Savannah morning news. [volume] (Savannah) 1868-1887, 1883-10-11

The roads included 5E name ID me above
table are those whose entire net earnings
.erru.- IL YOUR company. Those roads ln
which sou own only partial interest anu
each ~ which publish annual reports Z" thelF
own -t0ckh0lder7. are not included Jog name,
but the proceed. derived from them placed
under the head II earnings from the "banA
and Investment
m win IL -eeD from the above figure that
our earnings. from all sources. have been sui
frIcuf 10 meet Rxea charges ana pay TO our
stockholders 3 dividend OF per cent, ana YET
leave surplus u xi5.l74 -. While this Is
very small balance % De reserved from -
large a business. your board. in view Of the gOod
financial condition Of your company. ana the
excellent business 30 was enjoying at the time
81 the declaration Of the last divIdena- did not
deem it necessary 70 increase the surplus a. me
expense 81 a reduction Of the. stockholders IN
come. recognizing their claims u an the net
proceeds from their property that can D. pru-
IDENTIFY BE- paid. with due regard 70 the imam
clal safety 81 the company. Nhlle the legal
interest u the state b. ! per cent, and the re-
turns from most investments usually Jess.
dividend Of S per cent. may be looked upon a.
large and a. the tendency Of the law = to-
wards limitations Of profits on railroad prop
ertv. it becomes important that the source
from y hitch these profits arc draw D., should be
well understood
80 far from earning excessive profits. tne
contrary has been the case for those OF your
roads living within the limits ~ the state Of
Georgia. and under the jurisdiction Of IT.
railroad laws. have not been able 70 earn
legal interest upon their capital. Inc Ten
trial and south Western Railroads. mQYIng
much larger volume Of business than the year
cviOu-. yield only about ~ per cent. upon
their combined capital stock after paying
the interest upon their fixed obligations,
while those obligations and the capital
stock Of the two companies. taken to-
rether. 10 not make an amount greater
than would Ice required at the present
time 10 reproduce the property. Ii Is thus
with the two roads traycr-ing AMI reaching
the best business sections Of our state. Those
passing through territory thinly settled or less
developed. and dependent upon lighter
trpfiic. fall still further short Of remunerat-
in= their owners
By reference 10 the statements above given.
1t VIII be seen that the money used for paying
dividends upon your Georgia roads has been
chiefly derived from the profits on property
operated outside Of the state Of Georgia.
which has been produced by the ight
and -agacIty Of former management. IN
part by the application Of the earnings Of the
road during past years. % its purchase. and
in part by the productlveness Of the pur-
chased property.
That any system Of limitations Of profits Is
uu-0und IN policy and often oppressive TO
those against whom ID D. directed, rev VIII
question: and while IL may be hopeless TO eX-
pect, il certainly il not unreasonable 10 claim,
that each separate road should De dealt with
by the law upon its own merit. and permitted
every reasonable latitude to increase its
earnings commensurate with it usefulness
10 the public and its cost TO its owners.
BY reference to the report Of the General
Superintendent. and those submitted through
him. fun information may be obtained IN re-
gard 10 the condition Of the property and the
de tails Of it, operations during the year. and
10 these your attention Is respectfully invited.
As compared with last year, there has been
an increase in gross earnings Of the Central
and Southwestern Roads Of Sl16,J95, and a re-
ductiOn in expenses Of S10,21s. making an in
crease in the net receipts Of S2i7.z74 over the
results Of the previous year. The increase in
earnings is due chiefly to the increased volume
Of all Glasses Of business, consequent upon the
-
tory served by and contributing TO the support
Of our lines. notwithstanding the increased
volume Of business. some reduction in eX-
penses has been erected. ana, AT the same
time. the property has been maintained in its
usual good order, with a fair average Of i'm
prOvements and betterments.
The gross earnings Of the Columbus and
Western Railway have increased s. 90 ~
over the earnings of the year previous. and
the expenses have been reduced Sl4.Sl6 j..
making an increase in it, net receipts Of S2l.-
So o.. While this IS vet deficit OF $l,026 81
in meeting the interest upon IT. bonded debt,
il nevertheless exhibits a gratifying progress,
a IL masks steady annual improvement
since this company became Interested In the
road.
The Columbus branch Of the Western Rail-
way Of Alabama, which has been operated by
the Columbus and estern Railway since It,
purchase by the Central mas been formally
decided to that company, and Is now being
operated a. an integral part Of its road:
Comparing the operations Of the Mont
Of last year. the net earnings are shown to
have increased Sl7. 327 %. The gross earnings
have decreased 81 $40 03. and the expenses
S45Z72 -. This large reduction in expenses
is only by comparison with last year, IN which
heavy extraordinary OUTLAWS were required.
Compared with previous years the huctua-
tiOns are not great.
The Eufaula and CLAYTON Railroad. hereto
fore known a the Nicksburg and Brunswick
Railroad. was purchased by the late VIM. NJ
Wadley for your company az foreclosure sale.
February 8. 1879. to protect an investment Of
the southwestern Railroad. as stated IN the
forty-fOurth annual report OF the company.
page Z. The road has since been operated in
the name of the purchaser. but there appeared
sound reasons why it should be organized into
a Joint stock company, IN accordance with
the laws of Alabama, and this was according
Iv done in March last. Its capital stock was
fixed at $4,000 upon which IT j. believed,
from It's past earnings, u viii be able to pay
The business Of the Ocean Steamship Com
panv has been unusually prosperous, not only
earning enough to become the chief contribu-
tor to the fund from which was paid the dIyi-
dend to our stockholders. but to enable II 70
place to the credit Of its sinking fund account
SI00 On0 towards the ultimate liquidation Of It-
bonded debt. All the details Of IT. opera
tions will be found in the report Of tie own
Board Of Directors, published herewith az an
K stated in the last report Of this company
steps were then being taken to organize the
purchasers of the Western Railroad OF Ala
bama into "A corporate company. This was
contaminated in March last, and the company
incorporated in accordance with the laws Of
Alabama. under the corporate name OF 'Ihe
Western Railway Of Alabama The capital
stock has been fixed at $4,000 900, which, when
interest and all other expenses are included.
no more than represents the cost OF property
to the purchasers. Its earnings amounted to
S49l J76 "a. and its expenses $25S,SO IS. which
makes an increase IN ITS net earnings over
last year Of S2S,479.
The fiscal wear of the lessees Of the Georgia
Railroad closes on the 3lst day Of March The
report Of the lessees' board Of managers, pub
dnrin0 fine wear to have been S6l9.7l2 SO, or
sia7IS G9 in excess Of the rental. One hun