The Sun.
London, England, 1853-08-22 00:00:00

RAILWAY INTELLIGENCE.

GREAT NORTHERN.
The half-yearly meeting of this company was held on
Saturday;in the London Tavern ; Mr. E. Denison, M.P.,
chairman of the board of directors, presiding.
The directors' report, of which an abstract has already
appeared in The Sun, was taken as read.
The CHAIRMAN said that the report of the directors
entered at such great length into their proceedings
during the past six months, and had been so many days
in their hands, that it would be unnecessary for him to
make more than a few observations in moving its adop-
tion. First, with respect to the capital account. They
would have observed that during the last half-year they
had expended 387,994/., which was added to the capital
account, making a totallexpenditure of 9,958,4781. He
had made minute inquiry into every engagement which
they had. with the contractor of any description, and he
had every reason to believe—indeed he felt confident—
that their present resources would enable them to com-
ply with and perform every contract into which they had
entered, without calling upon the shareholders for any
additional capital. (Hear.) But while he said that, he
must repeat what he stated on a former occasion, that
it was possible they might be called upon to increase
their working stock, and therefore he kept that point in
reserve. The reason why they should undoubtedly want
a larger amount of working stock was, that the traffic
upon the line had increased, and he had no doubt would
continue to increase very materially. Another reason
was, that their carriages were so much preferred by the
public, that although their line extended only to York,
an immense number of their carriages ran through to
Edinburgh one day, returning to London the next.
It often happened that there were only a very few car-
riages at the station in London, and therefore it was
by no means improbable that the shareholders would
be called upon to increase the stock of carriages and
waggons ; but he was quite sure that if the only rea-
son for additional expenditure was the amount of
traffic upon the line, they would not grudge the money.
The directors had been compelled during the past
six months to lay out more money, in connection with
other departments, than ,perhaps some of them had anti-
cipated. • They had a very large potatoe trade from
Yorkshire and Lincolnshire, and as it would never
do to allow potatoes to remain in their waggons until t
they were disposed of, it had been found necessary o
build a warehouse for their reception at Sins's-cross, at
a cost of 4,0001. Without going further into details,
he had no hesitation in expressing his conviction that
all these extras, if he might use such a term, would pay
the shareholders for their outlay betterthfanthey almostdid n
any
t
other portion of their expenditure ; for
give their customers proper accommodationfor theiro
traffic, that traffic would be withdrawn from the Great
Northern Railway. He would leave this branch of the
subject by repeating that he did not believe it would be
necessary to increase their present resources in order to
enable them to fulfil their engagements ; but he could
not pledge himself with respect to extra stock. How-
ever, he would take care to stave off that question as
long as he possibly could, and until an additional
amount of capital was absolutely necessary, which, he
trusted, would not be the case for a long time to come.
With respect to the revenue, the receipts of the last
half-year were before them, and he hoped they would
be satisfactory. He had no hesitation in saying that
he considered them most satisfactory, and for this rea-
son—they exceeded in the aggregate the sum which was
received in the latter half of 1852. Now that was
more than could be said by any other railway in the
kingdom. The first six months of every year was
always the least lucrative ; and if they examined the
pubhshed accounts of other railways, they would find
that such was the case almost universally. It was so with
respect to the London and North-Western, the Mid-
land, the Great Western, and he 'believed with all the
railways, with the exception of the Lancashire and
Yorkshire. They would find, from the statement of
accounts in their hand, that the receipts of the last six
months amounted to 368,7661., as compared with
348,9431. in the latter half of 1852, showing an increase
of about 20,0001. Now there can be no doubt that, as
railways increased their aggregate mileage, their aggre-
gate receipts ought to increase very materially ; and
an important question for their consideration was whe-
ther the receipts per mile were now as good as they
were at this time last year, between 50 and 60 miles
having been in the meantime added to the railway.
The average receipts of the London and North-Wes-
tern in the first six months of 1852 were 801. per mile ;
in the latter half of the same year were 911. ; while
during the past six months they had been 851. The
average receipts of the Great Western in the first half
year of 1852 were 42/. ; in the latter half year they
were 571. ; and during the past six months they were
471. In the case of the Midland Company the figures
were for the first half of 1852, 431. ' • for the second half,
481. ; and for the past six months, 461. Now, their
own receipts in the latter half of 1852 averaged 501. per
mile, but in the past six months they averaged 521. per
mile, 60 miles having been added to the railway ; so
that, while in the case of all other railways the average
receipts of the last half year were less than those of the
last half of 1852, in their own the receipts of the past six
months exceeded those of the last half of 1852 by 21. per
mile. That was most satisfactory, and encouraged him
to hope that the traffic upon their line would go on in-
creasing. If they examined the accounts they would
find that, with respect to the passenger traffic, they re-
ceived less by 11,1471. during the past six months than
they did in the last half of 1852. During the same period
there was a falling off in the receipts for live stock to
