; an increase of 6,749 tons. The number of tons transported one
mile is 8,263,421; an increase of 1,712, 844. The earnings for freight
were $403,599.83; an increase of $119,007.35. In comparing the
divisions or classes of the different products it will be seen that
those of the forest have decreased 3,603 tons or 58 per cent. The
mines have increased 3,225 tons or 42 per cent. Manufactures increased
10,656 tons or 70 per cent. Merchandise decreased 878 tons or 11 per
cent. Animals increased 3,225 tons or 42 percent. Agriculture
decreased 5,184 tons or 70 per cent. Vegetables decreased 1,690 tons
or 22 per cent. Detailed statements of the number of passengers and
quantity of freight, together with their movements, &c., will be
found in tables appended.
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In consequence of the restrictions placed by the military
authorities, the movement of much freight has been lost to the road.
Many producers are now hauling bacon, flour, &c., in wagons to
prevent its impressment on the railroad. Much difficulty has also been
caused by these restrictions being at one time rigidly enforced and
then again suddenly relaxed, causing heavy loads in one direction and
empty trains returning. The producer in Tennessee is prohibited the
shipment of grain, meat, leather, &c., to this State, and, in like
manner, the producer here is forbidden shipments in that direction.
This is observed by the different subdivisions of the army, and the
expectation of grain or meat from the centre of your road (unless for
the private consumption of the party owning it) to either terminus, is
prohibited. Vegetables, under which head is included the cereals, have
decreased 22 per cent. The producer cannot ship his flour beyond
Bristol or Lynchburg, and even then it is impresses by the military
authorities at a price fixed by themselves. The result is, the farmer,
seeing all foreign products enormously high and his own forbidden
shipment to others or forced to sales to the Government at slightly
advanced prices, hopes to see those regulations relaxed and his flour
go to parties South at $40 per barrel, its present value, in return
for which he will take their sugar at 50 cents per pound. There is now
upon your line of road large quantities of grain and meat (many
parties have the crops of both the last and present year) which are
now waiting the removal of the military restrictions.
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Financial
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The receipts and disbursements for the year, as shown by
the reports of the Treasurer and Auditor, are as follows:
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| Cash on hand at commencement of the year, as per
report of Treasurer |
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$86,621.84 |
| Receipts from all sources |
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1,189,525.32 |
| Total receipts |
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$1,276,147.16 |
| The disbursements were |
$1,048,032.66 |
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| The cash on hand |
228,114.50 |
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$1,276,147.16 |
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The total receipts and disbursements from the
organization of the Company, to the close of the last year, have
been,
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| Receipts |
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$11,369,580.43 |
| Disbursements |
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$11,200,998.89 |
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| Deduct liabilities |
$397,628.00 |
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| Less resources |
338,095.09 |
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59,532.91 |
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11,141,465.98 |
| Cash on hand |
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$228,114.45 |
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Resources
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| Due by bills and notes |
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$1,964.47 |
| Due on open accounts from
Confederate Government, other roads, &c. |
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165,414.66 |
| Due on capital stock |
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51,562.68 |
| Due Cumberland Gap Branch |
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3,088.73 |
| Due Montgomery Coal Branch |
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809.38 |
| Due Lynchburg and Abingdon Telegraph
stock |
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2,400.00 |
| Due Confederate States bonds |
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105,500.00 |
| Cash in hands of Treasurer |
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228,114.50 |
| Cash in hands of other agents |
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11,253.28 |
| Total resources |
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$570,107.70 |
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In addition to $105,000 of Confederate bonds, $113,000 of
above cash on hand was invested on 1st July in Confederate States
bonds, and the system adopted by your board of investing either in
bonds of the Company or Confederate bonds has been pursued.
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A portion of the above resources may be considered
valueless, having remained uncollected for several years. It may be
estimated at $50,000.
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The floating debt is as follows:
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| Amount due by bills and notes |
$7,769.19 |
| Plain bonds outstanding |
4,611.99 |
| Due on open accounts |
32,988.23 |
| Due to individuals for negro hire to 1st Jan'y,
1863 |
30,161.56 |
| Due State for interest prior to 1858 |
292,622.03 |
| Due State on account of advance |
29,475.00 |
| Total floating debt |
$397,628.00 |
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Included in the above is the amount claimed by the State
for interest due several years since. They claim no interest on it,
but it is difficult to ascertain the precise amount due. The late
Second Auditor promised to render an account with a full statement.
This was prevented by his death some months since. Arrangements are
now being made for its final adjustment.
