The Sun.
London, England, 1853-09-16 00:00:00

SEPTEMBER 16, 1853.

r i/RicE SD.

meeting, but he felt bound to give this explanation, ' a further call to the extent of 200,0001. more did not
feeling that the statements of Mr. Hamilton arose remain to be paid up by the shareholders of the Reading,
from a miserable personal pique against the chair- ' Guildford, and Reigate Company, for the completion of
man. (Cheers.) their line ? If that were so, he also wished to know how
Mr. HAMILTON explained, in answer to Mr. SMITH, much of that 200,0091. had been expended, and in what
that he had been friendly to the amalgamation with the manlier, as he was given to understand that correct in-
steam-boat company, but had wished to see the arrange- formation on that point would show that there had been
ment effected upon fair and honourable terms. an improper expenditure of this money ?
The CHAIRMAN, in reply, said that there was one state- Alderman SALOMONS : Which of the two companies
meat in Mr. Hamilton's address from which he thought do you mean has improperly spent it ?
the meeting might judge of its whole contents and tenor. Mr. JOSIAH WILSON : The South-Eastern Company ;
Mr. Hamilton's address, he must say appeared to him to and he thought that the directors would act wisely if
be one tissue of personalities. (Hear, hear.) That gen- they assented to a resolution to the effect that the audi-
tleinan had had the presumption to state to them that tors be requested to examine into the manner in which
the directors of that company suffered a train to run on the amount paid up upon the call of the Reading, Guild-
the Ncrth Kent railway at an unusually late and useless ford, and Reigate Company had been expended after the
hour, and for what purpose ? For his (the Chairman's) contract had been entered into for the purchase of that
individual accommodation. Now, if Mr. Hamilton had company. He repeated his conviction that the want of
exercised his great talents for investigating matters of confidence in one man had caused all the depression
that kind, and had looked at the time-bill of the Brighton under which the South-Eastern Company had suffered. '
Railway Company, lie would have found that during The CHAIRMAN : And that one man had the right to
August, 1853, a train of that company left London at stand up at that meeting, or before any body or Eno--
exactly the same hour as the train of the South-Eastern lishmen, and give a flat denial to the statement which
Railway ran, as Mr. Hamilton, said for his private Mr. Josiah Wilson had dared to make. During, his
accommodation. After discharging the duties of a nine years' connection with the directorate of that corn-
director of that company now for a period of nine years, pany, the support of the numerous body of shareholders
lie would not attempt any justification of himself; in that room and out of doors had been given to him
but he must say that a train leaving London-bridge from a confidence in his integrity and his devotion to
at half-past twelve at night would be of very little the interests of the company
--° (cheers and some marks
use to him after the termination of his parliamen- of dissent)—and he defied Mr. Wilson, or any other man,
tary duties. (Hear, hear.) What he did do after to adduce one single fact to invalidate that statement,
the termination of those duties was to return to the or to affect his character. (Renewed cheers.) He'de-
terminus of the company and repose in a chamber there spised the hon. gentleman's accusations, and he won-
until he resumed the labours of the next day. As to dered that any man__ (Interruption, and a voice,
the alleged inutility of the half-past twelve train, he in- "Lord Torrington.") The mouth of the honourable
vited Mr. Hamilton to come to London Bridge, and he gentleman surely ought to be closed with regard to that
would see how absolutely incorrect his statement was, nobleman at a moment when they all knew that he was
because that train was much used by persons residing now bowing under a dispensation of the Almighty, and
at Lewisham, Blackheath, and other parts of the line, mourning the loss of an only child. (Hear, hear.) Lord
and the same epgiA9 .351lieb, took that train _down re- Torrington was the devoted servant of that company,
turned early the next morning with a load of fish from as the proprietors of a former day knew- well. The
Gravesend for Billingsgate market. With regard to the honourable proprietor talked also as if something could
accounts, they appeared before the proprietors not only be done with the Reading, Guildford, and Reigate lease ;
with the sanction of the directors and a private accoun- but the thing was absolutely done and finished, and no
tant, but stamped with the authority of the auditors human power could now undo it. All the accounts of
and a public accountant who had been employed to ex- the Reading, Guildford, and Reigate Company had been
amine them. At the same time there was one item of examined and authenticated by Messrs. Quilter and
charge on the half-year, namely, a sum of 5,0001. odd Ball. The Reading, Guildford, and Reigate Company
for engines, carriages, and waggons, which had been had spent 600,0001. on their line, and their debts
placed to capital, and which admitted of further expla- amounted, he believed, to 79,000. The question was,
nation than appeared in the accounts. It was perfectly how they were to raise the requisite sum to extricate
true that no additions had been made to the stock of themselves from that debt, and finish the works which