the extent of 1,919/. ; but for merchandise they received
5,2131. more than in the last six months of 1852, and
for coals 27,6751. In short, their receipts were in his
opinion most satisfactory, and although the working
charges had increased in the last half-year, yet they had
equally increased upon railways, owing, in the first place
to the bad weather of last winter ; in the second place,
to the augmented price of materials of all descrip-
tions ; and in the third place, to the increase of wages.
In all the other railway accounts which he had seen,
the working charges had increased in a larger ratio
than on this line. Having disposed of the revenue and
the expenditure, and the working cost, he came to the
dividend. The dividend proposed was at the rate of 21
per cent. per annum. He understood some gentlemen
expected that it would have been higher, but he con-
fessed he never did, and for this reason—he remem-
bered that it was the first half of the year, and he
thought if they maintained during the first half-year as
good a dividend as they made in the latter half it was
quite as satisfactory as could be calculated upon. With
respect to their prospects, he should content himself by
saying they were exceedingly good. There was no rea-
son why he should say anything to depress the expecta-
tions of the shareholders, and there was no reason why
he should say much to exalt them, since their 1001.
stock could not be bought for less than 841. or 851., al-
though the interest was only at the rate of 21 per cent.,
and their shares sold for eight or ten years more pur-
chase in the market than the stock of any other railway.
That indication of public opinion bespoke great confi-
dence in their undertaking, and he hoped it would not
be disappointed. He did not think it would, believing
as he did that their prospects were exceedingly good, if
they did not launch out into heavy expenses for branch
lines.
.(Hear, hear.) But he would repeat, there was
no necessity to say anything on the subject, because the
intelligent gentlemen of the Stock Exchange could
weigh them up to a farthing. (Hear.) It seemed to be
the fashion with the chairmen of railways to allude to
the report of Mr. Cardwell's committee. That commit-
tee was appointed solely for the purpose of taking into
consideration the proposed amalgamation between the
London and North-Western and the Midland Compa-
nies, and as he was examined before the committee, it
would not become him to make allusions to what he
had said, which had been already published. (Hear,
hear.) But the report of the committee he thought he
Was justified in saying was exceedingly harmless, con-
sidering the time spent and the number of witnesses
examined, and if it had any effect it would have a good
effect on railway property. What would be the result
he did not pretend to know, but he thought it rather
!).eprootertctive than the contrary. A bill, founded on the
would be introduced in the next session of Parlia-
ment,
but it was impossible to state what its precise
provisions woeport would u
be
ld be. He believed the tendency of the
and productive of beneficial to their particular railway,
obtained
dantage to their property. (Hear,
hear.) They
by thepre
preference
deem their 5 per cent, redeemablePuwer leBtse3ekt,o
andre-
per-
when the properdrenocfe
time came, the directors would put it
in operation, but they
expedient
wait the.turn of the market.
The directors found it client to abandon a second
bill, which they were authorisedxe to promote in the pre-
sent session of Parliamen7tomriloehstaining power to con-
struct a branch line of
betweent the town of
Bedford and Sandy, a station upo'n
e
Coma
parliamentary contest
line, with a view of preventing Great Northern
with the Midland Railway Company, for a ling
madetrai arrange-
Hitchin and the town of Bedford any' between
meats by which a reasonable number ofrP
line to be constructed by the Midland Railwusyon the
Com-
pany from Leicester, by Bedford, to Hitelaina,-,3
the
Great Northern Railway, are to meet the Great Northern
trains, trains, and to convey the goods and passenger traffic to
and from the Great Northern line and Leicester, by
Bedford and Hitchin ; and in case of any dispute arising
as to the number of trains, or the nature and extent of
the accommodation afforded, or as to the rates and fares,
such dispute is to be decided by the Board of Trade.
The directors consider that this arrangement will
practically secure to the Great Northern the full
benefit of the contemplated Sandy and Bedford branch
without putting the proprietors to the cost of its
construction, and a clause, securing this object, is
inserted in the Midland Company's Act. They had
been in communication with the promoters of the
North Metropolitan Railway, and had promised every
accommodation at King's-cross for passengers proceed-
ing to or arriving from the city and western and southern
districts of the metropolis by that railway, which would
be beneficial to this company without any cost to the
shareholders. The unfortunate question with the South
Yorkshire Company remained in exactly the same state
ai;vaetn the last meeting, except that judgment had been
_1 in the Court of Exchequer. The learned judges,
however, differedal in opinion, and it amounted to no
judgment at
speculate onl.He did not think it worth while to
the directors whatiathe ultimate decision would be ; but
and it might so a determined to go to a higher court,
to a higher
enuriti. is)tilein that they might have to resort
as trustees for the sh The directors were only acting
satisfaction by the areholders, and they hoped to give
With respect to vacancies they took.' (Hear, hear.)
had no wish to make itesainelthe direction, the directors
fore recommended that prinrose corporation, and there-
director should cert • to the next
y retire, and meeting one
for re-election. The shareholder% not present himself
gentleman to, fill that vacancy,
liadbusliedes electing a
electing or not, as they thought fit, any P°o7. etrh of re-
directors who retired by rotation. To ascertain four
lifications of candidates, the directors recommendedqutlL-

