The Sun.
London, England, 1853-04-14 00:00:00

NORTH OF SPAIN RAILWAY.
Bayonne, Iran, St. Sebastian, Tolosa, Rilboa, Vitoria. Miranda,
Briviesca, Rurgcs. Palencia, Vallado:id, Avila, L'Escurial, Madiid.
Capital 29,923,000 piastres. 315,000 t bares of 95 piastres each for
Spain, POO francs for France, or 201. for England. Deposit 19 piastres
in Spain, 11.0 f anus in France, or 41. in England. One fifth of the
capital has been subscr bed in Spain, two-fifths in France, and two-
fifths remain for appropriation in England.
President-1 he Duke De Riansaim
)tankers in Paris—Messrs. Rothschild, Paris.
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Bankers in London—Messrs. 51astermail, Peters, and Co.; the
London and Cennty Bank.
Tankers in Itordeaux-3tessr3. Ezpeleta et Fi's.
Agents in London--31esSrs. C. Devaux and Co., 62, King William-
street, ity ' • to a hom applications for ghat a may be made.
. The North of Spain Railwag is about 685-kilometres, or 427 miles
long, ine'uding .he branch to the port of Bilboa.
The pr, je, tors have already obtained the concession for 99 years,
of the Sp.mish portion. which traverses a distance of 650 ki ometres,
or 406 miles. They have paid 750,000 piastres (157,0001.), the caution
money, and they are in actual treaty with the French Government
for the section from Bayonne to the sp.tnish frontier ; the length of
which is only 35 kilometres' or 21 miles.
The Spanish Government guarantees to the Company, en a maxi-
mum capital of 30,1300,000 piastres (6,315,7890, a min mum interekt
of 7 per cent.. inc'uding 1 per cent. to be applied to a sinking fund.
The provinces and comp tines traversed by this railway, as well as
the contigtious„provinces and communes, have agreed to share with

the • overnment the responsibility of this guarantee.
The Spanish Government, perceiving the great advantaze which
must result to the public revenue by the encouragement of railways,
which oevelop the vallous sources of national wealth, have faithfu ly
adhered to the guarantees they have given ; and even in cases where
companies have not been able to perform their engagements, the
Government has returned to such companies, whither native or
foreign, the entire sums paid as cautonary deposit.
In order to secure to the shareholders in the North of Spain Rail-
way the fill value of the guarantee of 6 per cent., and 1 per cent.
sinking fund. a general contract has been already made for the pur-
chase of the land, the construction of the whole line, and for rolling
sto_k, plant, &c., according to the requirements of the Government,
at a price witlMl the guaranteed caiital. The contractor has dc po-
sited 500,000 piastres or 105,qe31., as a guarantee for the due fulfil-
ment of the contract, and is to leave 5 per:cent. out of each certiflc to
in the hands of the directors as a further security, until such reserves
shall amount to the sum deposited.
The contract price cove's all expenses incurred in surveys and
otherwise up to the present time, and leaves a fund of about 10 per
cent. of the capital in the hands of the directors, to meet the general
expenses of the undertaking, and to pay interest at the late of 5 per
cent. per annum to the shareholders during the course of construc-
tion.

The North of Spain RaUway connects Madrid with several provin-
cial chief towns, torming points of convergence of various high rods,
such as Witor"a, where •even me •t. Burgos, Valladolid, and Avila,
are also the et litres of similar stratms of traffic. _ _ _

The Eouthof ainßailway• traverses most important industrial
districts, such as the provinces of Bhcay, Guipuzcoa, and Alava. It
runs also through districts rich in wools, wines', and corn—districts
producing much more than they cm either consume, or at pnsciit,
export ; ani which, to galn access to the home and foreign markeis,
need only those ,acilitits of economical trawpoit which this railway
w:1! provide.

The No th of Spain Railway wid establish a thorough communi-
cation b tween the Atlantic and the Mediterranean. Starting
from Bayonne and tiiboa it will proce: d through Irun, St. Sebastian,
To osa, and Vitoria to Miranda At Miranda it reaches the river
Ebr,, which is now being canalised doe n to the port of Alfaques,
°lithe shores of the meriderrancan. At Madrid also it will be placed
in communication with the great line of railway now in coat se cf
constrin-toa betwet n the capital and Valencia.
Another very important feature of this great undertaking is that
at Valladolid it will reach the river Douro, which runs to Opo• to ;
and lastly, at Madrid, it wilt be brought into connexion with the
Aratjuez Railway, which wilt be confirmed first to Badajoz to meet
the Portuguese line to Lisbon, mat to Cordova, and thence to
Seville and Cadiz.

To estimate the advantages which such data promise to the North
of Spain Railway, the distinction Ntween spanish, English, and
French railways must be kept In view.
First,—The cost of construction is greater in England or France,
because land is of a higher value than in Spain. Labour is much
dearer in En,;land and in France than in Spain. Rails a'so and
engines bear in France a pike somewhat e xtravagantly high, in
consequence of the protection given to home industry, wht st into
Spain they are imported from England free of duty..
Seconclq , —The return from railways in England or France are of
much slower development than in Spain, because in the former
countries railweat s have to compete with already existing and long
established means of conveyance, whilst in Spain railways, from the
moment of their opening, absorb the whole of the tragic.
The returns are less profitable in England and France than in
Spa; n, because they can be secured only by incessant reductions
upon the tariffs of the numerous competing means of transport;
whist in Spain the tniffs will, to a certainty, be largely remune-
rative, since they can reasonably he fixed at 50, 100, and even 200
per cent. above the Eugl sh ant French tariffs, and still remain
much cheaper than the old means of transport, and be accordingly
appreciated.
These distinctions are well foundeJ, and have received cotifitma,
tlon from the results of all the existing railways in Spain; hence

the Railway Company from Valencia to Alcira has teen compelled,
after a few months' traffic, to double the rolling stock, which bad
been estimated sufficient for sevtral years. Upon the line from
Langrco, in the Asturias, the exorbitant tariff of 21 centimes per
kilometre and per ton sufficed to put down all competing means of
transporting the coal of the basin or s,ama to the port of Gij:m ; and,
lastly, the ;ine from Madrid to Aranjuez, only 61 kilometres kng,
and which runs to no centre of production or commerce, had in
18.52, the first year of its working, a traffic of 300,000 passengers,
and 110,000 tons of merc andise.
'the estimat,.s of the receipts to be exrected from this line have
been framed under the special superintendence of the provincial,
consular, and municipal corporations of Biscay, end establish upon
the existing traffic an immediate return of 5,1,0,000 Oast, es, or
1,08 ,210/., which, after deducting 45 rer cent. for won ing ex-
',miser, leaves a net profit upon the capital of the Company of 10
per cent. This estimate, however, is wholly irrespective of the in-
crease which impr ived means of transport invariably ensures.
The Board of Direction will be nominated in the statutes of the
C mpany, and will consist of eight Spael.,,h, four French, and three
English Directors. Three French Directors have been appointed,
viz.:—

M. Ardonin, banter, Paris,
M. De Grimaldi, Paris, and
M De Ez,eleta, Ellis and Bordeaux.
London, April 9, 1853.

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FORM OF APPLICATION FOR SMARM
North of Spain Railway Company.
To Bfessrs. C. Devaux and Co.
Gentlemen, —I request you to allot me shares in the above
undertakinz, and I hereby agree to accept the said shares, or any
less number you may allot me, and to pay the sum of V. on each
share ahottea, at the time to be specified in your letter of allotment.
Dated this day of 185
Name in fu11.................
Ite•ider.ce ••••••••••••••••••
• Profession.•..• •• •.....