The Express.
London, England, 1849-08-20 00:00:00

1.11,011 T.
"The traffic fee the half-year ending the 30th June
amounts to 254,8271.; the expenses, including rates end
taxes, to 126,7524 The comparison with the corresponding
half-year of 1848 is as follows:—Treffic for the half-yme
ending Jene, 1848. 208,9941. ; June, 1849, 254,6271. ; in-
ane, in 1849, 45.6331. Expenditure for the half-year end-
ing June, 1848, 118,3701.; June, 1849, 126,7521.; inereme
in 1849, 8,3821. Iscrease of net revenue, therefore, 37,2511.
Average number of miles open for the Watley ending
Just, 1848, 194; June, 1819, 219. The blame of upon.
diture in 1849 arises entirety from the increased number of
miles of railway, the maintenance of which ailargea
eeeee us. The !Mance disposable fordend is
108,660 3s. 3d. This balance remains after the payment of
all interest on capital, whether productive or unproductive,
swept interest at the rata of 4e per cent. for six months on
deo 413,8471. laid out on the twenty miles af railw in
nasal progress of coeducation during the past half-liar,
mil which will be open fee traffic before the clove of the pre-
sent month.
"Ilse Moth and there capital entitled to
dividend this half year is £6,521,369 0 0
"The die:sews, theref.we, recommend that
a dividend after the rate of 31 per cent.
per mums (or 161. 3d. on 501.), be de-
clued, amounting to 105,972 4 7
" And leavings balance to be earned to the
next half year of
" It now becomes the duty of the directors to make a few
observations on the increase of the share capital entitled to
dividend this half year, as compared with the last:
" The capital now entitled to dividend is £6,521,368
"The capital so entitled upon 31st Dee
last was
"The apditinual amount, therefore,
'Milled to dividend this half year, is £2,814,033
The ahareholdeis have always been aware thst, from the
terms under which they have, from time to time, resolved to
make their several bums of capital, this large addition to the
amount entitled to dividend would arise at this time. It has
already been shown that there is an uterus' of 37,2511. in
the net revenue of the preseat half year, as compered with
the corresponding six mouths of 1849 ; and, cot sequently, it
is to the increase of cari.al now entitled to dividend that
the diminution, of the rate of ditid- nd is to be attributed,
and not to any faliicg etf of revenue or increase of expense.
This capi:al, it will be remembered, consists, firstly, of new
501. and 401. shares (crested unite resolutions pissed by the
proerieters on the 7th December, 1844), on which, and
the Tenths (created under resolutions of the proprietors,
passed 29th August, 1846), the first dividend, payable from
revenue, was to be calculated from the Ist day of January
(or July) next after the opening of the Waterloo Extension,
that is, on the lot January, 1849; and, secondly, of
such amounts as have been called upon the Thirds (1847),
(created under ma lutions of the proprietors of 17th Nmem-
b r, 1846), on :iotla December, 1848, and 30th March, 1849.
To avoid misapprehension, it is right to remark, that the
item of 52,1631. 13s. for interett, in the capital expenditure
of the put half year, includes the payment of interest on the
new 501. sod 401. oharesof 1815, and the Tenths, to De2em.
tier 31st, 1848, such payment btinv, by the terms of the crea-
tion of th,, shires, to be berms by capital until the shares
came in for dividend. Capital thus bears no portion of the
burden of interest which is chat gtable on the revenue of the
past half year ; while the revenue is charged with the int.-
rest on a large unproductive expenditure. The directors,
therefore, have satisfaction in bang able to refer to the re-
port of the auditors, showing chat the canted account has not
been burdened to augment the amount applicable to divi-
dend—a point which has recently excited a more than ordi-
nary degree of anxiety ammo; ilway proprietors.
The branches from Guildforl to Gadalmirg and Farnhem,
and the loop line to licunslow, will be opened for trsffic
during the present month. The company will, after this
present month, therefore, not have a single new line or
branch in progress. As regards the lines now suspended, or
not commenced, the directors will repeat the assurance they
g .76 in Nozember last, v.z., "that no further engagements
in relation to tome lines will be entered into, until the matter
shall hew been again f submitted to the re-conside-
ration of the proprietors, specially cenvened for that purocse,
and until the whole of the shareholders shell have an oppor-
tunity of recording their votes, and a dect..ed majority sha'l
have determined in favour of the er.mnition of the under-

taking."