adoption of a rule, requiring them to intimate their in-
tention within a given time to the secretary of the com-
pany. That was the system adopted by the East India
Company and other public bodies, and whilst it discour-
aged canvassing, it prevented the shareholders being
called on a sudden to vote for or against a man of whom
they knew nothing. He therefore thought it reasonable,
and open to no serious objection. (Hear, hear.) He
should conclude by 'simply moving that the report of the
directors be received and adopted.

Mr. WATERS expressed his satisfaction at the state of
the revenue account, but he wished to see the capital
account closed. (Hear, hear.) Their valuable capital
was 444,566/. ; shares in the South Yorkshire Company,
126,000/. ; and shares in the Royston, Hitchin, and
East Lincolnshire Company, 2,0001. or 3,000/. That
made a total, supposing they realised these shares, which
he strongly advised, believing they had no business to
be speculators in shares—(hear, hear)—of 573,0001. The
liabilities, on the other hand, were a mere nothing. The
payments for land would not exceed 50,0001. The cost
of finishing works would' be perhaps 30,0001., and for
the hotel, 25,0001. The total was, therefore, only
105,0001., and they had a balance for the increase of
their working stock of 340,0001., besides the amount of
the shares if realised. Their working stock at present
was about equal to that of the Great Western for the
same mileage. They had .30 engines more than that
Company, and with the exception of the North-Western
and the Midlands, he believed it was the largest rolling
stock in the kingdom. If they undertook any new
branches they could open a supplemental capital account,
but he hoped the present capital account would beim-
mediately closed, or at all events before the end of the
next half year. (Hear, hear.) The reason they did not
get a 3 per cent. dividend was, because they wasted their
revenue in improperly working the 123 miles of railway
which they unfortunately possessed in Lincolnshire.
He was afraid he was about to make an exposure which
would render them the laughing-stock of all other rail-
way proprietors. Between Boston and Lincoln they
ran nine passenger trains a day, and the traffic yielded
only 11/. or 12/. per mile. Between London and Liver-
pool the North-Western only ran eight trains a day.
From Peterborough to Boston this company ran nine
trains a day, and on the East Lincolnshire line six trains
a day. Such a proceeding was absurd, irrational, and
unjustifiable. There must be some outward pressure
which their traffic manager was unable to withstand,
and to strengthen his hands he should move the follow-
ing very mild amendment :—"That this meeting is of
opinion that more economy should be used in the work-
ing of the loop and East Lincolnshire lines." On the
East Anglian, which most resembled the Lincolnshire,
during the summer months they only ran three trains
between Ely and Lynn, and not more than four pas-
senger trains on any other portion of the line. They had
spent on the loop-line nearly 1,600,0001., for which they
not only did not get one penny return, but upon the 1
whole Lincolnshire traffic they lost 20,000/. a year. On
the East Lincolnshire guarantee they paid 40,0001. a
year, and they gained on the loop-line only 20,0001. a
year. Surely that enormous sacrifice ought to have
some influence on the directors, especially on those gen-
tlemen who were connected with that county. He was ,
very sorry to see by a paragraph in the report that the
subject of the Ambergate arrangement was brought up
again. If any guarantee were contemplated to that
most worthless undertaking, he could only say it would
