The western Democrat. [volume] (Charlotte, N.C.) 1852-1870, 1859-02-08
THE NORTH CAROLINA RAILROAD.


We have received copy of the Report of the
President and Directors of the North Carolina
Railroad, dated ,Tan'y 20, 1859. The Report is
addressed to Gov. Ellis, and purports to give an
exhibit of the history, condition and affairs OF the
Road from its beginning. Instead of preparing
synopsis of the Report ourselves extract as fol-
lows from very ineligible one published by the
Fayetteville Observer:
"The road, which is 223 miles long, cost to build
and stock it, S4907 ,9S2 44-equal to s22, OO8 80
per mile which considering that it is one of the
very best roads in the United States, with rolling
stock equal to any, and shops more extensive and
perfect than any, is certainly reasonable sum as
compared with other roads lii the country.
The work was commenced in the summer of
1851. The first train ran over the whole line III
February, 1856
dividuals 81 900, 600 The State afterwards made
further subscription of 81 900 900 of ''preferred
stock" on which the interest is to be paid before
any dividend is made on the other three millions.
The stock in the company therefore consists OF
400 900 shares, or 81, 100000.
But the road cost S907 ,9S2 A beyond this sum.
Whence was this excess derived? The State au-
thorized the issue of per cent bonds for $500 OOO
Ito meet which at maturity Sinking Fund Is
from interest premiums &c. In all S3oO, AZ 81
deducted from 1907 1892 A, leaves S527 ,239 81
to be raised, to which add S27 675 20 of unpaid
! subscriptions, makes aggregate OF So54,9O 81
| And now comes the fact which has both surprised
and cheered us, viz: that this large amount Of
more than half q million Of dollars has bee" pad
out of the net earnings Of the road True, the
Company has floating debt of SIT ,O43 ~, but
against this it has available means in cash. State
bonds, &C., of S21s,24 IS; showing an additional
sum of net earnings of S4l POS &c; and an aggre-
gate of net earnings of 1896, 10 Is.
These net earnings for the I'd years operations
of the road, Ito July 1860 were S122,09l 81; to
July 1857, sl62 1924 So; to July 1853, s185,2l2
o. and for six months to Jany 1859, Sll2 ,o44 9o.
Showing a regular and material increase every
year. The above figures show, that if there had
been no debt to pay off, the prohts Would nave
paid the State up to the 1st Jan, S2l0O0O on its
million of preferred stock, and in 1885, taco per
cent on the remaining three millions Of stock; in
1857, three per cent; in 1858, four per cent; and
in Jan'y 1859, a seni-annual dividend of nearly
three per cent From all which it is manifest that,
now that the debt is paid, dividends may be ex-
pectcd regularly Whilst individuals will proba-
blv receive 5 per cent, the State Sinking
Fund will receive from this road at least $4,000
a wear. sum amply sufficient, with its other re-
sources to meet the State debt it shall fall due.
Now when We reflect that the public has been
led to suppose that the road was not paying ex-
penses, that its stock was worthless, and that
body could tell the condition oft finances, we
think we may call upon the public to rejoice over
this exhibit, the accuracy of which, the Report
saws has been tested by the Officers and Directors
of the Company, and may be easily tested by any
one for the accounts are kept in plain and simple
manner, every department distinct.
The earnings of the road, from all sources, from
Sent. 1854 (when the first rum to Jan'y 1889
al years. have amounted to S1.13O, 262 So The
operating cost s596,OsO Is. This operating cost
was 70 per cent. of the earnings for the first few
months; then Az per cent; then 400; then 10
and for the last months A per cent; showing
that the road is operated at very considerably be
low the usual per cent of the earnings and we arc
inclined to think below the proportion on any
other road of which we have seen the results"