The Sun.
London, England, 1864-09-09 00:00:00

and nil on £159,801. The £7,348,143 of preference stock
in existence at the close of 1863 may be subdivided as fol-
lows:-£440,570 at 8 per cent, £1,356,570 at 6 per cent
£537,328 at 5 per cent, £608,720 at 41 per cent, £2,555,000
at 41 per cent, and £1,849,955 at 4 per cent. The £219,677
of debenture stock outstanding was composed of £55,670 at
41 per cent, and £164,007 at 4 per cent-the company, not-
withstanding rather strenuous efforts which it has made in
this direction,jappears not have succeeded at present in
converting much of its loan capital into debenture stock.
Of the £7,438,004 of loans:outstanding at the close of 1863,
£lOO,OOO bore interest at 41 per cent, £787,877 at 41 per
cent, £977,008 at Elt per cent, £5,516,430 at 4 per cent, 51,939
at 31 per cent, and £1,750 at 3} per cent. It should be stated
that, in addition to the £7,438,004 appertaining to the North
Eastern proper, the company had, as lessees of the Hull
and Selby and Great North of England, Clarence, and
Hartlepool Junction, loans outstanding Dec. 31, 1863, to
the further amount of £236,368, The credit of the com-
pany will be seen to have improved during the last two
years, as at the close of 1861 the loan capital was floating
as follows:-£52,108 at 5 per cent, £251,950 at 41 per
cent, £27,000 at 41 per cent, £1,063,884 at 41 per cent,
£1,325,748 at 41 per cent, £4,526,505 at 4 per cent,
£114,464 at 34 per cent, and £lO,OOO at 3 per cent. The
total of £7,373,859 thus represented refers, of course, to the
North-Eastern, Newcastle and Carlisle, and Stockton and
Darlington lines combined. The amount of debenture stock
outstanding at the close of 1861 was £109,669, all at 4 per
cent. The aggregate amount of capital raised at the close
of 1861 by the three now united companies was £27,831,265
and as the corresponding total at the close of 1863 was
£30,017,800 it follows that the addition made to capital in
1862 and 1863 was no less than £2,186,535. Of this addi-
tion it will be seen that £llO,OOB was debenture stock, and
£64,145 debenture loans, leaving a balance 0f£2,012,382 of
new ordinary and preference stock, of this amount £565,781
was ordinary and £1,446,601 preference stock. It is obvious
that, with a creation of £2,012,382 additional stock, and an
issue of debentures and debenture stock to the extent of only
£174,153, the position of the debenture holders-at pre-
sent it is hardly worth while to take the debenture stock-
holders into account-has materially improved during the
last two years. It is also worthy of note, that while it is a
recognised principle that one-third of the capital of a public
company may be fairly raised by loans, the North-Eastern
has only acted on this principle to the extent of 2478 per
cent, instead of 33'33 per cent. On the whole, the capital
account of the North-Eastern appears to be in a sound posi-
tion, and the fact that additional ordinary capital was placed
in 1862 and 1863 to the amount of £565,781 is a strong tes-
timony to the good repute and status which the undertak-
ing has acquired.
This result is attributable, of course, to the vast amount
of traffic which passes over the carefully developed system
of the company. Thus, in the course of 1863, the number
of passengers conveyed was 801,64.5 first-class, 2,830,137
second-class, and 7,312,591 third class, or 10,947,376 in all,
while there were besides 2,721 holders of periodical tickets.
The passenger trains also conveyed 3,579 carriages, 23,890
horses, and 33,417 dogs. There was also a considerable
movement of live stock over the system, the company having
conveyed last year 298,797 head of cattle, 948,519 sheep,
and 129,158 pigs. The quantity of coal and coke transported
was 9,073,725 tons, and of other minerals 2,473,459 tons,
making a total of 11,547,184 tons. The North Eastern, it
may be observed, has a far larger mineral traffic than the
London and North Western, that company having last
year carried 6,118,611 tons under this head. This result is
of course due to the fact that the North Eastern accom•
modates the great coal districts par excellence. The
quantity of general merchandise conveyed over the
North Eastern last year was 3,310,222 tons, against
3,156,511 tons in 1862. The movement of coal and minerals
in 1862 was, as we should also have noted, 11,323,433
tons, while the number of passengers conveyed inthat year
was 10,171,729. Returning to 1863, we may observe that
of the 10,947,376 passengers conveyed, 614,342 used "ex-
cursion" tickets, while of the 614,342 excursionists 30,526
were first class, 24,354 second class, and 559,462 third class.
The number of passenger trains run last year was 184,204,
to which must be added 183,229 good trains; the total dis-
tance traversed by the passenger trains was 4,193,263 miles,
and by the goods trains 8,628.756 miles, making the im-
mense aggregate of 12,822,019 miles, against 11,553,740
miles. The average passenger fares charged last year were
2.14c1 per mile first class, 1.49 d per mile second class, and
0.85 d per mile third class ; in the case of excursionists
these rates were reduced to an average of 0.84 d per mile
first class, o*43d per mile second class, and 0.30 d per
mile third class ; no special express fares appear to be
charged upon the system. The receipts from passen-
gers last year were £751,491,-viz, 150,865 first-class
£237,285 second-class, £346,25£ third-class, and £l7, 83
periodical tickets. The quick trains also acquired £97,690
from excess luggage, parcels, dogs, &c., while £10,690 was
derived from the conveyance of mails, making the total
receipts of the year under the head of coaching £889,581.
The earnings of slow trains amounted to £1,903,214, unim-
posing total which may be discomposed as follows :---Live
stock, £61,961-coal and coke, £705,853-other minerals,
£258,703-and general merchandise, £876,792. Adding the
earnings of slow trains to those of quick trains we arrive at
the total of £2,792,795, indicated above as the general re-
venue of the system for the year. It may be interesting
to note that while the receipts from coaching were last
year £889,581, in 1852, they amounted to £849,064-
whiie the slow train service last year earned £1,903,214-
against £1,763,147 in 1862. The passenger, &c., receipts of
the system increased therefore last year £10,517, while the
goods traffic expanded to the extent of £140,067. As we
have shown above, the working expenses for 1863 was
£1,310,195, and this great sum was made up as follows :-
Maintenance and renewal of way and works, £240,512-
locomotive power (including stationary engines), 430,590-
repairs and renewals of carriages and waggons, £218,182-
traffic charges (coaching and merchandise), £259,496-rates
and taxes, £53,754-Government duty, £22,924-compen-
sation for personal injury, &c., 4874-legal and Parlia•
mentary expenses, £8,253-and miscellaneous, £91,613,
The amount set down fot compensation is moderate consi-
dering the vast business done, while the Parliamentary ex-
penses also display a fair consideration for economy on the
part of the directors. The rolling stock of the company at
the close of 1863 comprised 648 locomotives, 1,080 carriages
used for the conveyance of passengers only, 423 other
vehicles attached to passenger trains, 45,870 waggons of
all kinds used for the conveyance of live stock, minerals, or
general merchandise, and 437 other carriages and waggons,
making the enormous aggregate of 48,455 distinct vehicles.
No railway company in England, and probably in the
world, can muster such an immense pare of rolling stock
as the North Eastern. Even the mighty London and North
Western is distanced in this respect, as it returned but
23,3U8 vehicles. The explanation of this state of affairs is
not difficult ; the North Eastern conveys more coal than
any other railway, and consequently requires more wag-
gons in which to transport the precious " black diamonds."
A great deal of the business, however, done by the North
Eastern appears to be transacted at very low rates-any-
how the 648 locomotives which were executing the behests
of the traffic managers at the close of 1863 did not quite
bring in the £lOO or £llO per week which engine earned on
the Great 'Western or London and North Western.

