The Express.
London, England, 1853-08-18 00:00:00

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LONDON, THURSDAY, AUGUST 18.

Some six weeks ago we showed what the increase
off Railway Traffic oe the greater lines c' the king-
dom bad been during the first half of the year
1853, as contrasted with the corresponding period of
1852; end, suggesting that increase of dividend did
not always follow increase of traffic, we promised to
examine how railway dividends were affected by the
general prosperity of the country during the last
eight months. 'f he half-yearly meetings being now
in full swing, we are in a position to do so.
Compared with the first half of the year 1852, the
North Western traffic up to 30th June, 1853, shows,
we may remind our !riders, an increase of 95,8611.;
the Great Western an increase of 56,7081.; the South
Western of 27,9641.; the London and Brighton of
29,2741.; the Eastern Counties of 38,4631. ; and the
(heat Northern of 46,9031.; or, in other words, the
traffic of those lines on an average had increased
something like 10 per cent. in the last half year.
And, if wo look at the returns of weekly receipts since
the 30th of June, it will be found probable that this
rate of increase for the whole year will be more than
maintained during the current half year, as compared
with the last six months of 1852.
Let us contrast this increase of traffic in 1853 with
the dividends of these lines. In the first half of
1832 the North Western dividend was at the rate
of 51 per cent. In the corresponding period of
1833 its dividend has been declared at the rate of
8 per cent. The 4 per cent. which the Great
Western paid in 1852 it has only been able to
maintain In 1853. The 31 per cent. which the
South Western paid in 1852 it has been able
to raise to 31 in 1853. In the corresponding
period the Brighton has increased its dividend
some four shillings a share, and the Eastern
Counties and Great Northern one-half per cent each.
So that, while the traffic of the first half of 1853 has
increased at the rate of 10 per cent., in one case the
rate of dividend has fallen one-half per cent., and in
the must favourable instances has only risen one-
'half.

In the United Kingdom we have only one rail-
way company which out of its own honest earnings
pays a dividend of more than 7, or that has any
hopes of reaching the parliamentary maximum of 10
per cent,. viz., the Lancaster and Carlisle line; and it
has acquired this high rite of profit simply by adhering
strictly to its original scheme of forming an indis-
pensable link in the great chain of western commu-
nication with Scotland, and by being in a country
where there was little temptation and no rival to
seduce or force it into branches, or guarantees. Our
highest rate, with this exception, is five per cent.,
with a tendency, in spite of increasing traffic, to fall,
Now, if we cross the Channel and go into France,
there the difficulty is to discover a line paying less
than 4 per cent. The Northern line, which carries us
to Paris, pays 7 per cent.; the Paris and Rouen 91
per cent.; the rail to Strasbourg, 8 ; and the Western
of France, no less than 13 percent. But then these
French lines are cot embarrassed and weighed down
by guarantees, preferences, silly leases, and either
junctions or non-paying branches. Nor have they
seesionally great parliamentary battles to fight,
costing sums equivalent to dividends in themselves.
The fine powers of analysis and system which the
French possess in so remarkable a degree are
brought to beer admirably on their railway man-
agement ; and though France is not reticulated
with railways in every direction as England
is, the great lines she has constructed
are all worked to a substantial profit, whereas in
England a railway system much more developed is
rendered little profitable by the contentions and
oppositions which its lawyers and engineers have
created for their own profit.

In England railway dividends on ordinary stock
are only screwed out of such economies as railway
Boards are permitted by these functionaries to prao-
ties. Take the sass of our greatest company as an
illustration : during the last half-year its gross re-
ceipts were 1,298,8541. ; bat of that hugs sum
little more than one-third, or only 460,9904
was profit and available for dividends. Be-
fore it can divide a penny among its proprie-
tors, it must first pay away in working
charges, in dividends to other lines, in interests on
loans, in law and taxes, upwards of 800,0001. a year.
In the case of its chief rival, the receipts last half-
year were 622,4981.; of this, working charges mono-
polise 233,8361. ; other prior charges require
170,9631.; and it is only after the payment of these
two sums that ordinary capital has any chance of
dividend. And so we might go through all the
companies is the kingdom and establish in the same
way out of their moonlit, the that that it is only oat
of economy that railway dividends can be extracted.
Hence every chance of profit in England depends
on good and cheap administration. Railway policy

has left English shareholders no margin forexiravi-
ganoe, negligence, or waste: their only hope (espe-
cially now that increasing tragic does not bring them
increasing dividends) is in directorial economy ; and
that is jest the point over which shareholders have
little or no power; except, indeed, by an eressite,
revolt, or revolutions that will overthrow the ruling
dynasties. it is in vain that receipts are large and
go on increasing unless working charges can be
kept down; and the reason why dividends are not
rising with Irak is that those charges are increas-
ing. On the North Western they have risen during
the last half year from 37.25 par cent. to 39.82 per
cent.; on the Oreat Northern, from 44 per cent. to
45.83 per cent.; and on all the other lines (except the
Eastern Counties, where there is a small decrease in
the working charges) they have risen much at
similar rates. For this increase, the rise that
has taken place in the value of labour and of
railway materials is to moms extent respoosible,
but not even Boards pretend to ascribe the whole rate
of increase to these causes; and when we see in
half-yearly revenue acconets items hie this : " Er-
remises connected witA Pa►liamentary Proceedings,
10,000 l.;" and hear Chairmen admitting that in the
very same period a further ma of 34,0001. is
charged to capital account under the same head
of " Parliamentary Expenses." it is very clear
that the limits of economy have not yet been
reached. And of each charges as these on revenue
or on capital, we may observe (with a series of
French yearly accounts before us) that there are no
such debits against French lines, and that their law
expenses rarely exceed a few hundred francs a year
—a state of things to which Railway Shareholders
ought to reduce English lines also.

The effect which these Parliamentary contests
have on dividends is by no means to be estimated by
their legal cats; for when the object of the great
struggle has been attained, when " the
bill" has been " got," and the legal charges
kr 'NUN; it paid. it is way Om do