RAILWAY AND GOVERNMENT
GUARANTEE.
WHICH IS PREFERABLE?
FACTS AND ARGUMENTS TO SHEW THAT GUARANTEED
RAILWAY STOCK OFFERS A BETTER INVESTMENT THAN
DO GOVERNMENT SECURITIES.
BY
JOHN WHITEHEAD,
(OF THE STOCK EXCHANGE.)
" UTRTTM HORUM MAVIS ACCIPE."
SECOND EDITION,
WITH ADDITIONS, ALTERATIONS, AND CORRECTIONS.
LONDON: SMITH, ELDER AND CO., 65, CORNHILL.
1847.
Pfice One Sliillhiij.
[ENTERED AT STATIONERS' HALL.J
J. Davy and Sovs, Printers, 137, Long Acre.
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RAILWAY AND GOVERNMENT GUARANTEE.
The object of this work, as its title page indicates, is to bring pro¬
minently under notice the relative merits of Eailway and Government
Guarantees.
Until within the last twelve or fourteen years the English and
Foreign Government Securities formed almost exclusively the only
media for investments. The extraordinary development of the
Eailway system has however produced a complete revolution in
this matter, and parties who, but a few short years since, would have
loudly deprecated such a proceeding, are now most eager to take
advantage of the acknowledged superior facilities offered by Eailways
for purposes of investment, over other, hitherto by them more
highly appreciated, means.
That the cloud of doubt and prejudice which hung over the Eailway
system, as one of property, should have remained so long undispelled
will surprise no one, who recollects the violent opposition which that
system encountered on its introduction. The South Eastern Eailway,
to which company the author had, previously to his becoming a mem¬
ber of the Stock Exchange, the honour of being Secretary, offers a
notable example of this most unhappy influence. The promoters of
that company laid out their original line to touch Maidstone and
A 2
4
Canterbury en roule to Dover, but the opposition tliey encoun¬
tered was too much for them, and the direct line, for which the
repentants are noAV eagerly petitioning the Legislature, (such is the
change which has come over the spirit, not of their dreams, but of
the realities which surround them) was abandoned, and the existing
line by the Weald of Kent sanctioned by Parliament—the same
being distant from Maidstone (which is now partially served by a
branch) 11 miles, and from Canterbury (also served by a branch)
17 miles. The South Eastern Company is now before Parliament
virtually to undo, at an enormous cost to themselves, that which, but
for the early obstinacy of the County of Kent, would never have been
attempted.
As a further illustration of the weight of prejudice which the Rail¬
way system has had to encounter, I would refer the reader to a most
interesting paper in the " Monthly Railway Record," on the subject
of " Railways, and their early history." A pamphlet,* now become
scarce, is there noticed, from which a few sentences may be extracted
with advantage ;
" Long before the Birmingham Railway is ready, such are the improve¬
ments now making in canals, not only may the charge be e.xpected to be
many times less than the railway, but the time now lost will be considerably
saved; and as a proof of the impotency of the Manchester and Liverpool
Railway to compete with water lines, it has not been able to obtain at the end
of three years, three months and a half, much above one-sixth of the whole
traffic ; nor even that, without a total failure as to profit. But granting
the Birmingham Railway secured even one-half instead of a sixth, the in¬
come estimated at 92,8201. would be reduced to 46,4lOl. The only chance,
* The paper iii question is a review of a work, entitled " Railroad Impositions
detected, or Facts and Arguments to prove that the Manchester and Liverpool
Railway has not paid One per Cent. Nett Profit." " Railroad Impositions detected,
or Facts and Ai-guments to prove that the Manchester and Liverpool, Birmingham,
Southampton, Windsor, Midland Counties, Greenwich, and nine other Railways are
and for ever must be Bubble Speculations. In two parts, by R. Cort, 1834." {See
Monthly Railway Record for March, 1847.)
í)
therefore, for the latter railway in the waggon department, must be con¬
fined to goods requiring extraordinary expedition; and these, comparatively,
are very few." » • *
"The Great Western Railway—Though probably it may reach as far
as Bath from Bristol, after having, like a mole, explored its way through
tunnels, long and deep, the shareholders who travel by it wiU be so heartily
sick, what with foul air, smoke, and sulphur, that the very mention of a
railway will be worse than ipecacuanha, especially when the only prospect
they can find the least cheering in the midst of all this derangement of
their stomachs, will be a granite tramway, actually in operation, along side
of their own dose of ipecacuanha, ready to foUow up the black draught,
so as to get rid of every particle of obstruction with which the bottoms of
their pockets might be otherwise afflicted."
It will scarcely be credited, in times like the present, that such a work
as that from which these extracts are taken could have had any cir¬
culation. Through two editions, however, it certainly did pass, and
no doubt assisted to foster, if not to create, some of that prejudice
which subsequent experience, aided by the Railway Press—right hard
workers in the cause—is hourly dispersing.
That almost every railway which, to the present time, has received
the sanction of the Legislature, will sooner or later prove to be a
fair and remunerative property, there can be little if any doubt.
Many possess, of course, very superior merits over others, and I feel
persuaded that, with care in the selection, purchases made in the
present depressed state of the money marlcet, would ultimately turn
out very well; but my present purpose is not to dweU upon this,
which may be termed the speculative class of Railway Stocks ; I shall
confine myself here to the guaranteed lines, the non-guaranteed,
though otherwise offering ample scope for favoiuable observation,
being foreign to the object of these pages.
There are two classes of Guaranteed Stocks, the one partaking of
a fixed unalterable dividend, or per centage; the other having a
minimum interest guaranteed, and participation in surplus profits
6
added. In some cases, this prospective advantage will prove of much
worth ; in others, of little value, possibly of none at all. As a general
rule, however, the reversion is by no means to be despised.
So far as my experience extends,—and it has been considerable,—
the doubts which I have found to exist respecting the stability of
Guaranteed Kailway Stocks, may for the most part be traced to igno¬
rance of their nature, and fears of the binding character of the gua¬
rantee. As no means of getting at information in an authentic shape to
solve these doubts are accessible, I have, in the following pages, en¬
deavoured to the best of my ability, to supply this pressing want.
The data whence all my deductions are derived, I have sought in
every case to obtain from the Secretaries of the several Railway
Companies, and failing this, they have been carefully gathered from
the best available information. I could have wished to obtain all
from oflicial sources only, but in this I have to some extent failed,
and, much to my regret, in quarters where I least expected such dis¬
appointment. In every such case, I have given the authority upon
which the statements are based. It has, of course, been my study to
be accurate, but error being almost necessarily inseparable from a
work of this character, I have to request, from any quarter, a
friendly intimation of its existence, that it may be corrected here¬
after. A truthful elucidation of the subject is what I anxiously have
in view. In every case where I could, I have given the dates of the
Acts of Parliament under the powers of which the Guaranteed
Stocks have been created ; and I trust, by the kind aid of the Secre¬
taries and Solicitors of the several Companies, to render this impor¬
tant part of the work quite perfect in future editions.
A more favourable time than the present for the consideration of
the question thus brought prominently under notice, could not have
occurred; every description of security at the investor's command
being, through the existing monetary pressure, at a price low beyond
precedent. This state of things cannot continue; the pressure once
I
passed, and abundance, if not plethora, occupying its place, a consi-
siderable enhancement in the value of all Eailway Stocks must
follow. Those guaranteed in perpetuity by companies in receipt of
enormous incomes, and purchaseable, as many now are, at a price
which will give from 4J to nearly ßl. per cent, per annum for ever,
will be the first to feel the goodly influence of the coming* improve¬
ment.
It is for those who have the means, to avail themselves of the
golden opportunity now ofifered. Procrastination will lead only to
regret. Let the permanent-income seeker but make up his mind
whether or not present profits wiU satisfy him, and if he resolve in
the affirmative, immediate action should follow. No notion of doing
better to-morrow what can so profitably be done to-day, should be
suflered to interpose or to induce indecision. Prices may, before
matters right themselves, go even lower than they are at present, but
the investment once made in a judiciously chosen line, regret ought
not to ensue. To the permanent holder the varying prices of the day
are of no real moment, for whether they be higher or lower will not
affect the dividend by so much as one farthing. " Premium," or
" Discount," is not the proper test of the value of a railway. The
South Eastern Company will pay its guaranteed Shareholders their
dividend, the Great Western the same, and so also the Brighton and
other companies, whether the Shares are at 50 per cent, premium, or
' On this point, the following remarks of no mean anthority, (Mr. Glyn) made
by lum in Ins capacity of Chairman of the London and North Western Company,
at a meeting held on 9th April, 1847, are interesting :—"But although there is a
monetary pressure in the mai'ket, that does not furnish any reason for abandoning
those projects which have received your sanction, and which, on farther and full
consideration, we think ought to go forward—believing as I sincerely do that this
pressure on the money marlcet is really of a very momentary character; and fur¬
ther, that, by the time these projects come to be canied out, we shall be able
to do our duty to the public and to you, without any pressure upon you for that
purpose."
8
50 per cent, discount. Indeed, it would be well if parties who invest
their money in stocks guaranteed by such companies, never troubled
themselves at all about the prices of the day. Those need have no
fear, who have placed out their funds in a judiciously chosen stock,
possessing the guarantee of a Company of known and proved re¬
sources. The stock to be sought after should be of a marketable'
kind ; such being always to be purchased at a cheaper, and sold at a
better, rate than the scarcer or less appreciated commodity.
One other consideration which should operate with the investor,
and induce decision, is the undeniable fact that Eailway Companies
will cease, at the earliest moment in their power, to create preferential
stocks. Such shares are never desirable, and are only had recourse
to from expediency in times of extreme urgency. The companies
will therefore always limit the creation of such shares to as small an
amount as they can ; and as a natural consequence, that amount can
never become very considerable. Moreover, as times improve, these pre¬
ferential shares will advance in value, so as to be purchasable only at
rates which, compared with the present, will be very high ; and thus, of
course, the stock will yield a much lower per centage in consequence
of that increased cost, than is to be obtained from it if secured at
the present time.
With these preliminary remarks, I shali proceed at once to shew—
1st. That as Securities, the Guaranteed Eailway Stocks are as safe
as Government Funds.
2nd. That they are entitled to greater favour than the Government
Securities.
3rd. That without exception, for an equal amount invested, a much
larger income is to be obtained from them than can be got from the
Funds.
As respects the first proposition, each description of investment is
equally protected by law: the Government Funds by their Acts of
f)
Parliament, the Guaranteed Railway Stocks by theirs. The divi'
dends on the Funds are provided for by the public taxes ; the dividends
on the Guaranteed Railway Stocks are provided for out of the revenue
of the Guaranteeing Companies,—with this strong security that the
Guaranteed must be satisfied, the next in order after the Mortgage
Creditor, before the Guaranteeing party can divide one farthing. The
parties guaranteed retain, too, the fee simple of their own property,
with a lien also on the revenue of the mortgagees.
As respects the second proposition, railway investments are entitled
to greater favour, because in no case can the guaranteed per centago
ever be reduced; while it is notorious that the Chancellor of the
Exchequer for the time being must always have a desire to reduce
3 per cents, to 2^ per cents., and so on.* There is no hope oi'
increase from him, whereas some of the Guaranteed Railway Stocks,
besides the minimum per centage which they are sure ever to receive,
may, and in many cases must, get considerably more from parti¬
cipation in surplus profits. The Guaranteed hi. per Cent. Stock of
the Glasgow, Kilmarnock and Ayr Company is an example of the
worth of this " make weight." That stock, guaranteed at hi. per
cent, minimum, now receives 11. per cent., being the rate of division
last made on all the stock of the company. There are many
instances of this class open to the investor, and if he be satisfied with
the certainty of receiving the minimum guaranteed, he has, as in the
* If the past be not sufficient to prove this, the following extract from a speech
of the Chancellor of the Exchequer, on discussing the recent loan of 8,000,000/.,
will surely do so. It is copied from the Morning Herald of the 2d March, 1847.—
" The Chancellor of the Exchequer, in briefly replying to the obseiwations of the
hon. members for Montrose and Coventry, said that .all former Chancellors of the
Exchequer had pursued a course similar to that which he then followed, under the
like circumstances. It had been said by no mean authority, that all notion of
cxtinguishmg the national debt was little bettor than chimerical ; and the best thinej
they could do, would he to take measures to redïice the annual amount of charge ichich
the payment of its interest was upon the country.^
10
case quoted, the prospect of being a considerable gainer by the
contingency.
As respects the third proposition, the following figures wiU demon¬
strate its correctness. The case assumed is 1000Í. to be invested,
and the rates taken are those which existed 24:th April 1847.
£1000. in
Consols, would
at 86 purchase
£1162. I5s. 9d.
Stock, and give
ail annual divi¬
dend, at 3 per
cent., of
£34. 175. 8d.
£1000. in the
Eastern Coun¬
ties, No. 1, X 5.
per cent. Per¬
petual Guaran¬
teed Stock, at
apreniiumof 5$.
on every Share
(£g. 135. 4d.)
would give an
annual dividend
of
£48. 45.
£ 1000. in the
Birmingham &
Gloster £6. per
cent. Guaran¬
teed Stock at
X123.per£100.
Share, would
give an annual
dividend of
£48. 155.
£1000. in the
London, Brigh¬
ton, and South
Coast (late
Croydon) Gua¬
ranteed £ 5. per
cent. Stock, at
£9. 5s. for every
Share of £9.
would give an
annual dividend
of
£48. 125.
£1000. in the
London and
Greenwich £ 5.
per cent. Pre¬
ferentially Gua¬
ranteed Stock,
at £21. 55. for
every £ 20.
Share, would
give an annual
dividend of
£47.
