The Sun.
London, England, 1849-01-23 00:00:00

GENERAL STATEMENT of the POSITION
and PROSPECTS 'of the SOUTH-EASTERN RAILWAY
COMPANY.
The Directors proceed, after mature consideration, to present to

the proprietors of the South-Eastern Railway a General Statement
of ,the position and prospects of the Company. The directors nerd
hardly point out that, In the course of the statement, it will be re-
quisite 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, 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 g' eatest 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 cempay'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-
ment of prosperity barely practicable.
For this the company is indebted, net alone to that justice which
Parliament has, at each successive costly contest, awarded it, or
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 eompany, passed on the 21st of Julie,
1836, wherein it was stated that "this railway would be productive
of great public advantage, by opening a certain and expect' dons 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
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 • • • • • • • • 1 56
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 .. • • .. .. 5 78
The Gravesend and Rochester Line .. _ .. 6 15
making 163 miles and 47 chains of railway. This includes the
Greenwich Railway, 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 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 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 divided 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
tile 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 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
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
140. 2 Shares are: —The Tunbridge and Tunbridge Wells Branch, 5
!titles 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 let of July, 1847; and tae Gravesend and Rochester Line,
miles in length, wilich 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. I 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 inctimbOnt 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 proprle-
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
exPital;.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-
toll 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.

1.1,11.1.••
The Greenwich Railway is held on lease for 999 years, from the
let 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, ani Re!gate Railway is agreed to be
leased in perpetuity from the time of the completion of the works,
'which is to take place in August next. The rent is to be payable
at the rate of five and a half per cent. per annum on the cost, which
is limited to 600,0001. ; the rental will, therefore, be 33,0001. per
annum.

The Canterbury and Whitstable Railway is held on lease for the
term. of 14 years, commencing from the 29th of September, 1844.
The rent payable for the remainder of the term is 3,0001. per annum.
In addition to interest on the mortgage debt, amounting to 44,221/ ,
and which is 2,2111. is. per annnm. The South-Eastern Railway
Company has the option, before the 29th September, 1812, of par-
chasing this line on payment of 60,600/. as the purchase money, and
on assuming the mortgage liability of 44,2211.
The South-Eastern Railway Company have relaid this line with
heavy rails since it was leased to them, and they have removed the
stationary engines with which it was worked, in order to substitute
locomotive 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
directors think it will probably be for the interest of the company 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 • • • • • • • 60
The Ashford, P.ye, Hastings, and St. Leonard's Branch .. 28 24
The Branch from Rye to Rye Harbour • • • • • • 170
The Tunbridge Wells and Hastings Line, and Branch to-
wards Rye
The Reading, Guilford, and Reigate Line • •
Of the Reading, Guilford, and Reigate Railway 6 miles 40 chains
are to be made by the South-Western Railway Company ; and for
the use of this part the South• Eastern Railway Company will have
to pay a proportionate toll.
The length, therefore, 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-
thorised by the Company's Act of Parliament is 9,115,3751.
The amount of capital expended by the company to the let of
January, 1849. is 7,890,5321., as shown in Statement B. ; and it will
be seen that of this amount 6,649,305/. has been paiii up by the pro-
prietors, and 1,201,2271 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.

31 14
45 68

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.

The amount of capital that will have to be expended to complete
these works, to pay fur 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 thissamount of saving of expenditure
will be effected by the revision and alteration that has been made of
the works, and the reduction, that has taken place In the price of
labour and materials.

It is estimated that a further sum of 108,9001. 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
from the Ist instant, will be 1,241,6241.
The North Kent line will, it is expected, be open for traffic by the
Ist 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
in 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
Its 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
!lerge portion of the Mare expenditure on revenue account will be
Incurred there.
The coustraction of the Sonth-Eastern Railway Company's Coast
Lin from Ashford to Rye, Hastings and St. Leonard's, where it
•.!;nIS the London, Brighton, and South-Coast Railway Company's
;last' line, making the coast line of communication from Ramsgate,
Cud-u Deal, Dover, Folkestone and the other ports of Kent to Portsmouth
apltine westward complete, is finished between Ashford and Rye ;
e land is in the company's possession, and the works will be
rned with as speedily as possible.
pleteeffnln.pany were pledged to Parliament and the public to cora-
cle. The unreasonable
by the autumn of 1848 ; but this they were unable to
other4arreasonable tenders made for executing the works, and
tene).;;;alolties, caused the delay; for of the sum of 465,0001., saved
line ver the works in progress, 150,0001. will be saved on the
The ove, en.Ashford and St. Leonard's.
run adea,"„„erinlPortant work, of which the heaviest portions are in
lintaind,;`, lave is the Tunbridge Wells and Hastings line. The
the compan eeeeled with as fast as the financial circumstances of
The Ef„,,Y Will permit.
slate the" opening J.:llerly 0,7,..1nigS traffic, which, it must be femembered, came for-
South-Eastern Hallway at Staplehurst, has been lost to
27th of of the Brighton, Company's Hastings Pile on the
age", a June, 1846, but the larger proportion of this traffic will be
eq'llred on the completion of the South-Eastern Company's
gs line
-oe rate,
tloual
outi urees which aro at the disposal of the company to meet
i!3' required for the completion of the works, for the add'.
win be locomotive engines and carrying stock, the interest that
and thpeaY_able to the proprietors of the No. 3 and No. 4 Shares,
Itssets, r.,.._wortgage debt, are set forth in the statement of
They '"`eoufx.ed C.
Itindry credelnited, on the Ist instant, of—Cash in hand, 104,747/. lea;
'4llB to be
4113, period Ite, 14,8121. 53. Id. ; calls In course of receipt, 125,160/. ;
reortgage
pnlo ado, 732,657/. ; unissued shares, 141,7601. ; unexercised
wen, 231,3251. ; which latter sum can be capitalized at
Of choseny the proprietors as can in like.manner the sum
12it.li-zer;‘*a.. 0'n.,11,e porde!' of the present mortgage debt not yet ca-
,'Y the creat ,eYend these SUMS the company has power to raise,
'rhe sur *1 new shares, 340,000/.
es thus
253 Ms lend
*. 01. and other property of the company is valued at
h '"'ung the aggregate of assets 2,296,882/ 3s. Id.
,suy their • been ,•hown that the company are already
..115,37-. Acts of Parliament empowered
DI. for thy. to raise in the aggregate
vsr lineof s execution of their works, and to make and open all
"Luvray, exclusive of their line between Gravesend and