The Express.
London, England, 1852-09-13 00:00:00

NORTH BRITISH RAILWAY.

The half-yearly meeting of this company took place
at Edinburgh on Friday ; Mi. J. M Balfour presided.
The directors' report, an abstrect of which appeared in
the Express of August 27, was held to be read.
The CIILIUNAN, is moving the adoption of the report,
said, the directors regretted very much that they had bears
unable to pay from the surplus revenue more than 31 per
cut. to the holders of the preference stock No. 1 ; but this
had not arisen from any decrease of the traffic—fur he was
happy to say that it showed an increase on the half-year
reported on—but from their endeavouring this half-year
to place every charge to revenue that could pessiely
come avian it, and from some accounts having been paid
this half-year which ought to have been paid from
the revenue of former half-years—the directors being
thus unable to bring forward the balance which ap.
peered in the accounts of the last half-year. As to the
working expenses, though they were 2 per cent. on the re.
ceipta lees than those of the corresponding half-year of 1851,
they were actually higher than either the half-year ending
July 18.51, or that ending January 18.52. This increase
arose partly from necessary repairs to tho engines, so as to
pot them into • proper and efficient state. The interest tin
their various debts amounted this half year to '27,724.
against 25,8141. for the previous half-year. This increase
was consequent on there having been a greater issue of de-
bentures since last half-year, partly to pay off debts due to
the banks, and partly to pay contractors debts. The in-
terest due on the latter had formerly been paid frees capital
instead of revenue, although, when debts fill t be paid
on debentures, they were paid from revenue, not ca-
pital. There was a sum of 1,142/. of interest due at
present on debts not yet paid to contractors; but this
the directors thought fit to place against revenue, and
not, as in former years, against capital. The directors
bad this half-year reserved from the revenue the sum of
1,5261. to meet bad debts and the depreciation of stock.
No such fund had hitherto been set apart for this pur-
pose, but the directors thought it right to commence
the principle, though on a wed male. They proposed to
go to parliament for poser to raise money to meet their
existing liabilities by debentures, instead of by the issue of
pr. ference stock No. 2. This preference stock hail not
generally been taken up by the shareholders ; and the pre-
sent directors had roads no endeavour to issue it to the
public, as they thought it preferable, if possible, to lame
money by debentures, rather than by the issue of new pre-
ference stock, entailing a perpetual claim on the cempatty
of 5 per cent. The amount proposed thus to be raised
330,5001., this being the sum allowed to be raised by the
issue of new preference stock. If the company gave them
poser to raise the money by debentures, they would be aide
to raise it at a much lower rate than they were now paying
to the banks, or than they would have to pay op preference
stock, especially as the money market was yiar by year
falling. There was another point to which bet thought it
necessary to advert. The matter wee of some impurtarice,
and, as the board hail come to a unanimous agreement on
the subject, he would read the minute which they had
adopted. It was as follows :
"The board, when they found the vurplue revenue would
not enable them to pay more than 31 per cent. en tin No.
1 preference shares, took an opinion from counsel on the
question whether the 21 per cent. which remained could be
paid rut of the surplus revenue of future half years. the
opinion on this point was very decided, that they could not;
but in this opinion a hint was thrown nut by the counsel
that there were doubts whether the Ne. 1 preference had any
legal preference at all. The board have net thought it
necessary to prosecute the inquiry further on this moot, as
they could not think that the shareholders woulu wish to
repudiate the obligations uader which they had come. The
board are of opinion that, whatever the legal question may
be, there can be no doubt as to the stock being in justice a
preferential one, the money having been obtained on the
faith of resolutions to that effect, passed by the shareholders
themselves. It may be proper for the meeting to consider
as to the steps, if any, which should be taken when the pro-
posed new act is applied for, to remedy any doubt which
may exist as to the legal question of preference.•'
The chairman concluded by saying that be firmly believed
this company bad seen its worst days, and that. in future
years there would be an increase in its revenue and a de-
crease in its expenditure. The chairman concluded by
moving &series°, resolutions, adopting the report, and
au-
thorising • dividend of 31 per cent. on preference stock No. I.
Mr. CHATTOD, deputy chairman, seconded the resolutions.
Mr. LAIIOND then, on behalf ofMr.Brewsterdlof London,
the holder of 4,8751. of original stock, laid on the table a
protest against the resolution to pay dividend on the pre-
ference stock. Mr. Brewster, he said, had been advised
that the so.ealled preference stock was not preference stock,
, and, if the payment of any preferential dividend upon it
• was persisted in, he would apply for an interdict against it.
1 Mr. AULD, of Glasgow, said he rose to object to the re-
port for the very opposite reason. He held that is was
• beyond the power of the board now to transfer the 33,:stkall.
or any part of it, from the capital account to the revenue
account. The committee of investigation had vindicated
, the principle upon which the various charges were mado
upon the capital account, and since their report was issued
all the reports of the directors showed that the accounts
had been arranged on the same principle. With re-
gard to the protest laid on the table against the pro-
, posed payment on the preference shares, or even the at-
tempt to raise the question as to the validity or uon-vali-
i dity of the preference shares, it would be a fatal blow to
the credit of this company. (Rear, hear) The preference
shares had been raised for the purpose of bringing into
operation about • million of dormant capital, and wen de-
, Blared by the committee of investigation to be absolutely
necessary. The eights of the preference shareholders were
I founded upon justice, and appeared to be very distinct.
He moved to the effect :

