Knoxville weekly chronicle. [volume] (Knoxville, Tenn.) 1870-1875, 1873-09-10

broad a policy with connecting Roads, and with
the improvements Of the country for the devel-
opment of business, yet, your Board of Direc-
tors have endeavored not TO err on the other
side, by turning deaf ear to the calls Of all en-
terprises looking to the welfare Of the country
and to an increase Of your business
In this connection we present for your consid-
Grafton and action, the Cleveland and Duck
town Railroad The Union consolidated Copper
Mining Company, are endeavoring TO secure
the construction of that line of Road, and offer
to pledge the Road for the payment of an issue
of bonds of not over twelve thousand and FIVE
hundred dollars per mile and further secure
their payment by the endorsement of the Cop
per Mining Company, which the proprietors
estimate to be worth largely over one million Of
dollars, while the whole issue of bonds will not
exceed FIVE hundred thousand dollars.
1t is proposed that your Company take of the
bonds at a fair market price, to the extent of
$4,000 to S3OO,OOO upon being satisfied that
the balance of the money to build and equip
the Road is provided 1t would hardly be con
venient for you to raise the money to purchase
the bonds as proposed, but with your endorse
ment, the bonds could probably be sold in the
market, and thus meet the necessities of the
case.
If it is your pleasure TO give TO the board Of
directors Discretionary power to act in the premN
ises, it is respectfully suggested that a resolu-
ton to that effect be adopted.
Your President and Vice President McGhee
visited Cincinnati last spring at the request of
Railroad, and from information obtained,
there is good reason to hope that communication
will be opened, via the Cincinnati Southern
and Knoxville and Ohio Roads, and via yonr
Road and the Morristown and Salisbury line,
between the Northwest and North and South
Carolina, the importance of which to the inter-
est of this company can hardly be over estima>
ted.
This will involve the necessity Of permanent
contracts for the interchange of business, be-
tween your company and other roads. 1t is
therefore respectfully suggested that q resolu-
ton be adopted, giving full power to the Board
of Directors, to enter into permanent'contracts
with other roads for the interchange of business,
such terms and conditions as may be deemed
best.
The physical condition of your road, and
equipment has been materially improved dur
ing the year; and as will be seen from the ac-
companying report of your Vice President'and
Superindent, 80 $40 miles of new fish bar iron,
has been laid on the track 20 miles have been
ballasted, mostly wit hbroken stone, and the bal
ance with gravel; 1851 crossties have been
laid in the track; 20 new coal cars have been
purchased; Y coal, and 6S box cars, and three
passenger coaches have been built using the
old trucks, and large repairs have been made
upon the balance of your passenger and freight
equipments, and upon you motive power. Your
road bed is in better condition than at any
former period.
All theexpenditures for the above mentioned
improvements and additions to your property
have been paid out of the years earnings, of
which expenditures, if your construction =
count had not been previously closed, at least
S125 10000 would properly be chsrgable to it,
thus showing your net income for the year to be
S574, 30 AZ instead of 449,2l0,42, as stated.
This very favorable statement of the improved
physical condition, and earning capacity of
your property, although quite gratifying in
itself, is not the only grounds for congratulate
ton.
At the close of the fiscal year. four years ago,
say the 30th of June 1863, the two Roads, since
merged by consolidation, into the East Tennes.
see Virginia and Georgia Railroad Company
owed as follows:
Funded debt, including bonds
or notes, given TO the United
States Covenant, 1850 0j6 O.
Floating debt, $40, 55351
Deduct cash and good
accounts and bills
receivable on hand $3.50, S24 80 S., 30 q
s5664, 785. so
Your total Indebtedness now outstanding, lisa
as follows:
Funded debt, including bonds
given to U. 5. Government in
settlement of former bonds or
notes, $4,l9l, 800 %
the Morristown and Rogersville
Roads, and the money loaned
in the purchase of securities in
the Western North Carolina
Road, and interest on same,
which will be returned when
these properties are sold, 1896 2e
S3,737,993 I.
Total reduction of debt in four
years, Sl,92G, 791 &C
Your Company is practically without any
floating debt as the money you have on hand
and the amount due you, fully equal all the
| floating debt you owe. 1t will thus appear tEa
your Indebtedness has been reduced within the
| past four years to the extent of sl,926,79l 60
and at very low estimate the value of YOU
| property has been increased during this period
| fully $4,000, making total gain of 81, 42G,
| 79l GO.
| OF this amount about 81 80 600 90 was mad