The Express.
London, England, 1849-03-01 00:00:00

RAILWAY MEETINGS.

EASTERN COUNTIES.
Half-yearly Feb.2l3.—DAnD WAD•
DINGTON, M P., Esq., an the chair.
A very extraordinary sensation yes produced previous to
the commencement of the preceedinp by the non-appear-
ance of Mr. Hudson, who had been expected to take the
chair. At 1 o'clock Mr. Waddington unmed the post
hitherto Sled by the chairman of the board, when he was
greeted with the question, " Where's Hudson ?" and with
loud marks of di...probe, ims at the absence of that gentleman.
The CHAIRMAN, having with diffeulty obtained •
bearing, mid he attended there that day se a matter of duty,
end be hoped the proprietors would support him in the die.
charge of his duty. (Hear, hear.) If he had not thought
proper to appear before them they might then have said
that he had not attended to his position as the'. deputy
chairman in the absence of the chairman—(a my, "Where is
the chairman ?")—and therefore be demanded from them
that which they were bound to accord to every man in his
own position, namely, that they would not "condemn him
unheard. (Cheers.) He had been extremely desirous,
and so also had been his colleagues, that Mr. Hudson
should attend the meeting that day; and the first intim
tion which he received from that gentleman that he would
not be prompt was given on Monday morning last, when
he received a letter from the chairman, on the receipt of
which, he immediately convened • meeting of the directors
resident ie London. He read to the directors the letter
which had been forwarded to him, and • letter was agreed
upon which he was to forward to Mr. Hudson. He requested
Mr. Hudson to give him a reply to that letter, and he could
not account for the circumstance of his not having received
one. It might be that Mr. Hudson was rot at home.
(Laughter, and cries of " No, no.") At all events, he
(the chairman) was placed that morning in a
very painful position, and in justification of his
appearance, he should read Mr. Hudson's letter to him.
sett mid his reply thereto. (Cheers.) Ho wished to say at
the outset that, in conducting the proctedings that day, the
directors by whom he was surrounded had only one derive,
namely, that the meeting should know as much of the con-
cern as they them elves did. The letter of Mr. Hudson to
himself was as follows :

"Newby Park, 11iiisk, Feb. 26, 1849.—a1y dear Sir,—As
I feel I cannot go strongly along with you in reference to the
steam-boot question, I have made up my mind not to attend
the meeting on Wednesday next. I sincerely wish you well
through it. I hope If any attack is made on me you will, if
you can, defend me with reference to your company. I un-
fortunately hold a lards stake, and bought at a very great
price, and lose terribly by the concern ; they invited us, the
were in a ruined condition both as to stock and credit. I
shall resign whenever it may suit y.iu and the board.
.4 B
a attending I shill avoid the Norfolk question, which I
could not but throw over.—l am yours, very truly (Signed),
Ono. lit neon."

He was very loth to read these letters, because there
might be points in them which Mr. Hudson thought should
not come before the public ; but he thought be had no al-
teraative, and the board thought so too. His answer to
Mr. Hudson, written on the day on which he received that
gentleman's letter, was as follows :
London, Feb. 26,1849.—My dear sir,—Upon receipt of
your letter, I convened a meeting of our director' residing
in London, and read your letter to them. It leaves us all
in considerable difficulty as to the best course to be pursued,
but my impression is, that as the steam boat matter is ap-
proved of in the report of the board, and as no vote on the
Norfolk Amalgamation wi'l have to be taken at the meeting,
itis difficult to explain your absence from the meeting on
any ground stated in yourletter. Besides which I read your
letter, as not wishing your opiaion on these two
matters to be brought forward: lest they should disturb
the utioa of myself and the board at the meeting, as
entertaining opposite op,nions. It appears therefore to
us, that as you have determined on resigning your seat,
it would be bettor for you to do this previous to the meeting.
Should you concur in this, and send me the resignation, to
be at the board prior to the meeting, you can give such
reasons for the step as you wish, and I will make them
known. The feeling of all is one of regret that we shall
lose the valuable services your experience and knowledge
enable you to give to every company with which you are
associated. I will not fail to notice the point named in your
letter if_y_ou are attacked.—l am, dear air, yours very truly,
DAVID WADDINOTON."