The above are mere examples taken at random, as the reader will
find, on referring to the data which follow these remarks.
Since the foregoing observations were penned, there has appeared
in the April number of the work from which I have already quoted,
(The Monthly Railway Record) a very sensible article on the subject
of Railway Guarantees, a few extracts from which may be of interest
at this moment:—■
" Thus railway security, while giving the same guarantee which the
public funds can claim, as identified with the faith of men of property
and the permanence of social order, presents elements of a substance
beyond what all these imply. It has security in itself, independent of the
prestige of an idea." « * *
" It will at once be understood, from the tenor of our remarks as to the
species of security on which men may reckon in the public funds, that in
no conjuncture of events, save in that of the extreme convulsion which we
cannot anticipate, and which all the sense and respectability of the nation
would deplore, need permanent danger be apprehended to the sacred
rights of the public creditor. We put the principle to its extreme issue,
11
for the purpose of eliciting and acknowledging the strength of the ground
on which the fundholder can rest. It is right to do this ; for our further
duty then arises of asking attention to the truth, that every kind of security
which the funded investment olfers, in its firm hold on those bonds of
public honour that constitute the strength and glory of England—that
every security of this kind is possessed by the railway, in addition to its
faculties of private, convertible, independent solvency, and which the
most praiseworthy patriotism will hardly ascribe to the public debt. The
ultima ratio of thorough solvency is the characteristic of the railway. Its
credit does not depend on what it has raised and spent, but includes the
great consideration of what it has acquired and possesses. In this rests
its peculiar and impregnable advantage, in addition to all that it holds in
common with every competitor in the market."
" Thus in every light from which its character can be viewed, the railway
offers security more stable, under all contingencies that may arise, than
any other class of general investment upon which money can possibly be
advanced. We have here nothing to do with the policy of landed invest¬
ments, our business being chiefly to examine the respective claims of the
two great borrowing competitors of the day. After every favourable
admission of the soundness of the national credit, we may modestly hope
that we have disproved all reason for any distinction unfavourable to the
railway. The arguments we have submitted consist of those plain truths
that can be judged in their integrity by every intelligent man :—and we
are intensely persuaded that a prudent use of them may bring much benefit
to the monied, not less than to the railway, interests."
Having thus, I hope, proved the superior merits of Guaranteed
Railway Stocks over the Government Funds, I conclude by givi''g
for the Investor's guidance the official facts, which I have been able
to gather, respecting stocks of this character. The materials are
classed under two heads, namely, " Guarantees sanctioned by Parlia¬
ment," and " Guarantees for which the sanction of Parliament is
sought."
London,
2, Royal Eachanye Buildings,
"¿Hh April, 1847.
INDEX.
GUARANTEES SANCTIONED BY PARLIAMENT:—
PAGfi'
Arbroath and Forfar 13
Blackburn, Clitheroe and North Western, 1846 13
Birmingham and Gloucester 14
Bi'istol and Gloucester 14
Buckinghamshii*e 15
Clydesdale Junction 15
Eastern Counties 16
Glasgow, Paisley and Greenock 17
Glasgow, Paisley, Kilmarnock and Ajt 17
Glasgow, Garnkirk and Coatbridge 18
Gloucester and Dean Forest 19
Leeds and Bradford 20
London, Brighton and South Coast 20
London and Greenwich 22
Lowestoft 23
Norfolk 23
North Union 24
Northern and Eastern 24
Oxford, Worcester and Wolverhampton 25
Preston and Wyre 25
Reading, Guildford and Reigate 26
St. Helen's Canal and Railway. (Runcorn.) 27
Southampton and Dorchester 27
South Wales 28
West Loudon 29
Wilts, Somerset and Weymouth 30
GUARANTEES FOR WHICH THE SANCTION OF PARLIAMENT
IS SOUGHT:—
Abordare 31
Berks, and Hants. Extension 31
Boston, Stamford and Bh'mingham 32
Cheltenham and Oxford 33
Colchester, Stour Valley, Sudbury, and Halstcad 33
Dundee and Arbroath 34
Dundee and Perth 35
East Anglian 37
East Lincolnshire 39
Edinburgh, Leith and Granton 41
Exeter, Yeovil and Dorchester 41
Exeter and Crediton 42
Glasgow, Barrhead and Neilston Direct 42
Glasgow, Kilmarnock and Ardrossan 43
Glasgow, Paisley and Greenock 44
Great North of England, Clarence and Hartlepool Junction ... 45
Hartlepool Dock and Railway 46
Lancaster and Preston 46
Leeds and Thirsk 47
London, Oxford and Cheltenham 47
Lynn and Dereham; Lynn and Ely; Ely and Huntingdon 48
Norfolk 49
Royston and Hitchin 50
Scottish Central 51
Sheffield, Rotherham, Barnsley, Wakefield, Huddersfield & Goolc 52
Stirling and Dumfermline *. 54
Taw Vale 54
Windsor, Staines and South Western 55
Wishaw and Coltness 55
GUARANTEES SANCTIONED BY PARLIAMENT.
The Per Centage, except ^fhes otherwise shewn, is calculated on the
Shares as if eullt paid up; and those Stocks only are noticed which have
Guarantees in perpetuity, or where an existing option of redemption has
not been exercised. The Great North of England and the Hull and Selet
being under notice of redemption, are therefore excluded.
ARBROATH AND FORFAR RAILWAY.
Incorporated 19í/í May, 1836.
This Line has been leased by the
Aberdeen Railway Company at 5;^ per
cent., and half surplus profits, with the
option of holding the average profits of
the first five years of the lease as the rate
of payment, on account of profits in all
time thereafter.
The lease commences from 1st Feb¬
ruary 1848. It has been approved by
both Companies, and a Bill giving effect
to it was obtained in the Session of 1846.
The Arbroath and Forfar Railway is
a line of 16 miles in extent, and was
opened throughout early in 1839.
The principal of the foregoing facts
have been kindly furnished by George
Keith, Esq., the Secretary of the Aber¬
deen Railway Company.
The Share Capital of the Aberdeen Railway Company is £830,000. A
Bill is before Parliament this Session (1847) for the amalgamation of the
Great North of Scotland Company with the Aberdeen, the Share Capital
being £1,500,000., so that if this be passed the Share Capital of the guaran¬
teeing body will be £2,330,000.
The £25. Shares of this Com¬
pany were nominally, on the
20th AprU, 1847, at £27.10s.,
giving, if a purchase were made
at that price, and the guarantee
now operative, £4. 15s. &d. per
cent, per annum in perpetuity,
irrespective of the contingent
advantage that may be derived
from the half profit clause of
the lease; or on £1000. invested
an income of £47.15s. per year.
BLACKBURN, CLITHEROE, AND NORTH WESTERN.
Incorpoî'ated 21th July, 1846.
This Company have issued 8000 Prefer- These Shares on the 8th May,
ence Shares of £25. each, these are gua- 1847, stood purchasable at 15s.
ranteed £G. per cent, on calls and in prem. per share, giving there-
perpetuity when fully called up, with a fore £5. 17s. \d. per cent., or
rateable division of surplus profits. £58. 10s. lOd. per year on
£1000. invested.
The authorized Capital of the amalgamated Blackburn, Darwen and
Bolton, and Blackburn, Clitheroe and North Western Companies, (the
guaranteeing parties) is £1,333,000.
H' GUARANTEES SANCTIONED BY PARLIAMENT.
BIRMINGHAM AND GLOUCESTER RAILAVAY.
Incorporated 22nd April, 1836.
This Line is leased to the Jlidland
Railway Company under a guarantee of
a fixed G per cent., with an option to the
lessees to redeem the same after 1849 on
paying £50. per cent, premium to the
proprietors.
The lease has been sanctioned by
Parliament under an Act passed in the
Session of 1846.
No attempt to exercise the option of
redemption has yet been made by the
Midland Company.
The shares (£100. each) were
purchasable at £ 123. per share
on 24th April, 1847 ; it follows
therefore that a purchase made
at that price would, until the
option of redemption is exer¬
cised, give a dividend of
£4. 17s. Gd. per cent, per an¬
num, or on £ 1000. invested an
annual income of £48. 15.9.
,The Guaranteeing Company have an authorized Share Capital exceeding
£ 10,000,000., and are in receipt of an annual revenue of about £1,000,000.
BRlS'j'OL AND GLOUCESTER RAILWAY.
Incorporated 1st July, 1839.
This Line is, with the approval of Parliament, leased to the Midland
Company, on the same terms as is the Birmingham and Gloucester.
The Shares £50. each (£32. paid up) were nominally at £42. on 24th
April, 1847 : it follows therefore, that a purchase made at that price would,
until the option of redemption is exercised, on the amount called up, (£32.)
give a dividend of £4. lis. bd. per cent, per annum, or when the whole
£50. is called up, £5. per cent.
£1000. invested in these Shares would give on the £32. paid up an
annual income of £45. 14s. 2d. which would be increased to £50. when the
remaining £18. per share is called up.
The above facts connected with the Birmingham and Bristol lines have
been gleaned from Parliamentary Records.
GUARAXTEES SAXCTIOXED BA" PARLIAAIEXT.
ir.
BUCKINGHAMSHIRE RAILWAY.
Incorporated 2ßth June, 1840.
This Line has been leased in perpe¬
tuity to the London and North lYestern
Company, on a guarantee of £4. per
cent, on the cost, and half the surplus
profits.
The lease was approved by the pro¬
prietors, at a meeting on the 9th Maj^,
184G ; and the terms of it arc embodied in
the Act of Incorporation.
The Proprietors of the London and
North Western Company have likewise
ratified the lease.
The foregoing facts have been kindly
supplied by the Secretary, Wyndham
Harding, Esq.
The Guaranteeing Company is in receipt of an annual income approaching
£2,000,000. sterling, and has an authorized Share Capital of £22,000,000.
The Shares of this Company
(£17. 10s. each) were purchas¬
able at 17s. Qd. dis. on 8th
May, 1847, giving, therefore,
on a purchase made at that
price, a certain dividend of
£4. 4s. per cent, per annum,
or on £1000. invested an an¬
nual income of £42.
This is without reference to
the surplus profit part of the
arrangement.
CLYDESDALE JUNCTION RAILWAY.
Incorporated 8 9 Vict., c. 160.
These Shares (£50. each,
£ 30. paid), were at a premium of
£12. on Gth May, 1847; it
follows, therefore, without re-
This Line has been amalgamated with
the Caledonian Kailway Company, on the
following terms ;—
The Clydesdale Shareholders are gua¬
ranteed a minimum dividend of £G. per
cent, per annum, upon their stock, from
the date of the opening of the Line, or
from the 15th August, 1848, whichever
may first happen—£4. per cent, being
paid on calls till then.
By Clause 20 of the Act, sanctioning
the amalgamation, Clydesdale Sharehold¬
ers may require the Caledonian Company
to redeem their shares, or any number of them, by the payment of £25.
premium on every share; the same (£75.) to be paid in equal annual
instalments on 15th August, 1850, 1851, 1852, and 1853. This option
ceases, unless exercised before the 15th August, 1849. The form of notice
is settled in the Act, which bears date 18th August, 184G.
The foregoing facts are taken from the Act legalizing the arrangement,
and from a Circular, bearing date 22nd August, 1846, addressed by
Mr. Alexander Grahame (the then Secretary) to the Clydesdale Shareholders.
The Guaranteeing Company have an authorized Share Capital of £4,000,000.
ference to the contingent sur¬
plus profits, or the option of
redemption, that a purchase
made at that price would give a
perpetual minimum dividend of
£4. 10s. per cent, per annum,
or on £1000. invested, an annual
income of £45.
k;
guarantees sanctioned by parliament.
ICASTERN COUNTIES RAILWAY.
hworporated ith July, 1836.
This Company has issued two Classes of Preferential Shares;—
Eastern Counties No. 1 Perpetual £ 5. per Cents.
This Stock, £960,000. in amount,
was created by resolution of the Proprie¬
tors, at a meeting held 10th January,
1844, and is confined to its £5. per
cent, guarantee, neither participating in
new shares, nor having other prospective
advantage.
These Shares (£6. 13s. 4ef.
each) were purchasable at
£6. 18s. 4tf. per share on 24th
April, 1847, giving, therefore,
a dividend in perpetuity of
£4. 16s. bd. per cent, per an¬
num, or on £1000. invested an
annual income of £48. 4s.
Eastern Counties No. 2 Perpetual £ 5. per Cents.
This Stock, £960,000. in amount,
was created by resolution of the Proprie¬
tors, at a meeting held 30th April, 1844,
and has been confirmed by Act of Par¬
liament, bearing date 4th July, 1844.
This Stock is also confined to its £5.
per cent, guarantee, neither participating
in new issues, nor having other prospec¬
tive advantage.
The foregoing facts have been kindly
furnished by the Secretary, C. P. Roney,
Esq.
These Shares (£6. 13s. 4(f.
each) were purchasable at
£6. 15s. lOif. per share on 24th
April, 1847, giving, therefore, a
dividend in perpetuity of £4.18s.
per cent, per annum, or on
£ 1000. invested an annual in¬
come of £49.
The No. 1 and No. 2 Stocks
are really at the same price—
the No. 1 having three months'
dividend attached to it, the No.
2, on the contrary, having just
received its dividend.
The Eastern Counties Company are in receipt of a revenue of about
£550,000. per year, and have an authorized Share Capital of about
£8,500,000.
ÖUARAN'TKES SANCTIONED BA' PARLIAAIENT.
17
GLASGOW, PAISLEY AND GREENOCK COMPAÑA'.
