The Northern Daily Times.
Liverpool, Merseyside, England, 1856-08-16 00:00:00

THE

tained, and he (Mr. Benson), had no hesitation in sayinz
that it was now in a better condition than in the last half
ye ,r. (Hear, hear) Keeping on the same side of the
account, he was sorry to say there had been an increase
in the rate of interest they had to pay, but it had arisen
from the fact thatithey had to renew in January, and
before the peace was concluded, a large amount of
debentures e.hich had been running at a low rate of
interest. The average rate was £4 6s 3d per cent, but
he could assure them, that on any future renewals, they
should be able to reduce that rate, so that he hoped
they had now got to the maximum on that point. There
was one other subject which had caused considerable
discussion out of doors, and which had been frequently
discussed amongst themselves—he referred -to the
renewal of road account. They were aware that many
years ago, it was decided, with their concurrence, that
the road should be strengthened—th it they should put
down stronger rails, and in various other ways improve
the road. It was also decided, that improvement should
be charged to capital, and for that purpose they opened
a suspension account, so that until the whole line was
relaid, that suspense account should be kept open.
When that was concluded, whatever would he charge-
able to improvement would be passed to capital
account. Every half year now they credited that
account with what was added to the maintenance and
renewal of the road, and the account was so treated, that
in the first half-year, they only charged one-third of the
annual expense, and in the second half-year two-thirds,
because of the receipts of the second half-year being so
much larger than those of the first. That was the mode
in which they treated the account, and he had not the
least hesitation in saying that it was treated so with the
shareholders' cognisance and knowledge, and under
their directions. The shareholders' committee, in the
report which they presented at the last half yearly
meeting, gave their en'ire approval to it and he had no
hesitation in telling them that it was the right principle
to charge to capital the cost of strengthening the road.
It was what the shareholders ordered to be done, and the
account was both faithfully and properly kopt. Turning
to the other side of the account, he had to congratulate
them, for the first time, in being able to point to an
increase in their passenger receipts. They had long to
complain of competition, and their passenger receipts
had suffered, but there now appeared a prospect of
revival in that respect. It was an the goods, however,
in which there had been the largest increase to traffic,
and it was to goods he was persuaded they should look
mainly for an increase in their revenue. Their
attention was closely directed to the goods manage-
ment, with the view of getting more remunerative
rates for their traffic, and he could assure them, that
gradually, though slowly, there was an improvement in
that direction. (Hear, hear.) They had, since their
last meeting, appointed a goods committee, in pursuance
of the recommendation of the committee of investiga-
tion, from whose labours he, for one, expected great
results, but still it was a question of great magnitude,
and they must allow them time to develope an increase
in the various branches of their traffic, He thought it
was a most advisable step, on their nart, to appoint this
goods committee, and it was a good omen that they
commenced this half year, with an income of something
like £22,000, as compared with the corresponding period
of 1855. It was, also, an encouraging statement in their
accounts that they enabled them to give a quarter per
cent. more, and he thought it might be considered, from
it, that they had passed through the crisis of their
affairs They had great competition to contend with,
south, west, and north, and they had yet been able, not
only to maintain, but to add to their receipts, without
adding in proportion to their expenses—(hear, hear)—
and he had no hesitation in saying, that they might now
look forward to this great undertaking prospering with
the growing prosperity of the company. (Applause.)
Mr. Benson concluded by moving the adoption of the
report.
Mr. Hadfield, M.P , complained that no reference
whatsver was made in the report to the suggestions
which had emanated from the shareholders' committee
as to the general policy of the company—the rate of
expenditure, and the best way of increasing the dividends
in proportion to the immense capital invested. He was
sorry, then, to say that the report of the directors did not
satisfy him, and that, as a member of the investigation
committee, and speaking for himself, he was dis.
appointed with it. He should like to ask what had
been done towards economising their extravagant expen-
diture I (Hear) If they referred to the committee's
report, it would he seen that they did not investigate the
details of expenditure, and for this reason, that they
were informed it was in better hands, namely, in those
of Mr. Moon's committee. They were satisfi d with that
explanation, and considered that a double investigation
on that head would be unnecessary. They only went
generally into those details, but he would ask why it
was that the committee had not been honoured by one
single observation in the report, or from the lips of the
chairman ? If anything had been done, let the hoard
have credit for it by all means, but he should like to
know what they had done towards carrying the com-
mittee's suggestions into effect. (Hear, hear.) The
reduction of the board was one of those suggestions,
and yet not a word said about it. The reduction
of the multifarious establishments which they had
was another, and one that was particularly dwelt on,
and yet not a remark was made on it. There was a
growing opinion, and one in which he firmly believed,
that one per cent. as a minimum might be saved in econo-
omising the conducting of their property; but if they
were to have a stereotyped management, their dividends
would be as they now were. (Hear, hear.) Looking at
the report, he was afraid they were working for the
public and nat for the shareholders—(hear, hear) —and
though the public might, for the moment, gain by it,
they yet would be ultimately the sufferers. Nearly every
other company was increasing its dividends. The
Lancashire and Yorkshire, and the East Lancashire, had
materially increased theirs, and yet they (the London
and North Western Company), could not do it. The
cause of that lay with their own managemint, and if
something were not done by the next half yearly meet-
ing, he would propose the reappointment of the com-
mittee of investigation. (Hear, hear.)
Mr. Mitchell followed on the same side, and observed
that he considered five per cent on such a capital as theirs
as being merely at zero in point of profit. He condemned
the practice of carrying traffic at a low rate, and still
more at unremunerative ones, and contended that every
branch of their trade, no matter how small, should bear
its own profit.
Mr. Deane regretted that the re-laying of the rails
should be carried to capital in the manner described by
the chairman. He considered that there should be a
searching enquiry into the sums expended on that account
—that perfectly independent engineers should be appointed
to examine it—that the cost of re-laying and the sum
expended on the former rails be ascertained, and that the
difference between those two sums should be written off
to capital account. They would then start afresh, and
thay would continue so, if the same course were pursued
with regard to the work done on that account every half
year. He had also to complain of the parliamentary and
legal expenses, and should like to know what was gained
by such an extravagant outlay ?
Mr. Puncher complained on the same ground, and asked
how it was that every half year the exact sum of £lO,OOO
should be set off for legal expenses ? He should like to
know whether, in the figure set down for compensation, the
defalcations at Liverpool were included? In conclusion,
he observed that the fact of their working expenses being
now less than what they were, showed that there was still
room for reduction. (Hear, hear.)
Mr. Dickenson thought that they had now arrived at
the period, all their lines being nearly completed, when
they should reduce the number of their directors. As for
the general arrangements of the line, he travelled over it
much, he considered they were admirable. He did not
coincide in the opinion expressed he believed by the pre-
vious speaker, that the servants of the company were at
all overpaid in any instance whatever. (Hear, hear.)
Mr. Puncher: I did not say they were overpaid. I
merely complained of their numbers and the management.

