The Express.
London, England, 1849-12-29 00:00:00

RAILWAY RFMTING.

DUNDEE Alf D ARBROATH.
Os Wedseeday a aposial ad essetiag of As elms-
holden the Dundee aid A Railmy Compaq was
bold within the Thistheltall, kr the purpose of re-
esiviag aad disposing of the report ef the committee appeiated
at the general meeting of 10th November last; anal Aso of
oemeildering notion given by the Dudes sad Perth mad
Aberdeen Itsileray Jesuitic. Ct.mpany, of bills to be brought
data peolimest duistg the misuse meet.., with Muses for
tame Of emedillestiou betimes the two camps/dm The at-
lemdeataimes assume.
Wm. Cisme But , Duties, me of the direstres of the tom-
gas,. wee sailed to the shale.
ORORGR KINLOCH, Boa., of Kinloch, brought for-
med the report cot doe mamittee, a copy of which bad been
Moat to evay shareholder.
The report stated that the opialoa of onamil had been
tales ea the &gramma% far a Imo entered into is 1846 be-
tween thee compasy sad the Dosage and Perth Railway
• ampeay, la wilco the latter 'company agreed to lease the
Dude' sad Arbroath Railway kw • term of years which the
seoseel coseidend valid ad obligatory cm both comies.
As alteration el the terms of the lease was permed tithe
Daisies and Perth Company, sad counsel recommeeded that
power to carry through the alterst on should be obtained
from parliament, me As quads. night give Me to much
litigation. 'rats advice the ammittee were of opiaioa
should be followed, mod that the sbarekolden should soscur
with the leasing conspuy Is obtaining from parliameat
the necessary authority to enter into the prepeeed modifies-
tiun of the terms of the agreement; provided the set to be
obtained shall contain clams for giving your anapest, suffi-
cient security fur maintaining the line; and for creating •
proper based for that purpose; and also clauses for sowing,
es for as ;gamble, the prompt and full p.ayament of the
guaranteed dividend; all the necessary detaiis to be
arranged to the satisfaction of • committee to be appointed
fur that p
Alter ati= convenatiou between Mr. Kialor.h and
Robert Mora.. Bp , &dumb', Rdiaburgh, r is the report
baling been issued wit bunt so opportunil being sfforded to
Mr. Horse and another ,ember of committee who were
opposed to it, of stating their vi we to the shareholders, •
circumstance which was explained to have occurred through
a slight intoundentanding as to the calling of the meeting
for the approval of the report.
Mr. Klif LOCK moved that the report of the eat
mittee he adopted, subject to certain modifications. He pre-
posed that a committee should be appointed to revise the
arrangements proposed between the two companies, under
the contemplated modificatioo ; and that they should take
WO that clams s sutticiently stringent as to the IllaillttlMlCO
of the line and plant, and the payment of the dividend, be
inserted in any ant of parliament to be applied for ; and that
the clams, when approved of by the committee, should
Mo be submitted to a special inutinar of the share.
holden ; that the arrangement for a modification should
be entirely contingent on their approval of the clausi ;
ad that, moreover, payment at the rate of if per cent. be
exacted from the Perth line, not only for toe put half•year,
bat also up to the time when the imputed modification shall
be motioned by parliament.
Dr. RRID, of Karkaldy, seconded the resolution.
Mr CAREL said, so far as he was aware, every one of the
directors concurred in the amasser nta proposed by the
committee.
Mr. HORNS said, that although a member of committee

and although Ith Lselpearrescy attrition In his power to the
su'ject, he had not seta wealth rot meson advanced for
agreeing to the modified tames. He was not, like Mr. Kin-
loch, almost • nominal shareholder, but held 200 shares rot
the original stock, and 200 of the 01 s- third new share'. Ett
ina, therefore, • lugs interest in the company ; and as be
held no shares in any other eailway,his desire to see this one
prosperous was not interfered with by any other feeling.
The light in which the question presented itself to him was
a very simple one. Is the teeing oompany solvent
or is it nut ? If it I. • solvent company, he
considered they were quite entitled to demand that the
solemn agreement, eat,fled by parliament, and on the
faith of which large iiinatments Abuuld be made, should
he strictly enforced. (H.ar, and applause.) If the Perth
Company is not estunt, and not able to fulfil the agreement,
thee be ooasiderel it would be a very i,judieious thing to go
into a new agreement with them, and one, which from any-
thing that appears on the face of the committee's report,
hey may be as uneble to fulfil as they were the previous one.
Mr. Horn* concluded by sieving two noolutions, in accord-
'.nee with his remarks, as an amendment on Mr. Kinks:lea
resolution.
The CHAIRMAN said, he wee in some respects similarly
situated with Mr. Hume, al hough not to the same extent.
He held forty shares of the original stock and forty of the
new one-third shares. He had neither bought nor sold. He
wee fist • partner of the Dundee and Perth, or any railway
th came in contact with the Dundee and Arbroath. Mr.
Horne's statement et 24,0001. of traffic returas for the year,
although correctly quoted from the printed document, war
700,. more than was rewind, the sum received for the mails
having been 7001. less then was anticipated.
After some discussion • division took place, when the
chairman declared that 3d had vat. d tor the amendment,
and 20 for the motion. A scrutiny was then demanded,
ware the teliess (Messrs. Ellice and Kinlich) reported that
thus were 163 shares in favour of the amendment, and
227 for the proposed modification—the amendment being
cuseequestle earned.
Ante making the necessary arrangements the meeting
then broke up, leaving set for nearly four hours.

