Loudon free press. (Loudon, Tenn.) 1852-1855, 1854-10-04
VA. & TENN. RAILROAD.
LYNoHBuKG, Aug. 9th 1854.

In the mortgage given to secure the 100000 OF
bonds issued by the Virginia and Tennessee
Railroad Company, thought it might be of in
terest to you to know the value of the security on
which those bonds are based
The..indebedtness of this Company, when their
work is completed will be 100000 due to the
State payable in 80 years with interest, payable
semiannually. at the rate of 8 per cent. per an
mum, and per cent of principal to be paid an
nuaIly. Second $500, O0O-issued to individuals,
with the same conditions except that they are to
be redeemed in 20 years, which, together with
the miliondue the State, is secured by first
mortgage on all the property and revenue ofthe
Company. Third 100000 of bonds secured by
a second mortgage. These sums will make a
total indebtedness of s2,OOO,0Oo
The whole cost of the road 2O4 miles in length
will oe $5,OOO,OO0 or say s25, 900 per mile when
completed and equipped with large supply Of
cars and locomotives.
Now ! propose to enquire simply what is the
certain reliance of the Company for sustaining
the credit of the securities which they have is
sued and are about to issue7 All interest is al
ready paid up to July LIST.
1t will be matter of surprise to some that a
road penetrating one of the richest countries in
the Union should have received so small a reve-
nue. in proportion to the number ofmiles in use.
1t is to be accounted for in this way: That the
country which is but just penetrated has hereto
fore been solely grazing region, and the cattle
are driven to market. There has yet been noto-
bacco or grain raised for market beyond point
so miles from Lynchburg and comparatively lit
tie except within much narrower limit But few
countries are better adapted to farming purpos-
es than that lying along this road and in Ten
nessee, beyond its terminus. In this respect the
pursuits of the people near this line are rapidly
changing, though the influence of the railroad
has been SO recently felt, At the beginning of
this year there were but 73 miles in use, and
there are now only l07 miles opened, the last
eight miles having been in use only one month.
work as it progresses would call attention to the
fact that the receipts of the first nine months of
our present fiscal year are equal to those of the
whole year previous. Let it be borne in m ind
also that for the first six months and half of
this nine there were only 73 miles ofroad in use
the same distance which was in use during the
best business season of the previous year. The
distance in use within a few weeks of the COM
mencement of the previous year was 60 miles,
which were increased to 73 in time for the fall
trade. This shows how much the business ofthe
road increases with its length and how rapidly
the pursuits of the country are changed and its
resources developed by the influence of the
road.
The receipts of the road for July we're $l5,-
075, and we are enabled to say with confidence
that the receipts OF August and September will
be $4,000 per month or more.
By the end of the present fiscal year, Oct.) ~
or within few days thereafter the road will be
opened to Wytheyille l35 miles from Lynch
burg.
This is the first point where the railroad will
have the benefit of any turnpike to feed it ex-
cept the single one leading in the same direc-
ton with the railroad. At Wytheville there are
seven other turnpikes radiating and leading in
to highly productive countries. Here too we
first meet the products of extensive workings in
iron and lead. These are not far from the line
ofou road and the lead and iron will be deliv-
cred on the road at Wytheville or 10 miles on
this side.
All these considerations would lead US to an
ticipate large accession of trade at Wytheville.
But do not propose to state the full extent of
what may reasonably be expected. My present
object is to make an estimate so reasonable as
to compel the faith of all, while it shall exhibit
an ample basis for the security of our bonds.
l will assume that the receipts of the road at
Wytheville will be an average of $4,000 per
month. The road will be open IL miles beyond
Wytheville by the close of this year, and will
progress rapidly, using each section as it is
completed, reaching the point where the branch
will come in from the Salts works by the lst of
June. The branch to the Salt works and Plas-
or Banks may be completed by the LIST of June.
l will assume that for the year ending Oct
lst 1856, the receipts of the road will average
$4,000 per month or 100000 independent of
the Salt and Plaster Those who are best &C
quainted with the demand for these articles
agree in considering the following as moder-
ate estimate of the revenue to be derived from
Salt and Plaster during the first year after
reaching the mines.
10000 Tons plaster through to Lynch
burg, at $3.50 per ton. $4,000
100000 bushels of salt through at IL
cents. $4,000
10000 Tons plaster along the line, at
$500. 10000
100, 600 bushels of salt along the line
at cts 5000
$4,000
Indeed most persons make much higher
estimate. This added to the sum before stated
is 1906, 900, and taking off one haffor expens-
es leaves $751;, 800, to pay interest on 81, 00O,-
600, with sinking fund of per cent, which is
$780, O0-leaving a clear profit, over and a
bove, of $47, 500.
Tt NAV therefore be safely relied on that the