The Sun.
London, England, 1849-01-17 00:00:00

ENERAL STATEMENT of the POSITTON
71- and PROSPECTS of the SOUTH-EASTERN RAILWAY
COMPAN Y.
The Directors proceed, after mature consideration, to present to
the pr, prietors of the South-Eastern Railway a Generel Statement
of the position and prospects of the Comeany. The ':rectors need
har,lle- point out that, in the course of the sta•ement. it will be re-
qaisi it for them to base upon estimates the conclusions at which they
as to the amount that is yet required to be expened on Ca-
pital account, whilst the return of revenue, which that outlay, corn-
lihie,l with the capital already expended, will produce, may, after
the views of the directors have been stated, be calculated by each
proprietor himself.
And although the directors have delayed the publication of the
statement, to ensure the greatest possible accuracy, and have availed
themselves of theirlexperience of estimates of the cost of works, they
still feel that. not any criticism, but the future alone, can test the
correctness of their views.
It will be the study of the directors, interested as they are, and re-
sponsible as they have been for the policy adopted in the management
of the cempey's affairs in times of extraordinary difficulty and emer-
gency, to treat the whole subtect with impartiality.
Under their management it has been the good fortune of the com-
pany to escape the evil effects of eompetitioe, imprudent amalgama-
tions, and a reduction of tolls which would have made the attain-
ment of prosperity barely practicable.
Fur this the company is indebted, not alone to that justice which
Parliament has, at each successive costly ceatest, awarded it, or to
a series of happy accidents in the rejection and suspension of the
hills it had promoted, but also to the perseverance with which ag-
gression on the company's just rights has been resisted by the pro-
prietors.
These rights were recognised in the preamble of the first Act of the
Legislature incorporating the eompany, passed on the 21st of June,
1836, wherein it was stated that "this railway would be productive
of great public advantage, by opening a certain and expeditious com-
munication to Dover and other towns and districts on the south-
east coast, and also of facilitating the communication between Lon-
don and the Continent of Europe ;" and it is matter for deep regret
that, to preserve the rights thus recognised as attaching to tile
owners of the capital embarked in an adventure admitted to be of
great public advantage, so enormous an expenditure in Parlia-
mentary contests should have been necessary ; although at the same
time it must be acknowledged, taking every surrounding circum-
stance into consideratien, that in the end these contests, of which
the directors believe there is no likelihood of a repetition, have been
attended with a not unfavourable result.
The directors are satisfied that, with reasonable skill and eco-
nomy in the management of the Company's affairs, there is every
ground for belief, that on the completion of the South-Eastern lines
of Railway In progress of construction, and a fair development of
their traffic, of the Continental trallic, and of that of the lines al-
ready in use, the company will possess sources of revenue adequate
to secure to the proprietors, permanently, a satisfactory dividend.
The length of the lines of railway and branches now used for
traffic by the South-Eastern Railway Company is as follows:

Miles ch.
.. 87 25

The Main Line from London to Folkestone and Dover
The Folkestone Harbour Branch .. .. • •
The Bricklayers' Arms Branch
The Greenwich Lice • • .. • • • . • •
The Maidstone Branch .. • • .. • •
The Tunbridge and Tunbridge Wells Branch
The Ashford, Canterbury, and Ramsgate Branch .•
The Ramsgate and Margate Branch ..

1 56
3 60
9 '77
5 22
30 10
3 56

The Minster and Deal Branch • • • •
The Canterbury and Whitstable Line ..

The Gravesend and Rochester Line .. 6 15
making 163 miles and 47 chains of railway. This includes the
Greenwich Railway, and the Caaterbary and Whitstable Railway,
held on lease, and also 13 miles and 22 chains of the Brighton Rail-
way' being a portion of the distance between London and Reigate,
over which the South-Eastern Railway Company, by agreement with
the London, Brighton, and South Coast :Railway- Company, has a
right to run toll free.

