The Express.
London, England, 1851-08-30 00:00:00

EASTERN UNION RAILWAY.

The ordinary half-yearly general meeting of this 1'
company was held yesterday at Hadley's Hotel, 111ackfriars;
Mr. CORDOLD, M.l'., in the chair; who read tho re-
port of the executive committee of directors, which has been
already published in the Express, and explained that
an error had crept into the statement of accounts in print-
ing, by which two sum!, the expenses of the shareholders'
auditors (1911. and the government audit (3471.), had
been placed to the debit instead of the credit side of the
account.

Mr. BRUFF, the manager, then read his report, which
contained nothing of general interest.
The CHAIRMAN, in adverting to the discouraging
nature of the report, said that the directors saw no reason
to think that if the course recommended by them some time
ago had been followtd they would not now be in the un-
fortunate position they were. Three years ago he told
them that it was necessary to go to parliament fur
authority to raise further capital to complete the
works. The proprietors on that occasion sanctioned
the raising of a sum of 230,0001. fur the purpose
not only of completing the works then in progress, but to
pay oil liabilities which had been already incurred, of the
nature and extent of which the shareholders were aware.
The directors employed a professional accountant of stand-
ing and ability, who investigated the accounts, and the re-
sult of such investigation hail been fairly and fully stated.
But times not being prosperous at that period, and the
credit of the company not being very good, they were unable
to raise the amount necessary. They had, consequently,
to incur fresh difficulties 'under great disadvantages, and
met those already incurred by paying largely for accommo-
dation, which they need not have done could they have
carried out their views. Ile mentioned this to show the
difficulties of their position were not now presented to them
for the first time. The last time he addressed them, and on
a previous occasion, he intimated that some arrangement
must be made with the preference shareholders as a pre-
paratory step to extricating the company from its difficulties.
lie then stated that he did not consider the directors were the
parties from whom any proposition on this subject should ema-
nate, or that they should take any step to deprive the pre-
ference shareholders or any other class of persons. But since
that time a gentleman well known in London, who was largely
interested as a preference shareholder, had in conjunction
with some friends made inquiry into the actual state of the
company's affairs, and as that gentleman was present he
would explain his views. AU he could further say on this
subject was that the directors were desirous of doing that
which was necessary for the interest of all parties in the
undertaking, according to their respective rates of priority.
Mr. J. BROWN, to open a discussion, moved the adop-
tion of the report, not that he approved of the policy of the
directors during the last two or three years, nor as agreeing
with the chairman that their difficulties had increased not-
withstanding the authority to raise the 230,0001.
The CHAIRMAN—But the money was not raised.
Mr. J. BROWN was aware of that, but was sure that
had the same vigour been shown by the directors when
they obtained those powers which they had evinced in their
appointment of an executive committee and in the report of
that committee, those powers would not have remained a
dead letter, therefore he contended that the directors were
mainly answerable fin the present position of the company.
He would move that the meeting approve of the appoint-
ment of the executive committee, that it approved of their
report, which it adopted, and thanked them for the same.
Mr. LECIIMERE took exception to various items in the
statement of accounts, and proposed that the meeting
should be adjourned, on the ground that in consequence of
the delay in placing the accounts in the hands of Mr.
Quilter, the government auditor, his report had not been
received, and also on the ground that those accounts were
inaccurate in themselves, especially in regard to the state-
ment of assets and the liabilities in the capital account. He
also complained of the extravagant law charges which bad
been incurred for this line, 149,0001., and referred to the
fact that by the act of parliament the unpaid interest on the
preference shares remained an accumulating charge against
the company. He moved that the consideration of the report
be adjourned until after the receipt of the government au-
ditors' report—that the statement of unpaid calls on pre-
ference shares be published, and the payment of them en-
forced ; that application be made to the Court of Chancery
to tax the whole of the law charges; and that all capital
remaining outstanding in the A shares be immediately
called up.
The CHAIRMAN suggested that the first resolution
should be put as an amendment to Mr. Brown's motion ;
and the others as substantive resolutions afterwards. Ile
would now, however, move that the baldness be suspended
in order to proceed with that of the special meeting which
had been summoned for 2, and must be held before 3, it
now being half-put 2.
The meeting was made special accordingly, and after some
conversation, a resolution confirming the leasing of the
Harwich line to the Eastern Counties Company at 4 per
cent. and half profits beyond was confirmed.
The general meeting being resumed, Mr. Brown's reso-
laden confirming the report was put and carried.
Mr. BROWN next moved that the number of directors
be reduced from 12 to 6, and that not less than three of the
directors be authorised to take the necessary steps in any
future act of parliament that might be promoted on the
part of the company, and otherwise to carry out such alto-
ratic'• . . _

