The Sun.
London, England, 1849-01-25 00:00:00

erl F:NERAL STATEMENT of the POSITION
Nk. 7- and PROSPECTS of Utz SOUTII-T:ASTERN IZAILWAY

COMPANY.
Tl.e Directors proceed, after mature consideration, to present to
the 1 roprietors of the South-Eastern Railway a General Statement
of tie position and prospects of the Company. The directors need
liar. ly point out that, in the course of the starement, 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 alreadyoexpended, expended, will produce, may, after
the views of the directors have been stated, be calculated by each
pt oprietor 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 hive 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 corn-
pany to escape the evil effects of competition, imprudent amalgama-
tions, and a reduction of tolls which would have made the attain-
ment of prosperity barely practicable.
For this the company is indebted, not alone to that justice which
Parliament has, at each successive costly contest, awarded it, or to
a series of happy accidents in the rejection and suspension of the
Rifle 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 e3mpany, passed on the 2lst of Jane,
1336, 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 Perna-
Inentary 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-
tiomy 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.
The Main Line from London to Folkestone and Dover .. 87 25
The Folkestone Harbour Branch • • .••• •• 61
The Bricklayers' Arms Branch .. • • 156
The Greenwich Line • • • • • • .. .. 360
The Maidstone Branch • • • • • • .. .. 977
The Tunbridge and Tunbridge Wells Branch. .. 5 22
The Ashford, Canterbury, and Ramsgate Branch • • .. 30 10
'he Ramsgate and Margate Branch • • • • .. .. 356
The Minster and Deal Branch .. S .67
The Canterbury and Whitstable Line " 5 78
The Gravesend and Rochester Line .. • • • • • 615
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-
tray, 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 tight 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 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 lith of
Entember, 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, arid,
The widening of the London and Greenwich Railway.
And an•proftts accruing from any of the new lines wholly or par-
tially_epened 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, mull 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
he new lines, wholly or partially opened before such day, are divi-
sible among the proprietors entitled to share the profits of the other
loves 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 bees opened for traffic and contributed
their earnings to the advantage of the original and the No. 1 and
No. 2 Shares 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, l miles in length, which was opened
On the Ist of July, 1847 ; and the Gravesend and Rochester Line,
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 dl-
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
evorldt for which those capitals were created had been opened for
train, 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. 19s. per share ; but the
!,xigencies of the money market, which defied all calculation, made
it incumbent on the directors, in order to insure the prompt payment
et the calls on the No. 3 and No. 4 Shares, which was of vital im-
tnrtance 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. Shares should be-
corne entitled to dividend. This power was granted by the proprie-
on the 18th of February, 1847.
Whilst the directors coatidently submit that this measure, so au-
thorised and sanctioned -by the propriet-Ts. 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,
t;alidford, and Reigate Railway, and the Canterbury and Whitstable
ltailwaY 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
red in perpetuity from the time of the completion of the works,
!Itch 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
le limited to 600,0001. , • the rental will, therefore, be 33,0001. per
annum.
t The Canterbury and Whitstable Railway is held on lease for the
nu of 14 years, commencing from the 29th of September, 1844.
The rent payab' e for the remainder of the term is 3,0001. per annum.
an addition to interest on the mortgage debt, amounting to 44,221/ ,
end which is 2,2111. Is. per annnm. The South-Eastern Railway
pur-
chasing has the option, before the 29th September, 1862, of pur-
-O:.Hg this line on payment of 60,0001. as the purchase money, and
en assuming the mortgage liability of 44,2211.
'he South-Eastern Railway Company have relaid this line with
eavY rails since it was leased to them, and they have removed the
stationary engines with which It was worked, in order to substitute
Dave
power for the purposes of the traffic ; and as coke works
't,:e also been built by the company at Whitstable, and money has
n 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.
Si The ler gth of the lines of railway and branches in course of con-
, rn tnetion by, and to be leased to, the South-Eastern Railway Com-
pany, is 133 miles, viz

71* North Kent line from London to Woolwich, Dartford,