NP, NUA 2/15/1861

From the Nashville Union and American
 
February 15, 1861
 
Nashville & Chattanooga Railroad
   We are indebted to the Superintendent, E. W. Cole, Esq., for a copy of the "Thirteenth Annual Report of the Directors to the Stockholders of the Nashville & Chattanooga Railroad Company," from which we learn that, notwithstanding the failure of our crops and other disturbing causes, the earnings of the road during the past year have been more than sufficient to meet all the ordinary wants of the treasury after paying the stockholders six per cent on their stock. The gross earnings are as follows:
   
From Passage $ 346,463.05  
     "   Freight    347,217.97  
     "   Mail      30,999.96  
     "   Other sources        9,437.84  

Total

  $ 734,118.82
Deduct Ordinary Expenses      395,734.85
Leaving as Earnings over ordinary expenses   $ 337,284.16
   Out of which have been paid:    
Interest on Funded Debt $ 95,730.00  
Extraordinary Expenses, New Buildings, New Track, Ballast, Interest, Exchange, &c.      54,???.11 $150,622.75
Leaving as nett profit the sum of   $186,762.01
Out of which have been paid two semi-annual dividends of three per cent each, amounting to     123,443.36
Leaving a Surplus of   $ 63,318.65
   The Bond debt, and Stock of the Company, which together, may be taken as constituting is capital, may be stated as follows:
Capital stock $2,056,343.64  
Whole Bond Debt    1,813,???.??  
Less Cancelled by Sinking Fund       32,000.00 1,731,060.00
Entire Stock and Bond Debt of the Company   $3,787,534.64
Of the foregoing Capital Stock, the Company owes and now holds:    
State Bonds   $132,000.00
State endorsed Company Bonds       50,000.00
20 and one-half Shares Company Stock        15,?12.50
    $286,512.50
 
   The Vice President adds:
   To this might be added $150,000 of the Bonded debt which was contracted to pay for that amount of stock in the East Tennessee & Georgia Railroad Company, which our Company still owns; and upon which no dividend has yet been realized. The constantly increasing business and income of that Company under the energetic and judicious management of its present able executive officers, justify the expectation that in the course of the next year or two, we shall receive some direct cash returns for the heavy outlay, originally designed to secure to our road important business in freight and travel, which could not, in competition with other lines, be obtained without a direct railroad connection between Chattanooga and Cleveland.
   The Legislature appropriated $150,000 in State Bonds for the construction of new permanent work on that part of the road between Stevenson and Chattanooga, to be used in common by the Nashville & Chattanooga and the Memphis & Charleston Railroads, and of this work there has been executed an amount which has cost $141,987.44, on which the Company has drawn $140,000 in the State Bonds. Only $30,000 of these Bonds have been sold, the remainder having been paid for out of the treasury, the balance of the Bonds, $110,000, to be retained permanently, or used to meet any emergency that may arise in the affairs of the Company.
   In February last the corporation of Nashville placed in the hands of Jno. Porterfield, Esq., President of the Traders' Bank, for sale $525,100 of the stock of our Company, owned by the city, limited at the price of 40 cents on the dollar, and to remain at that offer for ten days only. This left no time to call the Stockholders together to receive their instructions on the important question of purchasing, on Company account, the whole, or a portion of the stock. The directory, believing it would be advisable to do so -- that it would be better to pay interest on the purchase money, than dividends on the stock, determined to purchase 8,000 shares, (being $200,000) of it and for this purpose contracted a loan for $80,000.
   This $200,000 of stock, with $8,131.25 more, which was taken on compromise with indebted Stockholders and forfeited for non-payment of calls, was sunk by order of the Board, thereby reducing the capital stock from $2,264,647.89 to $2,056,543.64.
   It is believed that after the treasury can be relieved from the burthens of construction, which will now soon terminate, the debt contracted on account of "Stock Purchase" and "Construction" may be rapidly sunk, and soon paid, out of surplus profits, after paying expenses and dividends. But until this can be accomplished it should be the policy of the Company to extend the debt, if it can be done at a fair rate of interest. The saving of dividends on $200,000, well justifying the payment of interest on $80,000 and the ownership of the Bonds, the payment of the interest on the balance.
   The McMinnville & Manchester road being dependent solely on local freight and travel for employment, has necessarily suffered heavily the past year from the causes which have so seriously affected the business of the main line.
   The accounts of its operations are kept separate and distinct from those of the main road, and for the last year may be stated as follows:
Total Receipts $ 21,132.22
Total Expenses    16,721.68
Leaving as nett earnings the sum of $ 10,410.54
   Which is an increase of expenses over the previous year of $2,371.72, and a decrease of nett earnings of $5,972.20.
   The increase in expenses may be attributed to the greater age of the road and consequent decay of timber in its structures, requiring some renovation, and re-adjustment.
   The masonry and grading of the Jasper Branch have been put under contract to reliable contractors, and considerable progress made in the prosecution of the work; many of the sections being finished or approaching completion. The graduation is about half done.
   The following is the condition of the Company as reported by the Treasurer:
  Liabilities  
Capital Stock   $2,056,563.64
   Funded debt, to wit:    
Company's Bonds endorsed by State $1,650,080.00  
Less amount paid to the State as a Sinking Fund, which have been cancelled and surrendered to the Company       22,000.00  
  1,568,000.00  
Company's Bonds unendorsed      23,000.00  
Bonds of the State of Tennessee    140,000.00 1,731,000.00
Equipment Account 17,510.00  
Suspense Account 1,064.75  
Profit and Loss 379,314.45 367,889.20
Bills Payable 245,430.33  
Due to individuals and agents 46,224.51  
Due to Connecting Roads 3,950.21  
Uncalled for Dividends 14,711.24 278,525.28
    4,464,2586.??
Assets
Road and Outfit per last Report $3,233,471.77  
Add amount paid during the year for permanent work and new buildings between Stevenson and Chattanooga        76,720.23    3,364,???.??
Slaves          7,230.54  
Real Estate exclusive of Depot grown as Stock in East Tennessee & Georgia Railroad Company 150,000.00  
Machine Shop Material 28,?91.50  
Bonds of the McM & MRR Co 10,000.00  
Balance due from McM&MRR Co 34,763.26 347,583.51
620 1/2 Shares of Nashville & Chattanooga Railroad Stock, cost 4,825.30  
Bills Receivable 31,123.81  
Due from Individuals 9,230.69  
Due from Agents 10,580.05  
Due from Connecting Roads 57,7?0.28  
50 of Company's Bonds endorsed 58,000.00  
132 of State of Tennessee Bonds 132,000.00  
Due from Banks 47,782.39 347,447.22
    $4,??4,258.12
 
{Printing was very poor; many numbers are guesses}

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