The Sun.
London, England, 1854-02-17 00:00:00

BAIL WAY INTELLIGENCE.

LONDON AND SOUTH-WESTERN.
The half-yearly meeting of this company was held yester-
day at 34, York-road, Lambeth. Mr. W. J. Chaplin, M.P.,
in the chair.
The CHAIRMAN on taking his seat was very much applauded.
He remarked that the board formed a very limited number on
the present occasion, and that they were in a state of transi-
tion. He thought it right to mention that he occupied the
chair on the present occasion by the unanimous vote of his
colleagues, Mr. Seijeant Gaselee having proposed his election
to the chair, seconded by Mr. Mortimer. These gentlemen
had been two years at the board, and they had had opportu-
nities of observing how the affairs of the company were con-
ducted. He mentioned this, as he thought it would be as
satisfactory to the proprietors as it was gratifying to him-
self. (Hear.)
Mr. L. Caomine, the secretary, read the notice convening
the meeting and the minutes of previous meetings, which were
confirmed.
The report, an abstract of which has appeared in The Sun,
was taken as read.

Tile CHAIRMAN, in moving the adoption of the report, said
it was usual in doing so to make some observations on the
state of the company's affairs. He would have to submit in
the course of their proceedings resolutions declaring a dividend
and for the election of the new directors, and the appoint-
ment of auditors. He trusted on that occasion they would
proceed with the business of the day iu a more harmonious
manner than usual. He believed that Sir W. Heathcote would
preside over them in future, which would enable him (the chair-
man) to retire from the chair in a satisfactory manner. It was
generally understood that the chairman should say something
with regard to their progress. (Hear.) * He hoped that the
state of their affairs was satisfactory to the proprietors. They
had had an increase in their traffic during the past half-year of
53,2951., of which 34,7331. was from passengers and 15,9361.
from goods. This increase extended in a fair proportion over
the whole system of their lines, and in almost every item.
The only excpktioji with regard to that increase was Salis-
bury, which was caused by the extension of other lines.
There was also an increase in their expenses amounting to
23,2141. as compared with the corresponding period of the
preceding year. A great deal of the increase in the expenses

