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If the same profits are realized upon this as upon the
And it gives the total amount of the principal of the fund, from this source only, Which is exclusive of the 1 per cent. on the amount of the scrip, or $33,000 annually to be paid to the fund from the income of the road.
This sum of $364,265 09, is to be placed on annual interest as received and secured in the manner prescribed in the sinking fund act, and to accumulate until the scrip falls due. It is understood, that the amount already paid over to the commisioners of the sinking fund, being $115,528 29, has been readily loaned on the best security, at 6 per cent. interest, payable semi-annually. And no doubt is expressed by them, that the whole may be loaned at the same rate. As the fund is managed without charge we may then safely assume that for the whole time, the fund may be made to produce at least 51 per cent. annually.
The scrip is all payable 30 years from its date; and being dated and issued at different periols, it is found that to average the whole, it is equivalent to a scrip pf $3,300,000, falling due about April 1, 1869.
Upon the whole principle, the average time, at which the whole profits will be paid over to the fund and put on interest, will be about October 1, 1840.
The interest, therefore, should be computed on the whole $364,265 09 from October 1, 1840, to April 1, 1869, or 28 years. This at 5 per cent. annually will increase this item to
To this is to be added, the one per cent. on the amount of the
Giving the proceeds of the sinking fund, when the scrip
Which will over pay the princpal by
$3,547.911 67 247,911 67
As stated in last year's report, "this surplus may be applied to the expenses of remitting the money to England, when due, if, as is probable, exchange should then be against us. And if a larger amount should be wanted for that purpose, a portion of the income from the business of the road, may be set apart, annually, for a few years prior to the time when it may be wanted."
It is intended that the semi-annual interest falling due upon the scrip, shall be paid by the corporation from the accruing income of the road.And a net income from the business, of 6 per cent. on the cost of the road, will pay the 1 per cent, annually to the sinking fund-5 per cent. interest on the scrip, and give a dividend of 6 per cent. to the stockholders, on the amount advanced by them.
If as is now the fact, the fund is loaned at 6 per cent. instead of 5, it will produce, when the scrip falls due, the sum of Which will over-pay the principal by
$3,870,449 10 570,449 10
A surplus amply sufficient to meet unexpected losses, deficiency of in
'erest for short times, expenses of the fund, and cost of remitting the principle when due.
In view of these facts, and of the uninterrupted success which has attended all the financial operations of the corporation heretofore, the undersigned cannot omit the expression of their entire confidence, that the Commonwealth is perfectly secure for the whole amount of the loan of credit to the corporation, and that neither the State, or the stockholders, will ever be called upon to pay a single dollar of that loan.
Unless there is some fallacy in the foregoing calculations, which no one has, as yet, been able to detect-although they have, in effect, been before the public for two years past-the sinking fund will, of itself, be amply sufficient to meet the principal of the loan. The accruing interest upon it has been beretofore paid by the corporation, and there is no reason to doubt that it will be punctually met by them hereafter. If it is not, the Commonwealth, holding a mortgage of the entire road, and all the franchise and property of the corporation, have a right, by the terms of the grants, to take immediate possession of the whole, receive the income, and apply such part as may be necessary, to pay the interest;-or they may farm it out for the purpose, at their election. This they may always do, without re-paying to the private stockholders the $800,000 which they shall have paid in assessments towards the construction of the road.
Supposing the whole scrip to be necessary to finish the road, the mortgage is of a property costing four and a half millions of dollars, to secure a loan of $3,300,000, and a property too, which must produce an ample income, to be annually increased by the increasing business of the country. It cannot, therefore, by any reasonable man be doubted, that the Commonwealth have most abundant security for this loan of their credit to advance this great public enterprise. They have, in effect, only indorsed the paper of the corporation, or guaranteed their credit; taking, not only sufficient eventual security, but such as they may take into immediate possession on the first defalcation.
And, in order further to provide against loss, four of the nine directors. are annually chosen by the Legislature; thereby giving the State certain means of knowing the whole operations of the corporation, and of watching even the minutest expenditure of its funds.