Incorporated 15f/i
This Company have issued Preference
Shares, as per the following resolutions,
agreed to at a meeting of the Proprietors,
held 13th September, 1843, and under
powers contained in an Act, bearing date
27th June, 1843. £1. 10s. per share
only has been paid up on these shares.
" 1. That the Capital of this Company
be increased to the extent of £150,000.
by the creation of 20,000 new shares of
£ 7. 10s. each."
" 4. That the holders of such new shares
shall be entitled to receive a preferable
half-yearly dividend, at the rate of G per
cent, per annum, for ten years, on all
sums paid by them on the said shares, in
obedience to calls made by the Directors
of the said Company, and after the expi¬
ration of the said period of ten years, at
the rate of 5 per cent, per annum."
" 6. That if the profits of the said undertaking shall at any time be
sufficient to pay a higher dividend on the whole paid up capital of this
Company, than is hereby secured to the New or Preference Shares, the
holders of the said new stock shall be entitled to participate in such
profits in the same manner as the holders of the present stock of this
Company."
July, 1837.
These Shares (£7. 10s. each)
were purchasable on 15th April
1847, at 2s. Gd. prem. per share,
it follows, therefore, that a pur¬
chase made at that price would
till 1853, give, on the £1. 10s.
paid up, a dividend of £5.10s 8t7
percent, per annum. This would
then be reduced by £ 1. per
cent.
£1000. invested in this class
would give till 1853, at the £6.
per cent, rate, a certain annual
dividend of £55. 7s.
This Company are under ar¬
rangements of amalgamation
with the Caledonian Company
for tei-ms—see page 43.
GLASGOW, PAISLEA', KILMARNOCK & AYR RAILWAA'.
. Incorporated \ bth
This Company have issued one class of
shares, to which a preferential dividend
of £5. per cent, is guaranteed, and par¬
ticipation in surplus profits added.
The traffic having of late years been
sufficient to pay a dividend of £7. per
cent, on all the stock of this Company,
these preferential shares have received
that rate also; they were issued under
the powers contained in one of the early
Acts of the Company.
The above information has been ob¬
tained from the Secretary of the Com-
p.any, J, F. Smith, Esq.
July, 1837.
The shares (£12. 10s. each)
were purchased at £15. 12.s. Grf.
on 20th April, 1847 ; it follows,
therefore, that a purchase made
at that price would give a cer¬
tain dividend of £4. per cent,
per annum; but assuming the
present revenue of the Com¬
pany to continue, £5. 12s. per
cent, would be the return.
£1000. invested would give
a certain annual income of £40.
or £50. if the present traffic
rate be taken as the guide.
18
GUARANTEES SANCTIONED BT' PARLIAMENT.
GLASGOW, GAIINKIRK & COATBRIDGE RAILWAY.
Incovporatcd '2Gfh May, 182G.
Tlie following particulars are taken
from the Railway Chronicle of the 3rd
April, 1847;—
" Glasgow, Gaknkirk and Coatbridge.
—In reference to the meeting of the
Glasgow General Terminus it may be
convenient to notice the official statement
made of the terms between the Glasgow,
Garnkirk and Coatbridge and the Cale¬
donian, whereby the latter acquire the
former and its appurtenances. The lease
is in perpetuity, on the terms, of which
the following is an abstract:—1st: 8 per
cent, per annum to be paid, half-yearly,
on the called-up stock (£150,355.4s. 2c/.) ;
and a premium of £ 15. 10s. per share, in
cash, in respect of the last issued shares,
of which a quarter has only been called
up. 2. The Caledonian, if they take cer¬
tain portions of the ground acquired by
the Glasgow, Garnkirk and Coatbridge,
adjoining the new station in Glasgow, to
pay such additional price, or feu-duty, for
the same, as it may be found to be worth
beyond what is paid for it by the Glasgow,
Garnkirk and Coatbridge. The station or
depot ground to be paid for by the Cale¬
donian, at the average price of the whole
ground acquired there by the Glasgow,
Garnkirk and Coatbridge. 3. The Cale¬
donian to have power to buy up or redeem
the per centage aforesaid, at twenty-two
years' purchase; their resolution to do so
to be declared and acted on within two
years after the 31st of December 184G.
4. The premium above mentioned, on
the uncalled-up shares, to be paid on the
31st of December 184G, at which date
The Shares of this Company,
£25. each, were purchasable at
£39. on 20th April, 1847 ; it
follows, therefore, that a pur¬
chase made at that price, would
give a certain dividend of
£5. 2s. 6d. per cent, per annum,
or on £ 1000. invested an annual
income of £51. 5s.
GUARANTEES SANCTIONED BY PARLIAMENT.
19
the Glasgow, Garnkirk and Coatbridge
shall be taken possession of by the Cale¬
donian, and the whole of the arrangement
come into eifect. 5. The whole obliga¬
tions of the Glasgow, Garnkirk and Coat¬
bridge were to devolve on the Caledonian
at the 31st of December 184:6; and the
latter to have the right, at the same
period, to all the property, assets and
privileges, of the Glasgow, Garnkirk and
Coatbridge."
This arrangement has received Parlia¬
mentary approval. *
The Guaranteeing Company has an authorized Share Capital of
£4,000,000.
GLOUCESTER AND DEAN FOREST RAILWAY.
Incorporated 21th July, 1846.
This Line is leased in perpetuity to The Shares (£25. each) are
the Great Western and South Wales not on the market.
Companies, under the powers contained
in clauses 6 and 7 of the Act of Incorpo-
tion. The lease was approved by the
Proprietors of the Gloucester and Dean
Forest Line, at their first half-yearly
meeting, 21st August, 1846, and subse¬
quently so by the Great Western and
South Wales Companies.
The terms are a minimum guarantee
of £4. per cent, and division of surplus
profits.
The foregoing facts have been kindly
supplied by the Secretary of the Com¬
pany.
The Guaranteeing Companies have a joint Share Capital of £11,000,000.
The South Wales £3,000,000., and the Great Western £8,000,000. The
South Wales line is in formation. The Great Western is in receipt of a
present gross revenue exceeding one million sterling per annum.
B 2
20
OUAIlANTEESi SANCTIONED BA' PARLIAMENT.
LEEDS AND BRADFORD RAILWAY.
Incorporated 4i/i July, 1844.
This Line has, nnder the powers of an
Act passed in the Session of 184G, been
leased to the Midland Railway Company
for a term of 999 Years, at a fixed rental
on the capital (£900,000.) of £10. per
cent, per annum.
The lease was approved by the Mid¬
land Proprietors, 25th July, 1846, and
by the Leeds and Bradford Company,
26th August, 1846.
The terms are really, a present £5.
per cent., and a future £10. per cent.;
the latter to come into operation three
months after the opening of the line from
Shipley to Colne.
The foregoing facts have been ex¬
tracted from the Railway Record.
The Guaranteeing Company have an authorized Share Capital exceed¬
ing £10,000,000., and are in receipt of an annual revenue exceeding
£1,000,000. sterling.
The Shares of this Company,
£50. each, were purchasable at
a premium of £43.10s. on 24th
April 1847, it follows, there¬
fore, that a purchase made at
that price would give a certain
dividend, after the opening to
Colne,.of £5. 7s. per cent, per
annum, or on £1000. invested
an annual income of £53. 10s.
£40. per share has been called
up—the balance (£10.) to make
the whole £50., will in due
course be called for.
LONDON, BRIGHTON AND SOUTH COAST RAILWAY.
Incorporated 15í/í July, 1837.
This Company have two classes of Preferential Stocks, one termed
" Croydon £ 5. per Cent. Guaranteed " ; the other, " London and Brighton
£5. per Cent. Preference Shares."
Ceoydon £5. pee Cent. Guaeanteed.
These Shares are thirds of £9. each,
and were created under powers contained
in the Croydon and Epsom Act, and by
virtue of resolutions of the Projjrietors,
bearing date 22d August, 1844.
Holders are entitled to convert them
into full Shares of the Company at any
time hereafter; it is clear, however,
that this option will remain of no
worth until Brighton Shares exceed
£75. in market value.
The Shares were issued by the London
and Croydon Company previously to its
These Shares (£ 9. each)
were purchasable at £9. 5s.
per share on 24th April 1847,
giving, therefore to a purchaser
at that price a certain divi¬
dend of £4.17s. 2d. per cent, per
annum, or an annual income on
£1000. invested of £48. 12s.
GUARANTEES SANCTIONED BY PARLIAMENT.
21
amalgamation with the Brighton Com¬
pany ; by the amalgamation arrangement,
Croydon Shares were taken as of the value
of £18. 10s. each, in the Capital Stock of
the amalgamated Companies, Brighton
Shares ranking as of £50. value.
The foregoing facts have been kindly
supplied by the late Secretary of the
defunct London and Croydon Company,
R. S. Young, Esq.
London, Beighton and South Coast £5. per Cent. Preference Shares.
These Shares were created under ex- These Shares (£50 each) have
isting Parliamentary powers by the Pro- not been dealt in, except as
prietors, at a meeting held FebL 19,1847. 15ths.
The following is a copy of the resolutions :
That the sum of £307,525. be raised
by the creation of Shares of £50. each,
bearing interest in perpetuity at the rate
of £5. per cent, per annum, from the
respective times of payment of the deposit
and call aftermentioned ; such interest to
be payable on the 15th August and 15th
February in each year, unless the Pro¬
prietors thereof shall elect, on or before
the 31st December, 1848, to forego such
interest, and to rank as ordinary Share¬
holders of the Company ; in which case they
shall be entitled to participate in the gene¬
ral dividends of the Company, from the
30th June or 31st December prior to their
making such election, as the case may
be. And in the event of any holder of
such Shares electing to participate in the
general dividends of the Company pre¬
vious to the 30th June next, interest will
be chargeable from the 1st January last,
to the periods when the deposit and call
become payable."
" That the holders of such shares shall
not be entitled to any of the privileges of
Shareholders, but only to interest at £5.
per cent, until they shall have elected to
participate in the gcner.al dividends of
the Company."
The foregoing liicts are extracted from official documents published in the
" Railway Times."
The Annual Income of the Guaranteeing Company is about £350,000.
per year, and the authorized Share Capital amounts to nearly £3,500,000.
22
GUARANTEES SANCTIONED BY PARLIAMENT.
LONDON AND GREENWICH RAILWAY.
Incorporated llth May, 1843.
ïliis Line has been leased to the South The £5. per cent. Guaranteed
Eastern Kailway Company for 999 years. Shares were purchasable at
The lease has been sanctioned by an Act, £21. 5s. each on April 14, 1847,
bearing date 21st July, 1845. it follows, therefore, that a pur-
The terms, (which were submitted to chase made at that price would
the Proprietors of both Companies, on give a fixed dividend in perpe-
10th Sept. 1844, and then approved) tuity of £4. 14s. per cent, per
are a rental of £36,000. per year, com- annum, or on £1000. invested
mencing from 1st January, 1846; to in- an annual income of £47.
crease £1,000. per year for ten years. The Unguaranteed Shares
and the then rent, £45,000., to be the were purchasable at £9. each
amount thereafter payable. on 19 th April 1847, it follows.
The Company have a class of Shares therefore, that they would give,
which have a preferential guarantee of at that price, a present dividend
£5. per cent. This £5. per cent, is on of £3. 14s. per cent, per annum ;
the nominal amount of the Share, (£ 20.) this, however, would grow every
the real amount paid up being but £18. year, as per the annexed state-
17s. 6d. After satisfying these Preference ment,untill854,when£5.11s2(7
Shares, the rent will give per share as per cent, would remain the fixed
follows :— s. d. return.
g g £1000. invested would give
j^g^g 7 2 present annual income of
jg^g J g £37. and a prospectively in-
jggQ g J creasing one till 1854, when
jggj g J it would stand at £55. lis. 8d.
2gg2 ' 9 0 average per centage is
1853 9 6
1854, and ever afterwards ...10 0
The chief portions of the above information have been obtained from the
Secretary, H. Adron, Esq.
The Guaranteeing Company have an authorized Share Capital of about
£9,000,000., and the present amount of its gross annual revenue exceeds
£ 400,000.
GUARANTEES SANCTIONED BY PARLIAMENT.
23
LOWESTOFT RAILWAY.
Incorporated 30tk June, 1845.
This Line has been leased to the The Shares (£20. each) are
Norfolk Company, under the powers of not on the market,
an Act passed in the Session 1846, on a
guarantee of £4. per cent, on the capital,
and half surplus profits.
The Norfolk Company having recently
entered into leasing arrangements with
the Eastern Union, the latter will of
course, should Parliament ratify the
bargain, take this Company under its
charge also; if, however, any obstacle
should arise to prevent the arrangement
being completed, nothing can affect that
concluded between this and the Norfolk
Company.
The foregoing facts have been ex¬
tracted from the Eailway Papers.
The Eastern Union is under arrangements of amalgamation with the
Ipswich and Bury Company, the joint Share Capitals of the two is
£1,750,000.; that of the former being £300,000., and the latter
£1,450,000. The Eastern Union line is open, and its gross revenue is
about £30,000. per year.
NORFOLK RAILWAY COMPANY.
Incorporated \3tli June, 1842.
These Shares (£20. each)
have £10. now paid on them.
They stood purchasable at par
on the 8th May, 1847.
This Company, under powers con¬
tained in an Act bearing date 16th July,
1846, passed the following resolution at
a meeting of the Proprietors held 13th
August, 1846, and issued Shares accord¬
ingly:
"That, pursuant to the powers con¬
tained in the Company's Act of the present
Session, an additional Capital of £300,000.
be raised, in 15,000 Shares, of £20. each,
and that the proprietors of such Shares
be guaranteed a dividend at the rate of
£5. per cent, per annum, in preference
to and before any dividend shall be paid
upon the other Stock and Shares of the
Company, but shall not be entitled to any
further participation in the profits of the
undertaking, nor to any future creation
of Capital."
