Iron County register., 1896-10-22


to stimulate traffcs Of the Uruguayan lines
to some extent, as trade was, in many in
stances, diverted from its usual channels aad
a number Of Rio firms established branches az
Monte Video, so as to carry on their business
as far as possible from Rio. 1t Is doubtful,
however, If tho disturbed state of great
neighbouring country can really prove an ad-
vantage in the long run, and there is, there
fore, no reason for anticipating falling OF IN
traaics now that the civil war In Brazil has
come to an end. On the other hand, it nay be
anticipated that some Of the new business
attracted to Monte Video has come to stay.
The Central Uruguay group Of railways makes
up its accounts annually to June 80, and sub
mits the same In October. Interim reports for
the halfyear ended December 81 last have been
issued, the important featGre Of which is the
favourable rate of working expenses, a con-
siderable increase in traf5cs having entaiie3 no
corresponding rise In expenditure, the rate
for the half-year Of the Central Uruguay
of Monte Yideo having been 1919 Per
cent, against 56.32 per cent. in the cor
responding period of 1852. During the
six months covered by the interim report the
gross receipts were E134, ,499, against sll9,269
in 1s92-an increase Of .el6, 6,250; but, as will
be seen from the above figures, the traffcs
now show an increase Of as much as
G39,444. After deducting working expenses
and fixed charges, dispesatle balance Of
s33, ,497 was left at the end o= lsss year, out Of
which an interim dividend for the half-year at
the rate Of 3 per cent. PER annum was paid,
carrying forward . balance Of 9s,497. A very
satisfactory feature Is the fact that the improve
msnt in the traffic is general, being distributed
over passengers, wool, hides, grain, -four, build
ing material, dc. The country has, however,
especially benefited by wool-chp which was
the best ever known there, and, as it is
estimated that at least half of this is still
being held back by the sstdnceros, IN the hope Of
| better prices, traffic prospects from this source
are promising. What future dividends the
Central Uruguay may be able to pay, il is,
perhaps, premature to discuss. It used to
| pay regular G per cent, and as late as
| lS69-90 the distribution was Z per cent, for
| Ie90-9I per cent. but the bad times reduced
| the dividend to per cent. in 1s9l-g2, and to
percent. in 1928. There is no doubt, however,
| that the. company IS now recovering from tho
setback it has experienced, and that the share
holders may at no distant date enjoy again q
| dividend Of, say, per cent, although for the
| current year higher dividend thaa 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, be considered in the first
| instance. The extensions were 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 traAics ranging
from 47I to 60, according to the weekly earn
| ings. For the half-year ended December 81
the Eastern Extension paid dividend at the
rate of per cent. to its shareholders, after full
payment of debeEture 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 besn
paid very punctualiy ever since the settlement
| Of the Uruguayan debt. It may here be stated
that the terms Of the guarantee are to the effect
that it can be renounced by the companies a
long as the receipts from the lines do not exceed
4 per cent. on the share capital. At the pre-
sent time thsregsnue, apart from the guarantee
Of the Eastern Extension sufices not Oily tc
pay the full debenture interest, but ieaveSs sub
stantialarnount towards the dividend on %e share
capital and the question viii probably ar Be at nc
distant date as to whether the step of Snounc.
ing the guarantee should not be taken, ID order
to cancel the contingent liability accruisg on
account of the guarantee already received ron
the Government. In the case Of the Northsg e
Extension, which is not doing SO we'll As To
Eastern, the period for considering the renun'
cation Of the guarantee is, Of course, more
remote, and it would, in any cases be somewhat
speculative move.
The other two Uruguayan railways-the Mid
land Uruguay and the Northwestern o.
| Uruguay-haYs been under a cloud for con
siderable time. The former had to submit t.
! reconstruction under which the debeuture in
serest has been reduced from per cent. Il
4 per cent. per annum for four years from
May ], 1892, and to per cent. for the I've fol
lowing years, after which the full per cent
interest is to be resumed. On these terms th'
debenture interest has since been paid regularly
the Urugusyan Government punctually payint
the guarantee on 9 new and reduced basis and fol
the year 1898 dividend Of per cent. hai
been rid on the shares. The increase in trahc
for the current financial year ought, subject t
| working expenses, to benefit the shareholders
The North Western of Uruguay had ais
to accept reduction In the guarantee; bui
Under the funding scheme Of 1891 the arrears
up to the end Of that year we're met II
new Consolidated Three and-a-HaM per Cent
Uruguay Bonds, and although the COMPANY
. uotfourishing, it Is making = certain arneuni
Of-prOGsss, and the next annual report WI