--"That the report be not approved of in so far es-1. It
is proposed to transfer the sums of 33.b721. 9s. and
2,2161. 17s. from capital account to the debt of revenue an
count, inasmuch as the expenditure under these accounts
have been regularly certified as correct in the reports of the
directors, and approved of and ratified by the shareholders
at each sueceseive half-yearly meeting. 2. The sum of
5,6921., the free surplus in the last hell-year's accent .t, has
not been brought forward. 3. The dividend to the holders
of the No. 1 preference shares is recommended at the sate
of 31 per emit. only, whereas the addition of the raid sum
of 6,6924 would afford a dividend of nearly 6 per cent. 4.
There is no provision for the payment of the balesee of
guaranteed dividend by postponed warrants or otherwise."
Mr. G. Btunr seconded the amendment. lie charac-
terised the report as a very gloomy and disheartening docu-
ment. Re contended that the directors had no power by
the act to constitute a reserve fund in the manlier proposed,
and said that the effect of raising money by debenture,
instead of by preference stock No. 2, would be to muke the
money thus raised bear a dividend preferential to the pre-
fenmce stock No. 1, the priority of the litter being thus
violated.

After a discussion, in which Mr. Learmouth (late chair-
man), Mr. Boithwiek, Mr. Chaytor, and other=, took part,
Mr. J. Coos proposed the following resolution as a means
of settling the question at issue:
" That the report by the directors laid before the muting
be read and adopted, subject to the reservation after men-
tioned. That, in terms of the recommendation contained in
the report, a dividend at the rate of al per cent. be declared
payable on the guaranteed stock No. I, and be paid on the
10th of October proximo ; and that it be remitted to the
directors and a committee of sharehollers to ucertain whe-
ther the sum of 5,690 k, which has not been brought forward
from the revenue account of lost halt-year, ought to be
brought forward and now divided."
Mr. AULD expressed himself dissatisfied with Mr. Cook's
motion, and, after a desultory discussion, a vote was taken
on the two amendments, when that of Mr. Cook was carried
by 27 over 21 who voted for that of Mr. Auld. The
amendment of Mr. Cook was then put against the motion
of the chairman, when the latter was carried by 33 to 24.

MANCHESTER AND SHEFFIELD RAIL W.. 1 I'
ACCIDENT.

The inquiry respecting the dreadful accident on
this line, which involved the death of two persons, eerions
injury to resent' others, and a coesideraids lam of mremirry,
ammateeed on Friday morning at the Jeteetion Ina; near
Sheffield, before Mr. J. Badger, the mom, for the district.
The two nafortunate diseased were identified ea lames
Wright, engine driver, and Charles Tnekweed, guard,
aged 38. Both were married. Wright had hoes em-
ployed on the Oreat.Northern Railway three years, but bad
driven an engine between Sheffieldfand Belford until
the day of the accident. He was formerly an engine driver
in France, but left that country is conategnenee of the revo-
lution. Theiseet laaperlant testimony adduced in thesaurus
of the proesql wee the following :
William the stoker (who seemed to have suffered
severely free accident, his head and upper part of hie
Ilene beurghmeaoW up), said he had been a stoker between
liniffield awl Retford nine months. On Tburday night
=to d nt the proper time. ten minutes peat nine, from
It wee the first day the deceased driver had
diem pet train. He did not know the road well, and
tee Slat reason he (witness) fired fur him. Ile knew tho
wee and new lines very well. The train consisted of two
gm& waggons, two passenger carriage?, and the break ran.
Travelled at the speed of about 30 miles an hour. The first
thing be noticed before the accident was some sparks Iron
the trailing wheel on the right hand side of the ergine.
Ms .. standing on the right hand side of the engine,
eselast the break, and called the driver's attention to the
sparks. He said that he thought it was the break that
caused these, but the break was not on. The next mo-
ment they were down the embankment, which was about
30 feet deep. He found himself lying under the engine.
He crept out between the leading wheel and the driving
wheel, and ran sip the embankment and got upon the line.
Not seeing or hearing any one, he returned to the engine,
and looked in, but could not see the driver, or any one.
Ile then went to the carriages on the other side of the line.
Failing to fiudany one there, he again went upon the line,
and found two passengers and the policemen. Ile sent
them to Woodhouse junction to stop the next train, and
ran to Sheffield to put up the first signal.
By the coroner—He directed Wright, the detested
driver, as to the speed at various parts of the line. Ont-
tidered they were travelling at a safe speed at the place
where the accident happened. Was not aware that the
rails were out of gauge, but the road was ray bad
to travel over between Sheffield and Retford. lit was not
in good running ott' -
shake about tembly.
engine jump •
the inspector .
gine. fold him
to the line between

eousplaiucl of
Woodhouse.

sparks, car until

any OUe wre
Oplllloll ;u to t
The imiuiry

.. -- .....
ning order. It made the engkee jump and
terribly. lied once or twice before noticed the
when they nn off, and he had told Atkinsm,
of the plate•lsyers, of thtju •• • e eri-
g .
Mtn about two months agi4 Ai ••.
~...._.
...,,401,,,ed
ietween Worksop and
d• the state of rails . . : ~e
The engine did not .t,ut • , . ' W';. '
dad she ran off the hit .- ~ '-- t !
Nameable for th,.. • tom; ..•. . . '
the calm Of its runni o • ' .1.. y;. •
7 was tbie.adjourned. ..; : •IN .d•
4 '
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