The Sun.
London, England, 1860-10-15 00:00:00

THE GRAND _RUSSIAN RAILWAYS:

(From the Honey 31arkct Bevim.)
The report of the Grand Russian Railway Com-
pany, presented at the meeting last held, enters
very fully into the situation and prospects of
gigantic enterprise. At the outset the directors
complain, somewhat queruloully, of the attacks
whichthey assert to have beers made upon tnem,
their engineers, and their general operations. Some
of these statements being characterised as based
upon prejudice, the directors pass them by without
an answer ; but upon other points raised in a bona
fide spirit, and the result of more or less well-
founded uneasiness, they offer some explanation. It
also appears from the context that the shareholders
are by no means unanimous in supporting the
board, and that many of the so-called opponents of
its
own scheme may be found within the ranks of
own proprietary.
Three years ago the company was started with a
concession of ten years to complete its system. From
the commencement, an jaxpectation appears to have
been formed that the works world have been un-
dertaken on all points at once, and that the whole
enterprise would consequently be finished within a
short delay. This unreasonable view being naturally
disappointed, public opinion ran into the extreme
of oppositions especially when it was found that,
from certain circumstances, it was necessary to de-
lay or suspend some of the works. The directors,
therefore, state that they have judged it right to
explain to the shareholders in every point the
present condition of their property, and thus to
place themselves in a fair and open position before
the public.

The original plan of the company included the
completion of the Warsaw line, which had already
been begun by the state, and the construction of
railways from Vilna to the Prussian frontier, and
from Moscow to Nijni-Novgorod, a line to connect
Libau and Duttaburg, and on the southern section
the establishment of a communication with Theo-
dosia at the Dnieper: Of these it was determined,
in the first instance, to carry out the Warsaw, Prus-
sian, and Nijni lines, and the capital required for
these was estimated to be 110,000,000 roubles
(about £17,400,000 sterling.) After constituting
the staff, a proceeding which occupied considerable
time, owing to the wide range of the com-
pany's operations, the above undertakings
were vigorously prosecuted, and at the close
of 1859 2,891 versts (three versts make two
English miles) were laid out of the 4,146 com-
prising the system, and 306 opened for traffic, be-
sides the construction of numerous earthworks,
buildings, &c. Of the capital subscribed, 88,000,000
roubles (L 13,900,000) was paid up, and 65,000,000
roubles (.£10,200,000) actually expended, including
deposits of caution money, advances, &c. The
directors institute a comparison of the progress of
the railway during the three years with that of
some of the leading German undertakings, and en-
deavour to show that it is altogether in favour of
the former. They also claim to have done compara-
tively more within a short period than even the
great French companies, notwithstanding the fact
that, from the severity of the climate and
other causes, the working days in the year
are only abont 135, or half the number
in other parts of Europe. It is also urged
that the objection that only 300 versts of railway,
part of which, had been already constructed, have
been opened in three years, is unfair, sipce it omits
to reckon the large works which have been exe-
cuted on other parts of the system. By the com-
mencement of 1862 it is hoped that the three lines
will be finished throughout. With regard to the
Theodosia and Libau Railways the surveys have
been completed, but for the present the works have
not been begun. This result is attributed to the
financial crisis of 1857-8, followed by the war of
1859, the enormous increase in the price of labour,
the fall in the exchange, and the discovery that the
capital guaranteed by the state, viz., 62,500 roubles
the verst (or about £14,000 per English mile), is
insufficient for the formation of these projects.
The result of the working of the 257 versts of the
Warsaw line (129 only for part of the year) open
for traffic in 1859 gives a gross revenue of 877,029
roubles (X 138.000), and an expenditure of 705,380
roubles (X 111,000), leaving a net profit of 171,649
roubles (say £27,000), which the directors consider
a satisfactory return. In the first three months of
the present year the receipts were 248,505 roubles
(£39,000), against 150,071 roubles (X 23,700) in
1859, while the amount Rer verst was 851 roubles
against 754. This is the more favourable as it
unaccompanied by any material addition to the es
ex-
penses. The augmentation in the receipts continues
up to the latest date.
The financial expose of the company totl napi-
enaouraging part of the report.
The
f the system
tal authorised for the construction
(L 43,500,000),
was originally 275,000,000 roubles° the least
of which 110,000,000 )maadree. applied
It is
to the first three lines
bloirngthe Libau and
acknowledged, hewever,
that
capital provided is
Theodosia undertakings the. ,
(X11017,4009:90
increase in this quarter at
insufficient, and that
least must be made.. an
niniancial difficulties are also
parbee
been
in
found Paris,
a
coupons and obligations, which
on the share
felt in another direction. The payment of the in-
teresteffected
Berlin,
considerable losses have been
heavy.burden,
by the statutesrdmamus,tanbed
through the
experienced
London, Amsterdam,
The directors,change. however, hope that the
present year will give less
unsatisfactory results.
Negotiations are now being carried on with the
Government for the concession of fresh privileges,
to enable the raising of additional capital required
for the Theodosia and Libau railways ; and, in the
event of their non-success, the operations of the
company will be confined t *
o the railways at present
in course of construction, for which the share-
holders are assuredthe • capital .
authorised is ample.
There is assumed, however, to be little doubt that
the . •
assistance demanded from the Imperial Govern-
ment will be accorded, and, in that case, it is
avowed that the company will make a fresh effort to
obtain further subscriptions from the capitalists of
Europe.
That this attempt will meet with anything like
success is very doubtful. The project of establishing
railways over the whole of Russia through the
medium of one single corporation is too vast to com-
mend itself to the judgment of simple financiers.
Everything is grand, vague, and uncertain. The cost
is reckoned by hundreds of millions of roubles, and an
error of calculation such as has already been made
Might involve an enormous addition to the existing
capital, to the manifest depreciation of the amount
already issued. If Russia wants such a railway
system as she has proposed let her construct it_ her
self ; the undertaking is too large for anyethl
short of an absolute government. It mayiiblgs'
ad-
that her financial position precludes her ra.is t is the
ficient funds for the purpose; but, if so, Which she
value of the five per cent. guarante:; .12
i order
offers to the Russian Railway Cot* "
? It is absurd
that it may get the capital for
hearow on her part
to suppose that an offer of a gai
;or faTour than one
is likely to be received with
Inwhose projected rail-
from a country like Brazil,al_ valuable in a high
ways are sure to be commeraceid: .i.
we may add, Indian
degree. While Braziliasene,
arities of unquestionable
railway shares, both
1-. -r rase& low prices, it seems
value, stand at t.ei
One would give par for an.
impossible that .
y
tan of far less intrinsic worth. _
analogo
securi y
us

1 It is said that theoi n Emperor
hs . e
r v is
cs e aboutsashteoounitec
io b c rconfidenu 1.
rte to
Pthiee°'ilportantmission of making a scientific tour
isll expectedbe th lie
increase
go f
with the Princesthe
article ' visit to foreign and dis-
tant the conse-
quencesreP°l:ueinnwdchetehicroeef3wt hoirsld missionn 91 it*
French. influence.
in the Constitutionnel
tlE'thnet partsannouncementco incid
is not unworthy of notice.. The
expressed his conviction that Prince has repeatedly
capital of the Italian kingdom Rome would soon be the
Per-
haps it is thought that his of his father-in-law.
obstacle if any new s presence here would be an
M4nigt4d 4)4 the Ongi f policy were to follow from the con•
taiPlitict.