The Sun.
London, England, 1857-05-16 00:00:00

THE COMMERCIAL RAILWAY of RUSSIA.
RIGA TO DiINABURG.

CIRCULAR.
The Directors, having now completed their Aegotiations
with the Russian Government for the above Railway, have
much pleasure in laying before the Shareholders the follow-
ing particulars of their arrangements, together with the prin-
cipal features of the Imperial Concession of 1853, which was
confirmed, with additional advantages, by his Imperial Ma-
jesty, ou the 26th February-, 1857 :
A fixed Capital of 10,200,000 silver roubles, or about
1,636,2501. sterling, over which the Company has the abso-
lute control, and of the expenditure of which they are not re-
quired to give any account to the Russian Government. •
The fixed Capital has been changed in consequence of the
length of the line having been reduced, and several important
modifications having been allowed by the Russian Govern-
ment.

A Concession for a period of 75 years, dating from the open-
ing of the whole Line, during which the Russian Goverment
has reserved no right to purchase the Line.

A guarantee, by the Russian Government, of 4,i per cent.,
for interest and sinking fund. A sinking fund of one-eighth
per cent, is sufficient to redeem the capital in 75 years.
This calculation has been verified, together with all others
of importance, by an eminent accountant.

The line hali been most carefully surveyed by John Hawk-
Ehaw, Esq., the engineer-in-chief. It is of very easy construc-
tion—there being no tunnels, deep cuttings, nor high em-
bankments—few bridges, and those offering no engineering
difficulties. The whole line is almost upon a level, the maxi-
mum gradient being lin 200, sloping gradually from Diina-
burg to Riga; thus greatly economising the cost of con-
veying the produce from the interior.

A contract for the construction of the railway and the
supply of the whole of the rolling stock and material, has,
with the approval of the engineer-in-chief, been enterel into
with an eminent English contractor, with ample security for
its due performance.

The total sum required for the construction of the Railway
including all moneys to be paid 'to the contractor, the ex-
treme cast ofthe land, the interest on calls during construc-
tion, and the preliminary and all other expenses of manage-
ment, dee , whatsoever, have been carefully estimated at the
sum of 1,343,0001. sterling, thus showing an excess of fixed
capital over expenditure of 293,2501., the benefit of which
excess will be obtained by the Shareholders by the redemp-
tion of their shares at par.
The amount of the guarantee on the fixed capital of
1,636,250/. (after deducting the one-eighth per cent, for the
sinking fund) is 71,586/. per annum, which, upon the above
estimate, gives 51 per cent. per annum for Merest on the
capital (1,343,0001.) actually required, and still leaves a con-
siderable margin for unforeseen contingencies.
By the statutes the shares will be reduced from.their origi-
nal amount of 1001. to 201.., or 125 silver rubles, 500 francs,
236 guilders, or 139 thalers of Prussia, each. In conse-
quence of the reduction in the guaranteed capital, and the
issue of the shares being limited to 81,600, four shares only
of 20,. each will be exchanged for each 10/1. share.
Oa these shares of 201. only 161. 10s. will be required to
make up the above estimated expenditure of 1,343,0001. ;
and the guaranteed interest of 17s. 6d. per shale:, exclusive
of the sinking fund, is equal to 51 per cent, on this amount.
The scar ac NNiii be redeemable at' the par of 201. out of the
sinking fund by periodical drawings: It is prorosed, on the
completion of the line, to issue separate coupons in series,
available for 10 years each. One of these coupons will re-
present the guaranteed interest, and the other the dividends
on the extra profits of the line. The former rill expire on
the redemption of the share at par ; but the latter will cen-
time in force during the period for which it may have been

issued.

A sum for interest during construction 'has been included
by the Russian Government in the fixed capital : and 5 per
cent. per aunum will therefore be paid on all calls until the
opening of the whole line.
The sharehoMeis wiil enjoy, during the whole period of the
concession, the entire profits, which, upon a most careful
calculation, based upon the existing traffic, show a rate of 15
per cer t
The Railway will connect with Riga the three capitals—St.
Petersburg, Moscow, and Warsaw. The line runs for limey
the whole distance through a district, the cultivation of
which would bear comparison with that of any other country;
and, independently of the through trade, there can be no
doubt that the local traffic, both in goods and passengers,
will form an important and increasing item in the receipts of
the line.

As an instance of last year's traffic, it would have required
two full trains of 35 waggons each per day, for the whole
shipping season (say six months), to have brought down the
flax alone shipped last season from Riga. Nor will the pro-
jected Libau line injure these prospects ; but, on the con-
trary, acting as a feeder from Koursk and Orel, it would
bring the produce of these provinces (hitherto shipped at St.
Petersburg) to Dilnaberg ; a fair share of which would natu-
rally go for shipment to the important port of Riga, saving
thereby nearly 100 miles of carriage.
All Crown lands are given for the purposes of the Railway,
free of all expense.

All private lands required may be taken at the low tariff at
which the Imperial Government acquires private land.
All material, such as stone, gravel, sand, clay, &e., may
be taken free from the Crown lands.
All rails, locomotives, and whatsoever is required for the
Railway, may be imported, duty free, from any country.
Since the above estimates and calculations were, made, the
Directors have received the highly satisfactory intelligence
that the Municipality of Riga has placed at the disposal of
tha Company, gratuitously, whatever land belonging to the
city may berequired for this railway. This laud in the town
itself, iu the suburbs, and on the line of the road, is calcu-
lated at about 56 versts, or about 37 miles ; and this valuable
acquisition will effect a considerable reduction in the esti-
mated cost of the land.

The Directors, in conclusion, congratulate the shareholders
upon the exceedingly favourable terms they have succeeded
in obtaining beyond those originally contemplated, and sub-
join a summary of the principal advantages gained beyond
those set forth in the original prospectus,

_ .
1. The line baying-been shortened, and many important
modifications allowed, a smaller capital is required, which
increases the amount of the dividends.

2. The term of the concession has been extended from 56
to 75 years, dating from the opening of the whole life dur•
ing which time the entire irofits belong to the Company.
3. A sinking fund of one-eighth per cent., instead of one-
half, is now sufficient to redeem the capital.
4. The gratuitous grant of ail the land belonging to the
municipality of Rica which is requisite for the railway.
5. In consequence of the amount of the shares being re-
duced, and their number limited by the statutes to 81,600,
an additional 10s. per share (i.e. 161. les instead of 161.) be-
comes necessary to be called up to meet the estimates ; but,
as the guaranteed interest on the fixed capital is equal to 5}
per cent, on the estimated capital, the extra per emit. on
the 161. 10s. is equivalent to 15 per cent, on the additional
lOs which far exceeds the terms originally offered.
The official documents and letters, trgether with the cal
culations and estimates, are open to the inspection of any
shareholder, upon his application at the offices of the Com-
pany.

A-. call, equal to 1L on each 20L share, will be shortly re-
quired, of which due notice will be giveu.
liy Order of the board.
J. W. WARM; TYNDALE, Secretary.
17, Ciracechurch-street, May 8 1857.