Now, he had waited with great anxiety that morning for a
reply to the letter which he had just read. Their secretary
had been to the Telegraph-office, ciminunic sting or andel'.
vouring to communicate with Mr. Hudson at York, in order
to ascertain whether he had received the letter and had for-
warded a reply. He had taken the precaution to send
one copy of hts own letter to Newby Park, Mr. Hudson's
private residence, and another to York. The secre-
usury had not, however, been able to get an answer, having
been informed at the Telegraph-office that the wires were
out of order. (Great laughter.) He thought that state-
ment would satisfy the meeting that he was not in the chair
by choice; he hoped they would feel that, if not otherwise
entitled to it, at least the man who came forward on an
emergency like that wee entitled toe fair and impartial hear-
ing. (Cheers.) It was his intention that day—and he
hoped the meeting would support him in his object—that
every proprietor should have a fair hearing, and should re-
ceive answers to any questions which he might put. Having
made these prefatory remarks, he would take his seat, in
order that the secretary might read the notice by which the
meeting had been convened.
A long discussion took place on the point that the common
seal of the company be affixed to the register of shareholders,
but it having been stated from the chair that only Eastern
Counties proprietors wars present, the motion was agreed
to, and the seal affixed.
The SECRETARY then read the report, for which see
Express of Feb. 26.
The CHAIRMAN rue to address the meeting. He said
the :financial statemeOt which had been put forward was, he
had no hesitation in saying, an honest one ; and he would
add, that he believed from the amount of 13,100,00 W. which
had been put down, as including all existing liabilities,
139,0001. might be struck off, and that that amount was an
excess rather than a minimum. Considering the branches
of thi line which had to be opened,the directors thought that
the revenue from the 4th of July, 1849, to the 4th of July,
1850, would be what had been stated. The work-
ing expenses, he had no doubt were overstated.
He had been at considerable pains to enable the meeting
to go beck to • time when the proprietors had
a large dividend, and to show how it was that
they had a small one that day. The revenue of the com-
pany for the past half year amounted to 397,6921. from the
Norfolk and the Eastern Counties lines. Out of Mat amount
the directors recommended the payment of the dividend
which had been announced. The amount of the dividend
was, in fact, open to discussion. Previously the directors
had come before the proprietors under the act of parliament,
with a resolution that a certain dividend should be de
elated without leaving an option to the proprietors; but on
that occasion, though they recommended a dividend of
59. 6d., they left it open to the proprietors to my what
amount of dividend they would receive. (Laughter.) In the
Norfolk case no comparison could be made with the previous
half year, as this company only worked the line for two
months previous to the commencement of the last half year. No
doubt their revenue, as well as that of all other companies,
had been greatly affected by the times. On referring
to the working expenses he found that the rate of
expenditure in the last half-year was 1,0841. per
mile, while la the preceding half-year it was 1,2731.;
and although the diminution was partly accounted for by the
circumstance of the Norfolk section being worked much
cheaper than the Eastern Counties list proper, yet, looking
at the working expenses for four weeks alter the Norfolk line
was worked conjointly with the Eastern Counties line, and
comparing them with the expenses of the four weeks last
past, it appeared that the directors had reduced the wages,
in consequence of the continuous working, to 3701. per week ;
and: this without at all impairing the efficiency of the
line, or jeopardising the public by any unwise reduction.
(Hear, hear.) With regard to the mainteaance of the
line, it had been said that they were professing to
work at a less cost than they possibly could •, but,
having gone into that question, he had found that the line,
in the order in which it then was, cost them, for labour only
761. per mile ; and for materiels only 231.; making the cost
of maintenance, with materials, 991. per mile. In this
respect, looking at the nature of the traffic, the heavy
engines used, end the large amount of goods, as comppeerreed
with the p7l: traffic, their line might be oom with
any in the . In the half-yearly statement of accounts
the expense the direction, formerly 4501., was put down as
900/. The proprietary had formerly voted 1,8001. per annum
for the board ; but there being certain lines in course of
cons'ruction, 4301. of that charge was put down te revenue,
and the remaining 4604 to capital.• In like manner the
Wary of the secretary was charged half and half. (Laughter.)
