The Sun.
London, England, 1864-09-30 00:00:00

The Leeds Bank Failure,

Three petitions for the winding up of this company have
been presented, and this morning the matter came on before
Vicc-Chancellor Kindersley, at his private residence. One
petition is from Mr Ward, an offi3er of the bank; another
from Messrs. Smith, Payne, and Smith, the London agents
of the tank; and the third is from Mr C. Kemplay, of Leeds,
Mr Warren said all the petitioners requested his Honour to
fix a day fur the hearing. His Honour said seven days no-
tice was required. As it was vacation, none of the creditors
could do more than issue a writ. After some conversation
thn Vice-Chancellor fixed the 13th October for hearing the
petition, which will take place at his Honour's priv.te re-
sidence.

The meeting of the Leeds Banking Company, fixed for
Wednesday, at Leeds, has been looked forward to wi,h ex-
treme interest, The total liabilities were stated at the meet-
ing at £1,330,308, including unsecured creditors for
£639,337. Other creditors hold security to the extent of
£9),571. The liabilities on bills receivable bearing the en-
dorsement of the bank amount to no less than £1,990,991,
Of this, £1,000,000 is estimated to rank against the bank,
and, deducting this from £400,000, estinia'ed as likely to be
recovered from the drawers, &c., there appears to be a de-
ficiency of XGO ',OOO on the bill accounts. This of itself
seems to involve a call of upwards of £BO per share upon
the unfortunate shareholders. The total assets of the bank
were stated at £3_6,6)5. The meeting decided that the
company shall be wound up, and Mr C. Butler, (;1 London,
Mr AV, Ledgard, of Eyres and Sons, Leda, and Mr Wm.
Turquand, tne accountant, of Mtsst a Coltman, Tat pi infi,
Youngs, and Cu., of London, were recommended as
deters.

In the Times city article is stated that about 253 p-r-
-sons were present at the sharcheldele useetibg. At the
meeting of creditors the accounts were eitcUssed end ques-
tions asked, Lut no resolutions were adopted. The general
itnpres,ion among them seemed to be that the assets woto
overvalued and the liabilities under estimated, nee that
.£1.,0e0,00,1 will be rcquireo. At this meeting the number
present was also about 250. At both meetings the conduct
of Mr Greenland, the manager, was deservedly reprobated
with great severity.
Among the provincial failures announced during the
past few days have been Messrs. Lightfoot and Sous, sugar
refiners and rice millers, at Liverpool ; Mr Robert Wien-
dell, of Manchester, corn merchant ; and Mr David Rams-
den, of Cottingley, near Bradford, spinner and ruanufac-
tut er. Mess's. Walker, Cotesworth, and Co., of
,Liverpoel I
have addressed a circular to their creditors, reque,,tieg for-
bearew_.e until the result shall have baeu ascertained of the
negotiations pending with regard to the Leeds Backing
Company.
FAILURE AT BRADFORD.-. On Wednesday a meeting of
the creditors of Mr David Ramsden, worsted spinner, of
Bradford, was held in his counting-house in that town, Mr
Joseph Oidy presiding, Mr Blackburn, accountant, read a
copy of Mr Itamsden's stocktaking made in June last,
which showed him to be solvent, and possessed of a small
surplus, Re then read a statement of his affairs brought
forward to the present time, by which it appeared that Mr
Ramsden's liabilities amount to £40,148, of which about
which
£lB,OOO is owing to the Leeds Banking Company. The
result ofi
h ehaassets were estimated to realise £39,076. Mr Blackburn
said the books had been admirably kept, and he had been
able to extract particularstheretromeeprtae
showing the
year in
btransactionscarious inquiries,
idri uiners were satiefactorily janswerei byi
whichg every
his
present business. The creditors made
Mr Ramsden and the accountant. Mr. Ramsden then with-
drew, and his affairs were discussed with freedom. A re-
solution was unanimously passed to the effect that the
creditors were willing to accept from Mr Ramsden a com-
position of 15s in the pound on the amount of their respec-
tive debts, such composition to be paid by three instahnents
of 5e each, at three, six, and nine months each, provided
the last instalment should be satisfactorily guaranteed.
Messrs. J. Oddy, T. Renton, Crabtree, and E. li, Ward
were appo'nted a committee to c infer with Mr Ramsden as
to the course to be put sued until the composition arrange-
ments are fixed, and power was given to them to approve,
on behalf of the creditors, persons who may be proposed as
guarantee for the paymeet of the last installment, The
creditors present expressed their sympathy with Mrßams.
den, and a hope that he might be able to re-establish him-
self in business.

