The Sun.
London, England, 1856-09-18 00:00:00

THE CEYLON RAILWAY.

(Prom the Colombo Examiner.)
The interest of the past fortnight has again entered in
the railway question. A public meeting was held, at
whit L certain resolutions condemntt pry of the proposed
railway ordinance were passed; but this has been, by
almost general consent, esteemed as quite contrary to
public opinion. Full notices of this will be found else-
where, as also of certain resolutions adopted by the
Chamber of Commerce. In the Legislative Council the
railway ordinance was introduced on Wednesday last, by
the Queen's Advocate, in a speech of extraordinary
ability, and a pleasing feature of the proceedings on that
day was that the ordinance was seconded by Mr. Swan,
the senior English official member ; and this act was
spontaneous and without concert. Mr. Swan, in second-
ing the reading of the bill, stated that he had reason to
believe, from correspondence received from England by
last mail, that the required funds could be readily obtained
at a guarantee of 5 per cent. ; and we think, while the
hon. member was quite correct in his statement, that the
information referred only to the then moment of writing,
and not either to the time when the provisional agree-
ment was signed, nor to any prospective period. If we
are right, we are sure that Mr. Swan will take the
earliest opportunity of setting himself right on this point.
It should not be forgotten in the consideration of this
question that the railway company are pledged to raise
a very large part of their capital at 5 per cent., viz.,
400,0001., or two•thirds of the whole ; and thus, in effect,
the entire dispute on the question of interest is resolved
into a paltry consideration of 8,0001. a-year ; paltry in
respect of the interest involved. For all are agreed as
to the propriety of sanctioning a 5 per cent. guarantee ;
and the difference between 5 and 6 per cent, on 800,0001.
is only 8,000/. ; and the remainder of the capital,
400,0001., is, by the agreement, only to bear 5 per cent.
It appears to have been omitted from the consideration
of those who hold that the railway would not pay, that
if it does not pay, if, say, a deficiency arose, if the ex-
penditure exceeded the income by 60,0001., the whole
guarantee would go towards up-keep, and not into the
pockets of the shareholders ; and so on proportionately
throughout; so that until the railway is worked to pay,
the guarantee would not benefit the shareholders. The
Chamber of Commerce a year ago agreed to a 5 per cent.
guarantee and to a permanent profit, if secured by work-
ing operations 'of 10 per cent. They adiere to these
views now. So that although the company voluntarily
sacrifices a prospective benefit of 2 per oent. for ever, as
it does by limiting its profits to 8 per cent., the chamber
holds out still for only 5 per cent. being guaranteed, and
jeopardises the chance of our getting railway communi-
cation between the seaboard and the producing districts
for what is a matter of only 8,000/. at the utmost, or 13s.
4rl. per cent. increase asked. We say 13s. 4d per cent.
increase only : for 800,0001. at 6—and 400,0001. at 5 ;
make the whole capital of 1,200,000/. have an interest
of only 51—or 5/. 13s. 4d. per cent. We believe,
however, that the bill will pass, and under existing cir-
cumstances we would recommend the council to press for
the bill—the wholObill—and nothing but the bill. Par-
allel with the railway ordinance is the taxing ordinance
to provide for the guarantee ; and on this subject we,
need only refer to the power the council has of amend-
ing the proposal to raise this fund from exports alone.
Why should not imports also be taxed t At present our
import 3 generally bear a tax of 5 per cent, ad valorem
—why not raise this to 6 percent. ? In the Cape Colony
and at the Mauritius imports are taxed at the rate of 6
per cent., and we think that it such a case as the pre-
' sent this increase of an existing tax would be a good ad-
junct when we are imposing a new tax,.which will fall
primarily only on a few persons ; while in the event of
taxing imports one per cent, additional, a tax which will
he unfelt by individuals, anadditional revenue of 22,0001.
will thus be raised. For the customs revenues are about
110,0001., which at 1 per cent. additional would yield
22,0001. Thus the duty proposed to be levied on ex-
ports might be reduced from 2. to 1 per cent. Nor can
we believe that the Government would object to this
scheme, and we little doubt that if an amendment to
this effect were proposed it would be supported by the
officials; at any rate we would recommend this conside-
ration to the unofficial members of the Legislative
Councils

THE EUPHRATES VALLEY RAILWAY.

