The Sun.
London, England, 1862-04-24 00:00:00

PERNAMBUCO.

The adjourned half-yearly meeting of this company was
held yesterd,,y et the Lundell Tavern, Mr. It. Benson in the
chair.

The Secretary having read the notice of adjournment,
which was for the purpose of awaiting the answer of the
Brazilian Minister to the letter of the chairman of the
company to his excellency, dated the Ist inst., and in the
event of such answer being to the effect that the result of
the examination of the company's capital expenditure was
not satisfactory, that his excellency be requested by the
directors to specify in what respect it was not so.
The CHAIRMAN said. before he proceeded with the busi-
ness for which they had met, he would read a letter re-
ceived from their engineer, dated the 30th of March. It
stated that they had prepared for opening the third section
of the line on the 25th of March, but, owing to extensive
floods, gaps were made in some of the embankments, but
none of them very serious ; the largest carried away about
30 feet of subsoil and a 9-feet culvert, which had prevented
the opening of the day appointed. It was, however, ex-
pected by the engineer that on the 3d of April the damage
would be so far repaired as to allow of the opening of the
third section for traffic, causing a delay of only nine or ten
days. He had no doubt that the line was opened at the
time expected, on the 3d inst. The estimated cost of the
damage to the works was about £2OO. By the same mail
it appeared the authorities were pressing for additional
rolling stock, which would amount to £30,000 more than
was specified in the conce-sion. They had already exceeded
the amount guaranteed by the Brazilian Government, and
it was therefore a question, under the circumstances, as to
providing additional rolling stock. It certainly appeared
an act of excessive folly to make a railway and not to make
provision for sufficient working stock to carry on the traffic ;
and this was an additional reason for pressing their claim to
an extension of the guarantee over the requisite capital for
completing the railway and providing sufficient working stock
to develops the traffic, which, he was glad to say, was rapidly
increasing. He had heard it said that the Government would
wait till the railway was completed before they would inform
the company as to whether or not they would extend the
guarantee over the whole of the money which had been
found necessary to complete the railway. If the Govern-
ment would only say they would extend the guarantee of 7
per cent. to the additional capital, the directors would at
once borrow money to provide the additional working stock,
now so much required for the traffic. They had told the
proprietors at the last meeting that, unless they could get
an extension of the guarantee, the directors would not be
able to continue the payment of the 7 per cent. after the
opening of the line throughout for traffic, which was fully
expected to take place in July nett. The directors had
done everything in their power up to the present time to
obtain an extension of the guarantee from the Brazilian
Government. He then read the correspondence that had
taken place between himself and the Brazilian Minister in
London, who was also ex-officio a director of the company.
The object on the part of the company was to ascertain
whether the answers and explanations of the directors were
satisfactory to the commissioners, Messrs. Morgan and
Lane, appointed by the Brazilian Government to investi-
gate the accounts of the company; and also to obtain an
expression of opinion from his Excellency the Brazilian
Minister as to whether the explanations were satisfactory,
and if not, to state in what respect they were not sa.isfac-
tory, in order that any further information might be
given so as to completely meet the inquiry in every point
as to the expenditure on capital account. The
Brazilian Minister declined to give any opinion
on the subject, or to make known to the directors the
result of the inquiry by the commissioners, stating that
his duty was simply to transmit the report of the com-
missioners, when he received it, to his Government, and to
await its instructions. He could not embarrass his Govern-
ment by the expression of any opinion on the subject, and
must treat it as a confidential communication. He then ex-
plained that they had done everything in their power to
ascertain whether anything remained unexplained, in order
that the fullest and most complete answer should be given,
so as to let the report of the commissioners on the affairs of
the company go before the Brazilian Government in the
most complete and satisfactory manner. They had pressed
this matter as much as possible in the interests of the share--
holders, so that nothing should be left undone by the direc-
tors on a question which was of great importance to the
proprietors. They were anxious to avoid any misapprehen-
sion, and desirous to place their case fully and fairly
before the Government. They only asked that they might
be treated in the same liberal and considerate manner as
tne other railway companies had been treated by the Bra-
zilian Government. The amount of capital guaranteed for
other Brazilian railways averaged between £22,000 and
£24,000 per mile, while the guarantee to the Pernambuco
Railway extended only to £16,000 per mile, which had
proved quite inadequate to the construction of a railway in
that country. The other railway companies had profited by
their experience, had obtained far better terms, and it was
only fair that they should be put upon the same footing.
Mr. J. JONES thought the Brazilian Minister was right
in refusing to give information on what he considered a
confidential question. At the same time the Brazilian
Minister was one of the directors of the company, and was
to blame if anything was wrong at the Board. It was upon
the faith of his appointment by the Brazilian Government
to represent them at the Board that he and others had in-
vested their money to construct a railway in Brazil. He
(Mr. Jones) presumed that the Brazilian Minister had sanc-
tioned the necessary expenditure of capital to make the
railway and supply the requisite rolling stock. He wished
to know whether the Brazilian Minister had ever made any
protest against their proceedings or expenditure. (The
Chairman—No.) Then, of course, the English proprietors
had been misled by the appointment of an ex officio director
on the Board, and in supposing that he in that capacity re •
presented the Brazilian Government.
Mr. MAUDE thought the Brazilian Minister wished to
occupy a neutral position between them and the Govern-
ment.

Mr. WHEELER always considered that the Brazilian
Minister was placed on the Board to watch the interests of
the Brazilian Government, and to see that the money was
properly expended.

A long discussion ensued, in the course of which it was
stated that the Brazilian Minister was supplied with a com-
plete copy of the proceedings and minutes of the Board
whether he attended the Board meetings or not. He had
never expressed his dissent as to matters of expenditure,
but had made verbal alterations in reports of the directors
before they were issued.
On the motion of Mr. Merin, seconded by Mr. WHEELER,
a resolution was unanimously passed to the effect that after
the declaration of his Excellency it was inexpedient to press
the Brazilian Minister further, relying on his Excellency to
report on the affairs of the company favourably to his Go-
v er nment.
Dr. LONGSTA7F, as auditor, said he had seen vouchers for
every sum in the accounts, and he was sure they would bear
any investigation. He concluded by moving a resolution
to the effect that the shareholders fully approved the course
adopted by the directors, and left the matter entirely in
their hands as to whether they should send a deputation or
not to represent the company at Rio.
The motion was seconded, and carried unanimously.
The proceedings concluded with a vote of thanks to the
chairman and directors.

The large quantities of fish caught round the
Channel Islands have always been attributed to vast sup-
plies of sand eels found close to the islands on which such
fish f
rthoeisaee
s. eels
pan:es:pposed to driven into thee Considerable time past a
shallowsed, and
e bypop
colony of sharks have been living in the Channel which
have drivenbeen
away the porpoise tribe, and there has ever
since
great scarcity of the fish which live upon the
sand 018. Curiously
enough the sharks have now left the
Channel, Porpoises have returned, and the fish which were j
so scarce are as plentiful as ever.