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

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The speech of Lord John Russell in the House of
Commons on Friday is commented on by several of the
Paris journals. On the whole, it is not regarded as hay.
ing a very cheering character. The Constituarmnel ad-
mits plainly that nothing of a positive nature is known
to warrant the very sanguine expectations that have been
entertained of the prompt and satisfactory solution of the
Eastern question, and the Pays expresses less confidence
than it did, although it professes still to believe that it
impossible that the Emperor of Russia should refuse to
accept the propositions that have been made to him. It
will be noticed, however, that the Pays declares, as if
from authority, that there is nothing in the propositions
that have been made or may be made to the Czar, that
could bring dishonour on the French and English
Governments, or fall short of the promises that
have been made to secure the integrity and in-
dependence of the Ottoman Empire. If we had
not been assured that no answer had been given by Rus-
sia to the propositions that have been sent in, we should
almost suspect that the energetic declaration made by
Lord John Russell in England, and by the ministerial
journals here, had been caused by some communication
of the unwillingness of the Czar to treat upon the only
bases which can be allowed by two great countries de-
sirous of maintaining peace, but unwilling to purchase the
maintenance of it by concessions which would dishonour
them, and merely patch up the dispute for the moment.
But nothing of this kind has taken place, and we are
still led to hope that the solution will be satisfactory and
honourable to all parties. It will be well to entertain
this hope as long as it can be entertained reasonably,
and to wait patiently for official communications, in-
stead of attaching faith to accounts in German
journals, or to private telegraphic dispatches, nine
out of ten of which are founded upon mere gossip.
There is an article in the A.isernblee Nationale,
which means evidently more than it says, for whilst it
professes to approve of the support given by England
and France to Turkey, it dwells very forcibly on the
embarrassed position of the latter power, as if for the
purpose of showing that it must fall to pieces, and
become the prey of Russia, in spite of all that can be done
to preserve it. It is but too true that Turkey has added
materially to her pecuniary embarrassments by the
efforts that she has made, and is still making to put
herself into a state of defence ; but if the Assemble
Nationale had been sincere in the approbation that it
has recently given to the attempts made by England
and France to induce the Czar to adopt a more equit-
able policy, it would have reprobated with severity the
causes of the embarrassment which has been brought
upon the finances of Turkey at,a moment when her g?-
vernment was endeavouring to improve her resources in

[PRICE SD.

Derby and his followers to explain. The proposal to
exempt vested reversions from the new tax was infinitely

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 OR 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 3,0001. per week. He then 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 thesGreen-
wich, North Kent, and Dover traffic. All those things
would involve expense. They would have to expend
150,0001. 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 50,0001. 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 beedno Crystal
Palace. With regard to the additional sum of 200,0001.
required to be expended, 50,0001. was for the enlarge-
ment of the London-bridge station beyond the sum
above stated, 70,0001. recommended by their engineer and
superintendents for additional sidings and other works,
40,000/. for warehouses at Brighton, Bricklayers' Arms
station, and at Deptford, and 30,0001. 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 established some years ago with a
view to enable the company to close the capital account,
it was found that they were not adequate to effect that
objeet ; and unless they were prepared to set aside out
of revenue 50,0001. a-year for that object they could not
close their capital 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 called 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 belonged to 3,000
or 4,000 individuals, many of them obliged to part with
their property at the market value, and as the latter de-
pended on the amount of dividend the loss would fall
heavily on those who were obliged to part with their
shares. To the few who could retain them for a number
of years the difference would not be so serious. The
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 or to close the
capital account. He might not appear consistent in the
course now recommended, but he thought some 4 or 5
years ago, that 41 per cent. would be arrived at by another
course, partly by an increased traffic and partly by a de-
creased 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-
penses 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 8,000/. per mile,
there was a probability of paying their expenses and
accommodating the districts. It was better they should
pay 3,000/. 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 he 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 300,0001. to the capital account. He
the West-end and Crystal Palace line would take a
large 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. TITS 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. HERAPATH 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 50,0001. 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 12,0001. a year would pay off the 120,0001.
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
7,200,0001. at which it was proposed to close the capi-
tal account. It was true the 470,0001. included 150,0001.
for the Crystal Palace, but it seemed a large additional
amount.

more iniquitous than would have been a refusal to ac-
cept any portion of the bill. The division was taken on

:be amendment because it was certain not to succeed • ,
. •.