Mr. Dickenson then referred to the diminution of their
dividends, and contended that it had been the obvious
result of the number of lines they had been led to con-
struct. (Hear, hear.)
A Shareholder drew attention to the large item
£260,000, for the delivery and colleclion of goods, and
urged that the system should be discontinued. They
were told by Captain Huish that it paid its own cost, but
he should like to know how that conclusion had been
arrived at?

The Chairman replied that they could not drop the system
of collection, which would be a complete reversal of their
principle of action, unless other railway companies took
the like course. In regard to the number of directors, they
were aware that the number was fixed by Act of Parlia.
ment, and that they were bound to fill up vacancies. They
could not alter the Act of Parliament, and though they
might at a future time introduce a provision for that pur.
pose into another bill, whenever they would have one
beforo parliament, yet he did not think that they
would authorise the directors to propose a special
act to accomplish that end. (Hear, hear.) With regard
to law expenses, he was sure the directors would only be
too glad if they could avoid them ; but when he told them
that the cost of contest with the " Little Northern " last
year amounted to the opposing parties £50,00Q, they
would see the difficulties which directors had to contend
against. They should protect their property, or leave it
a prey to all parties who might choose to attack it.
(Hear, hear.) As to the amount of compensation it could
not be considered large, when they recollected that it was
compensation on the carriage of one million pounds worth
of goods.

Mr. Puncher : Does it include the defalcations at Liver-
pool ?

The Chairman : There are no defalcations—none.
(Hear, hear.) The chairman then continued to say, that
as to the estimate for the permanent way, any shareholder
could have it by calling at the office, and when they had
read over the reports of the most eminent engineers in the
kingdom on the subject, they would be satisfied that the
directors had not neglected the question. Hp could assure
them that it would bear the fullest investigation. (Hear,
i
hear.) Allusion had been made to the great increasen
their receipts without a corresponding increase of profit.
It was true that such a discrepancy existed, but it arose
from the fact that the class of goods they had to carry
were of a low description. But if they did not take
these goods, they would have no business. There was
great competition, and they shouldZtake low traffic or