The New Orleans crescent. [volume] (New Orleans, La.) 1866-1869, 1869-04-18


with nothing but their individual credit and earn
ing of the road 10 depend upon, and without 10.
ereasiDg the debt OF the corporation, entitle
them to the highest degree OF praise.
Having made these general remarks. we pro-
ceed 10 speak of the principal losses which have
Embarrassed the board and prevented them from
extending the road.
They expended on the road north of Canton
the sum of s6O7 1854 10. The grading aud brids
we're complete and ready for me rails. These
rails had been purchased and were ia New Or
leans. where some of them were stolen and others
seized and appropriated to the use Of the federal
government. The value of these rails was
sl99 $40.
"At the end Of the war they found in their
treasury Confederate money or obligations, which
were. OF course, entirely valueless to the amount
of 1888 COZ 50.
"ln consequence Of the destruction Of their
rolling stock, they were compelled to expend for
locomotives and cars alone, to replace them, the
sum of 1928 ,264 Al During the war they had
purchased five hundred bales OF cotton, which
were destroyed by the Confederates when they
we're driven out OF Canton. This cotton was Of
the value OF 500 O). The aggregate amount Of
these losses is ~ Us, quite sufficient TO eu
barrsss any company.
"The general superintendent Mr.. Williams, IL
pre-eminently qualified for the position which he
occupies, and the president and directors are la
boring earnestly for the permanent success of the
work.
"This Is q railroad 2O6 miles in length, and is the
principal link in the chain connecting New Or.
leans with the great cities Of the North and West,
and We are satisfied that the interest Of neither
bondhoiders nor stockholders would be promoted
by the appointment of a receiver. The present
directors and officers are practical men of high
character and standing, and well qualified to man
age the affairs of the corporation.
1.-The road ls now In fine order, and with suffi-
cient stock to meet all the demands OF the public
and we cannotwe see how the charge that theiI
finances are crippled" can be sustained. If there
were any danger OF the company becoming insol-
vent because OF the bad management OF the
officers, we have no doubt thatthe members Of the
board who were appointed by the State of
Louisiana and city of New Orleans would sound
the alarm, and take the necessary legal steps 10
protect the So 600 600 stock which they represent
"Snce the war several manufactures have been
established, and others are in Of construc-
ton on the line OF the road, which will add much
to the receipts OF the company. Itpasses through
some Of the richest and most productive cotton
lands Of the South. and 1t cannot be doubted that
before many years elspse large manufactures will
be established TO consume that staple.
ave are under many obligations TO the presi-
dent and directors for the facilities which they
afforded Us in dischsrging the duties imposed
upon us. 10 the course OF our examination into
the financial affairs Of the company, we were
compelled TO verify the correctness OF the an
nual reports, and obtained q great amount ,of In
formation not found ia them and to the able and
faithful secretary and treasurer, Hr. r. s. Charles
WHO uGb Dee1 lIe1NlSQ Win the rOa1 from lte
organization, we are especially indebted. The
company is certainly fortunate in having the books
ard papers kept IN the most excellent order.
As the speed and pro rates OF the railroads are
matters which exercise great influence on the
success or failure Of railroad companies, trust
will DO excused for nser ting in this report the fol
lowing extracts from reliable sources, which ex
plain very clearly those two important items in
Al go a. Al.
well informed late superintendent of the Chicago,
Burlington and Quincy Railroad, said lately very
correctly before q committee of the Illinois
Senate:
"A well established law of railroad economies
Is that speed Is the essence Of railroad expenses
This rule. generally stated, ia that the cost of
moving increases as the square of the velocity ,
Thus q speed of ten miles per hour would be co 1a
TO 100, twenty equei to 40e, forty equal TO 1900
This tremendous difference in the cost of moving
trains being as sixteen dollars 10 four dollars be-
tween On express train and the ordinary speed of
mail and accommodation trains, is entirely lost
sight OF in the principle of pro rata rates. The
exigencies of trade will require greater differences
10 speed as the business Of the country becomes
developed. 1t has been proven that coal road.
ION double track, so as to avoid delaying and
encanEeriug other rrsins, Dsvn little other bust
ness, and having to return its cars empty, and to
freight at very low rate per mile under a sharp
profit when II reduced its trains to seven miles per
hour, and not at higher speed. Ten miles per
hour is considered the greatest average speed Of
through freight trains.
"But certain things may be considered settled
in railway management. Among them mention
q few II Is fundamental thar every road must be
managed with view to its earnings, expenses
repairs and adequate remuneration for the capital
invested. This is necessary to all parties. All
thinking men concede that Improbable roads do
ant foa lin 90
of their patrons. 1. is the interest of all parties
that they should pay. Especially is it for the in.
terest Of the community directly resping the ad.
vantsges Of good, safe, well managed road; or
OF an unsafe, unreliable one for the transaction Of
their daily business. Hence 1t is seen that it is
for the interest of all concerned that every road
should do all the business it can procure from
which any profit can be realized, although the
rates may be far below the average rate charged.
IL is also well settled that IL is the duty ami the in.
terest OF every railroad TO foster and develop its
local business, By which mean the business aris-
ing on its line and not dvertible thereirom by
rival routes. From this local business it derives
its chief support and tot II must primarily look
for the income needful for its success. The
local interests of the people upon line cannot
be sDtsgonistic to the road so long as the
rates charged are just and proper. They most
are just and proper so long as they will
DO more than yield fair income upon the capital
deduction from the cost of leaning. IL has been
that II is unfair 10 charge rates for local
business higher for distances carried than for
through business. This is found TO be fallacy.
From the railroad the community receives all the
advantages derived from the difference between
railroad charges and the cost of teamiDg in all its
ocsl business, which we have seen ia the case of
the farmer living ten miles away from the market
saving, at q low estimate, oftwothirds It's cost.
Il is not wrong or unjust TO the farmer living ten
niles away from the market that the farmer living
0ne hundred miles away should have his traffic
lone at lower rate per mile, provided it Is not
lone at less than cost for just TO the extent of the
profit made on the hundred mile business is the
company able to carry the less mile business at
lower rate, and still act justly towards its stock
holders.
Another thing has been proven by experience
that the rates on all through and contingent
business, by which mean all of which the road is
liable to be deprived By competing lines, must be
like over all Tontes which would compete for il.
Of their length.
As no two OF these competing roads are the
anne length, the prices charged on any article of
reight between the two competing points must
'e at a different rate per mile upon each Of the
outes-less per mile on the longer and more per
nile on the shorter. Each road, therefore, will
et more per mile on some Of its traffic than its
ffrao arI Lace eln- 80