The Sun.
London, England, 1849-01-30 00:00:00

GENERAL STATEMENT of the POSITION
and PROSPECTS of the SOUTII-EASTERN RAILWAY
COMPAN P.
The Directors proceed, after mature consideration, to present to
the proprietors of the South-Eastern ILtilw..y a Geicral Statement
of ;the position and prospects of the Company. The directors need
hardly point out that, in the course of the stweinent, it will be re-
qnisite for them to base upon estimates the conclusions at which they
arrive as to the amount that is yet required to be expended on ca-
pital account, whilst the return of revenue, which that outlay, com-
bined with the capital already expended, wilt 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 g eatest possible accuracy, and have availed
.hernselves 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 be en for the policy adopted in the management
of the compay's affairs in times of extraordinary difficulty and emer-
gency, to treat the whole subject with impartiality.
Under their management it has been the good fortune of the com-
pany to escape the evil effects of competition, imprudent amalgama-
tions, and a reduction of tolls whieh would have made the attain-
'Vent of prosperity barely practicable.
For this the company is indebted, not alone to that justice which
arliament has, at each successive costly contest, awarded it, or to
a series of happy accidents in the rejection and suspension of the
Bills 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 company, passed on the 2lst of Jane,
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 the
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 consideration, 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 traffic, 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
tlAffle 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 Line • • • • • • • • .. .. 3 60
The Maidstone Branch • • •• •• •• •• •
•• 9 77
The Tunbridge and Tunbridge Wells Branch .• 5 22
The Ashford, Canterbury, and Ramsgate Branch .. .. 30 10
The Ramsgate and Margate Branch .. .. 3 56
The Minster and Deal Branch . 8 67
The Canterbury and Whitstable Line • • •• •• • • 578
The Gravesend and Rochester Line .. • • .. .. 6 15
Making 163 miles and 47 chains of railway. This includes the
Greenwich itailway, and the Canterbury 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 light 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
Rill be well to call to mind the relatioa, of the different capitals to
each other, and-their rlghta'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 11th 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 existing
shares of the company, next following the opening for traffic of the
latest in point of execution 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-
lilting shares of the company, next following the opening for traffic
Of the latest in point of execution of the following new lines 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
1411 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
2 dhares are : —The Tunbridge and Tunbridge Wells Branch, 5
Miles in length, which was opened on the 20th of September, 1845 ;
the Minster and Deal Branch, 1X miles in length, which was opened
on the Ist of July, 1847 ; and the Gravesend and Rochester Line,
6 Miles in length, w,iich was opened as a double line on the 23d
01 August, 1847.
A ree,ard to these facts, which have always been before the pro-
Meters, 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
tram,. 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,
en Which the average payment will be 321. I 9s. per share ; but the
exigencies
of the money market, which defied all calculation, made
t incumbent on the directors, le 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 live 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 iie 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
Railway 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, ana Reigate Railway is agreed to be
leased4is,, in perpetuity from the time of the completion of the works,
is to take place in August next. The rent is to be payable
i" the rate of five and a half per cant. per annum on the cost, which
s limited to 600,0001.; the rental will, therefore, be 33,0001. per
annam.
t The Canterbury and Whitstable Railway is held on lease for the
'rt of 14 years, commencing from the 29th of September, 1844.
The
inPayalee for the remainder of the term is 3,0001. per annum.
~- addition to interest on the mortgage debt, amounting to 44,221/ ,
awhich is 2,211/. Is. per annnm. The South-Eastern Railway
eli:',ParlY has the option, before the 29th September, 1862, of pur-
e7,"'ag this line on payment of 60,8001. as the purchase money, and
-„,a,ssuining the mortgage liability of 44,2211.
4""e Soutb-Eastern Railway Company have relaid this line with
heavy rails since it was leased to them, and they have removed the
1 acel•TTlarY engines with which it was worked, in order to substitute
h°„,,tive power for the purposes of the traffic ; and as coke works
been- also been built by the company at Whitstable, and money has
dire_ 'xPended by them in the improvement of the harbour, the
exercise
think it will probably be for the interest of the company to
-14eise their option of purchase.
st e length of the lines of railway and branches in course of con.
rae.tion by, and to he leased to, the South-Eastern Railway Cont-
i,lt.. is 133 miles, viz. :

