The Sun.
London, England, 1848-10-28 00:00:00

1848.

Lancaster and Carlisle, Caledonian, and Edinburgh and
Glasgow Companies. The lease is 7 per ceet. on a ca-
pital not exceeding 1,020,0001. (of which this compan') s
proportion is one-fourth); and as the Ims, if any, is
to be borne only in proportion to the traffic which each
company receives from it, the risk is inconsiderable.
" The directors may dismiss, therefore, this descrip-
tion of engagements with rem:stating, that if they do not
offer any early or flattering prospects of profit, neither
as a whole (taking into account the additional traffic to
be brought upon the old lines) are they calculated to
prove a lasting burden on the company; and further
that the control of the working of these important
branches will add to the strength and security of the
whole undertaking is beyond doubt; and when time has
been afforded for the development of their resources, it is
not unreasonable to expect that profit also will be derived
from them. In dealing with these engagements, there-
fore, the directors assume that the liabilities will be met
by the proceeds.
" The next class of obligations is that in which the
corn [,any hold stock in undertakings not yet opened, or
only partially so. The amount of capital thus contri-
buted, as per schedule 3, is 4,945,231/.
" The directors are aware that the net revenue to be
derived from these several lines may be variously esti-
mated; but however sanguine may be the expectations
of those competent to form an opinion of what may pro-
bably be realised in a few years, they desire in this
statement to take a safe view of the probable results.
" In estimating, therefore, the net proceeds of these
undertakings at 3 per Gent., they by no means wish to
convey an impressicn that such is likely to be the issue,
but rather to place the calculation on o low a scale as
not to be open to question.
"The subscription to the Caledonian Company is so
limited in extent that a very small dividend would not
entail much loss.
" The Lancaster and Carlisle line has paid the com-
pany 4 per cent. on its stock since the opening, and the
traffic has so largely increased, that an early advance of
dividend may be expected. There will consequently be
a direct profit on this stock, and one which the directors
feel confident must steadily improve.
" The branch lines embraced in the second schedule
comprise extensions into new districts, such as the
Stamford arid Rugby Railway, the Clifton branch con-
necting the East Lancashire with the Liverpool and
Manchester line, the tunnel and new stations in Liver-
pool, and the enlargement of station accommodation.
The last named portion of this capital cannot be
expected to prove remunerative per se, but will
be necessary to enable the company to obtain the
traffic expected to arise- from the new lines and
extensions about to be opened in various
directions. The means of conducting the
goods traffic at Liverpool are now quite inadequate to
the demand, and comparatively speaking a small por-
tion only of the traffic to and from the interior of the
country is yet transferred to the railway. The new
station at the north end of Liverpool, and the expected
junction with the Sheffield and Lincolnshire line at
Manchester, are calculated considerably to in-
crease this business. The capacity of the Lon-
don and North-Western line for receiving and convey-
ing a very large accession of traffic is undoubted; but
without the terminal enlargement now in course of being
provided, the directors would have found it difficult to
manage such an increase, as on a revival of the com-
mercial prosperity of the country, may reasonable be
expected.

"Having now rapidly glanced at their various liabili-
ties, it remains for the directors to point the attention of
the proprietors to the present state of the capital and
revenue accounts, and to supply materials which may
enable them to form their own judgment of the future
return.

" From the summary it will be seen that the total
ultimate expenditure is expected to be 25,862,0121. The
account will therefore stand thus :
Dividend upon total share ca-
pital of . • • 421,047,747 at 7 per cent. £1,478,342
Loans, £4,814,265, at 43 per
cent. .. „ 216,642
Lees at 334 per cent. on
Z 4,945,131, assumed return
on capital of subsidiary lines
as per schedule 3 ..

173,083

Working expenses 40 per cent. on gross income

Total ..