The Sun.
London, England, 1853-07-26 00:00:00

RAILWAY INTELLIGENCE.

LONDON, BRIGHTON, AND SOUTH COAST.
The half-yearly meeting of this company was held
yesterday at the Bridge-house Hotel, London-bridge,
for the general purposes of the undertaking, and also to
determine upon the consolidation into a 5 per cent. stock
of the 5 per cent. 501. shares of the company, lettered
F, to be thenceforth denominated "Five per Cent. Stock
No. 3 ;" Mr. S. Laing, M.P., in the chair.
The report, an abstract of which appeared in .The Sun
of Monday, the 18th inst., was taken as read.
The CHAIRMAN commenced by alluding to the arrange-
ments made by the board which enabled them to hold
the first railway meeting every half-year. There was
some inconvenience in this, but the Brighton being the
first railway company to hold its half-yearly meeting, of
course it had some effect on the tone adopted by other
railway companies, for it struck the key note, as it were,
to which the proceedings of the others were attuned.
The general result of the half-yearly meetings was, on
the whole, discouraging, as compared with that of the
corresponding period of the preceding year. The
general result of the traffic of 1852 showed a larger
amount than in 1851, although that was an exceptional
year ; but on going back to 1850 the result of
the receipts on all the railways showed a con-
siderable increase of traffic in 1852 over that of
1850. But there was also an increase in the expenses,
and no doubt the increase in the traffic of 1853 would be
attended with increased expenditure. The Brighton
report now submitted showed an increase in the
receipts, and also an increase in the expenditure. The
increase of traffic in the half-year amounted to 23,0001.
over the corresponding period of 1852. This was a very
large increase indeed for the first half of the present
year, as every one acquainted with the Brighton traffic
knew that the traffic in the first half of the year was al-
ways smaller than in the second half of the year ; while
the standing expenses of both half-years were nearly
equal. The increase in the working expenses during the
half-year amounted to about one-half the increased re-
ceipts. Among the items of increased expenditure in
respect of the increased traffic was 2,0001. for interest
on increased capital, leaving 9,0001. available for divi-
dend on the ordinary shares, being an increase of 4s.
per cent. for the half-year. He considered that the in-
crease of revenue had been very satisfactory in all de-
partments. The increase in the traffic was obtained
from the natural development of the traffic on all parts
of the line. The seeds they had sown, by accommodat-
ing the traffic of the various districts, the running of
express trains, and other arrangements, were now bear-
ing fruit on different parts of the line. The greatest in-
crease was on the Croydon line ; the value of land had
increased in the vicinity of the railway, and he hoped
that a large accession of traffic would also arise from
other parts of the line. The increase in the annual ex-
penses arose chiefly from two causes, the working expenses
in consequence of the increased traffic, and interest on the
increase ofcapital expended on works of a permanent nature
required to accommodate the traffic and to insure
public safety. The increase in the working expensesreif
re-
solved itself into an extra length of train mileage, and
they were to increase the traffic it must be by
increased accommodation to the public. givingt
ier
nwliythletfhteonree:
sporuiereceofof
materialsincreas eadndexwpaegnesee aorfoslaehfer;(llthoeeanrri.thsee
whole,
he
ehueitth;oaungdhtiftheveyeryoundghdtittioenbteo
t wellhe revenuesatisfind
increased
thea sed amountcapital available
expenditurefor
to dividendaccommodate
odd
ate interestth efor
increased capital expenditure to accommodate the in-
creased traffic, the result would be highly satisfactory to
the proprietors. The working expenses for the two half-
years were nearly equal in amount, but for the first half
thelfeeadtx:rh
eteeooq
uu
ni requirements
board mabnuednt
hadatistt
of the year the working expenses averaged about 48 per
cent. of the receipts, and in the second half-year about
35 per cent. of the receipts, owing to the latter
zobt;fe,
euitnhnogeil
greater in amount during the second half of the year
than in the first half of it. The average expense
year was 42 per cent. of the receipts, which wenasdi
capitalf un-
favourable. ura
forble .p e
rTnlimenye n hadpermanent
othoj e incure tobjects
to a large
meet
of the increased traffic. The attencentoinoptnii
bweaeen
evident directed
thatto the
while closingth e
traffico f t fle capital
pointed
di t wouldnt in t
hnot r
report
r possiblee
r e stun I tdentxhilsen; andha d
aittshrreiypvrehedasdeantpton that subject. The constant necessity for
outlay on permanent improvements was, of course, a great
obstacle to the closing of the capital account. His opi-
nion had not changed with regard to the closing of the
capital account ; but it was not a question whether it
was desirable, but whether it was possible under existing
circumstances. If they were paying a fair dividend to
the shareholders, and enabled to lay- by a surplus every
half-year to meet those increased charges on capital
account, they would be in a condition to close it • but

