The Sun.
London, England, 1853-01-29 00:00:00

LONDON, SATURDAY EVENING, JANUARY 29, 1853.

RAILWAY INTELLIGZNCE.

LONDON, BRIGHTON, AND SOUTH COAST.
The half-yearly. meeting of this company waeleld yes-
WI-day at the Bridge-house Hotel, London-bridge, Mr.
S. Laing, M.P., in the chairi
Mr. SLIGHT, the secretary, ivd the advertisement
convening the meeting, after 41.0.11 the report, an a'o-
stromt of which has -appeared -11-the Sun, was taken as
read. -
The CHAIRMAN, in moving the adoption of the report,
said, he thought. it was.very .satletctory to them all to
see that the diminution of traffic had been so trifling as
compared with the Great Exhibition year of 1851. The
&nip- Off of traffic had only been about 3,4001 which
was l'esithan the loss that had been occasioned at Hast-
ings in consequence of the opening of the line from Tun-
bridge-wells to that place. Irrespective of the loss at
Hastings, the elasticity of the traffic on the line had
been maintainedin 1852, and there was every prospect
at present of the increase being not only maintained
but extended ; for the traffic at present was going on
in the most satisfactory manner in every department.
On the other hand, no doubt it had been a source of
disappointment to many that, with the traffic nearly
equal to that of 1851, they had not been able to recom-
mend the same rate of dividend. The reasons of that
lay in the increased expenditure, of renewals in keeping
up the stock and road, and the large amount which they
had been unluckily compelled .to pay for compensations
during the year. The miscellaneous expense in the
coaching department was made up principally of com-
pensations ; they had to pay in the last half-year no.less
than 8,0601. and in the previous half-year 4,4001.,
making a charge of 12,4601. for the year 1852. Now,
with regard to these compensatiims, he used the term

from directors and shareholders taking a too sanguine
view of things, and not having the moral courage to
look them fairly in the face. (Hear, hear.) The addi-
tional Vraffic in the year 1852, excluding cartage, was,
compared with that of 1848, in round numbers, 120,000/.
Mit since 1848' several competing lines had been opened,
which; if they had simply stood still, would have mate-
rially reduced their traffic. The South-Eastern line to
Hastings had taken away 20,000/. or 30,0001. a-year
from the receipts which they enjoyed in 1848. The
South-Western Company had opened a line into Ports-
mouth, which had affected their receipts. The opening
of the Reading, Guildford, and Reigate line had affected
their receipts, and in the whole certainly 30,0001. or
40,0001. a-year I;ad been taken away from them" since
1848 by the opening of competing lines. Notwithstand-
ing this they had a positive increase. of 120,0001.
alear ; so that the virtual increase in that period had
been upwards of 150,0001. a-year, or 33 per cent. on the
amount of the traffic in 1848. This increase in the
traffic had arisen from a vast amount of additional work.
The work done, measured by the number of miles
run, had increased in round numbers from 1,100,090, to
1,600,000 miles per annum, an increase pf about 50
per cent. The number of passengers had increased
from 2,500,000 to 3,500,000. The amount of periodical
tickets had increased from 10,000 to 24,000. The ex-
pence incurred by that process of cultivating the traffic
had increased from 187,0001. to 239,0001., or 52,0001.
This was an increase of 35 per cent. upon the expenses,
and their outlay in the capital account for permanent
expenditure of one sort or other had been 200,000/. more
than it would have been if they had stood still at
the point at which they were in 1848: In 1848
and 1849, when they found the property in a state of
great depreision„ it became absolutely necessary for the
directors to decide between the course of policy they
should adopt ; either they must make their principle ob-
ject keeping down the expenditure, standing still; afford-
ing no more accommodation, and taking the natural in-

site policy of pushing and encouraging the traffic on the
line to the utmost extent, and make the develpment
of the traffic their principal object. They adopted the
latter policy, and increased their expenditure 60,0001..
and gained an increase of 120,0001., and made up a loss
of 30,0001. taken away by competing lines, so that on
the whole they had gained 150,0001. in revenue by an
increase of 60,0001. in the annual expediture, of which
8,000/. consisted of interest on additional outlay on
capital account. The increase came from three sources
—the London and Brighton proper, the Croydon traffic,
and the goods traffic. They had spared no expense to
accommodate this traffic, and the result had been that
the Brighton traffic had increased from 119,1021. to
157,1961., being a gain of 38,0001.; the Croydon traffic
from 51,471/. to 71,217/. being an increase of 20,746.;
while the goods traffic had increased from 70,0331. to
127,4631., or an increase of 57,0001.; making a total in-
crease of 122,2631., which was more than the total in-
crease of the whole traffic. Nothwithstanding their
increased expenditure, they had increased their dividend,
and raised the value of their shares from a heavy discount
to considerably above par. The Croydon traffic had
now reached to a point which made it difficult to acco-
modate the traffic with safety and convenience on the
present line of rails. They could not continue to develope
that traffic without a fourth line of rails from London-
bridge to the Croydon junction. He then adverted •to
the increase in the estimate for the works from 200,0001.
to 250,0001., and stated that there was a prospect of
very considerable increase of traffic during the present
year, and if the increase should amount to 40,0001., he
expected that 20,0001. of it would be profit. After some
observations with regard to the probable reduction of
interest on some of their loans from 5 to 3t per cent.,
the purchase of land at the London-bridge station for
20,0001., and other matters, he concluded by stating
that he would retire from his position of managing di-
rector, and resign the salary of 1,500/. a-year, in conse-
quence of the state of his health and other matters lately
rendering it imposstble for him to devote so much time
to their affairs as he had promised on taking office, but,
at the same time, he would do his utmost to promote
their interests while he retained his seat at the board.
He then moved the adoption of the report and state
ment of accounts.
Mr. SCHUSTER seconded the motion.
In reply to a question,
The CHAIRMAN stated, that the company would not
have to pay more for the branch lines to East Grinstead
and Bognor than 2,000/. and 1,200/. per annum. Any
excess of cost above the estimates would be at the risk
of the persons making the lines; the Brighton Company
would have only to pay the stipulated rent.
A PROPRIETOR did not believe that the passenger
traffic on the East Grinstead branch would exceed 6571.
per annum, which would be all they would have towards
the 2,0001. a year.
Mr. HERAPATH said, it appeared from the census that
East Grinstead contained 3,600 inhabitants, and that the
whole male population was about 700. The proposed
rent would be 2,0001. a year, and the working expenses
of the line would not be less than 3,500/. ; they would
have to receive on that branch 5,500/. per annum on the
seven,miles before they would get one penny by the
transaction. That sum would amount to Si. per man in
East Grinstead, and he thought it very unlikely that the
inhabitants could afford to pay that sum for traffic on
the line. It was all very well for the contractors to get
a guarantee on the outlay, but the bargain could not be
profitable for the Brighton shareholders. With regard
to the Bognor line, the rent and working expenses would
amount to 4,2001. per annum, or at the rate of 421. per
man. If they went on making branch lines in that way
the effect would be to reduce the dividend.