At the last meeting the directors pledged themselves to
enforce the 111),t rigid economy consistent with the efficiency
em the service. This they have done ; and as the silaries
and wage a formed • large item in the expenditure, they
were reluctantly compelled to reduce the scale of payment
thronahout the establishment, taking the larger proportior.ate
amounts (tom the higher salaries. In determining upon
these measures, the directors resolved to tale no remunera-
tion for their own services during the last six months. The
diredon are glad to acknowledge the ready acquiescence
with which the reduction was generally met, as well as the
faithful and itah,us service rendered by every officer and
*levant of the establishment, no less since than before the
redaction.
The shareholders are aware that a bill was introduced by
Lord Monteagle in the last session of parliament, under the
this of a Railway Audit Bill. Them[het of this measure would
have been to impose permanently on railway companies
the expense end inconvenience of • large Government
staff of officia.', and to transfer that power, which
the shareholders alone have a right to exercise, to a govern-
ment bond, wanting in the experience requisite for the
successful conduct of commercial transactions. The directors
therefore telt bound, with others, to oppose it, and the bill
was withdrawn in the House of Commons. At the tame
time they desire that the shareholders should have the fullest
power of au..it and ezaminatios ; and it is proposed to hold a
meeting of the representatives of different companies, to con-
sider it any further provisions are really necessary to secure
this object. In the mean time, in order to secure a thorough
examination of the accounts of this company, the directors
beg to state, that knowing the laborious nature of the duties
of auditors, when thoroughly performed, and the length of
time which bad been devoted to the task on a former Wl-
' gin by the present auditors, they thought it right to offer to
I defray whatever expenses the auditors might incur in obtain-
ing the assistance of a professional accountant; they, how-
ever, preferred to pertorm themselves the task committed to
then by the shareholders, and have accordingly done so, as
their report explains.
The maintenance of the working stock of the railway to its
full efficient value has attracted • degree of attention pro.
portioned to the importance of the subject. It has been the
practice of this company, from the opening of the line, to
keep up, at the r xperse of revenue, the engines, carriages,
• either by repl icing those worn out by an entirely new
article, or, as the case might demand, by the renewal of
those parts requiring it. New engines, (*nigger, and wag-
gum have thus been added from time to time to the original
stock at the expense of revenue, and this principle will con-
tinue to be strictly carried out in future. The maintenance
of the rails and permanent road is a subject of not less im-
portance. Ia respect to the wooden sleepers, as symptoms
of decay appear, they have been, and will continue to be,
replaced by new sleepers, at the cost of revenue.
The rails are, generally, in excellent order.
It is to be remarked, that the preset contract prices for
the maintenance of the permanent way are high. This arises
from these contracts having been the first entered into afar
the opening of the respective lines, when the works were
untried, and in some cases not thoroughly completed ; a very
large reduction under this head will cor.sequently be effected
at the termination of the year 18.50, when the present con-
tracts expire. When this period arrives, therefore, and the
revenue is relieved from the additional expense under this
head peculiar to the first years of a railway, it will be proper
to consider what provision should be nude for the expense of
exchanging the old rails for new as the necessity shall arise
for doing so.
The applications to parliament,which the proprietors sanc-
tioned at the lee meeting were successfully prosecuted.
' Under the amended act of last session, the proprietors are
authorised to alter the halt-yearly periods at which she ac-
counts of the company have hitherto been made up; and
thus a more equal division of the half-yearly earnings and
dividends of the company may, when the proprietors No It,
be effected. An important alteration has also been MI6 Y
the right of voting by the oroprietors at general ateothige,
and • fuller repreeentetion has been given to those tame
he:ldioms are small in amount, by the aioption of the scale of
voting of the Company's Clauses Consolidation Act.
