Current:

Leader (1850-1860), 2nd October 1858, Edition 1 of 2, Page 1038

Page 1038
Page 22
22 of 32

On this page

  • Text (3)

      Note: This text has been automatically extracted via Optical Character Recognition (OCR) software. The text has not been manually corrected and should not be relied on to be an accurate representation of the item.

    • Untitled Article

      Untitled Article

    • Untitled Article

      Untitled Article

    • Untitled Article

      Untitled Article

  • Transcript

    • Note: This text has been automatically extracted via Optical Character Recognition (OCR) software. The text has not been manually corrected and should not be relied on to be an accurate representation of the item.

      Additionally, when viewing full transcripts, extracted text may not be in the same order as the original document.

      Untitled Article

      paid-up shares to him , to which , of course , they were unable to accede . They have now , therefore , to submit the above resolution of October , 1853 , to your consideration . , , . , « . ' x Ydur board cannot conclude without ailing your at ^ tention to the sound position of the colony of the Cape . From the official returns it appears that the revenue has nearly doubled itself within ten years , having risen from 222 , 000 £ in 1847 , to 407 , 772 ? . in the year ending March 31 , 1858 . In the year 1857 , the revenue was 853 j 737 £ , and the expenditure 314 , 433 / ., leaving a balance of 39 , 304 ? . In the next year , the surplus of revenue over expenditure had risen to 54 , 667 ? .

      With respect to the probable traffic that may be expected over the line , it appears from the official tables that , in the thirty working days , exclusive of Sundays , from the 4 th of March to the 8 th of April , last year , the traffic on the upper and lower roads into Cape Town included more than 50 , 000 passengers in vehicles , besides nearly 10 , 000 on foot : 10 , 000 waggons and carts , carrying above 11 , 000 tons of goods ; 3800 omnibuses and carriages ; and at least 10 , 000 sheep and cattle . In wine and brandy alone the districts through which the line runs produce 31 , 000 pipes and 873 , 000 bushels of grain . The export of wool from the Cape has risen from 7 , 864 , 000 J n 1853 , to 14 , 921 , 000 in 1856 ; and that of wine in the same period from 771 , 707 gallons to 923 , 066 gallons .

      nextday ) , and to be completed within three years . There was nothing which could interfere with the operation of the guarantee arising out of the conditions of the agreement , while there was much that would materially facilitate it . With regard to the time allowed for completing the line the company were most liberally dealt with . Any laches on the part of the Government in carrying out their part . of the agreement , or any accident arising from political or other causes ;' over which the company had no control , were to be taken into account , and due allowance made , and beyond that there was a margin of eighteen months to be accorded ; so that independent of any allowance for delays arising from circumstances such as he had referred to , they would have four and a

      half years within which to complete the works . But the contractors were most anxious to complete them within two years , and were confident of being able to do so , and of course every facility would be afforded to them for that purpose by the " board . With regard to the prospect of completing the works within the stipulated sum and thus ensuring to the shareholders the full benefit of the guarantee , be believed they might safely trust the estimates of Mr . Brounger , who had carefully survej'ed the line ; but if there was any doubt upon that point they had the security of the contractors , who had bound themselves under a penalty of 25 , 000 ? .

      to do the work for a fixed sum , which would leave an ample margin for rolling stock and for defraying managerial expenses until the line was opened for traffic . Further , it was stipulated that if the contractors failed to complete the works within the three years they were to pay all the expenses of management from that period until the line was handed over in a finished state to the company . The directors being amongst the largest shareholders of the company , of course it was their interest to do all they could to expedite the works and to prevent any excess of expenditure which might interfere with the rate of the guaranteed interest . But should the-170 , 000 / . be exceeded

      ( which , as he had already saLd , was not likely ) , there was a clause in the agreement by which the Government bound themselves to pay the six per cent , upon the cost of the line , and gave power to the company , if they made four per cent , over the expenditure , to call upon the Government to make it up to the six per cent , on 500 , 000 ? . or 550 , 000 i These were clauses not framed by the company , but by the Colonial Government ; and he could scarcely imagine , therefore , any contingency by which their interest could be reduced below the stipulated six per cent . The directors had not limited the capital of the company to what would be required for the construction of this line , and for this reason , that he believed the Colonial Government would be so satisfied

      with the manner in which the contract would be carried out , that they would call upon them ultimately to complete the whole system of railways of which this was but the first Btep . It would be observed in the report that the preliminary expenses were fixed at 5000 ? ., which included not only the cost of surveys , but the remuneration to the directors and himself up to the present time . Their future remuneration was included in the estimate of 2500 ? . a year for managerial expenses until the line was completed ; but as it was proposed to open the line

      in parts as each part was finished , it was expected th it the management expenses would soon be met by revenue . In reply to questions from Captain Nutting , Mr . Browne added that the total length of the line to Wellington would be 54 miles and a few chains . It would be a single line in the first instance . The resolution was then put and carried unanimously . The Chairman then proposed a resolution to the effect that 2 Q 0 paid-up shares be allotted to Captain Raymond , tho registered promoter of the company , ^

