The Sun.
London, England, 1870-06-06 00:00:00

A ;

GOVERNMENT OF PER
ISSUE of £11,920,000 STERLING nominal Capital, 6
PER CENT, CONSOLIDATED BONDS, for the Construction of
RAILROADS.

Redeemable at Par by Hall-Yearly Drawings, through the
operation of an accumulative Sinking Fund, of Two per Cent.
per Annum, conunencing in 1880.

PRICE OF ISSUE 84 PER CENT.

In conformity with the Law of the National Congress, dated
the 15th January, 1869, which conferred upon the Supreme
Government of Peru the right of making contracts for the
construction of certain Railroads, and paying for the same by
the issue of Consolidated Bonds of the Republic of Peru, the
said Government has arranged for the issue of such Bonds, as
follows :

To the extent of

For the construction of the 4 Soles 27,600,000, 0r£5,510,000
Railroad from Callao to La Oroya „ 32,000,000, or 46,400,000
Total Soles 59,600,000, or £11,920,000
Messrs. J. HENRY SCHRODER and Co., being duly authorised,
beg to offer the said Bonds for public subscription on the follow-
ing conditions :-
1. The Bonds will be in amounts of £l,OOO, £5OO, £2OO, £lOO,
£5O, and £2O, bearing interest at the rate of 6 per cent. per
annum, payable by Coupons half-yearly on the Ist January and
Ist July in each year (the first being payable on the Ist January
next).
The Coupons will be payable in London, in sterling; in Paris,
at the exchange of 25 francs per pound sterling; and in Amster-
dam; at the exchange of the day on London.
2. The redemption will be effected by half-yearly drawings at
par, commencing on the Ist April, 1880, by the operation-of a
Sinking Fund of two per cent, per annum of the entire Capital,
plus the Interest on the redeemed Bonds, so that the entire
amount will be paid off at the end of 25 years from that date.
The Bonds so drawn will be paid off three months after the date
of drawing.

3. The Peruvian Government, however, reserves the right of
putting the Sinking Fund into operation before the date above
named, and of augmenting the amount to be drawn at any of the
half-yearly periods.

4. The Peruvian Government guarantees the exemption of
these Bonds from all Taxes or Imposts of any kind in Peru.
5. The Securities specially hypothecated for the due payment
of the Interest and Principal of these Bonds are as follows :-
Ist. The National credit of the Republic, solemnly pledged
by the Government of Peru, in the name of the Re-
public, with the general hypothecation of all its real
property and revenues.
2d. The Customs Dues of the Republic of Peru, amounting
annually to Soles 4,000,000, or £BOO,OOO.
3d. The Railways to be constructed from Calloa to La
Oroya, and from Arequipa to Puno, also the existing
Railroad from Megia to Arequipa, with all their lands,
buildings, rolling stock, workshops, and appurtenances.
This latter Railroad has just been completed at a cost
to the Government of £2,400,000.
• 4th. The surplus proceeds of the Guano to be imported
into the United Kingdom of Great Britain and Ire-
land, her Colonies, to the Continent of Europe, and
to United States of America, after providing for the
existing 5 per cent. Government Loan of 1865 (of which
£7,192,200 is still in circulation), and of the guaranteed
Pisco-Ica Railway Loan of £290,000, The amount re-
quired for the annual service of the Loan of 1865 is
£1,000,000, that of the guaranteed Pisco-Ica Railway
Loan £20,800. The sales of Guano amount to 550,000
tons per annum, producing a nett Revenue of about
£4,400,000.
sth. After the Ist July, 1879 (the term fixed for the final re-
demption of the Loan of 1865), the present Bonds
become a first charge upon the entire proceeds of Guano
of the Republic of Peru (subject only to the guaranteed
Pisco-Ica Railway Loan of £290,000), and no other Loan
can under any circumstance take precedence of these
Bonds.
6. The Subscription price is 82k per cent., payable in the fol-
lowing Instalments, viz.:—

£5 Os. on Application ;
£l2 10s. on Allotment ;

Os. on the 20th August, 1870
£l5 • Os. on the 20th October, „

Deducting £3 Coupon due
£l5 Os. on the 31st December „
Jan. 1,1871, less income tax
£lO Os. on the 20th February, 1871 ;
£lO Os. on the 20th April ;

£l2 10s.

