Toledo, Ann Arbor And Northern

Aun Akbok, Novjíiiuék lst, 1ST3. The Directora o f the Toledo, Ann Arbor and Northern Eail Eoad Oompany beg leave to submit to the Stoekholders tlie following Report : - Wlien, on the lOth day of December, 1870, the present Board of Directora entered upon the discharge of their duties, they found a stock subscription upon which five per cent. had been paid into the Treasury of one hundred thousand ($100,000) dollars. Four thousand four hundred and ninety ($4.490) dollars had been expended in preliminary surveys and expenses ; and ten dollars reaiained ia the treasury. There was also an outstanding indebtedness for audited claims of one thousand and forty-five 57-100 (1045 57) dollars, and an incurred indebtedness, not presented or audited amounting to two thousand and four hundred (32,400) dollars. There was a stock subscription, available for the construction of a road from Ann Arbor to the State Line, amounting to eighty-two thousand seven hundred (182,700) dollars. There were also agreements, of little or no legal valué, to furnish the right of way for most of the line, in consideraron oí' stock to be furnished. The Directors took immediate measures for the increase of their stock subscription and general resources. While this work was in progress they opened negotiations for the ultímate ironing and operating the road. Interviews were obtained with the officers of the different roads leading into Toledo, and with Trustees of the Toledo Fund (so called), looking to this object. Correspondence was also opened with parties in Europe for the negotiation of the Bonds of the road. An agreement was concluded of a very favorable character with the Trustees of the Toledo Fund for the use of a road-bed from the Pennsylvania Company's Depot, in Toledo, to the Michigan State line, with the right of occupancy of the Pennsylvania Company's Depot, bridge, machine-shops, &c. This agreement involved tho right of close business connections with any or all the roads leading into Toledo. The Directors were assured by responsible parties in Europe that having a road-bed prepared, our bonds could be negotiated for the ironing and equipment. The officers of the different roads, with whom the Directors consulted all gave them to understand that no difficulty need be apprehended in procuring iron and equipments as soon as a road-bed had been prepared from Ann Arbor to Toledo, graded, tied and bridged, upon which to base a negotiation. Two responsible Eailroad Companies assured the Directors that they would be prepared to enter into a contract to the effect whenever a proper guarantee could be furnished of this ability of the Directors to fulfill a contract. Much time was necessarily consumed in these negotiations and the completion of the subscription. The stockholders very naturally became restless and impatient under the delays. The Directors had, however, accepted a responsible trust, and having a consciencious duty to discharge, from the first had determined that no exterior pressure should induce them to expend money until there was a reasonable prospect of ultímate success. When on the 31st day of October, 1871, it appeared that there was an available subscription in stock, notes and right-of-way, amounting to two hundred and fifty-five thousand dollars, in all, sufficient for the completion of a road-bed from Ann Arbor to the city of Toledo, and was a reasonable certainty of the final completion and equipment of the road, the Directors levied the following assessments : - lat. Assessment levied Oct. 30, 1871, 110 per share, to be paid Nov. 30, 1871. 2d " " Mar. 13, 1872, " " " " " " April 1, 1872. 3d . May 1, " 4th. " " " " " " " " " " Juiie 1, " 5th. " " " ' " " " " July 1, " 6th. " " July 15, " " " " " " " Aug. 1, " 7th. " " " " " ' " " Sept 1, " 8th. " " " " " " " " " " Oct. 1, " 9th. " " " " ' " " " Nov. 1, " lOth. " " " " " " " " " " Dec. 1, " They also employed Mr. W. H. Fuller as their Chief Engineer, who proceeded to lócate the line. Immediately thereafter they issued proposals for the clearing and grading. Messrs. Crane & Thomson being the lowest bidders the contract for preparing the road-bed (ties excepted) was closed with them in March, 1872, and the work commenced the succeeding month. The contract with Messrs. Crane & Thomson provided that the work should progresa as rapidly as the means at the disposal of the Board would warrant. Under the supervisión of Mr. L. D. Burch, who had previously rendered valuable aid in procuring and perfecting stock subscriptions, collections were made as rapidly as the circumstances would warrant. With our nineteen hundred stock and note subscribers, the collections were necessarily slow ; and at