The Express.
London, England, 1849-09-25 00:00:00

529,800 IS 2

The tonnage sanded along the lines this half-year I.
196,185 tons, being an increase of 67,628 tons on the cor-
responding period of last year. Thu money received for
goods was, for the hell-year of 1848, 22,481!. 2e. 3,t ; for
that of 1849, 37,9571. U . , tag enCCESSIIIII s. 73 • bei * or
16,4661. 16s. 4d. ----
In making this comparison, it must be borne is mind that
the mileage has been Increased from 80 nuke to 110, but that
the general trade of the country has been very much de-
mised—a state of matters which has materially affected the
of all railway era other carrying'eompanies. Net-
withstateling this, Ito , there hes been a gradual in-
crease of traffic on the line. The receipt from passengers
(although the numbers have fallen off) hae increased about
oneroizth, and the receipt from goods about two-teirds,while
the increase in mileage is three-eighths.
1 After making the various deductions for interest, working
eXpellieS, &C., the free revenue from the main line and Del-
kelth branch is 15,2801. 61. 101., and from the liawick
branob, 1,9841. Ss. 6d.
The former sum will yield a dividend of 7s. 6d. per share,
on the original and consolidated Dalkeith shares of 251. each,
and of ls. 61. per share on the unconsolidated Mantle
shares of 61. each, and will leave a b dance of 8801. 61. 10d.,
which may be laid aside as a fund to meet the depreciation
of rails, ele.
The directors would reeoniesend that the revenue applic-
able-to the liawick branch be carried over to next half-year's
account.
In consequence of the arrear of the ordinary business of
the company, necessarily caused by the sittings of the in-
vestigation committee, and the books being occupied by the
accountant, the director have found it impracticable to get
the accounts and balance sheets made out and audited this
half-year, in time to have the details of this subdivision put
in such shape and published, as they had intended. They
have no reason to doubt, however, that their accuracy will
be duly certified before the meeting takes place, sod in the
future reports the details can be more fully given.
In the meanwhile they may state, that in charging the
interest of loans against the revenue, they have assumed the
outlay for the several lines at the full amount mentioned in
the investigation committee's report, as at 31st January,
1819—the date of the last balance. From that amount they
have deducted the amount of share capital; and, on the
balance, which forms the loan capital, they have charged
interest,—lst, at the rats of six per cent. on so much of the
calls on the preference stock as were due and paid prior to
31. t July ; and 2nd, on the remainder at the rate of 41 per
cent., wrack' is the average rate presently payable on the
money borrowed on debenture.
Although this no doubt beers heavily upon the receipts,
and consequently on the dividend of the pest half•yeer, par-
ticularly as regards the half and third shares (which, how-
ever, are not likely again to be similarly affected), yet the
directors conceive it to be the proper principle of charge,
and they have then fore adopted it.
For the state of the works, the directors beg to refer to the
report of the engineer. This report states that the distance
between St. Boswell's and Hawick, the portion of the line
not yet opened, is about 121 miles, and the works on it are
so tar advanced as will admit of its opening about the end of
this month or beginning of the next. On the Kelso branch,
the contracts are expected to be all finished by next spring.
Oa the Dunse branch, which was mowed for public traffic in
August last, the works on it are now reduced to the devising
up of the slopes and other light finishing. The North Ber-
wick branch may be opened, tribe work is pushed, in Janu-
ary next. The Trauent branch has been foe a considerable
time finished, and all the work that has yet to be done, which
is chiefly the formation of sidings at Trauent, may be com-
pleted about the sod of next month.
In regard to the state of the conspan''s affairs and its
future prospects, it acme unnecessary for the director to do
more than refer to the report of the committee of investiga-
tion laid before the shareholders so recently as 9th ult.
There were, however, various suggestions made in that
report regarding the future management of the company's
affairs, to which the shareholders, at their last meeting,
called upon the directors to give their favourable considera-
tion ; and to such of them as seem to require especial notice,
they will now briefly advert.