And it should be stated that the London, Brighton, and South
Coast Railway Company has the right to run toll free over so much
of the Greenwich Railway as forms part of the main line to Reigate,
over the six miles of the South-Eastern Railway between Croydon
and Reigate, and over the Bricklayers' Arms Branch.
Before proceeding to treat of the prospects of the Company, it
will be well to call to mind the relation of the different capitals to
each other, and their rights to the earnings now in course of receipt.
And, to do this, it must be stated that in accordance with the
terms of the resolutions passed by the proprietors on the I 1 th of
September, 1845, no dividend is payable in respect of any of the new
shares then created, viz., the No. 3 Shares, until six months after the
day to which a dividend has been declared on the then taisting
shares of the company, next following the opening for traffic of the
latest in point of executions of the following lines of railway and
works authorised by the several Acts passed during the preceding
Session of Parliament, viz.:—
The Branch Railway from Tunbridge to Tunbridge Wells.
The Branch Railway from Minster to Deal, and Extension of the
Canterbury, Ramsgate, and Margate Railway.
The Branch Railway from Ashford to Hastings, and

The widening of the London and Greenwich Railway.
And all profits accruing from any of the new lines wholly or par-
tially opened before such day, are divisible among the proprietors of
the then existing shares.
And also that no dividend is payable in respect of any of the new
shares then also created, viz., the No. 4 Shares, until six months
after the day to which a dividend has been declared on the then ex-
isting shares of the company, next following the opening for traffic
of the latest in point of execution of the following new noes of rail-
way and works, viz.:—
The railway from the London and Greenwich Railway to Graves-
end,
The railway from Tunbridge Wells to Hastings,
The railway from the town of Rye to Rye Harbour, and
The additional station at Ashford,
to be constructed by means of the additional capital to be raised by
the same No. 4 Shares ; and that all profits accruing: from any of
the new lines, wholly or partially opened before such day, are divi-
sible among the proprietors entitled to share the profits of the other
lines and works of the company.
So that, according to the resolutions referred to, until all the
works now in progress are completed, the holders of the Shares
then existing, viz., the original and the No. 1 and No. 2 Shares, reap
advantages beyond those earned by the specific capitals upon which
the dividend is payable.
The branches which have been opened for traffic and contributed
their earnings to the advantage of the original and the No. 1 and
No. 2 Shares are : —The Tunisridge and Tunbridge Wells Branch, 5
miles in length, which was opened on the 20th of September, 1845 ;
the Minster and Deal Branch, 1 miles in length, which was opened
on the Ist of July, 1847 ; and the Gravesend and Rochester Line,
6 miles in length, which was opened as a double line on the 23d
of August, 1847.
A regard to these facts, which have always been before the pro-
prietors, will sufficiently evince how far they have affected past di-
vidends.

It was not contemplated that any benefit would be given to the
holders of the No. 3 and No. 4 Shares until the lines of railway and
works for which those capitals. were created had been opened for
traffic; those shares were issued at 30'. per paid-up share, to be
eventually on a par with the original and the No. 1 and No. 2 Shares,
on which the average payment will be 321. 19s. per share ; but the
exigencies of the money market, which defied all calculation, made
it incumbent on the directors, in order to insure the prompt payment
of the calls on the No. 3 and No. 4 Shares, which was of vital im-
portance to the Company, to call upon the proprietors to empower
them to pay interest at the rate of five per cent, per annum out of
capital, until the holders of the No. 3 and No. 4 Shares should be-
come entitled to dividend. This power was granted by the proprie-
on the 18th of February, 1847.
Whilst the directors confidently submit that this measure, so au-
thorised and sanctioned by the propriet.rs, was dictated by sound
Policy to meet the unequalled difficulties of the times, it is obviously
desirable for the company to terminate the payment of interest out of
capital, which necessity alone justified, by proceeding vigorously to
complete the works, and thereby to render the whole of the capital
eXPended productive.
It will be well, before proceeding further, to remind the proprie-
tors of the terms on which the Greenwich Railway, the Reading,
Guildford, and Reigate Railway, and the Canterbury and Whitstable
hallway are held by the South-Eastern Railway Company.
The Greenwich Railway is held on lease for 999 years, from the
Ist of January. 1845. The rent payable this year is 40,0001., and it
Will increase at the rate of 1,0301. per annum until the year 1854,
When the maximum yearly rent of 45,0001. will be payable.
The Reading, Guildford, and Reigate Railway is agreed to be
leased in perpetuity from the time of the compl.ton of the works,
Which is to take place in August next. The rent is to be payable
at the rate of five mad a half per cent. per annum on the cost, which
is limited to 600,000/. , • the rental will, therefore, be 33,0001. per
annum.