yet it would, perhaps, have been more prudent to pledge
the party to a smaller measure of injustice. It is time
for the more serious politicians of the Upper House to
review the character and conduct of their ostentatious,
make-believe leader. When the House of Lords prac-
tically supports the prudent policy of the Government,
it is at least unnecessary that it should incur gratuitous
unpopularity merely because Lord Derby wishes, from
time to time, for an opportunity of displaying his un-
doubted rhetorical powers.
The most cursory reader of last night's debate will be
struck by the feebleness of the arguments against the
general principle of the bill. Without descending to
Lord Winchilsea, we may refer to Lord St. Leonards
for a proof of the enfeebling influence which faction may
exercise on the astutest intellect. " Suppose:: says the

ex-Chancellor, "a person denudes hirii;elf during his
lifetime of property, by transferring his estate to his
child. Hitherto the law had looked with great favour
and approbation on such conduct, but now the feeling
was to be completely changed, by a measure which he
could not but characterise as confiscation." Yet
Lord Malmesbury himself could explain to his lordship
that, in the case supposed, the succession duty will not
attach at all. The son who receives a free gift from a

living father cannot be said to take a benefit by reason
of death. The more plausible portions of the noble and
learned lord's speech were sufficiently answered by the
Lord Chancellor ; and, in truth, the justice of abolishing
the preference hitherto allo wed to settled property can-
not be better demonstrated than by simply stating the
case. If a commutation for a property tax is to be
levied on the occurrence of death, it is sufficiently clear
that the devisee who succeeds by will ought to be
placed in exactly the same position with the remainder
man under a settlement. Great landowners tie up their
property—the middle classes leave their resources free ;
but in both cases the children succeed to the father, not
by reason of parchment arrangements, but by the rule
•f nature, confirmed or recognised by law. Lord
Derby's assertion, that " men of small revenues derived
from settled property would feel the hardship of the
tax more severely than large landed proprietors," in-
volved an entirely false assumption. Men of small'
revenues have not, for the most part, their property in
settlement, and they would, therefore, have derived no
benefit from the success of the amendment which was
ostensibly supported by the Opposition. Lord Cran-
worth said, and with truth, that the popularity of the
measure arises from the perfect comprehension of its
character by the bulk of the community.
Lord Derby seems to think that the injustice of a tax
increases the ratio of the amount which it produces—or,
in other words, in proportion to the property assessed.
An estate, he says, of 50,0001. a year, passing to a
stranger of a certain age, will involve a payment, on the
part of the successor, of 85,0001. in four years. The
example would have been equally intelligible if the
rental had been assumed at 5001., and consequently the
tax at 850/. ; but trifling incomes and petty contributions
excite no sympathy in Lord Derby's mind. There is a
sufficiently simple answer to the grievance complained
of. All fiscal injustice consists in inequality ; and the
hardship suffered by the heir of a great estate is to be
measured by the excess of his payments as compared
with those of a millionaire of equal wealth. A landed
estate in fee of 50,000/. a year is worth at least 1,500,0001. ;
and on that sum a stranger in blood would be charged
150,0001., not in four years, but in a single sum. It
would be easy to vary the illustration indefinitely ; but
a single instance furnishes a sufficient reply to Lord
Derby.
The Lords have acted wisely, both in avoiding a col-
lision with the Commons and in preferring the public good
to their own seeming interest. Having done their duty,
they may now, in their individual capacitygairly balance
the gains of their order against its losses, even in a finan-
cial point of view. The Duke of Argyll was amply jus-
tified in saying that the later Government made the
new impost necessary by their factious and dangerous
proposal of a differential income tax. So great
an excitement had been created in the country by the
countenance which a Cabinet gave to popular fallacies
on that subject, that even the strength of the present
Ministry would probably have been unequal to the task
of establishing a just, equal, and permanent income tax.
As Mr. Gladstone was determined not to sanction,
under any temptation, the first instalment of confiscation
which Mr. Disraeli had recklessly offered, there was no
practicable alternative except to limit the duration of the
tax ; and it was necessary to find some means of replacing
the deficit which would be created by the relinquishment
of so large a proportion of the revenue. It would have
been imprudent, if not impossible, to raise the necessary
amount by any new impost on commodities. Property
offered the only taxable subject-matter, and the existing
legacy duty supplied both a precedent to be followed and
a crying grievance to be redressed. A just financier
could only choose between the abolition of the legacy
duty, and its extension ; and a Chancellor of the Exche-
quer, in search of a revenue, necessarily preferred the
only course which could supply the sum required. The
landowners will pay a proportion of the new burden ;
but they have in prospect the reduction of the income
tax, and they have been saved for the present from the
principle of confiscation which is involved in every scheme
of a graduated tax. The aristocracy may be assured
that the Marquis of Lansdowne speaks advisedly when
he tells them that the present bill places the landed in-
terest in a far better position than they held when they
enjoyed an unpopular exemption.

