New Orleans daily crescent. [volume] ([New Orleans, La.]) 1851-1866, 1858-11-26

New Orleans, jackson and Great Northern Railroad
Company feeling it to be their duty to advise the
Council Of its present condition, prospects ana poiey,
llrespectfully submit the following report:
On the first of April, 1883 trial trip was sue
eessfulv performed from this city to Canton, Miss.
A few DAYS afterwards, daily train was established
from New Orleans to Canton, In reaching this
point the Company achieved great and decisive
success The importance Of the enterprise as origi-
nallY conceived, was no longer predetermined. Rea-
lions were at once established with other routes that
secured the certainty of travel and freight whose
value exceeded expectation. By the Mississippi
Central Road, speedy steam communication was
made with Cairo and all the western lines, while by
the Memphis and Charleston route eastwardy,
union was effected with tho Tennessee, Georgia and
East virginia Improvements Nearer the city, on
the East the Southern road promised access to ala
bama and the South Atlantic coasts and on the
West, established connections with the Mississippi
river, and with the NiGksburg and Shreveport line,
which stretches out ultimately to blend with the
Southern Pacific, across the continent. 1t thus be.
came the great trunk road of the country gathering
in contributions Of travel and traffic from innumera
BILE quarters,
Bit the first step in these results the most difficult
one to accomplish, was not made without creating
serious embatrassments, and seeming to leopard the
future progress of the great enterprise. When we
entered upon the discharge Of our new duties, the
affairs OF the Company were in critical condition,
The stock was offered at discount Of upwards OF
eighty per cent. Its creditors clam0red for payment
while the Company was without credit and could not
use Its actual resources without serious loss. dis
position existed among the people OF Louisiana to
contribute for further constructions and neither
the city nor the State could be called upon with any
hope of success for additional aid at that period
the debt of the Company, not including the bonded
debt, was $l,333,7 8l 20.
Scarcely had the new direction had time to survey
the prospect before them, when suit was commenced
by Messrs George Peabody & Co., for the sum due
them, in addition to which, suits had been previously
Instituted by Messrs. Dent, Hudson, Co., 4. G.,
Bates & CO.. and others, for sums amounting in the
aggregate, to upwards of two hundred Thousand dol
lars The difficulties which barIassed the Board,
were thus increased and the task of restoring credit
and advantageonsly using its resources was made
still more difficult. The predictions of failure ut
tered at the excited election for directors by those
who, in view of the embarrassnents of the Company
had become convinced the road must finally stop at
Canton, seemed to the public apprehension about to
be verified.
Assuming so responsible trust under such cir.
cumstances, the first duty that pressed upon the
Board was the speedy arrangement, on the most adj
yantageous terms possible, Of the debt that threat
ened the very existence Of the Company. Had not
the new Board, from the beginning, determined in
accordance with the views of the stockholders,
whose opinions they more especially represented to
disembarrass the Company OF its pressing debt and
restore if possible its lost vitality, its financial eond
ton here family described, would have suggested
this as the only prudent nay the only practicable
policy of safety and of progress. An agent the Hon
j. X. Elgee therefore sent to London to attempt
to arrange its foreign debt He succeeded in paying
the full amount due to MessTs Peabody Il Co., and TO
Measrs. John Henry Schroeder & Co, with aecumula-
tpns Of interest," protests and costs The settlement
made is perfect and final. The obligations of the
Company which they held have been cancelled by
the absolute sale to them of first mortgage bonds of
the Company, at seveuty,fYe cents in the dollar
principal and interest payable in New York inste9d
al London saving for the Company some ten per
cent. that would have been lost by exchange etc. il
they had been made payable in London.
Pending our agents negotiations in London, the
claim Of I. O. Bates Il Co. was settled in full by COM
promise, and after the settlement the Circuit Court
of the United States gave Judgment in favor of the
corporation in the suit of Dent, Hudson & Co., and
the Buard was relieved from the odium Of being cited
before the courts of the country as deliuquent in
meeting obligations, claims, etc. In regard to the
floating debt the directors determined an early day
toadopt a new policy. The practice had prevailed to
obtain loans to suit the necessities of the OCCASION
pledging bonds as collateral security. The practical
effect Of this course was to compound interest upon
the loans which in the large operations necessary to
meet pressing demands, proved serious drain and
constant loss The new policy has been to make
final sale OF the bonds instead of attempting to negO
tate short loans and with the proceeds Of these
sales to take up the floating debt rapidly as praet
cable The undersigned have reason to congratulate
the Council and the friends of the road upon the
success which has attended the efforts Of the Board
Little difficulty has been experienced in finding pur-
ehasers Of the bonds at favorable prices Most of
those sold have passed into the hands of our own c
zens showing degree OF confidence in the success
OF our great enterprise and of the policy adopted by
the Board that is truly gratifying When the under
signed entered upon the discharge Of their duties,
the debt Of the Company other than bonded debt,
(as per last annual report OF first April, 1859
was, ..,,.... 81 ,73l %
The obligations issued from that period
to the present time have been 800. 7l3,oOl 20
Making total Indebtedness ,O4G 1876 49
Paid since LIST April ............... ,Gl6,9ll rs
Balance running to maturity .......... 429,823 II
OF this sum the amount due to the State
OF Mississippi, not coming to matur
ity until 1864, can scarcely be called
floating debt, and is therefore de-
Quoted. ................,,..,.. 205,OOo 90
pany Observation-Disclosures. $2248 4
This amount composed of many small SUMS falls
due at different periods from this date up to August
following, and were it to the interest Of the Com
pany. it could All once be redeemed
Besides this floating debt, the Company has issued
two thousand four hundred and ninetysix first mort
gage bones, for one thousand dollars EACH at thirty
years from July ls 1856 bearing interest at the rate
Of eight per cent. per annum, payable semiannually
The undersigned cannot but pause here to contrast
the financial condition of the Company at the present
time with that Of april last Then it was, under
protest, sued for large amounts and without credit
NOW It's mathfed debts are all eXtinguished,i all
claims against it are paid on demand and it is able
to elect loans IT needed, on the most favorable terms
Then the confidence Of the public was destroyed and
even some Of its friends feared that the read would
be seized and sold Now it begins 10 be regarded as
sneeesslul enterprise, and to promise the fulflment
OF the hopes entertained by the original projectors
tefing manner.
The following is a comparative table of the freight
receipts for che corresponding months Of the years
1857 and 1893, and will give some indications Of the