The Express.
London, England, 1867-07-01 00:00:00

BRITANNIA.

Enanwo, MOONniiiirrArK. Mt. J. B. Howe d Mks
J. Col eney —The Champion Skaters of Famikand Mr. O. Buck-
atone • Manna. Ilildrlistsnd and vrtnonde ; Mr. and Mrs. M•llaflte.
—And the last nave Acts of MAl•BE711. Mr. Reynolds.

MOH WILT= AT LONDON BUDD!
DOI DAT —Morning. O. :41a......,Aften0m. lik. VW
toatoaaow—Mar•bw. Ith Ca......Aftnnooe, fit. Ms.

-- -----
LONDON, MONDAY, JULY 1.

THE railway question must continue to be a
leading topic of the day until by some means the
interests of the great body of shareholders are
placed upon a better and surer footing. In the
past week we have had the meeting of the Lon-
don and Brighton Company, which produced but
one practical result, though that in itself was im-
portant—tho substitution of an entirely new board
in place of the old directors. The acceptance of
the chairmanship by Mr. Luxe gives an assurance
that the policy which has brought the Company
into its present straits will be altogether reversed,
but the reconstruction of the Board is only a pre-
liminary of the work of extricating the under-
taking from the difficulties under which it labours.
The p.isition of the new Board of the Lon-
don and Brighton Railway resembles too
much that of an Italian Minister of Fi-
nance. A particular sum of money must im-
mediately be raised at a time when all the
regular expedients for borrowing have been
thoroughly exhausted. But while Italy can
fall back upon the expedient which has been
practised by nearly all the Roman Catholic
populations of the world—that of secularising the
church and monastic property—the Brighton
Company must depend upon their credit alone, and
that has been considerably weakened by the recent
revelations.

When a railway company falls into difficulties,
there are three courses which it may adopt :
. .

1. Thu issue of debentures.
2. The issue of preference stock.
3. The issue of ordinary stock.

remain after satisfying the present debenture and
preference holders in the company. The earnings
will be fairly and equitably divided. Another
point, also, may be mentioned. The relative price
of the existing 5 per cents. and of the ordinary
stock shows a considerable disproportion, ad-.
mitting that the calculations of the Committee
are correct. Looking at the matter solely in a
financial point of view, there is no doubt
that even with the present heavy depreciation it
would pay the Company better to issue ordinary
stock instead of a new 5 per cent. preference.
It is, nevertheless, only just to say that the new
board may be safely relied upon to devise the
best measures for getting the company out of its
present dead lock.

The first expedient is generally a merely
nominal resource. It is rarely found that a
company has nut made use of its parliamentary
borrowing powers either to the full extent
or at least so as to leave only a very
small margin. In some notorious cases we
know that those powers have been illegally ex
seeded. The decisions in the Court of Chancery have
also established the fact that debenture holders have
rather less security than ordinary creditors, and
that the parliamentary sanction upon which they
rely is really worth nothing. A possessor of a
debenture created under the joint permission of
the Houses of Lords and Commons is apparently
worse off than the purchaser of a Lloyd's bond
issued quite privately, and at the discretion of
the directors alone. Hence debentures which at
one time were regarded with considerable favour,
and often chosen as especially eligible for invest-
ments of trust money, have latterly been dis-
credited. Now and then an announcement ap-
pears in the newspapers that such and such a
company has been enabled to renew its obligations
on favourable terms ; but a few years ago it
would never have occurred to the managers of
our great railway companies to congratulate
themselves upon the renewal of their debentures
at the current market terms of the day. The
operation would have been considered a matter of
course.