The directors cannot coaclude this report without ail-
verting once more to the present state of the company's
financial position. The dividend for the past half-year
is less than they had anticipated, and the directors, fa
common with proprietors generally, feel sensibly the lie
' appointment arising from this cause; but it must be horse
in mind, that the company has virtually no outstanding
liabilities, nor any obligaions to ether companies or parties
beyond its own control ; all the new lines in progress of con-
traction are brought to a close, or will be so in the present
month, and these lines are provided in working stock, the
whole of which,with very trifling exceptions, is paid for. Thus
the directors feel enabled to state with confidence that from
this period the affair of the company will progressively
amend, and as there can net er be, without the distinct
authority of the proprietors, given as it must be assumed for
bone heist objects, a recurrence of a period wh• n the capital
entitled to cividend shall be so great in proportion to the
caroler as at the close of the present half-year, so the direc-
tors believe it may safely be predicted that at no future period
will the affairs of the company be in a state of such depres-
jest as at present. At all events, the proprietors may feel
entire confidence, that the undisguised truth is before them,
and that no effort has been niedetu conceal or qualify the real
state cd the preperty or prospect,. of the company.-181h
Accost, 1849."
The CHAIRMAN said—After the comprehensive report
which you have just heard read, it wculd be but vain on my
part to occupy your time with much repetition. Drubtlem
much may be said upon the tact of the depression of the pre-
sent state of thh.gs, and also when considered in a national
point of row, I thi .k toot much, very much, may lieewise
be said with reference to an early and probable restoration
of railway property. (Heir.) Be, ntl,men, you are all
of you too well informed of the causes ants effects of these
things, std by your experience in your own particular avo-
Wions of life can too well judge of the depression which has
affected every section of soci.ty, to make it necessary for ma
to occupy your time in pointing them out. Indeed, after
the vicissitudes of these three years, it would be hard
If I had not fouod th it would be the height
of indiscretion and folly to endeavour to lay too flat-
tering a pidure before you, or to present you with too

farnarable • statement of your prospects, however accurate
and well feuded might be the data upon which I could
pooped. I say, therefore, that my objets on the resent on-
casks is to allow the report of nay colleagues In the diete-
tic. to speak for itself. (Hear, hear.) But there are one
or two meats which I feel 1 ought not to pass over in silence.
As I have before observed, you must be sensibly aware eft
the nature of the depression which has prevailed in all slamsl
of society, gad also that the account just submitted to yea is
an aseount of the worst half of the year. This is gym
Aesop& In our district mews peculiarly, bemuse we have me
Collllllllo* Or autnufactures within it to give a movement to
trade ia tb• early put of the spring, which is found in the'
northern districts of the Pantry. (Hear, hear.) Yoa are '
also aware that the large capital mentioned in the report
as falling chargeable to dividend in this half-year is
the cause of the present diminished dividend ; and
I trust that the auditors —or one of them at
least—will feel it. convenient to make a few remarks
on this subject, in order to convince you, as I em most I,
anxious you should be convinced, that at no period, dating
even from the commencement of this railway under the
auspices of the hon. baronet, whom I am glad to see pre-
sent on this moment, down to the present time, no dividend
has been assisted er added to by means of a fallacious ac-
count or other irregular statement, which upon correction,
after a severe audit or other process of investigation, could
have occasioned the present diminution of dividends.
(Hear, hear.) That point I beg of you seriously to reflect
upon, as it is the objet point upon which I am anxious that
no misapprehension should exist. Ido not wish to allude to
any particular companies, but this is a point on which com-
panies hays become subject to various remarks, and if there
is one thing that this company prides itself upon more than
another it is, that it stands clear of any serious intention
of increasing your dividends by means of fallacious accounts.
(Hear, hear.) The result, I repeat, is attributable
to the fact of bringing into our accounts a very large amount
of additional capital, amounting to about 2,800,0001., and
upon the whole of which the declared dividends now became
chargeable. Another great and real cause of the evils under
whica we labour is simply that the early success of the rail-
ways, and the accumulation of traftlic beyond what was seri-
cipatcd, rendered every person, whether director or share-
holder, anxious to secure an interest in their extension.