be one of the most barefaced robberies and spoliations
that had ever occurred in the history of railway transac-
tions, bad as many of them had been. (Hear, hear.) The
Midland Company carried all the Nottingham traffic,
except the small traffic over the Ambergate line. When
the Hitchin line was made, Nottingham would be six
miles nearer by that line than by the Ambergate, and
the manufacturers would not be likely to divide their
favours. It was the policy of the great Northern Com-
pany to court in every way the Midland alliance. This
Hitchin and Leicester line would bring the traffic of
nearly 400 miles of railway over their line from Hitchin
to London, and the sooner they shook off these Amber-
gate gentlemen the better. He could not help observing
on the peculiar and anomalous position of Mr. Graham
Hutchison as one of their directors. That gentleman was
the holder of 17,000 shares, or one-fifth of the whole ca-
pital, in this worthless Ambergate line, but he held no-
thing but guarantee B shares in the Great Northern line.
As an Ambergate proprietor he risked a large amount
upon the contemplated alliance, but as a Great Northern
proprietor he risked nothing, whatever loss that alliance
might bring. The standard of honour was so lowered
in railway transactions that he was afraid almost to ask
the question—could Mr. Hutchison, as a man of honour,
remain one moment longer at the Great Northern
board ? They had escaped losing 25,0001. by the An-
glian; they had escaped losing as much by the East York-
shire ; and be hoped they would escape this Ambergate
" rig," the object being to saddle the Great Northern
with a very heavy loss. (Hear, hear.) If any steps
were taken, he would petition both houses of Parliament
to have Mr. G. Hutchinson examined, for he said the
only object of the Ambergate amalgamation was to put
a sum of money into Mr. Hutchison's pocket. He
should move a second resolution " That no agreement
be entered into with the Ambergate Company binding
the Great Northern to pay any preference or guaranteed
dividend whatever." (Hear, hear.)
Mr. LEACH, the solicitor of the company, stated, in
reply to a question, that the second amendment pro-
posed by Mr. Waters, with reference to the Ambergate
line, could not be discussed or decided upon at the pre-
sent meeting.
Mr. HUGHES said he would be glad to second the first
amendment after the report had been disposed of. He
trusted that the directors would not force the transac-
tion with regard to the Ambergate line upon the share-
holders, and he did not think they would be justified in
carrying the arrangement with the South Yorkshire Com-
pany into effect. If, as the chairman had stated. the
present capital was sufficient for the payment of all their
liabilities, and if the excess had been correctly repre-
sented by Mr. Waters, he could not conceive why they
should now be called upon for an additional sum of
250,000/. He objected to the proposed mode of electing
new directors.

Mr. HEBAPATH saw no necessity for any new working
stock. He found that the working stock which they
possessed at present had cost 1,068,000/., and was
larger in amount, in proportion to the traffic and mile-
-4e than that of the London and North-Western.
The CHAIRMAN, in reply, said he was afraid that al-
though Mr. Waters was nearly correct with respect to
the amount of assets, he was not so with regard to the
amount of their liabilities. There would probably be a
surplus of about 120,0001. or 130,000/. ; and not, as Mr.
Waters had stated, of between 300,0001. and 400,0001.
That gentleman had altogether omitted 30,0001. or
40,0001. for the Nottingham stations alone.
Mr. WATERS said he had obtained his information at
the office.