For further particulars respecting this Company, see page 48
24
GUARANTEES SANCTIONED BY TARLÍAJÍENT,
NORTH UNION RAILWAY.
Incorporated 22d April, 1831.
Tliis Line lias, under the powers of
an Act passed in the Sessions of 1845,
been leased in perpetuity from the 1st
January, 1846, to the London and North
Western, and Manchester and Leeds
Companies.
There are two classes of Stock—that
termed A. being the North Union proper,
in amount £477,320. 14s.; that termed
11. (£222,673. 6s.) being that of the
Bolton and Preston.
The A. stock is guaranteed £10. per
cent.—the B. £7. per cent.
The above has been collated from
Parliainentry Records.
The Guaranteeing Companies have a joint Share Capital of nearly
£25,500,000., and an annual revenue exceeding two millions and a half
sterling.
The A. £ 100. Stock was pur¬
chasable at £210. on the 14th
April 1847, it follows, there¬
fore, that a purchase made at that
rate would give a certain divi¬
dend in perpetuity of £4.15s. 'àd.
per cent, per annum, or on
£1000. invested an annual in¬
come of £47. 12s. &d.
The B. £100. Stock was
nominally at £149. on 23rd
April 1847, it would, there¬
fore, give £4. 14s. per cent, per
annum, or on £1000. invested
an annual income of £47.
NORTHERN AND EASTERN RAILWAY.
Incorporated 4.tli Juhj, 1836.
This Line has been leased to the
Eastern Counties Company for 999 years.
One proportion of the Stock is guaran¬
teed a minimum dividend of £5. per
cent, per annum, with participation in all
new issues of shares; and when the
Eastern Counties divides amongst its own
shareholders more than 5 per cent., then
a rateable proportion of such excess is to
be divided also.
The other proportion of the Stock is
guaranteed a minimum dividend of £6.
per cent., and a further rateable propor¬
tion of the overplus, when the Eastern
Counties divides amongst its own pro¬
prietors more than £6. per cent. This
class does not participate in new issues of
shares.
The above are the terms of the leasing
arrangements. The Act authorizing the
lease bears date 23d May, 1844.
The foregoing facts have been kindly
Secretary, C. P. Roney, Escj.
Tlie Eastern Counties are in receipt
£559,(100. per year, andan authorized .Sh:
The Shares are £50. each.
This Class of the Northern
and Eastern Shares was pur¬
chasable at £56. per share
on 24th April 1847, giving,
therefore, a perpetual certain
dividend of £4. 9s. 2id. per cent,
per annum, or an income on
£1000. invested in them of
£44. 12s. M.
This Class was purchasable
at £ 60. per share on 8th of
May 1847, giving, therefore,
a perpetual certain dividend of
£5 per cent, per annum, or an
income on £1000. invested in
them of £50.
These calculations have re¬
ference to the permanent divi¬
dend only.
supplied by the Eastern Counties
of an annual revenue of about
ire Capital exceeding £8,500,000.
GUARANTEES SANCTIONED BY PARLIAMENT. 25
OXFORD, WORCESTER AND WOLVÊRHAM:gTiON
RAILWAY, ■=. : :■ - \V; i- V'.
Incorporated Aíli.Aicgvsi,'\d:i5.'_ ;
This Line is leased to the Great Wes- ; .The tTais Company
tern Kailway Company in perpetuity, at ^(Ti'O.'each) Vere purchasable
4 per cent, on the cost, and participation at £8. 10s. discount on 24th
in surplus profits. April 1847, giving, therefore,
The Act of Incorporation authorized a certain dividend, when the
the leasing, a special clause to that efiect, whole £50. is paid up, of
in favor of the Great IVestern Railway £4.16s. 4rf. per cent, per annum,
Company, having been introduced into or an annual income of £ 1000.
the Bill. invested of £48. 3s. id.
The terms originally arranged were SJ per cent. ; this was, however, ad¬
vanced to £4. per cent., and with the lease sanctioned by the proprietors of
both Companies, the Great Western on 12tli February, lt-46, and the
Oxford, Worcester and Wolverhampton Company 27th February, 1846.
The above facts have been kindly furnished by R. T. Smith, Esq. the
secretary, and C. A. Saunders, Escp of the Great M'estern.
The Guaranteeing Company is in receipt of an annual revenue exceeding
one million sterling, and has a Share Capital of about £8,000,000.
PRESTON AND WYRE RAILWAY.
Incorporated ith July, 1834.
This Line is amalgamated with the
Manchester and Leeds Company, under
powers ohtained by the latter, in an Act
bearing date 3rd August, 1846.
The original arrangement having been
considered too complicated, has been
modified, and in place of an annual rental
commencing at £ 38,000. for the year
1847, and progressing until 1853, when
it was to have become fixed at £54,300.
per year; it has been mutually agreed
that an average should be struck, and a
certain yearly payment made in place of
the previous sliding scale, this agreed
sum to continue till 1856, in place of
1853, when £ 54,300. per year is to be¬
come the annual rental ever afterwards.
The rate per cent., the average rent for
the first eight years would give, is stated in
the Railway Chronicle to be £7. Is. &d.
and for ever afterwards £7. 17s. 2cZ.
These Shares (£25. each)
were purchasable at £ 10. pre¬
mium on 24th April, 1847; it
follows, therefore, that a pur¬
chase made at that price would
give a dividend of £5. Is. per
cent, per annum, for eight years
to come, and ever afterwalds
of £5. T2s. 3í7. per cent., or
on £1000. invested, an an¬
nual income of £50. 10s. for
the eight years, and £56. 2s. 6(7.
in perpetuity after then.
The 1st Class preference
shares are of about the same
value as the old shares.
The 2nd Class, on account of
their peculiar character, are
nominally at £57. per share.
This Company have issued two classes of Guaranteed Shares ; the first to
26
GUARANTEES SANCTIONED BY PARLIAMENT.
receive £ 5. per cejit .ài> perpetuity ; the second,£ 5. percent, in perpetuity
and dividend., The'TsU class will, no doubt, now be exchanged into old
shares, the hoídRi¿ Sávlag Jh,at.option ; the 2nd class will retain their present
character. Both hlîissi^-haY'er Pegalized under clause 13 of the 8 and 9
Victoria, c^.'l^..
The Londôn*ajii.]iàft\rWèstej-n Company are parties to this arrangement.
The principal portion of tVe" 'above information has been obtained from
the Secretary, H. B. Jones, Esq.
In the first edition it was stated that the arrangement would require
Parliamentary sanction to render it complete; this, however, is not now
necessary, the matter having been so managed, as to bring it within the
powers of the Act above cited ; hence too the transposition to this part of
the work.
The Guaranteeing Companies have a joint Share Capital of nearly
£25,500,000., and an annual revenue of a sum approaching two millions
and a half sterling.
READING, GUILDFORD AND REIGATE RAILWAY.
Incorporated 16i/i July, 184G.
This Line, under powers contained in The Shares of this Company
the Act of Incorporation, has been leased (£15. each) were purchasable
in perpetuity to the South Eastern Rail- at Is. Qd. dis. on April 24, 1847,
way Company. it follows, therefore, that a pur-
The following are the terms, according chase made at that price would
as they were presented to the proprietors give a dividend in perpetuity of
on 25th February, 1847 :— £5.18s 2d per cent, per annum,
" The Reading, Guildford and Reigate or on £1000. invested an in-
Company to raise £600,000. as their come of £56. 2s.
capital, in 40,000 Shares of £15. each, guaranteed 5|-per cent, by the
South Eastern Company; the powers of the Reading, Guildford and Reigate
Act to be used for raising any further sum by mortgage.
" The South Eastern Company to pay £4. per cent, upon the paid-up
calls of this Company, until the new agreement is executed and exchanged
by the two Companies, from which day, interest at the rate of 5| per cent,
is to commence and become payable."
The lease was approved by the proprietors of the Reading, Guildford and
Reigate Company on the 25th February, 1847, and the South Eastern
Company on the 16th March, 1847. The Seals of the two Companies are
required to be affixed to it to make it complete.
The foregoing facts have been kindly supplied by the Secretary, T. V.
Bayly, Esq.
The authorized Share Capital of the Guaranteeing Company is about
£9,000,000., and the present amount of its gross annual revenue about
£400,000.
GUARANTEES SANCTIONED BY PARLIAMENT. 27
ST. HELEN'S CANAL AND RAILWAY. (RUNCORN.)
Incorporated 29¿A May, 1830.
This Company have issued two Classes
of Preferential Shares.
The first class, under the powers of an
amended Aot, passed in 1845, for the
purchase of the Sankey Brook Naviga¬
tion, (£ 144,000.) are in Shares of £ 100.
each. On these a preference dividend of
£5. per cent., on the amount paid up. is
guaranteed, and equal dividends with the
old shares. One-third of this class are
paid in full; on the remainder, all but
£40. is paid, and this will be due, £20.
on 21st December, 1847, and £20. on
21st December, 1848.
The second class have been issued this
year, (1847) and are guaranteed £6. per
cent., and equal dividends with the old
shares, the £5. per cent, guaranteed,
when anything beyond £6. per cent, is
paid on them. The Shares are £25.
each. 6336 in number.
The above information was furnished by the Secretary of the Company.
SOUTHAMPTON AND DORCHESTER RAILWAY.
Incorporated 21s¿ Jidy, 1815.
This Line is under lease to the London The Shares of this Company
and South Western Company, at an are not at present on the market,
annual rental of £20,000. per annum,
and participation in surplus profits. This
rental is equal to £4. per cent, on the
originally estimated capital.
The lease was authorized by the Act
of Incorporation.
The above particulars have been ob¬
tained from the Dorchester Secretary,
T. A. Griffiths, Esq., and A. Morgan, Esq.
the South Western Treasurer.
The Guaranteeing Company is in receipt of a gross annual jiresent
revenue of about £400,000., and has an authorized Share Capital of
£5,238,800., and a further subscribed Capital of £6,028,000. dependent
on Parliamentary approval this Session, (1847)—making, subject to such
approval, a total Share Capital of £11,266,800.
This Class stood nominally at
£14. prem. per share on 7 th May,
1847; it follows, therefore,
that a purchase made at that
price would entitle the holder to
a minimum dividend in perpe¬
tuity of £4. Is. 8d. per cent, per
annum, or on £1000. invested
an annual income of £43 16s 8d.
This class does not appear to
be on the market.
28
GUARANTEES SANCTIONED BY PARLIAMENT.
SOUTH WALES RAILWAY.
Incorporated ^tli August, 1845.
The following is the official summary
of terms and conditions upon which the
South Wales and Branch Railways have
been leased to the Great Western Rail¬
way Company:—
" The Capital in Shares £3,000,000
Amount of Loans autho¬
rized by Act of Incorporation 1,000,000
£4,000,000
" The proprietors to receive interest
at 5 per cent, per annum on all paid calls,
and also upon sums advanced in anticipa¬
tion of calls. Such interest to be charged
in the cost of construction until the line
is completed.
" After that period, the Great Western
Company to pay in perpetuity a minimum
interest at the rate of 5 per cent, per
annum upon the Share Capital expended,
be.sides defraying all the current interest
on loans taken up, not exceeding the
sums mentioned above.
" The lease to commence when the line
from Gloucester to Fishguard and the
Newport and Monmouth line shall be
finished, provided (as respects the latter)
the Great AVestern Company shall also
complete their line from Gloucester to
Monmouth by the same time, but not
otherwise.
" One moiety of the surplus profits at
the end of five years after the lease com¬
mences, is to be divided among the South
W^ales shareholders in addition to the
guaranteed interest.
" Any partial opening to be worked
by the Great AVestern Company, and the
p)roceeds applied to the interest charged
on South AVales capital.
" Arrangements for new lines to be
purchased or leased, to be made subject
The Shares of this Company
(£50. each) were purchasable
at £2. 10s. discount on 24th
April 1847, it follows, therefore,
if the estimated capital is suffi¬
cient to complete the works,*
that a purchase at present prices
would give a perpetual certain
dividend of £5. 5s. per cent,
per annum, or on £ 1000. in¬
vested an annual income of
£52. 10s. This is irrespective
of the surplus profit portion of
the arrangement.
* The following remarks made by
the Chairman, (Chas. Russell, Esq.
M.P.) Chairman also of the Great
Western Company, at a meeting of the
proprietors of this Company, held 7th
April iust., are very important, tend¬
ing as they do to show that the
guarantee is not confined to the esti¬
mated, but is spread over the actual
cost of the line.
" The Chairman said—By tlie
agreement with the Great Western
tliey were to have half the surplus
profits; and it was by carrying out
those Irish lines that the surplus pro¬
fits would be very considerably aug¬
mented. The capital requhed for that
purpose was to be raised upon the
guarantee of the Great Western Rail¬
way, therefore it was impossible any
los^ould accrue to this Company.
^ Mr. Sampson said he understood
that the Great Western Company did
not guarantee them the Avholc expense,
but only a fixed amount; and if they
increased their capital beyond four
millions, they ran the risk of it.
" The Chairman—Not a bit of it.
For all extra purposes we are to receive
an extra guarantee."
At a subsequent period of the meet¬
ing, the following ensued :—
" Mr. SAjmsoN was perfectly satis¬
fied with the Chairman's explanation,
if he understood him aright, that the
GUARANTEES SANCTIONED BY PARLIAMENT.
29
to the consent of the Great Western Com¬
pany, and separately provided for."
