Savannah morning news. [volume] (Savannah) 1868-1887, 1881-11-19
TOtaI Cor roads and bank. -. s8.7O7. .s9l IS

| Southwestern Railroad ..... 945,529 2S
Upson County RAILROAD. ........... 1895 Il
Total for roads and bank. ....., s.. .7O7, ,S91 IS
EXPENDITURES OF ALL KINDS.
| Central Railroad, Sa-
| vannah Division. .....$ 81, ,16S, ,272 90
Central Railroad, At
iaftai ianta Division R4i1aoad :n 47Sd5S 1S S
| Southwestern r R.. 643.1S9 IL
| Upson County R. r.. 1875 29-2, ,3l6, ,s96 81
Leaving neG..,... u, ,369, 494 81
| Compared with the previous year, the earn
| ings of the company have increased $517, ,401 SO,
! and the expenditures $6S5,S41 SO, showing
decrease in the net receipts of
| $14S,440 80. The country has been
| unusually prosperous for the past year, much
more so than can reasonably be expected to
continue. To this prosperity must be at
4 tributed largely, If not wholly, the increased
| earnings of our roads. Prosperity induces
| travel and transportation that otherwise
would not be indulged in and it is to this main
| ly that we should attribute the improvement
/ in the income of our property. The natural
| development of the country from which we
| draw our business is without doubt progress
| ing, but it cannot be expected to continue in
/ the same ratio that has marked the past year.
| The crops, as all know, are a large factor in
the business of a railroad, and these are de-
pendent upon the seasons and labor available
| for cultivation. The season just past has been
| unpropitious throughout most of the territory
| tributary to the line of our road, and labor is
now being diverted from cultivating the soil to
| the construction of competing lines for trans
| pOrtation-thus reducing the product of the
| soil and constructing lines of transportation in
! competition with those that are now more
| than capable of doing all the business that is
| offered While this is presented as a truthful
| statement of appearances at the present time,
| il is not to be regarded as depreciating the
| value of your stock, but as a caution against
| too sanguine expecfion for the furture of the
| company, which is dependent upon many con-
tingencies for its prosperity.
The large increase in expenditures is fully
accounted for by the General Superintendent
| in his report, to which special attention is re-
| specttully called. We have not only been called
| upon to increase the pay of all employees, but
| supplies of all kinds have advanced, and in
addition, we have been obliged to add largely
to our rolling stock, amounting to about $780,
| 900 over and above that supplied for the pre-
| viouS year We have also expended $205, o o for
rails, mostly steel, in excess of corresponding
expenditures for the previous year or for some
years past,
On the 9th of August Savannah and its vi
cinity was visited by a very severe storm, un-
roofing buildings and doing great damage to
wharves and shipping in port. The roof of our
| blacksmith shopwas so seriously damaged that
| it wilt REQUIRE renewal; considerable part of
the tin was blown from the roofs Of our car
penter shop and the up freight warehouse
| The track of the river road was washed of and
much OF the embankment carried away. A
part of the brick walls of the warehouse that
| is being built on the Vale Royal property was
| blown own aud about one-half OF the out
| ward bound shipping shed at the wharf was
demolished, and considerable damage to other
! roofs on the wharf. The damage to our prop
| erty has not yet been repaired, only to the ex-
tent of enabling us to carry on the operations
of the road, and at the present time the cost
cannot be accurately stated, but it will be con-
siderable, especially in view OF the present high
| price and scarcity of labor. Catastrophes Of
| this character, in addition to the very great
| risk attending the operations OF railroads and
| the rigid accountability TO which they are held
1 for all damage to persons or property, certain
| lY warrants accumulation of earnings over
| and above ordinary interest upon the invest
| ment.
The report Of the Ocean Steamship Company
Published as an appendiX-exhibits a verV
| gratifying result, and you are respectfully re-
| fsrred TO it for fun information respecting the
operations of that company.
| The Western Railroad Of Alabama-in which
we are jointly interested with the Georgia
| Railroad COmpany-has been reasonably pros
| porous, and we have received from it g., 900.
| Bonds OF that company amounting to 100000
| fell cue on the 1st of July last OF these $685.
| 600 have been paid by this company, and
| are held for future adjustment with the
| Georgia Railroad Company. There are yet
| outstanding S1,s03 0O0, bonds of the Western
| Railroad of Alabama. OF these, 1886 000 are
| due in 1888, and 81, ,167 600 in 1S9J. The Board
| have had under consideration the organization
| of the Western Railroad of Alabama as a com
pany, and then for it to issue bonds to reim-
burse our company for the payments that
have been made on account of it. This will re-
quire the cooperation Of the Georgia Railroad
| Company, which it is not doubted win be readi-
| ly obtained.