      This motion gave rise to considerable discussion , in the course of which the chairman explained that t ho line now about to be carried out had not been originally projected by Captain Raymond , nor was tho present satisfactory position of the company owing to any assistance from him , but was the result of tho exertions of the directors themselves . Captain Raymond stood as the registered promoter , and the board , in 1858 , had passed a resolution similar to tho one now submitted to the shareholders . Ultimately a shareholder proposed that 1000 ? . should be awarded to Captain Raymond , on condition that the Chancery proceedings instituted against the company by that gentleman ' s assignees— -he having fallen into pecuniary difficulties—be withdrawn .

      Thia amendment was adopted , and after a vote of thanks to tho directors—the proposer of which paid a high compliment to Mr . Browne for his successful exertfone , to the value of which the chairman , in acknowledging the resolution , also bore testimony—the meeting separated .

      The Chairman , in moving the adoption of the report , would draw attention to the resources of the colony , -which , except as the locality of Kaffir wars , he believed was but little known in this country . When he first became acquainted with the colony its imports were only 360 , 000 ? . a year , now they amounted to two millions and a half ; its exports of wool were within 20 , 000 ? . a year , now the sales of Cape wool in this country amounted to a million and a quarter . These facts would show the thriving condition of the colony . It might be well to add that the colony was dependent entirely on its own resources—that it had thriven by its pwn means , unaided by loans or assistance from any quarter . There was consequently no external debt or

      other charge to impoverish it or to retard its progress . In the report the shareholders . were told of the delays that had arrsen from causes tBat could not be foreseen in carrying out the project . As they were aware , it had commenced in 1853 , and , after the many obstacles and delays which had interposed , he was happy to say that they had at length arrived at the time when there was a reasonable prospect of the verification and the ultimate success of the scheme . He might also add that the contract between the company and the Government was in so satisfactory a position that it might be said to be completed , for it only awaited the signing ; and he was authorised to say that the contract for making the line was practically

      concluded . They had , under their agreement with the Colonial Government , a minimum guaranteed interest of 6 per cent ., with a condition that whatever surplus there might be beyond was to go one-half to the company , and the other half to the Colonial Government in redemption of the amount guaranteed . And further , the company were to be permitted to continue t ^ beir rates of fares until they divided 10 per cent , profit . In conolusion , he would move that the report be received , and the recommendations therein contained with respect to the preliminary and management expenses be adopted . He put the resolution in this form , in order that the question as to the allowance that should be made to Captain Ravmond might be left open .

      Mr . Browne seconded the motion , and read a letter from the Government solicitor , intimating that the contract was engrossed , and only -waiting for the signature of the company . The terms of that contract were most satisfactory , and he could not but congratulate the shareholders upon having succeeded , by that English bull-dog resolution which would never acknowledge itself beaten , in obtaining the object for which they had for five years laboured , against difficulties and impedimenta which to some minds would have appeared almost insurmountable . After entering into minute detailsinto the history of the project fron > 1853 , when it was first propounded , down to the present time , and , acknowledging the obligations they owed to Lord John Russell for assisting them in obtaining their act of incorporation , -when that noble lord was Colonial Minister , ho explained that the Colonial Legislature having

      ignored the prior claims of the company , and thrown the line open to public competition , the directors had caused surveys to he made , and had tendered for the construction of the line from Gape Town to Wellington for 600 , 000 ? . After various delays this tender was accepted , upon which sum tho Colonial Government had agreed to guarantee 0 per cent . On the advice of Sir 0 . Fox , the consulting engineer , and Mr . Brounger , the engineer in the colony , that estimate bad been revised , by the reduction of 80 , 000 ? ., the original estimate having inoluded the land , which was tho Government ' s , now conceded without charge , and having been taken at the higher price of iron which ruled at the time . The contract therefore stood now at 470 , 000 ? ,, the conditions being generally these : —< Tho guarantee to be for fifty years from the opening of the line , the work to be commenced within six months from the signing of the contract ( which would be either to-morrow or tho

