The Sun.
London, England, 1857-04-16 00:00:00

LYONS AND MENTFRRA NEIN RAILWAY.

The Journal des Chemins de Fer, referring to the at-
rangement entered into for the amalgamation of the Lyons
and Mediterranean railway, says :—" In our last number
we indicated the basis on which the amalgamated capital
was to-be constituted and divided ; but if we were per-
fectly correct in stating that the Mediterranean shares
would serve as the type -and would be divided into two,
whereas the Lyons Company would receive six shares of
the amalgamated. company for four of its pre-
sent one, the same was not the case with re-
spect to the aggregate of the capital. New capital
is to he formed, first of 90,000 Mediterranean shares,
divined into two, or 180,000 in all ; and next, of
265,000-Lyons shares, which, being divided in the pro-
portion of six new•for four old, give 397.500, or, for both
the companies, a total of 577,500.• It is asked what
will be the probable revenue fir the new shares, and in
what prOportion the new lines Whioh are to be construct-
ed, and the reductions of tariff which' are imposed on
them, may modify the future fortune of the amalgamated
company. As capital, in taking as the starting
point the present . quotation of shares, we will first
establish the price of the new share :—For the Medi-
terranean, at the • price of 2,1501 r., with a dividend
of 85fr. due in• a month, which reduces it to
2,0651 r., the value of the share at the present time,
the price will be 1,0321 r. 50c, For the Lyons, in
taking:for basis the quotation of 1,580 fr. and deducting
the dividend to be received of 501., the price of the share
will be 1,5301., or. 6,120 f. for four shares, consequently
the new share only represents a value of 1,0201. As to
the probable revenue, it . is necessary, in order to estab-
lish its to examine in the first place what was the pro-
f duce for 1856. A Mediterranean share produced in that
year 110 f. ; four Lyons shares at 75f. each, 3001., making
together 4101., which for eight new shares represents
52f. 50c. each. For 1857 the probable revenues are,
• according to the receipts—for one Mediterranean
share 1401., for four Lyons shares (100 f. each), 4001.,
making together. 540 f. for eight new shares, or 67f.
50c. each. These calculations are not founded on
mere hypothetical provisions, and represent only
the minimum revenue to be hoped for, thanks to
the system adopted for the construction of the lines,
which have been conceded in exchange for the amalga-
mation, and by the approaching absorption of the Grand
J Central. In the first place, the company is authorised
to i,,sue bonds for the amount of the new works con--
ceded to it. A special account will consequently be
Opened for all the works relative to the new lines, and
that account will be debited not only with the expenses
of the. construction, but also with the interest of the
bonds which will have bean successively issued. No
charge wilt, therefore, for ten years be imposed on the
revenues of the amalgamated company, which, on the
contrary, will every year see its receipts augmented by
the increase of the traffic resulting from the completion
of new sections and their junction with the line from
Paris to Marseilles."