The South Wales Act of Incorporation
contains the necessary powers to lease.
The South Wales Proprietary approved
the lease, 24th February, 1847, and the
Great Western, Gth November, 184G.
The foregoing particulars have been
kindly supplied by C. A. Saunders, Esq.
of the Great Western Company.
The Great Western's Share Capital is about £8,000,000., and its
revenue exceeds one million sterling per annum.
Great Western guaranteed to pay them
5 per cent, upon all their expenditure.
" The CUAIKM.4X was glad the hon.
proprietor had raised his objections and
made inquiries, as it afforded him an
ojiportunity of giving .an explanation,
which the directors were always desi¬
rous the proprietors should have."
WEST LONDON RAILWAY.
Incorporated '27th June, 183G.
This line has, under the powers con¬
tained in an Act of 8 & 9 A'ic., been
leased for 999 years to the London and
North Western Company, on the follow¬
ing terms; — a fixed annual rental of
£ G0,000., and one quarter of the gross
revenue, calculated at an increased rate
of 50 per cent, on the rates and tolls
charged by the lessees over an equal
distance of the London and North Wes¬
tern line.
The Great Western Company are par¬
ties to this arrangement, and have plans
before Parliament this session (1847) for
extending the line across the Thames, and
so on to Waterloo Bridge.
The above particulars have been
gleaned from llerapath's Railway Journal.
This Company have three
classes of Shares: — Old—1st
Class £ 5. per cent. Preference—
2d Class £5. per cent. Prefe¬
rence. By the terms of an award
made by Messsrs. Glynn, Hud¬
son and Stephenson, and which
is final under the Act autho¬
rizing the lease, it has been
determined that the 1st Class
Preference Shares shall be enti¬
tled to receive £5. per cent, on
£10. and the 2nd Class £5. per
cent on £20. both in j)erpetuity.
There is no present price of
these shares. When the rent
is in regidar payment, which
will not be until the line is
completed to the Thames (an
Act was obtained for this in
1846) the shares will become
valuable securities.
The Guaranteeing Companies have a joint Share Capital of £30,000,000.
and present revenue of about three millions sterling.
GUARANTEES SANCTIONED BY PARLIAMENT.
WILTS, SOMERSET AND WEYMOUTH RAILWAY.
Incorporated 30iÄ June, 1845.
These Shares (£50. each)
were purchasable at £8. discount,
on 24th April, 1847 ; it follows,
therefore, that without reference
to the contingent advantages
held out under the lease, that a
purchase made at the price
quoted, would give a certain
annual dividend of £4. 15s. Zd.
per cent., oranincomeon£lOOO.
invested of £47. 12s. Zd.
The Act of Incorporation gave power
to this and the Great Western Companies
to enter into arrangements for the leasing
of the Wilts, Somerset and Weymouth
line, and under the powers so given, the
Great Western have taken a lease in per¬
petuity, on a guarantee of £ 4. per cent,
on the capital, and when the Great Wes¬
tern divide more than 8 per cent., a di¬
vision of one-half the excess is to be made
amongst the Wilts proprietors. Thus
when the Great Western divide 10 per
cent., the lessors will receive 5 per cent.
The Wilts, Somerset and Weymouth
Company have the privilege of participa¬
ting in all new issues of Shares made by
the Great Western Company.
The above particulars have been ex¬
tracted from official documents published
in the Railway Newspapers.
The Guaranteeing Company is in receipt of an annual revenue exceeding
one million sterling, and has a Share Capital of about £8,000,000.
GUARANTEES
FOR WHICH THE SANCTION OF PARLIAMENT IS SOUGHT,
ABERDARE RAILWAY.
Incorporated 31 si July, 1845.
This Line is under arrcangements of The Shares of this Company
lease to the Tafif Vale Company in perpe- are not on the market; no price
tuity. The TafF Vale Company to pay can therefore be given,
the Aberdare Company £5. per cent, on
the subscribed capital of £50,000. for
the current year (1847) and one per cent,
additional each year progressively until
the rate arrives at £10. per cent, per
annum, which will then be the per centage
payable in perpetuity.
The Taff Vale Eailway Company is to
pay the interest on the borrowed capital
(£ 16,600.)
The lease has been ratified by the
proprietaries of both companies.
The foregoing facts are derived from
D. L. Lewes, Esq. the Secretary.
No notice has been given for a Bill to
legalise the perpetual lease this session
(1847); next session this will be done.
The present Act authorizes a lease for
7 years.
BERKS. AND HANTS. EXTENSION RAILWAY.
The Great Western Railway Company These Shares (£50. each)
are before Parliament this session (1847) are not on the market,
for this line, and are under an arrange¬
ment with the proprietors of the late
London, Newbury and Bath Company,
32
nT'ARANTF.ES FOR WHICH THF
should Parliament grant the Extension,
to guarantee £ 5. per cent, in perpetuity
to the holders of a certain amount of the
Stock of that Company. £ 5. is already
paid on each of these shares, and £ 1.
more is to be credited, if the Bill be ob¬
tained, this on account of expenses incur¬
red in the session of 184G, when the Lon¬
don, Newbury and Bath line was rejected,
and this arrangement with the Great
Western made.
The above particulars are taken from official papers.
The Guaranteeing Company has an authorized Share Capital of upwards
of £8,000,000., and is in receipt of an animal revenue exceeding £ 1,000,000.
sterling.
BOSTON, STAMFORD, & BIRMINGHAM RAILWAY.
Incorporated 2G?/¿ June, 1846.
This Line has, uijder the title of the
Stamford and Wisbeach, been leased in
perpetuity to the Great Northern Com¬
pany, on a guarantee of £ G. per cent, on
the capital of the Company. (£ 252,000.)
This £ G. per cent, is to commence from
the opening of the line, or from the 1st
January, 1848, whichever should first
happen. Interest at the rate of £ 5. per
cent, is allowed on calls.
An option is given to the Shareholders
to amalgamate with the Groat Northern
Company at par, at any time before the
1st January 1851.
Power is taken by the Great Northern
Company to purchase the line at any time
hereafter, on giving three months notice
in writing of such intention, and paying
a sum equal to £ 50. per cent, premium
on the £ 252,000. Capital Stock of the
Company.
A Bill, promoted by the Great Northern
Company, is before Parliament this ses¬
sion (1847) to carry the lease into effect.
The lease was approved by the Boston proprietors 17th February, 1847,
and the Great Northern proprietors 27th of the same month.
The above facts have been supplied by the Secretary, George Saward, Esq.
The Share Capital of the Great Northern Company is £5,600,000.
The Shares of this Company
are £20. each, and stood pur¬
chasable at £ 1. 10s. premium on
24th April, 1847, giving there¬
fore, at that price, a dividend of
£4. 13s. Od. per cent, until the
line is opened, and £5. lis. Id.
per cent, per annum ever after¬
wards, (assuming the option of
conversion into Great Northern
Shares is not exercised) ; or on
£1000. invested, when the £G.
per cent, is operative, an annual
income of £55. 15s. lOd.
If the right of purchase be
exercised, the £20. shares will
be paid off at £30. each.
SANCTION OF PARLIAMENT IS SOUGHT.
CHELTENHAM AND OXFORD RAILWAY.
These Shares (£ 20. each)
were purchasable at 10s. disc,
on 24th April 1847, it follows,
therefoi-e, that if the Act be
obtained, a purchase at that
price would, without reference
to surplus profits, give a certain
perpetual dividend of £4. 2s.
per cent, per annum; or on
£1000. invested, an annual in¬
come of £41.
The London and North Wes¬
tern Company are promoting
a competing line to this, called
the London, Oxford, and Chel¬
tenham Railway.
The Guaranteeing Company is in receipt of an annual revenue exceeding
£1,000,000. sterling, and has a share capital of about £8,000,000.
This Company is before Parliament
the present session (1847) for a Bill, and
have, provided the Act be passed, agreed
to lease the line to the Great Western
Company in perpetuity, on a guarantee of
£ 4. per cent, and participation of surplus
profits.
This arrangement will form part of the
Act, if the same be obtained.
These particulars have been taken
from the Company's advertisements.
COLCHESTER, STOUR VALLEY, SUDBURY,
AND HALSTEAD RAILWAY.
Incorporated 2Qth June, 1846.
This Company have entered into
arrangements to lease their line to the
Eastern Union Company on the following
terms :—That the latter should pay to the
Colchester Company, 5 per cent, interest
upon the capital expended, with an equal
division of profits after deducting the
working expenses. The capital upon
which this dividend will be payable is
guaranteed at £ 300,000. for the line now
in course of construction from Colchester
to Sudbury and Ilalstead; £200,000.
for the extension from Sudbury to Mel-
ford, Lavenham and Clare ; and £165,000.
for the extension from Lavenham to
Bury St. Edmunds ; giving in all a capi¬
tal of £ 725,000. Any additional capital
required in the construction of the lines
to be provided by the Eastern Union,
These Shares are not on the
market; there is consequently
no quotation of them in the
list.
34
GUARANTEES FOR WHICH THE
and also for converting the extensions
into double lines should it be thought
desirable.
The above terms, which are extracted
from the Eailway Chronicle, were sanc¬
tioned by the Colchester proprietors, at a
meeting held 1st April, 1847 ; and a Bill
to give powers to lease is before Parlia¬
ment this session, (1847) promoted -by
the lessors.
For particulars of the Guaranteeing Company see " Norfolk Railway."
DUNDEE AND ARBROATH RAILWAY.
Incorporated IStA August, 1834.
The following is a summary of the
terms of the Agreement for leasing the
Dundee and Arbroath Railway to the
Dundee and Perth Railway Company,
agreed to by the proprietors of the former
Company, 30th December, 184G, and
subseciuently by the latter Company:—
1. The Dundee and Perth Railway
Company to lease the Dundee and Ar¬
broath Railway, plant and other otTects,
in perpetuity, at a guaranteed dividend
of 8 per cent, per annum, on a paid up
capital not exceeding .£ 2GG,GG0. 13s. Ad.,
to run from the 30th day of April next,
the guaranteed dividend of 8 per cent, on
any sum still to be advanced to run from
the date of the payment of the calls.
The dividend to be paid half-yearly.
2. The sum of £ GG,G66. 13s. Ad. of
stock still to be created by the Dundee
and Arbroath Railway Company, to be
expended in constructing a locomotive
line of railway through the town of Dun¬
dee to join the Dundee and Perth Rail¬
way at a common terminus near the
centre of the town, the Dundee and Ar¬
broath Railway Company making the
necessary applications to Parliament, the
The Shares.of this Company
(£25. each) were purchasable
at £42. on 22nd April 1847,
it follows, therefore, if the ar¬
rangement be ratified by Par¬
liament, that a purchase at pre¬
sent prices would give a per¬
petual certain dividend of
£4. 15«. Zd. per cent, per an¬
num; or on £1000. invested, an
annual income of £47. 12«. Qd.
This is irrespective of the fur¬
ther possible profit which may
arise under Clause 3 of the
arrangement.
SANCTION OF PARLIAMENT IS SOUGHT.
35
expenses of which to be defrayed by the Dundee and Perth Railway Com¬
pany in the first instance, and to be repaid to them out of the said new stock.
This additional capital to be created immediately, and the shares issued to
the shareholders of the Dundee and Arbroath Railway Company, on payment
of a deposit of 10 per cent, to be paid on allotment, the guaranteed dividend
of 8 per cent, to become payable on such deposit from and after the 30th
April next.
3. The gross receipts from the line, unless otherwise arranged, to be
consigned in a bank in name of the Dundee and Arbroath Railway Com¬
pany. The surplus, after paying the 8 per cent, guaranteed to the said
company, feu-duties, and other annual burdens, the interest of any additional
monies required to be borrowed, not exceeding 4| per cent., and the ex¬
penses of working and maintenance, to be divided equally between the two
companies.
4. The line to be worked by the Dundee and Perth Railway Company, at
a rate not exceeding 37J per cent, on the gross revenue.
5. That three of the directors of the Dundee and Arbroath Railway
Company shall be admitted as members of the Dundee and Perth Railway
Board, to act in all matters connected with the Dundee and Arbroath Rail¬
way ; and the consent of the said directors shall be necessary before any
additional monies shall be borrowed as aforesaid.
6. In case any diiference shall arise in regard to this arrangement, or the
proper carrying out of the same, such difference shall be determined by
J. K. Brunei, Esq., Civil Engineer, as sole arbiter, whom failing, by any
party, to be named by the Sheriff of Forfarshire for the time.
No notice for a Bill to legalize this arrangement has been given for the
present session (1847.)
The above particulars have been furnished by the Secretaries, Messrs.
Shiell and Small.
The Share Capital of the Dundee and Perth Company is £300,000.
The date of the Act of Incorporation of this Company is 3Ist June, 1845.
DUNDEE AND PERTH RAILWAY.
Incorporated 3Isi July, 1845.
This Line is under .arrangements of
lease to the Caledonian Company at a
rental of £8. per cent, on a capital of
£ 450,000., with a division of surplus
profits. The agreement was approved by
the proprietors of both Companies 26th
April, 1847, and Parliamentary approval
These Shares (£25. each)
stood at a nominal premium of
£13. on 22nd April 1847; it
follows, therefore, assuming the
lease to be approved by Parlia¬
ment, that a purchase made at
that price would give a certain
c 2
3G
GUARANTEES FOR WHICH THE
will be sought in the Sessions of 1848. dividend of £5. 5s. 3ii. percent.
