The Sun.
London, England, 1860-08-08 00:00:00

PROMOTED BY THE MADRAS IRRIGATION
AND CANAL COMPANY.
THE EAST INDIA IRRIGATION and CANAL
COMPANY'.
To be incorporated by Special Act of Parliament with
Limited Liability.
First Capital, £2,000,000.
With power to increase the same.
First Issue, £1,000,000, in 50,000 shares of £2O each.
Deposit £1 per Share.
DIRECTORS.
JAMES THOMSON, Esq., Chairman,
Major-General Philip Anstruther, C. 8.,
The Hon. Philip Pleydell Bouverie,
Lieut.-Colonel John Grimes,
Lieut.-Colonel William Campbell Onslow,
General Sir George Pollock, G.C.8., F.R.C.S., &c.,
Major-General Westrop Watkins,
Chairman and Directors of the Madras Irrigation and Canal
Company.
CONSULTING ENGINEER.
Colonel J. F. Smith, Madras Engineers, F.R. S., Consulting
Engineer of the Madras Irrigation and Canal CO.
AUDITORS.
James Bonar, Esq. (Messrs. Small and Co.), 8, Old Jewry.
Thomas Quested Finnis, Esq., Alderman, &c.
BANIiEP.S.
Messrs. Ransom, Bouverie, and Co., 1 Pall-mall East.
SOLICITOR.
John Mackrell, Esq., 34, Cannon-street West.
Secretary—John Westwood, Esq.
Offices : —27, Cannon-street, E.C.

PROSPECTUS.
The general scheme and objects proposed to be embraced
by this Company may be thus described, viz.:—The con-
struction, maintenance, management, and working of
such works of irrigation, water transit, and water sup-
ply in India, with their auxiliary undertakings as may,
from time to time, be found to be of a profitable character,
after the necessary sanction of Government has been secured
to each project.
The works selected for first operations, and intended to
be immediately entered upon, have been examined by en-
gineers of the highest attaintments and Indian experience,
who urgently recommended them for construction by Go-
vernment as being, in their opinion, amongst the most
important, and in promise the most profitable of their
character in India.
These works will consist of :
Firstly,—lrrigating and Navigable Canals, with all sub-
sidiary works throughout the rich and extensive alluvial
Deltas of Orissa and the adjoining districts, receiving their
supply from the copious and never-failing waters of three
great rivers, the Mahanuddy, the Byturny, and the Brah-
many,
which, with their affluents, intersect and command
the trade and commerce of countries, together much larger
in extent than England and Wales, and abounding in
agricultural and mineral wealth. The land in Orissa alone,
capable of being thus affected. is estimated to amount to
about 2,000,000 acres.
Secondly,—A main Irrigating and Navigable Canal, con-
necting the above works and districts with the port and city
of Calcutta, starting from Balasore and passing by Midna-
Poor to the Hoogly River, opposite to Calcutta, with all
subsidiary channels necessary to irrigate about 2,500,000
acres of good land contained in the surrounding country.
The territories to be thus supplied with water, the first
necessity of Indian agriculture, and to be opened up by the
introduction of appropriate and cheap means of communica-
tion, to the market of the world, possess immense natural
advantages both as regards position and capacity for com-
merce. They unquestionably want only the application of
English enterprise and capital, in the way now proposed, to
enable them to rank foremost amongst the most prolific
regions of the East. They are known to contain minerals
of great value, in addition to iron ore of the best quality,
and coal in abundance ; and also to be capable of producing
in almost unlimited quantities those staple articles of com-
merce, such as cotton (for the cultivation of which they are
emimently adapted), oil seeds, rice, sugar, tobacco, wheat,
&c., now so valuable•and se essential to the commercial su-
premacy of Great Britain.
The works just described and selected for first construc-
tion were, on their present extensive scale, first brought to
the notice of Government in May, 1858, by Colonel Arthur
Cotton, in the interesting and able Report, a copy of which
will be found in the appendix to this prospectus.
To the contents of this document the Directors invite par-
ticular attention; it was prepared in obedience to the orders
of the Government of India, who had selected Colonel
Arthur Cotton as the highest authority in such matters, to
inspect the Mahanuddy River, and to report upon the best
means of controlling its floods, and of protecting the Deltas
of Orissa from the terrible effects of flood and drought, to
which they have been so long subject.
Upon receipt by the Government of Colonel Cotton's plans
and statements, they were referred to the Chief Engineer
of Lower Bengal, who, with other local engineers, after in-
vestigation, coincided with the views and recommendations
there enunciated, and so reported to the authorities.
The perusal of these reports deeply impressed the Direc-
tors of the Madras Irrigation and Canal Company with the
great value and peculiar promise of the works thus sug-
gested and approved, and being convinced of their adapta-
bility to the operations of a Joint-Stock Association, they
proposed to the late Court of Directors of the East India
Company, and subsequently to the Secretary of State for
India in Council, to raise the requisite capital, and to un-
dertake their construction, provided fair and liberal terms
of support were conceded by Government. Considerable
negotiation took place upon the subject, and ultimately the
following letter was received from the present Secretary of
State for India in Council, viz. :
" India Office, E.C., June 2, 1860.
" Sir,—l am directed by the Secretary of State for India
in Council to acknowledge receipt of your letter dated 2d
ultimo, requesting a reply to your letter of the 12th March
last.
" Sir Charles Wood, havine, fully considered the contents
of both letters, directs me to state that he would be glad to
see an unguaranteed Company formed for the purpose of
constructing works of Irrigation and Navigation in the
Province of Orissa, and, as at present advised, he considers ,
that the undertaking might be carried out under the follow- •
Sing conditions :--
" 1. That the Company's works shall be constructed in
Conformity with plans approved by the Local Government.