[PRicz SD.

the facts of the case were different, and there was a con-
stant pressure upon them to meet events that could not
be foreseen. With regard to providing for the public
safety, that had entailed a considerable expense and
additional outlay of capital. Every accident that oc-
curred on their line, or on other lines that may occur
on their own, involved expense with a view to adopt
remedies for the prevention of like accidents in future.
With an increased traffic increased precautions to avoid
accident were necessary ; for instance, their goods trains
were now much longer than they were a few years ago ;
they were too long for sidings, so that they had to shunt
one-half of the train at one side of the line, and the other
half at the other side of the line. This, of course, in-
creased the chances of danger from accident, and there-
fore it became necessary to lengthen the sidings suffici-
ently to accommodate the goods trains. This involved
considerable expense at some places, as they had to exca-
vate steep places to make room for the sidings, or to carry
them on embankments, The directors had duties to per-
form to the public as well as to the shareholders, and it
was fortunately the interest of the shareholders that the
directors should do their duty to the public. It would be
bad policy to multiply accidents, and thus get a bad
name with the public. The result would be that they
would have some competing line started to take away
the traffic, to say nothing of the loss the company would
sustain by compensation for the accidents, and the awk-
ward position in which the directors would be placed by
the verdicts of juries. The fourth line of rails which
they were making to Croydon was absolutely necessary
for the public safety, and to accommodate the traffic on
the line between half-past 4 and half-past 6 o'clock every
day. At that time of the day there was a constant suc-
cession of trains, and it would be impossible to continue
them on a single line, because they would have to im-
pede the quick trains and hasten the slow trains, by
which means they would endanger the public safety. In
consequence of the increase of traffic they had to increase
the station accommodation, stores for goods traffic had
to be built, waggon sheds erected, and, in fact, they had
to provide accommodation for more than three times the
amount of their former goods traffic, as it had increased
from -1,0001. to 3,0004- per week. He-than entered into
a-variety of details with regard to the necessity and ad-
vantages of increasing the accommodation for the traffic,
and placing the property in greater Security. From the
state of things in Parliament during the present session
he thought that the shareholders must trust to them-
selves to secure their property, as they were not likely to
receive much protection from Parliament. Consider-
ing the nature and extent of their traffic, it would be
necessary to enlarge their station accommodation at
London-bridge very considerably, so as to allow of sepa-
rate entrances for the Crystal Palace and short traffic,
and to separate it from the long traffic, as was done by
the South-Eastern Company with regard to the Green-
wich, North Kent, and Dover traffic. All those things
would involve expense. They would have to expend
150,000/. for the accommodation of the Crystal Palace
Company, upon which they were to be guaranteed 4 per
cent. out of the receipts. They would have to expend
200,0001. beyond that sum, making a total expenditure
of 7,670,0001., of which they were to be guaranteed 4
per cent, on 150,0001. He might state that 75,0001. of
this sum was purely applicable to Crystal Palace pur-
poses. All the rest would be expended on the fourth
line of rails and in the enlargement of the London-bridge
station. These were improvements which could not be
delayed for six months longer, had there been no Crystal
Palace. With regard to the additional sum of 200,0001.
required to be expended, 50,000/, was for the enlarge-
ment of the London-bridge station beyond the sum
above stated, 70,000/. recommended by their engineer and
superintendents for additional sidings and other works,
40,0001. for warehouses at Brighton, Bricklayers' Arms
station, and at Deptford, and 30,000/. for plant. On
looking at the items, they would perceive that one-half
the proposed expenditure on capital account was to in-
sure the public safety, and the other half to accommodate
the increase of traffic^ With regard to the reserve fund
and sinking fund' estarshed some years ago with a
view to enable the coin ny to close the capitalaccount,
it was found that they ere not adequate to effect that
objeet ; and unleis they iFre prepared to set aside out
of revenue 50,0001. a-year or that object they could not
close their capittl account. That sum would amount to
1 per cent. of their dividend, which, out of 4 per cent.,
would make a large 'deduction, and which they would
be salled upon to give up so long as the traffic continued
to increase at the present rate. If the property belonged
to one or two individuals, they would probably expend
what was required on capital account out of revenue, but
it was a very different matter when it behinged to 3,000
Sr 4,000 individuals, many of them obliged to part with
their property at the market value, arra as the latter de-
pended on the amount of dividend the loss would fall
heavily on those who were ol)11.to part with their
shares. To the few who can retaNthem for a nitmber
of years the difference would not be so serious.NThe
directors could not recommend a measure for the
adoption of the proprietor, which would take away one-
fourth of their dividend for several.years, with a view
to keep down the capital expenditure opt to close the
capital account. He might not appe),E,Fnnsistent in OA.
course now recommended, but he thought some 4 or 5
years ago, that 4i per cent. would be arrived at by another
course, partly by an increased traffic and partly by a de-
crewed expenditure, and that by means of the funds they
now proposed to abandon the capital account could be
closed. But the traffic had gone on expanding
considerably, involving many unforeseen expenses, and
the only course now left them was to charge the ex-
pensea properly to the capital or to the revenue as they
occurred. (Hear.) He then alluded to the necessity of
promoting the construction of branch lines in connec-
tion with their railway, to accommodate the various
districts and to keep competing schemes out of the field.
They were bound to assist the East Grinstead, the Bog-
nor and Chichester, and the Steyning lines, and also
one from Bognor to Petworth and Midhurst. By con-
structing these lines at from 6,0001. to 8,0001. per mile,
there was a probability of paying their expenses and
accommodating the districts. It was better they should
pay 3,0001. or 4,0001. a-year in the shape of rent, or
guarantees, on the capital of branch lines made at a
cheap rate, than to suffer competing lines to be made in
the district, which might cut up their traffic root and
branch. It was better to adopt a popular policy, to
keep a good name, and to give all the accommodation
they could to the public and the district served by their
railway. He concluded by moving that the report and
accounts be received and adopted.
Mr. SCHUSTER seconded the motion.