The following are the terms in which the per annum, or an income on
matter was reported by the Directors of £1000.invested, of £52.12s. 6d.
the Caledonian Company to the Proprie¬
tors :—
" The Directors, subject to your approval, have agreed to enter into a
lease of the Dundee and Perth Eailway and its branches, at a guaranteed
rent of £36,000. upon a capital of £450,000., payable half-yearly. Of
this rent, the proportion corresponding to that part of the capital which has
been paid up will be, payable from the date of the opening of the line from
Dundee to Barnhill. The remaining proportion, corresponding with the
balance of the capital, will be payable from the dates of the payment of the
calls to be hereafter made from time to time. In this way the whole of
the line will be completed and opened before the rent will become exigible
in full.
" The Directors further agreed to adopt the engagement entered into by
the Dundee and Perth Company with the Dundee and Arbroath Company.
The capital of the latter Company is £266,666. 13s. 4d., the whole of
which is not yet paid up. The Dundee and Perth Company are under an
obligation to pay a fixed rent of £21,333., being at the rate of 8 per cent,
on the capital. The full rent, however, will only become payable when the
whole of the above capital shall have been paid up.
" A further accessory to this agreement with the Dundee and Perth Com¬
pany wiU be the adoption of the purchase of the Dundee and Newtyle
Eailway, which has been acquired by the Dundee and Perth Eailway Com¬
pany under the authority of an Act obtained during the last Session of
Parliament.
" The terms upon which this line was acquired were—the payment of a
yearly rent of £1,400. per annum; the purchase of the branch to the
harbour of Dundee, at a cost of £5,750.; and the undertaking of the debt
upon the line, which amounts to about £15,000.
" The arrangement proposed with regard to this railway is, that it shall
be leased to the Caledonian Company at its actual cost, they bearing the
annual burdens affecting the same, and paying the interest of the debt and
capital required to complete the improvements, and provide the plant for the
same ; and the surplus profits exceeding 8 per cent, to be divided equally
betwixt this Company and the Dundee and Newtyle Company, but no
guarantee to be given. The surplus profits, until they reach that rate, are
to be paid to the Dundee and Perth Company ; and the Caledonian Company
are to have power to acquire the line at any period within seven years, at
a free yearly rent of 8 per cent, on £50,000., and an equal division of
profits."
The Share Capital of the Guaranteeing Company amounts to £4,000,000.
SANCTION OF PARLIAMENT IS SOUGHT.
37
EAST ANGLIAN RAILWAYS.
The following is an exact copy of the
terms for leasing the Railways, Branch
Railways and Works of the Lynn and
Ely, Ely and Huntingdon, and Lynn and
Dereham, Railway Companies, to the
Eastern Counties Railway Company,which
were submitted to the proprietors in the
former companies on the 18th February,
1847, and then approved:—
1. The lease shall be for the term of
999 years, and the term shall commence
on the day when the lines are completed
and ready for opening.
2. For the first year of the term, the
annual rent shall be such a sum as will
pay a clear dividend of £ 5. per cent, on
£ 884,400., the amount of the share
capital of the Lynn and Ely, Ely and
Huntingdon, and Lynn and Dereham
Companies.
3. For the residue of the term, the
annual rent shall be such a sum as will
pay a clear dividend on such share capital,
less by £2. per cent, than the dividend
for the time being payable on the Eastern
Counties share capital now converted into
£ 20. shares, but shall in no case be less
than £ 6. per cent.
4. The Lynn and Ely, Ely and Hun¬
tingdon, and Lynn and Dereham proprie¬
tors shall, until the lease commences,
receive interest at £ 5. per cent, on all
sums paid by them for deposits and calls
on their shares, from the d.ay when
such sums were respectively payable ; but
the Ely and Huntingdon proprietors shall,
on receiving such interest, give credit for
the interest already received by them.
5. The Eastern Counties Company
shall pay the interest on all monies bor¬
rowed by the Lynn and Ely, Ely and
The Ely and Huntingdon
(£18. shares) were purchasable
at 5s. prem. on 8th May, 1847,
giving therefore a perpetual
minimum certain dividend of
£5. 18s. 5d. per cent, per an¬
num, or an income on £1000.
invested, of £59. 2s. 6d.
The Lynn and Dereham
(£25. shares) were purchas¬
able at 20s. premium, on the
8th May, 1847, giving therefore
a dividend of £5. 15s. 5d. per
cent, for ever, or an annual in¬
come on £1000. invested of
£57.14s. 2d.
The Lynn and Ely (£25.
shares) were purchasable at
30s. premium, on the same day,
giving therefore a dividend of
£5. 13s. 2d. per cent, or a cer¬
tain annual income of £5 6 lis 8(7
on £1000. invested.
The above values depend on
Parliament legalising the ar¬
rangement, and are calculated
on the £6. per cent. rate.
The back interest in neither
case is considered ; it will how¬
ever, if taken into account,
bring each description to about
the same value. The Lynn and
Dereham to the 31st March, was
estimated at 18s. per share; the
Lynn and Ely at £1. Is. per
share; and the Ely and Hun¬
tingdon at 5s. per share.
38
GUARANTEES FOR WHICH THE
Huntingdon, and Lynn and Derebam
Companies, or any of them, to the extent
of £ 294,800., and shall indemnify those
Companies against the repayment of such
borrowed monies.
6. The Eastern Counties Company
shall provide all further money, beyond
the said share capital and borrowed
monies, necessary for completing to their
satisfaction the Lynn and Ely, Ely and
Huntingdon, and Lynn and Dereham
Eailways, Branch Kailways and works,
and shall also provide the capital required
for constructing any works for which the
Lynn and Ely Company may obtain Par¬
liamentary powers in the present session.
7. The Eastern Counties Company
shall take, at cost price, the plant, stock
and stores belonging to the Lynn and Ely,
Ely and Huntingdon, and Lynn and
Dereham Companies, on the day when
the lease commences.
The above is copied from an official
paper issued by the Secretary to the
proprietors.
The above terms where approved by
the Eastern Counties proprietors, at a
special meeting held 29th March, 1847.
A Bill is before Parliament this session
(1847) to legalize the same. The Ely
and Huntingdon proprietors have received
interest on calls at 3^ per cent., this will
have to be made up to £ 5. per cent,
when the Act is obtained. The two
Lynn lines will be entitled to the full £5.
percent., having received nothing on this
account to the present time.
The two Lynn companies will also,
when the Act is passed, become entitled
to a new issue of shares, in respect of
about £ 40,000. capital to each, the same
forming part of the amalgamation ar¬
rangements of the three companies. The
Ely and Huntingdon has already enjoyed
its proportion of this new capital.
The Eastern Counties Company are in receipt of a revenue exceeding
£550,000. per year, and have an authorized Share Capital of about
£8,500,000.
SANCTION OF PARLIAMENT IS SOUGHT
39
EAST LINCOLNSHIRE RAILWAY COMPANY.
Incorporated 26í/í July, 1846.
The following are the terms of arrange¬
ment between the Great Northern Rail¬
way and the East Lincolnshire Railway
Companies :—
1. The East Lincolnshire Railway Com¬
pany to make their line from Great
Grimsby to the junction with the Great
Northern Railway on the north side of
the river Witham, so as to obtain the
certificate of the officer appointed by the
Board of Trade of the line being fit for
opening.
2. The Great Northern Railway Com¬
pany to guarantee to the East Lincoln-
shire Railway Company an annual rent
of £36,000. for their line in perpetuity,—
to commence from the obtaining the cer¬
tificate aforesaid, or from the time at
which the East Lincolnshire Railway
Company shall have bona fide expended
in making the said line the sum of
£ 600,000., whichever shall first happen.
3. The East Lincolnshire Railway Com¬
pany, and each individual shareholder
therein, to have the option of taking stock
of the Great Northern Railway Company
at par, at any time from the date of this
agreement, until the expiration of a term
of three years, to commence at the time
when the Great Northern Railway shall
have been fully completed and opened
for trafile from London to York, and from
London to Boston and Lincoln.
4. That, in case any part of the East
Lincolnshire Railway ¡Stock shall remain
unconverted into Great Northern Stock
at the expiration of the said term of three
years, the Great Northern Railway Com¬
pany shall have the option of redeeming
such Stock at twenty-five years' purchase,
i. e. at £ 12. 10s. premium per share,
upon three calendar months' notice.
5. That in case the bonâ fide cost of
constructing the line to the point men¬
tioned shall exceed £ 600,000 , the Great
Northern Railway Comjiany shall find and
provide the excess ; but if such bona fide
The Shares (25. each) were
purchasable at 30s. premium, on
8th May, 1847, giving, there¬
fore, (if Parliament approve
the lease) when the £6. per
cent, becomes operative, a cer¬
tain dividend in perpetuity of
£5. 13s. 2d. per cent, per
annum, or an annual income on
£1000. invested of£ 56. lis.8«?.
10
GUARANTEES FOR WHICH THE
cost of constructing the line be less than
£ 600,000., the balance to be paid to the
Great Northern Railway Company.
6. That during the period of option
given to the East Lincolnshire Railway
Company and the proprietors thereof
individually, and after the termination
thereof, so long as any part of the stock
shall remain unconverted and unredeemed,
the Great Northern Railway Company
shall provide the necessary executive for
registering the transfers of shares, for the
payment of dividends, and for all other
administrative charges attending the same.
7. That the following items of cost
shall be considered as part of the cost of
constructing the East Lincolnshire Rail¬
way, in addition to the cost of the pur¬
chase of land, works, permanent way,
stations, &c. viz:—
The interest paid to shareholders
during the progress of the Bill in Parlia¬
ment and the execution of the works.
The cost of applying for and obtain¬
ing the East Lincolnshire Railway Act,
1846, and all other Acts for deviations,
branches, purchase of Louth Navigation,
and all engineers' and solicitors' expenses.
The Great Northern Company to take
all liabilities of the East Lincolnsliire
Railway Company, including Louth Navi¬
gation, and to indemnify the East Lin¬
colnshire Railway Company therefrom.
8. That the East Lincolnshire Rail¬
way Company shall be at liberty to raise
the sum of £ 600,000. for the construc¬
tion of their line, in any manner they
may determine within the provisions of
their Act of Parliament.
This arrangement was approved by
the East Lincolnshire proprietors at a
meeting held 25th February, 1847, and
by the Great Northern proprietors, on the
27th February, 1847.
The Great Northern Company are before Parliament this session (1847)
for an Act to sanction the arrangement.
The foregoing particulars have been supplied by the Secretary, J. Den-
niston, Esq.
The Great Northern Railway Company's Act of Incorporation bears
date 26th July, 1846, and authorizes a Share Capital of £5,600,000.
SANCTIOX OF PARLIAMENT IS SOUGHT.
41
EDINBURGH, LEITH AND GRANTON RAILWAY.
Incorporated 13í7í August, 1836.
This Company is amalgamated with
the Edinburgh and Northern Company
at par, but having issued a £ 5. per cent.
Preferential Stock, the same is secured
under the amalgamation, the amalgamated
Companies guaranteeing £4. per cent,
and the postponed Stock of the Edin¬
burgh, Leith and Gran ton the difference
(£ 1. per cent.)
This arrangement has been approved
by the Edinburgh, Leith and Granton,
and the Edinburgh and Northern Pro¬
prietors.
A Bill, to sanction the amalgamation,
and its concomitant arrangements, is
before Parliament this Session, (1847.)
The above particulars have been kindly
supplied by the Secretary, H. Lees, Esq.
The Share Capital of the Guaranteeing Companies amounts to
£1,040,000.
These £ 5. per cent. Preferen¬
tial Shares (£20. each) were
purchasable at 10s. prem. on
21st April 1847; it foUows,
therefore, that a purchase made
at that price, would if Parlia¬
ment pass the Bill, give a certain
dividend of £4. 17s. &d. per
cent, per annum, or on £1000.
invested an annual income of
£48. 15s.
EXETER, YEOVIL, AND DORCHESTER RAILWAY.
The London and South Western Com¬
pany are before Parliament the present
session, (1847) for a Bill to authorize the
construction of this line, and which, if
obtained, will be leased in perpetuity to
them, at a rental on the capital equal to
£5^. per cent, per annum.
This arrangement has been approved
by the proprietors of both companies, and
will be embodied in the Bill. The South
Western proprietors approved it, at a
special meeting held on 17th November,
1846, and the Exeter Company, on 21st
October, 1846.
The above particulars have been kindly
furnished by A. Morgan, Esq., Treasurer
of the London and South Western Bail-
way Company.
These Shares (£50. each)
£2.12«. 6(7. paid, were purchas¬
able at £1. 10«. per share, on
24th April, 1847 ; it follows,
therefore, if the Act be ob¬
tained, that a purchase made at
that price would give a certain
dividend of £5.15«. 2d. per cent,
per ann. for ever; or on £1000.
invested, an annual income of
£57.11«. 8(7. Theexpences, in
case of failure, are guaranteed by
the London and South Western
Company, not to exceed £2.15«.
per share, on every £5. 5s. paid.
The London and South Western Company is the Guaranteeing party.
42
GUARANTEES FOR WHICH THE
EXETER AND CREDITON RAILWAY.
Incorporated 21si July, 1845.
No transactions have taken
place in the Shares (£25. each)
of this Company.
This Line is under arrangements with
the Taw Vale Company, to grant a lease
to the latter (subject to the approval of
Parliament) in perpetuity, on a guarantee
of £ 5. per cent, on the cost, and the first
10s. per cent, of the profits beyond the
£5. per cent., with an equal division of
excess profits.
The London and South Western Com¬
pany are under an engagement with the
Taw Vale Company, (26th February,
1847) to take this lease as part of the
arrangement entered into with the latter
for a perpetual lease of their line.
The arrangement has been approved
by the Exeter and Crediton and the Taw
Vale proprietors.