The quotation of gold at Paris is about 3 per milk pm., at d
the short exchange on London is 25.321 per LI sterling. On
comparing these rates with the English Mint price of
17s. 100. per ounce for standard gold, it appewts that gold is
about 3-IMo per cent. dearer in London than ix Parl3.

The Great English and French Railways.

THE PARIS AND MEDITERRANEAN,
If " unrestricted competition" is the order of the
day in regard to English railway's—if little heed is
paid to vested interests, and the course of legislation
generally keeps dividends i own to seven or eight
per cent. at the most—if vague generalities are
indulged in with reference to the accommodation
of the public, LS:c.—it must be admitted that a com-
pletely contrary state of affairs prevails in France.
There they run into the other extreme. Great
State subventions are accorded, elaborate conven-
tions are concluded, and every care is taken to secure
10, 15, and even 20 per cent. to shareholders. The
company to which we are now about to direct
attention, and which has sprung int) existence
under these fostering influences, is the mightiest
railway enterprise which the world has yet wit-
nessed. It would seem that the French, although
they borrowed most of their railway ideas from
England in the first instance, are now determined to
outdo us in the formation of great companies. The
Paris and Mediterranean—or, as it ought more
strictly to be termed, the Paris, Lyons, and Mediter-
ranean—dates from April 11, 1857, when it was
formed by the amalgamation of the two companies
owning the Paris to Lyons and Lyons to the Me-
diterranean lines, the latter having itself concluded
a fusion with the Lyons and Geneva, by the terms
of a treaty dating from January 1, 1857. The cahier
des charges of the company was approved Jane 19,
1857 ; and the statutes, prepared Juno 30, 1857,
were approved on the 3d of the following month.
The arrangements made provided for the creation
of 890,000 shares, forming the share capital of
the amalgamated companies. The 90,000 shares
of the Lyons and Mediterranean Company
were exchanged at the rate of one old share
for two new shares, making 180,000 ; and the
265,000 shares of the Paris and Lyons Company
were exchanged at the rate of two old shares for
three new shales, making 397,500. The number of
new shares thus created was 577,500, and the new
company further issued 115,500 (L2O) shares at the
rate of £29 8s each. The total issue of shares was
thus carried to 693,000; and in September, 1863,
the administration further issued 100,000 more
shares at £2B each. These latter shares were sub.
scribed for exclusively by the holders of the pre.
viously created stock of the company. The whole
number of shares thus accounted for is 793,000, and
the odd 7,000 still remain in the "portfolio" of the
company,and will be negotiated when the necessity
arises for bringing them upon the market. These
shares represent in sums actually paid up-Ist. The
capital of the Lyons and Mediterranean Company,
£1,800,000 ; 21. The capital of the Paris and Lyons
Company, £5,300,000 ; and 33. The amount of the
subscription to the 115,500 shares, £3,395,700; or
L 10,495,710 in all, To this amount must be added
£13,377, a supplementary premium, realised for
some of these latter shares ; £214,800, the premium
realised on the old shares of the Lyons Company
remitted to the old Dijon Company; and £2,890,000
for the 100,000 shares issued at £2B each ; or
£3,028,177 in all, which added to the previously
indicated total of £10,495,710 makes a definitive
aggregate of £13,523,887. This would be a re-
spectable capital in itself, but it by no means
represents the amount which the Paris and
Mediterranean has raised, an immense sum hay.
in; been obtained by almost endless issues of
obligations. Thus the company itself has been
authorised to create 2,400,000 of these securitiee,
bearing an annual interest of 3 per cent., issued at
about £l2 each, and redeemable at £2O each by
annual drawings in the course of 99 years,
from 1860 to 1958. These obligations were
divided into four series of 600,000 each. The first
three series are completely issued, and of the fourth
series 514,342 had been issued to the close of 1863,
leaving unissued 85,633, a number totally inade-
quate to meet the enormous responsibilities which
the company has undertaken, and whch it can only
meet by obtaining authority for fresh borrowing
powers. Of the 1,830,240 obligations issued at
the close of 1862, 1,516,240, representing a suna of
£17,890,480, had been applied to the development
of the new network of lines which the company has
either completed or of which it is prosecuting the
works; 122,900 obligations, representing a sum of
£1,390,178, had been negotiated on account of the

