11C- t rr» I [DOC. No. XLIII.] 1 y _ ■ • COMMUNICATION FROM OF THE AMES RIVER AID I HA U « CALLED FOR BY RESOLUTION OF HOUSE OF DELEGATES. 1852-3. I [Doc. No. 43.] 3 OFFICE JAMES RIVER AND KANAWHA CO. December 30, 1852. Sir, In compliance with the request contained in the resolution of the house of delegates adopted on the 29th instant, I have the honor to make the following communication, responding to the several enquiries in the order in which they are propounded. 1. I transmit herewith a statement prepared by the secretary of the company, showing the precise amount of interest due on the company's debts, as specified, and payable on the 1st day of January and the first of July next. The several items constituting the indebtedness of the company will be found enumerated in a petition which I had the honor to submit to the general assembly under date of 16th day of January 1852, to which must be added a debt to the state of Virginia for a loan of one hundred and twenty thousand dollars under the act of June 5th, 1852. The statement distinguishes the amounts of interest payable into the treasury, on debts due to the state, on those debts the interest of which the state is bound to pay to bond or scrip-holders from the treasury, and on bonds of the company guaranteed by the state and payable by the terms of the bonds at the company's office to the bond-holders. 2. The company will have on hand on the 1st day of January next no money applicable to the payment of the annuity to the old James river company, or to the interest on the company's debts, which will fall due on that day. This con¬ dition of the company's affairs was anticipated and communicated in the 17th annual report to the stockholders, and was fully stated in the petition to the legis¬ lature already referred to. In regard to the interest which will fall due on the 1st day of July next, I am unable to do more than repeat what I have already stated in my official communications which are before the legislature, and express opinions on estimates of probable future income. The loan made by the act of June last was not sufficient to pay the amount of interest, and the deficiency was made up by the application of money intended for the construction of the Tide¬ water connection. The work on that part of the company's improvement has not been suspended, and the monthly estimates have been paid from the general income of the company. In view of the great importance of the work, and the fact that in an unfinished state it will be useless to the public and unproductive to the company, while if finished it would greatly facilitate trade, and produce, it is believed, an annual income of not less than fifty thousand dollars, in addition to the other revenues of the company, it is probable that the board of directors will continue to apply the general income of the company to the prosecution of this important work, unless it shall be the pleasure of the general assembly to direct otherwise. The ability of the company to meet the semi-annual interest and annuity due on the 1st day of July, will depend on the disposition made of this question. If it be the pleasure of the legislature to make the provision for the payment of interest to the amount of one hundred and eighty thousand dollars asked for, and to af¬ ford the aid for the completion of the Tidewater connection, for which a petition is now before that honorable body, I am still of opinion that the company will be 4 [Doc. No. 43.] able to complete that work in the year 1853, and to meet the interest and annuity due on the 1st day of January and on the 1st day of July next. My reasons for this opinion have already been fully stated in official papers now before the legisla¬ ture. As all such estimates must be conjectural, reliance on their accuracy de¬ pends on tho data on which they are predicated. The estimates submitted in my report to tho stockholders, of November 24th, 1851, were less favorable to the company than tho actual results of receipts and disbursements were found to be. On tho same data I made my estimate which was submitted in my report of the 25th October last, and I still believe that the results will be equally favorable. Tho actual receipts of the months of October and November of tolls on the ca¬ nal from Richmond to Buchanan are known, and enough is known of those of the current month of December to show that the receipts for the first quarter of tho current year will exceed those of the corresponding months of the last pre¬ ceding fiscal year by more than fourteen thousand dollars. In my estimate of the probable receipts of the current year, I calculated on a gross revenue from the company's works, &c. of $345,000, or an increase of thirty-eight thousand and sixteen dollars and seventy-six cents. If the ratio of increase established by the first quarter shall be maintained through the year, it will be perceived that the re¬ sults will be as satisfactory this year as they were the last. 3. The resources of the company applicable to the payment of the next July installments of interest and annuity mainly depend on the current receipts of the company from tolls and rents on its productive works. There are due to the com¬ pany debts which will, I believe, be ultimately paid, and form a part of its general income, but the period of payment I do not feel justified in anticipating with any degree of confidence. They consist of a balance of a judgment against the estate of Wm. B. Chittenden, dee'd, and a debt due to the company from Gen. James Hamilton. The nett aggregate of principal and interest will not fall short of $100,000. There is also due an arrearage of tolls on the Kanawha river, of which more than twenty thousand dollars may be expected in the course of this and the two next fiscal years. There are some lots and parcels of land, at different points along the line of the canal and the Tidewater connection, which have been purchased generally under the advice of the board of assessors, and to avoid expensive and litigated con¬ demnations. This property is not held for the general purposes of the company, but was paid for out of the appropriations for the specific works, in lieu of as¬ sessed damages, and will be sold when the works are so far completed as to make it judicious to sell, and the proceeds will be applied to the objects for which the money used in payment was appropriated. The value of these lands I cannot state with confidence, but suppose that the sales when made will probably exceed fifteen thousand dollars. 4. The resources of the company to be relied on are from its tolls, which now exceed $300,000 per annum, and I feel confident that these resources have not been under estimated, either for the present or the future. This opinion is based on the fact that the revenue of the company from this source amounted in the year 1842, when the canal was completed to Lynchburg to - 99,51-3 93 And in 1852, when completed to Buchanan, and the second divi¬ sion was in use for only a portion of the year, to - - 269,210 81 Showing an increase of $169,696 88 [Doc. No. 4-3.] 5 The documents are already before the house which show that this increase has been steadily progressive. I see no reason to doubt that the completion and sta¬ bility of its works will lead to diminished expenses; and the extension of its line, with new feeders, daily swelling the bulk of its freight, will largely increase the company's revenue. I have the honor to be, . Most respectfully, Your obedient servant, J. Y. MASON, Pres't J. R. fy K, Co. Oscar M. Crutchfield, Esq. Speaker of the House of Delegates. \ t [Doc. No. 43.] 7 * Office J. R. & K. Co. Richmond, Dec 29, 1852. Sir, The aggregate amount of interest, including the annuity debt, due and payable on the first days of January and July next, is as follows: Due and payable to the commonwealth: Annuity to the old James river company, - - 10,500 00 Interest on bond of March 25, 1842, - - 7,500 00 Feb 24,1845, - - - 8,059 36 " state stock under act of March 1,1847, - 37,080 00 Jan. 25, 1850, - 3,300 00 June 5, 1852, - 3,600 00 70,039 36 Due and payable on bonds guaranteed by the state: Interest on bonds issued under act of March 23, 1839, - 42,000 00 " „ 9, 1849, - 10,500 00 „ 12, 1849, - 4,500 00 „ 15, 1850, - 10,800 00 41 67,800 00 Total, - - $ 137,839 36 Yours, very respectfully, WM. P. MUNFORD, Secretary. To John Y. Mason, Esq.. Pres't J. R. Sf K. Co.