Subscribers have the option of paying in full all the Instal-
ments under discount, at the rate of 4 per cent. per annum, on
any day when an Instalment falls due.

Allaying for Discount on the Instalments the price is reduced
to 811 per cent.

The non-payment of any of the Instalments at their due dates
subjects all previous payments to forfeiture.
Scrip Certificates to Bearer will be issued against Allotment
Letters, to be exchanged for the definite Bonds as early as pos-
sible after payment of all the Instalments.

The Bonds will be signed on behalf of the Supreme Govern-
ment of Peru by a Special Commissioner appointed for that pur-
pose, and countersigned by Messrs. J. HENRY SCHRODER and
Co. Coupons for the half-yearly Interest due the Ist July of each
year will be attached.

Applications in the annexed form will be received by Messrs.
J. HENRY SCHRODER and Co., on Tuesday, the 7th June, Wed-
nesday, the Bth June, and for applications from the country
until noon on Thursday, the 9th of June.
The allotments will be made as early as possible after the close
of the subscription. In cases where the amount allotted is less
than was applied for the balance of the deposit will be applied,
towards payment of the next Instalment, and, if more than suffi-
cient for that purpose, the residue will be returned to the
Subscriber.

Where no allotment is made, the amount of deposit will be
returned without delay.
Subscriptions will be opened simultaneously :
At the Offices of the Societe Generale
In Paris ........ reurmmfaevreoeriseert le
ddeevtnpdtest.r duen
France.
At Messrs. Lippman,Rosenthal & Co.'s.
In Amsterdam .. { At Messrs. Wertheim and Gompertz's.
At the Nord-Deutsche Bank.
In Hamburg .... At Messrs. L. Behrens and Sons.
In Brussels ..... At Messrs. Cassel and Co.'s.
In New York.... At Messrs. Baltzer and Tasks'.
but Scrip Certificates issued in respect of London Allotments can
only be paid on and exchanged for Bonds in London.
145, Leadenhall-street, London, 4th June, 1870.

[To be retained by the Bankers.]
GOVERNMENT OF PERU.

ISSUE OF 211,920,000 STERLING, NOMINAL CAPITAL, 6 PER
CENT. CONSOLIDATED BONDS, FOR THE CONSTRUCTION
OF RAILROADS.

To Messrs. J. Henry BehrOder and Co., London.
Gentlemen,
Having paid to the London and Westminster
Bank, Lothbury, the sum of £ , being the required deposit
of 5 per cent., request that you will allot to the sum
of £ Nominal Capital of the above Bonds, and engage
to accept that amount, or any less amount which may be
allotted, and to pay the Instalments thereon, in conformity with
your Circular of 4th June, 1870.
Address '
Date

[To be retained by the Applicant.]

Received of the sum of £ , being
5 per cent. deposit upon application for £ of the Govern-
ment of Peru 6 Per Cent. Bonds.
For the London and Westminster Bank.