But, having eat out on the principle of presenting to the pro-
prietors a fair statement, showing all the liabilities of the
undertaking, the directors had pat down this half year
1,3261., wMth had previously been put down in the capita
account, for directors' allowances and salaries to chief al,
cm. In the statement before the meeting it appeared
that, for an additional mileage of 69 miles, an expense
of 14,7321. bad been incurred beyond that of the previous
half-year ; but, then, everything had been brought into the
revenue account for this half-year, except indeed half the
slimy of the engineer, who was still employed in laying oat
lines and winding up contracts. Now, he did not believe
that anything personal was meant by the proprietors, but
they had evinced that day the feeling that they were not
going to receive the dividend which they had a right to ex
peel. That feeling was, in truth, 'hared by himself: (Hear,
hear.) He was exceedingly sorry to appear in the chair that
day to propose a dividend of 6s. 6d. But was it not far
better to give that than an Bs. dividend not
honestly earned ? Was it net better to lay the naked
truth before the proprietors then, than to have to do
so at a future time ? (Hear, hear.) He had, through con-
siderable labour, obtained tables which showed how they
had been going on. He wished to take the meeting back to
the time when he first appeared in that room at a haltysarly
meeting. And here he must say that he thought he ought
to go into a little personal history of his own in connexion
with this railway. It was generally supposed that he was
brought there by other parties than the real ones. He came
there at the request of the directors of the Eastern Counties
Railway, who solicited him to become the chairman before
Mr. Hudson was invited. He had, in fact,agrissd to fill the
office, but the shareholders went to Kr. Hudson, raid that
gentleman having been prevailed upon to act as chairman,
he (Mr. Wsddington) said to him, If you will give me
the entire control of the traffic, you taking what may
be called the political part of the management,
I will come in as deputy-chairman, and work with you ; but
not otherwise." Mr. Massa speeded to his proposal, and, in
consequence of that, he _became the deputyschairman. He
made this statement lest the proprietors should go away
under the impression that he was a party to what he ccd
not subscribe to. In justification of himself he must my
that he was no party to believing at the time when he joined

it that "the eoneern woe in a ruined matinee, both as to
stock and credit." (" Hear, Inar," and cheers.) It
was totally impassible for them iS obtain the rate of
dividend which had been predicted white the traffi' of the
line was only in the murals of development. At the time
to which he alluded, as the 4th of January 1846, the period
of the first hat-yearly meeting at which he had the honour
of appearing a. the deputy-chairman, a dividend of 9s. was
declared ; and he wished particularly to direct their atten-
tion to the following statement, for it wee a most startling
one. That dividend was paid upon 143,267 shares of
141. 16,. per share, besides the loans and the pro-
portion of Northern and Eutern capital, making a
total of 3,537,3151., which was then made chargeable
to revenue ; there having been during that period revenue
obtained for five months upon the line from Bishop Scortford
to Brandon, or 56 miles on which there was to interest
payable out of revenue, the line also being in the coteraos
rs to' hands for twelve months after the opening, and there-
fore being maintained at the contractors' expense. That
was the starting point. They had at that period 141 miles
open, and the dividend was paid in the manner that he had
stated. There was the great error. The error was that of
paying 95., the dividend of the previous halt year having
been only 31. This 91. dividend was the rock on wt ich they
had split. (lien, htar.) The lines which had been opened
during the preceding six months were not set down as
a charge against revenue, on the ground that the traffic had
not been fully developed; and this it was which enabled the
directors to declare a 91. dividend. (Hear, hear.) lie ad-
mitted that that was a great mistake. If the capital ex-
pended had been brought forward as a revenue charge, the
comp ay would not now have so large a fall in the amount
of dividend. This system of keeping back large amounts
until lines had had time to develop, the directors proposed
now to put a stop t-. (Derisive laughter.) Then- was sow
an addition of 83 miles, 12 of which had only been open
during three months of the last half year ; while the
capital had extended to 239,096 shares of 201. each, in-
cluding the bonus—(laughter)—making in all, with the
Northern and Eastern and the other guaranteed neck,
10,312,7751. as compared with 3,587,3521., made chargeable
to revenue on the 4th of January, 1846 ; or an exeeu of
6,725,423/., on which they had to ply dividend or interest
Over the amount three years ago. His only object in being
present that day was to answer questions, to put the meet-
ing in possession of the true state of the company's attain,
and to account for the diminution of the dividend. (Hear,
hear.) On looking at the traffic accounts, they would find
that during the six months ending Jan. 4, 1846, there was
a gross traffic of only 173,1661., whereas in the half-year
ending Jan. 4, 1849, deducting the receipts on the Norfolk
line, and taking into account only those on the Eastern Coun-
ties line proper, the amount was 336,712/. Considering
that only 83 additional miles had been ;opened, and that of
those 83, 12 had been opened ocly torn months, and,
further, that a great part of the 63 miles went through a
barren district, which had been forced upon them, he main-
I tabled that there woe strong evidence that the traffic
I arrangements had been suoneeftuly attended to. (Hear,
hear.) Comparing the last hall year with the corresponding
one at the period to which he had referred, there was, he
repeated, an increase from 173,0001. to 336,0001. Now he
would ro doubt be asked, how it was that the proprietors
had n.t been made acquainted with all this before ? (Hear,
hear.) He admitted that it was very desirable that the
whole of these explanations should have been riven pre-
viously, and it was on that principle that he app-ared before
the proprietors that day to my that they should n have
the charge to make against the directors again.
