Western Reserve chronicle. [volume] (Warren, Ohio) 1855-1921, 1861-02-13

which, before that time were eagerly SougL
after by eastern and foreign capitalist
$ became almost drug on the market.
0 /. The Managers had relied with entir
confidence upon their ability to dispose
the securities of the Company to an amour
sufficient to enable them to 60 forward wit
the work to completion as far as Young
town, point from which they believed IL
road would command an amount of trait
: sufficient to sustain it
For the reasons stated. however, th
Managers were entirely mistaken; not OIL
dollar of the securities of the road could |
disposed of on other than ruinous terms UI
der these circumstances, they were compelle
; to either abandon the enterprise altogether
= or resort to that bane of all railroad con
panies-the creation of a floating debt
: Embarrassing as this resource is to road
of good credit, it was especially so to tn
Managers of this Company. for they coul
not upon the credit of the Company alone
raise one dollar in any market Fortu
nately, however, for the Stockholders, tn
then Board of Managers did not for mo
ment doubt the ultimate success of the en-
terpriSe. and. possessing high credit, the
promptly lent it to the COmpasy. to al
amount sufficient to finish the work t.
Youngstown, distance of sixty-sevel
miles
1t is true that had these Managers known
at the outset that the demands of the
Company upon their personal credit would
ever have reached the enormous sum o
$50 00O they would have chosen the al
tentative of abandoning the wolk alto,
gether.
Despite their efforts, however. the cost
of the work increased from month to month,
and year to year, from sl,5S3,63S, the
last revised estimate of the Chief Engineer.
to the sum of s2,628,742,7l, the actual
cost of the read with all its appendages.
Fortunately the expectations of the Man
ayers, as to the remunerative character of
the enterprise when finished to Youngs-
tewn, were fully realized; for, large as the
cost of construction proved to be, the net
receipts have proved sufficient to Justify
moderate dividends upon the stock.
The Report of the treasurer of the Com
pany. herewith submitted, gives the several
items of the cost, of the road, and also its
financial condition. You will regret to
see from this statement that VIC have yet
large floating debt resting upon us At
the date of their last Report, the Managers
expressed their hope that within the year
they would be able, from the sale of Third
Mortgage Bonds and the earnings of the
road, to entirely remove this debt. The
recent financial troubles have, to some ex-
tent, interfered with their contemplated
arrangements, and rendered further time
necessary.
You viii be glad to know, however
that the condition of the debt is such that
In no probable event can the Company be
embarrassed, or subjected to sacrifice, by
reason of it. It is mainly due to parties
deeply interested in the stock of the road,
and such arrangements have been made
that the debt can be carried during the
pleasure of the Managers at moderate rates
of interest. Of this debt. the former Man.
ayers are still individually liable for the
sum OF $50. .463, Sc, for which, you will be
glad to know, they are made abundantly
secure by pledgeo of Third Mortgage Bonds
and the net income of the road. The
future Managers of the road should not,
however, relax their efforts to entirely wipe
out the debt. They will have abundant
means in their power, so soon as the Third
Mortgage Bonds will command fair prices.
In the meantime, the net income, after
providing for the interest and sinking
fund of our bonded debt, should be ex-
devoted to it. Either source will,
in the opinion of the present Managers,
soon be found adequate for that purpose.
The condition of our bonded debt will
be shown by the Treasurer's Report to be:
First Mortgage Bonds Ss5HuO0
Second ................-. 4Gg 200
Third ............... 344 TN
Tetal-.-...-.-.--.---.... si6s3 3te
They all bear interest at seven per cent,
thus requiring for interest urOn our pre-
sent funded debt per annum. Sll6.43l: to
this add amount of sinking fund. $4,000;
making together the sum of SI3l.43l.
The Company has yet for sale its Third
Mortgage Bonds, S255, 800. Assuming
that these are all sold, then the total bond
ID debt of the Company will be SI,9l9,-
200, and will require for the payment of
interest and sinking fund sI49, ,344, leav-
ng all above that sum of the net earnings
to be carried to dividend account. The
Bonds yet on hand, if sold at the average
ate of all our sales of Bonds, (which is
.ighty-one per cent, with the net income
# the current year, will furnish an amount /
If money more than sufficient to retire the
ioating debt of the Company.
What the net earnings will be in the
uture can only be estimated from the past.
The road was opened to Warren, 50 miles,
n July; to Girard. 60 miles, in September;
md to Youngstown, 67 miles, in November,
1856. The net earnings since that time
lave been as follows 4
1857 1853 Is59 1860
iIs3.777 81 sl45.Oe4 81 Isa.sss, Sc ss3sy yOO3 4s
From the fact that the receipts are en-
irely from local traffic, and the further
act that the sources from which trade arises
re steadily increasing. the Managers feel
in expressing the opinion that
he receipts will steadily increase from year
o year for many years to come. {
The principal articles of freight are coal, {
re, limestone, iron, nails. glass, butter and
heese: statement of the quantities of J
ach of which carried during the past year :
vii be found in the Superintendent's Re J
'Ort. herewith presented A new item of
.raffc. which promises to be of great i'm
to the road, has been developed =
Turing the past year. About ten miles
Iorth from Warren, and also about ten I
niles east from Youngstown, Rock Oil has =
zen found to exist in large quantities.
Within the past four months more than 2
ne hundred wells have been sunk, worked
y steam engines, many of which are prov I
lg highly satisfactory to their owners +
hat this business is destined to become 9
ne of great Importance, there seems now
) ba little doubt- y