A Bill to carry the arrangement into
effect is now before Parliament (1847).
The London and South Western may be considered the Guaranteeing
Body ; their present revenue exceeds £ 400,000. ; the authorized Share
Capital is £ 5,238,800. ; this, if the Company obtain the Extensions they
arc applying for (1847), will be increased by £6,028,000.; making a
then total Share Capital of £11,266,800.
GLASGOW, BARRHEAD, AND NEILSTON DIRECT
RAILWAY.
Incorporated Ath August, 1845.
This Line is under an arrangement of
lease with the Caledonian Company—the
terms, which have been approved by both
parties, are as follow;—The Caledonian
Company to take a lease for 999 years,
at a rent of £21,000. per year, to be
apportioned thus; 8 per cent, on the
The old Shares of this Com¬
pany (£25. each) were purcha¬
sable at £10. prem. on April 20,
and theNewShares (25.each) at
£2.5s. prem. on the same day ; it
follows, therefore, if Parliament
legalize the arrangement,* that a
* The Commons' Committee, to wliicli the Bill to legalise the lease was referred, came
to the resolution on the 7th May, 1847, that th.e lueamble was not inoved.
SANCTION OF PARLIAMENT IS SOVGHT.
43
original capital of tbe Company, and £6.
per cent, on a like amount of new stock,
which has been issued under powers
which already exist; the Old Stock wiU,
therefore receive £ 8. per cent., the New
Stock £ 6. per cent.
A Bill, promoted by the Caledonian
Company, is before Parliament this ses¬
sion, to legalize this arrangement.
The above particulars have been sup¬
plied by the Secretary, John Tennent,
Esq.
The Guaranteeing Company has a subscribed Share Capital of £4,000,000.
purchase of the old shares at
the price quoted, would give a
perpetual fixed dividend of
£5.14s. 8(7, percent; of the new
shares £5. Gs. percent, per ann. ;
or on £1000. invested in the old
shares, an annual income of
£ 57.2s. 6t7.,—in the new shares
of £53.
GLASGOW, KILMARNOCK, AND ARDROSSAN
RAILWAY.
Incorporated Sessio?is 1846.
The following, having reference to The shares (£ 25. each) stood
this line, is extracted from the Report at par on the 22nd April,
made by the Caledonian Directors to their 1847.
proprietors, on 27th February, 1847 :—
" A provisional agreement was entered
into last year rvith the promoters of this
line, by which the directors agreed to
recommend the shareholders to authorize
an arrangement whereby the capital,
amounting to £ 700,000., should, so far
as required for the undertaking, be amal¬
gamated with the Caledonian Stock, and
bear a dividend of 6 per cent., provided
the net profits of the line should be found
to yield that return; with an option to
the Kilmarnock and Ardrossan Company
of availing themselves, in lieu of such
dividend, of the dividend which may be
paid by the amalgamated company;—
Mr. Locke, C.E.., to be the referee in
regard to the amount to be deducted from
the gross receipts on account of working
expenses, and with power to settle all
other differences which might arise in
cariying out the arrangements. This
line runs into the Barrhead and Neilston
Railway, which is held in lease by the
44
GUARANTEES FOR WHICH THE
Caledonian Company, and might be ad¬
vantageously worked and managed in
connection with it, and the Directors are
prepared to carry out the above men¬
tioned arrangement, provided it shall
meet with the sanction of the shareholders.
It has however been intimated to them
by the Directors of the Kilmarnock and
Ardrossan Company, that ' it is their
opinion that the proposed terms of amal¬
gamation will not be ratified by the
shareholders of that company.' In this
state of matters the directors must leave
the case in the hands of the shareholders,
to be dealt with as they may see proper.
They may state, however, that they are
not prepared to recommend that any
fixed guarantee should be given to the
Kilmarnock and Ardrossan Company, nor
that any material alteration should be
made on the terms of arrangement al¬
ready proposed."
The Caledonian proprietors approved
the arrangement, and authorized the
directors to carry it into effect.
Parliament will be applied to in the
next session, (1848) to legalize the
arrangement.
The authorized Share Capital of the Guaranteeing Company is about
£4,000,000.
GLASGOW, PAISLEY, AND GREENOCK COMPANY.
Incorporated 15íA July, 1837.
On the 16th March, 1846, the Pro¬
prietors of this Company sanctioned the
following terms of amalgamation with the
Caledonian Company, to which that Com¬
pany also acceded 16th March, 1846 ; a
Bill is before Parliament this session,
(1847) to carry the same into effect:
" 1. The holders of the ordinary capital
of £500,000. of the Greenock Railway to
be guaranteed a minimum dividend of
4 per cent, per annum ; and in the event
of the dividend on the amalgamated lines
at any time exceeding 5 per cent., the
The Old Shares (£25. each)
were purchasable at £16. 10s.
per share on 22nd April 1847 ;
it follows, therefore, that if the
amalgamation Act pass* a mini¬
mum annual dividend at the rate
* The Commons' Committee, to which this BUI was referred, decided on the 6th May,
1847, that the preamhle had been proved.
SANCTION OF PARLIAMENT IS SOUGHT.
45
holders of the said Greenock Stock to
receive, in addition to the guaranteed
dividend of 4 per cent., an additional
dividend of the same amount as that by
which the dividend on the amalgamated
lines exceeds 5 per cent. ; the Greenock
Shareholders thus receiving always one
per cent, less than the holders of the
Caledonian Stock, until their dividend
falls to 4 per cent., and never falling
below that rate.
" 2. That such dividend shall commence
to be payable at the time when the first
dividend is paid to the other shareholders
of the Caledonian Railway ; the Greenock
Shareholders in the meantime, drawing
the profit realised from their own line,
and keeping up their works and plant in
the same condition as at present until the
amalgamation takes effect.
" 4. That the Caledonian Company shall
have the option, for five years after the
opening of their line, of amalgamating
the two railways at the par price of the
respective stocks, without any guarantee
or difference of dividend."
The foregoing particulars have been kindly supplied by the Secretary,
John Anderson, Esq.
The Share Capital of the Caledonian Company exceeds £4,000,000.
GREAT NORTH OF ENGLAND, CLARENCE, AND
HARTLEPOOL JUNCTION RAILWAY.
Incorporated 3rd July, 1847.
This Line is under arrangements of These Shares are not on the
lease to the Hartlepool Dock and Railway market.
Company, at a rental of £ 3. per cent, on
the Share Capital for two years; then to
increase to £ 5. per cent. ; the lessees
having tlie power to purchase the shares
up at par.
Interest on Mortgage Debt to be paid by the lessees.
This arrangement has been approved by the lessors and the lessees.
The York and Newcastle Company are the promoters of a Bill this session,
(1847) to give them the leasing powers required to complete this arrange¬
ment.
Subsequently to the completion of the lease, the lessors have arranged
with the York and Newcastle Company to take their line on lease, with
its incumbrances, consequently the latter becomes the guaranteeing body.
of £6. Is. may be calculated on
from the period stated in Clause
No. 2, if a purchase be made at
the price given, or on £1000.
invested, an income of £60.10s.
per annum secured, irrespective
of any of the beneficial contin¬
gent results provided for in the
arrangement.
46
GUARANTEES FOR WHICH THE
This (the York and Newcastle) company have a Bill before Parliament
this session, to sanction the leases of both companies. (See Hartlepool
Dock and Railway Company.)
The Share Capital of the York and Newcastle Company exceeds
£6,500,000., and its own annual revenue is in round numbers equal to
£500,000.
HARTLEPOOL DOCK AND RAILWAY.
Incorporated 2 William IV., c. 67.
This Line is under arrangements of These Shares are not on the
lease to the York and Newcastle Com- market,
pany, at a rental equal to £ 10. per cent,
per annum on the Share Capital,
(£ 365,570.) the York and Newcastle
taking on itself the payment of the inte-
test on the mortgage debt, (£ 130,000.)
and the lease of the Great North of Eng¬
land, Clarence and Hartlepool Junction
line, which this company had itself under¬
taken. (See Great North of England,
Clarence, &c.)
The York and Newcastle Company are before Parliament this session
(1847) for an Act to sanction the lease.
The particulars of this and the preceding Company have been kindly
supplied by the Secretary of the Hartlepool Dock and Railway Company,
Wm. Davison, Esq.
LANCASTER AND PRESTON RAILWAY.
Incorporated btJi May, 1837.
The East Lancashire Company has
agreed to take a lease of this line at an
annual rental of £29,000. for ten years.
At the expiration of this period it is com¬
pulsory in them to buy the line at 25
years' purchase on that rent,—in other
words, at a premium of about 33| per
cent.
The arrangement will require Parlia¬
mentary sanction to render it complete.
It was approved by the Lancaster and
Preston Proprietors 24th April, 1847.
The authorized Share Capital of the
£ 2,090,000.
The £50. Shares stood nomi¬
nally at £9. prem. on 8th May,
1847 ; it follows, therefore, as
the rent would, to an original
holder, give £5. 6s. 10c?. per
cent., that a purchase at the price
quoted would give £4. 10s. 6d.
per cent, per annum, or an an¬
nual income on £ 1000. invested
of £45. 5s.
East Lancashire Company is
SANCTION OF PARLIAMENT IS SOUGHT.
47
LEEDS AND THIRSK RAILWAY.
Incorporated '2\st July, 1845.
This Company is before Parliament
the present session (1847) for various
extension lines to Newcastle. The New
Capital to carry out these extensions was
created by resolution of the proprietors,
at a meeting held on SOth November,
1846, and is of the following character :—
The Shares to be £ 35. each, and to bear
a minimum preferential interest of 6 per
cent., to commence from the date of the
Act, and to participate in surplus profits.
The above particulars have been taken
from an official paper furnished by S.
Smiles, Esq., the Secretary.
The amount the perpetual Shares will represent in Stock is £945,000;
the original Share Capital of the Leeds and Thirsk Company was
£890,000.; the guaranteed interest on the former will have to be provided
for out of the nett revenue, before the latter can receive any proportion.
These Shares (£35. each)
were purchasable at 10s. prem.
on 24th April 1847; it follows,
therefore, if the Acts applied for
be obtained, that a purchase
made at present prices would
thereafter give a minimum inte¬
rest of £5. 18s. Zd. per cent, per
annum, or an income on £1000.
invested, of £59. 2s. Od., irre¬
spective of the surplus profit
part of the arrangement.
LONDON, OXFORD, AND CHELTENHAM RAILWAY.
This Company is before Parliament the
present session, (1847) for a Bill, and,
provided the same be passed, have agreed
to lease the line in perpetuity to the
London and North Western Company,
on a guarantee of £4.|. per cent., and
participation of surplus profits.
This arrangement will be embodied in
the Act, if the same be obtained.
The above is extracted from the Com¬
pany's Advertisements.
The Shares (£20. each) were
purchasable at 5s. discount, on
24th of April 1847 ; it follows,
therefore, that if the Act be
obtained, a purchase at that
price would, without reference
to surplus profits, give a certain
perpetual dividendo!£4 lis Id
per cent, per annum, or on
£1000. invested, an annual in¬
come of £45. 10s. lOd.
The Great Western Company
are promoting a competing line
called the " Cheltenham and
Oxford Railway."
The Guaranteeing Company is in receipt of an annual income approaching
£2,000,000. sterling, and has an authorized Share Capital of £22,000,500.
48
GUARANTEES FOR WHICH THE
LYNN AND DEREHAM RAILWAY.
IncorjMrated 21s< July, 1845.
Amalgamated with the Lynn and Ely, and Ely and Huntingdon Lines,
under the title of " East Anglian Eailways,"—which see for terms of lease
to Eastern Counties.
Parliamentary sanction to the amalgamation is being sought the present
Session (1847).
LYNN AND ELY RAILWAY.
Incorporated 30th June, 1845.
Amalgamated with the Lynn and Dereham, and Ely and Huntingdon
Lines, under the title of" East Anglian Eailways,"—which see for terms of
lease to Eastern Counties.
Parliamentary sanction to the amalgamation is being sought the present
Session (1847).
ELY AND HUNTINGDON RAILWAY.
Incorporated 30th June, 1845.
Amalgamated with the Lynn and Ely, and Lynn and Dereham Lines,
under the title of " East Anglian Eailways,"—which see for terms of lease
to Eastern Counties.
Parliamentary sanction to the amalgamation is being sought the present
Session (1847).
SANCTION OF PARLIAMENT IS SOUGHT.
49
NORFOLK RAILWAY COMPANY.
Incorporated 18th June, 1842.
The Shares of this Company
(£100. each) were purchasable
at £123. on 8th May, 1847;
it follows, therefore, should Par¬
liament ratify the agreement,
that a purchase made at that
rate would give a certain return
of £6. 2s. 0(i. per cent, per
annum, or on £1000. invested
an annual income of £61.
The last dividend declared by
the Norfolk Company out of its
own resources, was at the rate
of £7. per cent, per annum.
This Line, subject to Parliamentary
approval, is under arrangements of lease
to the Eastern Union Company. The fol¬
lowing is an outline of the agreement:—
The proprietors of the Norfolk Company
are guaranteed a dividend of 7^ per cent,
upon the whole of the present capital of
the company, amounting to £ 866,240.,
with powers to capitalize their present
loan debt of £ 197,000.; with a similar
dividend to be guaranteed upon that
capital as paid up, the proprietors having
the option, after the passing of the
Amalgamation Act, of taking stock to
the same amount in the general capital
stock of the united company, or of being
paid off at the rate of £ 150. for every
£ 100. of Norfolk stock held by them.
The Norfolk proprietors expressed an
approval of the arrangement on the 23rd
February, and the Eastern Union, on the
24th February, 1847 ; the formal sanction
of both sets of proprietors will be obtained
so soon as the agreement is put into legal
shape.