" 2. That all land considered by the Local Government
to be necessary for the works shall be provided, in the first
Instance, free of charge, 'out that its full value shall even-
tually be paid by the Company, by instalments, after their
dividend reaches £5 per cent.
"3. That the prices chargeable for water supplied for
Irrigation, or for other purposes, and the tolls, rates, and
fares chargeable for navigation of the Company's canals,
and for the conveyance of passengers, animals, and goods
thereon, shall be fixed by an Act of the Indian Legislature
before the works are commenced, and that all water sup-
plied for irrigation shall be sold to the Government alone.
" 4. That the whole profits of the works shall belong to
the Company.
" Sir Charles Wood is prepared to communicate these
terms to the Government of India as constituting, in his
Opinion, the basis of a suitable arrangement, to be made be-
tween that Government and the Company. Upon hearing
from you that the promoters of the Company are disposed
to address the Government of India upon the subject,
be will issue such instructions as will ensure prompt atten-
tion being given to their proposals.
" I am, Sir, your obedient servant,
"T. G. BARING.
" J. Westwood, Esq., 27, Cannon-street."
The terms thus proffered have been accepted by the Di-
rectors as being,in their opinion, such as will enable the
foren t o
capital. present a safe and profitable source of invest-
AChe°arcinimgs
mCoemutp
addressed to Sir communication n:
;with
as ,
.however, been
'th the object of
inducing him to finally
without incurring the dela'?England
dispose the matter in
suggested communication withich will be involved the
Cal-
cutta ; should he, however, the Government at ,
decine to accede. to this re-
quest, no time will be lost in carrying on with that Go-
vernment the proceedings requisite to give effect to the
arrangement made with the Secretary of State for India,
in order that the necessary preliminary surveys may be
entered upon at the earliest possible moment.
Upon full.consideration it has been considered most pru-
dent that the present scheme should be taken up and carried
out as an independent undertaking, but under the same ma-
nagement as the Madras Irrigation and Canal Company,
and all requisite arrangements for effecting this object will
be adopted, with the concurrence of that Company, with
whose consent accordingly an application for a special Act
of Incorporation will be made early next session.
The immense political and social importance, and the
highly remunerative character of works of irrigation in
India, are now so well understood, that it is unnecessary in
a Prospectus to advance proofs, or to state in detail the re-
sults of past experience. Those, however, who may desire
such information, are referred to the appended extracts
from official documents and public records, the contents
whereof evidence in the most reliable manner the large re-
turns realised by Government from some of those un-
dertakings which in different parts of India are under their
control.
The Directors forbear to estimate the probable profits to
be derived from their present enterprise ; they prefer to
point to the ascertained results just referred to, produced
by similar undertakings, merely stating their firm belief
that all such works in India, if properly selected, planned,
and executed,
Ireeaebels,oiltuitseldyiffic
will, of necessity, yield considerable returns;
obauut
tv
difficult
essentialto cotti.ncretifveeanhdowth.e sale of an article
progress as water is
t h everywhere,than pmore
of
in India, can be other-
wisee o large profits.
In the present caseincurred, or the profit,
s precise estimates of the cost to be
ill)aesrtalised, can be properly made
until a detailed survey
exact course, nature, and exteeneiteoprotsecuted, showing thel
and the actual area of land to be
irrfigahteed7rtouoskenhanLews.,
ever, to the great extent and nature of the territe-iriegs, to be
operated upon—their geographical position, so advan-
tageous for enormous internal and external trade and coin-
nterce—their mineral resources known to be both rich and
varied—and their great agricultural capabilities, if supplied
with water—it is but reasonable to expect that works which
will bring all these advantages and valuable resources into
evidence, will with respect to the returns to be derived from
Irrigation alone, rival those of a similar character pre-
viously constructed in other parts of India ; and that, with
regard to navigation, they will produce results no less
satisfactory.
It is worthy of remark here, as showingtheof
soundness
of these expectations, that the present Secretary _ State
for India, in Council, in March last, addressed to
tt
to thaeGo-
vernment of India an official communication calling en •
tion to the importance of constructing, these very works,
and stating that her Majesty's Government were prepared
to carry them into effect as soon as the plans and estimates
were approved by the local Government. A desire to see
an unguaranteed Company established, he states, led to
their concession to this Company.
The main sources of profit will be :
Firstly,—The sale of water to the Government for the
irrigation of land.
Secondly.—Tolls levied in respect of the use of the Canals
and Water-ways by the public.
To these may be added as available but subsidiary means
eta lditional returns :
1.--The working of the Canals by the Company by the
Conveyance of Passengers, Animals, and Goods thereon.
2.—Rent and other income derived from mills and factories
established on the banks of the various channels.
3---Cultivation and sale of timber and other produce
raised upon the land of the Company. And,
4.—The supply of water for general purposes.
Although these latter are now put forth as secondary
only, they should by no means be lost sight of—the first of
them has been already ascertained to be highly productive
in India, and by the official accounts of the existing Canals
in the North-western provinces of Bengal the profits derived
from mills, timber, and bank produce, represent a large per
neatage upon outlay.
_ To the Manufacturers and Consumers of Cotton in Eng-
land, the establishment of this Company promises results of
incalculable importance, as it will render cultivable and
bring into cheap communication with the coast an immense
area well known to be eminently adapted to the growth of
Cotton, the Mahanuddy with its branches and affluents
forming the natural outlet for the whole of that portion
of Southern and
hoe immediately Central India (including Berar) which
vuntearately to the North and North-cast of the coun..