The Liverpool Standard and General Commercial Advertiser.
Liverpool, Merseyside, England, 1856-01-29 00:00:00

JANUARY 29, 1856.

RAILWAY REFORM.

MEETING YESTERDAY.
A MEETING was held yesterday, in the Cotton Sales-ro;
for the purpose of forming a Railway Shareholders' Ass ,
tion. The meeting, which had been called for one o'clock,"
but thinly attended. Among those present were several gell
the
very deeply interested in railway property; and, but for 0
very short notice given of the intention to hold the raeellegi
there would, doubtless, have been many more in attendanee'th
Mr. G. MAXWELL moved that Mr. Lawrence lierOt
M.P., take the chair.
The CHAIRMAN said all must agree that the subject:
which the meeting was called was one of great importau.',„
No one, who, like him, had been deeply involved in the
portant business of railways, since their first introdactilt
could be indifferent to those matters which have had the en:be
of impairing the value of one of the finest properties into
kingdom. Mr. Malins, a gentleman from London, Wv„„,
address the meeting, and lay before them the result of his
rience in connexion with the subject. On one point he e 5,„. rej
from that gentleman. He (the chairman) considered they
great arterial or trunk railways had been kept by themse4e
and not mixed up with ill-considered branches, we should aillaa
been reaping 10 or 12 per cent on the outlaid capital. Poi
opposed this mode of extending the railway system, tie
opposed the formation of the branch from Manchester e.
Crewe, and, being overruled, had protested againt it. 11
sidered that the rapid restitution of the absorbed cap et
that branch had induced the formation of others. An°,i
cause of the depreciation of railway property was the 10
competition instituted between railway companies. (Chil
The competition between the Lancashire and Yorkshire ale
the East Lancashire was an instance in point. He Wai.,;Liti.
said, a shareholder in both, and could speak with equal nit
terestedness on the one side or the other. Companies outrit
to act by each other as individuals are compelled to do; .
railway companies did not do. so. The great competition
tween the Great Western and the London and North Westeee
arose out of the culpable disposition of a gentleman who
a director of the latter, but who was not so now; and it as;
had the most disastrous consequences. But for this ruin °e
competition, we might have been deriving 10 :per cent. °
the original cost of these railways.
raer
Mr. MALINs said, he felt it a duty to attend here, in $
to lay before the meeting, as he had been requested to 0°!,,,
few of the facts which had occurred to him in his experiea';'s
As he had stated on a previous occasion, the capital oftP;
railways was about twenty times as great as that of the !3313,i
of England, and six or eight times as great as that emln°Jiii
in the cotton trade, which was one of the most flourishing
the kingdom ; and yet, in defiance of this great importanes;,
railway property, it has been exposed to, and still suffers fib a
a downward tendency. This, in a great degree, arises from
,t,P,
fact of not having made any serious attempt to close ;,',4
capital account. The depreciation of railway property,47o
now become such, that men who boast of the security oft u„ie
investments are proud to tell us that they do not hold a sinete
shilling of railway stock ; yet these same men do not besitej
to invest capital in foreign railways. This is such a state ire
things as to call loudly for amendment. (Cheers.) Aao
chairman remarked, a great deal of this depreciation has
brought about by injudicious investments. It has ov:efl
„t
asserted of me that I consider four per cent. as suffive,l,
remuneration for railway investments. I hold no stit',,
opinion. I maintain that this, the ordinary interest of moneii',
is as reasonable a matter to be provided for as is the cokeA
which locomotion is secured ; but I never said or thou,°
such a return was at all adequate to remunerate the she;
holders, who, at the least, are entitled to six per cent. £35, il
per mile has been found to be about the average cost of a 4
the railways constructed. This requires an annual incoMeL
£7,000 per mile, at 4 per cent. This at even the ordinsTo
rates of charge leaves such a rate of margin as ought not e
discourage us in carrying on the trade ; but, if it did, had to
not better want a traffic which is unremunerative ? (Cheers';
Liverpool and Manchester men are said to be sharP
looking after their own interest, yet with this quality they'
in common with their fellows, have allowed their proper"
(for they are large holders of railway property) to be dept
ciated in the way in which it has been. lam no antagen'
to one particular line or company, nor the advocate of snoi
