The Sun.
London, England, 1865-11-30 00:00:00

THE SUN, LONDON, THURSDAY EVENING, NOVEMBER 30, 1865.

The Blockade of the Chili= Ports•

(From the Times' Correspondent)
SANTIAGO DE CHILI, Oct. 13.

The steamer which left Valpariso on the sth inst.
will before this reaches you have made known to
Europe that on the 25th of last month Chili for-
mally declared war against Spain. As the causes
which have led to this result, as well as the condi-
tion and prospects of the interesting country which
has thus boldly dared the vengeance of one of the
most ancient monarchies of the Old World, may, I
apprehend, be but imperfectly known to many of
your readers, I submit the following in the hope
that it may help to correct any erroneous impres-
sions which may exist.

Since the close of the War of Independence, now
more than 40 years ago, commercial and political
relations between Chili and the other maritime na-
tions have exhibited an extraordinary development.
Occupying one half of the west coast of South Ame-
rica, with innumerable harbours offering every faci-
lity to foreign trade, Chili, which under Spanish
rule, was considered the poorest and most backward
of her colonies, earnestly applied herself to turning
these advantages to the best account. Possessing a
fertile soil, with inexhaustible mines of coal, silver,
and copper, she soon became known to foreign na-
tions as a thriving people, less disturbed than. other
.
South American States by the ambition of military
chiefs, and only anxious to make the most of the
advantages nature had so liberally bestowed upon
her. A few years of anarchy, indeed, followed the
overthrow of Spanish power; but for more than 30
years the country has been disturbed but by two or
three revolutionary attempts, which, being promptly
suppressed, left the authority of Government more
firmly established than before. So completely, in-
deed, has the revolutionary spirit been crushed by
these repeated defeats that for some years past the
mostfiery reformers have abandoned all hopes of car-
rying out their views by violence, and have apparently
honestly entered on a course of legal agitation
for the removal of the more objectionable features
of the ruling Constitution. To this Constitution,
faulty as it in many respects is, Chili undoubtedly
owes the prosperity she has long enjoyed. A strong
centralised power, capable of subverting at the out-
set the plans of men who have no idea of any re-
form but that brought about by violence, has been
the great want of all her sister Republics. Happily
for Chili, the founders of her Government, having
no base interests to serve, or, if they had, the pro-
perty of her Exchequer precluding their gratifica-
tion, from the first applied themselves to her in-
ternal organisation ; and, considering the materials
with which they had to work, have
_left behind
them a monument alike honourable to their talents
and their patriotism.
In order to show the progress Chili has made
since her emancipation from the rule of Spain, I
have gathered the following statements, made dur-
ing a debate a few months ago in the Chamber of
Deputies, on a motion for a reform of the Constitu-
tion ; also some others from the annual reports of
the Cabinet Ministers :—ln 1810, the first year of
the War of Independence, the population of Chili
amounted to, it is supposed, as no regular statistics
were then ever thought of, between 600,000 and
700,000 people. Santiago had a populationtelow
30,000 ; Valparaiso between 5,000 and 6,000, and
the latter so poor that they could not afford to pay a
salary to their parish priest. The Customs revenue
did not amount to $60,000 ; and there was but one
passable road, that between Santiago and Valpa-
raiso, about 90 miles long. The exports of produce
had never risen to $1,000,000. Since then, not-
withstanding:a desolating war, not entirely con-
cluded for 15 years, in order to drive out the Spa-
niard, and seven oreight years of domestic troubles,
with something over 30 of peace, the population,
according to the census taken this year, has in-
creased to a fraction less than 2,000,000. Santiago
has more than 120,000, with entire streets of sump-
tuous private residences. Valparaiso has close on
80,000, and increases with amazing rapidity, some
of its most important establishments being con-
structed on ground over which the ocean not long
since rolled. Roads have been opened in every
direction, under the euperintenclonee of skilful en-
gineers, both native and foreign, and although in
this branch much still remains to be done, still the
results already obtained are highly encouraging.
Bridges arc still scarce, owing to the want of fur ds,
but have been erected in the more important points.
There are some 600 miles of telegraph, 330 miles of
railway have been opened to the public, 100 more
ought to be finished at the end of this year, and
another 100 miles are about being immediately
commenced. The railways already finished have
cost something over $16,000,000. The Customs'
revenue last year amounted to $4,047,787 ; impor-
tations from foreign countries, formerly confined to
a few arrivals from the Viceroyalties of Peru and
Buenos Ayres, amounted last year to $18,867,365,
exportations to $27,242,853, England with her
colonies standing at the head of both buyers and
sellers. The coasting trade for the same period was
$28,896,783. The educational movement, though
not so gratifying, is still worthy of attention. The
jealous policy of Spain in endeavouring to strangle
every attempt at education in her colonies is well
known, and to it more than to any other cause
may be attributed the many calamities which have
befallen the Governments which have succeeded her.
In Chili the only establishment for education was
the University of San Felipe, in which a limited

