The sun. [volume] (New York [N.Y.]) 1833-1916, 1899-05-21
risk an application to the Hous. Of Commons.

thp ~ " SuDluOt, " Il III
from the Treasury Just before I starred for
Egypt. On my return I submitted q further
plan on your behalf-that 10. that II they would
not undertake a guarantee for the northern ex-
tension they might at least guarantee the line
from VryburR TO Bula wayo. / received q reply
last week. and II was to this efrect-that while
being willing TO undertake that guarantee. the
conditions we're such that, after consultation
with the Chartered Company and the directors
OF the Bechuanaland Company. they did not
see their way to accede to II. We were there
fo.e faced with the position that the line one
has most at heart. and really the line that is
the best thing in the interests Of the country
for 1T Is OF no use holding northern Rhodesia
unless you develop it-seems to be postponed
to the Greek Kalsnds. Fortunately. however.
after n discussion with our directors. and after
a great deal OF consideration. We came to the
conclusion that we, would build the line to the
limits Of your territory.
The amount Of the guarantee asked for was
100000 to extend the railway In the direc-
tion OF the Zambesi. we.received a blank re-
fusal as to that. but we thought II was most es-
sential that we should go on with the develop
ment OF our own territory. The iuea Of going
to Egypt may come in the future: but we have
to look to the development OF your territory
as a practical point. The drst step we took.
tneTclOT6. was tndt VIC WeuI 10 oN0Ty Ou0 o I tH0
companies who hold claims. and we received
most satisfactory SUPPORT from them. for they
have subscribed for from f45O. 900 to E500.O0O
for the extension OF the railway on the basis
of3 per cent. That will carry us for $50 miles.
Although l think the best course to pursue
would be by public tender. still one Of the old
contractors has offered to build this line, equal
to the Cape line. from Bulawayo to the Globe
and Phoenix. $50 miles. for f3.2O0 per mile. or
In all f4S0, 600. Taat will leave $50 miles
more to do in our own territory from the Globe
and Phoenix to the bou adary OF your territory.
which is con.erminous with the German En-
peror's. How are those $50 miles to be buit2
Il am going to submit to you a plan. and
you must not be In the least alarmed. because
you will find that. supposins that you feel not
justified In supporting II. l can get the money
on the same basis. 1t is not an unknown coun-
try to us. We have had surveys. and the
whole track has been traversed to Tanganyika.
and | am justified In stating that that line can
be built for $4,000 per mile. or f3. 900.
How are we going to get that money? The
proposition agreed to by the directors Is as
follows: We propose to raise f3. 600 at 4
per cent. When / say we l mean the Bechu-
analand Railway Company. but It will have to
be guaranteed BY the chartered COMPANY. 80
this company will do It,. That $4,000. 900.
however. 10 not required for four or five years.
because We cannot build more than 200 miles
a year. We are still 800 miles away from the
boundaries.of our territory. so It Is fair to sup
pose t~hat:it:will.take us from four to four and a
hall years to build that railway. and we have
received from the gold companies sufficient
to construct $50 miles. The balance repre-
sents f3.O00.OO0 more. We propose to issue
that amount. but as II will take Ave years to
spend IL. there is not the slightest occasion why
the money should lie at the Bank OF England
at . per cent. We therefore propose to ask for
f600.000 q year In five equal installments.
spreading the expenditure over four to five
years. The first installment will be paid now
and the second a year hence; two payments
will come In the first year. 1t therefore means
5000. 900 payment a year by any one dsslrous
to contribute to the line.
We'll. you may say. surely no one will do
that. But we must go on. The person paying
1t will receive 4 per cent. and to put an amount
that will make IL clear to you we will say that
e person taking f10O of debentures will pay
up 'f2O. on.which he will receive 4 per cent.
his remaining payments being spread over
four years in five equal installments. You
may ask. do you propose to give anything else2
Yes. we propose to do this. We hold 625.O0O
unissued shares OF the Chartered Company.
The shareholders are continually writing, ask
ing us what We are going to do with them.
We are not anxious to put.them on the market.
but at the same time l think that the share
holders would like to know the future Of those
shares. We require nothing for administra-
ton. because l may tell you that at this mo-
mept we possess f2.O0O.O0O. That is for ad-
ministration and the development Of the min
ing. but in each case where we have sub
scribed to support a mining development the
public have taken up the shares. 30 we have
not been called upon to contribute practically
anything. and. as l have said. we still possess
f2.OOO.000. We therefore do not require any
further money for ADMINISTRATORS. SO that any
money which Is paid up for this railway would
be simply lying In the Bank Of England. We
consider that I'VE only require f6OO.OOO per
annum for the mex. four years. and we pro-
pose to allot to those who take these deben-
lures at 4 per cent. the unissued 625. 900
shares of the Chartered Company"
That IL Mr.. Rhodes's plan for building one
section OF the Cape to Cairo railway. and the
announcement Of 1t has caused a serious fall
in the price Of the Chartered Company's shares.
The course Of events since tho meeting seems
to indicate that the unfavorable impression
created has led Mr.. Rhodes &c adopt an alter
native or rather an additional policy In further
ance OF his scheme. Public opinion might In
duce.the Government to reconsider It's refusal
to guarantee the railway scheme. The only
wav in which public opinion could be aroused
in the matter is in connection with the Trans
vaal grievances. and evidence abounds that
without any fresh incentive assiduous efforts
IRE being made to work UP public Indignation
on the subject. There was nothing really In
cendiary in Mr.. Rhodes's speech upon this
point. This was his only direct allusion to
the subject:
There is n neiRhboring State to us produce
ing f17. 100000 OF gold per annum. and what
has it been doinG2 1t has been around every
bourse in Europe for the last two years to
borrow E2.000.0 900. and what is the result1
That 1t cannot do It. 1t is causing unrest in
Africa. and II will do so until those people
who have been invited to develop the wealth
OF that country share in the civil rights. There
is a picture for you-a picture for tho people
Of England. We. a small and a now State.
have obtained during the last seven weeks
including the funds necessary for admlnlstra-
ton which we're obtained shortly before that
nearly ~E1O.OOO.OO0. while our friends adioin-
ing us. producing at 100000 per annum. can