| Annual Report of the Virginia &
Tennessee RR |
| as of July 1, 1863, |
| President's Report |
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| President's Report |
| Office of the Virginia & Tennessee
Railroad Company |
| Lynchburg, October 7th, 1863 |
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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 for the past fiscal year, ending June 30th, 1863:
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Operations of the Road
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From reports of the General
Superintendent, Auditor and Treasurer, with accompanying tables, the
following facts are shown:
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| The gross earnings of the road were |
$1,782,033.93 |
| The expenses of operating were |
722,486.26 |
| Nett earnings above operating expenses |
$1, 059,547.47 |
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The nett earnings are 59 44/100 per cent.,
and the expenses of operating 40 54/100 per cent. of the gross
earnings.
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The average receipts per mile run, has been $5.46, an
increase of $2.68, and the receipts per mile of road $8,346.13, an
increase of $3,422.40, over the preceding year.
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The total increase over the preceding year in the gross
earnings is $729,847.04, or an increase of 69 43/100 per cent., and
the increase of expenses $260,056.45, or 36 per cent.
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The number of passengers carried (including troops) is
311,974, an increase of 114,868; of the number carried, 130,768 were
troops, an increase of 27,049, and of other passengers there were
181,888, an increase of 87,819 of others than those transported for
the Government. The earnings from those transported for the Government
is $433,802, an increase of $120,560.64, and from other passengers
$511,006.76, an increase of $247,011.63. The total receipts from
passengers was $944,494.58, an increase of $367,572.17.
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The number of tons freight transported was 134,921, an
increase of 67,582; the number of tons transported one mile was
9,378,888, being 1,115,467 more than the previous year. The receipts
for freight were $717,813.43, being an increase of $314,213.60 over
the preceding year.
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In comparing the divisions or classes of the different
products transported, it will be seen that those of the forest have
increased 49,174 tons, of manufacture 18,923 tons, of agriculture 680
tons, of vegetables 3,728 tons, and of miscellaneous 6,290 tons, while
those of minerals have decreased 6,676 tons, and of merchandise 4,547
tons.
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Under the head of operating expenses are included repairs
of every description, salaries, taxes, insurance and all expenses
incurred in operating the road.
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The restrictions placed by the military authorities have
caused much difficulty in the transportation of supplies, each
department prohibiting the transportation beyond itself of all
supplies used in the subsistence of the army. A rigid observance of
this regulation would have caused much suffering among non-producers
in the towns and cities, and it is now relaxed only so far as that
private parties, purchasing for their own use, are allowed
transportation without liability to seizure; even to this extent the
restriction is a great annoyance, for, the consumer not knowing the
producer cannot afford the time and expense of visiting him and
purchasing so small an amount of supplies as his family may consume,
while those whose business it is to buy and retail these articles, and
who by their own extortion caused this regulation, are prohibited
transportation. The plan at present agreed upon between the officers
of the road and the military authorities is this: the officers of the
road being satisfied that the purchase is intended for the individual
use of the purchaser give permission to transport it, and the military
authorities allow it to pass without molestation.
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A reference to the sources of income will show that the
profits have been derived more from the large amount of business done,
than from the increased charges. The present freight tariff of this
road is the lowest in the State, and the price per mile for
transporting passengers nearly the same as in times of peace. These
rates were four cents per mile for all passengers, while the present
rates are six cents per mile for private individuals, and two cents
per mile for those transported by the Government in 1862, and three
cents for 1863; or, taking the different numbers and prices of each,
it makes an average not far from four cents per mile -- the same as
our old rates.
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There have been sometimes delays upon the road in the
shipment of private freights, but during the whole year there has been
no delay in transportation required by the Government, their freight
has always been promptly transported, and at no time has there been an
accumulation of it upon this road.
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The expenses of management afford no reliable data from
which to judge of the future operations of the road. Much old material
has been worked up and charged at old prices, while many other
expenses have not been incurred, because the materials could not be
had at any price. The good management of your Superintendent has kept
the roadway and machinery in better order than it has been for three
years past.