C Barnstaple and the west of England is (as a glance at the map
will show) round via Taunton, by Exeter, and thence by the
North Devon Railway—a very circuitous route.
When the Devon And Somerset Railway is open, nearly the
whole of Tthis traffic must pass over- it, at a saving of nearly 40
miles in distance, and consequently economy of time and ex-
pense will be effected by all traffic between the metropolis and
places north of it and the large district which will be served by
the Devon and Somerset Railway, such traffic then proceeding
by the Great Western and Bristol and Exeter Railways, to
Taunton; and thence by the Devon and Somerset Railway direct,
passengers and goods being booked through by those Companies.
By special agreement, confirmed by Act of Parliament, the
Bristol and Exeter Railway Company are to work the Devon and
Somerset Railway in perpetuity, paying over to this Company
half-yearly 50 per cent. of the gross receipts.
Arrangements have also been made by which the Midland
Railway Company is under agreement to allow the Devon and
Somerset Railway 10 per cent. rebate on the traffic passing over
their line ; and the Bristol and Exeter Company have agreed to
allow a similar rebate of £5 per cent. on their line, which is to be
increased to 10 per cent., when negotiations with the Great
Western Railway Company for rebate on their line have been
successfully carried out.
With reference to the estimate of traffic of the Devon and
Somerset Railway, there is no doubt it must be large; having
regard to the important towns it unites, and to the rich agri-
cultural and mineral district it will accommodate, as well as the
saving of distance from the Metropolis and North.
The directors forbear, to offer any precise calculations as to the
amount of probable traffic ; but it may be observed that the
North Devon Line running to Barnstaple from Exeter has a
traffic of a mile a week, and the directors have received a
reliable est ate that the traffic of this line will reach £24 a
mile a-wee and will ultimately be considerably more.
The amount required annually to pay the interest on the
whole of of IT DebeitittroAlteek is £16,200, so that on the-above
estimate the anticipated net revenue would exceed by upwards
of £lO,OOO a year the sum necessary for such interest, to which
must be added the additional revenue from rebates of traffic
before mentioned, thus affording an investment of perfect
security.
Of the 42 miles of Railway, of which the Devon and Somerset
Railway consists, about 26 miles are nearly ready for ballasting
(the Rails and other materials for which are on the ground),
thus leaving 16 miles to complete the whole length of the
Railway.
By arrangements with the Contractor—for whose due per-
formance of his engagements security has been given to the
satisfaction of the Board of Directors—the following periods
have been fixed for opening the line for traffic :- -
Ist Section from Taunton to Wiveliscombe,
10 miles .. . ...
2nd Section from Barnstaple to South
Molton, 12 miles. .. on 15th Feb., 1870.
3rd and last Section .. .. .. .. .. .. .. ... on 30th June, 1871.
So that within 15 months the entire line will be at work and open
for traffic.
To insure the punctual payment of tile interest during the
last-mentioned period upon the Stock applied for an amount
amply sufficient for that purpose will be invested in Government
Securities, which will be lodged with the National Provincial
Bank of England, in the names of—
The Right Hon. The Lord Poltimore (Chairman),
The Right Hon. The Earl Fortescue, Castle Hill, South
Melton, Devon.
who have consented to act as trustees, and will apply the amount
in the payment of such interest as it falls due.
As a safe investment English Railway Debenture Stock is well
known, and possesses at once the advantage of a fixed income
and the certainty of rapid increase in value, and consequent
augmentation of the capital invested.
TABLE OF COMPARATIVE VALUES OF RAILWAY
DEBENTURE STOCK.
These features apply specially to the present Issue of Stock
for subscription, as will be seen by the accompanying table of
the relative values of existing Railway Debenture Stock at 6 per
cent. interest, compared with the 6 per Cent. Debenture Stock o -
the Devon and Somerset Railway, now offered at £lOO.

on 15tb Oct., 1870.

price in a 6 per
Issued at Equivalent
Rate of Present
NAME OF STOCK.
Interest. Price. Cent. Stock,
.... ..............._ as now offered.
Per Cent. - £ £
Great Eastern Railway De-
benture Stock .. 5 110 132
Great Northern .. ; ; 4 100 150
Great Western .. 5 112 134
Lancashire and Yorkshire 4 100 150
London and Brighton .. 41 101 134
London & North Western 4 100 150
Midland .. ..
.. 4 100 150
Ditto .. .. .. 41 106 141
North-Eastern .. .. 4 100 150
North London .. .. 4} 106 141
South-Eastern . .. 5 113 135
Metropolitan District
Railway (in course of
construction) Debenture
Stock issued in July 1869,
is now 16 premium .. 6 116 116

)tion being an
English Rail-
Ltural district,
)tal capital of
ists.

The Debenture Stock now offered for subscrip
absolute first mortgage charge on 42 miles of an
way, passing through a rich mineral and agricu
and which, when completed, will represent a tc
£708,700, offers an excellent investment for capital
By order of the Board of Directors,
11, M. MUGGER:

DGE,
Secretary
13, Little Queen-street, Westminster, 2nd June, 1870.

Applications, accompanied bp the payment of £lO per cent.,
will be received on the enclosed form, which must be filled up,
and forwarded either to the National Provincial Bank of Eng-
land, 112, Bishopsgate-street Within, London, or its branches ; or
to the Secretary at the Company's offices, 10 Little Queen-street,
Westminster, London.
The above is abridged from the detailed Prospectus, which,
with Forms of Application, may be had of the Secretary at the
Offices of the CompanY•

MISCELLANEO US TOPICS.