Lyons and Geneva Company, and were applicable
to the repayment of advances made by the Paris
and Mediterranean ; and 211,000 obligations, re-
presenting, a sum of 2,568,212, had been tegotiated

on Recount of the old network of lines. Of the

464,002 obligations issued in 1863, 236,502 '
were devoted to the requirements of the new net- I
work, 133,333 in redemption of the shares of the
Lyons and Geneva, 58,333 in redempton of the shares
of the Dauphine, and 45,833 in redemption of the
shares of the Algerian ; for the company, not content
with an immenee number of lines in France, has
even obtained concessions of a network in Algeria,
and assumed works undertaken in 1859 or 1860 by
an English contractor (S:r M. Peto). As illustra-
tive of the improved credit of the company, wa may
remark that of the 464,002 obligations, or small dee
beetures, issued in 1863, 226,501 were negotiated on
the Paris Bourse at an average of £l2 4s 4d each,
while in 1862 the corresponding average was £l2 is
11d. By a recapitulation of the figures we have
given it will be seen that the total raised by the
company by shares and obligations at the close of
1862 was £35,314,756, and assuming that each
obligation issued in 1863 produced an average of
£l2 43. each, it follows that £5,660,824 was obtained
from this source last year, carrying the total capital
raised by the Paris and Mediterranean Company pro.
per to the close of last year to X 40,975,580. Although
our totals become vaster and vaster, we have not yet
fully reached the definitive " resources" which had
been made available at the close of 1863. Thus the
expenditure incurred on the old network at the
end of last year was £38,601,249, and on the new
network £28,095,122, or, combining these two totals
together, the aggregate outlay on the entire system,
December 31, 1863, was £66,696,371. The resources
realised to the same date on capital account were
for the old network, £38,423,736; and for the new
network, £27,666,136, or £66,089,872 in all. We
have shown that the amount raised by the com-
pany proper to the close of 1863 was £40,975,580,
and on deducting this sum from the previous
total of £66,089,872, a balance of £25,114,292
remains to .be accounted for. An explanation is
found in the number of loans contracted by com-
panies now fusioned in the general Paris and Medi-
terranean undertaking, and the annual charge of
which it has, of course, accepted.
The first of these loans was contracted in 1852 by
the old Paris and Lyons Company, and consisted of
80,000 4 per cent. obligations, issued at about £42
each, and redeemable at £5O each in 50 years from
the Ist of October, 1852. The second loan was con-
tracted in 1853, and 1856, and 1857 by the Paris
and Lyons, and consisted of 250,000 at 3 per cent.
obligations, issued at prices ranging from £lol6s.
to £ll 10s. each, redeemable at £2O each by annual
drawings from 1856 to 1905. The third loan was
contracted in 1850 by the Marseilles and Avig-
non Company, and consisted of 30,000 4 per
cent. obligations, issued at £4O each and redeem-
able at £5O each, in 33 years from January, 1862.
Almost the whole of these obligations, it may be
added, have been exchanged against a 5 per cent.
obligations created in 1852 by the Lyons and
Mediterranean Company. The fourth loan was
contracted in 1852 by the Lyons and Avig-
non Company, and consisted of 8,000 obliga-
tions, similar to the preceding ; they have been also
nearly entirely exchanged against 8 per cent.
obligations of the Lyons and Mediterranean. The
fifth loan consisted of 40,000 4 per cent. obliga-
tions, issued by the Lyons and Mediterranean Com-
pany at £25 each, redeemable at the same rate,
and called Marseilles and Avignon shares, created
in representation of the shares of the Marseilles and
Avigncal Company. These obligations have been
almost all exchanged against 3 and 5 per cent, obli-
gations of the Lyons and Mediterranean. The
sixth loan was contracted in 1852 and 1853
by the Lyons
and Mediterranean Company, 3
ind consisted of 264.939
each, and percent.
obliga-
tions, negotiated at £ll 43.
redeemable
at £2O each by annual drawings from suly
1856
to July, 1955. The seventh loan we 8
1852 by the Lyons and Mediterranean Company,

