Northern Times.
Liverpool, Merseyside, England, 1859-01-11 00:00:00

Add the difference of the ' excess over the increase,
Less 21,830

To the disposable balance, Dec. 1857, viz

421,830

£57,880
102,620

Gives probable balance to Dec. 31, 1858, £160,506,
being -nearly sufficient to pay a dividend at the
rate of 4 per cent. , per annum, (which would re-
quire £164,746). But, now for the important part
of the subject, viz., how the petiprietors should
deal with this balance, or whatever balance they
may have to dispose of. •
:
, • I would earnestly press upon their attention
now, when-the money market is so :favourable tor
financial operations, the necessity of considering,
above all things, the permanent• we fate of their
property.' Let me recall to their rethembranbe the
recommendatiori of their auditor at the last meet-
ing, a retommendation which I well know was no
sudden-and petulant expression; for I have heard
it from him from time to time for the last
year and a-half. Let me remind them how em-
phatically he stated:his conviction (and no man
has such good., oppOrtunities of judging of the
financial position of the Company), that the Com-
pany's ultimate prosperity demanded the surrender
of dividend for a period. I trust and believe not
so long a period as he then stated, for I think
altered circumstances will materially assist our
efforts. It is an obnoxious course to recommend
the suspension of dividend; people are apt to say-
that it is unfeeling and pressed by some wealthy
proprietors 'who can afford to wait, and have
no sympathy for 'the sufferings of others.
'This is tartainly not :ray case—but when
we review the prices of Great Western
stock during the past six months, and see that
they have..actually risen in spite of the saspension
of dividend, from £5O in June, to £561 in Decem-
ber, without any important fluctuations, we are
obliged to admit that this calamity, great as it
-undoubtedly is, has not produced the disastrous
consequences which might have
_been anticipated.
In fact, the Great Western stock appears to be
what is:termed " well held," and its kistory shows
that it is now in hands resolved and able to bide
the issue.
Now, let me point out the advantages to be
gained from loaning the impending balance-to the
Company; they were only briefly recited by Mr.
Atkinson, who dwelt chiefly upon the intricate
accounts waiting settlement with the South Wales
and Midland Companies, against which a reserve
should be kept to provide for possible contingen-
Tupon this point we must be content to
accept Mr. Atkinson's opinion, as for the want of
a .balance-sheet we proprietors have been kept
in entire ignorance of the nature and amount
of these claims ; how long we shall be satisfied
to _excuse the publication of this important
document, which is now generally fur-
nished by railway companies, it is beside
my present purpose to inquire. Secondly. The
statement for June, 1858, shows that there is still
.a loan of £22092' on preference stock, which
.seriously embarrasses the company's financial
operations, and in times of money scarcity gravely
adds -to' the interest charges. The rate' of interest
on this
,description of loan, then about half a
million, averaged in a recent half-year, I believe,
eight per cent. Thirdly :.In consequence of the
false position of the Great Western Company in
the money market, they have been obliged recently
to renew debentures at 4i per cent. while other
companies in better repute, but-with actually no
better security, have renewed :at 3i. Now, this
difference •to which we are :entitled would, if
extended-to our whole borrowed capital, effect as
mueh (saving as would give the original yiroprie-
tors.l rt-, percent. dividend.

The. course which I would therefore earnestly
press upon the consideration of Great Western
proprietors is, that they should again forego the
balance Which 'may be available for dividend.
This balance would probably nearly discharge the
most inconvenient part of our debt, wiz., that which
is raised upon preference stock ; it would be a re-
serve to meet Mr. Atkinson's views in respect of
the unsettled accouats—it would be an additional,
and what is practically more important, a visible
security for debenture holders; and it would,
doubtless, put the Company upon better terms with
the money market. And, looking to the present
condition of the money market, more favourable
for our interests than we are likely
,to see again
for ten years, it follows that now is the time for
making arrangements which will greatly, influence
cur prosperity for that period. Are these consi-
derations such as would compensate the Proprie-
tors for the sacrifice—temporary only—by which
they may be realised ?

_
There is another topic which must come before
the proprietors at the February meeting, which is
similarly associated with the future prosperity of
the company, and I venture to trespass a little
further upon your indulgence to submit to the
proprietors some observations upon the contem-
plated measure for closing the capital account.
Up to June, 1857, the Great Western railway
was still growing in mileage, and no comparison
of mileage rates would be of much value, but since
that date the whole of the works have been opened
for traffic with the following results.:
Average receipts per mile per week on the Great
Western railway, for the half-years ending
Dec. 31, '57. June 30, 'iB. Dec. 31, '5B.
£65 16s, £5B 12s. £66 19s.

I am ready to grant that the times have not
favoured such a development of traffic as we have
a right to expect upon the average of a series of
years ; but when we consider the small increase
above recorded, we can easily understand how the
dividends must be diminished if the capital cost of
mileage already existing is allowed materially to
increase by the further expenditure of capital.
On the other hand, if the capital remains'
stationary, the increased earnings, whether large
or small, must become an addition to the dividend
distributed amongst the unprotected stock.—l am,

sir, &c., A GREAT WESTERN PROPRIETOR
January 3, 1859.

0 This item needs apology. I have assumed the working
expenses with interest and other charges the same as last half
year, whereas it is evident that with an increase cf traffic
amounting to £lOO,OOO, there is a probability of increased work-
ing
.expenses, but it is also probable that there will be a further
diminution under the head of interest; it is also to be remem-
bered that the substitution of coal for coke on 715 miles of rail-
way (including the Shrewsbury and South Wales lines), must
have materially aided the efforts of the board to keep down the
expenses, so that it is probable that the ultimate result of the
calculation will not be seriously affected by the inaccuracy which
maT be anticipated in this item per Be,