times it became necessary to loan money on the individual responsibility of the Directors to meet engagements. The dimculty and delay in making collections has extended the work from April lst, 1872, to November lst, 1873. From Toledo to the State line the road-bed is substantially completed. Between Ann Arbor and the State line, thirty-four and 2-10th miles of grading have been completed. This embraces the heaviest portion of the work, the remaining six and 4-10th iniles bemg much less expensive than the average. Two-thirda of the bridging, culverts, cattle-guards and crossings have been completed. Thirty-four and one-half miles right-of-way has been secured. Seventy thousand ties have been obtained at an average cost of thirty-two cents. The Treasurer's account shows the following collections from Stock Subscriptions, as cash : - $145,216 93 Collections in notes on hand, .... 8,936 22 " Sale of oíd material, .... 130 00 Total, $154'283 15 Disbursed, 153,529 86 For detailed statement of receipts and disbursements, reference is made to Treasurer's report herewith annexed. Mr. Fuller' s, the Chief Engineer, estimates for the completion of the road-bed from Ann Arbor to the State line, is as i'ollows . - 6 1-10 miles Bight-of-way, - ... $10,000 00 6 4-10 " Xïrading, Clearing and Grubing, - - 10,000 00 Bridging, Cattle guarda and Culverts, - - - 8,590 00 30,000 Ties, 9,000 00 Bills not audited, --.... 1,000 00 Contingent Expenses, 3,000 00 Total, $41,590 00 The cost of the road-bed completed will be about twenty-two thousand dollars less than the Chief Engineer's original estimates The cost of the right-of-way has been largely iii exoess of esti mates, from causes entirely beyond the control of the Board. The following exhibit will show the liabilities and means available for the completion of the road : - Resources. - Unpaid Subscriptions, - 651,400 00 Notes due when Iron is laid, 38,000 00 Eeal Estáte in the city of A. A. 800 00 Weil Property Buildings, - 250 00 Wood, - ... 1J00 00 Notes on Subscription, as cash, 8,936 22 Cash in Bank, ... 400 36 Total Kesources, $101,486 58 Ltabilitm. - Grane & Thomson, - $12,500 00 First National Bank, - 2.000 00 W. H. Fuller, Engineer. - 800 00 Sundry bal's. on vouch'rs. unp'd, 1,151 16 Total Liabilities, $16,45116 $85,035 42 Estimates for Completion, ..... $41,590 00 $43.445 42 With the exception of the Treasurer, who has devoted the ;reater portion of valuable time to the services of the Board, the nly money paid to the other Directors for services, is one hunred and eighty-five ($185,) dollars ; and this sum is solely for fervices rendered while away from their homes in Ann Arbor nd in accordance with directions of the Board. It will be seen from the above, that the Board have ampie pro urces for the completion of the road-bed. Unfortunately for fcie final completion and equipment of the road, the expectations, bat we had every reason to believe would be fully realized' ■hen the grading was commenced, are not likely to be immedituly met. In consequence of the great financial crisis that has come upn the country in the past few months, the parties who gave the rah oAvm.L.""u xv "IE, .% 4nippmg tnw ruttu, are not at asent prepared to enter into any arrangement looking to this 1. It is needless for the Board to remind the Stockholders, it tho Eailroad interests of the country are utterly paralyzed d that the bost enterprises find no encouragement among capiists, either in this country or abroad. The alternativo thus ssents itself, either to wait a change of times, or raise the nesary means within ourselves by the issue of bonds upon whích ) present Stockholders can advance the money with a rëasona:degreeofcertainty that they will be remunerative. The Board ve proposals for the ironing of a narrow gauge road for one ndred thousand dollars. The equipment will cost an , sur of seventy-five thousand dollars. The annual interest on s bonded debt would be $17,500. Without going into any gthy argument as to the relative economy of operating a " narv" and broad gpuge road, a question that hns been so fully dissed by the press in the past three years, the Board are led to i opinión that the net profits of a narrow gauge road would be ficient to pay the interest on a bonded debt of $175,000. and ! ve a margin for a dividend to the stoakholder. Justiee to faithful and efficiënt employés (Iemand a worft of oommendation in behalf of Mr. Burch, Supt., the man of all wrk and no play, and Mr. Fuller, the Chief Engineer. Neither of these gentlemen have ever faltered in the discharge of duty, however arduous, or swerved frcrm the striet line of rectitude and honesty. By order of the Board. SILA8 H. DOUGLAS, Ajtn Arbob, Dec. 12th, 1873. President.