The CHAIRMAN did not agree with Mr. Waters that
all the shares they held in other companies ought to be
sold off. He had no objection to see the Royston and
Ilitchin shares disposed of, but he would most decidedly
object to selling the South Yorkshire shares, because
the possession of them enabled them to maintain their
connection with an undertaking which closely concerned
their interests. With respect to the remarks of Mr.
Herapath as to the working stock, perhaps the meeting
was not aware that they were the only railway company
in the kingdom who had built their own coal waggons—
a measure which had tended more than anything else
to the development of the coal traffic, but which at the
same time had increased the cost of their working stock
to the extent of 200,000/. He hoped, moreover, it would
be borne in mind that the Great Northern in its entirety
was not yet one year old. It was well known that a
new line must have a larger amount of working stock
than an old one ; but as the traffic increased, it would
not be necessary to increase the working stock in the
same ratio. He was very much disposed to think that
no company would be able really to close its capital ac-
count. He confessed he did not see why it should, be-
cause if the shareholders were appealed to from time to
time for their consent to any expenditure, and had power
to object to it, that was sufficient protection. The
closing of the capital account meant that no more money
was to be spent under any circumstances. Now, he took
leave to say that would be prejudicial to the interests of
the shareholders. Supposing the traffic manager wanted
a warehouse erected, and the capital account was closed,
it could not be done, and their trade would be lost for
want of necessary accommodation. It was almost idle
to talk of the capital account being closed, and he saw
that other chairmen said just the same thing. He could
put it in another point of view. If the directors could
not be trusted with the, expenditure of 10,0001. or
15,0001., they had better tell them so, and let them go
about their business. He would not be treated in
such a manner. With sincere respect he said, if he
could not be trusted, he would at once make his
bow. He worked for them more diligently than if it
had been his own concern—(cheers)—and if they pro-
posed to tie his hands upon such paltry matters as those
he would make his bow, and they might elect another
chairman. He did not say it by way of threat, but
as the only course open to a gentleman and a man of
honour.

Mr. HUGHES—No such suggestion as limiting the
Power of the directors was ever made.
The CHAIRMAN continued—With respect to the Am-
ber t
ga e question, since the report has been printed that
' abikllehpleb:ewhhnttrown out, and no amalgamation could
. out the consent of a large majority of the
shareholders'
Mr. Humans understood the amalgamation was already
The CHAIRMAN said
Mr. WATERS observed that sanctioned.
put at the last meet soofmt
eh e sort
resolutionha d beenhad done.heen
g, utnnoticed by him in consequenCe
of a quarrel that was go
ith respect
i'lc,, to which he should cer-
thTinhlye
ch
Ha
Av have
nm objected,N_
w
to Mr. Waters' observa-
holding shares in the
tilns on Mr. Graham Hutchis
Arnbergate line, he thoughtV
undeserved.
Hutchison took
YMlverliieth reference to
Although as holder of those share:
perfect
a rightdha dt o b e a
no part in the discussions at the ho'ardr.
walked
the amalgamation, and on one or two occasionsw
out of the way, Mr. Hutchison had a
shareholder in the Ambergate Company,
done a single thing which could justify the imputation
never
that he had a sinister object in holding those shares.
Mr. WATERS said the Great Northern proprietors did
not want neutrals, they wanted advocates. If Mr.
Hutchison advocated the tru:e interests of the proprie-
tors he would lose a, large fortune, and he could net
serve two interests antagonistic to one another.

In reply to a SHAREHOLDEM,
The CHAIRMAN said, according to his apprehension,
no one had behaved more honourably that Mr. Hutchi-
sion, and he was not all liable to some of the observa-
tions Mr. Waters had made vpon him. (Hear.) With
respect to the working of the East Lincolnshire traffic,
the subject was continually under the discussion of the
board. The old axiom, of -which Bianconi in Ireland
was a striking illustration, remained in full force, "that
coaches make passengers, and not passengers coaches.
~. "
they only put on the number of trains whia the

public appeared to want, they would induce the public
to travel.
Mr. WATERS said there could be no harm in his re-
solution.
The CHAIRMAN said it did not affect tle report at all,
and had better be put substantially afterwards.
This was assented to, and the notion for the adoption
of the report was carried unanimously.
The CHAIRMAN then read Mr. Waters' motion :
" That this meeting is of opinion that more economy
should be used in the working of the loop and East Lin-
colnshire lines." Those words did not convey an impu-
tation that sufficient economy had not hitherto been
practised, and that the general manager and the direc-
tors had, to a certain extent, neglected their duty, to
which he did not plead guilty. He thought the motion
was a vote of censure.