number of students imbibed a small amount of bad
Latin, together with an unlimited supply of such
scholastic divinity as was in vogue in the middle
ages. Some primary schools must, no doubt, have
existed in the larger towns, but all recollection of
them and of their system, if they had any, has long
since passed away. Women were jealously shut
out from all means of improvement ; to a few
reading was permitted, but writing was a thing
not to be thought of. At present public instruc-
tion is presided over by a Cabinet Minister.

The University of Santiago has at its charge the
inspection and direction of the provincial lyceums
and the primary schools. In the capital city of
each of the fourteen provinces there is a lyceum,
and the primary schools are scattered over the whole
republic. According to the Minister's report, there
were last year in operation 641 schools for gratuitous
education, supported by Government funds, and
352 private establishments for education—in all 993
primary schools. In the former the number of re-
gular attendants was 26,492 boys, and 12,744 girls
—total, 39,236. The latter attended by 8,630 boys,
and 2,941 girls—total, 11,571; making in all 50,807
of both sexes—a result highly gratifying and very
creditable to the zeal of the authorities when one
considers the many difficulties the poor seeking after
knowledge have to encounter in a country stretching
Over more than 25 degrees of latitude, with not a
twentieth part of its surface peopled, and with as
yet very imperfect means of communication with its
settlements at enormous distances from each other,
and even neighbouring ones often separated by ut-
terly impassable mountains ; added to this the
scarcity of funds and the almost total impossibility
of securing proper localities for schools in the poorer
and more remote districts.
othing shows more the honourable character of
the men who have directed the destinies of Chili
than the economy they have introduced into all the
branches of administration. With an army of 3,000
men, well equipped and carefully disciplined ; a Na-
tional Guard, tolerably well organised, which can
at any time be raised to 90,000 or 100,000 men,
Nyiho in national and civil wars, and under the ecm-
mand of good officers, have often proved themselves
steady and reliable soldiers ; a navy which, though
now reduced to few almost useless vessels, in times
not very remote, and led by Cochrane, Blanco, and
Simpson, has carried her flag triumphant through
many a bloody fight, the charges of administration
together with the interest on:the public debt, have
been all met and punctually discharged with a re-
venue which has never exceeded $7,000,000 (about
£1,400,000). iThis well-known probity of her rulers
and the energetic character of her people have long
given Chili an influence among her less fortunate
sisters far beyond what her population or resources
could entitle her to. Instead of wasting her little
revenue on armaments or jobbery, she has carefully
devoted it to her internal organisation, her harbours,
her roads, and the development of her agricultural

and mining interests. So that now, when Spain
comes to revenge the many humiliations which in
former times she suffered at her hands, she finds her
with scarce a ship or a gun to resist her ; her forts
tumbled into ruins, her navy gone to pieces, and
nothing but the stout heart and indomitable will
which once before, and it is to be hoped will again,
carry her triumphant through the contest.

