The financial condition of the Salvador Railway is to-day a steadily improving one. We see that for the last year (1909-10) the gross receipts were better by £6,921; while the ratio of expenses was also satisfactory, namely, 51·81 as against 54·68, a decrease of 2·87 per cent. Improved good-traffics were also met with, and worked out at 1s. 1d. a ton in excess of previous figures. After providing interest and redemption upon both classes of Debentures, and interest at 5 per cent. per annum upon the Terminable Notes, the amount available for distribution amounted to £8,565 13s. 9d., out of which was made a payment of 3 per cent. upon the Preference shares for the year, leaving a balance of £1,065 13s. 9d., carried forward to the credit of Net Revenue Account. Prior Lien Debentures amounting to £3,600, and Mortgage Debentures to another £9,000, have also been redeemed this year, making the total redemption £62,200 to date of the accounts.
In June of next year (1912) the Terminable Notes, amounting to £45,000, will be either paid off or converted into Debentures probably bearing 5 per cent. interest. The exact financial position of the company stands as follows:
Authorized Share Capital: Preference shares, £250,000 (in £10 shares). Ordinary shares, £250,000 (in £10 shares).
Of these, the whole amount has been issued, viz. £500,000
Debentures: Authorized (5 per cent. Prior Lien) £250,000 (5 per cent. Mortgage) 660,000 -------- £910,000
Out of which a balance still remained unpaid off 847,800
Five per Cent. Terminable Notes Authorized and including cost of issue 45,000 ---------- Thus the company has a total liability outstanding of £1,392,800
Few of the States in Central America offer greater opportunities or inducements for railway extensions than Salvador, and this in spite of the fact that the country is generally mountainous, and is more than well supplied with rivers, most of which for railway purposes have to be bridged. It must be remembered, however, that Salvador is the most densely populated of all the Central American Republics; the country has therefore been very carefully surveyed, with the idea of railway extension upon a considerable scale.
In the year 1891 the United States Government despatched an Intercontinental Railway Commission to make surveys and explorations, not only in Salvador, but in Guatemala, Honduras, Nicaragua, and Costa Rica. The result of such enterprise has been the publication of a voluminous Report, which was issued in 1898, five years after the Commission's return to the United States. The Report is altogether favourable for railway extension in Salvador, and it speaks very highly of the enterprise of the Salvador Railway Company, of which a description will be found in the preceding pages. Previous to the despatch of the American Commission, the Salvador Government had had a survey of the eastern portion of the country made by Mr. Charles T. Spencer, an English engineer of great experience, and who is now General Manager of the Salvador Railway. There can be very little question that at some time in the near future further railway construction will be proceeded with, since the country is so rich in agricultural produce that a means of transportation in addition to and other than that in vogue must be introduced. In many parts of the country the ground is quite favourable to railroad work, the soil being largely decomposed volcanic ash, which stands well in cuttings, although there are numerous spurs to be cut through in many of the districts surveyed; these are in general all lava rock or conglomerate, offering good material for ballast. In but few localities are any grades found steeper than 2 or 3 per cent., or any curves sharper than 12°.