| 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. |
|