The partition of the branches Of the Western
| Railroad-which has been referred to for sew
eral years past-has now been so far accom-
| pliShed that the branch to Columbus is virtual
| ly in possession of this comp any The exact
details of this transfer have not been arranged,
but it was thought best to commence operating
it in connection with our system from the be-
ginning of the ensuing year.
The act OF the Legislature creating Railroad
Commission has not, up to the present time,
been modified, and it is not known whether the
present Legislature will make any change. The
views expressed in the last annual report re-
main unchanged in regard to this law. and if
the law is not changed by the present Legisla-
ture it is believed that time will demonstrate
the advisability OF a modification of it,
In view of the fact that dividends have
been withheld from the stockholders and
the money expended in constructing and
improving the property of the company,
the Board Of Directors during the past year
concluded that it would be ius5 to make a dis
tribution of debentures, or certificates Of In
debtednesS, among the stockholders, to COM
pensate somewhat for the interest which they
were fairly entitled to upon the original in
vestment. Acting upon this view it was de-
termined to issue debentures to the extent of
40 per cent. on the capital stock Of
this company, and under the terms of
the lease of the Southwestern Rail-
road, its stock was entitled to 32 per cent. To
persons not familiar with the past history of
this company it may appear that this operated
as a virtual watering of the stock, whereas in
point OF fact it has not been equal to the
amount due the stock, allowing only z. per
cent. per annum simple interest. This is de-
moustrated from records of the company and
is illustrated by an original subscription 10 the
stock made by the late George B. Cumming,
Esq. This stock has been credited with every
dividend from the inception OF the company,
and is equal to dividends of only about s clio
per cent per annum on the Investment, and
lacking 60 per cent. on the stock OF pay
81 m nj
on the amount subscribed. 1t is no answer to
say that these debentures have not reached the
original subscribers, and, therefore, the dis
trbutlon is unjust, for it might as well be said
that it would be unfair for the purchaser Of
any property to benefit from what ne pur-
chases Besides, it the present stockholders
are not entitled to these debentures, who arei
Certainly not the public, as they are enjoying,
at reasonable rate, property that has ac-
tually cost more to produce than is represented
by the capital stock and the Indebtedness OF
the company, including these debentures This
statement is made to correct the impression
that the stock has been watered, whereas in
point of fact It had been m ade stronger by the
accumulation of interest properly due to the
stockholders, but instead of being paid to them
has been expended upon the property of the
company
In consequence of the clause in the State
Constitution prohibiting this company from
owning any other railroad, we have been pre-
vented from fully protecting the interests of
our company and the commerce that should
naturally now 10 savannah. But BhlS to some
extent has been averted through the
friendly interposition of those In
terested IN the welfare of the
company and the commercial prosperity Of
the State. By the action Of these parties the
Georgia Railroad the Atlanta and West Point
Railroad and the Port Royal Railroad, have
been brought into harmonious action with our
company. =
As reference has been made to competss
lines now under construction, IL Ii properlhd
you should be informed as to their orieie an I .
location. The Legislature, in its za9ne sea. !
other competing line from Atlanta Aeon and !
when providing for the sale OF thecone the !
Brunswick Railroad, which haSonseoneRee !
property of the State Inc bonds Of
of its having endorsed that the uur- !
that company, stipulatsain time. buiid a. !
ehaaers should, within Macon and Atleata. !
other railroad betwea line appears. there !
Unnecessary as sgsdow of excuse for IL had !
might have been a. a route that would have 4
the act stipulatealities to a section OF the !
given railroad distant froE, Gny line nov CON !
state somey, Instead Of so guarding there )
structed fiction as to the route,and tie com :
was no .Sessing the charter have elected 10 !
panyd a the W at bank OF the Ocmulgee river
6ulparalleling the Atlanta division of YOUR ;
10 Wnaf 99.ssssant this will damage your pro- {
erty it is now difficult to determine, hdt IL is