The Express.
London, England, 1849-10-23 00:00:00

30nt JUNE, 1849.

In the third report of the committee was inserted a state-
ment of the revenue, expenditure, and nit available earn-
ings of the company for the yew 1848, based on the assump-
tion that the amount of capital on which the board of
directors paid dividend was correct; and the result showed
that a dividend, at the rate of 6.827 per cent., was earned
on that hypothesis, but the following explanation was
added : "It will be obvious, from the foregoing statement,
that if the n t profits really earned had been divided by the
board of directors half-yearly, the dividend for the first half-
ye ar on the smaller cal i-al woull have been more ; anti the
dividend for the last half.year on the larger capital would
have been less than the above average dividend of 6.527 per
cent.

It will be equally, obvious that the dividend for the year
1819, supposing the net profits to be the same as in 1848,
would be considerably lege than the above average of 6.827
per cent., because the capital entitled to divi tend from re-
venue this veer will be much larger than the average capital
which received dividend from last year.
By punting the plan adopted in the account referred to,
but leaving out the first bait-year of 1848, when the capital
was small, and substituting the first half-yeu of 1849, when
the capital was considerably increased, it appears that the
net available earnings of that year (from 30th June, 1818,
to 30th June, 1849), after defraying working expenses, rents,
interest, and liabilities of every kind, was 164,1011. Is 61.;
and four per cent. on the capital entitled to dividend during
the same period, would amount to 164,4101.
AnNINCIS OE THE HALM-YEAR ENDING 30TH PINE, 1849.
It appears, from the accounts of the half-year ending
30th June, 1849, that after defraying all expeneee, of what-
ever kind, end all rents and interest procerly belonging to
the same period, the net available earnings amount to
69,1111. 19s. 10d. The share capital entitled to dividend
daring the game period, amounted to 4,332,7701.(5upp05ins
all the calls in wear to have been paid), on which a din-
dead at the rate of 31 per cent. per annum would be
70,4071. 10s. This capital dugs not include the last call of
61. per share on the Extension Snares, bscatoe the interest
on it was paid out of capital, pursuant to the resolution of
the general meeting of proprietors; nor does it include
dividend on the 3)0,0001. borrowed from the Great North
of England purchase account. These two sumo, however,
do not exceed the amount of unproductive capital during
the Mlle perinl, taking into account the large unproduc-
tive balance at the credit of the company in their banking
account.

WOREING EXPENSES.
Great care has been taken to menu* the exact amount
of the working and other expenses during the last year, in-
cluding government duty on passengers, and local rates and
taxes, the nations items of which will be found detailed in
the corrected accounN. It appears that the total arose
revenue of tke company, for the year, from 30th June, 1818,
to 30th June, 1549, was 664,2721. ; and that the working
and other expenses (including the rates and taxes above
mentioned), amounted to 280,9711, being at the rate of
forty-two and one-third per cent. of the groin revenue.
QUESTION RESPECTING DIVIDEND PUN THE HALF-TEAS.

The committee have given their most earnest attention to
the Question whether a dividend should be paid out of the
earnings of last half-year, and they have found it to be encom-
passed with great difficulties. Various suggestions have been
made to them by shareholders having a deep interest in the
welfare of the company, and those suggestions have been
considered with ell the attention which the importer ce of the
subject demand,. Many parties have proposed that
the over payments on account of dividend during
former years, should be met by deducting one-
sixth pert of the same from the dividends payable, during
an equal number of half-years, commencing with the one
now under consideration. A smaller number have proposed
that the over payment. 'should at onoe be platted to the
debit of capital. Others have urged that both on grounds of
principle, as well as of sound policy, as it affects the value
of the company's stock, the over payments should be met
at once out of the earnings of the last half-year, which
would leave a reserve fund of 7,9681. 134.7 d. to be carried
forward, as stated in Mr. Cottam'e report. The committee
have felt constrained, although with much reluetance--hav-
ing regard to the hardship which such • Inane must
entail on ninny shareholders—to recommend that the
last mentioned course should be followed. They have no
doubt that the suggestion first mentioned would have
advantages ►s regards the present convenience of a large
body of shareholders but they feel satisfied that as regards
their permanent interests, the injury can. d by such a course
would more than over-balance the present advantages. The
reduction of the future dividend, by a fixed per tentage dur-
ing several years, would be looked upon nearly in the same
light as • permanent reduction, ant consequently would
have the effect of reducing the market value of the stock in
nearly the same proportion. Upon the whole, the commit-
tee are of opinion that the most "death's mane would be to
pay off the whole sum at once, and to carry the balance to
the credit of • fund of 24,1371., agreed to be set apart on the
31st of December next, fur the replacement of the perma-
nent way, in terms of their third report. Having thus stated
their opinion, the committee leave the natter in the hands
of the shareholders, disposed most willingly to acquieeee in
whatever resolution they may come to on the subject.