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Financial
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The receipts and disbursements as shown by
the reports of the Treasurer and Auditor, are as follows:
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| Cash balances in hands of Treasurer at the
commencement of the year |
$228,114.50 |
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| Confederate States bonds |
105,500.00 |
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| Cash in hands of other agents |
11,253.88 |
344,868.38 |
| Gross earnings of road |
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1,782,033.93 |
| Collections of individual and State stock |
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42,870.88 |
| Sales of unclaimed goods and baggage |
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6,987.11 |
| Interest and premium on Confederate States bonds |
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27,218.49 |
| Sales of telegraph stock (24 shares) |
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2,400.00 |
| Received from other roads |
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35,248.03 |
| Sale of old iron, &c. |
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28,078.76 |
| Collections from delinquent agents |
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3,102.81 |
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" other
railroads |
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26,868.35 |
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" individuals
and interest on same |
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98,674.68 |
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" bills
receivable |
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623.59 |
| Receipts from all sources |
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$2,398,975.01 |
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Disbursements
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| Operating expenses for the year |
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722,486.26 |
| Amt. paid State of Virginia on account of loan
of $1,000,000 |
$500,000.00 |
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| Amt. paid State on unpaid interest |
315,000.00 |
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| Amt. paid State on advance made in 1854 |
29,475.00 |
844,475,00 |
| New Engine |
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25,194.00 |
| Real estate |
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7,500.00 |
| Lost and damaged goods and baggage |
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5,374.98 |
| Debts due to individuals prior to June 30, 1862,
and interest |
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21,851.08 |
| Amount paid to other railroads |
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22,881.85 |
| Bills payable |
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2,587.54 |
| Law expenses |
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287.65 |
| New engine-houses and section buildings |
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2,403.50 |
| Purchase of teams for hauling wood |
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6,922.44 |
| Coupons on bonds and interest on preferred stock |
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96,021.00 |
| Plain bonds |
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3,098.75 |
| Land damages |
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2,525.00 |
| Cash Resources |
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| Debts due from individuals |
$12,279.37 |
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| Debts due from Confederate States |
168,498.41 |
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| Debts due from State of Virginia |
2,882.61 |
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| Bonds of Confederate States |
279,600.00 |
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| Cash in hands of Treasurer and other agents |
132,492.57 |
595,752.96 |
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$2,398,975.01 |
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In the above statement of resources, many charges which
have in previous reports been included as cash resources, are omitted,
as they were valueless; they have been placed to the account of
worthless debts, are only such claims as can at any time be collected,
are placed among cash resources.
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The policy of the Board has been to pay off the
indebtedness of the Company as fast as money was received, and all
that was due or could be anticipated, except that for current
expenses, has been paid, and a dividend of six per cent. declared,
payable on the 1st day of August amounting to $206,598, and reducing
the cash resources to $389,354.96.
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The debt for current expenses may be stated as follows:
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| Due by bills and notes outstanding |
$181.65 |
| Due by plain bonds |
1,513.24 |
| Due to contractors, officers, &c. |
5,480.82 |
| Due other roads |
43,244.79 |
| Due int. on preferred stock |
2,118.00 |
| Due individuals on open account, negro hire,
&c. |
67,561.14 |
| Due State for interest on $1,000,000, due 1st
July 1863 |
34,533.34 |
| Total debt for current expenses |
$154,632.98 |
| The funded debt is: |
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| First mortgage bonds |
$494,000.00 |
| Second mortgage bonds |
23,500.00 |
| Enlarged mortgage bonds |
998,000.00 |
| Third or income mortgage bonds |
319,500.00 |
| Salt Works mortgage bonds |
9,500.00 |
| State loan at seven per cent. (balance due) |
386,685.00 |
| Total funded debt |
$2,231,185.00 |
| Total debt for current expenses |
154,632.98 |
| Total funded and current expense debt |
$2,385,817.98 |
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Since the close of the fiscal year the whole amount due
the State of Virginia has been paid, so that the entire funded debt of
the Company, at the date of this report, is $1,844.00. The debt for
the current expenses must always remain large, as the expenses are
incurred daily and payments demanded only one in two or three months.
