Doc. No. 18. 1858-'9.

Ordered to ~be Printed,.

Holden & Wilson, Printers to the State.

FOURTH ANNUAL REPORT OF THE WESTERN NORTH-CAROLINA RAILROAD COMPANY.

Morganton, August 26th, 1858.

The Stockholders of the "Western North-Carolina Railroad Company convened in general meeting in the Town of Morganton, N. C., this day at 11 o'clock—when on motion of R. C. Pearson, Esq., George F. Davidson, Esq., was appointed Chairman, and on motion, the meeting was further organized by the appointment of Samuel McD. Tate and M. L. McCorkle, Secretaries.

Whereupon E. J. Erwin, Esq., on behalf of the Committee on Proxies, reported, that 141 Stockholders holding 1138 shares of stock were represented by Proxies, and 69 Stockholders holding 3181 shares were personally in attendance, which report was received and adopted; and it appearing from said Report that the requisite number of Stockholders, holding a majority of the stock, subscribed by individuals, were present in person and by proxy, the Chairman declared the meeting duly organized and ready for the transaction of business.

Burges S. Gaither, Esq., presented credentials authorizing and empowering him to act as the proxy and representative of the State of North-Carolina, which were duly received, and he was allowed to take his seat in the meeting accordingly.

The Report of the President on behalf of the Board of Directors, as also the Reports of the Chief Engineer and Committee of Finance, were then severally submitted and read, and on motion laid upon the table.

On motion of M. L. McCorkle, the meeting proceeded to ballot for four Directors.

The Chair appointed D. A. Davis and E. J. Erwin, Esqrs., to take the vote, who, upon performance of that duty reported, that John I. Shaver, of Rowan, Otho Gillespie, of Iredell, Jonas Cline, of Catawba, and John 0. McDowell, of Burke, had received each a majority of the votes cast, and were therefore duly elected Directors on the part of the individual Stockholders for the ensuing year, which report was concurred in.

On motion, the meeting then took a recess until 2 o'clock, P. M.

2 o'clock, P. M.

The Meeting was called to order by the Chair.

On motion of Charles F. Fisher, Esq., the Reports of the President. Chief Engineer, and Committee of Finance were taken up and considered, and after debate, were severally received and adopted.

Tod R. Caldwell, Esq., offered the following resolutions, to wit:

Resolved, That the Committee of Finance for the ensuing fiscal year be required to furnish to the Stockholders, at the next annual meeting, a report or statement showing how and for what the funds belonging to the Western North-Carolina Railroad Company have been expended, and that in their said report or statement they set forth each item of expense, to whom due, by whom contracted, and how paid, and that said report extend back to the beginning of the first fiscal year.

Resolved further, That said Committee, after they shall have completed said report, shall cause a sufficient number of copies of the same to be published so as to furnish each individual Stockholder with a copy thereof on the first day of the next general Meeting of the Stockholders, and that the Treasurer of the Company be authorized to defray the expense thereof.

D. A. Davis, Esq., moved to amend the first resolution by striking out all after the words " how paid." After debate, and before a vote was had upon the amendment, the resolutions together with said amendment, were, on motion of W. W. Avery, Esq., laid upon the table.

It was then Ordered, That Milus F. Freeland, A. W. Jameison and Charles A. Carlton, be appointed a Committee of Finance to examine into the Finances of the Company, and the accounts of the Treasurer, and make report at the next annual meeting of the Stockholders.

It was also Ordered, That D. A. Davis, N. N. Fleming and J. E. Kerr, be appointed a Committee on Proxies to serve at the next annual meeting.

On motion of Charles F. Fisher, Esq., it was

Resolved, That the salary of the Secretary and Treasurer be increased to twelve hundred and fifty dollars.

On motion of "W. W. A very, Esq., it was

Resolved, That six hundred copies of the proceedings of this meeting, together with the Reports of the Officers, be printed in pamphlet form for the use of the members of this Company.

The following resolutions were then offered by John A. Dickson, Esq., and unanimously adopted, to wit:

Resolved, That the thanks of this Meeting are due, and are hereby tendered to George F. Davidson, Esq., for the dignity, ability and impartiality with which he has presided over the deliberations of this meeting.

Resolved, That the thanks of this meeting arc likewise tendered to Samuel McD. Tate and M. L. McCorkle, for the efficient services rendered by them as Secretaries.

On motion of Wm. F. McKesson, Esq., the meeting now adjourned to meet in the town of Salisbury, on the last Thursday in August, A. D., 1859.

G. F. DAVIDSON, Chairman.

S. McD. Tate

M. L. McCorkle,

Secretaries

PRESIDENTS REPORT.