the company during the past half-year but then there they had engaged to complete. If Alderman Salomons
were building at the company's Ashford works ten new had acted in the same spirit as Mr. Wilson had evinced,
locomotive engines, besides a large number of carriages, the South-Eastern Company would have been saddled
and this sum of 5,0001. odd represented the outlay upon with the amount of this further call of 200,0001. at the
these engines and carriages, which had yet to be delivered rate of 51 per cent. per annum, but he had consented
for the service of the line. (Hear, hear.) There was to raise the 200,0001. on a short mortgage at 4 per
one question which Mr. Hamilton had raised that was cent. in effect on account of the South-Eastern Company,
a very important one, and which deserved a more calm so as to bring down the interest which they had to pay
and dispassionate discussion than that gentleman had on the whole outlay of 800,0001. from 53/4 per cent., the
given to it, namely, the value of railway property and rate named in the contract, to 53/4 per cent., the rate
the changes and fluctuations which took place in it. which was now payable. If they referred to the
Now, it had been decided in the last session of p arlia- balance-sheet of the 31st December, 1852, which had
ment that railway legislation should henceforth be con- been duly audited by Messrs. Childe, Morgan, and
ducted upon a more comprehensive, and probably a Brown, as well as by Messrs. Quilter and Ball, they
more certain basis; and he thought that the great rail- would find that, after paying the whole expenses con-
way companies were much indebted to his right honour- netted with the Reading, Guildford, and Reigate line
able friend Mr. Cardwell, who once sat at that table, there was 34,4611. carried to the general capital ac-
for his exertions in this matter, and for the recom- count of the company.
mendation of the parliamentary committee with re- Mr. Alderman SALOMONS said that before the act of
spect to future legislation, that all plans of rail- amalgamation was passed, the accounts of the Reading,
way extension should be referred to one committee Guildford, and Reigate Company were subjected to an
of the House of Commons, which should determine audit by Messrs. Quitter and Co., such as no other
the principle on which such extensions should take company had undergone. He complained that in the
place. Another recommendation of that committee accounts of the present half-year there was an item of
which was based upon the principle of justice, would 6,000/. placed as though it was a loss on the Reading
prevent the enormous expense to railway companies of line, which it ought not to be, as it ought to be taken
vexatious Parliamentary contests, because it would fix from the 34,0005. in hand brought from the accounts of
upon persons bringing forward schemes, interfering the Reading to those of the South-Eastern Company.
with the interests of existing companies upon insufficient The CHAIRMAN explained that the 6,0001. being for
pleas, the expenses of both parties in the contest. (Hear.) rates, belonged to profit and loss, and had nothing to do
With regard to the assertion that an assembly of English- with capital. The line was opened, and they had resisted
men representing so large a body as the proprietors of the amount at which they had been rated, but now hav-
twelve millions of property, was liable to have its de- ing had to pay it, they brought it into the accounts. He
cisions affected by the presence of one or two of the did not know that they would have brought it all in the
servants of the company who were holders of their stock, one half-year, had it not been for the receipt of 5,0001.,
the thing was too ridiculous to merit a reply. (Hear, made as interest on the shares sold, also coming into the
hear). Again, Mr. Hamilton had thought proper to accounts this half-year, so that one nearly balanced the
speak contemptuously of the smallness of their dividend ; other. With regard to the expenditure in opposition to
but did he think he could increase it a single sixpence by the East Kent line, it was for the protection of their pro-
disparaging its amount ? Let him attend before the perty, and therefore he thought fairly chargeable to ca-
board, and make any practical suggestions which he pital, the more especially as they had succeeded in pre-
thought calculated to advance the interests of the com- venting that company getting running powers over the
pany, and the directors would be happy to consider whole of the South-Eastern lines, an advantage well
them, and make that reply which his recommendations worth the whole money. It was, however, quite an open
deserved—(hear, hear)—but these extravagant state- question, and if the shareholders wished to have a less
ments couldin no way add to the respect due to the hon. dividend than that which they had earned, they could
proprietor, and certainly could do no good to the pro- do so.
perty of the company. Mr. Hamilton accused the di- Mr. WILSON moved, as an amendment, that the report
rectors of heedlessly and fatuously running trains to be received, with the exception of that part authorising
Ramsgate and Margate, which were wholly unremune- the payment of the expenses of the opposition to the East
rative ; but if he would only turn to the printed accounts Kent line from capital.
he would find that the return derived from these trains Mr. HAMILTON seconded the amendment.