other ; I am inclined to advocate the general interests t,
shareholders (cheers); yet I find we are so placed that
ever profit may arise, the ordinary shareholders, like residui"
legatees, can only obtain what remains after all preferenee
claims have been satisfied. The honourable chairman _lr.
remarked that the making branch lines has been prejudiel
and no doubt it has been so. But when we remember_t_iihst
the greatest parallel branch line in the country, the 1-17.11
Valley, was the favourite scheme of the man who was so nl.' f
thought of in this district, Sir Robert Peel, who hirose.la
turned the first sod, how can we consider it possible to avel
them ? With such an example before us, and the desire °f
every district which is not already accommodated with mean
of railway transit to possess it, it would have been, and still
will be, difficult to prevent the construction of them. ale
The CHAIRMAN : Let the parties requiring them defray ...-
cost of them themselves.
Mr. Malaria One great cause of the depreciation of rni/..
way property must be laid to the charge of the great mon°.
polists who hold the carrying on them. As an illustrations
a gentleman told him he wanted 1,500 bales of goods sent fro?
Manchester to this town, and lie found that he could get this
done by an arrangement with one house only, at a cost of One
shilling per bale. (Hear, hear.) He was clearly of opinion
that the carrying business of railways should be conducted by
railway companies. (Cheers.) And, as a remedy for the Pre'
sent evils, he should suggest the establishment of an associs;
tion, having for its object among other things the adoption °j
means which should effectually preclude the mixing LIP °
capital with revenue. (Cheers.) One striking fact in illus:
tration of the effects of corruption and favouritism he might
allude to, was that a year or two ago, iron from Staffordshire
was brought to Liverpool at a rate little more than one-half °f
that charged for the same goods on their carriage to London'
I have endeavoured to ascertain how this could be, or what
excuse could be given for it, but have hitherto failed. In the
south, we have so high an opinion of the sagacity of the Latv
cashire people, that we are desirous of obtaining co-operato.n
in our movement from this district, and in order to obtain it
has been the object of this visit here. He concluded by stating
his readiness to answer any question which might be deemed
requisite.
Mr. WRIGLEY (of Manchester), bad come here, ignorant
that a similar meeting was to be held in Manchester, other"
wise he should not have come. To set himself right with tin:
meeting, he might say at once he had been, seven or eight
years ago, a director of the East Lancashire line, but had re'
tired in disgust at the gross immorality which pervaded the
system; and he had been ever since vainly attempting to r... 1
himself of a large amount of property which was invested in
railways. From what lie had seen and heard, he feared the
time would come when railway property would be conducted
chiefly with the view of paying the salaries of the offieeth
without any reference to the interest of the shareholders'
(Hear, hear.) Much had been said of the immorality of ce
rectors, but he believed they were just what shareholders badk
made them. In too many instances men had been put inn„
the direction of railways, not on account of their ability "
manage them in a fair and legitimate way, but because thq
were supposed to have been brought up in a "good school;
that is, that they would be able to raise the rates of dividends'
without being too scrupulous as to how that should be brought
about. Such an association as the one now sought to be el
tablished would be competent to cope with some of the e""
complained of, but would not, in his opinion, meet many illy/
portant ones. One main cause of the mismanagement °f
railways was to be traced to the facilities with which directore
have been enabled to procure money for the payment of di'
vidends, out of the capital stock of the companies. (Hear'
hear.) He (Mr. W.) had some time ago written a letter 0
the Times, which had appeared on the 23rd of February last,
under the signature of an Ex-Director, in which the evils re'
ferred to were pointed out.
The CHAIRMAN interposing, said, although much pleased
with the remarks made by the speaker, still, as no association
had as yet been formed here, the observations would cone
with more effect afterwards, when the business was more in
t
shape. He should move a resolution approving generally o'
the propriety of forming an association having in view the
remedy of the evils complainnd of, and expressing sympathY
with its objects.
Mr. GUEST seconded the motion.