(Laughter.) The board now came before the pro-
prieton with a certain mileage opened, a certain amount of
money expended, and they recommended a dividend of
51. 6d. per share, carrying over 14,0001. The
reason why they advised tho reserving of that
amount was, the impossibility of telling what the dopes.
Chinon world amount to. AU railway boards deel red that
they could not arrive at any correct data on the subject.
The directors had been endeavouring to do so ; and, know-
ing that a certain portion of the line between London and
Stratford was being re-laid, and that the expense woul.i have
to be met this halt-year, and with a view to meeting all con-
tingencies, they had determined on making an eft irt to give
stability to the prJperty, and to arrest the line in what ap-
peared to be a downward Cotner. They had desired to give
that day a fair statement. They pledged themselves to the
honesty of that statement, so far as it could be ascertained
by careful supervision. (Hear, hear.) Previous
to going into one or two other matters, he would notice, as
bearing on the question of dividend, the statement made by
the chairman at the last half-yearly meeting, that the re-
mainder of the six per cent. stock would pot be issued until
the pr. prieton were stumbled on that occasion. A certain
number of the six per cent. shares are still in the coffers of
the company ; and the directors having declined to borrow
money at 5 per cent., and even at 41, though the stock might
be reserved for an emergency, it was not the intention of the
directors to inue any more of the 6 per cent. stock, even at a
premium of 21. per chars. The number of shares kept
back at present was 3,400. He now came to a matter on
which there was great diversity of opinion ; he referred to
the Norfolk line. By agreement they had to
work the Norfolk line for seven years, giving to the pro-
prietors of it equal profits with themselves ;and in the mean-
time they were to apply to parliament for its sanction to an
latiVmien of the two undertakings.
iteatirroa—l hope not.
The CHAIRMAN—The proprietor said " he hoped not,"
he thoucht he could show him, however, that the arrange-
ment .as for their own interest. The exact amount which
had lesen earned by the Norfolk line proper, w., ac-ording
to the statement of the Eastern Counties audit clink and the
accountant, 60,8791., which upon 47,666 201. shares, gave a
dividend of 50. 81d. per share, after deducting working ex-
pentes,and including a mileage proportion for the expenses of
direction, m stagement, and head e flies., which had not
been increased in consequence of the working of the Norfolk
line, and without which the dividend would be 6s. ld. per
share. Thus far, therefore, there was no loss ; and although
there was an additional capital to be brought in on the cum
pletion of the Fakenham line and the Lowestoft harbour.
Yet he must observe that the line, at one end, was far from
being properly supplied with trucks, and that it had not been
open sufficiently long to enable them to judge as to the pro-
bable amount of traffic. There were two questions to be
considered—first, whether the Norfolk Company was likely
to pay the same dividend as their own ; and, secondly, it
not, how much they were likely to lees by it. As he would
probably be required to give evidence on the subject before
parliament, he must be extremely guarded in what he stated
then. Bapposing, however, it were said that they had nothing
to do with the agreement, the question would then be
whether the Norfolk line had made ss. 65. per share. Ac-
cording to their owe officers, it had made 51. Bd.
fhe hon. gentleman then referred to a letter from
one of the directors of the Norfolk Company com-
plaining that the development of the traffic was im-
peded by the want of • sufficient number of trucks,
and further stating, with regard to the Lowestoft harbour,
that at present many vessels were prevented from going to
the harbour, by the want of such accommodation u was
being provided. Even under these disadvantages the Nor-
folk line had been able to pay as good a dividend as their own.