This resolution was opposed by Mr. Lscxxxas, Mr.
]Leis, and others, and was ultimately lost.
Mr. T. STURGE said—l will now state to the share-
holders what I think ought to be done under our present
circumstances. At the meeting of preference shareholders
held at the George and Vulture Tavern on the 21st inst.,
I said that as far as I could ascertain when at Ipswich,
labout five weeks ago, the outstanding debts and liabilities
of the company were 475,0001., to which I added 25,0001.
to corer unknown and unssccrtained claims—this would

f make together 500,0001., which might be reduced hy con-
! vertible property and securities to the extent of 60,0004
leaving 440,0001. to be provided for. My wish was to
bring before the preference shareholders what might prove
the full extent of the mischief. When I went to Ipswich,
the executive committee were engaged in ascertaining the
real position of affairs. Yesterday I received an account of
the result of their labours, which is more favourable to the
company in amount than I had reason to hope; nevertheless
it may 6e there are some claims that may come against
them, which, owing to circumstances, they do not
know of, but if any are made, it is not likely to
be to any serious extent. By information now re.
ceived it appears that the known claims and liabilities are
taken at 448,6611. 10a. 9c1., and it will perhaps be thought
safe if we call this in round numbers 450,0001. It appears
that some of the parties who advanced money hold bonds
and other good securities of the company to the extent of
27,0001, and as, in estimating the charge on the debenture
debt, interest at 6 per cent. will be calculated on these
bonds, we deduct this 27,0001., which will reduce the
450,0001. to 423,0001. It is further calculated that property
of the company may realise 30,000/. If this should prove
rorrect, it will further reduce the amount of 42.3,0001. to
393,0001. It is thought this amount may be further reduced
by payments upon shares, calculated to produce 10,0001.
As I understand, this arises on A, B, and C shares, set
down in the auditors' statement as calls unpaid,76,1591.505d.
If no more than this shall be recovered of those calls, it will
be a subject to consider whether or not those shares which
are not paid up ought to he forfeited, or how they ought to
be dealt with. If any of these shares should be held by
persons who subscribed for them, but who have since been
reduced to poverty so that they arc unable to pay, it is pro-
bable the general body of proprietors would admit them to
hold stock to the amount they have paid, supposing in
settling the company's affairs, shares be converted into
stock ; while on the other hand, if there should be reason to
suppose that any of these shares have been made over by
persons able to pay to men of no substance, then it may
appear consistent with justice that they. shall be forfeited.
Under the table of analysis of shares as given by the auditors,
it will be seen on referring to it that there is due on class A
shares alone, 71,3981. Bs. 7d. At the foot is a small asterisk,
with the words, " See explanation in auditors' report, De-
cember, 18.51." Not having this report before me, it is need-
ful to speak from memory. If this serves me, I believe that
explanation was that 6'. only had been called on 3,506 of
these A shares of 251. each. If this is so there remains 19/.
per share to be called, and this or. 3,506 A shares would
amount to a considerable sum. It is true that in the pre-
sent state of affairs it is not likely that all who hold them
shares would be willing to pay; but it is to be expected that
all konourable holders who arc able will feel themselves
bound to act honestly. From this source it seems, there-
fore, reasonable to expect to get something which is due to
the company. It is especially due to the preference share-
holders, because it is one of those sources which has always
be n held out to them as a security for what they advanced.
I believe at the time these shares were issued that so good
an opinion was entertained of the success of the company
that many of these shares sold at a premium. Every per-
son As Ito has been so unfortunate as to be obliged to adjust
a debtor's affairs with his creditors, when the estate was
very deficient, must be aware of the very great difficulty
of settling with small creditors, so that it is usual to pay
such in full. The Eastern Union Company will have a
considerable number of small creditors whom it will be
necessary to deal with in this way ; for example, 61 cre-
ditors under 1001., to whom is owing 1,756:. 12s. Id.,
average, a little under 29/. each; 49 creditors for land,
1,8581. 7s. 4d., average, a little over 38/. each. Some diffi-
culty may be experienced in settling with creditors whose
claims arc for money actually lent to tho company on tho
faith of debentures to be issued when the liar etch lino
should be made, or that ample securities would be given them;
they certainly stand in a somewhat different position from
those whose debts arise from goods supplied or compensation
for land—land, in some eases, taken but not yet conveyed to
the c oupany. It will be evident to the shareholders that
it must be very difficult and painful for the directories exe-
cutive committee to deal with these matters, because it is
to be supposed that, eutertaining at one time in common
with' the public at large great expectations of the profit that
this undertaking was to produce, they naturally would speak
encouragingly of it, and induce many of their friends to
embark in it. But, as it dries not at present yield the ex-
pected profit, it seems necosatry that a committee of share-
holders should be appointed to help them over this difficulty
and to stimulate them to those exertions which justice and
necessity require. 3.13,0901., it will be reco 1 •eted, is the
amount already assumed as the debt to be provided for, it
may bo lessened by what may be got by calls on shares, and
it is to be hoped this will lie something considerable. 1
don't like to reckon on this till it is got, but prefer to keep
what may be by some thought the unfavourable view of
the case before me. I therefore take 535,9241., the bond
debt, at 5 per cent. ; there is some amount at 6 per cent.,
but I take it at 5 per cent., because I think if a good and
satisfactory arrangement of our debt, owing to the forbear-
ance of all parties is made, the credit of the company will
be so improved as to enable it to raise or renew bonds at
this rate or even at a lower rate of interest.

