The Sun.
London, England, 1870-01-28 00:00:00

RIILWAY AND OTHER, COMPANIES.

ROYAL SARDINIAN.

The report of the director of this company states

that it was not until the 24th of March, 1869, the
directors succeeded in concluding a new convention
with the Italian Government. They considered
that in concluding this convention they were doing
what was equally beneficial to the shareholders and
to the population of Sardinia. After careful and
active negotiation with the Minister of Public
Works, it appeared probable that the fallowing
terms could be obtained from the Government, if
the shareholders approved, for the provisional con-
struc:ion of the Cagliari and Iglesias line :
" 1.. The application of the caution money as the
work proceeds; the advances to be made in equal
amounts to those advanced by the company—that
is, £lOO of the caution money for every £lOO of
new money. The c.tution money is estimated to
produce from .t 69,000 t £65,000. 2. The ori-
ginal gulrantee of a net revenue of 9,000 lire per
kilometre on the terms of the of iginal concession, to
come into effect on the completion of the line to
Iglesias. 3. A first mortgage upon the line and
rolling stock and upon the company's other lincs
and stock of materials, to secure the repayment of
the new money to be advanced, such mortgage to
come into effect at the same time as the guarantee.
4. The provisions of the original concession will
for the present remain in force until the Italian
Parliament has taken action upod the convention
of March last."

llze present state of politics iu Italy rendered the
approval of the March convention an event likely to
be still furtherdelayccl. The directors thought, there-
fore, that the shareholders should authorize them
to arrange with the Government for the provisional
completion of the Cagliari and Iglesias line, and
should provide the necessary funds for that pur-
pose. An eminent firm of contractors were willing
to undertake the completion of the Cagliari and
Iglesias line for £122,500, in which stun £20,000
was allowed for stations and £17,000 for rolling
stock and workshop plant. The contractors would
receive in part payment the contractors' plant of the
company, and at least £17,000 of the company's
bonds. They would require to have from the com-
pany's stock of materials in the island what was
necessary for completing the line. It was estimated
that less than £68,000 iu cash would, with the
caution money, the plant, and the bonds to be taken
by contractors, be sufficient to complete the line and
defray all outgoings during construction. It was
proposed to issue at par an amount of £2O bonds
not exceeding £90,000, bearing interest at 12 per
cent. per annum, payable half-yearly, of which
£17,000 at least should be received in part payment
by the contractors ; such bonds to constitute a first
charge on the Cagliari and Iglesias line, the revenues
and kilometrical guarantee thereof, the rolling
stock employed thereon, the other lines partially
completed by the company, and the company's stock
of surplus materials in Sardinia not yet laid down
on their lines, and not required for the completion
of the Cagliari and Iglesias line. The guaranteed
revenue on the latter line was estimated to produce,
after deducting certain outgoings which might not
be covered by the 50 per cent. allowed for working
expenses, £13,500 per annum at least. This would
provide for the interest on the bonds (£lO,BOO per
annum) and leave a surplus of £2,700 per annum,
and leave a surplus of £2,700 per annum, appli-
cable for a sinking fund to redee.n the princiFal.
The bonds would be redeemable by annual drawings
in 15 years, with power to accelerate the redemption
in case the surplus revenue should be sufficient on
giving three mouths' notice. Resolutions would be
proposed at the meeting giviug the directors the
necessary powers to carry into effect the convention
of March, 1869, and, if possible, the provisional
arrangement for the completion of the line men-
tioned.