Her political and commercial relations with the
mother country have been long confined within the
narrowest limits. While her shores were sought by
the ships of all other nations ; while in her ports the
English, French, American, German, and other flags
were never absent, the Spanish were rarely to be
met with ; and while the merchants of other nations
formed wealthy establishments all along the coast,
the Spaniards, except a few in Valparaiso, were
rarely to be met with, except as the keepers of the
lowest class of retail shops—honest and industrious,
it is true, but brutal and repulsive in their manners,
and never caring to hide their hatred towards the
little republic which, on the bloody fields of Chaca-
buco and Maipu, has chastised the arrogance of the
Lion of Castille. Nevertheless, owing to their in-
ferior social position, this class of persons could
exercise but little influence on the great mass of the
nation. The memory of the ferocious struggle was
beginning to pass away. The Chilian, wealthy and
prosperous, recollected he had an affinity to the
former lords of his country, looked out anxiously
for the sangre azul that might still course through
his veins, and when he could find any felt himself a
prouder if 'not a better man. I have no hesitation
in saying that up to two years ago, notwithstanding
all the gasconade of " Independence Day," the
Chilian looked with pride and exultation on his
relationship to his old masters. Somewhere about
that time the Government of Isabella bethought
it of sending a " Scientific Commission" to
the Pacific. Some incredulous persons shook
their heads at this, more particularly when it
was known that the " Scientific Commission "
was to be escorted by two powerful fri-
gates and several heavily armed gunboats.
The Government, I believe, shared in these

fears, as there was an attempt made to get some
money to strengthen the marine ; but the alarmsoon
passed away, and when the squadron cast anchor in
Valparaiso Bay it was received with the warmest
demonstrations of friendship. Balls, dinners,
serenades, &c., were the order of the day, and the
good citizens of Valparaiso went almost wild with
joy. Soon Admiral Pinzon, with his officers and the
" Scientific Commission," made their appearance in
Santiago, where their reception was also most flat-
tering. The President entertained them at an official
banquet, the flags of the two nations floated over
the heads of the happy guests, and everything pro-
mised a lasting friendship. The officers frequented
and found themselves the lions of all assemblies, and
" all went merry as a marriage bell." But a change
soon came ; the Santiaguino, cultivated and mali-
cious, soon got disgusted at the free and easy fore-
castle manners of many of his guests; the "Scientific
Commission" was quickly found out to be an arrant
juggle ; the Admiral himself had evidently never
been a very diligent student of " the proprieties,"
and the late " lions" suddenly found that their
absence was far more sought for than their com-
pany. They returned to Valparaiso, sulky and
discontented, got into rows, and some personal
encounters took place ; finally, the squadron took
its departure without beat of drum, and leaving
much soreness of feeling behind. Some months
afterwards the nation was suddenly startled from its
propriety by hearing that the " Scientific Commis-
sion" had, on some pretext invented for the occasion,
treacherously seized the Peruvian islands of the
Chinchas, and that, probably for a more scientific
analysis of their contents, it 'attended to keep them.
As the Chilians, more than any others, had been
instrumental in the establishment of an inde-
pendent republic in Peru, this outrage was felt
as a national insult. The excitement was tremen-
dous, but it is false to state, as the Spanish journals
have reported, that the Spaniards have been ill-
treated or their properties injured; so far from that,
they have up' to the present, even since the
commencement of the war, been so little molested
that they keep Pareja well posted in every matter
that he takes interest in. To return—a meeting was
called in the theatre to protest against the seizure.
Unfortunately the Spanish Minister lived close by,
and as a party of processionists passed by the house,
from the staff of which floated the Spanish flag,
some of the mob shouted out, ' Down with the flag!"
The more sensible of the party, however, formed
themselves into a circle round the obnoxious emblem
and prevented any mischief being done. The crowd
passed on, and nobody thought more about the
affair till it was known that the Minister Tavira had
demanded satisfaction, which was refused on the
ground of no offence having been offered. The
difficulties in Peru continued : the Congress of that
country had authorised the Executive to declare
war ; Chili proclaimed coal contraband of war ;
scurrilous publications made their appearance, re-
clamation followed reclamation, and everything
foreboded an open rupture, when the better sense
of Narvaez, who had succeeded O'Donnell, put a

stop to all by patching up the difference with Peru,
which showed herself ready to submit to any amount
of humiliation, in order to get back her guano islands,
and authorising Tavira to settle the affair with Chili.
But a new turn takes place in the ever-changing
kaleidoscope of Spanish politics ; O'Donnell comes
again on the scene, with no object, it would appear,
but to undo whatever his rival had done. The ar-
rangements of Tavira are disapproved, he himself
recalled in the most insulting manner, and the new
Admiral, Pareja, sent down from Peru to try what
virtue there is in great guns. Pareja has an injury
of his own to revenge. Of a Peruvian Royalist
family himself, his father had been killed in a san-
guinary battle in Chili, and his bones rest in the
desolate graveyard of Chillan. Forty-six years have,
it appears, not lessened the son's desire to have
vengeance for this, and he now comes to exact it if

