The Compagnie des chemins économiques de l'Est égyptien ( about the East Egyptian Railway Company ) built and operated a 350 km long network of ten narrow-gauge railway lines with a gauge of 1000 mm around Damanhour and Tanta in Egypt .
history
The Compagnie des chemins économiques de l'Est égyptien was founded on May 19, 1897 by the Belgian baron Édouard Empain (* 1852, † 1929) as a stock corporation. The French commercial bank Paribas was also involved in the establishment. Although it was not one of the actual founders, it replaced a group of German investors who had linked up with three local banks at other railway companies. The concession was granted to the Suarès , Menasce , Cattaui and Pelizaeus banks . They divided the fully paid-up capital of 200,000 pounds (5,040,000 francs ) into the following proportions: 55, 20, 15 and 10%.
The Egyptian state granted the concession for 70 years, after which it should become the owner without compensation at the end of the term. He guaranteed investors a net annual income of F 900 F / km; half of the gross receipts over F 5,625 per year per kilometer should belong to the government. Bank Paribas subscribed for a quarter of the capital, which was proportionally distributed among the founders, and elected a board member.
When it was founded, the company issued 12,500 shares each representing 3.5% of total assets, i.e. H. every 20 GBP (504 F ) redeemable in 70 years. Bank Paribas bought shares to the value of F 446.25 and sold them to the public at the same price with a 4% commission. The stocks and bonds were admitted to official listing. From a political point of view, the titles were one of the best concessions in Lower Egypt and encouraged French influence over Egypt. The annual net income guaranteed by the government of F 315,000 for the 350 km promised a comfortable profit margin compared to the total value of the shares of F 242,304. The investment exceeded the founders' most optimistic forecasts, which in March 1900 justified a capital increase to F8,125,000. The new shares at F 100 were issued for F 106.25, resulting in F 3,320,300. A quarter of the first and second tranches of the shares, and all bonds, were sold in France for a total of F 7,674,141.
In April 1900, the company was through the exchange of shares with the Egyptian Delta Light Railways Company combined . Paribas got off this train and had no connection with the Egyptian Delta Light Railways.
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