Mr. SCHUSTER said it was quite a mistake to suppose
the traffic was so limited, because a great many persons
visited Bognor as a watering-place.
Mr. HERAPATH complained of the increase in the ex-
penditure, and that it did not accord with the estimate
made by the chairman in 1849. At that time he esti-
mated that for every addition to the gross traffic receipts
the additional working expenses would amount to only
25 per cent. of the increased traffic. The increase in the
receipts had been 81,0001., and, instead of the additional
expenses being 20,0001., as estimated, they were 53,0001.
He also perceived that the receipts for the past year were
4,0001. less than those of the preceeding year, and the
expenses were 10,0001. more. He understood that this
had been caused by laying aside old engines and using a
number of new engines two or three years ago, and they
now required heavy repairs. This made the expenses
appear light at first, but they were now becoming
heavier.

Mr. SCHUSTER believed they had now as many engines
at work on the line as ever they had, and they were
always being renewed.
Mr. HERAPATH said, if that were the case, the Brighton
company had a larger number of engines at work on
their line than any other company, for they averaged
three to every two miles. He wished to know how
many engines they had now at work on the line I
The CHAIRMAN said they had about 10 engines not
in use, and that they also had a reserve, and on an ave-
rage for every engine in steam they had one in the shop
undergoing repairs.
Mr. MAUDESLAY said he was told that the outlay for
the accommodation of the Crystal Palace Company
would amount to 150,0001., instead of 75,000/., as for-
merlythoughtto obtain
the
correct
estimate to
have estakentim aevt eedry. precautionlie
of the outlay before coming to the shareholders for any
specific sum. He thought the Brighton Company should
be entitled to 4 per cent, on the whole of their outlay for
the Crystal Palace Company before that company paid
any of their expenses.
Mr. J. WILSON moved an amendment, to the effect
that the report be received and approved, except so much
of it as referred to leasing the East Grinstead and Bognor
lines, which the shareholders believed to be undesirable.
Mr.i WOOD seconded the motion.
Admiral KELLY said, all they had heard with respect
to the population and produce of the branches was totally
erroneous. He was well acquainted with the district
through which the line was intended to pass, and there
were several populous places in the vicinity that required
accommodation. The line could be extended to Tun-
bridge-Wells and other places, and there could be no
doubt a large traffic would come on the line, and he
hoped the proprietors would pause before they supported
the amendment.
Mr. BELL thought when they found the landlords of
the district coming forward to have the line made, and
willing not only to sell their land At its agricultural
value, but to provide, the money to construct the line,
they ought to give them every assistance in their power.
Mr. Alderman WILSON believed there was scarcely a
branch line anywhere that paid, and it was well known
that branch lines had been the ruin of railway companies.
He thought it would be better for the company to put
up to auction all the branch lines they had than to con-
tinue to work them. If they had kept to the main line
they would have dividends of 20 per cent. at the present
period. He then alluded to the purchase of the shares
in the Chichester branch line, by which the former direc-
tors made a large sum of money by amalgamating with
the Brighton Company. He regretted that the chair-
man was about to retire and leave them the legacy of an
unclosed capital account. It appeared now, instead of
closing the capital account at 7,200,0001., they were to
add some 400,000/. to it, in order to devlope the traffic
of the district. This was the time for the proprietors to
say "No" to the proposition. and thus save endless ex-
pense. (Hear, hear.) It was a serious matter, after 17
years' experience and the outlay of 7,300,000/., that they
could only obtain a dividend of 41. 4s. per cent.
The CHAIRMAN then replied to the several observations
made by the proprietors, in the course of which he de-
fended the policy pursued by the directors, which was to
go on extending accommodation to the public and the
district through which their line passed, and the result
would be, in every case, increased traffic. With regard
to his estimate of the increased traffic and expenditure,
they would find that the expenses amounted, for 1852,
to 230,0001., but the actual amount of expenses were
239,0001., which included 12,0001. paid for compensa-
tion for accidents on the line, which he did not antici-
pate at the time of making the estimate.
The amendment proposed by Mr. J. Wilson was then
put to the meeting, when there appeared 47 in favour of
it and 50 against it. The amendment was consequently
lost.
The report was then adopted, and a dividend at the
rate of 21. 12s. per cent. for the half-year was declared.
The retiring directors, Messrs. Lushington, Nix, and