he can. From the first he opposed every arrangement

if not made at the cannon's mouth, and hisrepre-
sentations, backed by the violent protests of the
Spanish residents, have been Jistened to by the
O'Donnell Cabinet, which has given him full au-
thority to carry out his own views. Accordingly,
on the 17th of September, the first day of the cele-
bration of the National Independence, and, of course,
chosen for that reason, he entered Valparaiso in the
powerful frigate Villa di Madrid, with topmasts
struck, hammocks stowed, and everything prepared
as if for a bloody combat, and cast anchor along-
side the Esmeralda, a beautiful little corvette of the
old class, the only war ship the Chilians possess ;
built on the Thames some years ago, and mounted
with some 20 light guns, but which half a broadside
from her formidable neighbour would blow out of the
water. He Ile immediately forwarded an ultimatum to
couched in the most insulting language,
informed the Government of the disapprobation of
Tavira's conduct, demanding a salute of 21 guns
before negotiations should be entered on, and giving
four days to think the matter over. Even had the
Government been inclined to make concessions
the style in which they were demanded precluded
the grant of any. Orders were instantly despatched
by telegraph, and that night at 12 o'clock the Esm-
eralda, which was to have been the first victim to
Spanish prowess, suddenly lighted her fires, hoisted
her anchor, and, before Pareja could take any mea-
sures to stop her, wheeled in her berth, and with her
band making the night air ring with the martial
strains of the National Hymn, she plunged off into
darkness. Since then she has not been heard of.
As she takes many more than her regular comple-
ment of officers, it is supposed that she has gone to
play the Alabama in the Atlantic, and that she
carries orders for the commissioning of others. The
Government refused Pareja's demands in the most
peremptory manner, and with the highest disgust
bid him do his worst, and appealed to " God and
the nations" for its justification. The diplomatic
body unanimously tried to induce the testy Admi-
ral to listen to reason, and, finding he would not,
protested against his conduct. Threats having
failed, force was immediately resorted to, and Val-
paraiso and the whole cost of Chili was declared in
a state of blockade. Whether foreign Powers will
recognise this blockade remains to be seen. The
idea of blockading 500 leagues of coast, with in-
numerable
gumeranbbleoaistsla,nds, by means of five or six frigates
is simply absurd, and, besides, harms

foreigners more than Chilians, who seem rather
amused at the seizure of ships which, though carry-
ing their flag, belong in nine cases out of ten to the
foreign merchants of the coast. The establishment
of the blockade was followed by an immediate de-
claration of war against Spain. All the acts and the
proposals of the Government to the Congress were
unanimously approved by that body. The leaders
of the different factions, which had been persecuting
each other for the last 50 years, embraced in the
presence of the Chamber of Deputies, and amid the
enthusiastic acclamations of an immense body of
citizens solemnly vowed to bury in oblivion every
recollection of the past. Pareja, knowing that more
than half the revenue of Chili was derived from the
Customs, imagined that by cutting off that revenue
he had her at his mercy. The answer to this was
the immediate abolition of all Customs' dues during
the war, and the imposition of a property tax of 5
per cent. in their stead.