This was considered in parliament; and then the notion
which prevailed among the railway world as to their un-
ceasing increase of traffic was confirmed and fully established
by parliament, as is sufficiently shown by fur. Oladstone's
act, in the introduction of that 10 per cent. clause, by which
railway property was rendered amenable to government,
after paying 10 per cent., and subject to the revision of tolls.
This act clearly shows the opinion of the legislature
to have been that this property was susceptible
of improvement ; and, feeling that we were likely
to succeed beyond what was at first anticipated,
the whole effort of the legislature was to increase the chances
of competition, and to subject every town and population to
it. Hence arose the eesire of your directors 6,) secure such
routes as they possiliy could, in order to avoid or avert the
intention of the legislature in effettirg that competition.
(liver. hear) Now, gentlemen, I hope I have pointed out
to you what is tbs real cause, the nature, and the effect of
those measure.; and if what we have heard, which I am
quite willing to admit, and I am sure my colleagues will
join with me in admitting, of our having been too fart, is
again to be urged against us, I would ask you, under the cir-
cumstances, where is the railway company, or I may
say, the proprietary, whose eye is sufficiently clear
to stand up and take the mote frem ours? (Hear, hear.)
He concluded by moving the adoption of the report.
Mr. SMITH seconded the motion.
Mr. MADDEN rose to ask some i nformation relative to
the accounts ; they stated that 98,9201. had been advanced to
the Taw Vale Cumpacy. At a meeting of that company, how-
ever the chairman stated that they ha 4 received no such
sum,, the
total sum they had received being 47,4001., making
a difference of 51,6201. He thought it impossible to have
any confidence in the directors without some explanation
could be given of that discrepancy, and if it was not given he
would move for the appointment of a committee to inquire
into the whole of the affairs of the company.
Mr. COHEN wished to know what had been done in
order to &driest,e the goods traffic. From their position at
Southampton oho whole of the Enic and West India traffic
ought to come over their line. lie was cenviaced that it
was absolutely necessary to the well governing of railways
that revernment auditors should be appointed. (Cries of
No.")
The CHAIRMAN steed that at the last meeting it was
understood that the question of goods trial should be in-
quired into. Accordingly the subject was referred to a cont.
=Wee of the direet, re, who had made a report, which if they
pleased hs wooll now teal to them. The report was
signed by Mr. Themes Smith, Colonel Reid, Mr. Henry
Lacy, and Mr. Matthew
The SECRETARY then read the report, which stated
" the tonnage of goods collected and delivered by all parties
in London, and forgave-id outwards and inwards by the
railway for six months, ending the 30th June, 1849, was,
exclusive of tonnage by water to and from Nine Elms,
47,457 tons, and in the following proportions :
By the ennpany delivered or collected through their
agents, Messrs. Chaplin and Borne, 6 009 tons, or about
one eighth of the whole ; by the carriers 16,696 tars, or
about three-eighths ; and by the public in their own carts
24,752, or about one-half. As it is evident that great Weep-
prehension lasts arisen in regard to the connexion between
Moen. Chaplin and Horne and thes company, it may be nee
eatery to remind the board that Meters. Chaplin and Horne
are not earriers at a.l on the South-Western Railway ; they
are simply agents of the company for the collection and de-
livery of goods in Loudon (in other words, for the carting),
and they act in a similar capacity for other railway CUM-
panics ; that they charge rates fixed by the company for the
cartage (varying, according to the class of goods. from 475.
to 675. per ton) ; and that no advantage whatever ac-
crues to them from the carrying upon the railway, or in
any other way, beyond the above payments for their
services as carters of goods. The total teem paid for
the service for the last half-year was 1,63.31. 13s. 9.1.
The committee considered whether it would be advantage-
ous to the company to take this airtime into their own
hands, but are doubtful whether economy would be pro-
moted by the adoption of such a change. A much larger
question is, however, involved in the consideration of whe-
ther the company should not take steps to secure for itself,
so far as possible, the business of the carriers now tieing the
line, and they have had before them veions conflicting
views on this point, hut have not yet arrived at any conclu-
sion which is so perfectly satisfactory do them as to induce
them to recommend a change of system at present. It may
be remarked that the merchandise traffic on the S nith
Western Railway defers entirely from that on the northern
lines. It is not furnished in large masses at any given point,
bat, arising in small quantities from very numerous and
often distant sources, the carriers now using the line have
clearly an interest in working to bring the traffic on the
railway."
