Omaha daily bee., 1889-06-20
To Penetrate the Heart of Africa on
Stanley's Trail
SUCCESS is ABOUT ASSURED.
Plans aud Finance Thoroughly Con-
sidered-Thc Belgian Govern
ment Interested - The
Rates Established.
Report ct the Committee.

pany, having completed the preliminary
study of the projected Congo railway from
Matadi to Stanley Pool, have presented the
results of their Investigation in report
made by the permanent committee. From
this document it appears, first, that the cost
of the railway, with gauge of seventy-ive
centimeters, has been estimated at 25000,OOO
francs including the interest charged on the
capital during the period of construction
secondly, that the expenses of working the
road calculated on basis of one train in
constant circulation on the line, may be esti-
mated at 100000 francs year:
third, that the gross receipts assured to the
railway will amount, at minimum, to the
sum now expended IN the district of the
cataracts for transportation on mems backs,
and that IL appears, from statistics produced
on the subject. that these expenses amountto to
more than 9 100000 francs year.
These facts prove that q railway can be
made to pay its running expenses, and also
to give remuneration, from the start, to
the capital invested in it, which will keep
pace with the economy and commercial de-
velopment of the Upper Congo region. Under
these conditions there are good reasons for
the establishment of Congo railway, with the
aid OF the Belgian government, and with
tie assistance of capital raised in Belgium
and in other countries, which will preserve
to the enterprise the international character
that its projectors desire it to have.
The capital Of the company will be fixed
at 25, 900, 900 francs, divided as follows: A
stock capital of 10, 100000 francs, which will
have prior right to the net profits to the
extent of 80 per cent Of the capital, as
guaranteed interest, but which will not par
of stock, entirely paid up when the
company is formed, are to be taken
up by the Belgian government, and the in
terest of 81 per cent will be paid on them
during the period of construction, which will
be charged to the account of cost of first es-
adjustment. An additional capital of
1900 600 francs in common stock, and hav-
ing right to 81 per cent interest concur
rently with the preferred stock, on the first
profits The common stock will be then en-
titled to first dividend of 80 per cent In
addition, a table will be prepared for the
formation of a sinking fund. with which to
pay off, at par, in period &c of
ninety-nine years, 10000 shares of the
preferred, and 80, 600 shares of the common
stock subscribed at 500 francs each, at 1000
francs.
butluR tIc pcTlOu VI uSpiou;
of common stock will be entitled to receive
interest at the rate of Z per cent per annum
on the amount of the paid up capital After
the deduction of the reserve, the annual sum
necessary in order to pay the interest on the
capital and to provide for the sinking fund
will be, in round numbers, 1,451, 600 francs
that is TO say, 362, 800 francs as interest of
the 81 per cents and for the sinking fund
for nav at Of the oO OO0 sharaS
OF preferred capital, and LOSS, 800 francs for
the guaranteed interest and first dividend of
the Z per cent on the common stock and for
the sinking fund necessary to pay off these
shares at 1000 francs each.
If the profits of any year do not allow the
payment of this annual sum of 1,45O00O
francs the difference will be carried forward
with added interest to the following year, in
order that the two classes of shares may re-
ceive the stipulated interest before any sub.
sequent profits can be applied to any other
payments.
The surplus of profits after the payment of
the above annual charges shall be divided as
follows; Fifty per cent to the common stock
not paid off from the sinking fund, and to
the shares issued to take the place of such
stock 10 per cent to the board of directors;
of these shares Will be assigned to the syndi.
cate of subscribers to 10000 shares of com.
mon stock, or one founders share to
every ten shares of common stock.
1t will also be stipulated that
the profits arising from any source
other than working the line; as for example,
the revenue from the sale of 655, 400 hectares
of land, granted the company by way of sub
vention, will be applied to the sinking fund.-
The freight and passenger rates will be-
Up country freight, 1000 francs per ton
This rate Is the same as the present cost of
Transportation on the backs of men. Down
country freight, 200 francs per ton, on the
average with differential rates of freight
according to the value of the merchandise
rarried-ivory for example, paying the max
imum of 1000 francs and palm OIL the min
imum of $50 francs. Passengers, 800 francs
Tor single fare; this rate is what it now
costs fon journey from Matadi To Stanley
Pool, or vice versa.
The following are the estimates as to the
traffic of the road First, train con-
stautly on the line would take two days to
make the run up country, and tho same
length of time to return, or, say, ninety
round trips during the year, tho carrying
capacity of each train TO be fifty tons. Es.
timating the paying freight to be for each
up-counJry trip one-half the carrying capa-
city of the train, or twenty-five tons, and of
80 per cent of the carrying capacity for each
down trip, or forty tons, and also passen-
ger traffic Of 400 travellers, the following
may be set down as the receipts First, the
up trip, $50 multiplied by 90 equals 1850
tons, at 200 francs, 2,25O,0oo francs. Sec
ond, the down trip, 40 multiplied by 80
equals $500 tons. at 200 francs is 10000
francs. Third, the passenger traffic, 800 pas
sengers at 800 francs each, 10000 francs;
total, 3,l20,000 francs.
Cost of operating the limo; Fixed ex-
penses, 1000, 900; for variable expenses, 2OO,.
600 francs; net results 100000 francs, de.
duct per cent tor the reserve $1,000 fancs,
leaving the profits for distribution, I.Sa4, 900
francs, OF which there will be needed, In
order 10 pay 3IS per cent on the preferred,
and per cent on the common stock, aud for
the sinking fund, I,450.000 francs; balance
874, 200 francs. OF this available balance of
$4,000 francs there will be distributed so
per cont 10 the common stock, viz: 1S7,0 COO
francs or Q francs 23 centimes per share, as
an additional dividend. 40 per cent 10 the