The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1870-02-09
1.-THE so U1H cARoLINA RAILROAD.
Report OF tho President and Directors
OF the Company.
OFFICE OF THE So. Ca. RAILROAD Co.,
ApLEsTON, S. c., January 10, 1870.

CHARLESTON, S. c., January ~, 1871.
To the Stockholders Of the South Carolina Rail
road Company:
GgNTLEMEN-The board of directors ask
leave to submit q report of the operations OF
the year jus. closed, and of the condition Of
the company on the 3lst ultimo.
The usual reports and statements from the
superintendent and auditor arc also submitted.
The results which are exhibited, the board
are confident, will excite amongst the stock
holders degree Of satisfaction quite equal to
their own. They could hardly have been an
ticipated in view Of the competitions and dif-
fculties which opposed us, and we confess
occasion us pride, qualification and even SUR
prise.
important transactions have marked the
progress Of the year just passed. IIle con,
tests with the Columbia and Augusta Railroad
Company eliminated and were finally disposed
of, with. it is hoped, the cmbiuercd feelings
and acrimonious and expensive litigation
which attended them.
The obligations Of the company to the bill
holders of the Southwestern Railroad Bank.
after years OF objection and dispute, have been
finally admitted, and except to small extent.
discharged, and the efforts Of the company's
negotaIor abroad for the settlement of their
sterling debt successfully concluded. These
measures have all exercised no inconsiderabe
influence upon those interests of the company
which are the subjects of this report, and have
had their full sharajg increasing and az agra
fairs Of an Institution so peculiarly circum-
stanced as this.
They will, in their proper places, lie more
particularly referred to hereafter.
The earnings of the year are stated to have
been from all sources $l,3S2, lG7. and are In
excess OF 1868, s87, ,29s ii. They also consider
ably exceed the earnings of any year since the
war-a fact full Of encouragement to the own
ers Of the property. New lines Of commune
cation have been opened between points here
tofore connected by our roaG. sharp competi-
tion excited, and, as necessary consequence,
lower rates Of frcghts and passage establish
ed. Again, it is easy to concede that every
new line OF communication has in some re-
spccts advantages not possessed by pre-exlst-
ing ones-in the direction OF less distance or
otherwise which do not fail in the end to as
sert their due influence. Thus it has happen
ed, for instance, that the completion of the
Columbia and Augusta Railroad, last summer,
whilst IL developed competition with us to al-
most all important points, naturally, and al
most without effort, appropriated that portion
Of our business which grew out OF the relations
of the business communications ut Columbia
and Augusta, and respective adjacent terrific
rics. Whist, therefore, the income Of the
year has had to contend against reduction OF
rates, made necessary by competition, as well
US diversion of some OF its business not to DC
retained by any effort of the board, hand
some increase Is still shown over previous
years.
A further cause of satisfaction Is found In the
nature of that increase. 1t is derived princi-
pally from frcghts moving TO the West, Begin
ming in great part at the great centres North,
and indicating by their rapidly increasing vol
unc, the maintenance OF this lines hold upon
the confidence Of the general public.
The operating expenses Of the year are SI34,-
425 So, and are 53 l3-l0O per cent OF earn
ings.
Whilst 1t might perhaps be sufficient to state
here that the management shows rather a less
ratio of expense TO earnings than Is usual upon
roads operated under similar circumstances,
and even more faYorably situated, 1t Is proper
to add thut, in the Judgment OF the board, there
is room, even here, for n more favorable cN-
hibit For though it is quite true that in many
items Of expenditure payments by TINS COM
pany are very much below those OF neigh0or-
fng roads, it Is not less true that The company
Is, in other respects. alOrdng service and ac-
commodation, not justified by compensating
equivalents. How much clamor, and the un-
ceasing eflorts6f the selfish have had to do
with this, it Is not of sufficient Importance to
inquire. The consideration Of the board will
be given at very early day to the subject.
The net earnings, from what has been
shown, stand rs sG47.74l AZ, and are 46 S7-l0O
per cent. of gross. In comparison with the
year 1868, there Is difference of $50, 22G 98 in
favor of this year. The character of this ac-
count has been matter of reference and eXpla-
nation so frequently, that there hardly appears
occasion to add u WORD more here. But before
proceeding fnrlher, the board pause to ask The
stockholders to contemplate the fact, which is
here exhibited, to wit, u balance after deduct
ing managing expenses of over s600,O or
ten per cent. upon their capital, and to con-
slider it In connection with the policy of the
present administration, which has constantly
and earnestly been directed to the reduction OF
Indebtedness. as constituting the truest and
surest foundation Of the stockholders prosper
ity.
The disposition Of this balance is accounted
for in Inc auditors statement, as follows:
Net earnings as stated. S647,T41 Al
Deduct interest. damages aud STOCK
Killed. NEUTRALITY-SUSPICIOUS.. ot0,plo io
Leaving net income of...............s s3Sl, ,S3l 81
Add thereto reduction OF previous bal.
ances Of stocks OF matcriaS...... 1897 3G
Payment under the contract with the
CITY Of Augusta nnd the Charlotte,
Columbia ard Augusta Raroad
Comnany 10000 90
Making. ....................Slao Slao.7IS 20