The Express.
London, England, 1858-04-02 00:00:00

I

CANADA.

UERAI IYESTIfka RAILWAY CONEA.VI UP

Annexed are passages from the report of the
directors

" It will be remembered that in the report to July 31,
11.57, it was stated that arrangements having been concluded
with the pro incial governs:ma fir the repayment of the
advance made to the company, etc amount hitherto reserved
as a sinking fund bad been traneferred to revenue account,
and which, •iels the undiritle balance of last half-year,
amounted to 68,2791. 16e. 3d. The director, have thought it
right at once to carry to the debit of this surplus revenue the
whote cost incurred and compositions actually paid for the
Deejenlins Canal accident last year, amounting to 30,031.
Is. 10d. ; and, in addition to which, bonds maturing at vari-
ous dater from one to Ilve yeere have been given fur
an aggregate sum of 9,822/. Its. id , which will be
placed again.t revenue as they mature. There ate
still three cc for unsettled cases, but the directors
do not ant;eipate that the amount to be paid will be
large, the heavy claims having loon already disposed of.
The whole cost of replacing the compound rails by lish-
jointed T rails hoe also been canted this half year to the debit
of revenue to the extent of 21,897/. 10.. 3d. The urgent
necessity of removing these defective rails was adverted to
in the engineer's report to July Slat,' 1857. The directors
here therefore written oil these two item instead of spread-
ing this outlay over several half-years. A further unusual
amount is also carried to the debit of revenue this half-
year, 63871. Se. 7d., being so much traMc receipts overstated
erroneously fur the half-year ending July 31, 1856, daring
the period that the audit-office books were under the
direction of the late accountant, and it ie therefore nem-
eery that this sum should be deduced from the pub-
lished earnings of the railway. These three items together
amount to 56,7371. 17e. Sd., red after deducting which,
together with the dorm proper to the half-year for interest
on government loan and on the i on peray'e bout* the balance
of not temps' somata to 103,641/. 9.. 11d.. out of which
the directors recommend the payment of a dividend for the
half-year at the rate of ft; per cent. per annum, which will
absorb 42,466/. 10a. Ild., and Pares surplus to be carried to
the ensuing half-year of 11,2071.19..
" The trallic data' the Ire Wiley, as compared with
Der c nre.pndiq period of 115,, shows a decrease of
82,2441. 3.. bd., but le only 12,5241. 6s. 6d. less than fur the
previewam months. The whoa working impasses have
aniumeed to 162,3141. 17.. 3d. agateet 186,616/. is. tra.
the ecempondieg purled of the prim par. The me train mile is 5.0. 611. against currecy. The rest per of
;maintaining the primmer way hes amounted to 24,4261.
Us. 24., being at the rate 01 1871. 17e. 7J. per mile per
annum, or a reduction of 371. 14a. 6d. per mile on the charge
during the .omepoediag half-year. The actual net
earnings of the has during the six menthe have been
110,77 e/. Its. 4d., which, miter payment of interest on
hoods and loans, is equal to SI. 13s. 6J. per cent.
per annum upon the expenditure on the opened lines.
Therms. de, eased truffle, ea compered with the correspond-
ing. period tof Ito year, require, afew words of explanation.
o son, the dote of the last report, the commercial affairs of
the Amer,can c,ntinent have bees shaken to their founda-
tions. With few exceptions, all the banks in the United
States were compelled to suspend specie payments ; a vast
tuniber of mercantile failu-es took place; fur several mouths
nfidenoe wane' mpletely paralysed, and a wild and resistless
panic cloud it ,to one end of the continent to the other.
The nature' rtatin of this has been a complete prostration
buinese, end when to this is added a mutinies(' decline in
the value of the staple productions of the comely, it is not
surpridogtbat the trot!!: on railways bar suffered a very heavy
decrease. Ihe constant fall in the price of wheat and It our
in the E tett rn markets hes chedied the transport of these
articles-the impossibility of effecting sales of produce ha.
prevented Western merchants and others from meeting their
engagements, and consequently the quantity decode put-
c hued for coftannaptioa in tht West has been entirely you.
Thin has necessarily greatly diminished the through traMc of
this and all other liars running between the East and West ;
but it is a .abject of onteratulation, however, to lad that in
this general depression the tr.ttfi, of the Greet Western Rail-
way c.,top4ON fAr4UrChir ails that of any other lines
similarly situated. The ramie came which have had so
widow en effect upon the through tragic have also WM.
wily produorde wry large decrees in the Mewl business of
the line. It coneequeoce of thirteens@ depression in prices
a large portion of I ant yeses wheat crop still remains in the
country unsold. 'This is reductive of serious embarrass-
ment to the agricultural and eminent.' interests.
•• Both Claude and the Western States of America are now
passing through s carers and depraving crisis ; a bountiful
Lanett during the present year will go far toylike@ the busi-
ness of the country upon a sound and improving footing, and
a rare and luring berth must result from the presentation
depression. The value hitherto placid upon lend and other
property haa bet n proved to be absurdly extravagant, and the
price of agriculturel land must now fall to a point which
will attract the clam of settlers most wanted in this country,
and thereby add materially to Ler prosperity.
iteviewing the commercial dismayed of last autumn, and
considering their effect upon the business of the American
continent up to the present time, the directors feel they are
fairly entitled to congratulate the shareholders that in such
a trying period the Great Western Railway has proved that it
powers movers sullicient to yield a profit in the working
of the half-year equal to a dividend upon the cost of the
