The Sun.
London, England, 1870-02-02 00:00:00

_ROYAL SARDINIAN.

Yesterday an extraordinary meeting of this com-
pany was held in the City Terminus Hotel, for the
purpose of passing a resolution to accept and ratify,
subject to such terms and conditions, if any, as the
meeting might think fit, a convention between the
Italian Government and the company, dated March
24, 1869, for compromising and settling all disputes
between the Government and the company. Mr.
H. R. Grenfell took the chair.

The CHAIRMAN said it was impossible for the
board of directors at the last meeting of the com-
pany to recommend the shareholders to accept the
conditions of the Italian Government for the con-
struction of the line from Cagliari to Iglesias. The
directors had since entered into negotiations with
the Italian Government, and the result of the7e, in
the form of certain proposals, had been laid before
the shareholders in their report. It al pared pro-
bable that the Italian Government would consent
to the provisional construction of the Cagliari and
Iglesias line upon the following conditions—firs`,
the application of caution-money in cerlain pro-
portions as the work proceeded; second, the ori-
ginal guarantee of a net revenue of 9,000 lire per
kilometre, to come into effect upon the completion
of the line to Iglesias ; third, a first mortgage upon
the line and rolling stock, &c., to secure the repay-
ment of the new money to be advanced ; fourth,
the provisions of the original concession to remain
in force until the Italian Parliament shall take
action upon the convention of March. As the
approval of the March convention seems likely
to be delayed in consequence of the present
state of politics in Italy, the directors recom-
mended the shareholders to authorise them to
arrange with the Government for the provi-
sional completion of the Cagliari and Iglesias
line, and to provide the necessary funds for that
purpose. An eminent firm of contractors were
willing to undertake the completion of the line for
£122,500. The contractors would receive in part
payment the contractor's plant of the company,
and at least £17,000 of the company's bonds. There
was reason to believe that less than £68,000 in cash
would, with the caution-money, plant, and contrac-
tor's bonds, suffice to complete the line. It was
proposed to issue at par an amount of £2O bonds
not exceeding £90,000, bearing interest at 12 per
cent. per annum, such bonds constituting a first
charge upon the line. The guaranteed revenue on
the line was estimated at £13,500 per annum, which
would provide for the interest on the bonds and
leave a surplus of £2,700 per annum as a sinking
fund for the redemption of the principal. It had
been intended that resolutions should be proposed
at the present meeting giving the directors the ne-
cessary powers to carry into effect the convention
of March, 1869, and, if possible, the provisional
arrangement abovementioned for the completion of
the line. He thought it would be well for the share-
holders to adopt these proposals, but the Board
were of opinion that further time for their conside-
ration should be given. He therefore proposed the
adjournment of the meeting to the 22d instant,
which was agreed to, and the meeting adjourned
accordingly.