was not inadequate for the services rendered. And when Mr. GRAY seconded the original motion, and depre-
the hon. proprietor talked of running trains to Canter- cated the waste of time of the meeting caused by the
bury, and Ramsgate, and Margate exclusively, at ruin- discussion of irrelevant and personal topics. With re-
ously low rates, he must tell him that these observations Bard to the Reading, Guildford and Reigate lease, let
would have been more appropriate if they had been hon. gentlemen who objected to that as an unprofitable
made to those parties who had thought it worth their arrangement point out, if they could, how the company
while to get a bill to make a line from Strood to Canter- could honourably get rid of it. On the subject of the
bury. (Hear, hear.) With respect to the wine-glasses East Kent scheme, he wished, in the presence of Alder-
and washhand-basins supplied for the Lord Warden man Salomons, to say that if he had been in that gentle-
Hotel at Dover, to which reference had been made by man's place, he never would have promoted a bill like
Mr. Hamilton, he could only say that tenders and pat- that of the East Kent Company's, calculated, as it was,
terns had been advertised for by the company, and the to deteriorate the property of the South-Eastern Com-
directors made their selection of the articles at the spe- pany, and diminish its dividends. (Cheers.)
cified prices, without knowing the name of the firm Mr. MORGAN (an auditor) said he was sure the pro-
which was to supply them. The cacchinations of the perty of the company, if moderately managed, ought
honourable gentleman might be agreeable to himself, but never to pay a smaller dividend than it did at present ;
he (the chairman) was now speaking of honourable men, and he believed that the dividend for the current half-
whose conduct deserved the support of that meeting, and year would be 11s. or 12s. per share, or at the rate of
the respect of the honourable proprietor. (Cheers.) 51 per cent, on the present price of the shares. He
The transaction with Mr. Smith was not initiated, nor considered that the capital account of such a large con-
the purchase of the goods effected, until after the deci- cern could not be absolutely and entirely closed, but he
sion of the committee appointed to consider the question believed that they had already seen the end of all their
of the steam-boats had been delivered to the directors occasions for great outlays of capital; and 150,0001.
and the proprietors. He would now repeat, on the part would be the only further sum which could be brought
of himself and his colleagues, that they regretted that in to share the dividend. He had replied to Mr. Wil-
the accounts for the half-year did not present a more son when the company's shares stood at 121. 10s., at
favourable result ; but at the same time they believed which time that gentleman predicted they would go
that the sources of their traffic appeared to be inhausti- down as low as 6/.
ble. The expenditure to iwhich they had been obliged to Mr. WILSON totally denied that he had ever made
go under the pressure of public duty, and with the pre- such a prediction.
sent great demand for labour in all parts of the country, Mr. MORGAN :Itis in print.
was, in his opinion, not likely to be greatly exceeded ; Mr. WILSON still repudiated the assertion.
whilst the traffic would go on developing in the most Mr. SMALES (a director) said he distinctly remembered
satisfactory manner, and add to the prosperity of the having heard Mr. Wilson express his opinion that the
company, and increase their dividends. Looking at the shares would not be worth 51. or 6/. in the market.
accounts and the price of labour, he felt bound to tell (Hear, hear.) If Mr. Wilson continued in the opposi-
them that he did not think their expenditure could be tion he had hitherto offered them in Parliament, cats-
materially reduced, though he had great pleasure in ing them many thousand pounds of expense, he (Mr.
stating that their traffic with the Continent was very Smales) could only hope that Mr. Wilson would be
satisfactorily progressing—that between Folkestone and personally visited, under Mr. Cardwell's new arrange-
Boulogne having increased one-sixth in the six months meats, with the whole of the expense, and then it would
ending 30th of June last, as compared with the corre- have to come out of neither the company's capital nor ,
sponding six months of 1852 ; the number of passengers its revenue. (Cheers).
standing 21,381 against 18,618. The Continental traffic The amendment was then put to the sense of the meet-
for the six months, via Boulogne, Calais, Dieppe, ing, when twelve hands were held up in its favour.
Havre, Antwerp, Ostend, and Dunkirk, amounted for The original motion for adopting the report in its en-
the six months ending 30th June, 1853, to 84,652 pas- tirety was then carried by an overwhelmig majority.
sengers against 72,144 of the same period of 1852, A formal resolution was then passed declaring a divi-
showing an increase of 12,508, of which number 7,433 dead at the rate of Bs. per share in accordance with the
went through the south-eastern ports, exclusive of the terms of the report.
passengers by tne mail-packets between Dover and The CHAIRMAN then moved a resolution authorising
Ostend. Last year, at the same period, the total num- the directors to raise a sum not exceeding 500,0001. on
her
of passengers between Boulogne and Folkestone was debentures to be applied to the purchase of the Canter-
-27,309 ; whilst during the past six months it amounted bury and Whitstable Railway, and the purchase of the
to 31,060, showing an increase of 3,621 passengers, of steam-ships of the South-Eastern and Continental
which 2,063 came over the South-Eastern line. (Cheers.) Steam-packet Company.