CALEDONIAN RAILWAY.
REPORT OF THE COMMITTEE OF INVESTI-
GATION -CoroLumw.)

4011111111.11111 WIWI Malts coieraithe antics nave NOT
Nat SaNCTIONID NY PAKLIANIINT.
Scanlan CANTIAL.—By en arranges or, dated January
3, 1849, between the Lowden and North Wectere, the Lin-
crater and Carlisle, and the Caledonian Railway Compeniee,
on the first part, and the Scottish Central Company on the
second pen, it was agreed that the first parties should pro-
s ite plant and work the Scottish Central traffic. The ea:a-
le- are No be el pardolesepayment of balance of
annual burdens thereinbefore specified. 2. In pay-
ment halt
.y ea fly to the Seer tie h Central Cum.
pany of 35,7001. 3. In working expenses dis-
bursed by the parties of tke first pert. 4. In
p.yment to them of their proportioix of tolls for
through traffic. 6. Balance to be divided in equal moieties—
one moury to the Scottish Central, and the other moiety to
tar s uioern companies. And there is a provision to this
ff. et " that if the Scottish C. ntral Company shall refuse to
alter tolls atter being required to do so by the southern
compantee, the letter may determine the contract on the
.11-t January or 31st of July thereafter. The contract was
to endure for 25 years, unless the railway be sooner leased
by or amalgamated with the southern companies. This
eereenkat has been in operation since the date of it,
sad the effect of it upon the Caledonian Company
is, that for the first half year their propoei ion of loss amounts
to 14.1491., or near 6,0001. more than the satire tn.&
The nth and 9:h Victoria, cap. 96, restrains companies Rem
making a sale, lease, or other transfer of any railways, ex-
cept under the provisions of some act of parliament. D .übts
have been entertained as to the validity of the above agree-
ment, and the way in which it is drawn shows that the
framers of it studied how they might bast elude the previ-
sions of that act. Before the directors executed the agree-
ment they consulted some of the mat eminent lawyers*. the
&Adak bar, who advised that the directors had kept within
the powers conferred on the respective companies by the
general and special nets. But without reference to the
eafidity of the agreement it is very clear, that at the time it
was attend into all parties were under very erroneous im-
mune's. as to the value of the prospective traffic of the
line, and a he result has been so very much below the estimates
that the Caledonian Com: any are fairly entitled to have the
terms considerably modified, or to be allowed to extricate
themselves from it ; and for this purpose the bill for leasing
the saws should be opposed in perliament. In the meantime
the Scottish Central C Anpan7 are justly eutitled to every peen-
hie tacility and accommodation for the working cf their traffic
Mania AND Plarli,—Then are two agreements of the
same date, one as respects the Dundee and Perth, and the
other the Dundee and Arbroath companies. By the first,
the Caledonian guarantees to the Dundee and Perth 8 per
cant. on • capital of 430,0001., being 36,0001 ; end hy the
second, a similar rate of dividend to the Dundee and Ar-
broath,
_on a capital of 266,6661. 13sand, in addition,
the Caledonian compsay to work the lines and the Nowtyle
branch, and the whole of the plant was to be assigned to
them. The Caledonian company have paid the Dundee
and Perth company 69,0001. on account of plant ; bat the
Dundee company refuse to deliver the plant, and say they
hold the money as security for the performance of the epee-
went. Counsel have advised the Caledonian company that
they would not be warranted in paying the sum claimed, at
of eadertaking the duty or expense ef working the Dundee
and Perth line under these contracts. At the same time, the
Dundee and Perth company are adrenal that both companies
an bound to Jo to parliament for a lease. The Caledonian
company, at the present rated traffic, would suffer a loss of
about 40,0001. per annum by this cooped ; acd the commit-
tee are therefore of opinion that the agrment is invalid,
and strongly recommend that the bill to be introdund into
parliament be opposed.
The report gain
plowed/ : Allowing for the extravagant
opinions of railway strain universally held at the time these
agreements and leases were entered into, and admitting to
the fullest extent a license for directors to eared occasion illy
th. ir strict literal powers, still the committee are compelled
to declare that the conduct of the directors with respect to
these guarantee', indicates a want of judgment and diem.-
non. They mere from the commencement beset with diffi-
culties requiring the vastest prudence and caution in their
management; yet with a capital barely sufficient for the
original g, their over-zeal induced them to em-
bark in schemes and speculations to an eatent seriously com-
promising the safety of the company; and under such deli-
pions were they as to prospective tnffia on the guaranteed
lines that the chairman, by a circular dated the 3rd Novem-
ber, 1848. ventured to assure the shareholders that an add'
tion of 7921. par week of revenue would secure them a divi-
dend of 4 per cent. The receipts on these lines have fallen
BO far short of all the estimates as he lead to the conclusion
that the directors had tither acted upon very inaccurate in-
formation, or were indifferent as to the profit of the shun.
holders. The small stake they hold in the undertaking
gives a colour to the impression of their
nine being in
.
different as to its profile. There are mem-
bers of the board, who, in December, 1848,
bald 1,633 shares, but in the same month, in 1848, they held
only 2,56 shares, and few of them have mammon than a qua-
lification for their ants. Much stress has been laid upon the
tact of the London and North Western Company holding •
large interest in this company, and the advantagesand of the
e
connection have frequently been expatiated upon,
due weight with tho shareholders. It is much to be regrAted
that they did, not ass their inflames in eentiaing the