The Express.
London, England, 1867-06-25 00:00:00

JUNE 25, 1867.

LONDON, BRIGHTON, AND SOUTH COAST
RAILWAY COMPANY.-(THIS DAY.)

The adjourned special general meeting of the
shareholdem was held at 1 o'clock, at the Bridge-house
Hotel, London-bridge, and, as might bare been expected,
the attendance was very numerous, while great care was
taken to prevent any but shtreholders from entering the
room. The chair was taken by Colonel BsrerrEuvr,
M.P., amid some cheers.

Mr. A. SABLE, acting secretary, having read the motion
convening the meeting,
The Climax/or said the meeting had been adjourned till
that day to receive and consider the report of the
investigation committee. They had no doubt all
received and considered that report, and he hoped they
bad also received the statement of the directors in reply.
The directors had endeavoured clearly and temperately to
state their views ; and he begged now explicitly
to my that they did not concur in the conclu-
sions of the committee, or consider them just.
He then quoted from the statement of the directors that
part of it which complained that the case had
been stated unfairly. (Cries of "No, no.") He con-
tinued quoting, including that part of the docu-
ment which referred to the heads of agreement with the
South Eastern Company. He also cited the last page, in
which the directors expressed their desire to see • com-
plete reconstruction of the board. He believed the
statements there made to be true, or they would
not see him there that day. (Cheers.) In conclusion he
called upon the meeting to act calmly, deliberately, and
as men of business, and said he hoped that whatever
course might be adopted it would conduce to the benefit
of the company.
Sir C. JACKSON observed that Mr. Laing, M.P., had
prepared the agreement with the South Eastern Company,
and as he was obliged to be in the House. of Commons by
2 o'clock, be thought it would be for the advantage of
the company if he were first heard in explanation. (Hear.)
Mr. LAING, M.P., who rose amid cheers, commenced by
remarking that hehad friends on the board as well as among
the shareholders, and had no feelings of personal hostility on
either side. As regarded the agreement with the South
Eastern Company, he said he had concurred with the com-
mittee that it should be carefully prepared without
delay, and without reference to arbitration. There
being a wide margin of uncertainty, he for one
could not have assented to the latter course. He
had had many interviews with Mr. Watkin on the
subject, and was met with a spirit of conciliation ; and
they hail arrived at a conclusion which was the award
he himself would have given had he been sitting as an
impartial arbitrator. The first clause of the agreement was
most important—namely, that the amalgamation
was to be on the North Eastern principle, end
that neither company was to be responsible
for the liabilities of the other. Under that arrangement
it would not matter what was the amount of capital or of
preference shares : the arrangement was simply • traffic
one as regarded the past, and capital was only concerned
in the case of future outlay for the further development of
the lines. The two concerns were to be worked
together as economically as parable, and the net earnings
fairly divided. If the thing was to be done at all, it could
only be done on the basis of facts, and the agreement was
based on the actual working and charges of the last year,
provision being made for a revision at the end of five years.
Some embarrassment might now arise from the circum-
stance that the South Eastern Company did not hold a
meeting concurrently with that, inasmuch as some South
Eastern shareholders might criticise the figures. The
actual increase of traffic on the Brighton line in
1866 was greater than that on the South Eastern
line, that of the latter having been affected
by the war on the Continent. While the increase of traffic
on the Brighton line in 1866 was 74,0001., the increase on
the South Eastern line was only 28,0001. The Brighton
working expenses in the same year were unusually large,
being 66 per cent. ; but there were certain expenses to be
eliminated, and the result arrived at was 50 per cent. on
the South Eastern line, against 53 per cent. on the Brighton.
He believed this was on the whole • fair statement of the
matter. There were certain items fairly chargeable against
revenue in the case of the latter line which had not been
charged against it, and he did not think anything would
be gained in that respect by going further back. There
was • saving clause, to the extent of 10,0001. a year, pro-
viding for any practical deviation from the figures in
reference to the working expenses ; but that reservation
could not materially affect the dividend. Under the
arrangement as it now stood, the Brighton Company would
have 45 and the South-Eastern 55 of the net receipts.
Careful provision was made for ensuring the traffic of the
new lines being fairly brought to account. When these
lines were opened the proportion of receipts was to
be 52 per cent, to the South-Eastern Company and 48
per cent. to the Brighton Company, and that proportion
happened to be the precise ratio in which the capitals
of the two cumpanies now stood. Practically the
amalgamation would be an amalgamation upon equal
terms between the two companies, and if they
were to amalgamate at all, it would, he thought,
be impossible for the wit of any man to devise
a more equitable bask (Cheers.) He then referred to the
Cannon-street station, and the proposed arrangement
with regard to it, namely, that upon the extra charges
which might be got out of the public going to that station,
instead of the proportions being 55 per cent. end 45 per
cent., the South-Eastern Company would have jJ per cent.
and the Brighton 4. With regard to the Charing-cross-
station there was to be • small toll received by the South-
Eastern Company. In conclusion he said it would be con-
trary to all experience if the development of traffic on two
systems of railway commanding a large amount of the
south-eastern and southern coasts did not prove ve.7
large. (Cheers.) Besides this consideration there was
the impossibility of raising fresh capital for competing
lines by means of preference shares. (Laughter.) In
his judgment an amalgamation of the two concerns
was a vital necessity. (Cheers.) It was in fact the only
means of stopping the useless expenditure which had been
going on for so long • period. (Cheers.)
[The meeting was proceeding when our report left.]