The facilities of railway communicrtion with the Conti- Mr. RENSHAW seconded the motion.
neat were increasing, and he felt they had every reason Mr HAMILTON then proceeded to readanother written
to look forward to a fair increase in their traffic, and he speech., amidst the greatest confusion and uproar.
trusted also of their dividend. (Cheers.) Mr. SAINTSBURY again protested against such a prac-
Mr. JOSIAH WILSON said that the proprietors would tice as being totally irregular. Could they not treat the
see in the auditor's report a paragraph stating that a honourable gentleman's essays in the same way as they
sum of 2,566/., the expenses of the Parliamentar oppo- had dealt with the report, namely, agree to take them
sition to the East Kent schemes, had been placed to the as read. (Cheers and laughter.)
capital account, and which sum, the auditors thought, Mr. HAMILTON renewed his attempt to read his speech,
ought properly to pe sharged to revenue instead of capi- but was met with incessant interruptions and other
tal, on the ground that the opposition in question was marks of disapprobation, which threatened to protract
purely of a defensive character. Now he (Mr. Wilson) the proceedings indefinitely, the honourable gentleman
considered that it was the duty of the directors to bow declaring himself determined to persevere, in spite of the
to the decision of the auditors with regard to this 2,5661.; opposition of the meeting, until he had obtained
and indeed he could not see what was the use of having hearing.
auditors if the directors were to set aside their recom- The CHAIRMAN repeatedly interposed, and advised the
mendations. He wished to know if Messrs. Quilter and meeting to allow the hon. proprietor to finish all he had
Ball, the eminent accountants, who acted in conjunction to say, as being the shortest mode of getting through
with the company's auditors, had concurred with the the business.
auditors in thinking that this sum ought not to be set Mr. HAMILTON was at length allowed to conclude with
down to capital ? less frequent interruptions, the drift of his remarks being
Mr. MORGAN, one of the auditors, said that it was a complaint that the directors refused to allow the share-
not necessary that the auditors should have the concur- holders to inspect the register of the proprietors, which
rence of Messrs. Quilter and Ball, but they certainly he also contended ought to undergo an audit.
had their concurrence in this case as a matter of fact. The CHAIRMAN replied that the directors were in-
The auditors had stated their opinion as to the source strutted by counsel that no shareholder had a right to
from which this sum of 2,5661. should be paid, and it was inspect the register of the company, except with regart
for the proprietors to decide the question for them- to his own holding. A list of the shareholders' names
selves. The increase of 6d. to their dividend had been was published, with an asterisk against the name of every
derided because it was so small ; but, at least, that in- proprietor who held 600/, of stock,
and was eligible for
crease had been fairly earned, and the account of the the office of director.
company had been honestly laid before the proprietors. The resolution was carried unanimously, as was one
Mr. J. WILSON continued
—The chairman had spoken authorising the raising a sum not exceeding 40,0001. for
of his having been a member of the board for a period of carrying out the extension of the Reading, Guildford,
nine years ; but it was a singular fact that ever since he and Reigate line to the Great Western station.
had been connected with the company
confidenceitaffairssh
had The CHAIRMAN, in moving this resolution, said it was
been retrograding. There could
impossible to say exactly how much this extension would
company whilst one gentleman satbe noot
tlle head of the
ee
cost. The Great Western Company had opposed the
board with a prodigious amount of salary, and sustain- extension, but the act had been carried, subject, how-
ing the office of a managing director,
who directed the ever, to its bein left to the Board of Trade to deter-
board of directors, and left his colleagues without any mine in what manner the extension should be made.
They proposed to submit a very economical plan to the
power or control. (Hisses.)
Mr. RENSHAW, the deputy-chairman, said that he had I Great Western, and if that company did not approve of
answered the same assertion as this when it was made it, the matter must be referred to the Board of Trade.
by Mr. Wilson at the last meeting of the company, and It might be important to know that the traffic on the
that gentleman then expressed himself satisfied with his Reading, Guildford, and Reigate line was improving, it
explanation. (Hear, hear.) What Mr. Wilson had I having increased from 11,000/. in 1850, to 90,000/. in
just stated with regard to the chairman " directing the 1853. This extension would still further improve their
directors" was contrary to the fact. (Cheers.) I traffic, as it would enable passengers from the north and
Mr. JOSIAH WILSON continued. There were no ac- west of England readily to get on to the South-Eastern
counts before the proprietors showing that the expenda or Brighton lines.
ture on the Reading, Guilford, and 'Reigate Railway The question of the appointment of au auditor, in
had been examined and audited. He therefore, wished the place of Mr. Childe, now a director, was then
to know whether the sum of 600,000/. had not been ex- brought forward ; but it appearing that Sir Fitzroy
pended upon the railway when the contract was en- Kelly and Mr. Welsh had given it as their opinion that
tered into by the South-Eastern Company, and whether the appointment could only, in accordance with the acts