The Sun.
London, England, 1865-07-03 00:00:00

THE LONDON FINANCIAL ASSOCIATION
(Limited) offer for SALE by Public Tender. £130,00,,
being the whole of the A 'PRIORITY STOCK of the
KETTERING, THRAPSTON, and HUNTINGDON
RAILWAY, entitled under powers conferred by the said
Company's Acts of Parliament to a Perpetual Dividend of
5 per cent. per annum, payable half-yearly out of the
Profits, in preference to the Ordinary" Stock, and ranking
next to the Company's Debentures.
Interest guaranteed by Messrs. Waring for three years,
from Ist July, 1865.
By the following prospectus it will be seen
that the interest on the Debentures is X 3,780
And on the A Priority Stock 6,500

Being together £10,280 annually,
and as the line is to be worked by the Midland Company
for seven years at 40 per cent., a gross receipt of £17,200
per annum will be sufficient to pay interest on the A
Priority Stock as well as on the Debentures.
The coal traffic alone is estimated to produce one-third
more than the above amount, independent of the ordinary
sources of traffic. The A Priority stock is therefore most
amply secured, and presents an eligible investment for
trustees and other parties seeking a security paying a fixed
dividend at a good rate.
With the view of removing any doubt as to the dividend,
and in order to give ample time for the development of
the traffic, Messrs. Waring Brothers guarantee for three
years the interest on the said Priority Shares.
Tenders for the whole, or any portion of the above Stock,
will be received at the offices of the Association, South Sea
House, Threadneedle-street, up to Tuesday, 11th July, at
One o'clock, when the tenders will be publicly opened and
the Stock will be allotted to the highest bidders, provided
the prices offered are not below the minimum, which will
be fixed in the usual manner before the Tenders are opened.
In case of equality of Tenders beyond the amount required
a pro rata distribution on such Tenders will be made.
A deposit of £5 per cent. must accompany each Tender.
The balance to be paid on the 18th July, when the Stock
will be placed in the purchaser's name without expense.
South Sea House, Threadneedle-street, Ist July, 1865.

KETTERING, THRAPAILWSTON, AND HUNTINGDON
RAY.
CAPITAL.

Debentures

£75,600

Priority or A Shares
Deferred or B Shares

. 130,000
~ 100,000

Total £305,600
DIRECTORS.

General ARBUTHNOT, Woodford House, Thrapston,

Chairman.
William Bunce Greenfield, Esq., 59, Porchester-terrace,
Hyde Park, W., Deputy-Chairman.
Thomas Pain, Esq., 22, Great George-street, Westminster,

S.W. . _ .
Valentine Hill, Esq., Kimbolton, St. Neots.

G. B. Bruce, Esq., Westminster-chambers, Victoria-
street, S.W.
SOLICITORS.

Messrs. Redding Townsend and Co., 3, Princes-street,
Westminster.
SECRETARY.
Arthur Lankester, Esq.
COMPANY'S OFFICES.
No. 1, Poet's-corner, Westminster, S.W.

This railway has been constructed in the most substantial
manner by Messrs. Waring Brothers, within the capital
authorised by the Acts of Parliament 25 and 26 Vict., cap.
173, 26 and 27 Vict., cap. 203. It is 26 miles long, running
out of the Midland system at Kettering, touching the Lon-
don and North Western at Thrapston, and the Great
Northern and Great Eastern at Huntingdon, and will be
opened on the ensuing Ist of August.
The total share capital is £230,000 ; of this the A Shares
amounting to £130,000, are entitled, under powers con-
ferred by the Company's Acts, to a priority in dividend of
£5 per cent. in perpetuity, ranking next after the deben-
tures, so that they are substantially preference shares.
Messrs. Waring Brothers guarantee the interest on the A
Priority Shares for three years from Ist July, 1865. By
the Acts of Parliament the liability of the shareholders is
limited to the amount of their subscription in the usual
manner. The B or deferred shares receive all the surplus
after payment of five per cent. to the Priority Shareholders.
The railway traverses one of the richest agricultural
districts of England, in which also iron-stone and clay of
fine quality have recently been developed. It is to be
worked under Parliamentary sanction by the Midland
Company, who, by agreement with the Great Eastern
Company, have powers of running onwards from Hunting-
don by St. Ives to Cambridge, so that a complete and most
direct connexion will be established between the whole of
the Great Eastern system and the manufacturing and miner
ral Midland districts, including Derby, Leicester, Birming-
ham, Nottingham, Sheffield, and the Northern manufac-
turing population. A reference to the map will show the
importance of the line as a connecting link between the
centre and the east of England. The Midland Company
are to work and maintain the lino for 40 per cent. of the
gross receipts during seven years, and for 50 per cent. in
perpetuity thereafter.
The traffic will obviously, therefore, be large. It is be-
lived, indeed, that the transport of coal alone will furnish
a remunerative return upon the capital now offered to
the public. The greater part of that traffic, now going
into the eastern counties by the circuitous route of Peter-
borough, must hereafter go via Huntingdon, as its shortest
and best course. This quantity is estimated at 300,000 tons
a year, which, at the rate of d. per ton per mile, would
yield £24,375 gross, or £14,625 net after payment of work-
ing expenses. The net return on coal, therefore, after de-
duction of £3,780, the debenture interest, would be £10,845.
To pay the dividend on the Priority Shares only £6,500
(beyond the debenture interest) is required ; so that, unless
the anticipations of those best qualified to judge are greatly
erroneous, there would be from the coal traffic alone a net
surplus of about £4,350 annually beyond the dividend on
the A Priority Shares.
And if the general traffic from passengers, merchandise,
cattle, and iron ore should realise only a net amount equal
to that derived from the coal, the Company would have a
clear annual income of £29,000 after deducting working
expenses, whilst the first charges for debenture interest and
dividend on these shares would absorb £10,300 only.
In short, a gross traffic of only £l2 15s. per mile per
week (X 25 per mile being the minimum anticipated by the
most competent railway authorities) would suffice to pay
debenture interest and a dividend of five per cent. on the
A or Priority Shares, after deducting working expenses at
40 per cent.