The first suggestion to which they will call attention re-
lates to an improvement in the form of keeping the books,
and upon this point they may at once state, that although in
general they think it somewhat hazardous to make any
change upon a system which has been found to work so ac-
curately as not to have produced, as stated by Mr Cope, any
" error affecting the result of the accounts as between the
directors and shareholders or the public," in a series of trans-
actions embracing nearly four millions of money, yet, as
they desire to meet the wishes of the shareholders in re-
gard to this, they have ordered the suggestions of the com-
mittee to be acted on as far as possible. For the reasons
before given, it has been impossible to adopt them so fully, in
the present report 'and states of accounts, as the directors
could have wished.
The next suggestions relate to the adoption of greater
economy in managing and working the line, and in the con-
struction of such works as are yet unfinished. The com-
mittee have done the directors the justice to state that the
subject of economy in management was very fully considered
and reported upon by them long before any investigation
was thought co*. It may therefore be enough at present to
ea y, that the views which the directors entertained coin-
cided in a great measure with those of the committee. and
that both before and sine* the date of the committee's re-
port, they have been acted upon to a very considerable
extant. They will continue to be so whenever an opportu-
nity actors.
As regards economy in construction of works, the direc-
tor may mention that, by curtailing plans, &c. , they have
very materially reduced the expense of such stations as have
been recently contracted for. They will follow the same
course in regard to the remaining stations.
The third suggestion to be adverted to relates to the run-
stag of additional trains to Portobello during the summer
months. Upon this point the directors venture to differ from
the committee. There are already 19 trains daily to Porto-
bello and 21 from it. Theis appear to them to be ample, as
to number, for the accommodation of the traffic. Whether
a new arrangement may not be advisable is matter for lair
inquiry, and due attention will be* given to it.
The fourth suggestion to which the attention of the direc-
tors was called, refers to the introduction of new members
into the direction, and the appointment of two auditors in
place of one, as at present. These points will be fully con •
sidered at next half- yearly meeting, when, according to the
company's act of parliament, any changes which may be de-
termined upon fall to be made. In the meantime the direc-
tors may say that while they doubt the expediency of ap-
pointing gentlemen from a distance to attend to the current
business of the company, they will not object to any change
by which the efficiency of the direction may be increased.
and the true interests of the company promoted.
The question of a depreciation fund is referred to in the
report of the committee, and is one of considerable difficulty.
The directors do not think that any such fund is required in
regard to the rolling stock, inasmuch an, from the great ad-
vantages afforded by the company's works at St. Margaret's,
that stock has hitherto been and may continue to be kept up
in an efficient state by the ordinary annual replacemee.ts and
repairs made upon it. But they concur in opinion with the
committee that a moderate sum ought to be set apart
yearly, for replacing the rails, chairs, sleepers, and other
fixed stock, which cannot be kept up in the same way as the
rolling stock.
The only other suggestion in the committee's report to
which the directors will advert is the recommendation that
the resolution to continue the payment of interest on the
quarter shares, passed at the meeting on the Bth March last,
should be rescinded. The directors would be well pleased if
this recommendation could be carried out with justice to all
parties, because the continuing to pay that interest is throw-
ing an additional burden upon the capital account. They
doubt, however, if it would be either expedient or fair alto-
gether to rescind the ranutioa which was so recently comet
to, and they are rather disposed to recommend that the in-
terest be paid down to 31st January, 1850, being the date
when the next half-yearly
which time, or very soon afterwards, the Kelso branch will
be eompleted. The quarters will they take dividend along
with the other stocks. balance will be ',truck, and about
This estrangement would carryout the spirit of the resolu-
Men of Bth March, and would, it is thought, do substantial
justice to alt parties. It is, however, for the shareholders to
decide, and the directors have given special notice to enable
them to do so at this meeting.
In February and September, 1847, the directors were em-
powered, in order to meet certain over issues of shares, to
capitalise part of the money authorised to be borrowed under
the acts for the quarter and third shares, and to issue shares
to that amount. A considerable portion of this has not been
=it
honed, and the directors wouft e shareholders
to authorise them to bone e „ to unissued
stock, or so much of it as s net be Wei )101=re.
A etiolation to that effect egi/1 lie mflinefthed ' . II.
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