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

THE GRAND RUSSIAN RAILWAYS.

(From the limey Market Review.)
The report of the Grand Russian Railway Com-
pany, presented at the meeting last held, enters
very fully into the situation and prospects of that
gigantic enterprise. At the outset the director a
complain, somewhat querulously, of the attacks
which they assert to have been made upon them,
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-
foinded 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
the scheme may be found within the ranks of its
own proprietary.
Three years ago the company was started with a
concession of ten years to complete its system. From
the commencement, an expectation appears to have
been formed that the works would have been un-
dertaken on all points at once, and that the whole
enterprise would consequently be faished within a
short delay. This unreasonable view being naturally
disappointed, public opinion ran into the extreme
of opposition, 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 Dunaburg, 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 prooeeding 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 (£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 tlfat only 306 versts of railway,
part of which had been already constructed, have
been opened in three years, is unfair, since 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
1839, 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 expenditire of 705,380
roubles (£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
(X 39,000), against 150,071 roubles (£23,700) in
1849, while tho amount per verst was 851 roubles
against 754. This is the more favourable ah
it 1S
unaccompanied by any
material addition to the
penses. The augmentation in the receipts continues

_
up to the latest date.
The financial expos) of the compan the least.
Y
encouraging part of the report. The total capi-
tal authorised for the construction of the system
was originally 275,000,000 roubles (£43,500,009),
d
of which 110,000,000 (X 17,400,900) are applied
to the first three lines now being made. It is
acknowledged, hewever, that for the Libau and
Theodosia undertakingstheampdoapilabyitlmaiegleuanitpttiiroeons of ysai,trhee
ed
which also
in-
teresti
s
insufficient, and that an increase in this quarter at
least must be made.
feltin
eannotthheesrhdarireeceteiuopn Financial
e.
nsTahne
statutesbythoe
must be effected at par in Paris,
Lootdn Amsterdam, and Berlin, has been found a
heavy, burden, and considerable losses have been
experienced through the unfavourable rate of ex-
The directors, however, hope that the
Negotiations
presentha ng
e-
year will give less unsatisfactory results.
are nowbeeis
ensgi 0
iof fresh p carried onwith
Government for the conrivil the
eges,
to enable the raisin
for the Theodosia raising of additional capital required
event of their n and Libau railways ; and, in the
company will be on-success, the operations of the
in course of to confined to the railways at present
are nstruction, for which the share-
holders There is assured the authorised capital is ample.
the assumed'
however, to be little doubt that
assistance demanded from the Imperial Govern-
menti 'wll be accorded, and, in that case, it is
avowed that the company willmake fresh
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 eiormou,%addition to the existing
capital, to the manifest depreciation of the amount
already issued. If Russia wants such a railiveY
system as she has proposed let her construct it her-
saf ; the undertaking is too large for anything,:
short of an absolute government. It may." said`.
that her financial position precludes her "1111E12e
suf-
ficient funds for the purpose ; but, if se,
what
she
value of the five per cent. guarantee w
offers to the Russian Railway Companyt is absurd
g in order
:that it may get the capital for
her P
niee on her part
to suppose that an offer of a
- uarn
is likely to be received with re or e favour than one
are sure to be commercially a country like Brazil, whose p roject,d rail-
ways
-valuable in a high
and, we may add, lndian
degree. While Brazilian, .
securities of unquestionable
railway shares, both
low '
value, stand at their present prices, it seems
impossible that any one would give par for an
of far less intrinsic
analogous secarity worth.

•
said that the Emperor is about to confide to
It iss—aoloon (unless his
.eervices should be required
important mission of making a scientific tour
°lrimeinlvdch°tehi‘ree)wYthoreld, and it is expected that one of the cense-
' qrou—ences of this miasion will be to increase French influence,
The announcement of the Prince's visit to foreign ad dish.
tent parts coinciding with the article in. the Constitutn
ionnei
is Rot unworthy of notice. The Prince has repeatedl y
expressed his conviction that Rome would soon be tl
to
capital of the Italian kingdom of his father-in-law. I', er-
haps it is thought that his presence here would bq an.
obstacle if any new policy were to follow from the, • vont-
mnivcd jn tho anstiMtionn4l.