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The funded debt is as follows:
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| 1st mortgage bonds |
$500,000.00 |
| 2nd mortgage bonds |
23,500.00 |
| Enlarged mortgage bonds |
1,000,000.00 |
| Income mortgage bonds |
351,000.00 |
| Salt Works bonds |
9,500.00 |
| State loan on seven per cent |
1,000,600.00 |
| Total funded debt |
$2,884,000.00 |
| Total floating debt |
397,628.00 |
| Total funded and floating debt above |
$3,281,628.00 |
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| The total funded and floating debt on 30th June,
1861 (less cash and resources) |
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$3,195,790.01 |
| The total funded and floating debt on 30th June,
1862 |
$3,281,628.00 |
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| Less cash and resources |
570,107.70 |
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| Total funded and floating debt at present |
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2,711,520.30 |
| Decrease in floating debt |
$88,367.59 |
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| Decrease in funded debt |
97,500.00 |
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| Increase in resources over 1861 |
248,402.12 |
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| Worthless debts as in 1861 |
50,000.00 |
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$484,269.71 |
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This large decrease of your floating debt is made by
foregoing any dividend of your earnings, and by applying the whole of
the same to the reduction of your debt; here, the question presents
itself, is not a stockholder, who pays from the net earnings to which
he is entitled, the amount of a share of stock, entitled to an
additional share therefor. The original cost of constructing and
equipping the road was $7,186,652.50; the capital stock subscribed was
35,052 shares, upon which there has been paid $3,429,965.69, leaving
the deficit of $3,756,686.81 to be paid from the earnings of the road;
a large portion of this has already been paid in this manner, and your
Board thinks it the wisest course to continue this system as rapidly
as practicable, and petition the Legislature of the State for an
increase of the capital stock to the amount of the cost of
construction, and this stock shall be issued to the stockholders as
the earnings of the road extinguish the debt. There is an additional
reason, the net earnings this year were 16 1/2 per cent. upon the
capital stock, but only about eight per cent. upon the actual cost of
the road, and you are restricted by your charter to a dividend not
exceeding 15 per cent., or 7 1/2 per cent. upon the actual cost. It is
but just to give to the stockholders some evidence of the amount paid
out of his earnings, as well as that originally paid out of his
pocket:
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| The cost of the road is |
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$7,186,652.30 |
| Amount received on 35,052 shares |
$3,429,965.69 |
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"
sale of bonds |
2,794,947.10 |
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"
earnings of the road |
961,739.51 |
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$7,186,653.30 |
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There remains upon the books, due from subscriptions of
stock by individuals, $23,187.68, which you Board recommend should be
sold and the account of subscription so far closed. There are, also,
many accounts due several years since from parties who have since died
insolvent. It is recommended that you order such accounts be closed by
placing them to the account of insolvent debts.
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Rolling Mill
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The importance of establishing a rolling mill, sufficient
for your own purposes, cannot be too strongly urged upon you. Repeated
conventions have been held during the past year by the different
railroad companies of the Confederate States, but, as yet, nothing has
been accomplished; each company was willing to guarantee its business
to any mill which might be erected in its neighborhood, while few or
none were willing to assist in its erection; if some authority was
given your Board to subscribe a limited amount, the two other roads
centering at this point might be induced to unite with you, or the
Government, in consideration of its great benefit to them, might be
induced to grant the necessary assistance.
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The nearest mill rolling rails at the present time, is at
Atlanta, Ga. To carry your old iron to that point and return the new
iron to your road, would cost about $30 per ton freight, and as you
would probably require 2,000 tons of different kinds of rolled iron
per annum, you would be taxed $60,000 for freight upon your old and
new iron. If Richmond, with her rolling mills did the work, the cost
would be $10 per ton or $20,000, all of which would be saved if the
mills were erected upon your line of road. The cost of a rolling mill
would probably be $150,000.
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Southern Express Company
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A resolution adopted at your last annual meeting required
an inquiry to be made "to ascertain ho are the President,
Directors and Stockholders of the Southern Express Company, and their
places of residence, and whether or not they are loyal citizens of the
Confederacy." This examination showed that the Company, as said
to be organized, was chartered by the State of Georgia; that its
officers and stockholders were living in the Confederacy, and that the
Company had the endorsement of the Secretary of the Treasury by a
contract into which they had entered with him for the transportation
of moneys, &c., of the Government. Feeling the necessity for some
such organization and the entire inability of the companies
themselves, at the present time, to perfect such an organization, the
contract with them has been continued. The amount received from them
for the year has been $33,797.29, and increase of $17,765.26 over the
previous year.
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Report of the Examining Committee
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The report of the Examining Committee will show that
deficiencies, in the accounts of different agents, amounting to
$748.39, have been discovered during the year. The whole is properly
secured and placed in course of settlement.
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Condition of the Road
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The machinery and rolling stock, equal in amount to that
of last year, is in excellent order -- as good as at any time during
the past two years. The road bed is in good condition. The supplies
for the coming year exceed in value those of last year $10,438.00, not
including 300 tons of rails purchased in New Orleans, and which we
hope eventually to get.
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Reports of the different officers, with their tabular
statements, are now in the hands of the printer and will be furnished
as soon as they can be printed and bound.
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Respectfully submitted,
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Ro. L. Owens, Pres.
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