line of upwards of Si per cent. per annum. They consider
that this feet is a conclusive evidence of the soundness and
intriaaie value of the property, and of its future prosperity,
when the boner.. of the mastery shall hove agar revived.
" There still remains the sum of 52,803/. So. 9d. to expend
in completing the utflniehed works on tho opened lines, to
being the capital expenditure to the limits of 4,932,6611. 16s.
currency, fixed by the shareholder, et the half-yearly meet-
ing held on 11th S. premier, 1456. The outlay on the
Sonia branch, including the cost of rails and rolling stock
already delivered for the working of that line, now
amounts to 422,1671. 2s. It Is impeded to complete and
open this branch fur trafflo beet,: the elm of the present
year, and it is hoped by the spring of 1919 the exrenaion from
Port Huron, in e.nnection with the Detroit and Milwaukee
Railway, will alto be in operation. The expenditure on
account of the Galt and Guelph Railway now amount. to
110,012 L 161. 2d. The line was opened for public traSe on
the llth September, 1857.
Immediately after the resolution peered by the share-
holders st the meeting in London on the Ph of October last,
in regard to the Detroit end Slihrenkie Railway Company
the direeturs (-surd a careful examination to be made late
the statements furnished by that cenipeny. as to Its &gram
sad accounts, and the result of a complete and thorough
inveatiga•ion showed that the sum 1.1 1.50,0001. sterling
would be sufft ient to meet the duo • ef the secured creditors,
and leave enough to open the line end provide the nemeary
mliisg et.ck. Negotiations were ecotriliegly cloned with
these creditors, which here resulted in an extension of time
for the payment of their claims. Upon these arrangements
hsingentsiletelt a metiers In foveae of Mr. C. J. Bridge*,
Mr. T. Reyardelt, and Mr. R. C. R. Becher (members of
the Canadian board of this Great Western Railway). al
trustees, wee executed by the Detroit and Milwaukee Com-
pany to secure !hi. pierce of 150,000/. This mortgage has
Wm mod carefully drawn. and under fie stipulations the
Mink °nano' of all the affairs of the Detroit and Milwaukee
Company is Mead is the hands of director. to be from time
to time nonurated by the Great Western Rtilway Outplay.
Accordingly the bad of the former et,ropeny has bees re-
organised. The amount of prom tree, required to pay the
Wrest upon the whole of the harrowed capital of the Detroit
end Milwaukee Company (4.956,000 lobe nr About 1,000.0001.
aterliag on • Sae of 18.5 miles in length), entering 60 per
Dent. for working expense*, is only shout 76 dole. per mile
per work, which places the mores of the compel beyond
say doubt ; and for whatever money la still required for that
compay lbws is the certainty of the traffic being quite tuft
latent to yield a full security and a handsome return.
" The value to this comptay of the connexion with the
Detroit and Milwaukee Railway the directors consider as
roost important, and they look forward consequently to
the Neese train of the Great Western Railway receiv-
ing a great weenies of bushiest tom that source. To
complete the eystem of railways in Michigan. oven which
this company relies for ea large an additionto its
through business, there has also to be considered the imp,-
tane Irak of about 90 mile., connecting the Detroit mid Mil-
waukee Reilway from Owoost with Port Huron, which is
immediately emonsits to the terminus of the Sarnia branch
of the Great Western Railway. That line, known ea the
Poet Huron branch of the Detroit and Milwaukee Railway,
when orapleeed, will form the most direct line between Mil-
waukee, the materiel outlet for the vast trade of the north-
emirate dolly., sad the great marts of commeneon theAtlon-
tit tee-board& The directors would be glad to me actin,
reps adopted to assure the comp's:ion of this line, and to
bon it mire the nom control as the Detroit and Milwaukee
main line, the vales of it to the Sarnia branch beim *bri-
o.. When ilaisbed, the system of railway ocaunnaication
in Northern Michigan, in coaanioe with the Cheat
Western Rillway, will be complete. Works to some ex-
tent her already been executed, but the further prosecu-
tion of them has, owing to circumstances, been retarded.
Tlie additional amount of trams to be reined on the cos-
pletioa of the lire above referred to, and the gradual re-
covery of the trade of the continent generally from the stag-
nation which sow pre. id., the directors feel convinced will
place the prosperity of the Groat Western Railway of Canada
upon the surest bash., and show that it will prove one of the
soundest and beet paying railway properties an America.
la order to carry cut the arrengentent for the repay-
ment at par of the advance of 770,0001. sterling from the pro.
Meial government, which was cautioned at the last reneral
meeting of shareholders, the director propose to avail them-
selves of the prospects of an easy money market to pay
off this debt at earlier periods than stipulated, and in Inch
instalments se circumstances may render convenient, should
the acquiescems of the Canadian gumming be obtained.
The amount it Is proposed to raise for this prier by the
ram of • guaranteed del suture stock, beenng 6 per mat.
interest, payable in London, and haltyearly, with the
von of conversion Otto ordinary shares at any time prior
to MI. The terms of conversion being as formerly, live
shares of 20/. 10e, sterling each for 1001. band. It is In-
tended to effer this Issue in the tint butanes to satitiair
shareholders of the company. With the large paid up share'
.agatal, and the extinctron of the prior claim of the govern-
ment, the simarity afforded (in commas with the
reads of the eimpamy) la isconteatable, and it is ooasiderod
the span of aoavertibihiy is a valuable feature. For the
caaradowas at shareholders and capitalists who may drive
to lewd owney &tea limited period, the directors have decided
to ham beads at the tome rate of interest, repay•ble la
IMII, awl with the same option of conversion attached."