File 2764/1904 Pt 2 'Baghdad Railway: General negotiations 1908-10.' [‎379r] (772/799)

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villages, independently of lands reserved for Mussulman immigrants; and, lastly, in
case of insufficiency the Government will provide other security.
The above are in resume the chief points of the Convention.
There is no doubt whatsoever that the result will be beneficial to the country.
The area of cultivation to be drained and irrigated is expected to become most fertile.
The tithes will increase, population will be attracted thither, and the Railway Company
will benefit by a large increase in the traffic receipts.
It is essential, however, that the class of peasant to cultivate the lands in question
should be the industrious class. Mussulmans from Asia Minor, settled in lands where
the harvest one year in three can be expected to give a satisfactory return, will flock
to the area now to be irrigated, and if the Government will refrain from establishing
on the plain Circassians or Bosnians, who are averse to settled and continuous agricul
tural labour, and will establish the laborious and hard-working Moslems from Roumelia,
Bulgaria, or Bessarabia, the success of the undertaking is assured.
2. I inclose a copy of the Additional Convention of the Anatolian Railway
Concession of the 22nd September, 1304 (1889), regarding the doubling of the line to
Pendik. The work will be executed in eighteen months after the approval of the
plans.
The cost is not to exceed £ T. 100,000, and will bear interest at 5 per cent. This
sum, with interest, will be repaid by the Government.
The average receipts for the section for ten years will be established, and the
increase in gross receipts over and above this sum will not be passed into the receipts
of the Haidar- Pasha An Ottoman title used after the names of certain provincial governors, high-ranking officials and military commanders. Ismidt line, but will be devoted to interest and sinking fund of
the construction capital to be advanced by the Anatolian Railway Company.
Only when the capital is amortized will the increased receipts be passed into the
general receipts of the line, and thus reduce the kilometric guarantee.
In other words, the Government will pay for the double line, and the advantage
will only be reaped when the cost is amortized.* ^
3. The decision to double the share capital of the Anatolian Railway Company
was taken at a general meeting on the 28th June, 1907.
This decision was sanctioned by Imperial trade, and entails a modification of
Article 6 of the Statutes. The words “ de moitie ” are replaced by the words “ jusqu’a
concurrence de 135,000,000 fr.”
Article 6 of the Statutes is as follows :—“ Le fonds social est compose du capital
a actions ci-apres determine et des obligations a emettre selon le cout des travaux
des lignes. Le capital a actions est fixe a 1,800,000/., ou 36,720,000 marks ou
45.000. 000 fr., divise en 90,000 actions de 20/., 408 marks ou 500 fr. chacune. II
pourra etre augmente de moitie par I’Assemblee Generale.” As stated above,
the words “ de moitie” are replaced by the words “jusqu’a concurrence de
135.000. 000 fr.”
The 90,000 shares, viz., nominal capital of 45,000,000 fr., as above mentioned,
constitute the capital created in shares of first series, liable, as stated, to be increased
by one half, namely, by 22,500,000 fr.
In 1893, on the occasion of the construction of the Eski-Ohehir Konia line, of
this sum of 22,500,000 fr., there was an issue of a nominal capital of £15,000,000 fr.
(representing 30,000 shares) under the denomination of second series.
In 1903, at the time of the construction of the Bagdad line, the Anatolian
Railway Company issued the remaining balance of the sum of 22,500,000 fr., (namely,
7,500,000 fr.) under the denomination of third series, in order (1) to participate in the
Bagdad Concession by a purchase of shares in that Company; (2) to participate in the
Haidar Pasha An Ottoman title used after the names of certain provincial governors, high-ranking officials and military commanders. Port Company ; and (3) to take a share in the Construction Company of
the Bagdad Railway.
Thus the nominal capital of the Anatolian Railway Company, of which the
original capital issued was by this time increased by half, was sub-divided
follows :—
• Until the capital is amortized the amount of the kilometric guarantees to be paid b 3 r the Government
from the tithes collected by the Debt Council will be greater than it is to-day (say, by £ T. 9,000 a-year),
since the average receipts of ten years are less than what they now are by about that amount.
On the other hand, according to Article 8 the Company will reimburse the £ T. 100,000, when the gross
receipts of the section to Angora attain 30,000 fr. per kilom.; but when will that be ?
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