The Sun.
London, England, 1865-02-27 00:00:00

GREAT NORTHERN.

The half-yearly general meeting of this company was
held on Saturday at the King's-cross station ; Col. Packe,
M.P., in the chair.
The report, an abstract of which has appeared in The
Sun, was taken as read.
The CHAIRMAN, in moving the adoption of the report,
said he was sure the shareholders would unite with him and
his colleagues in regretting the loss the company had sus-
tained by .the retirement from the board of Mr. Denison,
their late chairman. He then adverted to the able and
successful manner in which their late chairman had suc-
ceeeded in overcoming all difficulties, and in making their
railway one of the best in the kingdom for the shareholders
and the public. The report contained a full account of
their proceedings during the past half-year. The traffic
receipts showed an increase of £90,000 over those of the
corresponding half of 1863, and he might say that it was a
great disappointment to the directors thatthey were not able
to give the shareholders a better dividend than at the cor-
responding period; but at the same time he thought they
had acted wisely, and for the benefit of the company. The
chief item of increase in the expenditure was in the engi-
neer's account for the renewal of the permanent way. More
money had been laid out in the past half-year on renewals
of the permanent way, steel rails, and fishing than in the
corresponding period. They had also laid out money in
painting stations and other necessary repairs, making toge-
ther an increase under these heads of £11,222, as compared
with the outlay in the corresponding period. In the loco-
motive department they had run an extra mileage of 300,000
train miles. The price paid for fuel was higher, and the
item for wages was also increased. They had also been
delayed for want of additional working stock in conse-
quence of the strike in the iron trade. They had ordered
20 more engines last year to be delivered between June
and September, but not one of them had been delivered
until recently ; hence expenses had been incurred in hiring
engines from other companies, making together the increase
£27,604 in the locomotive charges. They had had unfortu-
nately under the head of compensation a large amount to
pay, being £B,lOO more than at the corresponding period.
The compensation for every trifling accident demanded by
the public amounted in the aggregate to a large sum. A truck
of cotton had taken fire by what he believed to have been
spontaneous combustion, and for which they had to pay
£919 as compensation, beside the destruction of their truck.
In consequence of the prevalence of dry weather, sparks
from the engines had set fire to some cornfields, and that
had to be paid for. The rates and taxes had been £1,314
more, and the Government duty £l,OOO more, making alto-
gether the increased charges £60,000. The revenue ac-
count had also to pay a dividend on the amount received on
the new stock recently issued, and which had been ex-
pended on new lines, and on works that were at present
unproductive, making in all £35,000. Those additional
charges entirely accounted for the absorption of the £90,000
of additional revenue, as compared with the corresponding
half of 1863, so that they were enabled only to pay the
same dividend ; but, notwithstanding that, he considered,
on the whole, that the railway was in a prosperous state.
With regard to the 17th paragraph in the report, the di-
rectors again found themselves compelled to protect the
property of the companylin opposing an application to Par-
liament by the Great Eastern and Lancashire and Yorkshire
Companies for a railway from Long Stanton to Askern.
They could see b' the map in the room that the proposed
line would run for the greater portion of its length at a
comparatively short distance from the Great Northern
lines, and was very nearly similar to the line of last year
projected by the Great Eastern Company and rejected by
Parliament. The directors had tried all they could to meet
the requirements of the Great Eastern, and in October last
had offered them running powers over the Great Northern
lines for the coal traffic, and if they could not settle the
terms between themselves to refer the matter to arbi-
tration. But all that had been refused, and so they
would be compelled this session at great expense to
protect the property of the company. The directors had
deemed it advisable to apply for power to make a line of
16 miles from their Wood-green station to Hertingford, as

he traffic at Hitchin and Welwyn was getting so large at

these stations that two more lines of railway were required ;
but, instead of widening the existing line and making addi-
tional tunnels, they proposed to make the intended line
through a new country having better gradients and less ex-
pensive work; but it was not promoted in opposition to any
other line. They had recently made arrangements to acquire
permanently the West Yorkshire Railway on fair and equit-
able terms to both parties. It had been worked since its
formation by the Great Northern Company ; it was, in fact,
a line that they should have constructed themselves, and it
was therefore necessary for the'r traffic. They had made
an agreement in conjunction with the Manchester, Shef-
field, and Lincolnshire Company to enable the Midland Rail-
way Company to become joint owners with them in the
Cheshire lines, and in the extension line into Liverpool,
When they found that the Midland had got to Manchester,
they knew they could not long keep them out of Liverpool,
so they thought it better to allow the Midland to participate
in the use and ownership of the new lines to Liverpool on
condition of contributing one-third of the expense. He had
explained all these matters as far as he could, and would be
happy to answer any questions.
Colonel DUNCOMBE, deputy-chairman, seconded the
motion for the adoption of the report.
Mr. FU.DES said he and others had felt considerable sur-
prise when it was announced that, with an increase of
£90,000 in the receipt; there was to be no increase in the
dividend ; but when he looked into the accounts he found