But, superadded to all this, is the provision ofthe act of 1839, that the Commonwealth may at this moment, or at any future time, near or remote, purchase the whole road, with all its appurtenances, and all the property of the corporation, by paying therefor, the amount of capital paid in, and seven per cent. per annum interest, or profit thereon from the times of the payment of the same by the stockholders, deducting any dividends that may have been received-thus securing to the State the right to buy the road, virtually at cost, if it should prove profitable, and leaving it with the stockholders, subject to the mortgage, if it should not be so productive, as to tempt to its purchase.
It should be borne in mind also, that the enterprise was one too great for private capital; that no one subscribed to it for investment, merely, but in order to promote a great public improvement, and that it could not have been accomplished without this extended aid from the State.
It would seem, then, in view of all these consilerations, that no citizen of Massachusetts who values her prosperity, however fastidious he may be, can persuade himself, that former legislatures have been unwise in these grants, or indiscreet in the manner, in which they have been protected. The directors improve this opportunity, also, to express their conviction.
that the whole road to the western line of the State, will be finished, with all the equipments necessary to put it in order for use, by means of the funds already provided for the purpose.
The resources provided for the work, results,
1. From assessments on the stock,
2. Scrip of the State,
The cost of the part of the road completed east of the river,
Leaving applied and applicable west of the river,
Leaving a surplus of resources, above the estimates of And it can hardly be believed, that the actual cost will exceed the estimates by this amount.
As to the probable income of the road, there has as yet been no opportunity to test it. It cannot be fairly judged of, until the western part of it has been for at least one year opened for use. The part east of the river had been in operation for passengers three months, and for merchandise two months only on the 1st of January inst, the time to which the accounts are made up. And this was under the most discouraging and adverse circumstances. It embraced a season of the year, when even in prosperous times, few railroads in New England receive an income equal to their current expenses. The whole period was one of unusual depression with the business community; and when no one travelled except from necessity. The embarrassments attending the manufacturing and other active interest of the country were such, that all engaged in them have forborne to procure supplies beyond their immediate wants. The proper department having declined for the present to transfer the public mail to the cars, the stage-coaches having the advantage of the contracts have been running, on the same line of travel, in active competition with the road, and at fares much reduced. The winter thus far has been one of uncommon severity, attended by a succession of deep snows, now accumulated to an extent unknown for many years, and requiring heavy and repeated expenditures in clearing the track, and access to the road, both by passengers and for merchandise has been, from this cause, seriously interrupted. It may be added also, that the business upon the Connecticut river, from which much is expected hereafter, has been entirely closed for a great part of the time.
It will readily be seen, therefore, that the results in the short period during which the road has been opened, can afford no criterion by which to judge of its productiveness. The undersigned have never anticipated that, for the first six months of its operations, the income of the road would more than meet its expenses. But they are happy to find, by the statement of the account before given, that, under all the discouragements to which they have alluded, the road has more than" paid its way,”—the receipts having exceeded the expenses by about 22 per cent.
Upon the opening of the spring, and the revival of business from its present depression, the Directors anticipate a successful and constantly increasing business upon the road. The advantages of this means of communication are more and more felt in towns remote from the line; and new lateral roads are opening, and new lines of stages establishing, to accommodate the new courses of travel. The Hartford and New Haven railroad has but just commenced operations, thus presenting a continuous and more inland communication by steam, between Boston and New York. The produce and merchandise of the populous and flourishing towns in the valley of the Connecticut, for near 200 miles north of Springfield, have heretofore been transported, principally, by teams, to and from Boston, at a great expense. And it has been ascertained, that, at the distance of, at least, 50 miles north of Spring. field, about 50 per cent. of that expense may be saved by the river and railroad transportation united, and a corresponding advantage gained, in the more nothern towns. In order to attract public attention to this subject, and to procure and give information, an agent is now on a tour up the river, and it is believed, that a new and valuable business may be realized from this source the coming season.
But all these arrangements require time and long continued attention for their completion, and the results, so far as they may affect the income of the road, must not be looked for too hastily. In conclusion, the undersign. ed see no reason to doubt, that the early anticipations of the friends of this enterprise, will in time be fully realized; and they are encouraged to believe, that those friends will be stimulated to contiuued effort, until they shall see this great thoroughfare in successful operation, through the centre of the State, from the seaboard to its most western boundary.