Mr. G. MAXWELL said, on looking to the small attendance
present, he would suggest that it would be better to appoint.?
committee to propose resolutions. He was satisfied that Nu:
way property has been, and continues to be, overridden IV
managers and lawyers, who endeavour rather to work the
respective lines to their own benefit than for that of the
shareholders.

Mr. 31A.Lnis said that his chief object was to show that t°
depend on any supervision of directors was but an attempt to
bind by a rope of sand the control of railway property. 93t
desirous was he for keeping capital and revenue separate, tbs
he had in London suggested that the one account should De
managed by one set of parties, and the other by another.
Mr. WRIGLEY explained that he was so far in favour of the
objects of the present movement, that he had come from!
distance to co-operate with the meeting ; but he feared, if
something more definite than the adoption of general resole'
tions were not adopted, little good would be attained.
I.lr. HEALEY said that, till comparatively lately, gentlemen
in the metropolis have not taken so active a share in the con'
struction and management of railways as those in the 11vinces had done, and especially in Lancashire. It would,
therefore, in his opinion, be desirable, before a metropolitan
association be formed, that provisional committees should 13,e,
appointed in the different districts, so that all interests might
be attended to.

Mr. G. MAXWELL, on the part of himself and some gentle'
nib near him, was desirous of knowing the exact footing on
which Mr. Malins had come down. Was it to ask us to co'
operate with a metropolitan association, or was it to ascertain
our feelings ?
Mr. MA.I,INS said the great object was to secure as much co-
operation as possible, to be ready in time for the great half•
yearly meetings which are now in the progress of being held.
We solicit
,the co-operation of your judgment and the aid of
your power and intelligence. (Cheers.)
Mr. WITHERS expressed his anxiety to get together such
an organisation as would enable shareholders to indicate toe'
quivocally the strong determination of the proprietors of thirtY
millions.of property to have its interests protected. He should
suggest that a small committee be appointed to co-operate
with. the London council. He moved that the chairman, 31.11."
G. Maxwell, Mr. Alexander Macgregor, Mr. R. Moon, Alt
Highfield, and Mr. Maxwell Hislop be appointed for that
purpose, with power to add to their numbers.
Mr. HEALEY seconded the resolution, which was etu'rie4
unanimously.

Votes of thanks were then passed to Mr. Malins and to the
chairman, and the meeting separated.

&mons' 1-1631 E.—The Rev J. J. Butler, chaplain of t
institution, has been presented by his congregation with
purse of twenty sovereigns.
ral
Tnn EM n
US TEST FUND.—At the Arcuecol-
and Archeological Society, on Wednesday, Mr. Boult air
nounced the close of the subscription lists for the Elmes
monial, and stated the amount to be within a few shillings °„
£1,450. The intention was to invest a sum of £1,400 in doe'
bonds, in the name of three trustees already appointed, bearil
interest at five per cent., and the interest would be applied to
the benefit of Mrs. Elmes and her sons for their lives, and a
the death of the survivor the fund would be applied to the
establishment of two scholaritips of £35 each, for pupils of the
Royal Institution, the Collegiate, and the Mechanics' Institu-
tion. These scholarships are to be available for the architec-
tural students or students of the fine arts attending these
seminaries, and their selection to be placed in the hands of
the trustees for the time being, after an examination in apPrl;
uP'
priate studies ; and should these be unable to fix on the p
to be chosen at the examinations, the Mayor for the time being__
shall have the deciding vote. The scholarship to be enjoyed f(4-
two years.