      Untitled Article

      SCINDE . The half-yearly meeting of this company wa * held on Wednesday , at the office , ( jretsham-house , Old Broadstreet ; Mr . W . P . Andrew in the chair The Chairman explained that the Scinde Railway , Indus Steam Flotilla , and I ' unjab Railway were three distinct enterprises , for which separate accounts wore kept , but they were under one management , the directors holding a certain amount of shares in each undertaking , In the month of June last year authority was obtained forthe establishment of a steam flotilla on tho Indus and other rivers in India . The Scinde Railway wiis for the purpose of connecting the harbour of Kurrachce with the Indus , near Hydrabad . It had a distinct capital ; and , in fact , each undertaking would stand or fall by its own merits . The steam flotilla would continue the communication from near Hydrabad up the Indus to Mooltan . Tho capital of this undertaking wus _ > 50 , 0 u 0 / ., in 'iol . shares , having a guarantee of 5 per cent . They considered that capital sufficient , but it was quite possible that the great increase of traffic thnt was going on might require an increase in the amount of accommodation on the river , and consequently in the amount of capital tor the boats . Tho Punjab Railway would commence at Mooltan and extend to Lahore and Umritsir , the capital fop which was fixed by the authorities at l , 5 ( J 0 , 0 ( M , and upon which tho company had a guarantee of a per cent , per annum . The authorities considered Hint we facilities were so great for the construction of the r »" w"y that the amount stated would bo sulllcient , but w thought that more money would bo required notwithstanding those facilities . Each undertaking woiiM iismw the other two , and the success of one would promote too success of the other . The capital and revenue ncconnw of © aeh would be distinct , and be dealt with eepnrnteiy , both as to dividend and other matters . Tho woi-R 8 o » tho Scindo Railway were formally commenced on w 29 th of April last , and ho had recently been mlormjo that the works progressing idlyand l " l

      were rap , , bllU , V bill ! V 1 VI . TIB YtUHU | l * Wf , > vi >»* "tt » . » ,..,.-,, , llli / illlM * embankment * were visible along the route . AJin «» b April had boon mentioned aa the timo when the w > were begun , tho company had previously commui operations near Kurrucheo with ft view to oonnctl harbour with tho station and main lino , so ns to u « j » pared to receive tho locomotives when lnmlo « l s «'" hoped they would soon hear of tho introduction oi i iron horso into that part of India . Ho hurt on >« ° " occasions called their attention to tho cnpabilUi «» « , harbour of Kurrachoo > which wore now wel known , ho need only mention at prosont that 40 uhipa ' ' fl d veyod 25 , 000 tons of railway material * to that puiu landed them safely . In 1850 , M «» P « ™ ' ^ ° o £ 8320 tons ; in 1857 , 17 ships convoyod 1 ( 'V n ,,, I'nfimatorials } <»> 4 in , 1858 , 25 ' ships convoyed fro in i b land , up t ' o tho * th instant , 12 , 500 tons of inntoi « 1 of which had not yet arrived at Kurrachce . j so ttmj j the end of n few months from tho present t mo . « g i would have convoyed 40 , 000 tons of ™*™' urtttUo achec for tho Scinde Railway . Ho might mention ww-

      Untitled Article

      with Indian railways to require further notion from us beyond the fact that- it is under his ex perienced and sagacious management these creat industrial enterprises will be carried out . fa ' We must refer our readers to the speech of ~ Mv Andrews' at the meeting of shareholders on Wednesday last . That speech ' contains a clear and concise exposition of the condition and prospects of the undertaking , and the rapid progress that is beW made with the works . By its aid shareholders will have no difficulty in understanding accurately the importance and remunerative character of the great undertakings in which they have embarked . We may here refer to the remarks of Sir H

      SCINDE RAILWAY COMPANY , INDUS STEAM FLOTILLA , AND PUNJAUB RAILWAY . Tub above undertakings arc among tho most important that have been devised for tho development of tho resources of India , tho consolidation of British power , and tho incalculable extension of British com * moroe . Mr , Andrew is « too well known in connexion

      Maddock with reference to the low price-at which the shares of the Scinde Railway arc now quoted hi the market . We have over and over again cautioned holders of shares in sound and legitimate undertakings , especially if in course of construction to pay ho attention to Stock Exchange quotations ! These quotations are no criteria of real value j they only indicate the dealings between jobbers and speculators . The system of business of the Stock Exchange is to keep quotations of good projected lines at a low figure until the works approach completion , then , having wrung holdings from timid or . weak hands until -well supplied with stock , the two or three dealers , who constitute what is called

      the " max-kct , " combine to send up prices and . fill their pockets . As far as the shares of this company are concerned , it is questionable whether a better channel for permanent , not speculative * , investment could be found . There is a certain live per cent . Government guarantee ; and that alone ought to send the shares to fifteen per cent , premium if we take four per cent , as tho par of railways . The chairman intimated it was possible more money would be wanted . If so , we may safely recommend holders of idle capital to turn their attention in this direction .

      Untitled Article

      1038 THE LEADER . [ No . 445 , October 2 , 1858 .

  • Citation
    • Leader (1850-1860), Oct. 2, 1858, page 1038, in the Nineteenth-Century Serials Edition (2008; 2018) ncse-os.kdl.kcl.ac.uk/periodicals/l/issues/vm2-ncseproduct2262/page/22/