and consisted of 120,000 4 per cent. obligations,
redeemable at £25 each in 99 years, from 1856 to
1995 ; 60,000 of these obligations were iss r d in ex-
change for 30,000 obligations of £5O each issued by
the Marseilles and Avignon, and 8,000 obligations
of £5O each issued by the Lyons and A v'gnon. The
eighth loan was contracted by the St. Etienno and
Lyons Company in 1841, and consisted of 7,2194 per
cent. obligations, issued at £4O each, and redeem•
able at £5O each in 30 years, from 1842 to 1871 ;
these obligations have been almost wholly converted
or redeemed. The ninth loan was contracted by the
St. Etienne and Lyons Company in 1856, and con-
sisted
of 10,000 4 per cent. obligations, issued at
£4oeacb, and redeemable at £5O by annual drawings
from 1853 to 1926 ; these obligations have been to a
great extent converted or redeemed. The tenth loan
was contracted by the St. Etienne and Lyons, and
consisted of 2,946 4 per cent. obligations, issued at
£54 each, and redeemable at the same rate by
annual drawings from 1872 to 1891; the drawings
have not yet commenced, but the obligations have
been to a great extent converted into similar securi-
ties issued by the Rhone and Loire Company. The
eleventh loan was contracted in 1843 by the St.
Etienno and Loire Company, and consisted of 300
obligations, issued at £4O each, and redeemable at
the same rate by annual drawings from 1846 to 1875;
these obligations have been almost wholly converted
or redeemed. Tie twelfth loan was contracted in

1847 by the St. Etienne and Loire Company, and
consisted of 660 obligations similar to the preceding
and redeemable between 1851 and 1880; these ob-
ligations have been redeemed to a consider-
able extent. The thirteenth loan was con-
tracted by the Andrezieux and Roanne Company,
and consisted of, 4,000 5 per cent. obligations, issued
at £2O each, and redeemable at the same rate be-
tween 1854 and 1903; these obligations have been
nearly wholly converted or redeemed. The fourteenth
loan was contracted by the Andiezieux and Roanne
Company, and consisted of 1,980 4 per cent. obliga-
tions issued in a similar manner, and to a great ex-
tent redeemed or converted. The fifteenth loan
was contracted by the Rhone and Loire Company,
and consisted of 102,614 4 per cent, obligations
issued at £2O each, and redeemable at £25 each
between 1854 and 1952. The sixteenth loan cone
slated of 63,643 3 per cent. obligations, issued at £l2
each and redeemable at £2O each between 1854 and
1952 ; it should be stated that only 29,201 of these
obligations were issued at £l2 each; the remainder
enabled the company to provide for the cone
versions previously indicated. The seventeenth
loan was contracted by the Great Central
between 1853 and 1857, and consisted of
137,912 3 per cent. obligations redeemable at £2O
each between 1855 and 1954. It should be added
that 131,007 of these obligations proceed from the