Loans, gifts, paper money, donations of all kinds,
anything and everything is sought for in order to
provide the material for a long and costly war.
Emissaries have been despatched to the sister States
to stir up their hatred of the mother country, and
all classes seem determined to stake everything in
order to save the national honour. Meanwhile,
trade is at a standstill ; nothing is in demand but
warlike stores. The owners of the confiscated ships
are tearing their hair and appealing to their Consuls,
who, though animated by the best intentions, can, I
believe, under the circumstances, do nothing.
Pareja has probably already achieved all the glory
he is ever likely to be crowned with, as it is not pro-
bable there are many more ships to be seized, and
the worn-out men-of-war have been sunk before his
eyes. He will scarcely risk a landing, as he has
but few troops, and should he ever be reinforced
they would find t Dugh customers in their way—fel-
lows fully able, and more than willing, to give a
good account of them. His achievements in that line
will probably be confined to sudden descents on de-
fenceless towns, taking good care that his men do
not advance beyond the range of his broadsides.
His coals and provisions must soon run short,
and where is he to provide himself with these requi-
sites is probably as much a mystery to himself as it
is to everybody else. Chili= cruisers will soon be
doing a thriving business among the Spanish mer-
chantmen, which will scarcely find themselves safe
in their own ports ; and Spain, which is now engaged
in an attempt to revive an influence -which would be
that of his Most Serene Majesty the King of Da-
homey, may have cause before long to sorely regret
that she provoked a war with a country that was
willing to be her friend--•a contest from which she
can reap no advantage, and from which she will be
fortunate if she can retire without a still further loss
of prestige and of power.

(From anther Correspondeat.)
VALPARAISO, OCt. 18.

The blockade of this port, as that of Coquimbo
and Caldera, continues to be carried out most strin-
gently, and in some cases it is attended with great
hardships. One British ship coming into Caldera
with half her crew down with scurvy, was ordered
off, and took refuge in the small and miserable port
of Cobija, on the coast of Bolivia, a place where
there is no water except what is distilled from the
sea, and no fresh provisions to be had, the country
for miles around being a complete desert, and where
no rain falls.

The foreigners here have certainly not had occasion
to grumble. The Spanish admiral for some time
granted every reasonable request made to him, ad-
mitted many vessels in, and gave permits to others
to load copper at the coast ports belonging to fo-
reigners. At the northern ports, Coquimbo and
Caldera, the terms of the blockade were strictly en-
forced, as the commanders of the frigates appear
to have had no discretionary powers. The most
serious ground of complaint was the absurdly short
time allowed for vessels to discharge and load—
viz., ten days. The bay, where usually from 80 to
120 merchant vessels are to be seen at anchor, is
now completely empty, nothing being :left
but some coal hulks and two or three vessels
under repaim and unable to get to sea. At one
corner arc the foreign men-of-war, consisting of her
Majesty's ships Mutine and Columbine, the United
States' corvette St. Mary, the French screw frigate
Pallas, and the Italian screw frigate Principe Hum-
berto. Her Majesty's screw frigates Leander and
Scout are daily expected.
As yet there are no signs of a bombardment, but
our Charge d'Affaires, Mr. Thomson, has made
public the reply of Admiral Pareja to an official
communication made on the7th inst. by Mr. Thom-
son, but which he has not published. From this
document we are to understand, however, that in
case the Government of Chili should continue to
refuse the required satisfaction, the Spanish Admiral
may be under the necessity of bombarding the public
property, and mentioning the Almacenes fiisales, or
Government bonded stores, where a very large
amount of English and other foreign property is
warehoused,' and that it would be the interest of the
foreign merchants to take such measures as may
prevent loss to themselves should such a contingency
arise.