Office western N. C. railroad Co.,

Morganton, August 25th, 1858.

To the Stockholders of the Western

North-Carolina Railroad Company :

I have the honor to submit the Third Annual Report of the progress of the Road and the financial condition of the Company at the close of the fiscal year, ending 1st July, 1858 :

Bal. in the Treasury 1st July, 185T,.......... $ 92,315 40

Ain't rec'd from individual stockholders, on acpt.

their subscription,....................... 128,528 27

Am't rec'd from the State of North-Carolina on

acpt. State's subscription to 1st section,..... 250,000 00

Interest on Bonds and prem. for Exch'ge rec'd, 2,222 51

Amount in the hands General Commissioners, 957 50

$ 474,023 68

Am't disbursed from 1st July, 1857, to 1st July 1858, for Iron, construction, and all other expenses attending the work,............... 442,505 17

Leaving in the Treasury 1st July, 1858, ...... $31,518 51

The disbursements amounting to the sum of $442,505 17, comprise the entire outlay during the year for the general construction of the Road, the cost of iron, chairs, spikes, and all other expenditures incident to the prosecution of the work. The various items which make up the aggregate disbursed, are so fully set forth in the accompanying Report of the Treasurer, as also in the Report of the Committee of Finance, who

have had access to all the books and vouchers on file in the office, that it is considered unnecessary to go further into detail, but refer to those Reports for additional particulars.

The remaining installments due from individual stockholders upon stock subscribed for building the first section of the Road under the original charter, have been called for, and a spirit of promptness and punctuality as commendable as could be expected under the circumstances, has been manifested by them in meeting these demands.

For satisfactory reasons assigned in my last Annual Report, that part of the first section of the Road under the original charter, extending from the River to a point near "Hale's," was not let to contractors until the 4th June, 1857. These contracts, like those which preceded them, were taken by stockholders or by persons representing stock, and the installments due on stock thus bid upon, are being paid in labor. Great energy and dispatch have been exhibited by the contractors on this part of the line, in progressing with the work, and from present indications the installments due on the stock they represent, will be paid in ample time to meet the demands of the Company, whilst no delay in the track-laying need be apprehended on account of the late period when they commenced operations.

The Grading and Masonry on the line from Salisbury to Statesville, has been completed, and the necessary number of sills, superior in quality, delivered along the line for the same distance. A large force is now employed by the several contractors between Statesville and the River, and the progress of the Grading and Masonry will be such, we hope, as not to retard the laying down of the superstructure. A sufficient quantity of Iron was purchased as stated in our last Annual Report, to lay the track as far as Statesville, and the same has been received and is now being laid. The Board, acting under the advice of the Chief Engineer, determined to have the track laid to Statesville by contract, as being the cheapest and most expeditious mode of consummating that part of the work. A contract to that effect was accordingly made with Charles F. Fisher, Esq., and as soon as the difficulties attend-

ing the completion of some of the contracts for Grading were overcome, after the spring opened the track-laying began under the immediate supervision of our Engineers, and has progressed rapidly ever since. The track is now laid to a point within ----- miles of Statesville, and the cars will run through to that place within a few weeks, probably by the -----

As soon as that point is reached, arrangements will be made to accommodate the public by transporting passengers and freight. Upon the completion of the Road to Statesville, it is likewise the intention of the Board to propose to contract with the Postmaster General for the transportation of the United States Mail, daily, between Salisbury and Statesville, and by thus extending to the public without delay, all the facilities which railway communications afford, stimulate" the speedy completion of the Road to the next station. The Steam Engine, as it penetrates a country upon its iron track, becomes itself the most potent of all arguments for its continued and rapid advance; even the hardest fisted tax-payer, who had shuddered at the recital of its cost, whilst unseen, releases his hold upon his pocket when he beholds its down train laden with his products, and revels upon the thoughts of the rich return which its up train will make to his coffers; and just as we bring nearer home to every man on the line this practical argument, will the fear of Railroad taxes vanish into thin air, and each recipient of the benefits which Railways confer become a willing and active agent in pressing our great work on to completion.

