The Sun.
London, England, 1865-04-12 00:00:00

RAILWAY INTELLIGENCE.

BAHIA AND SAN FRANCISCO.

The half-yearly meeting of this company was held
yesterday at the London Tavern; Mr. T. M. Wegue-
lin, 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 they bad arrived at rather a critical
period in their affairs, and he hoped and trusted
they would afford him the necessary support in
maintaining order during the discussion. In the
first place, they had some increase in the receipts,
and they bad received a communication from Mr.
Thompson, their chief resident engineer, dated the
10th of March, stating that the line and rolling
stock were in fair working order, and that he
had very little doubt of being able to further re-
duce the working expenses, and that the traffic re-
ceipts would increase; so that he hoped there would
soon be less difficulty in making the two ends meet.
Through the default of a native clerk, he was sorry
to say that they had lost between £5OO and £6OO,
and he had little confidence in recovering any por-
tion of it. This showed the necessity of greater
vigilance at the other side, as well as this side of the
Atlantic. A committee of consultation had been
appointed at the last meeting, and they had since
made a report on the affairs of the company. The
directors had noticed in their report those parts of
it on which the late Board had made some observa-
tions. The difference of opinion between the re-
port of the committee of consultation and of the
late Board were not so much after all ; so that
the chairman of the committee of consultation
might consent to move the adoption of the report
of the directors, and he (the chairman) might move
the adoption of the report of the committee. As he
understood it, there were but two points of any dif-
ference between the late Board and the committee.
By the payment to Mr. Watson, the contractor,
of a sum of money for opening the line for traffic a
considerable time before that required by the con-
cession, the committee stated that the late board
had thereby sacrificed the interests of the share-
holders. He (the chairman) did not agree in that
view, and was prepared to show that it was by that
means the late board had been enabled to construct
the line within the estimate. The directors had
thus five or six years to the good, but had they de-
layed the opening of the line as much as they could,
the capital would have fallen short of completing
the railway, because in the interval the directors
would have had to pay the shareholders so much
more money in interest during construction. The
directors believed the traffic would at least be suffi-
cient to pay working expenses. The late directors
did not make any statement as to the traffic receipts
that might be expected on the line, but he held
in his hand an abstract of estimated traffic upon
which the provincial Goiernment assumed that
the receipts on the railway would be £134,982 a
year, the working expenses 50 per cent., or £67,491,
and the net receipts £67,491, or 31 per cent. on a
capital of £1,800,000. That was the ground upon
which they went for a return on the outlay. -There
was one point upon which the Board of Directors
differed from the committee ; it was with reference
to the item of accrued interest. The directors con-
sulted Mr. Bullar on that point, and the committee
took the opinion of Mr. H. Lloyd. Mr. Bullar was
of opinion that it could only be placed to capital ac-
count, while Mr. Lloyd said it clearly belonged to re-
venue, being the earnings of capital. If they divided
this item of £11,600 among the shareholders the Bra-
zilian Government might object, and therefore it was
proposed that the Government and the directors should
agree as to a legal reference and let the matter be de-
cided in that way. He (the chairman) agreed that in
the view taken by Mr. Bullar it was strictly a legal
question, and he believed that was the only point of
difference between them. The item disputed was placed
to capital account at present. He felt that the late
directors had strictly fulfilled their duty, and he
much regretted the retirement of their late chairman,
Mr. Samuel, from the board, and also other direc-
tors. He (the chairman) felt it his duty to remain
at the board with a view to see the ship in smooth
water, but he was not aware at that time of the ex-
istence of an association of shareholders, or perhaps
he would not have remained at the board. The first
step he took in the reconstruction of the board was
to select a member from the committee of consulta-
tion, Mr. J. Morgan, who had formerly acted as
auditor to the company, and was known to the Bra-
zilian Government. Ile next took the list of share-
holders and selected Sir H. Rich, Mr. H. Lewis,
M.P., and Mr. S. Neave, and, having ascertained
the views of thoie gentlemen and their assent to ac-
cept office, the new board was constituted. The as-
sociated shareholders proposedthat they should have
the appointment of two other directors, and there-
fore it was proposed to increase the number from
five to seven, exclusive of the ex officio director. It
was intended to call a special meeting to authorise
the increase of the number of directors. In order to
preserve harmony of action it was intended that the
board should select two directors from the list fixed
upon the associated shareholders. As to the remu-
neration of £1,200 a year voted to the directors, it
was proposed to divide it among eight, instead of six
as formerly. He considered the whole matter was
therefore practically arranged, and that no further
difficulty could arise. They would that day conclude
a treaty of peace between all the parties concerned.
He believed the enterprise was a sound one at heart.
They had paid £5 Bs. 9d. per cent for the past year,
which was within lf per cent. of the full guarantee
of 7 per cent., and considering it was the first year
of working, that the engineer could reduce the ex-
penses and increasethe traffic, their position was not
so bad after all. He believed that in a year or two
they would be in receipt of the full guarantee of 7 per
cent. When they established an efficient body of
directors, and the line throughout was accepted,
questions might arise as to the loss on the working
and other matters being made good by the Brazilian
Government, and such questions would have to be
settled by a united board in an amicable manner.
Mr. NicnoLsox, chairman of the committee of
consultation, said he would have great pleasure in
seconding the adoption of the report of the directors
if they would agree to place the item of £11,600 for
accrued interest to a suspense account, instead of to
capital. He then explained that the articles of
association were so stringent,:and in some cases so
absurd that if the shareholders were not very careful
in passing resolutions they would be bound in an
extraordinary degree without reservation or appeal.
If the directors carried out the recommendations of
the committee the proprietors would be certain of
receiving the 7 per cent. guarantee. He differed from
the late directors in their policy of reducing the fares
before the roads were made to the stations, and the
consequencewas that there was a falling off of about
£270 •a week from that reduction—viz., £833 against
£564. lle held that the tariff ought to be raised
instead of being lowered. There was not a single
lateral road completed to any of their stations.
There were several roads in course of construction,
and he believed there was plenty of traffic in the
country if it could find its way to the railway. The
making of the lateral roads to the company's stations
had been grievously neglected. His only objectwas
to benefit the property and to see where difficulties
could be removed and his *object would be accom-
plished.

A long discussion then ensued, in which Mr.
Lawrence, Mr. Conybeare, and Mr. Vignoles took
Part, in the course of which the report of the direc-
tors was received and adopted, subject to the altera-
tion of the item (111,600) in the statement of ac-
counts on capital being carried to a suspense
account.

The report of the committee of consultation; on
the motion of the Chairman, seconded by. Mr.
Nicholson, was received and adopted.

A dividend of 10s. per share was declared, making
with the interim dividend of 11s. per share, 215., or
5} per cent. per annum for the past year, towards
the 7 perlcent. dividend provided for by the con-
vention made with the Brazilian Government.
The directors, Mr. Weguelin, M.P., Mr. J. Mor-
gan, Sir H. Rich, Mr. H. Lewis' M.P.,
and
Mr. S.
Neave, were unanimously elected, and also Mr.
Franklin, the retiring auditor.
The CHAinmx,x stated that with a view to carry
out the wishes of the shareholders to increase the