The Sun.
London, England, 1865-11-18 00:00:00

RAILWAY INTELLIGENCE:

MADRAS.

The half-yearly meeting of this company was held
yesterday at the London Tavern—Mr. Arbuthnot
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 had no doubt they all felt regret at
the absence, from illness, of General Sim, their
excellent chairman. It was not necessary for him
to take up much of their time on the present occa-
sion. The traffic had shown a satisfactory increase.
The receipts for the past half-year on the South-
West line amounted to £165,005, against £135,766
for the corresponding half of last year, showing an
increase of £29,239. The net receipts amounted
to £79,670, against £68,996 for the half of 1864,
showing an increase of £10,674. He was happy to
state the gross receipts in the subsequent three
months ending September amounted to £87,924,
against £71,125 for the corresponding period of last
year, showing an increase of £16,799. The South-
West line being nearly finished, they found that its
cost, including the Bangalore branch, was £5,000,000,
and the net receipts for the year were £160,000,
or rather more than 3 per cent. on the outlay.
Taking the result of the last quarter as an indica-
tion of what they might expect they would pro-
bably have a net sum next year of £200,000, which
would be equivalent to 4 per cent. on the outlay,
being only 1 per cent. under the guaranteed rate.
The cost of the South-West line was originally esti-
mated at £4,000,000, but the actual cost had been
£5,000,000, including rolling stock,
and the re-
newal of a portion of the line with iron sleepers in
Place of wooden sleepers ; there had also been a
rise in the price of labour and an increase in
the rolling stock, so that he thought, on the whole
the result very satisfactory. The receipts on
the -North-West line had- increased in a greater
ratio than on the South-West line. The re-
ceipts for the past half-year ending June 30
amounted to £8,282, against £3,693 for the same
half of last year. The receipts during the three
subsequent months amounted to £13,109, against
£5,131 for the corresponding period last year, show-
ing an increase of £7,978, but this to a certain ex-
tent had been obtained on a larger mileage. The
working expenses on the South West line were 50
per cent., but on the North West line they were
only 44 per cent. The North West line had been
opened up to Cuddapa, which was an important
place, and had a large traffic. They expected that
46 miles more would be opened in July next; in-
cluding this, the total length of line to be constructed
up to the junction with the Bombay line was 186
miles, and adding the branch to Bellary, 33 miles,
the total length to complete all their contracts with
the Government was 219 miles, which would be open
for traffic in the year 1869.

Mr. MAC KENZIE seconded the motion for the adop
tion of the report.

Mr. WALKER, the managing director, in reply to
questions, stated that the sleepers on the North
West line were all iron sleepers, and consequently
the cost of maintenance was less than on the South
West line. They proposed to renew half the South
West line with iron sleepers ; and, as the other half
of it passed through a district where teak and other
timber fit for sleepers could be easily obtained, they
would replace the sleepers with that material. The
whole of the South West line was originally laid
with wooden sleepers, but about one-fourth of it
had been replaced with iron sleepers, and the re-
newals were still going on, which tended to keep the
working expenses up to 50 per cent., but when the
renewals were completed the percentage of • cost
would be reduced. They proposed that iron sleepers
should be laid on the portion of the line from Ma-
dras to the Cauvery river, and from that point to
Beypore, on the Malabar coast, of wood. They did
not disturb the wooden sleepers where they were
sound, and the extra cost had been charged rateably
between capital and revenue. Another cause for
the expenses on the South West line being more than
on the North West line was that they were obliged
to use coal and coke fuel, brought from England, on
the former, while they used wood fuel on the latter,
which made a material difference. They had a
heavier traffic on the South-West line, and the
gradients were steeper. For instance, the ascent to
Bangalore was 3,00 feet above the sea level, and
he thought it was very creditable to their officials
under all the circumstances to work the line at so
low a rate as 51 per cent., but they expected to see
that rate reduced.

The report was unanimously adopted, and the
proceedings concluded with a vote of thanks to the
chairman and directors.

GRAND TRUNK OF CANADA.

The directors of this company have just issued
their report. It states that the gross receipts for the
half-year ending June 30 amount to £614,876, and
the ordinary working expenses to £379,026, leaving
a net balance of £217,850. From this is deducted
£51,535, the cost of renewals of permanent way,
£26,712 extra amounts for renewals in reduction of
suspense account, and £35,849 for loss on American
currency, leaving a balance of £103,753. From this
is deducted £9,476 nominal amount of postal re-
venue, plus the small balance over from the past
half-year, or £94,296, in all of
.which £19,925 has
been appropriated to the payment of interest on
loans, debentures, &c., £32,598. Atlantic and St
Lawrence lease (in full), £11,250. Detroit line
lease, £10,274. Montreal and Champlain Com-
pany, £13,788. Buffalo and Lake Huron Com-
pany, £7,335. Eepiipment Bond interest, and £397
for third preference not charged in June, 1864
total, £95,568 ; from which is deducted £1,352 for
second preference interest
.overcharged in June,.
1864, leaving a small balance of £BO. The amount
now left at the debit of the permanent way renewal
suspense account is only £52,945, and the directors
propose to write this off against net revenue in
the current half-year. The length of the Grand
i
runk and Atlantic and St. Lawrence lines,
renewed with better rails (principally fish-jointed)
since 1860 inclusive, has been as follows :-1860,
751 miles ; 1861, 66i ; 1862, 80a • 183, 126 ; 1864,
144 ; half-year ended June 30,' 1865, 25—total,
.5171 miles, out of a total mileage of 1,030 miles.'
In the same period 1,754,530
new sleepers have
been put in, or equal to the renewal of the sleepers
(ties) on 800 miles of railway. The cost of relaying
and renewing operations, of which the above form
part, has been over £500,000, the whoet of which,
except the amount now in suspense—viz., £52,945,
has been debited to and paid for out of the net re-
venue earned in working the line. The debit to
capital account in the half-year is £64,523 ; but
this includes £24,219 for discount on bonds, &c.,
leaving £40,304 as the real expenditure for addi-
tions to the company's property, of which £21,609
is on account of new engines, cars, and plant. The
company has never had a " working capital" to
cover accounts due to it, stock of stores on hand,
&C.—demands which increase with the increasing
business and extent of the undertaking. Again,
that increasing business and extent require of neces-
tY a gradually enlarging provision of sidings
,warehouses, and plant, to accommodate the busi-
ness of the country. The bondholders will see at
once that, in the absence of new capital, net revenue
only remains available to meet current requirements,
objectionable as the addition to capital of unpaid
interest on bonds must br..
off the e The company's officers
estimate that to pay
on capital and revenue accounts, existing cash liabilities
and to secure the
freedom of the net revenue from such demands upon
it, 80 chat as from and after the 31st of December
next all net revenue earned may be remitted and
dividend, a sum of £300,000 should be raised. This
is less than 2 per cent. on the company's gross Capital
account of 11G, GOO, 000. Further capitalrrfeor
oafdtdbie-
tional working stock to meet the rapid pogss
traffic will also, from time to time, be needed. ' To
meet capital requirements the company hold at the
date of this report the following securities: Atlantic
and St. Lawrence Railroad Sterling Mortgage Bonds,
£106,000; Equipment Mortgage Bonds £250,200;
Second Preference Bonds, £101,913; do. (Deferred),
£18,372 ; Fourth Preference Stock, £130,105
total, £606,590. Arrangements have been made in
Canada whereby the larger proportion of the above
sum of £300,000 has been provided, and the directors