The Board take pleasure in announcing the gratifying fact that the private or individual Stock required for building the Road from a point near "Hales" to Morgan ton, as authorized under our amended charter, has been subscribed and the five per. cent, thereon paid, and the Board of Internal Improvement notified thereof by proper certificates forwarded to His Excellency, the Governor, Chairman of said Board, to the end that double that sum should be subscribed on behalf of the State as provided in our charter ; the estimated cost of the 2d division extending from the end of the 1st division near Hales Store to Morganton, was $658,182, and the amount of Stock

directed by the Board to be subscribed by individuals or counties, and for which Books were opened was $220,000, as that sum was recommended as one third the estimated cost in round numbers by our Chief Engineer ; of this sum the county of Burke subscribed for 500 shares of $100 each, making $50,000, and Charles F. Fisher, Esq., agreed to take, and did take the remainder (1700 shares) equal to $170,000. The Board have contracted for the entire completion of this second division at the original estimates of the Engineer; the contract was taken by Charles F. Fisher, Esq., who is required to complete it by the 1st day of January, 1861. He has already commenced operations, and the Board have every confidence in his willingness and ability to comply fully with his contract, and entertain the opinion that but little if any delay will occur in the continued and steady progress of the Road to Morganton, except in the winter months, when it is the part of wisdom and economy to desist from laying track, unless forced by pressing necessity to do so.

It is proper here to state that, since the subscription of $50,000 was made by the County of Burke, some of her citizens have impeached the validity of that subscription, upon the ground that some of the proceedings of the Magistrates and people of the County whereby the County claimed authority to subscribe to the Capital Stock of our Company, were informal and illegal, and have taken legal steps within a few days to test the validity of the subscription. Before the subscription was made by the County of Burke, and accepted by the Board, proper enquiries were instituted, and legal advice taken touching the authority of that County to make the subscription, and the uniform testimony borne on the subject, as also the uniform legal opinion given, were to the effect that the County had the authority to make the subscription at the time for the sum, and in the mariner she did, and that all the preliminary steps required by law to be taken in order to make her subscription valid and obligatory had been taken. No legal notice of these proceedings has been served upon the officers of the Company, but legal advice has been again sought upon the points involved, and the Board are confirmed in the

opinion that the subscription will ultimately be realized by the Company, though some delay may be occasioned in collecting it, if this suit concerning it is prosecuted to a final hearing.

The legal proceedings to which reference is made in the matter of the Burke County subscription, have, as already stated, been instituted within the last few days, since the Certificate of the President and Treasurer was forwarded to the Board of Internal improvements, authorizing them to make the subscription on the part of the State under the amended Charter.

The amended Charter provides that as soon as the subscription of Stock for building the first section to Morganton, as therein authorized shall be made, our Company shall survey, locate, and ascertain the cost of the second section, which is to extend from Morganton to a point within 10 miles of the Western Portal of the Swannanoa Tunnel, with a view to open Books for the subscription of Stock to the amount of one third the cost so ascertained. Immediately upon securing the subscription referred to in said amended Charter, a corps of Engineers was organized by direction of the Board, and are now engaged in making a survey and actual location on the line from Morganton to the point within 10 miles of the Western Portal of the Tunnel. Reference can be had to the Engineer Report for particulars connected with that survey, and the progress made in the location.

The stations at Salisbury are in progress of building jointly with the North-Carolina Railroad Company; one of them intended for Freight and Merchandize is completed and occupied, the others will be completed in the course of the present year, and will we think, when finished, compare favorably with any similar buildings of the same cost to be found on the line of any Railroad in the country. The Depots at Rowan Mills, and at Statesville are completed and ready for use, and we think are neat substantial and convenient houses for the purposes intended.

The report of the Chief Engineer accompanies this report, and by reference thereto you will obtain more particular information touching the progress of the Road,

I take pleasure in still being able to bear testimony to the ability and zeal displayed by the Chief Engineer and his worthy assistants, in the discharge of the respective duties devolving upon them, and likewise to the fidelity of the Treasurer in the department confided to him.

I have the honor to be,

Very Respectfully,

Your obedient servant,

R C. PEARSON,

President

[Treasurer's Statement dated July 1857 - July 1858

- R. F. Simonton]

REPORT OF THE FINANCE COMMITTEE.

Your Finance Committee having examined the Books and Vouchers in the hands of your Treasurer, respectfully report the above account to be a correct Statement of the Finances of the Company, on the 1st July, 1858.

A. W. JAMISON, M. F. FREELAND, C. A. CARLTON.

ENGINEER'S REPORT.

Engineer's office, Western N. C. Railroad,

Salisbury, August, 1858.

To the President and Directors of the Western North-Carolina Railroad Company :

Gentlemen :—As the annual meeting of your Company will be held in a few days, I propose to lay before you a brief statement of the progress and condition of that department committed to my charge.