PRESENT PIHANCIIL POSITION OP THE CUIdi•ANY.
It is satiefletory to the committee to be enabled to state
that any difficulty to sparing money st present, with which
to pay a dividend, formed no part of thej; reasons for recom-
mending that none should be paid. On the contrary, the
fund. now at the command of the board would enable them
to employ a much larger sum, if necessity required it; and
the calls new in ureter, which are in coure of settlement,
amount to 120,8341. The payment of these will be enforced,
in accordance with the resolution of the general meeting
of shareholders, before any ,new call shall be made.
Those aaaaa re, when paid, together with the sum
now at the cemented of the hoard, will suffice to pay all
the claims on the company for several months to mime.
and to finish all the work. now ic progress. Tne company
have, likewise, power to raise debenture capital to a large
amount, as explained in the third report of the committee, in
addition to their power to make further calls.

ROOKS KEPT AT NEWCASTLE.
Nearly the whole business of the company is in reality
transacted at Newcastle, end consequently the primary
books of the company are kept there. The results are
transmitted to York, in quarterly statements, which are
balanced at the close of each half-year. The books kept
at York have all been examined by Mr. Cotten., and the re-
sult of his examination is explained in his report and accom-
panying statements.
The books kept at Newcastle are exceedingly voluminous,
and would require a very long time to have them ell tho-
roughly examined by an accountant. In order to save time,
however, Mr. Cottam's examination was restricted, by desire
of the committee, to such books and accounts as were neces-
sary to authenticate his balances, leaving by far the greater
number of them unexamined.
The inquiries made by this committee into the state of
accounts kept at Newcastle, proved that, in one department
there are deficiencies exceeding 1,0001., of which the Com-
mittee have not been able to obtain any satisfactory expla-
nation. These books never having been examined by the
former board of directors or their audits,,, the whole subject
ought to have the immediate attention of the new board.
GREAT NORTH OP ENGLAND ARRANGEMENT.
In pursuance of a resolution, passed at the adjourned meet-
ing, held on the 23rd August last, your committee have met
the board of directors of the Great North of England Com-
paq I, and proposed to them a settlement of the Great North
of England purchase question, in the terms of your commit-
tees' third report, viz., the postponement of the time of pay-
ment of the purchase money of that railway for a period of
six years, from the lit July, 1850, this company securing to
the* such payment at that time, with interest at four per
cent. in the meantime.
The Great North of England board had, of course, no autho-
rity to conclude any arrangement with your coma itne ;
it being distinctly understood on both sides that what passed
at the meeting should not be used to the prejudice of either,
la the event of the companies not coming to any arrange.
meat, the whole subject was discussed with freedom, and
various modes of carrying out in practice the principle of
settlement suggested by your committee were considered. As
the result it was arranged that the Great Notch of Englaud
directors should consult some of their large shareholders ;
and a meeting of proprietors of that company was held in
London, the result of which was the following proposition
on the part of that company, communicated through the
chairman, viz :—That one-third of the purchase-money
should be paid on the Ist July next ; one other third by
debentures, payable in three years from that date ; and the
remaining third payable in five years, the debentures to
bear interest at four and a half per cent. per anuum until
payment.
The shareholders will not fail te observe the great differ-
ence between those terms and the proposition made on the
part of this company; and the committee can have no
hesitation in advising the shareholders not to secede to sash
terms, as it would be equivalent to a large increase on the
rent at present paid by this company. Your eummittee
consider the terms proposed by this company, and the
legislative means by which they offered to secure them, and
to remove all legal doubts which may exist reept moo the
agreement, to be highly advantagectu to the Great North
of England proprietors; and they entertain the belief
that the general body of shareholders in that com-
pany are dec daily favorable to such a principle of settlement.
Your committee, therefore, recommend that the power which
was vested in them, of negotiating with the Great North of
England Company, be now transferred to the new board of
directors ; and, as the time is near at hand when notice
must be given of any &pp:leaflet intended to be made to
parliament in the next ,ession, and the expense of such a
notice is trivial, your committee further recommend that the
necessary notice of such au application be given forthwith,

