The Sun.
London, England, 1859-03-11 00:00:00

GRAND TRUNK OF CANADA.

The London directors of this company, with a
view to remove an erroneous impression which they
believe prevails respecting the present and future
position of the railway, state that the total capital
set forth in the original prospectus as necessary to
complete the line amounted to £9,500,000. The
sum of £3,111,500 had been raised in bonds of the
Province of Canada, the interest on which formed
the first claim on the railroad. ' The remaining
capital consists of the debentures and shares of the
company. Alany circumstances arose, especially
connected with the line between Montreal and
Portland, which caused an expenditure not origi-
nally contemplated, and a junction of 22 miles in
length has also been made between St. Mary's and
London ; but, on the other hand, the Canadian
Legislature liberally consented to forego all claims
for interest on the amount of provincial bonds above
stated until the original shareholders received 6 per
cent. ; and the eastern portion of the line has been
curtailed nearly 30 miles, causing a saving of about
£250,000. The actual capital raised and expended
to this date, on which interest is payable, is
£8,426,200, which stands in the following order :-
Ist, £2,000,000 preference debentures, 6 per cent. ;
2d, £2,144,600 ordinasy debentures, 6 per cent. ;
3d, £1,500,000 7 per cent. debentures ; 4th,
£2,781,600 consolidated stock. And authority is to
be asked for at the meeting about to be held in
Canada to raise the further sum of £1,111,500 by
second preference debentures, under the powers
granted by the Act of 1858, while sum, with ex-
isting assets, will be required to pay off present
liabilities, and to open the whole line from Sarnia
to Quebec and Riviere du Loup and to Portland, a
total distance of 1,057 miles, including the Victoria-
bridge. The cost, therefore, of the railway to the
shareholders, equipped with working stack, and
including the bridge, will be about £lO,OOO per
mile, a sum which the directors consider extremely
moderate when it is remembered that all the works
will be of the most substantial character, the
bridges and viaducts being of stone and iron, that
the Vietoria•bridge will cost £1,350,000, and that
interest has been paid by 'the company during the
construction of the works to the extent of L 1,200,090.
The length of the line now open is 880 miles, and
by October next the bridge and the extension to
Sarnia, of 70 miles, will be ready for traffic ; and
at the same time a railway in the State of Michi-
gan, between Port Huron, opposite to Sarnia, and
Detroit, 55 miles in length, promoted in the interest
of the Grand Trunk Railroad, and to be worked by
it, will also be open. This railway completes the
link with all the American railways extending
west and south, thus forming a continuous line
between Chicago and the eastern seaports of Quebec
and Portland. The traffic to the present time has
been almost entirely local. The receipts upon the
portions of the line now open, 880 miles, have
already exceeded the total amount originally looked
for from that source over the whole length of the
road. The gross amount calculated upon in the
prospectus was £460,000 on 1,112 miles, or at the
rate of XS per mile per week. The sum actually
received in the two years 180 mand 1858 has been
at the average rate of £ll per per week upon
the whole distance as opened. In regard to the
through traffic, the directors can see no reason for
doubting the accuracy of the original calculations.
The vast trade of the west has greatly increased
during the last few years, as likewise the exports
and imports and the population of the province of
Canada. A regular line of steam packets between
Quebec and Portland and Europe, shortly to form
aweekly communication, has been established. The
Grand Trunk will thus form the best route to the
Western States of America and the Red River set-
tlement of the Hudson's Bay Company, and ulti-
mately to British Columbia.
Thegross revenue
actually obtained on the four principal lines, which
have hitherto transported a large proportion of the
traffic, averaged on the Michigan Central £3l 4s.
per mile per week ; on the Great Western of
Canada, £32 6s, ; on the New York and Erie, £46
10s. ; and on the New York Central, £49 16s. ; the
average on these four lines exceeding £4O per mile
per week. The directors have every confidence
that the very moderate estimate of 130 per mile
on the western and £3O on the eastern half, making
an average on the whole line of £25 per mile per
week, from the local and through traffic com-
bined, will be realised, and also that the working
expenses under these circumstances will not
exceed 50 per cent. of the. receipts. On the por-
tions of the line west of Toronto already opened
the local receipts for the last few months have ex-
exceed £2O per mile per week, and the working
expenses have been less than 50 per cent. As-
suming that the total capital on which interest
will have to be paid may in round numbers be
£10,000,000, the result will be as follows :—£2s per
mile per week on 1,057 miles, £1,374,100; deduct-
ing 50 per cent. for working expenses, £687,050,
would leave £687;050 ; from this deduct rent on
Portland section, V 73,000 ; leaving a net profit of
£614,050, or more than sufficient to pay 6 per cent.