The graduation of the First Division of the First Section, with one exception, has been completed to Statesville, and over this exception a temporary track has been laid in order to facilitate the progress of the track laying. Of the graduation west of Statesville and east of the Catawba River, there remains four sections yet to be completed. West of the Catawba River and east of Hale's, fair progress has been made ; and although only --------- sections have at this time been completed, the remaining part of the work has been so far advanced as to leave n-s no cause to complain. This brings us 52.2 miles—the termination of the first section under the original charter. The terminus of the first section under the amended charter is at Morganton and 23.45 miles distant; but of this part of the line I shall submit further information in a subsequent part of this report. The Masonry oh all the line between Salisbury and Hale's has been finished except at three points:

1st. The second crossing of third creek near Statesville. This is a viaduct of 250 feet in length, consisting of granite abutments and piers for 5 arches—one of 60 feet and four of 34 feet span; the abutments and piers have been built. The arch of 60 feet is of granite and has received the key stone, whilst the remaining four arches of 34 feet span each, have all

been built of brick, and the whole structure will in a short time be finished.

The 2nd point is Buffalo Shoal Creek. The Masonry here consists of abutments only for a Bridge of 125 feet span. This work has been somewhat delayed, but it is hoped it will be done in time to prevent any interruption in the track laying.

3rd and last, is the Bridge at Catawba River, which will be 530 feet in length, consisting of granite abutments and piers, supporting four spans of wooden superstructure. At this point the two abutments and two of the three piers have been built; the third and last pier has not been commenced owing to a defective foundation. But active preparations have been made to procure such machinery and material as may be necessary to secure a sure and safe foundation. The viaduct over Macklin's Creek, consisting of three arches, one of 50 feet and two of 34 feet span each, rests on abutments and piers of granite. From surface of water to grade is 45 feet. To this structure, as well as those at the second crossing of Third Creek and Grant's Creek, I most respectfully invite the attention of all who may feel interested in the success and permanency of the Road. These are beautiful and substantial structures built at a moderate cost and reflecting credit both upon the contractors and the Company. The Joint Freight House at Salisbury, has been built and nearly completed. The Joint Passenger House is in progress of construction, and will be finished in a short time. The Station Houses at Third Creek, midway between Statesville and Salisbury, and at Salisbury, have both been completed, and are well suited to the necessities of the Road. The Station Houses at Catawba River, and at Newton, are in progress of erection. The wells have been dug at Salisbury and Statesville, and a good supply of water obtained. Wood and Water Stations will in a short time be erected at Third Creek, and the supply of water obtained from a spring near by, through the medium of a hydraulic ram ; but intermediate between Salisbury and Third Creek, we have availed ourselves of a spring which arises in the deep cut known as Ellis' cut, from which the water is conducted in pipes to the Water Station. This

water is supplied in great abundance, without the expense of pumping. By this method I propose to furnish the greater part of the wafer for the rise of the entire Road, and thereby save to the Company, for all time to come, the expenses of Wells, Pumps and their repairs, as well as the labor to pump.

Under the contract referred to in last year's report, I have had all the Flat Cars now in use built; and whilst the same contract provides for the construction of Box and Baggage Cars, &c., we have had built in all only 22 Cars, including one Baggage and one Car for light Express Freight. Thus we propose to have built, from time to time, such Cars, and as many of them, as the necessities of the Road require. Two First Class Passenger Cars have been purchased from a manufacturer in Jersey City, and are daily expected to arrive. Additional motive power, which will soon be required both for construction and freight, has been contracted for, and will soon be ready for delivery.

The necessary Books and Stationary for the agent at the regular stations, have been provided. The Graduation and Masonry of the First Section having been completed to Statesville; the Bridges having been built and now only requiring covering and weatherboarding to complete them; the cross ties having been furnished and laid down on 22 miles of the Road, and upon which the iron has been laid for 20 miles; the Iron Horse has been in training along this whole distance -—sometimes performing the drudgery pertaining to the construction of the Road, whilst occasionally he has been permitted to draw cars loaded with freight and passengers. It was our purpose not to put on either a passenger or freight train until the track had been laid to Statesville; but the urgent appeals to us to carry both Freight and Passengers, have led us to the conclusion that we can, without serious inconvenience, run a Freight and Passenger train in connection with the Construction train, and this we are now doing. In the absence of any directions from the Board,! have for the present instructed our agents to be governed by that tariff of freight which has been adopted and used on the North Carolina Railroad.

Thus it may be seen that the Cars may in a few days be running to Statesville; yet we do not propose to delay them, but to continue laying down the cross ties; and as soon as Third Creek viaduct is completed, it is our purpose, in order that there may be no delay, to trestle over the approaches to the viaduct, and then form the embankment with the Cars, and thus push forward the track-laying to the Catawba River.