Mr. TITE wished to know from the chairman, as a
member of the House of Commons, whether be knew
what result Mr. Cardwell's committee had arrived at in
the report respecting railways and canals.
The CHAIRMAN said that is was generally understood
that Mr. Cardwell's committee had recommended that a
committee of the House of Commons should be appointed
to deal with railway matters in the same manner as that
adopted under Lord Dalhousie some years ago, and to
report from time to time on the policy of railway mea-
sures or schemes that might be submitted to Parliament.
They also recommended the introduction of facility
clauses, on the ground that the line of a railway com-
pany was open as a highway, subject to certain regula-
tions for forwarding traffic ; power of reference to the
Board of Trade, in all cases of dispute, was provided.
Amalgamations could not be santioned, but working
arrangements might be entered into for a certain num-
ber of years, and which would probably require the
sanction of acts of Parliament to carry them out. The
result was, as far as the present session was concerned,
to recommend the appointment of a preliminary com-
mittee of the House of Commons to examine and report
on railway bills which might be submitted to Parlia-
ment.

Mr. MAUDSLEY thought they ought to have waited to
see whether the traffic of the Crystal Palace would pay
before they went to the expense of laying down a line
of railway to it.
Mr. Alderman WILSON regretted that the board had de-
termined on abandoning the reserve fund and sinking fund
established with a view to close the capital account. He
could not see the advantage of an increase traffic if they
were to be called upon every two or three years to add
200,000/. or 300,000/. to the capital account. He
lhWest-end and Crystal Palace line would take a
e arge amount of the traffic to the Crystal Palace, and
that the Brighton Company would be able to accomo-
date their portion of it without difficulty or the neces-
sity of much expense.
Mr. TITE pointed out the necessity of doing every-
thing in their power to accommodate the various dis-
tricts through which their line passed, by means of the
construction of cheap branch railways.
Mr. HERAPATII wished to know how it was that the
amount of increased traffic on the line as compared
with the corresponding period of last year, had caused
an increase in the expenditure equal to 50 per cent, of
the increased receipts, instead of 25 per cent., as esti-
mated on a former occasion. He also wished to know
how it was that the increase in the traffic would require
an additional expenditure of 50,000/. a year, instead of
12,000/. a year, as estimated about two years ago. He
believed it was then estimated that in the course of 10
years the 12,000/. a year would pay off the 120,000/.
required to accommodate the increased traffic, and that
the capital account could be closed • but now it ap-
peared they required to expend 470,0001. beyond the
7,200,000/. at which it was proposed to close the capi-
tal account. It was true the 470,000/. included 150,000/.
for the Crystal Palace, but it seemed a large additional
amount.

After some further observations the report was re-
ceived and adopted, and resolutions were passed autho-
rising the directors to borrow 45,9301., and to take
5,0881. from the reserve fund to pay for renewals of the
permanent way during the half-year, and to expend the
balance in the renewal of the permanent way and other
renewals, and to add nothing more to that fund.
On the motion for discontinuing the reserve fund, and
expending the amount on renewals, an amendment was
proposed by Mr. STERRY for its continuance, and allow-
ing only the expenditure of 5,0881. out of it.
This amendment was negatived by the meeting, and
the motion of the directors was carried.
Resolutions were passed declaring a dividend at the
rate of 1/. 16s. per cent. for the half-year, and autho-
thorising the directors to convert the 5 per cent. 501.
shares into 5 per cent. stock No. 3.
The proceedings concluded with vote of thanks to
the chairman and directors.