'usion of 1857, and were issued by the Great Cen

tral at about £9 3s, each ; the remainder, or
26,936 were issued by the general Paris and Medi-
terranean Company on its own account at the rate
of £l2 each. They change, obligation for obliga-
tion, and number for number, into the eighteenth
and last lean, contracted by the Bourbonnais Com-
pany in 3 per cent. obligations, repayable at the
same price as the obligations of the Great Central.
The number of obligations issued by the Bourbon-
nais was 211,000, which, with the 157,943 obliga-
tions raised by the Great Central, make a total of
368,943, so that the 18th and last loan is of very
respectable dimensions. It will not escape obserd
vation that an immense pyramid of obligations hes
been reared upon the share capital, £13,523,887
having been raised by shares and £52,565,985 by
obligations at the close of 1863. Further, the issue
of obligations is still proceeding, and is expected to
proceed unchecked until 1872, when the immense
number of lines of which the company has under-
taken the construction are expected to be completed,
and when the company will appear before the world
with a capital of somewhere about £90,000,000,an d
3,000 miles of railway under the control of its ad-
ministration !
The vast schemes which the directors and the Go-
vernrnent have matured between them could not be
carried out without the aid of a State guarantee, and
it is not surprising, then, that the greater part of
the obligations issued to an almost interminable ex-
tent by the company are assured by the Trea.,Aii y
4.65 per cent. per annum. The annual charge
yvhicta they involve to the company, interest and re-
placement combined, is estimated at 5.75 per cent.,
ao that the company will still have to sustain about
HO per cent. Further, the State guarantee only
applies to obligations to the extent of £50,200,000,
and vast as this emount iq, it falls far short of the
estimated expenditure which the company will have
incurred by 1872 for 1873, and which is set down
at £90,800,00. Treating the matter en chiffres
ronds —for when you are dealing with millions it
is not worth while to trouble yourself with a few
thousands—it will be seen that the amount raised
by shares (L 13,500,000) leaves the enormous sum
of £77,300,000 to be provided by obligations, of
which £50,200,000 will be guaranteed by the State
to the extent of 4,65 per cent., while £27,100,000
is not guaranteed at all. The guarantee of 4 65 per
cent., leaving a deficit of 1.10 per cent. to be made
good by the company, it follows that the annual
charge of the guaranteed obligations will be
£552,200, and of the unguaranteed obligations
£1,558,250, making an aggregate of £2,110,450,
while £1,350,000 would be required to pay the 10
per cent. upon the shares which the French capita-
lists seem to expect as a matter of course. These
totals, when combined together, m eke £3,460,450 in
all. The State guarantee of 4.65 per cent. on
£50,200,000 of obligations will absorb £2,334,300,
but the State does not of course expect or intend
that this guarantee is to apply to its fall extent,
but relies upon its being, if not wholly covered, at
any rate attenuated by the earnings of the new lines
conceded. To relieve the State of its guarantee, to
cover the fixed charges which the company has to
support out of its own resources, and to pay ten
per cent. upon the share capital, it would appear
that the total profits realiz_d in 1873 must be
somewhere about £5,794,750 ; and as at least
forty per cent. must be allowed for working ex-
penses, the rouge revenue for the year must be
about £10,000,030. In the current year the
earnings of the system will exceed £6,000,000, so
that to place the company in a thoroughly satisfac-
tory position the receipts ought to expand at the
rate of £400,000 per annum during the next 10
years. In 1862 and 1863 the shareholders received
dividends at the rate of 15 per Gent. per annum ;
and it is clear that the company is Assured a large
rate of dividend on its stock for many years to come,
although like everything else in France, the distri-
bution is " organised" and regulated by minute ar-
rangements, which we must describe more in detail,
together with the position of the lines on the old
and new networks, the revenue required, the work-
mg expenses incurred, &e., in a future article.
Meanwhile, it must be a source of pride to every
Frenchman that amid the revolutions and distrac-
tions to which France has been subjected since 1830,
this mighty company—the first concession of which,
that from St. Etienne to Andrizieuz, dates from
Feb. 26, 1823—has been gradually expanding until
the wide extent of territory over which Napoleon
111, exercises his Imperial functions has positively
become too small for it, and crossing the Mediter-
ranean it has planted its foot in Algeria. The French
mind, in the matter of this vast enterprise, has shown
itself, as usual, bold and fertile; at the same time,
there is a complexity and a dependency on Govern..
mental aid in the arrangements made for the de.
velopment :of the undertaking which we cannot
regard with much favour.

A GOOD EXAMPLE.—Thom as Bros dwooci,
owner of the yacht Galatea, and George Fielder, Esq.,
owner of the yacht Julia, have forwarded to the National
Lifeboat Institution a donation of £25, being the result of
a half forfeit, in a match for £5O, between the yachts Julia
and Galatea.
[ADvEunsE3rENT.J.—Holloway's Ointment and Pills.—
All persons afflicted with bad legs, sores, ulcers, and skin
diseases, who from want of means or other reasons, cannot
avail themvlves of surgical treatment, may release them.
selves of their complaints by using Holloway's purifying.
soothing, and healing remedies. In every outward ailment
this wonderful ointment brings about the most beneficial
results by checking inflammation, cleansing ulcerations,
and restoring soundness. Internal pains, rheumatic and
gouty tortures, enlarged joints, scrofulous swellings and
contracted sinews may be overcome by diligently rubbing
this cooling unguent into the shin. In all maladies of un-
usual severity for excessive duration the pills should be
taken interndly to root out the last seeds of the disorder
and to haste in the desired cure.