The Express.
London, England, 1867-07-26 00:00:00

HURDLE RACE.

100 fr. sweepstakes. 13 entries but only 5 started. Won
by Duke of Hamilton's Gams. The Duke of Hamilton was
on the course.

To-morrow there will be steeplechases at the Gazemetz
Hippodrome.

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

An extraordinary meeting of the shareholders
was held at 1 o'clock, at the International Hotel, London-
bridge ; Mr. S. LAING, M.P., in the chair ; to authorise the
issuing of fresh shares or stock to meet the liabilities of
the company. The attendance was not so numerous as
that at some recent meetings of the same company.
The CHAIRMAN observed that the circular sent to the
shareholders sufficiently explained the object. The present
board, on assuming office, found the financial position
of thecompan7 one of extreme difficulty, and it was only
by great exertions that the company had been maintained
in • state of solvency. The amount of stock to be issued
was involved in the question of the advance by the Union
Bank. The floating liabilities were about 700,0001. of
which .550,0001. was lent by the Union Bank. Under the
circumstancm the best course with regard to this 550,000/.
was to effect an equitable compromise. The Board having
addressed themselves to that question as the main one,
succeeded in making an arrangement which was
fair for both parties, and exceedingly beneficial
to the Brighton Company. Of the 700,000/. of stock, the
bank returned 87,0001., retaining the remainder and can-
celling the debt of 550,000/. The whole of that floating debt
was thus got rid of, and the company obtained back • consi-
derable portion of its stock. In that way the directors had
be enabled to make arrangements with regard to the re-
mainder of the floating debt, and it was now in a posi-
tion to deal with the unissued stock. There was power
to issue about 1,230,000/. Application was made to the
legislature for power to issue it, and yesterday
the bill obtained the royal assent. The liabili-
ties exclusive of those in the case of the Union
B ink had been estimated at from 1,200,0001. to
1,400,000/. It was difficult to mention the precise
amount, but it would be necessary to get
fresh debenture powers, and 600,0001. or 700,0001. would
be required to wipe off the remaining debt. He had
no doubt that with half a million in money now, the deben-
turepower, and the surplus land, the board would be enabled
to meet all the liabilities of the next twelve months. Two
or three hundred thousand pounds more must be raised
to compete certain lines, and the company would have to
consider hereafter how that should be raised. As re-
garded the mode of raising the amount now required,
the board proposed that the money should be raised
by issuing ordinary stock. It was doubtful whether
preference stock would be taken by the public ,•
and as to pre-preference shares they might as well
attempt to pay off the national debt as to induce
parliament to sanction the issue of such shares, unless it
could be clearly shown to be the interest of the existing
preference shareholders themselves. His experience had
led him to the conclusion that the best course was to raise
money by issuing stock, as the government did, on
the best terms on which it could be obtained ;
and he believed the money could be better obtained by
inning ordinary stock than in any other way. There was,
too, this advantage in such a mode of proceeding, that the
stock now to be raised would not intercept the future divi-
dend on the profits of the line. Situated as the company
was, it was much better that for the next four
or five years the company should gradually work up its
dividend than that it should be burdened with any
fresh issue of guaranteed stock. On the ground of
morality, moreover, be considered the latter course
objectionable. On these grounds, it was proposed to
issue the amount required as ordinary stook. It would
be offered in the first instance to the ordinary
shareholders. It was of great importance that the scheme
should he successful, and for that reason the issue must he
eta low price. A margin of one or two per cent. was not
• sufficient margin, and the directors had there-
fore decided to recommend that the stock
should be issued at 45/. per 1001., 10/. to be
paid on the 6th of August, 15/. on the 16th of
September, 10/. on the 16th of November, and
101. on the 16th of December. After stating
that the half-yearly meeting would not be held
until the 30th of August, he concluded by moving,
"That in pursuance of the London, Brighton, and South
Coast Railway Act, 1887, the board of directors be and
they are hereby authorised to issue, as ordinary stock or
shares, so much as has not already been honed of the
capital of 442,500/., and 1,163,0001. created in pursuance of
the London, Brighton, and South Coast Railway (Ospital
and Powers) Act, 1866, by the resolutions of the extraor-
dinary or special general meeting of the proprietors
of the list (1.. y of August, 1866, and to dispose of
the same at such rate of discount or otherwise as
the hoard shall from time to time think fit.
That in pursuance of the London Brighton, and South
Coast Railway Act, 1867; the board of directors be and
they are hereby authorised to attach to the debenture
stock of the company which may hereafter be issued under
the powers of the company's acts, such rate of interest
as the board may from time to time deem expedient."
Sir C. JACKSON seconded the motion.

Mr. SiMUDA moved as au amendment that the meeting
be adjourned for a month in order to allow the shareholders
time to consider the proposition laid before the board. The
shareholders had already been induced to sanction the
disastrous agreement, and he deprecated any haste now.
(Hear.) He did not believe in the necessity of raising
money in such an onerous way, or that the money was as
urgently required as had been represented. Three or four
hundred thousand pounds might be required, but could not
such a trifling sum be raised in some ether way ? They
could not want more than half a million, and even at
7 per cent. that would only involve a sacrifice of 10,0001.
a year over the ordinary rate of 5 per cent. Would it not
be better to sacrifice a quarter per cent. of dividend
than to raise money on such terms as were proposed from
the chair

[The meeting was proceeding when our report left.]