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The amount of stock on hand (provisions and supplies of
different kinks) is $313,391.00, being $197,073.00 in excess of the
previous year; this tock, much of which was purchased before the war,
is charged in the inventory at cost and not at what it could be sold.
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During the past year the whole of the defective masonry,
as well as that liable to damage from freshets has been rebuilt.
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Rolling Mill
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At your last annual meeting a resolution was passed
authorizing the Board of Directors to erect and put in operation a
rolling mill, provided the cost did not exceed $150,000; this amount
was deemed sufficient at the time the last annual report was
submitted. Agreeable to this resolution, your Directors purchased, at
a cost of $7,500, a piece of ground suitable for the purpose; before
any farther steps could be taken, iron, which at the time the estimate
was made, was worth $60 per ton, advanced to $200 per ton, and the
amount ($150,000) which you had authorized them to use for the purpose
was found to be entirely inadequate. Seeing it would cost twice the
sum they were authorized to use, they proceeded no farther. Since that
time a company of private gentlemen in this city has been formed, with
a cash capital of $500,000, and the work is now being pushed forward;
it is almost certain that before your next annual meeting this mill
will be in full operation and rerolling rails and other material
necessary for the road.
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Another resolution was passed at your last annual
meeting, appointing a Committee to examine and report upon the
suggestions in the President's report in reference to capitalizing the
additional cost over the original subscription paid in, so as to
constitute a capital of ---- shares; the Committee have never
reported, but a bill was prepared by your Board of Directors, and the
necessary legislation asked for. This bill was left last winter among
the unfinished business of the Legislature; it is now again before
them, with but little doubt of its success; it proposes to increase
the capital stock to double the present amount, and to nearly the
actual cost of the road. The reasons given in the last annual report
why it should be done, will apply now and it is needless to repeat
them.
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Report of the Examining Committee
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The report of this Committee shows the manner in which
the books are kept, and the system of checks upon the agents; it also
shows that there has been no deficiency upon the part of the agents
during the year.
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Salt Works Branch
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The report of the General Superintendent shows that there
was transported over this branch 82,867 tons, and that the receipts
were $104,956.74; in addition to this, it furnished freight to the
main stem to the amount of $191,128.23. The number of bushels of salt
transported was 927,080, of which 607,040 was transported eastwardly,
and 320,000 westwardly; the amount of salt in tons was 23,177, while
the wood and supplies necessary in making it, amounted to 60,622 tons;
of this amount 52,266 tons was wood, nearly twice the weight the whole
of the passengers and troops transported over the main stem during the
year, and of which, some idea may be given, by saying, if it was cut
into 4 feet lengths and placed 4 feet high, it would extend forty-two
miles in length; there has been great embarrassment in the management
of this branch, and many difficulties in meeting the requirements of
different parties. The Confederate Government demanded the shipment of
salt for the army; the State of Virginia demands it for that she
distributes among her citizens; other states have sent their engines
and cars to haul salt away, and private salt manufacturers have
purchased and hired engines and placed them upon the road at the
disposal of its officers, asking that their salt, and supplies in
making it, may be transported, all of which might have been easily
done, but for the difficulties as to the order of precedence, which
has given rise to much ill-feeling and complaint. If the State of
Virginia and the Confederate States would specify the amount of
transportation they require each day, and would use regularly the cars
when furnished, much of the embarrassment of your officers would be
avoided, and the machinery and rolling stock could be worked to much
better advantage. The attention of the Board of Public Works, and of a
Committee of the Legislature, charged with the investigation of all
matters connected with salt-making, has been called to this subject,
and it is to be hoped the plan of furnishing so much transportation
per diem will be adopted. Notwithstanding the complains of the
inability of the salt-makers to obtain transportation, an inventory
taken a few days since at Saltville, shows that there were only 50,000
bushels on hand on about 8 days work. The slat has been made and is
gone -- and except by railroad the transportation is limited to a few
wagons and a small section of country.
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Condition of the Road
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The machinery, increased during the year by one engine,
is in good order, and the road-bed in better condition than it has
been for three years; this is due to the energy and good management of
your Superintendent and the individual pride felt by each officer in
the success of the Company.
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Reports of the different officers, with the tabular
statements, are in the hands of the printers, 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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