The Sun.
London, England, 1867-02-22 00:00:00

Scrip will be issued against banker's receipts for pay-
ment of the deposit or instalments, which will be ex-
changed when fully paid up for the definitive debentures.
The Great Eastern Railway Company are authorised by
their special acts, including their act of last session, to issue
debentures to the amount of £6,529,411, of which by the
return certified under the Railway Securities Act, 1866,
there remains unissued £652,317.
This amount of debenture capital is issued against
£20,791,452 of authorised share capital, of which £17,347,731
has been paid up.

The gr'oss inLano for the year 1866 w9s £1,883,000, and
the net income .£875,000, on which a large increase is cer-
tain by the reduction of working expenses, and on the com-
pletion of the Metropolitan Extension, the Whitechapel
Coal Depot, and other works.

The first charge on the line for debenture interest and
rents of leased lines (including the whole of the deben-
tures now to be issued) will be £530,000 a-year, so that,
even with the present traffic, there is a margin of £345,000
a-year of net income over the total amount of first charge.
In order to secure the issue of the whole rcennining
amount at once, and in a manner which obviates the incon-
venience of renewals at short dates, it has been resolved to
offer it in a form which practically makes it a debenture
stock, suitable for permanent investment, and at a rate so
cheap as to offer an inducement to the Shareholders and
public to take it up.
The advantage of a permanent debenture stock, redeem-
able by half-yearly reductions in the nature of a sinking
fund, so that the repayment of capital is secured by an
annual payment as well as interest, is apparent from the
recent legal decisions, which show that the security of
the debenture as a fixed and first charge upon net annual
earning is unexceptionable, and admits of ready legal en-
forcement. This system also benefits the debenture-holder
by creating a large amount of uniform stock, which is of
course more marketable.
On the other hand the advantage to the Shareholders is
obvious of a system which adds every year to the perma-
nent value of their property by extinguishing debt, while
a small addition to the interest to be used as a sinking fund
virtually costs nothing, being no more than the average
cost of stamps, commissions, &e., in renewing short-dated
bonds.

'The debentures now offered are in sums of £lOO each, or
in larger sums at the option of the holder, with coupons
attached, bearing 5 per cont. interest, payable half-yearly,
on Ist July and Ist January, and the capital to be redeemed
by half-yearly reductions in the nature of a sinking fund
of half per cent. applied cumulatively, i.e., together with
the interest oh the stock redeemed, by purchase in the
open market as long as the price of the stock does not ex-
ceed 120 per 100 ; or if above that, by annual drawings,
paying off the drawn stock at 120 per 100, by which the
whole of the stock will be extinguished in 52} years.
The Company will compound for the stamps, so that the
debentures will bo transferable by endorsement, without
duty.
Each debenture will bo convertible into ordinary stock
of the Company, at par, at the option of the holder, at any
time during its currency, upon giving three months' notice
in writing.
Tho price of each £lOO debenture is £lOO, payable as
follows : _ . .

Deposit £lo on Allotment.
First Instahnont, £2O on Monday, Ist April.
Second „ £2O ou Wednesday, Ist May.
Third „ £2O on Saturday, Ist June.
Fourth ~ £2O on Monday, Ist July.
Fifth „ £lO ou Thursday, Ist August.
Total .£lOO

Interest ht 5 per cent. per annum will bo allowed on pre-
payment of the whole on allotniont, or on the remaining
instalments, at the date of any one of the instalments ; this,
with the benefit of the coupon front Ist January, 1867,
makes the nest price of the £lOO debenturo equal to
£97 18s. 4d. _

In default of due payment of the respective instalments
all previous payments will ho liable to forfeiture.
_Applications to be made to the Secretary of the Company
in the subjoined form, on or before Friday, the Ist March
next.

Applicants who aro holders of crdinary or preference
shares or debentures of the Groat Eastern Company will
please to state the amount of their holdings in their ap-
plication; as a preference will bo given to them in the
allotment. J. B. OWEN, Secretary.
Secretary's Office, Bishopsgato Station, London,
February 21st, 1867.