Thomas B. Wales, Josiah Quincy, Jr., John Henshaw, George Bliss, Amasa Walker, Charles Hudson, John Howard, Directors.
SECOND ANNUAL REPORT OF THE WEST STOCKBRIDGE RAILROAD COR
To the Honorable the Legislature of the Commonwealth of Massachusetts: The directors of the West Stockbridge railroad corporation do make this their second annual report of their acts and doings, receipts and expendi tures, under their act of incorporation.
The length of the said road being only about two and three-fourth miles in length, it was originally contemplated by said corporation and by the Hudson and Berkshire railroad company, to unite said roads, and both companies passed resolutions to that effect, and leave was obtained of the legislature of the State of New York so to do and both corporations filed their respective petitions to the legislature of this Commonwealth at their last session, praying for this liberty, which petitions were not acted upon, in consequence of the right reserved to the Western railroad to buy the West Stockbridge railroad, but were continued to the present session.
With these views, the Hudson and Berkshire railroad corporation, (by James Miller, their president,) subscribed a large amount to the stock of the West Stockbridge railroad corporation, and put on the superstructure, and nearly completed the stone depot, at the eastern termination of said railroad, before the first report was made. Since making said report, said company have completed said stone depot, and have erected a stone engine house, and store house, and wood house, at said depot, and have been running their locomotives and cars over said West Stockbridge railroad, since making the first report under a lease, in which said company were obligated to pay an equal amount of the nett proceeds of both roads, proportionate to the cost of each road, by the first day of April next, the expiration
of said lease. By reason of this understanding, said West Stockbridge railroad corporation, have not been as particular, as they otherwise would, but have permitted said Hudson and Berkshire railroad corporation to put on said superstructure, and erect said buildings, and are unable to state the cost of the same, or the income of the road, as the account has not yet been rendered.
By a statement of the Treasurer now exhibited, it appears that the rents of the corporation, have been,
From stockholders and advances made by directors,
And the expenditures for land damages. grading the road, and building bridges, and incidental expenses, All which is respectfully submitted.
Daniel Spencer, Jr., Erastus Crocker, Thomas Cone, Martin Hendrix, Lyman Hinman, Sylvester Spencer,
Showing an increase the first quarter of this year over the corresponding quarter of last year, of $4,718 31, equal to 441 per cent.
Total receipts for fare for the year ending on the 1st of April, 1840, is one hundred and four thousand, five hundred and one dollars fifty-four cts.
ERIE CANAL TONNAGE-The tonnage moving on the Erie Canal during the year 1839, by a late report of the State officers, amounted to 845,167 tons. Of this quantity 282,244 tons came on to the canal west of Montezuma intermediate to Buffalo, and from beyond our own State. The Oswego Canal yielded 221,014 tons; the Cayuga and Seneca, 26.300; Chemung, 36,089; Crooked Lake, 26,823; Chenango, 16,928-all entering the Erie canal east of Montezuma.
The product of the forest, in lumber, timber, etc., floated on the Erie canal, amounted to 437,736 tuns. From agriculture, in breadstuffs, the tonnage was 124,683, being less than the average tonnage in these articles for the last six years. The forest is decreasing, while it is certain that agriculture, manufactures, and other articles will not supply the deficiency for a long period of time.
That the capacity of the Erie canal, in its present state, even with single locks, is adequate to the transportation of all the products of the forest, agriculture, etc., is proved from the report of the commissioners of the canal fund, in Assembly doc. No. 63. It is stated page 12, that the tonnage has decreased from 753,191 tons, coming to tide water in 1835, to 602,128 tons in 1839; a falling off of 151,062 tons. Further, the lockages, at the most crowded point (Alexander's lock, three miles east of Schenectady) has decreased during the last six years from 25.798 to 24,234-to 1564 lockages. It is stated that 242 lockages have taken place in one day, without full employment to the canals, viz. 177 lockages east, and 65 west. This would give at the same rate, for the last season of navigation, 51,186 lockages, instead of 24,234; in other words, it is a true indication of the capacity of the canal.
Under this view, is it not better to let the Erie canal rest for the