The Express.
London, England, 1867-08-24 00:00:00

RAILWAY INTELLIGENCE.

OREAT WESTERN.

A further report of the committee of consultation
appointed at the adjourned general meeting of proprie-
tors, held on the 29th March last, "to consult and advise
with the board in reference to the financial position of the
compar, and the organisation and management of its
affairs,' has been published. The committee say—ln their
previous report the committee informed the shareholders
that the floating debt, which amounted to 1,300,000/.
on the 31st July, 1866, had then been reduced be the mum
of 614,000/., and they have the satisfaction to state that
the liabilities under this head have been so much further
re iuced as to stand now only at the sum of 341,5301.,
while the debentures have been regularly provided for as
they have become due. These facts are of so manifest im-
portance that the committee may fairly congratulate the
proprietors upon the material improvement in the finan-
cial position of the company which they indicate. It was
intimated in the same report that it would probably be
necessary to continue for a short period the payment of
dividend In some form of the company's stocks, in order
that the revenue:might be available for dischaiginglithe
repudning temporary loans and liabilities, and aa
the confidence of the public in railway securities
has not yet recovered from the severe shock then
recently encountered, the proprietors will be prepared for
the issue of the dividends for the past half-year in pre-
ference or debenture stock of the company. The effect of
this operation in the preceding half-year has been to place
the credit of the company in a greatly improved condition,
and, looking to the vast importance to the shareholder;
of every class that the finances of the company should not
only be placed beyond the risk of present embarrassment,
but that they should be established upon a sound perma-
nent basis, the committee cannot too strongly urge upon
them the wisdom of unanimously acquiescing in a repeti-
tion of that proceeding. The committee have been in-
formed that some proprietors would prefer to take deben-
ture stock, which takes priority over the Six per Cent.
Irredeemable Preference Stock, while others would choose
the latter as bearing the higher rate of interest. They,
therefore, recommend that the option should be afforded
to each proprietor of taking whichever of the two he may
elect. Thi further investigations which the committee
have made confirm the opinions expressed in the pre-
liminary report as to the security of the debenture and
preference stocks of the company.

The report of the directors to be presented at the
sixty-fourth half-yearly general meeting of the
Great Western Railway Company, on Friday,
is published. We give the chief portions :
The falling off in the passenger receipts of the last half-
year way be attributed to the commercial depression
which has prevailed during that period. It may be ro-
marked that while the receipts from merchandise traffic
are diminished by 2,413/. there has been an increase of
9,864/. in the receipts from coal traffic. By the
exercise of strict economy in every department,
the directors have been able during the same period
to effect a reduction of 6,875/. in the working expensed.
After providing for all fixed end preferential charges the
balance would be sufficient to admit of the payment of
dividends on the ordinary stocks at the following rates per
cent.:—On Great Western consolidated stock at the rate
of 11. Is. per cent. per annum ; West Midland (Oxford)
stock, ss. ; West Midland (Newport) stock, 10s. ; South
Wales consolidated stock, 31. ss. ; Vale of Neath consoli-
dated stock, 5/. ; leaving to be carried forward to the net
half-year a balance of 20,430/. 19e. Cd. The continued add
unavoidable appropriation of revenue, however, in dis-
charge of temporary loans and other pressing liabilities,
leaves the directors no alternative but to recommend that,
in lieu of • dividend payable in cash, the proprietors shootd
accept an allotment of the company's stocks to an equi-
valent amount. This course, which has the unanimous
approval of the shareholders' committee, was pursued,
with the sanction of the proprietors, in dealing with the
same question in the last half-year ; and having
regard thereto, and to the general approval of the
proprietors, which has been subsequently expressed,
the directors do not hesitate to recommend the
repetition of • similar course on the present
oocaidod.
The directors propose to avail themselves of a power whiah
they obtained in the last session of parliament to imene.6
per cent. stock instead of shares in lieu of dividends. The
convenience of this course will be obvious. Stock warrants
can be issued for the sum of 1/. or any multiple of a pound,
and it will be only in respect of sums of leas than 11. that
any payment in cash will be required to be made by a
shareholder. The directors propose also to give to eadh
shareholder the option of receiving the amount which may
be allotted him in debenture stook, bearing interest It the
rate of 4 per cent. per annum. They believe that mady
shareholders will be glad to avail themselves of this
option, and that the exercise of it would be beneficial to
the company. The expenditure on capital account during
the half-year has amounted to 154,9031. 12s. 11d., of which
it will be seen that 90,5421. 17s. 7d. has been expended in
the supply- of additional rolling stock. The proprietors
will not fail to observe, as a satisfactory item in the
capital accounts, that the temporary loans, which on the
31st July, 1866, amounted to about 1,300,000/., and on
the 31st J•nuary, 1867, to 859,323/., have been reduced
at the close of tke last half-yearly account to 367,530/.
The position of the company, in reference parti-
cularly to this question, has been so fully treated in the
report of the shareholders' committee, that the directors
deem it unnecessary to de more than refer to that document
sa the expression of an independent opinion on the pre-
seat financial position of the company. Advantage is
taken of the present opportunity to circulate among the
proprietors this report, which will be read with metafic-
tion by all who are interested in the future prosperity of
the company. Assuming that it will be adopted by the
proprietors, the directors will be prepared to submit •
resolution to give effect to the recommendation contained
in it as to the appointment of an audit committee. In
compliance with the expressed wish of the proprietors that
the number of directors should be reduced, and in accord-
ance with the recommendation of the committee, a clause
was insertedin the Various Powers Act of last session by
which peoviddoa is made for • reduction in the number to '
16. This reduction has been effected, and a list of the
directors who now constitute the board is appended in the
usual manner to this report. The board cannot allow the
connection with their late colleagues to be severed without
placing on record their sense of the valuable services ren-
dered by them to the company, and their regret at the ter-
mination of the official intercourse which has so long
subsisted between them. In redemption of the pledge
given by the chairman at the meeting which was held on
the 29th of March last, in reference to the outlay on
capital account, the director intend to submit to the pro-
pdetors at each half.yearly meeting, an estimate of the
outlay on new works proposed to be undertaken in the
course of the succeeding six months, it being understood
that no expenditure in respect of works which have not
already been approved of is in future to be incurred with-
out the previous emotion of the meeting. The proprietors
will learn with satisfaction that no such expenditure is
contemplated during the next six months.