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It twist taadue.ood that ao bill will 0 : istron aced into par.
liamea°, except with the oeseurnnos of the them North ral
lieglamet Compagy.
11113WCAsTil ARO CUMULI AND MAZYPdIIt AvD
CLI-
LlsLa PAILwAve.
Tour committee bevies brought the sulject of the
Wain ef them railways mbar the lineation of the 'hare-
bell''', is their Ina reset, refs" le that report for a state-
=sat of the Isms en whisk Ms. Heelses, parportiog to
met es be it this company, Wend tab agreements for
knits these Rasa, sad Mush may be Mated generally as
being at the rate of six per asst. es the share eepital of the
Newcastle sad Catlike line, up to the Ist July, 1851; sad
afterwards at the rata of 7 per cent. is perpetuity, while
the Merypert sad Carlisle Railway was to be leased at the
rate of four per cent in perpetuity, to be Increased one per
mat in the *net of this company paying Rine per cent. on
its capital stock.
The permissive bilis, which wen introduced into perils
Meat is the last session, for enabling these several com-
panies to enter into such arrangements as might be as-
mated to by their respective shareholders, were strongly op-
posed, and were at length lost in a late period of the sauna,
after having beta approved sad passed by the committees of
both lioness.
The company has, therefore, at legislative power te lease
these railways, even it it were desirable that they should do
so, and onsequestly it would have been unnecessary for
your committee to have further alluded to the subject, were
it not that Mr. Hudson is now working these railways on
his individual account, through Mr. Allport, this company's
manager. Your committee have been requested to state
what are the Ware inteotions of this company respecting
Onus.
Your committee have had no diSculty in arriving at the
craclusion that it would not be for the interests of this
comp-ny to lease the Newcastle sad Carlisle Railway upon
the term. which bad been dto by Mr. Redsos sad
if the bills had been for wakening this com;psay
to accept the lease, the committee would have strongly re-
commended the shareholders sot to °mast thereto unless
the terms had bee. very materially altered. If an arrsap-
meat, however, weld be ems to with the Newcastle and
Carlisle, on terms satishotoey to this °Dempsey, the one-
saittee believe that terms of a satisfactory nature might be
come to with the Maryport Company.
Your committee were, th. refine, willing to consider
whether such an arrangement might not be corns to with
respect to either leasing or working both lines, as mould
be for the interests of all parties; and they, therefore, made
a personal surrey of the lines, and sought to he furn4hed
with the information necessary to enable them to arrive at a
right conclusion. With this object, they made the follow-
ing request to Mr. Allport on the 6th inst.
The committee of investigation request you te famish them
with a statenseat of the revenue and expenditure of the New-
math and Carlisle and Carlisle and Maryport lines, for the
hall-years *wise 31st Dec., 1847, 30J Jose, 1848, 31st Dee.,
1843, and 80th June, 1819; distingsnaleing the amount re-
caned for passengers, goods, coals, and mks respectively, at
sack of these periods ; amount of working 'spouts for the
same period, and showing the nett pre fit or lassos each taff-
y's:, after the payment of debenture interest and dividends
to these nespanis., and what rates of dividend have been
Paid.
The committee would ales wish to know your opluicn as to
what extent the traffic may be expected to increase or de-
crees', with your reasons for the same.
To this request Mr. Allport answered that the accounts
meshed were in the hands of Mr. Hudson, and that he
would apply for the same. Your committee, however, have
not received either the accounts or any &mower front Mr.
Allport to the other quer ions which they sent to him, but
they have received a communication from Mr. Phillipsoc
(Mr. Hudson's legal adviser), from which they present the
following cation :
" I find that it will not be practicable, without a little time,
to send you the Carlisle accounts in a satisfactory state, for
they require some examination and dissection, and Mr.
Hudson having left the matter to me, I must in these times
be very particular as to the accuracy of an account for which
I am to be in any way responsible.
" I do not see that it will be practicable for the committee
to go farther than giving their opinion as to the policy
of taking the Carlisle line, leaving the terms to after dis
You committee need scarcely say that it is impossible for
them to advise the shareholders to leaps these lines of rail-
way as any terms, until they are in possession of the infor-
mation they have sought, more especially as their inspection
of the lines, and the report of Mr. Harrison, their engineer,
has convinced them that a very large outlay will b- neces-
sary in the relaying of the permanent way, the completion
of a branch line of 12 miles sow forming on the one line and
the doubing of a considerable portion of the rails on the
other, before the lines can be placed in effective workiag
order. They recommend, however, that the attention of
the new board of disectars should be early alienist to this
subject.
Won DORMAN RAILWAY.
It as the duty of your committee to bring under the
attention of the shareholders the purchase, by the former
board, of 2,937 shares in this line, which Is a short coal
railway in th,- county of Durham, upon which the sum of
16,1081. ik. 6d. has bees paid out of the hada of this
cempany, and debentures are outstanding for the further
sum of 8,7121. los , making a total of 34,8201. 19s. 6d.
Your committee have made fall inquiry into the cir-
cumstances nadir which the purchase was made, sad also
into the advantages to be derived by this company from
their possession of these shares, and they are of opinion that
the oompany should adopt them, and apply for powen in
some future bill which they may have before parliament,
legally t r vest the same Ia the company. In the meantime,
as the share are steadies in the names of various persons,
your committee recommend that they be traneferred to three
trustees cia behalf of this company.