The New Orleans crescent. [volume] (New Orleans, La.) 1866-1869, 1868-12-13
COUPONS.

Il - )
| five add 10 his amount funded 1891 900. have
the aggregate amount paid adjusted, 81 472 100.
We find that The whole amount OF money paid
| up to the Both September last for coupons at
| tached 10 second mortgage, Is sl20,2o1. 50
| hat the court viii perceive That this amount OF
their funds had been appro priated to the payment
| of interest on second mortgage.
We ascertain from the directors that the COM
plsinaDt in this cause is the only person who re-
in.es TO accept these bonds Ia lieu OF the coupons
| which be holes under the first mortgage,....
LIABILITIES.
The liabilities of the corporation on the first OF
March last were as follows: First mortgage
| bonds, s2,74l 600; second mortgage bonds
81 ts5 COO; interest accrued, sl93 600 (; floating
| debt, 1858 52i total amount, 81, 702 524.
The question now presented for consideration is
Whist portion of these liabilities is now drawing
interest? Interest on bonded debt per anuum,
1921 532 50; interest Chckasaw fund. Sic. 600
making the aggregate amount of s337.532 so.
The bills payable amount, it is true, to the
sum Of sl46 SO, but none of them draw interest
except the sum of s33,76l Is. The interest on
these is computed at So 025 81 The interest on
these varies from five to eight per cent, and six
I per cent. has been assumed as the average; this
spproximates near enough for our present pur-
pose.
Iii assumed in this calculation that the &C.
| crued interest will be funded and become part OF
| the bonded debt. 1t is presumed that these bills
will be discharged, and hence we report that the
sum of 1887 ,532 50 will be necessary to meet the
| annual interest.
This calculation il will be perceived Is based
upon the assumption that the Chickasaw fund
| will remain permanent loan no arrangement OF
this character however has yet been made with
| the State Of Mississippi
There are sS76, 900 of these bonds, the interest
| on which is payable in London. and the exchange
varying from year to year must be considered.
For convenience we have prepared and herewith
| submit marked A, q tabular statement, showing
the liabilities of the company at the close OF each
| fiscal year from 3lst March, 1858, 10 29th Feb
rusry, 1865, emitting the period during the war,
say from 18th February, 1862, to 18th Feb
ruary, 1866.
EARNINGS.
The next question is as to the annual earnings
| of the road. ....
We have prepared tabular statement hereto
attached and marked B. showing the annual earn
ings, gross and net, increase and decrease, each
| year since the road was completed to Canton.
From this it will be that the net earnings for
the year ending March l. 1861, (the year immedi.
ately preceding the war; amounted to the sum of
$685.. 433 A. The net earnings for the year end.
ing on the LIST of March last were, $56S, 1885 SO.
This shows an increase in seven years of only
$33, 502 "a. II we take the gross earnings at these
different periods we have in 1861, l,2S2,62s 81
10 1865. 1881 402 05. so that the increase for
seven years is only, s9s,77S Al II we look at the
| financial condition of the company we find that at
these two periods, the debt Of 1861 was, s. $685.
$50 Al, and In the year 1865, 4,7O2,6S4 ii show
ipg Increase Of 81 ,036 .093 TO- Altogether the
gross earnings during the past year fell short of
the preceding year, stIIl the net earnings in
creased in the sum of s2l 655 50. The cause Of
this decrease in the gross earnings is TO be found
chiefly in the paralyzed condition of trade, conse-
quent upon the prevalence of the yellow fever in
this city during the summer and fall Of the past
year.
The gross earnings, since the organization of
the company up to The lst OF March last, sl0,
go 943 IS; road expenses, S., S07 800 Sc; net
| earnings, 81 $685. 53 OF. The la. gest amount
earned in single year is for the one ending LIST
March, 1867. 81 $50 100 49, The net earnings for
| some years 10 come can safely be estimated at
$3.50 zoo per annum. If, then, the debt is not
diminished or increased, the annual interest can
! be promptly paid, and leave a balance of $3l2,.
! 467. In this statement we proceed upon the as
| sumption that the State of Mississippi will not
press payment of the debt which ia nov past DUE
amounting with interest TO the sum of 1906 $50 SO.
We find nothing In the financial condition OF the
company TO Justify the charge that the corpora
| ton is upon the verge Of bankruptcy. Ii may
| not be able at an early day TO declare dividends
| upon its stock. but the earnings are amply sufh-
| Gent TO pay all expenses, discharge in due time
| the floating debt and place Ia the sinking fund
annually the necessary amount to redeem the
| bonds when they fall due at the expiration Of so
| years.
To accomplish this would require an annual de-
posit until the first bonds matured, of the sum of
about s223, 2S6 leaving still balance in the
treasury Of SS9,lsl, 10 be expended in the exten.
| sion of the road or distributed annually amongst
| the stockholders. This however, cannot be done
until the floating debt first extinguished, which,
exclusive Of that due to the State of Mississippi
| amounts to the sum Of 1916 ,S57 As.
Ii is due to the directors of the company to say
that they estimate the earnings of the road at a
much higher figure than we have placed them.
The road is now in fine order and with sufficient
| stock 10 meet all the demands of the public aud
we cannot well see how the charge, that their
finances are crippled, ;" can be sustained. If there
were any danger OF the company becoming nsol
| vent because of the bad management Of the Off
Al. ~. r Al.
board who were appointed by the State of Louis
lana and the city Of New Orleans, would sound the
| alarm and take the necessary legal steps TO pro.
tect the SO 600 900 OF stock which they represent
Since the war, several manufactures have been
established, and others in course of construc.
ton on the line of the road, which will add mach
10 the receipts OF the company. Ii passes through
some of the richest and most productive cotton
lands Of the South, and 1t cannot be doubted that
before many years elapse, large manufactures
will be established TO consume that staple.
When the road is extended by the way of
Aberdeen TO the Tennessee river, thus forming
connection with Memphis and Charleston, and
the Nashville and Selma roads, as originally de-
signed, the company will have one of the most
valuable roads In the South. Traversing as il
would. a country of immense fertility aud mex
heUstbe resources, il would bring new fields into
cultivation. increase the commerce of the South
and vastly augment the trade of this city. We
have 10 doubt that as soon as the political diff
ieulties which now parayZe every branch OF in
dUstry in this section, are settled, capitalists will
take bold of this great enterprise and see that it
is accomplished.
ASSETS.
1t would be somewhat difficult to ascertain the
present value of all the franchises ald property
now owned by the company, nor have we deemed
II very important. A careful investigation of the
finances satisfies us that they solvent and sn-
ply able TO meet all the demands against them.
We have examined, however. the real estate,
Except a lot at Aberdeen,) depots, machine
shops, rolling stock, ETC., and ascertaned from
the books the original cost, which we assume to
have been the actual value when purchased.
There is one remark. however which We desire
e. make; it is, that when embarrassed In their
uOubtedly was during the years extending feoun
1852 to lSG0, prudence would have dictated that
they should not purchase any more real estate
than was necessary to the proper working of the
road. We find that the corporation owns the fol.
lowing real estate:
At New Orleans, eighty acres, costing sll5,-
2A5 O5 I; at Canton thirty six and Jackson thirty
costing sl0,72l 80 /; at Aberdeen, iOrty.two aud
half acre. costing $27 ,96S &c several small lots
Tor stations ETC., were purchased, which cost
Sl29l; making 10 the aggregate the SUN Of
SIS6 225 80.
A.