hheelileisT
North
Miles. ch.
ahilvKiteennuttd, Greenwich,
from. London. to Woolwich, Dartford,
Greenwich,Bricklayers' Arms June
-
60
28 24
Aelltifaoirhdv,aßYye,.ilastin.g.s, and St. Leonard's Bran —ch
Branch from Rye to Rye Harbour ......1 70
Ile Tunbridge Wells and Hastings Line, and Branch to-
-31 14
Tlarde Ry,
e Reading, Guilford, and Reigate Line .. • • • • 45 68
°f the Reading, Guilford, and Reigate Railway 6 miles 40 chains
111;e to be made by the South-Western Railway Company ; and for
toe u" of this part the South-Eastern Railway Company will have
. y a proportionate toll.
.dill Thelength, therefore, of the line of railway and branches which
Ifitimately be used for traffic by the South-Eastern Railway
PanY will be 296 miles and 47 chains
t,
;11,1.4 be seen in the Statement .1. !diet the. capital already au-
bY the Company's Act of Parliament is 9,11•5,375/
Jati '" amount of capital expended by the company to *the . let of
bee 4 1849, is 7 890,5321., as shown in Statement B. ; and it will
prien that of this' emount 6,689,305/. has bee;; paid up by the pro-
"ira, and 1 201 227/ has been advanced to them on mortgage,
M r
strained due at that date.
The Works in progress of construction are :
the "e,enlargement and division of the London-bridge station, and
~Nyldening or the Greenwich line.
ri,r`ituve North Kent line, from London to Woolwich, Dartford, and
yesena.
T„,b,:a North Kent, Greenwich, and Bricklayers' Arms Junction line.
The Ashford locomotive station and works.
br` lie Ashford Rye, Rye Harbour, Hastings and St. Leonard',
aneb and
The T
unbridge Wells and Hastings line.
the r
land not yet in the company's possession,
sem;
tele 'ons, permanent materials. and for the erection of the electric
,iretph on the new lines is 1,132,724/.
1,-tti:e
°r i 8 estimates for these works are less by 465,000/. than the prices
inal estimates and this amount of saving of expenditure
the effected by the revision and alteration that has been made of
let,,,`'‘ and matl•rks, and the redaction that has taken place in the price of
~. erials
that a further sum of 108,9001. will eventually have
tooe expended to increase the locomotive ngine and carrying stock,
for to(St the requirements of the traffic of the new lines when opened
fro:11
; sonstant, that the total amo 1
241unt of expenditure under these heads the ist i will be 624/.
I,,,ihe North Kent line will, it is expected, be open for traffic by the
of July, amough the works have not all been pushed forward as
the directors considered they had a right to expect.
IIIt theenlargemo ent o for theme
off the London-bridge station must be completed
pening of the North Kent line ; and it is clearly of o•paortance to provide proper station accommodation for the traffic
The
and of the other South-Eastern lines and branches.
411„he North-Kent, Greenwich, and Bricklayers' Arms Junction
, Which will connect the Bricklayers' Arms station and its popu-
lhayileibboarhood with Greenwich and the North-Kent Railway,
proci be opened in three mouths; and will probably be the means of
its e4eing a larger return of traffic to the company, compared with
existing
than any other of the works, as it will connect important
,gng filles with each other.
deert"ie.. completion of the Ashford locomotive station and works is
414 ed to be of great consequence to the welfare of the company, as
ge D'artion of the future expenditure on revenue account will be
Orred there
The eon •
fl.O struction of the South-Eastern Railway Company'sw where
easitt
Join, thnt Ashford to Rye, Hastings and, St. Leonard's, h
es,°aatliLimndon, Brighton, and South-Coast R.ailway Comptry s
"881 t,, Making the coast line of communication from Ramsoate,
10,4 over, Folkestone and the other ports of Kent to Portsmouth
411 the 6 westward complete, is finished between Ashford and Rye ;
Dre_ealand is in the company's possession, and the works will be
cedis
leiv,:tehbays speedily as possible.
Aleeee
thraPany Were pledged to Parliament and the public to com-
the autumn of 1848 ; but this they were unable to
otherl,,t unreasonable tenders made for executing the works, and
Ifee,,;ltuleulties, caused the delay; for of the sum of 465,0001., saved
lin- ,'IIIY over the works in progress, 150,000/. will be saved on the
zueetoween Ashford and St. Leonard's.
444Latnhter important work, of which the heaviest portions are in
.e ed state. Is the Tunbridge Wells and Hastings line. The
r average a comparatively small cost per mile, and
the should be proceeded with as fast as the financial circumstances of
4,,'OraPany will permit.
ra:".,_eillastings traffic, which, it must be remembered, came for-
ce nthteheopSeonuintha-Eofasttheernt Railway at Staplehurst, has been lost to
3's Hastings' line on the
._ith of June, 1846, but the lagrgerliproopinort. Company's
of this traffic will be
,atain acquired on the completion of the South-Eastern Company's
,astings line.
t,The resources which firs at the disposal of the company to meet
1.7‘ outlay required for the completion of the works,
for the addi.
interest that
. 4 Shares,
Zal locomotive engines and carrying stock, 4.,`,`1 be payable to the proprietors of the No. 3 mitt
the mortgage debt, are set forth in the statement of
-.3ets Marked C.
The
sn,„ Y consisted, on the Ist instant, of—Cash In hand, 104,7471 is ;
oredits, 14,8121. Is. Id. ; calls in course of receit 125 160 s
unissued shares, 141,760/.
blo t Made, 732,657/. ;
;p u'nexerci ;
as;bgagis powers, 231,325/. ; which latter sum can be capitalizeds:it
Or a:3%10d clnaen by the proprietors, as can in like manner the sum
Alta 601., he portion of the present mortgage debt not yet ca-
by 6,ed ; and beyond these sums, the company has power to raise,
The
creation of new shares, 340,0001.
241.41'xPlus land and other property of the company is 'rallied at
bf h '__lnaking the aggregate of assets 2,296,882/ 38. Id.
eb44l lane been shown that the company are already empowered
154,, several Acts of Parliament to raise in the aggregate
etn:..l. for the execution of their works, nal to make and open all
Of ralltray, exclulYe of their lies I,otvreen Gravesend rind

• • 23 4