The Sun.
London, England, 1865-10-25 00:00:00

Railway and other Companies.

PERNAiIBITCO.,
The half-yearly general meeting of this company
was held yesterday at the London Tavern, Mr. R.
Benson in the chair.
Mr. W. H. Bellamy, the secretary, having read
the minutes of the last meeting, which were con-
firmed, 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 glad to see the traffic going on
increasing, notwithstanding the heavy floods had
caused delay to the traffic and damage to the works.
There was every probability they would have a large
surplus revenue at the end of the year to go towards
the Government guarantee. The working of the line
was being carried on with economy and efficiency,
and so far as the receipts, prospects, and manage-
ment were concerned they presented a very favour-
able position of affairs. The manager had informed
them that if the rolling stock were increased to a
sufficient extent he had no doubt that he could in-
crease the traffic so as to cover the entire amount of
the guarantee. But that at present did not concern
them, as they had done the best they could to de-
velope the traffic with the means at their disposal.
The success of the railway concerned the entire pro-
vince of Pernambuco; all the directors could do was
to point out the advantages of having more rolling
stock and the extension completed into Recife, and
thus put the facts before the authorities, whose in-
terest it was that the net receipts of the railway
should exceed the guarantee. It was evident that
those improvements concerned them more than the
company. The directors had refrained as hing as
possible from issuing the debentures, having been in
daily hopes of obtaining the final extension of the
guarantee, but finding that it was further post-
poned the directors felt bound to issue the deben-
tures at a small discount. They now proposed not
only to pay the arrears of dividend, but also the
current dividend. The arrears would be payable
at the end of the present month, and the dividend
for the past half-year at
.the end of November,
provided the shareholders approved that arrange-
ment. (Hear, hear.) When their late lamented
colleague Mr. De Castro died, the directors stated
that " the number of the Board being found ade-
quate to all requirements they did not intend to fill
up the vacancy" so occasioned, in which the share-
holders concurred. But the company's manager,
Mr. E. H: Bramah, having resigned his post, the
directors, with the view of retaining his valuable
services to the company, recommended that he be
elected a member of the Board, with the under-
standing that when the next vacancy occurred it was
not to be filled up. This arrangement would not
increase expenses, and they would be able to avail
themselves of Mr. Bramah's colonial knowledge and
experience. (Hear.) He had to say a few words
on that most important question, the extension of
the guarantee. He was sure that the recent charge
of policy of the Imperial Government would take
them by surprise, as it had taken him. He had re-
ceived the intimation of a wish to purchase the line
with extreme regret, as it appeared almost like play-
ing fast and loose with the company, but he was
bound to say that it wore a different complexion
when it was considered that the Government had
full power to purchase the undertaking without the
sanction of the Chambers. It looked like a more
certain mode of granting the company an equivalent
for the guarantee than waiting the pleasure of the
Senate ; and if the Government made a fair and
reasonable offer they might prefer the immediate
purchase of their property to waiting for the con-
firmation of the additional guarantee. On the eve of
probable negotiations it was right they should know
the position of their case. The Government had
from time to time put obligations on the company
that were not in the concession, and that was borne
out by testimony from an ex-official source that the
company had executed thoroughly the work it had
to accomplish, and did more than it was bound to
do. They had an equitable claim on the Govern-
ment. It had been proved that a first-class railway
could not be made in Brazil for the sum originally
stipulated ; the:diseases prevalent in that country
rendered the progress of the works slow and uncer-
tain, and there had been no previous experience of
the difficulties they had met with. This must have
been manifest to the Brazilian Government, who had
subsequently allowed two other railway companies
50 per cent. more guaranteed capital than they had
allowed the Pernambuco Company. It was not fair
to take advantage of their inexperience, as they had
more than fulfilled their contract with the Govern-
ment. They only asked the Government to deal
fairly with the company, as they had dealt with the
other railway companies ; and it was not too much
to say that the Government were legally and morally
bound to deal fairly with them. The Government
had instituted a most elaborate investigation into
the affairs of the company both in Brazil and Lon-
don, and the result was that they were to give the
company a guarantee on a further sum of £485,660
expended on the railway. This had been agreed to
between the company and the Government. Every-
thing had been sanctioned by the representative of
the Government, and it was impossible the latter
could repudiate that arrangement. He hoped that
the company's claims would be dealt with in a more
prompt and rapid way than they had been hitherto,
and concluded by moving the adoption of the report.
Mr. W. H. DICKSON seconded the motion, and it
was carried unanimously.
The CHAIRMAN then proposed a special resolution
to the effect that while it was the fixed determina-
tion of the shareholders to adhere to the arrange-
ment for the extension of the guarantee on £485,660
over the present share capital of £1,200,000, they
were willing to meet the proposal of the Government
provided that a fair equivalent be given them, and
that it be fully and promptly carried out, subject to
the approval of an extraordinary general meeting of
the proprietors convened for the purpose.

Mr. SUGARS seconded the motion.
Mr. MAUDE thought the traffic on the line should
be developed by means of additional rolling stock,
as proposed by the manager, before they parted
with their property, otherwise they would not get
the value of it.
Mr. J. JONES said the position of affairs looked
like a breach of faith. He thought no other arrange-
ment should be entered into until the existing one
was carried out in its integrity. He for one was
perfectly content to take the 3 per cent. until the
Government had completely damaged itself. It was
very clever now to intimate an arrangement of
which they knew nothing ; he would much rather
wait till next March and take his chance with the
Senate by letting the matter go through both houses
of the Brazilian Legislature, when the Government
would be in a position to perform its part towards
the company.
Mr. GOEZ believed the Government had to con-
tend with considerable opposition, and he thought,
therefore, the shareholders should not turn a deaf
ear to any proposal the Government might make

with a view to enable them to carry out their agree-
ment with the company. The shareholders should
be prepared to accept a fair offer for their property.
It might happen that the Government now thought
they could work the railway with greater economy
than the company could, and it was probable the
shareholders would prefer a saleable security in lieu
of the shares or stock they now held in the railway
company.
Mr. MAUDE thought it better not to pass any re-
solution on the subject. They ought not to accept
less than 6 per cent, on their outlay, and the direc-
tors were competent to deal with any offer that
might be made.
A SHAREHOLDER said he was sick of waiting years
for a settlement with the Government. (Several
voices so am I," "So am I.") They might, per-
haps, wait till March next, to see what would be
done by the Senate. . . _

Another SHAREHOLDER wished to know 'whether
the directors had any suspicion that the Goverment
were about making a proposal to them.
The CHAIRMAN said he had a suspicion that some-
thing was intended, but could not tell what it was.
They had been unofficially informed by a gentleman
connected with the Government that they were
prepared to enter into terms with them for the pur-
chase of the line, but he (the chairman) had no idea
of the terms.
After some discussion as to the propriety of pass-