We have no long list of affiliated lines to place to the I
credit or discredit of the North-Eastern. Most of the con-
cerns which have linked their fortunes with the system
have done so for good and all, that is by absolute amalga-
mation. We may note, however, that the Great North of
England, Clarence, and Hartlepool J unction, which is on
lease only, had raised at the close of 1863 £72,218 ; and after
meeting a small amount of preferential charges, £41,875 of
ordinary capital, received 31 per cent. This small addition to
the Already indicated capital of the parent company carries
the total amount represented by the North Eastern Railway
to about £30,100,000 ; and, as various extensions are still in
progress, we may expect to see this aggregate increased to
£31,000,000 in a year or two. It is not too much to say that
the North Eastern is now a controlling power among the
railways of North Yorkshire, Northumberland, Durham,
and Cumberland. Its high credit enables the company to
triumph over every obstacle ; and as years roll on it will
doubtless acquire yet further importance and extent. One
great cause of the prosperity which the system, in spite of
many early errors, has attained is to be found in the amaz-
ing development of mineral wealth in the Cleveland dis-
trict. Some 20 years ago there was not a ton of iron made
in this locality, but in 1864 the production of pig iron will
be somewhere about 1,000,000 tons. Year by year the
number of blast furnaces is being extended, and Cleveland
industry marches on with the strides of a giant. The North
Eastern has of course derived immense advantage from this
state of affairs, and has, in fact, been redeemed by it from
the collapse to which early extravagance would probably
have condemned some of the lines now fused in the general
system. No ordinary addition has also been made to the
prestige of the system by the union with it, after some
years unavailing local opposition, of the Newcastle and
Carlisle and Stockton and Darlington lines. Far the sake
of comparison we have laboriously united the earnings of
all the lines in 1861, 1862, and 1863; but if we take the
North Eastern alone in 1861, the North Eastern and New-
castle and Carlisle in 1862, and the North Eastern, New-
castle and Carlisle, and Stockton and Darlington in 1863,
we arrive at the following results :--

Year. Revenue. Expe uses. Profits.
1861 .. £2,032,204 .. £933, 187 .. £1,099.01711
1862 .. 2,152,968 .. 984, 877 .. 1,168,091
1863 .. 2,792,795 .. 1,330, 198 .. 1,462,597
The addition of the Newcastle and Carlisle and the Stock-
ton and Darlington, aided by the general development of
the system, thus increased the receipts. in 1863, as compared
with 1861, by no leas a sum than £700,591, while the net
profits were augmented to the extent of £363,580, As the
York, Newcastle, and Berwick, or thoa York and North
Midland, the nucleus of this now great and powerful con-
cern attracted little attention ; but as the North Eastern,
with 1,100 mites of way in operation, wi th a revenue which
has approsched £3,000,000 per annum, and with a capital
of £30,000,000, the company has, by the force of organisa-
tion and union, worked itself into a form test place as a rail-
way power. The company seems to hal to a great destiny
before it. It accommodates an essentially industrial district,
which has by no means yet attained its f all development ;
and the process of amalgamation is not ye t at an end The
gentlemen who assemble in the board-i .00m at York to
direct the affairs of this vast enterprise wil I have, year by
year, more power vested in their hands ; a ad if they exer-
cise this power with moderation and disereti ion—,s7ud it may