Applicationshave been made by severalmerchants
to the Chili= Government requesting they may be
allowed to have their goods removed in bond to pri-
vate warehouses. This has been refused. The
Government naturally feels that the large amount
of foreign property in its bonded stores is the only
protection it has against their being levelled to the
ground. In case of bombardment, the only remedy
will be to pay the extravagant ad valorem duty of
25 or 30 per cent. on goods a large amount of which
were destined for other markets as not suiting that
of Chili, Valparaiso being the great depot for the
whole Pacific coast from Mexico down, as without
vessels it is now impossible to ship them away.
Few prizes have been made by the Spaniards, and
it is strange that out of a large mercantilefleet under
the Chili flag so few have fallen into their hands.
Vessels making this port pass close under Curau-
milla Point, some 15 to 20 miles to the south, where
the Chilians have stationed a number of whale-boats
to warn every vessel they can get near ; by this
means many Chili ships have been saved. The
Spaniards are evidently ignorant of the fact, having
taken no steps to capture the boats. A
great deal of discussion has taken place relative
to the capture of the steamer Matias Consino, men-
tioned in my last letter. She is a fine new screw
boat of 1,000 to 1,200 tons burden, only recently
arrived from England, where she was built by order
and for account of a native house. On her arrival
she was put into the Chili flag, and sent to the
northern posts, but on the appearance of hostilities
breaking out with Spain she was transferred to a
British subject, a clerk in the employ of the owners,
and a sailing letter granted by the English Consul
two or three days previous to the blockade being
put on, and by means of a small vessel, which
ran the blockade from this, these papers and an
English ensign II ere conveyed to her, whereupon the
captain hoisted the English flag and put to sea ;
however, she was fallen in with by the Spanish
frigate Berenguella, and after a chase boarded, and
found to have no clearance, and her other papers
not entirely in order. She was consequently made
a prize, and sent in here. The consul has made a
demand for her delivery, but without effect, as she
sailed two days ago with a Spanish crew. She had
on board a cargo of 800 to 900 tons of copper ore.
It is reported, but I cannot vouch for the truth of
the statement, that Admiral Pareja agreed to leave
the question to be settled by our Charge at Santiago,
Mr. Thomson, who declined to adjudicate in the
matter.
There is not the slightest appearance of the Chili
Government giving way,
and the Spanish demands
will be resisted to the last. Some natives go so far
as to say that no foreign intervention will coerce
them, and that the country would prefer becoming
a second Paraguay. So far the losses fall on the
foreigners, and the time has not yet arrived when
the natives will feel the pressure. They are exceed-
ingly jealous of the new favours granted by the
Spanish Admiral to foreigners.

The Government, I consider, are in most matters
acting with great judgment in the laws they have
passed. No time has been lost in establishing postal
communication by land with all the principal towns
both north and south. New telegraphic lines are
to be opened new cart roads made. The whole of

the ports in the Republic are thrown open, and
all goods or merchandise introduced after the
blockade are free of all duties and restrictions ; the
same applies to exports. There is a curious Jaw,
however, which prevents this coming into operation
at once. The law is promulgated at Santiago, and
takes effect at the different points, according to the
distance from Santiago; it travels at the rate of four
leagues per diem, so that although the 9th inst. was
the day upon which the decree was signed it only
takes effect here on and after the 19th inst., and at
some of the northern ports it wilt be the end of next
month before it takes effect.

All idea of resistance by sea appears to be given
up. Troops, however, are being organised in case
the Dons should attempt a landing. The fort on the
the hill at the entrance of the harbour has been dis-
mantled, as the Spanish Admiral expressed his in-
tention of doing so if the guns were not removed.
The tone of the native population is much more sub-
dued than it was at the commencement.

The large number of miners who will be compelled
to abandon the copper mines throughout the whole
northern district will be a very serious embarrass-
ment for the Government. Already riots are said to
have taken place in some of the districts to the north
of Capiapo ; if this occurs now what will be the state
of things when these lawless people find themselves
without food or the means of obtaining it.
Business is at a complete standstill. Gold has
quite disappeared from circulation.
Her Majesty's ship Scout, from England, anchored
in the bay at 2 p.m. The mails close at 3 o'clock.

RAILWAY INTELLIGENCE.

WATERFORD AND KILKENNY.

The half-yearly meeting of this company was
held yesterday at the London Tavern ; Mr. Dela-
hunty in the chair.

The report stated that the traffic receipts for the
half year ending the 29th of September last
amounted to £12,095, leaving a balance of £6,000,
which was £540 more than for the corresponding
period of 1864. To the balance of £6,000 was
added £39, the balance from the previous half-year,
making £6,039. From this was deducted £3,618,
the interest on loan capital, leaving to credit of re-
venue for dividend £2,421. The directors recom-
mended that a dividend at the rate of 2 per cent.
per annum be paid on the preference stock of the
company for the half year, leaving a balance of
£452. The opening of the part of the Kilkenny
Junction Railway between Kilkenny and Abbey-
leix (a distance of 19 miles) had increased the gross
traffic for the half-year to the extent of £1,381 over
the corresponding period, and for the six weeks
since the 29th of September the increase had been
£5ll, and when the further distance of 'nine miles
was completed to Maryborough, where the Junction
Railway would meet the main line of the Great
Southern and Western Railway, a considerable ac-
cession of traffic would take place. The capital
account showed a total expenditure of £595,885.
The CHAIRMAN, in moving the adoption of the
report, congratulated the shareholders on the im-
proved position and prospects of the company. In
following out the views of the shareholders ex-
pressed at the last meeting the directors found that
to enter into working arrangements with the
Great Southern and Western would have been
prejudicial to the interests of the company, and
they, therefore, refused to enter into any agree-
ment. No doubt, when the Kilkenny Junction line
was further opened to Maryborough there would be
a great accession of traffic on their line, and
the increase of traffic would be still more when they
could extend the new line from Maryborough to
Mullingar, as proposed in the circular which had
been sent to the shareholders.