After some discuesion the report was adopted, and
a dividend at the rate of 31 per cent. per annum, free of in-
come tax, declared, the chairman expressing his opinion that
it would yet average 4 per cent. for the twelve mouths.
Mr. J. W. CROKER said he was sorry to be obliged to
impugn the prudence and foresight of their directers, fir he
believed they had been awing according to the best of their
judgment, and no imputation whatever mild rest on their
personal characters, although their conduct had been meet
unfortunate. From the first moment he had joined the
company he had protested against the steam packet plan.
(Hear, hear.) He had some knowledge of the nature of
that species of speculation, and he considered it extremely
unadvisable that a company which was already over.
burdened with collateral lines, should also entail
on itself a speculation which it could not carry
out profitably, and of whose management their
officials were as ignorant as any of the shareholders. On the
last ~cession when they met he had said, that if they went
on with the speculation, their dividend would be reduced to
2 per cent. ; and he asserted that if the accounts were pro-
perly kept, the dividend at present would be under 3 per
cent. (Hear, hear.) He also asserted that hut for this
steam-packet undertaking, it would be 5 per cent.; for they
had paid 50,0001. ant of the sum which ought to be divided
amongst them. Their dividend at present was 31 per cent.,
and he begged to ask whether they did not guarantee 5 per
cent, to the steem-packet company.
The CHAIRMAN replied in the affirmative.
Mr. CHOKER continued to say that as the proprietors in
the railway company had been brought from a dividend of
8 per cent. to per cent., it was very hard that they should
be called on to pay 5 per cent. to the Steam Packet Com-
pany on the money which they themselves had lent. As he
believed that few en his side of the table understood the
question, he would bring forward a motion which if carried
would enable them to get at the real facts of the case. It wee
that a committee of flee shareholders who were not share-
holders in the Steamboat Company, should be appointed to
inquire ir.to and report on the origin, progress,
the present state and future prospects of the
eonnexion formed by the South Western Railway
Company with the South Western SAME Packet
Company. If the inquiry were not granted, he for one
could see no prospect of an increased dividend. (Hear,
hear.)
Mr. COHEN seconded the motion, which, after some
discussion, was put to the meeting, and it was negatived by a
large majority.
Mr. CROKER, on behalf of himself and others, warned
the directors against making any payments under the lease
panted to the packet company.
Mr. BAKER said that it would be gratifyiog to a large
body of the scareholdere if the directors on this line would
imitate the course adopted by the Great Wooten% Company,
as to the reduction of their number. He premed that the ,
number of directors on this line should be reduced to twelve,
and of these twelve he trusted that four would annually
retire, in order to make rem for others selected from the
general body of the proprietors. He begged at the same
time to state, that in his opinion their auditors were very
much underpaid, and he would promos that their remuners.
non be increased from 201. to 1001. a year.
Mr. LOCKE wished to know, before Mr. Baker's motion
was proceeded with, what Mr. Key intended doing with
respect to his questions.
Mr. KAY said, that having received certain explanations
tam their chairman, he did not wish to take the reepoasi-
bility on himself of adopting any specific course of proceed-
far., without first having a consultation with thorn in the
tenantry whom he repreeer ted.
Mr. LOCKE trusted that Mr. Key and his friends would
be prepared with some substantive plan of action at the
next m eting.
Several proprietors recommended Mr. Baker to withdraw
his motion, and expresso 1 a hope that the attention of Mr.
Kay and his Manchester friends would be especially di-
rected to the point involved in his motion.
Mr. BAKER then withdrew his motion.
Mr. LOCKE objected to leaving matters so important as
those alluded to in Mr. Kay's questions to a conference be-
tween the directors and a section of the shareholders in
Manchester. The whole body of shareholders should be
parties to the proccedeng in his opinion. (Hear, hear.)