The public rarely take the trouble to discrimi-
nate between one company and another, and
hence, if certain railways are out of favour, the
rest are, if not absolutely visited with the same
condemnation, at least strongly suspected. Hardly
a day passes but fresh rumours are spread, some-
times from interested motives, butmore frequently
from mere caprice. The financial position of each
great undertaking is in turn attacked, and know-
ing what they do the public are only too ready to
attach credence to reports which, under other cir-
cumstances, they could not possibly believe.
Every shareholder in railway property is in fact
under the apprehension that at any moment he
may suddenly find the undertaking with which he
is connected to be in an unsound, perhaps insol-
vent, position. One or two simple remedies will
readily be suggested. First of all is the closing
of capital accounts—that is absolutely neces-
sary. If this measure had boon adopted
a few years ago we should have been
spared most of our latest scandals. Next,
the abolition of preference and debenture issues ;
third, absolute publicity in railway accounts, so
that whatever floating debts the company may
owe, apart from ordinary trade liabilities, should
be distinctly set forth. Lastly, a State audit.
With the facts before them, the public are not
likely to have a repetition of their experiences
of the London, Chatham, and Dover, Brighton,
North British, and other lines. Contractors,
speculative solicitors, and land jobbers will
probably find their gains materially curtailed,
but as they have done so well for many years
back they have hardly any reasonable ground for
complaint.

OUR CONTEMPORARIES.
(THIS DAY.)

The next point is the issue of preference stock.
This plan of raising money has, however, been
pretty nearly exhausted. The expedient has at
length been suggested of • creation of pre-
preference shares, but in at least one case the pro-
position has been summarily rejected by Parlia-
ment. If it had been sanctioned it would have
given the last blow to railway credit. How could
any investor feel sure that the security he was
purchasing might not be hereafter overridden by
some new creation ? The idea was, in truth, the
more perfect development of that unfortunate
system to which we have before referred, of issuing
preference stocks at all. If a pre-preference
security should be sanctioned this year, what
guarantee have the holders that a pre-pre-preference
should not be granted the next? The precedent of
breach of faith once set, it would be only too
readily foUowed. If, therefore, a railway wishes
to clear itself from its difficulties by the issue of
preference shares, the latter must rank after all
those already created.
The issue of ordinary stock is the third alter-
native, and there is no question that it is by far
the most equitable plan. Of course it would at
first sight appear very distasteful to original holders
to know that the value of their property should be
thereby depreciated some 10 per cent ; but they
have to make their choice of two evils. Referring
to the London and Brighton, the Committee of
Investigation mention that if the 1,000,0001. ster-
ling at present urgentlyrequired be raised bya 5 per
cent. preference stock, the ordinary proprietors
may fairly calculate upon • 21 per cent. dividend
a year or two hence. Very likely ; but it is
utterly hopeless to suppose that a 5 per cent.
Brighton preference stock can be placed at par.
An 8 per cent. issue, as we have already observed,
might be arranged fur the second million that is
wanted, but that becomes a matter for after-con-
sideration. Tho great point at present is the
raising of the first million.' Should it be done by
the sale of ordinary stock, the existing proprietors
have at least the knowledge that, if other persons
are admitted to share in their actual rights, the
latter have no power of exclusively absorbing per-
haps the whole of whatever surplus profit may

THE EXPRESS, MONDAY EVENING, JULY 1, 1867.

which Lord Russell delivered has multiplied tenfold
the beneficent influence which the meeting will exert is the
great Republic. There is no better evidence of true great-
ness of mind than a frank confession of error; and in
Lord Resell's ease, instead of being an act of humiliation,
it will really exalt his character in the estimation of his
countrymen and of the world.

LATEST INTELLIGEIiCIL

(REUTER'S 'TELEGRAMS.)

FRANCE.

PARIS, JULY 1.

Yesterday the Emperor received the members of
the Monetary Conference, who thanked his Ma-
jesty for having placed Prince Napoleon at their
head.

In the afternoon, at 2.30 p.m., the Emperor re-
ceived the Lord Mayor and some of the Aldermen
of the City of London. The Lord Mayor read an
address, in which he referred to the late attempted
assassination, and also congratulated his Majesty
on the success of the Exhibition. In reply to the
address, which was written in English, the Emperor
thanked the Lord Mayor and the other members
of the deputation in the same language for the
cordial step they had taken, and the hearty senti-
ments they had expressed.