The approval of Parliament will be
sought in the next session, 1848.
The above is extracted from official
documents published in the Railway
newspapers.
The Eastern Union is under arrangements of amalgamation with the
Ipswich and Bury Company; the joint Share Capital of the two is
£1,750,000. ; that of the former being £300,000., and the latter £1,450,000.
The Eastern Union Line is open, and its gross revenue is about £ 30,000.
per year.
D
50
GUARANTEES FOR WHICH THE
llOYSTON AND HITCHIN RAILWAY.
Incorporated \ &th July, 1847.
The Shares of this Company
(£6. 5s. each) were purchasable
at 10s prem. on 8th May, 1847 ;
it follows, therefore, that a pur¬
chase made at that price would
give, at the £6. per cent, rate,
assuming Parliamentary sanc¬
tion to be obtained, a certain
dividend of £5.1 Is. \d. per cent,
per annum, until such time as
the shares are purchased up by
the Great Northern Company
at the £ 50 per cent, premium ;
or on £1000. invested, an in¬
come of £55. 10s. lOá.
The worth of the purchase
will of course be materially
improved, if the extension lines
be approved by Parliament.
This Line, subject to Parliamentary
ratification, has been leased to the Great
Northern Company. The terms were
approved by the lessors on 15th February,
and the lessees 27th February, 1847.
The following is taken from the lieport
made to the Koyston proprietors, on 15th
February, 1847 :—
" In consequence of the abridgment of
the lino by Parliament, the capital to be
called up for the purpose of constructing
that portion of the railway now sanctioned,
will amount to £ 200,000., being £ 6. 5s.
per share.
" The agreement with the Great Nor¬
thern Railway Company provides for an
application to Parliament for powers to
lease the railway to them, and upon the
obtainment of legislative powers to that
effect, this company is to execute a lease
in perpetuity, at an annual rent of
£ 12,000. (being C percent, on the capital
before stated),—this rent will commence
on the opening of the Great Northern
Railway from London to Hitchin,oron the
16th July, 1849, which shall first happen;
and in the meantime interest at the rate
of 5 per cent, will be paid on the deposit
and calls. The agreement gives an option
for the shareholders in this company,after
the act of Parliament passes, of making
a payment in full, in anticipation of calls.
The agreement further provides for an
application to Parliament for an extension
of the line from Royston to Cambridge,
and for prospective arrangements in
respect to such extension, of a similar
nature to those above mentioned. There is a clause in the agreement giving
power to the Great Northern Company, at any time, on giving three
months' notice, after the same shall become payable, to redeem the annual
rent or dividends at 50 per cent, premium on the shar capital.''
The Great Northern Company are promoting a Bill this session, (1847)
to legalize the arrangement.
The above particulars are taken from official documents forwarded by
the Secretary.
Tl,.. n.
anfoinnrr í^nnirtíii"
Äliarp Cíinil".aí nf í.fS.fiOO.OOO.
SANCTION OF PARLIAMNET IS SOUGHT.
51
SCOTTISH CENTRAL RAILWAY.
Incor-porated 31s< July, 1843.
This Line has been agreed to be leased
to the London and North Western, Lan¬
caster and Carlisle, and Caledonian Com¬
panies. The following is a verbatim
extract of the Report of the Directors of
the Scottish Central Company, made to
the proprietors, on the 10th November,
1846, when the terms were approved,
and authority given, to apply to Parlia¬
ment. A Bill to sanction the lease will
be applied for in the next Session (1848).
" It consists with the knowledge of the
proprietors generally, that at a recent
period overtures were made to the Di¬
rectors of the Central, for a union of in¬
terests between this Company and the
London and North Western, the Lancas¬
ter and Carlisle, and Caledonian Railway
Companies, which led to négociations
being entered upon between the directors
and representatives appointed and duly
authorized by these parties ; and the
result of which has been, that an agree¬
ment is now concluded (subject to the
approbation of the shareholders), for a
perpetual lease of the Central Railway
and its branches to the fore-mentioned
Companies, on the following terms—viz.
The guaranteed rent to be £71,400.
sterling per annum, being 7 per cent, on
£ 1,020,000., as follows—viz.
On original capital £850,000
Shares issued 24th Dec. 1845 170,000
The Shares of this Company
(£25. each) were pm-chasable
at £7 prem. on 8th May, 1847 ;
it follows, therefore, if the lease
be ratified by Parliament, that
a purchase at that price would
give, when the £7. per cent, be¬
comes operative, (the opening
throughout), a perpetual mini¬
mum dividend of £5. 9s 4^<7per
cent, per annum; or on £1000.
invested, an annual income of
£54.13s 9íí, irrespective entirely
the surplus profit part of the
arrangement.
£1,020,000
Rent to commence from the date of the
opening of the main line, and to be pay¬
able half-yearly thereafter. The money
required to complete and stock the line,
and its branches, to be borrowed, and
the interest on such borrowed sums to be
52
GUARANTEES FOR WHICH THE
guaranteed and paid by the leasing Com¬
panies, and debited against the profits,
before they shall be divided. The net
surplus profits, after deducting working
expenses, depreciation, the fixed rent,
and interest on borrowed money, and the
loss, if any, that may arise from the en¬
gagements entered into by the Central
with the Dunblane, Donne, and Callendar
Railway, and the trustees of the Tay
Ferries, shall be equally divided between
the lessor and the lessees.
In addition to the terms above-men¬
tioned, the proprietors will receive inte¬
rest until the opening of the main line, at
£4. per cent, on £250,000., from and
after the 1st July, 1847, being in lieu of
the profits which might be expected to
arise from any partial opening of the
Railway."
£4|'. per cent, is allowed on all calls.
The London and North Western, and
other interested Companies, have ap¬
proved the terms of the lease.
The above particulars have been ex¬
tracted from official documents forwarded
by R. D. Ker, Esq., the Secretary.
The Joint Share Capital of the Guaranteeing Companies exceeds
£27,000,000.; the gross annual revenue derived by one of them (London
and North Western) from its own line, approaches two millions sterling.
SHEFFIELD, ROTHERHAM, BARNSLEY, WAKEFIELD,
HUDDERSFIELD, AND GOOLE RAILWAY.
Incorporated 7th August, 1846.
This Line is under arrangements of
lease to the Manchester and Leeds Com¬
pany. The terms have been approved
by the Sheffield proprietors, (25th Feb.
1847), the agreement has, however to be
laid formally before them at a futixre
The Shares of this Company
(£25. each) were purchasable
at 20s. dis. on 8th May, 1847 ;
it follows, therefore, if the ar¬
rangement be ratified by Parlia¬
ment, that a purchase made at
SANCTION OF PARLIAMENT IS SOUGHT.
53
that rate would, from the
opening of the line, give a
ce?'tain minimum dividend of
£ 5. 4s. 2d. per cent, per an¬
num; or on £1000. invested,
an annual income of £52. Is. 8if.
This is irrespective of the
contingent £6. per cent, and
half surplus profit parts of the
arrangement.
meeting ; and so with the Manchester and
Leeds Company.
The following is taken from the Direc¬
tors' Report, made to the proprietors 25th
February, 1847, and then adopted:—
" The settlement of the terms of the lease
to the Manchester and Leeds had occa¬
sioned considerable négociation, and the
result had been an altered arrangement,
which the directors would shortly recom¬
mend to the acceptanceof the shareholders.
The terms of the new arrangement were,
that this company shall provide £350,000.
for making the line from Ilorbury to
Barnsley and branch, if it cost so much.
Should it cost more, the additional capital
to be provided by the lessees. £4. per
cent, per annum to be paid on the calls
during the progress of the works, and
after the opening of the line, a dividend
of not less than 5 per cent, per annum—
the two companies to divide equally all
the profits above such 5 per cent. Should
the Darfield branch of the Huddersfield
and Sheffield be sanctioned by Parlia¬
ment, or any other line in the same direc¬
tion, the minimum dividend guaranteed
by the lessees to be increased to 6 per
cent, on the opening of such line, with
half profits as before. 40 per cent, of
the gross proceeds to be retained by the
lessees for meeting the expenses on all
traffic worked by their own engines and
carriages ; but 25 cent, only of the gross
receipts to be retained by them for the
traffic worked on the line by the engines
and carriages of every other company."
No notice has been given of a Bill to
legalize a lease, for the present session.
(1847).
The above particulars have been ex¬
tracted from official documents published
in the Railway newspapers.
The Share Capital of the Guaranteeing Company will amount to
£10,500,000; the gross annual amount of revenue the Manchester and
Leeds is at present in receipt of exceeds £ 500,000. per annum.
54
GUARANTEES FOR WHICH THE
STIRLING AND DUMFERMLINE RAILWAY.
Incorporated IQth Jidy, 1846.
This Line is under arrangements of
lease to the Edinburgh and Glasgow
Company, for a period of 35 years, on a
guaranteed dividend of 4 per cent, per
annum, and half profits—35 per cent, is
the agreed charge of the working ex¬
penses.
This arrangement has been approved
by the Stirling and Dumfermline, and
the Edinburgh and Glasgow proprietors.
A Bill, promoted by the Edinburgh
and Glasgow Company, is now before
Parliament, (1847) to sanction the lease.
The above particulars have been
kindly supplied by the Secretary, James
Monteath, Esq.
The Shares of this Company
(£25. each) were purchasable
at 15s. dis. on 6th May, 1847 ;
it follows, therefore, if the ar¬
rangements be approved by
Parliament, that a purchase at
that price would give, for the
period of the lease, a cei'tain
minimum dividend of £4.2s. 6d.
per cent, per ami. ; or on £1000.
invested, an annual income of
£41. 5s.
Both these rates will be in¬
creased under the surplus profit
part of the arrangement, should
the line be worked to advan¬
tage.
The Share Capital of the Guaranteeing Company amounts to £2,700,000.
and the gross annual revenue derived by the Edinburgh and Glasgow Com¬
pany from their line exceeds £125,000.
TAW VALE RAILWAY COMPANY.
Incorporated 20th July, 1838.
The proprietors of this Company have
agreed with the London and South Wes¬
tern Company, provided an Act of Par¬
liament can be obtained to sanction the
same, to grant to them a lease of their
line in perpetuity, on a guarantee of £ 5.
per cent, on the cost, and the first ^ per
cent, of the profits beyond the 5 per cent,
with an equal division of any further
profits.
The South Western Company are to
work the line, and two-thirds of the gross
receipts are to be considered the nett
profits; the remaining third being taken
as the agreed cost of working.
The arrangement was approved by the
The Shares of this Company
(£20. each) were purchasable
at 10s. dis. on 24th April, 1847,
giving, therefore, if Parliament
should ratify the lease, a certain
minimum dividend of £5. 2s. Od.
per cent, per annum, or an an¬
nual income on £ 1000. invested
of £51. 5s. This is without
reference to the participation in
profits stipulated for in the
lease.
Taw Vale proqirietors, on 18th
SANCTION OF PARLIAMENT IS SOUGHT. 55
January, 1847, and the London and South IVestern proprietors, 26th
February, 1847.
Both companies are before Parliament in the present Session, (1847) for
a Bill to ratify the arrangement.
The above particulars have been taken from official documents published
in the " Railway Herald."
The Guaranteeing Company (London and South Western) is the same
as that of the Windsor, Staines, and Richmond.
SOUTH WESTERN.
Tlie Shares of this Company
(£20. each) stood purchasable
at 25 prem. on 8th ÍMay, 1847,
it follows, therefore, if the Act
be obtained,* that without re¬
ference to surplus profits, a
purchase made at the price
quoted, would give a certain
dividend in perpetuity of
£4. 4s. Bd. per cent, per annum,
or on £1000. invested, an in¬
come of £42. 7s.
The London and South Western Company has an existing revenue of
about £400,000., and an authorized Share Capital of £5,238,800., and
subscriptions for a further capital of £ 6,028,000. dependent on Parliamen¬
tary approval this Session (1847); making, subject to such approval, a
total Share Capital of £11,266 800.
WINDSOR, STAINES, AND
The London and South Western Com¬
pany are before Parliament this present
Session (1847), for powers to carry out
this scheme. They have entered into
arrangements with the Windsor share¬
holders to lease the line at £4J. per
cent, on the capital and half surplus
profits. This will be embodied in the
Act should it be obtained.
The above particulars have been
kindly supplied by A. Morgan, Esq.,
Treasurer of the South Western Line.
WISHAW AND COLTNESS RAILWAY.
Incorporated \st June, 1829.
This Line is under arrangements of
lease to the Caledonian Company, in per¬
petuity, at a guaranteed rental of £ 10^.
per cent, on the capital of £240,000.
The arrangement has been approved by
the proprietors of the Wishaw and Colt-
ness, and the Caledonian Compianies.
The Caledonian Company are before
Parliament for a Bill to sanction the ar¬
rangement this Session (1847).
The above particulars have been taken
from official memoranda furnished by the
Caledonian Secretary.
The Share Capital of the Caledonian
The Shares of this Company
(£25. each) were nominally
at £24. 5s. premium, on 6th
May, 1847, giving, therefore, a
perpetual certain dividend (as¬
suming that Parliamentary
sanction is obtained) of £5.5s Gd
per cent, per annum, or on
£1000. invested, an annual in¬
come of £52. 10s.
Company is £4,000,000.
♦ The Commons' Committee, to which this Bill was referred, came to a resolution on the
6th May, 1847, that the preamble was proved.
THE END.
1.0N1H~)K ;
c» n.W^ AND SONS. rUfNTlDtS. 137, Î.ONO A<JItK