that sums had been charged against revenue which ought in
fairness to the A stock, to have been charged against capital,
which had been the cause of a fall of 13 per cent. in the
price of that stock. He contended that all additions to the
company's estate should be charged to capital, and that the
cost of repairs, maintenance, and renewals should be charged
to revenue, but the expense of increasing the capacity of
waggons from six to nine tons, the difference between the
cost of steel rails and iron rails, the increase in the weight of
materials used, and the fishing of rails should be charged
against capital, and so also should the interest of capital ex-
pended on unproductive works during construction. Had
those expenses been fairly charged, exclusive of the interest
on unproductive capital, ho estimated that £34,000 more
would have been available for dividend, and instead of
the dividend on the ordinary stock of the company being as
proposed at the rate of 81 per cent. per annum for the past
half-year it would have been at the rate of 91 per cent. per
annum at least, which would have made a great difference

to the holders of A stock. Instead of a reduction of lid
per train mile in the cost of working, as had been effected on
the London and North-Western Railway, there had been
an increase of per train stile on the Great Northern
Railway, making a difference of 2d. per train mile. As to
the additional engines required, he knew that there was a
vast deal more traffic waiting to come on their line than the
company could take. (Hear.)
Mr. V. KNIGHT was glad the directors had carried the
charges against revenue to the proper place in the ac-
counts. He differed entirely on that point from the last
speaker.

Parliamentary
in the report
that M rt .h
eNyi c um
might
fearedexpeet froma expensivethe st statement e
paign in opposing the Northern line. Theaayriihaamdeanit:eraydycaerax--
pended in the past half-year £22,900
xBinlo7
remaining
Parliamen-
tary charges, and there was also
the head of liabilities to be settled for legal expanses, under
mak-
ing in all £30,000. The claims for compensatipo
1 to £B,lOO in excess of the same item in the corresponding
period, which showed some laxity on the part of the
ser-
vants, or some deterioration of the permanent way and
rolling stock. He hoped that her Majesty's letter in re-
gard to accidents would receive due attention, and that
some efficient mode of communication between passengers
and guards would be adopted.
Mr. FREEBODY thought the shareholders should pay more
attention to their own affairs. It appeared to him that the
Great Northern were aggressors as well as their neighbours;
they had expended £870,000 on new lines in other districts
during the past year, and the shareholders should put a stop
to that kind of expenditure. They had better give up the
heavy coal trade to the Great Eastern than incur so much
expense year after year in defending it.
Mr. TAYLOR said there had been a sort of panic got up as
to the danger of railway travelling, but people seemed to
forget that at the small expense of 3d. a journey the Rail-
way Passengers' Company would assure them £l,OOO. It
shzsr e
han
Zs practically impossible to prevent accidents, and fortu-
tf'lliy.
u theyo were comparatively few.
Mr.
remarkedn tthh aa tt formerlya alla
d etheh a
rcomplaintsu
eohf
areholder
revenue, and that theomFany
to ea •
him that
to hold th
capital, but they had just been told by Mr. Fildes that
that if the d
the directors of this had charged too much against
dividend should have been larger. It
safe side. directors
ttlsanicl
had
d eevenly,rredabtuatllititwwaasseovindthenieil
wtoa
ITAIRIIAN zprnlised to the various observation and
The C
ing waggons and fishing
gehaLged against revenue for enlarg-
ing eteeling rails were too small to
explained that the
carry to capital, but thatthey were large sums it would

have been different. The steel rails used were under 300
tons, and did not exceed a cost of £3,000. They were used
for portions of the line near London, Peterborough, and
Doncaster. With. regard to the unproductive capital, the
company were restricted from charging the interest to capi-
tal ; it therefore must be paid out of revenue. The 20 lo-
comotive engines he had mentioned were now in course of
delivery, and the directors had ordered more rolling stock
to enable them to carry the very large amount of mineral
traffic which Mr. Fildes told them was waiting to come on
the line. The expense incurred last session in opposing
the Great Eastern scheme was about .£B,OOO.
The report was unanimously adopted, and the preference
and ordinary dividends recommended therein were declared
payable on the Ist of March.