OUTWARD CALCUTTA, CHINA, AND
AUSTRALIAN MAILS.
MALTA, JUNE 30.
The Ceylon from Southampton, 20th instant,
arrived at 9 a.m. on the 28th, and left at 4 a.m. on
the 29th for Alexandria.
The Mooltan from Marseilles, 28th instant,
arrived to-day at 5 p.m., and leaves at 10 p.m. for
Alexandria.

AMERICA.
CROOKHAVEN, JULY 1, 5.30 A.M.

A steamer, supposed to be the City of Vuhing-
ton, is now passing the Browhead signal station.
If it be that ship she will probably arrive at
Queenstown at 10.30 a.m. to-day, and letters will
reach London on Tuesday at 6.45 a.m.

EXPRESS FROM PARIS.

ARRIVAL OF THE SULTAN.
mom 001 OWN 001111SPONDZIT.)
PARIS, SUNDAY EVT.NING.

The Sultan arrived at the Lyons Railway station
thisafternoon with as much punctuality as any Euro-
pean sovereign. I, in common with at least half a
million of Parisian residents, have set eyes upon
the " commander of the faithful." After all that
has been said about his supposed Oriental effemi-
nacy and inability to bear fatigue, he did not seem
at all tired after his long rattling journey from
Toulon. Ho is a well-looking man with light
brown hair and beard slightly grizzled, short and
thick set, with broad shoulders, and a very manly
look. It was much remarked, when he was seen
sitting side by side with the Emperor, that he
looked shorter than Napoleon 111. That is, how-
ever, an uncertain test of the real height, and may
not be confirmed when they are seen standing
together.
As far as regards the number of people that went
to see the public reception of the Sultan, it far
transcends that of either the Czar or the King of
Prussia. The fact of the day being Sunday no
doubt accounts to a great extent for the crowds ;
but iniependently of that there was intense
curiosity to see the greatest of oriental sovereigns,
whose name, title, power, and habits are all con-
founded in the public mind with fairy tales and
hazy traditions. I saw in the crowd an old woman
whose knowledge of history was so limited that
she probably had no distinct ideas of Russia,
Prussia, and Austria, but wbo said she wanted to
see the Sultan because she understood he had
" forty wives " and three hundred " others."

I have never seen such a crowd since the arrival
of Queen Victoria in 1855. Long before the arrival
of the cortege the people stood in serried ranks
twenty deep, all along the line from the Louvre,
by the Rue Rivoli, the Rue St. Antoine,
and the Rue de Lyons, to the Lyons Railway
station. The windows and balconies of the
houses were crowded with people in Sunday
attire. Very many shopkeepers made money
by letting places in their windows at a good price.
Rush bottomed stools, the fee simple of which was
not more than a few sous, let readily for a franc
a piece to stand upon in the carriage way of the
streets abutting on the Rue Rivoli. In the Rue
Rivoli it elf no traffic of the kind could be carried
on for the broad footway on either side was
jammed as tight as it could be with people for
whom there was barely standing room.
The Sultan wore a military uniform with epau-
lettes, scarcely distinguishable from theta a French
general. He was received at the railway station
with the same ceremonial as that described
when the other great sovereigns came a short time
ago. The Emperor shook hands with him as ho
got out of the railway carriage. There was the
same escort of lancers and Cent Gerdes, and, to
the disappointment of many, there were the same
court carriages and two, instead of the Versailles
gala carriages and six. These, I am told, are re-
served for the distribution of prizes to-morrow.
Prince Napoleon and Fuad Pacha rode with the
Sultan and the Emperor to the Tuileries. Nine
carriages followed with the suite.
The Patrie gives an amusing reason for the
chamber having, " contrary to all expectation,"
allowed the debate on the budget to begin onSatur-
day instead of on Tuesday next. It was, it says,
because it was known that on the first day M.
Latourdu Moulin would let off his " objurgation,''
and M. Gamier Pages his " theoretically laborious
observations " and that it was wished to sever this
trifling from serious business. I am persuaded that
M. Rouher does not at this moment consider M.
Latour du Moulin's speech, charging him on indis-
putable official evidence with having within the
last year made statements on foreign affairs which
were the reverse of the truth ; and with having by
his recent actions in full accordance with his little
more distant recorded speeches shown an indispo-
sition to carry out the Emperor's liberal programme
of Jan. 19. Such assertions falling from the mouth
of a man like Latour du Moulin, who was a
" director of the press," knows all the secrets of
the prison house, and is yet a devoted imperialist,
are far more embarrassing to a minister than if they
came from an out-and-out opposition deputy like
Picard or Pelletan.