term of and Whitstable Railway is held on lease for the
Vir rent °I. 14 Years, commencing from the 29th of September, 1844.
PaYah'e for the remainder of the term is 3,0001. per annum.
in addition to interest on the mortgage debt, amounting to 44,2211 ,
and which is 2,211/. ls. per annum. The South-Eastern Railway
„,, Company has the option, before the 29th September, 1812, of pur-
chasing this line on payment of 60,0001. as the purchase money, and
on assuming the mortgage liability of 44,2211.
_ The South-Eastern Railway Company have relaid this line with
n
heavy rails since it was leased to them, and they have removed the
stationary engines with wich it was worked, in order to substitute
3conlotive Power for the purposes of the traffic ; and as coke works
have also been built by the company at Whitstable, and money has
been. expended by them in the improvement of the harbour, the
,erectors think it will probably be for the interest of the c,,mpany to
exercise their option of purchase.
The length of the lines of railway and branches in course of con-
struction by, and to be leased to, the South-Eastern Railway Com-
pany, is 133 miles, viz. :

Miles. ch.
The North Kent line from London to Woolwich, Dartford,
and Gravesend • • • • • • • • • • 25 4
The North Kent, Greenwich, and Bricklayers' Arms Junc-
tion Railway • • • • • • • • • —GO
The
Ashford PVA Hastino's St. Leonard's Branch .. 28 24
The --o•
Branch from Rye to Rye Harb0ur......1 70
The Tunbridge Wells and Hastings Line, and Branch to-
wards Rye • •

• 31 14

Ile Reading, Guilford, and Reigate Line .. • -
Of the Reading, Guilford, and Reigate Railway 6 miles 40 chains
re to be made by the South-Western Railway Company ; and for
he use of this part the South-Eastern Railway Company will have
to pay a proportionattoll.
The length, therenie, of the line of railway and branches which
Will ultimately be used for traffic by the South-Eastern Railway
Company will be 296 miles and 47 chains.
It will be seen in the Statement A. that the capital already au-
The b the Company's Act of is 9,115, 375/.
amount of capital expended by the Parliament company to the Ist of
January, 1849, is 7,890,5321., as shown in Statement B. ; and it will
be seen that of this amount 6,689,3051. has been paid up by the pro-
prietors, and 1,201,227/. has been advanced to them on mortgage,
And remained due at that date.
The works in progress of construction are :
The enlargement and division of the London-bridge station, and
the widening of the Greenwich line.
The North Kent line, from London to Woolwich, Dartford, and
Gravesend.
The North Kent, Greenwich, and Bricklayers' Arms Junction line.
The Ashford locomotive station and works.
The Ashford, Rye, Rye Harbour, Hastings and St. Leonard's
branch, and
The Tunbridge Wells and Hastings line.