the interest of civilisation.
The Emperor gave a private audience to General Don
Manuel Blanco Encelada, and received from him his cre-
dentials as Envoy-Extraordinary and Minister Plenipo-
tentiary of the Republic of Chili.
Another political trial will take place on the 10th of
next month, before the Tribunal of Correctional Police.
The prisoners are MM. Jeane, Blazy, Barbotte, Sicard,
Dapatie, Bouquin de la Souche, Rabier, Alvares, Salvat,
Bataille, and Junet. There are eleven others accused,
who have fled, or are at liberty on bail. The charges in
the indictment are—being members of a secret society ;
introducing into France prohibited journals ; being in
illegal possession of arms and ammunition ; exhibiting
for sale prohibited engravings; and distributing printed
works without authorisation.

A Montpelier journal states that M. Arago, the astro.
nomer, left the south of France on Friday last for Paris,
accompanied by his niece, Mme. Laugier.
Yesterday was the anniversary of the commencement
of the works at the Louvre, and such has been the
rapidity with which they have progressed, that already
a portion has attained the elevation of six yards ; the
expense, up to the present time, has not been quite
4,000,000 f., and the number of workmen employed
amounts to 2,000.
A fall of 40c. has taken place in the Three per Cents.
for cash, and of 60c. for the account ; whilst the Four-
and-a-Half per Cents. for cash have given way 20c., and
for the account 40c.—the tendency being downwards.
At the close of business, the following were the prices
quoted :--For cash : Three per Cents., 78f. 10c. ; Four-
and-a-Half per Cents., 103 f. 20c. For the account :
Three per Cents., 77f. 65c. ; Four-and-a-Half per Cents.,
102 f. 80c. Bank Stock remains unchanged in value at
2,740 f. The Northern, Paris and Orleans, Paris and
Strasbourg, Rouen and Havre, and Bordeaux and Cette,
-have each fallen 2f. ; the Paris and Rouen, 7f. ; and the
Western of France, 10f. The Paris and Lyons, Lyons
to the Mediterranean, and Caen and Cherbourg, remain
unchanged. The following are the closing prices :
Northerns, 873 f. ; Paris and Orleans, 1,132 f. ; Paris
and Strasbourg, 927 f. 50c. - .Paris and Lyons, 925 f. ;
Paris and Rouen, 1,093 f. ; Lyonsa to the Mediterranean,
765 f. ; Western of France, 740 f. ; Rouen and Havre,
500 f. 50c. ; Bordeaux and Cette, 635 f. 50c. ; Caen and
Cherbourg, 620 f.

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 9,000/. 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 of capital expended on works of a permanenti nature
e
required to accommodate the traffic and to nsure th
s an
public safety. The increase in the working expense
re-
solved itself into an extra length of train mileage, .tlinit
they were to increase the traffic it must be by
nglov
Athegr
increased accommodation to the public. (Hear.)se in the
source of increased expense arose fromr
d with the re-
price of materials and wages of labotn.-.fi the
en
the whole,
he thought they ought to be
wellt.ile . revenuesatis e
only
n left
sult ; and if every addition to
increased capital expenditure to accommodatetthe act
the one-
halfin-
the amount available for dividend andi terest for.
expentenstfor the
two half-
creased traffic, the result would be highly satisfactory to
the proprietors. The working
years were nearly equal in amount, for first half
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 being
of the
was
greater in amount during the second half of the year
yeartimn Nivnasth4e2fiprsert
cent.half o fefit. h
rTheene
ptaverages, expensewhichnot
un-
favourable. They had to incur a large expenditure of
capital for permanent objects to meet the requirements
of the increased traffic. The attention of the board had
been directed to the closi▪
ng of the capital account, but it
was evident that while the traffic continued to expand at
its present rate it would not be possible to do so, and
they had pointed out in the report the result they had
arrived at on 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 wi▪ th 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 lu a condition to close it ; but

After some further observations the report was re-
ceived and adopted, and resolutions were passed autho-
rising the directors to borrow 46,9301., 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 WU carried.
Resolutions were passed declaring a dividend at the
rate of 11. 16s. per cent. for the half-year, and autho-
thorising the directors to convert the 5 per cent. 50/.
shares into 5 per cent. stock No. 3.
The proceedings concluded with A vote of thanks to
the chairman and directors.