A PROPRIETOR said he was convinced there was not a
better general manager on any railway in the kingdom
than Mr. Seymour Clarke. (Hear, hear.)
The CHAIRMAN thought so too. The resolution only
raised the question which had been so often discussed—
as to the advantage or disadvantage of branch lines.
He did not say they paid per se like a main line, but,
what was much more important, these lines would have
been made by somebody, perhaps, in competition with
them.

Mr. WATERS wished they had been.
The CHAIRMAN would be very sorry, for the sake of
the proprietors, if they had. (Hear, hear.)
The resolution was then put, and negatived by about
three to one.

The CHAIRMAN read the resolutions passed at the last
meeting with respect to the Ambergate line, authorising
the directors to conclude an arrangement for the united
working of the traffic, and for tee eventual merging of
the Ambergate undertaking into the Great Northern
Company, and to take steps to give effect to the latter
part of the resolution. At present the Ambergate Com-
pany had no power to amalgamate with the Great
Northern with the Ambergate. An act of Parliament
would be necessary, and that could not be obtained with-
out the consent of large majorities of shareholders in
both companies.

The next resolution was also carried unanimously :
" That a dividend be and hereby is declared for the half-
year ended 30th June, 1853, as follows, viz.: at the rate
of 5 per cent. per annum upon the 5 per cent, redeem-
able preference stock of the company ; at the rate of 24
Per cent. per annum upon the original stock of the com-
pany ; at the rate of 5 per cent. per annum upon the B
stock, as guaranteed by the A stock ; and at the rate
of 44- per cent. per annum upon the amount paid to the
30th June last on the 44- per cent. redeemable preference
shares, being equivalent to is. 74-d. per share ; such
dividend, however, not to be paid until after the general
meeting in February, 1854."
Mr. HUGHES complained that the dividend was sus-
pended on the last description of stock, but was informed
that the last call would not be due until the 30th of
September, and until then the scrip certificates could
not be issued.

The CHAIRMAN proposed " That the directors be and
hereby are empowered to borrow the sum of 250,000/.,
authorised to be raised on mortgage by the Great North-
ern Railway Company's Capital Act, 1853," which was
also agreed to.
Mr. WATERS observed that since the last meeting the
Chairman had been put to considerable expense by an
action brought against him for libel. If it had been his
own case, he would have allowed it to have gone to a
jury, and he was quite sure Mr. Wilson would not have
obtained a verdict to carry costs. The chairman had
devoted a great, deal of time to the interests of the com-
pany ; the remuneration he received was small, and he,
therefore. proposed that the expense of Mr. Wilson's
action be paid out of the accruing revenue of the com-
pany. (Hear, hear.)
Mr. HUGHES would gladly second that motion, if the
legal advisers of the company said it could be done.
The CHAIRMAN said he could not allow any such pro-
position to be put, nor, if carried, could he allow the
money to be paid and made part of the expenditure of
the Great Northern Railway. It was entirely a per-
sonal question between him and Mr. Wilson. He had
used language stronger than the law would justify, and
it was only fair he should pay the lawyer's bill. He
had given instructions to deal with it in that way, and
he could not, under any circumstances, allow the ex-
penditure of the Great Northern Railway to be tainted
by such a proposal. (Cheers.)
Mr. WATERS called attention to the smallness of their
subscription to the Royal Free Hospital, being only ten
guineas a year, whilst their capital was ten millions.
He hoped it would be increased to fifty guineas a year.
The CHAIRMAN said they had been applied to from
various quarters, and he thought 1001. a year for such
purposes not unreasonable. He should therefore at the
next meeting bring forward a proposal of that kind in
connection with another subject on which he was sure
he might depend on their consideration—the providing
a place of worship for their servants at Doncaster. The
church at Doncaster had recently been burnt down, and
although he had no doubt of its being soon rebuilt, as
they had by their works caused an accession to the po-
pulation of some 3,000 or 4,000 persons, he trusted they
would agree on some plan for providing a place of wor-
ship for them. (Hear, hear.)
Thanks were then voted to the chairman by acclama-
tion, and the meeting separated.