We are requested to publish the subjoined cor-
respondence between the Foreign Office and the
chairman of the Euphrates Valley Railway Com-
pany :

Foreign Office, August 19, 1856.
Sir,—l am directed by the Earl of Clarendon to state
to yo❑ that, with a view to enable his lordship to fur-
nish Viscount Stratford de Redcliffs with instructions as
to the support to be afforded to Major-General Chesney
and the company which he represents, Lord Clarendon
would be glad to receive from you precise statements and
particulars as to the proposed Euphrates Railway, and
as to the assistance which can be afforded by her Ma-
jesty's Ambassador.--I am, sir, your most obedient
servant,

(Signed)
To W. P. Andrews, E-q.
(ANSWER )

SHELBURNE.

August 26, 1856.
My Lord,-1: have the honour to acknowledge the
re:eipt of your letter of the 19th inst., requesting nee
to communicate tor the information of the Earl of
Clarendon precise statements and particulars regarding
the Euphrates Valley Railway Company, to enable his
lordship to give instructions to Viscount Stratford de
Redcliffe to support IVlajor.General Chesney on his
mission to Constantinople, as the representative of the
Euphrates Valley Railway Company.
2. In reply, I beg to state the objects contemplated by
this company are shortly as follows :-
3. This company is established to connect the Medi-
terranean and the Persian Gulf by a railway from the
ancient port of Seleucia by Antioch and Aleppo, to
Jaber Castle on the Euphrates, of 80 miles in length,
and afterwards from thence by other towns to Bagdad,
and on the head of the Persian Gulf. Thence by steamers
communication will be established with all parts of

4. The effect of the proposed contract to be entered
into between the sublime Porte and this company will
be, that the Ottoman Government guarantee a minimum
dividend on the capital required at 6 per seat. per an-
num for 99 years, with power to raise capital for
steamers, at a rate to be hereafter mentioned.
5. The Ottoman Government grant a lease of the land
necessary for the railway and works for 99 years, free of
charge.
6; •On the opening of the line, all nett profits exceed.
ing the rate of .'clividend guaranteed, are to go to the
Ottoman government, in liquidation of the dividends
they have advanced. When this advance is repaid the
entire surplus goes to the shareholders.
7. At the expiration of 99 years the land with the
railway and works pertaining thereto will become the
property of the Ottoman Government, who will at the
same time purchase the rolling stock at a valuation to
be settled by arbitration.
8. The Ottoman Government guarantee the company
against all competition from works of a similar character,
and grant the right of land, woods, forests, and quarries,
the property of the state, at a catain distance at each
side of the line.
9. The preliminaries for a concession on the above
basis were mutually agreed to by his Highness Aali
Pacha Grand Vizier, when in this country, and M.
Musurus, with General Chesney and myself, his High-
ness referring me, as the chairman of the company, to
M. Musurus for the settlement of details, and request!ng
me, ou his departure frem England, to send an a;.-,,ent to
represent this company at Constantinople, having full
power to give effect to the preliminary agreement, so
that the firman might be issued giving the formal and
official sanction of the Sublime Porte to the concession
and guarantee.
10. The directors of this company have selected
General Chesney, their consulting engineer, for this mis-
sion, feeling that, from his intimate acquaintance with
Turkey and its people, and from his high and honourable
character, he is peculiarly qualified to conclude arrange-
ments begun and carried thus far, under the most pro-
miff ng auspices.
11. The major-general will be accompanied and aided
on his mission to Constantinople, and the subseeptent
survey in Syria, by the celebrated engineer Sir Joha
Macneill, and takes his departure on the Ist proximo.
12. On the 17th of March last, by desire of the chair-
man of the Hon. East India Company, I forwarded to
Lord Clarendon, through the Honourable Court and the
Board of Control, a letter addressd to Lord Stratford de
Redcliffe with enclosures containing full particu'ars con
netted with the Euphrates route to India, and begging
his lordship to exert on behalf of the effort that rite