NP, NOTP 4/10A/1861

From the New Orleans Times Picayune
 
April 10, 1861
 
The Jackson Railroad Report
   The annual report, laid before the stockholders of the New Orleans, Jackson & Great Northern Railroad Company, is published in extenso in this paper. It is full and minute, giving detailed statements of the condition of the company and of the operations of the road during the year ending the 28th of February last. From the great mass of figures, we have undertaken to condense, for the use of our readers, a distinct recapitulation of the principal topics of interest to the public. The road is one in which the city and State have largely investments, and which, in it immense commercial value and its wide connections with all parts of the country, affects the business and the prosperity of every resident in New Orleans. Whatever affects it, is therefore of universal interest.
   The road is a complete one 206 miles to Canton, where it connects with the Mississippi Central, and becomes the main trunk of railroad communications between the Southwest and all parts of the East and North.
   Beyond Canton its continuation northeastwardly through Mississippi to Aberdeen, is under construction, but no part is in use. All its earnings are on the road south of Canton, and the cost of operation is computed on the same rule. In the general estimate of the condition of the company, the expenditures include the cost of the extension, which is going on steadily, if slowly.
   On this completed part of the work the operations make a very favorable exhibit. The figures are for the year Feb. 29, 1860, to Feb. 28, 1861:
The gross earnings were $1,232,623.64
Cost of operation 677,189.70
     Net Surplus of earnings $555,433.94
   The sum, large as it is, does not express sufficiently the surplus of earnings over regular expenditures. There were extraordinary drawbacks on receipts during the year. Overflows in October and November last damaged the road severely, and suspended its business, and impaired its receipts. The expenses of repair are charged to the operation account, as are also various items of construction. These reduce by a large degree the actual surplus of receipts over the regular cost of working the road, and to that degree underrate the commercial growth of the road. If these items were carried to their proper account as costs of construction the net earnings of the operations of the road would largely exceed $600,000, and show a profit of more than 50 per cent. on the gross earnings. As stated in the report, the profits are still about 45 per cent. of the earnings.
   The increase over the preceding year cannot be precisely stated. The report to February, 1860, was only for the eleven months from March 31st, 1859. The gross receipts were $999,510.92; the gross expenditures $670,065.62. The receipts for twelve months exceed those for eleven months by $233,112.92. The increase of net earnings during the second period, over the first, was therefore $322,031.02. It is also to be noted that the business and travel have sensibly fallen off during the political troubles of the past winter. It is impossible to say how far this may affect future operations. Thus far they have not prevented the net earnings of the road from increasing nearly fifty per cent. over those of the preceding year.
   Taken in connection with the other fact that the expenses are much reduced, those of the past twelve months having exceeded those of the preceding eleven by only $7,124.08, the operations of the road are eminently satisfactory. The estimate for earnings during the ensuing year is put down in the report at $1,500,000, the expenditures at $600,000, leaving a surplus of $900,000, of which $340,000 are required for interest on bonds and sinking fund, leaving $540,000 for the floating debt, which constitutes the heavy load under which the finances of the company are staggering.
   The floating debt is the accumulation of old expenditures beyond the accruing means of the road. If it could be in any way capitalised and funded, the future of the road would be bright, and the way of administration easy.
   The amount of that mass of indebtedness is to be found stated in the annual report. The amount, in gross, of all the items, was, on the 29th February, 1860, $962,960.74. This includes all the bills Payable, ($617,766.41,) unsettled debts, ($158,659.59,) since ascertained liabilities for running contracts for locomotives and cars, ($140,712.49,) and current graduation accounts, $45,822.45.
   The same items now exhibit a balance of $935,717.04, showing a reduction of $27,243.90. The surplus of earnings during the year, ($555,433.94,) is accounted for as follows:
Interest on bonds paid $110,000.00  
Interest on loans and renewals 82,780.07 $192,780.07
Expense account and miscellaneous   42,209.12
    $235,079.19
Graduation, engineering, surveying $49,810.61  
Buildings, grounds, improvements 61,951.87 $111,702.48
Expended on road and outfit   $346,811.67
Assets -- Iron purchased $126,118.37  
Mail service to be collected 55,230.00 $181,348.37
Paid to redeem floating debt   27,243.96
Making whole net earnings of the road, as above   $555,489.04
   The net earnings of the road for the year have thus far been expended as follows:    
In paying interest, carrying loans, and in improving and extending the road   $346,841.67
Represented by assents   181,848.87
By reduction of floating debt   27,243.00
   In the general assets of the company the floating debt is largely represented by property on hand in new locomotives, cars, and iron not wanted for any of the purposes of the company.
   The whole debt of the company due and outstanding on the 29th February was as follows:
Bond debt $2,685,000.00
The floating debt as stated 985,717.04
Loans from the State of Mississippi 215,000.00
  $3,815,717.04
   It is thus apparent that the earnings of the rod have been able, if its floating debt could be reduced to a manageable shape, and funded, to support the road, carry the burden of its regular interest and sinking fund, and expend considerable sums on the extension. In the embarrassments which have beset all moneyed negotiations during the past year, the company have had a very arduous task, to get along with, and the responsibilities for the future are very heavy. Both the intrinsic value of the work and steady and growing productiveness, and the certainty that it is ample security for whatever it may need, to place it in a state of financial ease, are inducements, not to be overlooked, for patient and hopeful perseverance in the exertion to effect an object so much to be desired by every man who has either stake or interest in New Orleans or in Louisiana.
   For the opportunity of examination, with the details of the operations on the road, we shall wait for the tables, which are referred to in this report.

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