The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1869-02-05


enough to prove beyond dispute the economi-
cal character Of tho management Of the road.
The gross earnings being. 81, ,294 961 80
And operating expenses. ................ .697 447 40
Net earnings 1867. .613777 I6
Decrease in 1868. .s1e 2s2 Ct
This is an astonishing result when the diff
culties of tho road the increased business, the
decreased rates, and the active competition at
all important points are taken into considera-
tion.
EXPENDITURES.
In addition to the net earnings, $597, ,514 49,
there was received from sales OK old material
and reduction of stocks Of materials SIG, ,724 86,
making together $644. .239 35. out Of which was
paid for interest on dcbt damages and stock
killed $3.50 979 04, leaving balance Of $4O4,-
260 81 applicable to renewals and reduction of
Indebtedness. Out of this there was paid
Cost OF rails. .S52 91e 12
Cost of restoring motive power. 26, ,276 62
Cost of constructing first
and ono second-cass passen-
ger and thirty seven box, plat
form and stock ears. ......... SO, ,376 81
Cost OF one shifting engine.... $500 90
Cost OF land purchased. ........ 2766 66
settlement of Coz fe derate
claims. ....................... 47,863 45
In the aggregate s165, 500 %
Leaving balance Observation-Disclosures. Of. s2as, ,5e1 90
RAILS AND ROLLING STOCK.
Tho general expenditures for road purposes
have been for new rails and cars-$l15, 900 hav
ing been spent for that purpose. The stock of
good box cars is to DO made up to 800. The
following shows the amount Of car power:
Firstclnss passenger %
second-class passenger baggage, &C.. Is
BOX. ...................... .284
PlatfoIm. ....................... 70
Stock.... ................. ........................
IoSal.... .........................4 400
THE DEBT.
The board report that they had determined
to offer to the sterling bondholders of the COM
pany, in exchange for their present bonds, new
first mortgage bonds, bearing per cent. in
terest. Those bonds to be exchangeable at
the pleasure of the company, tor similar bonds
bearing z per cent interest in currency; the
bonds to be payable within twenty years, pay
ments to commence at tho end OF ten years,
and to be continued semi-annually until the
whole debt is paid. This met with the prompt
and cordial acceptance Of the bondholders OH
this side, and the Hon. Mr.. Furman was dis
patched to London for the purpose Of making
the exchange with the foreign holders. Mr.
Furman's progress has been delayed by techni-
cal difficulties, but the board have now but
little doubt that the negotiation will be sue
cessruIly completed.
REDUCTION OF DEBT.
Notwithstanding the large sums spont for
rails and the like, tho balance OF indebtedness
of the company shows reduction of s238, SOL
the net income aftor deducting the operating
expenses, cost Of renewals, &C., as already
shown. But this does not show the real
amount applicable TO the reduction OF the
company's debt; for many of the bonds and
other securities bought up and held by
the company, though they cost much less
than par, may bo counted at par in our
estimates Of the reduction OF debt.
Tho domestic bond debt has boen reduced
by retirement Of past due bonds. and
cash payments to tho extent OF $50, ,1e6 67, and
has been increased by issues OF new bonds for
retiring bonds and purchasing securities, and
by balance Of arrears of interest to the extent
OF 1922 829 81:
SO that the domes ic debt is now 49,. 81, ,595 296 O6
Against in 1867. Observation-Disclosures. 1492 632 %
Increase se........................ IS 92c63 IA
OF the investment fund, the following items
are particularly applicable to bonds payable:
Securities at their face. s211 900 90
Sc curitles at their market value. .... $1,000 90
1otA..... ............... .$278 600 90
The bills payable account in 1867 was. .ss17 1856 10
And is now. $4,000 60
Reduction. .$229 125 so
Add outstanding note for purchase OF se-
culihes which will form part Of as
sets. ........................ 27,355e 80
Total reduction Observation-Disclosures. 1886 48l 80
We may then sum up the amount ap,licablo
to tho reduction of the bond debt, and the az
ualreducsion or bills payable as follows:
Investment fund.-. ..............,.....S2 .S278, coo
Less increase In domestic debt. ...... % 6t8
sls5. .ss7
Reduction In bills payable. a56 ASI
TOTAL REDUCTION. .s4Al. .sl8
The true outstanding balance OF bills paya-
BILE Is S6O,704 ~, and consists OF obligations
given for purchases of rails and other sup
plies.
DIVIDENDS.
In regard to dividends, the report says:
The board are convinced that the true inter-
est OF tho stookho!der lies in the combined ap-
plication OF net earnings to the reduction OF
debt and improvements OF property, ell coming
back to them in theincreased strength thereby
acquired 70 meet the storms OF sompstitlon
and opposition, and the increased ability 60
obtained to extend accommodation and swell
the business OF the company. But they know
full well that the wants of the stockholders are
many and heavy. They sympathize with those
wants most heartily, and, therefore. regard it
an imperative duty to devote their most earn
est efforts TO the adjustment OF the past duo
debt. That accomplished. there would exist