Five per cent. on 535,9241. is a fixed charge of £26,796 4
Rents.—Stour Valley, say £lo,ooo
St.)wmarket Navigation 1,070
Lark Navigation

Being a fixed yearly charge of 38,366 8
Notwithstanding the reduced amount of net revenue for the
last half-year, owing to the unusual charges to revenue and
other eircurnstanc,s ntentionci in the report, I think it
quite s ife to reckon the productive revenue at 110,0001.,
from which I deduct 601. per cent, to cover all outlay of
every description. It will he seen that our engineer esti-
mates this will be covered by 58 per cent. ; he may have
very reasonable hopes to be able to effect this and I feel
confident he will use every exertion to do so. Nevertheless,
GO per cent seems to me to be as little as we may reasonably
expect, the expenses will be when revenue bears all charges,
there is no reason why it may not be reduced to 53 or 50
per cent., or even lower; but this will require some time.
Taking the receipts from revenue to he, say,
110,0001., deduct for expenses, 66,0001., leaves a
disposable balance of 41,0001. ; deduct from this
bond, interest, and rents, 38,3601. Ss. 0,1., leaves
5,633/. 12s. 01, an amount which, in the first instance,
can be applied towards interest on the debt of the com-
pany, which there is good reason to suppose will be settled
on as liberal terms u circumstances will allow. There must
be a forbearance on the part of shareholders, and all may
have to submit to some sacrifice, which, cordially united
in, may enable this company to hold up its head, when it
will be in a position to maintain its rights, and then wo
may look to a greater degn.e of prosperity in time to come.
(Cheers.)
Mr. BROWN moved that a committee of shareholders
be appointed to cooperate with the executive committee on
all matters relating to the business of the company, and
especially to co-operate iu settling with the creditors; and
that Messrs. Bagshawe, Scholy, and Sturge be appointed es
such committee, with power to add to their number.
The motion was seconded by Mr. llorn, and after some
conversation, .

A GENTLEMAN, whosaid he was 3 director of the Me-
tropolitan Life Assurance Company who held 20,0001, of tho
company's bonds, complained of the difficulties ho
had hitherto experienced in communicating with
the directors, notwithstanding that his company hail
not pressed for payment of the debt due, and had
induced others to abstain from preferring their claims.
lie hoped that the executive committee would con-
sider the debentures that were due, and take means to
pay them off. Until those were paid off, let them pass what
resolutions they pleased, there would be an underground
current in operation which could not but damage the concern.
The resolution was, after a short discussion, carried, and
the proceedings of the meeting terminated.

MANCHESTER, SHEFFIELIkAND-LINCOLN-

RAILWAY.

The half-yearly meeting of the proprietors of this
railway was held yesterday, at Manchester. There was •
large attendance. The Right Hon, the Earl of Yarborough
presided. The directors' report was taken as read. The
principal portion of it has already appeared in the Express.
The Earl of YARBOROUGH then said, as the report and
accounts had been circulated among the shareholders for
several days, it would not be necessary for him to detain
the meeting by any lengthened remarks. Ho was in hopes,
last year, that they would not have had to show so large an
expenditure for parliamentary proceedings ; but the direc-
tors had been obliged to defend their property against tho
aggressions of the Great Northern Company, in a long coa-
-1 test in both houses of p arliameat. (Hear, hear.) It was
proposed by the Great Northern Company to take posses-
sion of a most important plot of ground in the centre of tho
works of Grimsby Docks. It would certainly have been
one of the greatest violations of the rights of property,
if parliament had allowed one company to take
possession of property that another company had
' possessed by purchase. Ile could not conceive that the
facts of the case had been properly represented to the di-
rectors of the Great Northern Company when they allowed
such clauses to be introduced into their bill. He felt it the
more necessary to refer to this, because be found, on refer-
ring to the report of the directors of the Great Northern
1 Railway, they stated that the Company's Bill, No. 2, pre-
pared to regulate the relations of that company with the
Sheffield and Lincolnshire company, " has also been
passed, after severe and protracted opposition. The com-
pany have established the right to accommodation for fish-
tog traffic and goods at the Grimsby Dodo, as well as power
to construct the necessary curves at Retferd, and
to erect a goods station at Sheffield ; and the pri-
vilege of using the Gainsborough line of the Sheffield
and Lincolnshire Railway has been confirmed." It
struck him that any gentleman reading that paragraph
might think the directors of this company were not justified
in opposing that bill, and thereby incurring fresh parlia-
mentary expenses. But though the directors had been con-
stantly expecting, and were ready, to treat with that com-
pany for whatever accommodation they might require at
Grimsby, they never had been asked on what terms they
would allow them to run from their station to the docks,
but without any communication with them, and without
any attempt at negotiation, they at once proposed to take a
plot of ground, without which it would be impossible for
the two docks to be connected together as originally pro-
posed, and the directors then felt it absolutely ne-
cessary to oppose their bill. The House of Lords
had refused to grant these objectionable powers, and the
Great Northern Company dud now obtained an act which
gave them precisely the powers which this company had
been *wing to concede. (Applause.) The directors had
not therefore been recklessly spenduig money, but had
been compelled to incur expenses in order to protect