The Viceroy of Egypt has been so much de-
lighted with the Exhibition that he has induced the
principal functionaries of hia country to make a journey
to Paris, and has also indicated 40 Arab chiefs who will
pay a visit to the Champ de Mars.
The Grand Duchess Marie of Russia has arrived
at Trouble, where she purposes passing three weeks.

The Tycoon of Japan is described by a corres-
pondent of a New York paper as a man of ordinarystature,
apparently 33 years of age, with good features, bright,
black eyes, and splendid teeth, which be frequently dis-
played in smiling. He was very richly dressed, and his
manners are easy and refined. He thoroughly under-
stands the European custom of drinking toasts, and drank
the health of the President of the United States with
gusto.

RUDOLF4TADT, JVNE 28.—Ilia Highness Prim:*
Frederick Gonthier, the reigning prince of Bahwarsburg-
Ftudolstadt, died this morning.
THe FONIKAL or ARUM Oft WARD.—The funeral
of Charles F. Browne (Arternus Ward) was solemnised at
Waterford, Maine. on the 6th ult. The Masonic fraternity
resisted at the burial.

~ys.~ .~

THE PAM EXHIBITION.

-zd.

MOM 1:-)1711 SPECIAL CORRESPONDENT.)
PARIS, SATURDAY EVENING.
Sixteen thousand seats have been arranged in the
nave of the Palais de l'lndustrie. The Emperor has
reserved three thousand seats for his guests, the
Senate, the Corps Ldgislatif, the Council of State,
and the judges. The foreign commiasions have about
three thousand tickets. The first six thousand
ticket holders are entitled to numbered places. The
Imperial Commissioners have reserved two thou-
sand places for their officers and for the juries. In
these ways fourteen thousand are taken. Another
thousand seats are given up to the exhibitors who
have won gold medals. Only one thousand
seats remain, and these are for sale, at
fifty-five francs each. The price was sixty
francs a few days since ; but the public is
informed that in consequence of the great
demand the price has been reduced. To-day
Paris arrayed herself in her brightest colours,
and people talked only of the gorgeous festivities
that are to greet the Sultan and the Emperor of
Austria, at Versailles, at Fontainebleau, and at the
Tuileries. In the Exhibition, however, the univer-
sal talk is of medals and decorations. M. Le Play's
reward is already announced. He is created
senator. It is reported that on Monday, the fete
day of Peace, the Emperor will order the Exhibi-
tion to be thrown open free to the public. Every
class must have a share in the rejoicings and in the
money spending. Twelve thousand pounds are to
be spent on fireworks by the Arc de Triomphe,
during the visit of the Emperor and Empress of
Austria. The Gra ads-Eau.c play again to-morrow
at Versailles.

During the last few days several very curiousappe-
ratus have been set in motion in the machinery
gallery-, near Derosne and Cail's exhibit. To
judge by the sensation they have created, their
inventors should have won considerable honours.
But they are so small that they have most likely
escaped the showers of decorations and medals that
overwhelm French and foreign industry. The first
is a little electric engine that works a sewing ma-
chine, and only requires a small bundle of wood to
keep it going. It works with as much speed and
force as if it were moved with the foot on
the pedal. The second is a hot-air machine,
worked by an alcohol lamp. It works by means of
a difference of temperature obtained by the help of
a little stream of water. The pail serves for re-
servoir— indeed a basin would contain all the
water necessary. Not far from these apparatus,
near the exhibit of the ministry, is the electro-
magnet which has been so much talked about and
discussed at the Academy of Sciences.