The evening bulletin. [volume] (Maysville, Ky.) 1887-1905, 1896-10-31

The civil war in Brazil he's probably tended
10 stimulate trafcs Of Tire Uruguayan lnos
TO some extent, as trade was, 10 many in
Staace5, diverted from its usual channels, and
q number OF Rio irIas established branches AZ
&c1to Video so as 10 carry on their business
as far as possible from Rio. II Is doubtful,
however, il tho disturbed state OF a great
neigLSouging country can really prove an al
vantage iu the long run, and there IL, there
fore, 10 reason for anticipating falling of in
traifcs now that the civil war in Brazil has
como to an end. On the other band, it may DO
anticipated that some az the new business
attracted to Monte Video has come to stay.
The Central Uruguay group of railways makes
up its accounts annually 10 June 80, and sub
mits the same IN October. Interim reports for
the bali year ended December 81 last have boon
issued, the important feature Of which is the
favourable rate Of working expenses, a con-
siderable increase in trGdics having entaile1 no
corresponding rise in expenditure, tao rate
FOR the haif-year Of tho Central Uruguay
Of Monto Vidso having been 1919 per
cent against 5G32 per CEN. in the cor
responding period Of 1892. During the
six months covered by thu interim report the
gross receipts were cl34, f99, against GllS,269
in l892-an increase OF Gl6,230; but, as will
be seen from tho above fsures, the t.alics
now show an increase Of as much as
f39,444. After deducting working expenses
and fixed charges a Gisposable balance Of
C3S,497 was left at the end of last year, cut oil
which ar interim dividend for the half-yelr at
the rate OF per cent, per annum was paid,
carrying forward balance Of cs,497. A very
satisfactory feature is the fact that tho improve
msnt in the traffic is general, being distributed
over passengers, weol, hides, grain, Hour. build
ing material, &c. The country has, however,
especially benefited by woo!-clip which was
thu bost ever known there, and, as it is
estimated that at least half o! tai5 Is still
being held back by the es,ancieros, in the Lope of
better prices, traffic prospects from this source
are promising. What future dividends tho
Central Uruguay may be able to pay, it is,
perhaps, premature to discuss. 1t used to
pay a regular per cent, and as late as
lss9-Q0 tho distribution was per cent, for
le9Q-9l per cent. /; but the bad times reduced
the dividend to . per cent. in 1912, and 20
percent. in 1928. There is no doubt, however,
that the. company 10 now recovering from the
setback it has experienced, and that the share
holders may at no distant date enjoy again
dividend Of, say, per cent, although for the
current year higher dividend than from to
Al per cent is hardly expected.
In discussing the position Of the Central
Uruguay OF Monte Video, its connection with
the Eastern and Northern Extension Companies
must, Of course, TO considered in the first
instance. The extensions we're instrumental in
reducing its dividends during the last two
years, but they are now commencing to con-
tribute to the earnings Of the parent company,
which has an arrangement for working the lines
for percentage OF the gross trafics ranging
from AZ to GO, according to the weekly earn
ings. For the halfyear ended December 81
the Eastern Extension paid dividend at the
rate Of per cent. 10 its shareholders, after full
payment Of debenture interest, the distribution
by the Northern Extension Company being
at the rate OF 81 per cent. This result
was, OF course, obtained with the aid OF
the Government guarantee, which has been
paid very punctually ever since the settlement
Of the Uruguayan debt. II may hero be stated
that the terms Of the guarantee are 10 the effect
that it can be renowned by the companies as
long as the receipts from the lines do not exceed
per cent. on tho share capital. At the pre-
sont time the revenue, apart from the guarantee,
OF the Eastern Extension suhices not oily 10
pay the full dsbenture interest, but leaveYa sub
stantlalamount towards the dividend on 10 share
capital, and the question will probably ar BE at no
distant date as to whether the step Of rtnounc-
ing the guarantee should not DO taken, il order
to cancel the contingent liability aocruiAg on
account Of the guarantee already received HON
the Government. In the case Of the NortHan
Extension, which is not doing 30 well as IN
Eastern, the period for considering the renunN
citation Of the guarantee is, Of course, more
remote, and It would. in any case, be somewhat
speculative move.
The other two Uruguayan railways-the Mid.
land Uruguay and the Northwestern Of
Uruguay-havs been under cloud for con-
siderable time. The former had TO submit 10
\ reconstruction under which the debenture in.
terest has been reduced from per cent. TO
per cent. per annum for four years from
May ], 1892, and 70 5 per cent. for the Eve fol-
lowing years, after which the full Q per cent.
interest is 70 be resumed. On these terms the
dsbenture interest has since been paid regularly,
tho Uruguayan Government pupctuAlly paying
the guarantee on new and reduced basis, and for
the year ls92-93 . dividend Of per cont. has
been paid on the shares. The increase In traf1cs
for the current financial year ought, subject to
working expenses, to benefit the shareholders.
The North Western of Uruguay had also
10 accept q reduction in the guarantee; but
dnder the funding scheme Of 1891 the arrears
up to the end Of that year were met in
nav Consolidated Three and-a. Half per Cent.
Uruguay Bonds, and although the company
u not 6ourishing, 1t is making certain amount
az uronrasa and the maxi annual report will