One word in relation to the track. I invite the attention of the Company to it. It has been but recently laid, and in some instances upon green embankment; but I challenge the Southern country to shew a more substantial track, notwithstanding the Iron weighs only 53 Ibs. to the yard, and laid on cross ties of white and post oak, not equaled by any South of Mason and Dixon's line, embedded two feet apart from center to center, and when we shall have the few slides which have fallen, removed, and the ditches opened, it will at least equal our expectations.

The question has been asked, whether the grades on the Road were not heavy. In answer to which I hear take occasion to say, that there is no Railroad in the interior of any of the Southern States, away from the sea coast, but what has grades equal to, and in many instances greater than those on this Road. The maximum grade on the entire Road, between the town of Salisbury and Morganton, a distance of 75.65 miles is only 53 feet per mile ; whilst upon some of the neighboring Roads it is 60 feet per mile. It will therefore be seen that the grades on this Road are not extraordinary.

I cannot permit this occasion to pass without calling to the attention of the Company, the importance of having and owning such hands as may be required upon the Road, but more especially the train hands, and such as are required at the stations. The importance and necessity of this may be seen at once, when it is recollected that the duty assigned them is of no ordinary character, but such as requires experience, industry, sobriety, honesty and good judgment. The qualifications may be found occasionally combined in the hands yon hire ; but when it is recollected that for such hands you have to pay extraordinary wages, besides the uncertainty of retain-

ing them, there can be no doubt but that to buy such as will suit, and instruct them, is the most economical, besides being much the most desirable and reliable.

Since the last Annual Meeting of the Stockholders, the amount of Stock necessary to be subscribed by individuals, counties or corporations, to wit: $220,000, has been made, and a contract entered into with C. F. Fisher, Esq., for the completion of the entire Second Division of the First Section, extending from a point near Hale's Store to the town of Morganton, a distance of 23.45 miles.

It will be recollected that the line adopted by the Board was the Ridge line. This line requires less Masonry, and is about ------ of a mile shorter than the River line. The location of the line near the town of Morganton has not been made ; but it is hoped and believed that no serious difficulty will arise in making that location what the interest of the Company demands. The work thus under contract is to be completed by the 1st day of January, 1861. Preparations have been made to begin the graduation, whilst the Masonry has already been commenced. It is, therefore, hoped that no serious obstacle will be presented to retard the progress of the work.

The amended charter provides, further, for the extension of the Road to the base of the Blue Ridge; and that so soon as the Stock shall have been subscribed for the completion of the First Section, and the contracts let out, that then the Company may have the Second Section located, and an estimate of its costs made. Therefore, in view of such contingency, I have, by your authority, organized a corpse of Engineers for that purpose. They are now engaged in the discharge of that duty; and I am gratified to be able to inform you, that in a few weeks the Second Section of the Western North Carolina Railroad, extending from Morganton to "Old Fort," or the foot of the Mountains, will be ready for the contractors. When this location shall have been completed, I shall embrace that opportunity of giving further information upon that subject.

In conclusion it affords me renewed pleasure to bear testimony

to the industry, ability and general efficiency in discharging the respective duties assigned them, of each member of the corps of Engineers now in service. I have the honor to be,

Very respectfully, your ob't servant,

JAMES C. TURNER,

Chief Engineer Western N. C. Railroad.

LIST OF OFFICERS

On the Western North-Carolina Railroad, on the 26th August, 1858, with their Duties and Compensation:

[Table of names, their duties and compensation - President, Directors (State and Private Stockholders), Secretary, Treasurer and Chief Engineer]

LIST OF ENGINEERS AND ASSISTANTS

Employed on the Western North-Carolina Railroad, August 26th, 1858,

FIRST SECTION.

James S. Morrison, Assistant Engineer and Superintendent Track laying. $1,000 per annum.

J. Calder Turner, Assistant Engineer and Superintendent Track laying $720 per annum.

W. A. Eliason, Resident Engineer, $1,000 per annum, and allowance for Horse and Buggy.

S. S. Kirkland, Resident Engineer, $1,000 per annum, and allowance for Horse and Buggy.

J. S. Wilson, Resident Engineer, $720 per annum.

SECOND SECTION.

R. C. McCALLA, Principal Assistant Engineer, $1800 per annum.

Dr. N. Mendenhall, Assistant Engineer, $1,000 per annum.

T. Coleman, Transit Man., $720 per annum.

S. P. Caldwell, Assistant Engineer Leveler, $720 per annum.

Sion Dessey, Draftsman, $1,000 per annum.

T. J. Armstrong, Rodman, $1,00 per diem.

Lewis, Rodman, $1,00 per diem.