.. 45 68

The amount of capital that will have to be expended to complete
these works, to pay for the land not yet in the company's possession,
for stations, permanent materials, and for the erection of the electric
telegraph on the new lines is 1,132,7241.
The estimates for these works are less by 465,0001. than the prices
in the original estimates, and this amount of saving of expenditure
'Will be effected by the revision and alteration that has been made of
the workifF and the redaction, that has taken place in the price of
labour and materials.
It is estimated that a further sum of 108,900/. will eventually have
to be expended to increase the locomotive engine and carrying stock,
to meet the requirements of the traffic of the new lines when opened
for traffic ; so that the total amount of expenditure under these heads
flora the Ist instant, will be 1,241,6241.

The.coithkent line will, it is expected, be open for traffic by the
let of July, although the works have not all been pushed forward as
the directors considered they had aright to expect.
The enlargement of the London-bridge station must be completed
la time for the opening of the North Kent line ; and it is clearly of
importance to provide proper station accommodation for the traffic
of this and of the other South-Eastern lines and branches.
The North-Kent, Greenwich, and Bricklayers' Arms Junction
line, which will connect the Bricklayers' Arms station and its popu-
lous neighbourhood with Greenwich and the North-Kent Railway,
may be opened in three mouths ; and will probably be the means of
Producing a larger return of traffic to the company, compared with
Sts cost, than any other of the works, as it will connect important
existing lines with each other.
The completion of the Ashford locomotive station and works is
deemed to be of great consequence to the welfare of the company, as
a large portion of the future expenditure on revenue account will be
Incurred there.
•The construction of the South-Eastern Railway Company's Coast
-I,lne from Ashford to Rye, Hastings and St. Leonard's, where it
3_orns the London, Brighton, and South-Coast Railway Company's
!„,-,:east' line,: making the coast line of communication from Ramsgate,
Deal, Dover, Folkestone and the other ports of Kent to Portsmouth
aad the westward complete, is finished between Ashford and Rye ;
all the land is in the company's possession, and the works will be
proceened with as speedily as possible.
p eTt et
mpany were pledged to Parliament and the public to corn-
do. The line by the autumn of 1848 ; but this they were unable to
unreasonable tenders made for executing the works, and
other difficulties, caused the
generally over the works delay
; for of the sum of 465,0001., saved
line between Ashford and Leonard's.o
astProgress, 150,0001. will be saved on the
The other important work,
is the Toobridwhich the heaviest portions are in
an advanced state,
ge wells and Ilastings line. The
Xemainder will average a
outcomparatively small cost per mile, and
Should be proceeded with
the company will permit. a the financial circumstances of
The Hastings traffic, which, it must 1)
iremembered, came for-
tnerly on the South-Eastern Railway at stae 9urst, has been lost to
soliastings line on the
lt since the peeingo ofthe Brighton CompaPo
this traffic will be
7th of e but the larger proportidi
_again acquired on the completion of the South-Eastern Company's
idastings line.
eo,rany to meet
The resources which are at the disposal of the
:izterest that
"the outlay required for the completion of the works, for the addi•
tonal locomotive engines and carrying stock, the
'Will be payable to the proprletors °lithe No. 3 and 4 Shares,
and the mortgage debt, are set forth in the statement of
assets, marked C.
~,They consisted, on the Ist instant, of—Cash in hand, 104,7471. lqs•
calls to
credits, 14,8121. ss. ld. ; calls in course of receipt, 125,160/.
to be made, 732,657/. ; unissued shares, 141,7601. ; unexercised.
tnor
a tZage powers, 231,325/. ; which latter sum can be capitalized at
of 33,0501.
chosen by the proprietors, as can in like manner the sum
ca-
pitalized the porion of the present mortgage debt not yet ca-
b„ d 1 and beyond these sums, the company has power to raise,
-T the creation of new shares, 340,000/.
zlhe.. surplus land and other property of the company is ',relied at
''4o/., making the aggregate of assets 2,296,86. 35. „b3rltthhelrs thseuysebraeelnAshown that the company are already empowered
9,115,.
_Acts of Parliament to raise in the aggregate
Attic Enosdp 4 for the execution of their works, and to make and open all
of railway, exclusive of their line between Gravesend and