The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1868-04-02
s2,204,041.62

s2,204, OH 81
The amount of second mortgage bonds, originally
issued was 3Oo,OOO-of which s145OO1 were sol d;
the remaining s155,ooO were subsequently, pledged,
and deposited with three trustees as security for
corresponding amount Of preferred stocx, say S155
OO0 on which an interest the rate ofsper cent pei
annum was guaranteed. This preferred stock is then
virtually substitute for that amount OF second
mortgage bonds Of the outstanding interest (s1o3.
095l, about $780, 900 has been placed in temporary
shape satisfactory to the parties to whom it ia due
and with whom, 1t is hoped arrangements may ulti.
mately be made Tor its funding. The an.
nual interest for which the company is responsible
is s8s.6eO.
It is proper TINT your attention should be directed
to the early maturity of the company's bonds. A
portion Of the second mortgage bonds s14 5000, be-
comes payable on the 1st September, 1868. We are
under the impression that these be extended, by
the payment Of the interest usual to the 1st Sep.
tember, 1862 on which dae the first mortgage bonds
will also mature. The renewal of the entire debt
will then become necessary, bu. under what forms
and conditions 1t would be premature on this occa-
sion to discuss, action at that time will neces-
sarily be determined by circum stances of wh ch
cannot now judge. This point WILL therefore, BE- re-
served for your future consideration.
1t affords US pleasure 10 conf m to you, the gene
rally good condition Of the road-indeed we believe
there few in the South with which it will not fa-
vorably compare. Its machinery consists of TIVE I've
locomotives, all in fair ordeg-one Of thes, has been
recently rebuilt, and may be considered Few ma
chine; acd the others, though advanced in age and
service be kept in efacen. condition foc all
other year. at very moderate cost. We have sixty
seven box and fortythree platform clrs; eight pass
enger four sccondclass, three baggage and two mail
and express cars. No addition to this equipment
will be required the ensuing year, and expcndi-
lures in this department will bs confined simply to
keeping it up to its present sanaard. The shops Of
the company are still retained at Florence in the
temporary buildings erected there several years ago.
Although on limited scale, they will answer our
purposes, until the company's means shall permit
their enlargement and removal to the city The
depots station-houses, tanks, &C., will be found in
proper order.
But while the roal is thus physically competent to
meet every demand upon its facilities, the tact is
not to be disguised. that the necessity for them to
Our road you aware, is essentially local in its
character and dependent for its income upon com.
paratively limited section;it 1t has extended links
feeders to widen the field ofits operations and con-
sequently when from any causes the business of the
country thus tributary to It, ia unfavorably affected
severe reaction upon our revenues inevitably fol-
lows As all are familiar with the circumstances
which have brought about and are still contributing
to this result 1t would be needless to refer to them
or their probable duration.
So far as the probable results of the coming year
are concerned We apprehend that the losses Of the
past will deter many planters from repeating, and
others from extending their operations, and hence
the probability Of curtaiment rather than an in.
crease in the quantity Of cotton and upward Eights
TO be transported the ensuing season. We shall be
agreeably disappointed at finding it otherwise but it
seems to US that this is already foreshadowed in the
limited quantities of guuno ard other fertilizers now
being sent into The interior, compared with pre-
vious years. The prevailing difIlulty has been q
want Of capital; could this have been had at reason
able rates, the removal OF the late cotton, and
its recently enhanced value, might have encouraged
our planters to further experiments with the labor
by high raies Of interest," and the pledge Of urtics
outside of the crops to be grown, the recupcratlve
process must be SLOW and confined mainly to those
who can comply with these stringent conditions. In
this site Of things our policy is clear. We
must conform to what we cannot alter. We
should make every reasonable and proper
| concession 10 the Development Of the local
business of the road, BY low tariffs our necessi-
ties will permit, the encouragement OF immigration,
and, u shor., by every measure which would foster
enterprises and diversity the products qur!ng
our transportation. The opportunities for Its mp
plicaton, have so far been rarc but whenever ple-
sented we have sought to improve them. 1t is to be
regretted that our financial condition is not one to
warrant the application OF this policy to our tarifs
in its widest and mos. liberal sense. The latter are,
to great extent, controlled By competing routes,
and are so adjusted as to draw towards US all the
produce fI;rly within reach, still they ere and,
of necessity, must be somewh1t higher than on
longer and more favoraby situated roads with 4
much larger business. The common argument that
because we have them our facilities should be en-
poyed at less than their cost rather than lose
their immediate product, and the chances o. future
business is not without weight, but al intelligent
management will readily discriminate betw cen those
cases. when it can be judiciousy applied, and others
where it SIMPLY covers disposition to subordinate
the interests of the company to those OF the indi.
vidunl. AL know that any business conducted bare
ly at its cost or under competition only permitting
q minimum and uncertain profit, cannot md favora
bly,, unless its proportions are to be largely and
speedily sweed thereby. 1t would seem reasona
BILE then that while our tariffs are only producing ar
income equal to our requirements, and are yielding
no dividends to stockholders, thy should be gene
rally recognized and submitted to as unavoidable
necessity Our irst obligations are TO the ccmpany
ondhodcra and its tariffs should he so arranged a.
not TO jeopardlze the ability to meet them.
But while the income of the road may iuctua'
with the varying conditions OF the country-its ex
penses are, measurably, under our control. At NJ
period since its opening have we been in better po
sition .or their reduction, than at present The re
cent renewals of many Of the most costly portion
of the road-:ts generally good condition, and tn
fair order of its equipment. should render this prac
ticable for the ensuing year at least without mate
rally impairng the value Of the property, or tn
safety and regularity of our trains. A rigid econc
my has been introduced into every department O
the company's service and as our expenditures vii
be confined only to such work as is absolutely nee
essary, we hope to accomplish saving of twenty
FIVE per cent in tLis direction.