The Sun.
London, England, 1868-05-22 00:00:00

ISSUE of FURTHER CAPITAL for the COMPLETION
of WORKS CONSTRUC TED under a CONTRACT,
whereby the GOVERNMENT of INDIA have AGREED
to PAY for ALL- WATER SUPPLIED for IRB[GA•
TION, forming a GUARANTEE AGAINST LOSS by
NON-PAYMENT of WATER RATES, such WORKS
having also COMMENCED to YIELD RETURNS.

D THE EAST IN DIA IRRIGATION AND
CANAL COMPANY.
Incorporated by Special Act of Parliament, whereby the
liability of each shareholder is limited to the amount
payable upon his shares, or the amount of his stock.
'SCHEME OF OPERATIONS.
4, THE ORISSA UNDERTAKING."
Second issue of capital of 4000,000, to consist of shares
of £lO each, and stock in sums varying from £lO each up-
wards.
Deposit upon shares £1 por share, with liberty to pay up
the remaining £9 or a less amount in advance of calls.
Deposit upon stock £lO per cent. upon application, and
the remainder within three months atter allotment.
Interest at five per cent. will be paid half-yearly upon all
deposits from the Ist July next, and upon, all payments (in
advance of calls and in payment of stock) made before that
day, from the same time, and from the day of payment if
made after that time.
In the allotment of shares a preference will be given to
those who shall have paid in full or to any extent in ad-
vance of calls.

DIRECTORS.
JAMES TH0M.40,!.E3q., Chairman.
Lieut.-Ca:del-Jan Grintes,lllol et the H.E.I.C.S.
The Hon. Arthur Kinnaird, M.P.
Lieut.-Colonel Wm. Campbell Onslow, late of the Mysore

Comthission. --
General Sir George Pollock, G.C.8., G.C.5.1., &c.

SECRETARY.
John Westwood, Esq.

ABRIDGED PROSPECTUS

The circumstances under which subscriptions are now
invited by this Company, to a further issue of capital, are
peculiarly favourable for investors, and present the
strongest evidence of the sound and profitable character of
the undertaking, to complete which an additional outlay
is required.
As they are now planned, and being constructed, the
canals will, when completed according to the estimates of
many engineers most competent to judge, including Colonel
Rundall and the present chief engineer of the Company,
convey water for the Irrigation of about 700,000 acres.
Adopting a temporary rate of charge for irrigation, and
estimating the returns from navigation at the very mode-
rate total of three per cent. upon the outlay (the present
chief engineer has just reported that lie estimates the re-
turns upon the Tidal Canal will be at, least ten per cent.),
and allowing the Bill} charge of five per cent. for repairs,'
inaiatenance,'establistunont,,eic., the net returns from the
sectiouslickw -to be completed would bet altogether twelve
per 'cent., Which,day, the 're-establishment of the original
rate of five rupees per acre for" irrigation, would be mild
•
up to tyfenty,one per *Gut. net.
These are figureir.tha,ac,Suracy of which can be easily
demonstrated, and 'any inquiry made regarding them at
the
rtmt inPoan given.soffices will
beat once replied to, and every
information
The prospect of an immediate aid extensive spread of
irrigation, and therefore of a satisfactory increase upon
the existing returns, is highly encouraging. By reports
received on the 3d of the present month, and dated the
30th March, it appears that there had then been signed,
connected with the Kendrapara Canal alone, leases (prin-
cipally for 3 years) for about 26,00) acres ; that applica-
tions from cultivators of land under the same canal were
being received at the rate of from 2,000 to 5,000 acres
daily ; and that the natives were cutting the smaller
channels necessary to convey the water to their fields
with earnestness; further, that in the vicinity of the high
level canal meetings were being held by the Zemin-
dare, and other unmistakable signs exhibited teat
the same favourable state off affairs there as
that connected with the Kendrapara Canal was
a mere matter of a short time, and that before the coming
season largo demands will be made for water. Upon the
Midnapore Canal' the effect of the reduction of the water-
rate, &c., had not, at the end of March, been thoroughly
ascertained, because the irrigating portion of that canal
had been closed for some time previous for construction
purposes, and had then only been reopened, but the chief
engineer of the Company and the executive engineer in
charge reported that applications for water, in addition to
the 4,000 acres supplied last year, had commenced and
were confidently expected to be added to largely.
The works already constructed have now entered upon
their stage of revenue, and they offer to capitalists not only
a safe investment, but one which will, most assuredly, be
very profitable ere long; and here it may be added, as
confirmatory of this inmost immediate prospect, that the
portions of the works now in band remaining to be exe-
cuted, consisting mainly of channels for the distribution of
the water, will necessarily bo thoessiest of construction, as
well as the most productive, and will add materially to the
percentage of returns on the whole outlay.
There is also another feature of great importance, which
must not be omitted in the consideration of the fitness of
this undertakiny, for au investment. By the contract it is
expressly provided that the Company shall be paid for the
water supplied for irrigation to the cultivators—not by the
cultivators themselves—but by the Government of India ;
and that the price to be so paid by the Government to the
Company for such water shall be, the price charged to the
cultivators, and shall be fixed so as to represent a fair
charge for the water to the parties using it. With refe-
rence to this stipulation, it has been acknowledged by the
Government that they alone are liable in respect to the
non-payment for water supplied, so that the Company are
released from all fear of liability to loss of any portion of
their water-rate. Tho value of the foregoingarrangement
can hardly be too highly prized, forming as it does a cer-
tain and safe guarantee of payment for every portion of
the water supplied for irrigation.
It has been determined by the Directors to limit, at any
rate for the present, the expenditure to about £130,000
per annum, whereby they will be enabled to make all fu-
ture calls small in amount and at regular stated periods,
not exceeding on tli
year ; at the same time they are enabled by the Act of In-
corporation to issuewhole X 2 per share during each
the required capital partly in shares
of £lO each, and partly in stock divisible into sums vary-
ing from .flbePwacish;a plan which will suit the con-
ve n iwrdestre to limit their liability to
a fixed sum at once, and to bo relieved from future
calls, and also those who may prefer to pay the amount
of capital held by them by easy instalments in the shape
of calls.
Applications for Shares and Stock may now be made by
ece of those
filling up and forwarding either of the accompanying Forms
to the Company's Offices, 8 and 9, Queen-street-place,South-
wark-bridge, Loudon, R.O. (where a full Prospectus and
Forms of Application may be had); but it is necessary
that it should be understood that no application will be
considered unless a deposit of £1 on each share, or of ten
pounds per cent. upon the amount of stock applied for,
bas been made either to the Bankers of the Company,
Messrs. Ransom, Bouverie, and Co., No. 1, Pall Mall East,
or at the Offices of the Company. The Deposit will be
returned without deduction if the application is not ac-
ceded to.