Mr. THORNTON said he thought that the report
ought to have been fuller and more explicit.
The CHAIRMAN said they did not think it, prudent
to state all they had in contemplation, but he inti-
mated that they would probably be able to enter
into advantageous arrangements with the Great
Western.

Mr. ADAMS thought the Board had endeavoured
to do the best they could, and agreed that it was to
the interest of the company to work in connection
with the Great Western of England Company.
Mr. CHAMPNEY was glad the Board had taken
an independent stand, and thought the line was now
in a more promising state than it had ever been.

The CHAIRMAN said the directors would be glad
to consult with Mr. Adams, Mr. Thornton, Mr.
Freeman, and other shareholders as to what should
be done.

The report was then adopted ; and a dividend at
the rate of 2 per cent. per annum was declared on
the preference stock, payable on the 18th of
December.

In reply to a question it was stated that the
directors had obtained a concession from the Loan
Commissioners extending the time for the repay-
ment of the loan from six years to 16 years, and
reducing the annual payment from £lO,OOO to
£7,000. The proceedings concluded with a vote of
thanks to the chairman and directors.

that the Government would meet the question in a
just and equitable spirit, as, in the case of Pondi-
cherry, the French Government had done in their
negotiations with the board, which were yet under
consideration, and which would be submitted to the
shareholders in due course, when the whole ques-
tion of the future extension of the company's opera-
tions in India would come before them.

Mr. G. NORTON, a director, in seconding the
motion, said he had great confidence in the under-
taking, and that the proprietors would be satisfied
with all the directors had done. It was an extra-
ordinary circumstance that the traffic for the first
three moilths of their experience had shown a net
return at the rate of 4 per cent. per annum on the
outlay. The directors had fulfilled their promise in
a cautious and prudent way, relying on experience
at every step with a view to a satisfactory result.
The French Government at once saw the advantage
of the company's system of railways, and readily
offered terms to undertake those works for them.

Mr. G. SMITH and Mr. Alderman ROSE expressed
their great satisfaction at the admirable manner in
which the affairs of the company had been con-
ducted.

The report was unanimously adopted, and the re-
tiring directors, Sir M. Stephenson, Mr. Norton,
and Mr. Leith, were unanimously re-elected. The
retiring auditors, Mr. Franklin, and Mr. Smith,
were re-elected, with an allowance of ten guineas
each for their services during the past year.
On the motion of Captain CUNDY, seconded by
Mr. PRATT, it was unanimously resolved that the
directors be paid the usual remuneration for their
services since the establishment of the company, and
that they be requested to accept it in paid up shares
out of those remaining unallotted.
The meeting was then made special, and the
directors were authorised to arrange with the Right
Hon. the Secretary of State for India in Councilfor
the extension of the line Irom Conjeveram to Pon-
dicherry upon such terms as the Board might ap-
prove, subject to confirmation by the shareholders
at a meeting to be convened for the purpose.
The proceedings concluded with a vote of thanks
to the chairman and directors.

SOUTH EASTERN, AND LONDON, CHATHAM,
AND DOVER.

These companies have given joint notices of their
intention to apply in the next session of parliament
for power to make a railway from the Mid Kent line
at Bromley to Farnborough and West Wickham ;
and also for power to make a railway from the South
Eastern and London, Chatham, and Dover Rail-
ways at Beckenham to East Grinstead, Lewes, and
Brighton, with branches ; in fact, another line from
London to Brighton. They propose to raise jointly
separate capitals for those purposes, and to appoint
joint boards to carry them out.