The retiring directors, Colonel Packe, M.P., Lord Col-
ville, and Mr. Tennant were re-elected, and the election of
Mr. C. B. Denison to fill the vacancy caused by the retire-
ment of his father was unanimously confirmed.
Mr. Morgan, the retiring auditor, was re-elected, and the
allowance to the auditors was increased from £lOO to £2OO

a year each.
On the motion of Mr. V. KNIGHT, seconded by Mr.
iiIIGIEES, a resolution was unanimously carried expressing
deep regret at the retirement of Mr. E. Denison from the
direction of the company, and unqualified satisfaction at the
manner in which he had presided over its affairs, the result
being highly advantageous to the interests of the company.
The directors were authorised to borrow £75,000 for the
Spalding and March line, and £166,000 for the Cheshire
lines.

The proceedings concluded with a vote of thanks to the
chairman. -

LONDON, CHATHAM, AND DOVER.

Thehalf-yearly meeting of this company was held on Fri-
day a the Grosvenor Hotel, Pimlico ; Lord Sondes in the
chair.

The report, an abstract of which has appeared in The Sun,
was taken as read.

The CHAIRMAN, in moving its adoption, congratulated
the proprietors on the position and prospects of the com-
pany.

Lord His, the deputy-chairman, seconded the motion,
and adverted to the great and satisfactory increase that had
taken place in the traffic receipts, notwithstanding that the
company had not been able to carry out their goods traffic
at the Blackfriars-station, owing to the delay in the open-
ing of the Ludgate-hill station. It was gratifying to find
that the established companies appreciated their position,
as indicated by the arrangements they had made with the
Great N'orthern and London and South-Western. On the
completion of their metropolitan system the company
would improve their position, increase their traffic, and
greatly augment their receipts. (Applause.)
Mr. SHAW complained that he had applied by letter to
the directors for information, and had not even received a
reply. He wished to know the modus operandi of dealing
with and issuing " Lloyd's Bonds." The cost of construc-
tion of the London, Chatham, and Dover was double that of
either the Brighton or South-Eastern. He was not prepared
to move a vote of want of confidence in the directors, but
if any other gentleman would do so he would support it.
Mr. HOLROYD, director, in reply, said that as regarded
the conversion of the third preference into ordinary stock,
the fact was that, although the third preference holders
held a large sum entitled to dividend before the ordinary
shareholders, they had surrendered their rights and agreed
to take dividend in common with the ordinary shareholders.
As regarded Lloyd's Bonds the company had never raised
money on them, for it was not legal to do so, but when the
contractors of the company had in anticipation of capital
done work and advanced money they gave them these
Lloyd's Bonds, which were a legitimate acknowledgment
of indebtedness, and thus prevented the stopping of the
works. The bonds were formerly reduced to £115,000,
but now they very slightly exceeded £50,000. This, he.
thought, went to show the sound position of the company.
It was not fair in estimating the cost of the London, Chat-
ham, and Dover, to take the total capital and divide it by
the mileage and compare it with other lines in the district.
The hopes andpromises and prospects held out in previous
reports had been to a great extent realised. When they
had arrived at the point of paying all the preference
charges on the debentures and first preference stock, and
when they told the proprietors that the traffic of the pre-
sent year showed an increase as commensurate as the last
year showed over its predecessor, and would pay a dividend
on all the stocks of the company, including the second pre-
ference stock, and that the ordinary stock in 1866 would re-
ceive a dividend also, he thought they might fairly assert
that their expectations and promises had been realised.

(Applause.)
Mr. ll.AurninGE wished to know the exact earnings on
the Bickley and Dover line, and how much capital hadbeen
sacrificed by the sale of the steamboats intended for the
Boulogne traffic. He also wished some further information
relative to the Sevenoaks and Maidstone line, and its lia-
bilities. Mr. Forbes, the general manager, had stated that
within two years the ordinary stock of the company would
be paying a dividend, and he wished to know on what
ground he based that calculation, taking the entire capital
of the company at £16,000,000.
A PROPRIETOR was of opinion that the progress of the
line was not so great or so satisfactory as it ought to have
been, and that bad policy or management had driven gene-

ral passengers as well as regular customers from it.
Another PROPRIETOR thought it was highly creditable
to the company to have been the first to establish working
men's trains, and that it would be followed in other direc-
He suggested that in future there should be given

ions.

in the accounts a comparative statement of the gross re-
ceipts, expenditure, and mileage. He thought the company
had progressed well during the last six months, and that
the metropolitan extensions were getting on satisfactorily.
Mr. HARTRIDGE considered that some arrangement might
be made with the South-Eastern. He did not mean to
imply that the London, Chatham, and Dover were about to
engage in any large liability, such as renting or leasing the
South-Eastern. (Laughter.) But a certain movement had
recently been going on in the matter, and parhaps it might
bear its fruit in due season.