A Paoralirroa asked whether the amount which the
company would have to pay for the Lowestoft harbour was
clearly defined.
The CHAIRMAN said the extreme liability was 30,0001. -
but their own engineer estimated the out as under 25,0001.
With regard to the Harwich line, he might
have leR that question to be dealt with by the
hon. member for that town, who was also a mem-
ber of their own board; but as the chairman of
the meeting he was perhaps compelled to give some expla-
nation. The proprietors bad already recognised the im-
portance of the port of Harwich. He believed that the only
reason why the Harwich line was not obtained before was
a political one, The whip wanted influence, and so did the
tones. Hence there was the Attwood line on the one side,
and the Bagskaw line oa the other ; and the government
having taken some interest in the matter, eventually a line
was obtained by the Eastern Union Company, which was to
be guaranteed 41 per cent on a capital of 163,0001. In the
meantime, before the completion of the line, the Post-
office' authorities had asked for eminence in conveying
letters between Harwich end the ports of Hamburg and
Rotterdam. The directors had replied that they could not
render any assistance as a railway board, but that they would
introduce the question to the shareholders, leaving them to
determine whether they would make an advance to a limited
extent. The directors themselves did certainly think fa-
vourably of the matter. It was important in reference to
general communication with the centuient. When the com-
munication to Harwich was complete, the distance from
London to Harwich would be 68 miles, and from Harwich
to Ostend 73, making a total of 141 miles ; and the distance
by way of Dover being 153 miles, there would be a difference
of 12 miles in favour of the Eastern Counties route. True it
might be said that the latter route was eight miles more
than the Dover one by sea ; but that was counterbalanced by
the fact that Harwich was a tidal harbour. _

A PROPREBTOR thought Essoagata war the beet harbour.

The CHAIRMAN said he believed the Bouth-Butern
Company had tried Ramagate, and had found that it would
not answer. Under these circumstances, the directors pro-
posed that a sum not exceeding 24,0001. should be advanced
on a favourable report being made by a competent
marine authority. (" No, no.") By this means they
would be enabled to secure • considerable adds-
decal fruit traffic daring certain seasons of the year,
besides which they had every reason to believe thatMarwich
would become the main point of communication, not only
with Hamburg, but also with Ostend and Rotterdam. An-
other question referred to in the report was that of rating.
This question was a very serious one. During the last 12
months they had paid upward' of 20,0001. for rates, and he
had some extraordinary statements to make on this subject.
Ice 19 parishes through which the line ran, this company had
paid nearly one-tifth of all the rates, over a distance of 21
miles and 64 chains; in roar other parishes they had paid
surly one-third of the rates, the distance being 6 miles
*ad 22 chains. It might be alba why they did not appeal ?
Re wassorry to say that they had spent a great
deal of money in appealing. A magtstrate of the county of
Beau, who was a member of a rating committee, bad joined
in belling • circular to several townahlps, calling upon them
to consider the question of raising the assessment en the
railway. The board afterwards appealed against the deci-
sion which was adopted ; and this very party sat in judg-
ment on the question whether or not the rating was a fair
one. (Cries of " Name.") It would be of no use to name
the party, but such was the fact. If they appealed
Queen's Benet, that court referred the matter
to the magistrates. The directors felt cons
that if the proprietors would act with spirit
this question they would obtain redress.
The CHAIRMAN then resumed his seat, but roes
diately after, to announce that he had just received
graphic oommunication from Mr. !Indica. It was
" York, Wednesday, Feb. 28, 1849, 1.16 p.m.; " and
follows: " I had not an opportunity ofreplyiag yesterdal
will write to-morrow. (Laughter.) Iblz.Waddisgton
use his discretion as to the reason of my resignation.
aware it is a matter I had loss itentutiplated."