New-York tribune., 1871-05-04

....-..................-....-- 5S2,243
Roughly speaking, the working expenses may be esti-
mated az fifty per cent of the gross receipts the net
profits therefore, the year 1865 would have been
about S5OOOO, which would be equal to dividend OF
little over per capital of OOOO The Metro
pOtan road however, paid per cent, and this SYSTEM
which has since led most Of the financial troubles of
The Metropolitan was justified the following princi-
ple: BY an English law, If you take por-
lion of a house field for public improvements,
you are compelled TO purchase the whole building
or property The Metropolitan Road therefore, became
possessed of large quantity of surplus lands which
they estimated at high price, and claimed as an asset
TO be deducted the nominal capital Of the concern
Unfortunately the value OF these odds and ends Of lands
is much impaired by the proximity OF the railroad;
and up the present time the sales and rents OF the
lands possssse by the Company, can never even ap
prexmate the estimates formed Of them In its ac-
counts.
THE SYSTEM EXTENDED.
However, In England. and / suppose In most other
countries 40 long shareholders get large dividend,
they TO inquire how 1t is earned. The fact
that the Metropolitan Road paid per cent, with an
only haf-cOmpieted lne and a presumably half unde-
veOped traffic. created run on underground lines; and,
81 oneha the schemes projected had ever been carried
out there would not have been single main
thOroughfare in all London without suberranean rail
road beneath its surface. The whole subject
feTed to Parliamentary committee, and finally
mort was issued in favor of what called the elmer
Circle system The general principle Of this scheme was
that circular underground line to be constructed
of which the Metropolitan 10 form the northern
TIE circle, when completed, was to run from Farrngdon
IT, 10 the Tower the east then it TO turn west
ward and passing close by CannOn-st and Ludgate Hill,
was TO run under the Thames Embankment, then
f course OF construction to Westminster; thence II
10 pass northwest through Belgravia, Chelsea, and
Brompton till IL reached its NEST westerly point at Ken
sngton and was be connected finally with the west
ern end Of the old Metropolitan, by line traversng
Noting Hill and Bayswatcr. There were also routes
laid down for direct north and south lines connecting the
southeast points Of the circle it would be more cor
rect 10 say OF the elpse. These cross lines, though
stn talked Of have not yet been commenced, and the
completion Of the circle itself has been abandoned as 1t
would seem, indefinitely.
Experience has proved that the Metropolitan Road
would have done wisely to remain contented with s
original section But the shareholders were intoxicated
with their apparent success, and beRudsed the posi-
bty of other specuatOrs sharing in their profits 30,
an arrangemen: was made, by which the Metropolitan
Road undertook TO construct the sections from Earring
dOns 10 the Tower In the East and from Paddngton TO
BromptOn in the West, while an affiliated Company the
metropolitan District" set on foot TO carry Out the
section from BromptOn to the Tower, via the Thames
Embankment 1t would take too great space TO give
even an outline Of the various financial difficulties by
which the progress Of these extensions was impeded
After the panic 1885, the stock OF the Metropolitan
Road became favorite object Of attack by the Bears
Of the Stock Exc hange, and the unsatisfactory char
Peer OF its accounts afforded an opening for appii-
cations TO Chancery which increased its embarraSs'
nents The Metropotsn district In straits for capt
tai from its inception, and how the line constructed
all is ono OF the many yet unsolyed mysteries Of
railway fnaneiering. 10 is enough 10 say that the
Western extensions successfully eauied out; but
that the Eastern proved complete 1ascO. The
metropolitan got far Moregate-st; thetetropolitan
district far Blackfrisrs, and viii In few months
DC opened TO Csnnonst. Further east, however both
lines decline going They would have TO cut their way
through the most crowded parts Of the ciy and the
cost OF the property they wOud have 10 purchase
would preclude the completion Of the line even
II the companies hsd-what they have not
the funds Hhcreyith to purchase at all.
They have paid heavy cOmpensat escape carry
ang ogt contracts into wLeS they had entered ald for
aU years to came there IL pr0sp ct Of ibe ia" "d-