Mr. SURGEY looked upon tho London, Chatham, and
Dover Railway as a sort of metropolitan cosmopolitan line,
for when their metropolitan extensions were completed
they would communicate with the South Western, Great
Northern, Great Western, London and North Western, and
all the other London lines. He had not much to say about

-..
the leading question and the South Eastern, but should be
glad to see terms agreed to. The South Eastern must lose
from year to year, while the dividend of the London,
Chatham, and Dover must go on increasing. But there was
room enough for both. If the South Eastern and London,
Chatham,tand Dover were amalgamated they would be
able to save £lOO,OOO a year in the working expenses of
the two lines, and £50,000 in interest on debentures, or
£200,000 a year to the shareholders in their respective
companies. At present two express trains ran morning and
evening from Dover carrying only 30 passengers, and
there was no reason why, under one management, this
should be the case. Both the proprietors and the public

Would be benefited by the arrangement.
Mr. FORBES explained that the increase in the receipts in
1864 over 1863 was £98,585, and after deducting expenses
the increase of money applicable to dividend was from
£60,000 in 1863 to £llO,OOO in 1864. If the increase in the
ratio of profit in the next two years was as in the past two
years the whole of the obligations of the company would
be covered, and a portion of the extra profit wonld be avail-
able for dividend on the ordinary shares. The revision of
the fares had been a great advantage to the company.
Mr. HOLROYD, in reply to a question, stated that it was
not desirable to issue all the new stock at the present time ;
several gentlemen largely interested in the undertaking had
subscribed for it at a certain price, giving the company
power to redeem it in twelve months hence at the same
price—(hear, hear)—and the Board felt indebted to those
gentlemen.

Mr. M'GAIL, as a large shareholder, was perfectly satis-
fied with those explanations, and had great confidence in
the Board.

Sir M. PETO, in reply to Mr. Knight, stated that the
company might calculate with certainty on the junction
with the Finsbury line being completed and trains work-
ing over it by the Ist of June. The line would be doubled
throughout, and completed up to the Finsbury station.
(Cheers.)

The report was unanimously adopted, the retiring direc-
tors and auditor were re-elected, and a vote of thanks to the
chairman and directors concluded the proceedings.

HAMMERSMITH AND CITY.

The report of the directors stated that the capital ex-
pended amounted to £290,816, leaving a balance of £3,932.
The revenue account to the 31st of December showed that
£5,113 were the net receipts for the half-year, and £2,622
the charges, including £1,995 for interest on debentures,
leaving a balance of £2,491. Out of this sum the directors re-
commend that dividends be declared at the rate of 5 per cent.
per annum on the preference shares, and at the rate of £2 4s.
per cent. per annum on the original stock of the company.
The number of passengers carried during the half-year, ex-
clusive of season ticket holders, was 1,270,140. But, large as
this number appeared, the directors were of opinion that the
tmffichadbeen hitherto very imperfectly developed, the Grea
Western not having yet provided more than half-hour trains;
and the two temporary stations erected by the company to
accommodate the populous districts of Westbourne-park and
the Uxbridge-road had not been opened. The present receipts
were no criterion of what they must eventually become,
when the Metropolitan lino was extended to Finsbury, and
the South-Western to Richmond. They had made an
arrangement by which the Great Western were to lease the
line and other property of the company for 999 years, to
assume all the liabilities, and guarantee 5 per cent. per
annum on the ordinary stock for the year 1865, to be in-
creased per cent. annually until the ;,dividend reached 5i
per cont. per annum, at which rate the di7idend. would
thenceforward continue during the term of the lease.

WEST YORKSHIRE.
The report states that the expenditure on capital account
up to 31st of December last had been £450,479. The revenue
account showed a balance of £12,834, which admitted of a
dividend for the half-year at the rate of 7 per cent. per an-
num, leaving a surplus of £1,900 for reserve fund, which
would then amount to £12,496, but there were several un-
settled accounts to be provided for out of it. Since the last
meeting arrangements had been made with the Great
Northern Company for the amalgamation of the two com-