was caused by the traffic to Chobbant, having been obliged to

run a great number of light trains. This caused an increase
in the mileage of the trains as compared with 1852, and when
they calculated that every mile run be the trains had cost
the company 2s. 71d. per mile, it would account for about
17,2661. of the sum involved in the increased expenditure.
The advance in the price of coke and other articles would
account for the remainder of the 23,2141. In the management
of the locomotive department they were singularly fortunate
in having a man of great ability devoted to their interests.
They would find from the accounts that the expense of that
department did not exceed 86d. per mile per train, which
would bear comparison with all the railways south of London.
They had got a share of the emigrant traffic to Southampton,
for out of 10,040 emigrants who had left that port, 5,050
were conveyed over their railway from London. By the
opening of the North and South-Western Junction line
they had occurred some loss in respect to the gua-
rantee, but they have no further loss on that head.
What with the inconvenience to the London and
North-Western Company at the junction, and to the
London and South-Westeru not having a siding pre-
pared for the traffic of the junction lino, they could not
agree as to the working of it one way or other. There was
some difficulty in disturbing the course of trade when once
established. There would beno further difficulty with regard
to the working of that line, for in the month of January,
1854, 4,196 tons of coal were conveyed over that short line,
and the trade was increasing. They had at present 70 trucks
a day passing over it, so there was no doubt that the gua-
rantee of 2,5001. per annum by the South Western and Lon-
don and North-Western Company would be fully realised. He
had to call their attention to the want of working plant on
their line. They would require additional working stock for
the Alton branch, 91 miles in length, and for running over
the North and South-Western Junction line. The line from
Basingstoke to Andover, 18 miles in length, would be opened
in May, so that they would then have to work 31 miles of
additional railway. He found that in 1849 the gross traffic
receipts on their line amounted to 531,019/., and that in Feb.
1850, 570,1601. had been expended on working stock. Now,
their traffic amounted to 700,8811. for the past year, being
an increase of 164,726/. and they would have to work 31 miles
of additional railway, which could not be done without an
increase in the working stock. They had adopted the plan of
a reserve fund, towards which they paid 5,0001. each half-
year out of the revenue, but, as they required more than the
50,0 01. for which that sum was set aside each half-year for a
period of five years, they must provide for it in some
other way, or they must extend that period. They would now
require a vote from the proprietors of 50,0001. to provide ad-
ditional stock for the purpose he had stated. They had lately
carried on a new trade in coal from the west of England over
their line from Basingstoke to Southampton, and they con-
veyed at present about 700 or 800 tons a-week to the latter
place. More waggons would be required to accommodate the
coal traffic. He then adverted to the importance of South-
ampton to their railway, and particularly the docks, from
which there were 52 departures and arrivals every month of
large steamers belonging to the West India Mail, the Penin-
sular and Oriental, the Screw, and other steam navigation
companies. During a portion of the past half-year the Screw
Steam-packet Company had brought over the railway 5,000
tons of goods. It had been observed, that if they could afford
these companies greater facilities in London for bonding their
goods, an additional amount of traffic would be sent over the
railway. They were assured that, by affording adequate ac-
commodation at their station at Nine Elms, near, the water-
side, it would be remunerative to the company, and the pub-
lic would gladly pay for the accommodation_ IfLiblaeteetvere
paid for that outlay per se it would be a very desirable mode
of increasing their business. It would require an outlay of about
60,000/. to provide warehouses and bond-stores on their Bel-
mont property adjoining their present wharf at Nine Elms. He
did not intend to ask them for the money then, as theywere about
to elect seven new directors, who would have that matter to
consider, and he hoped they would bring vigorous minds to
bear upon the subject. By extending their shipping accom-
modation fronting the river Thames and providing ware,
houses and machinery they would be enabled to bring cone
and flour by railway, instead of allowing that traffic, as at
present, to be conveyed by coasters round the coast to Lon-
don. (Hear.) The Southampton Dock had been very useful
in developing their traffic, and it had been suggested that the
railway company should lend them 50,0001. at a reasonable
rate of interest to carry on their works for the accommoda-
tion of the increasing traffic at the port of Southampton, and
that would be far better for the railway company than
dabbling in the construction of docks themselves. The
dividends of the dock company were not sufficient to en-
courage the dock proprietors to go forward in advancing
money, and therefore it was desirable the railway company
should help them. He wished to say one word with regard
to the old direction : he must remark that, although he had
not agreed in the policy adopted, he must Say in favour of
his colleagues, that when he (the chairman) had proposed
certain things to them they had met him by saying that
they must be directed by the proprietors, and that was one
reason why he had differed from his colleagues to some
extent. Now, they were all aware of his views with regard
to the extensions to the west of England, but he did not
then mean to reiterate one syllable ou the subject. With
regard to the course some of his colleagues 'sad taken, it must
be remembered they had acted in accordance with the wishes
of the proprietors, and under their control. He thought they
had not been fairly treated ; in fact, he thought that the pro-
prietors must feel that they had not treated them fairly, and
that they had not been justified in their conduct towards the
directors, who had acted faithfully according to the instruc-
tions given them by the shareholders. He deeply regretted
their retirement from the board, and he believed his col-
leagues did also. The South-Western had never been a first-
class railway, and at the time he (the Chairman) had joined it
they had to raise 400,0001., by issuing stock for 800,000/., to
complete the main line and Gosport branch. Passing on from
that, he found that they had paid dividends to the original
shareholders up to the present moment at the average rate of
Si. Ds. 6d. per cent. per annum. (Mr. Dickenson—" A great
deal of it was out of capital.") They had paid what he had
stated in addition to the proportion of 400,0001. which was
sacrificed and taken up by those shareholders who raised the
requisite sum to complete the line. But, exclusive of that
bonus, they had paid 5 per cent. from the beginning, and, if
they were not now a first-class company, they were approxi-
mating to it The present dividend was at the rate of 5
per cent. per annum, and it was honestly and fairly earned,
and he thought, therefore, that the old directors were en-
titled to their thanks and confidence. He would ask them
not to pledge their now directors to any particular line of
conduct, .and before they were" elected he would ask the new
directors not to pledge themselveS to the shareholders ; as
there were so many fresh circumstances to be taken into ac-
count, they would, if they did so, prejudice their-position in
all future negotiations. They had heard a great deal of estab-
lishing amicable relations with all the neighbouring companies,
but he wished to know with whom they were at war ? They
had traffic in connection with the London and North-Western;
they had an interchange of traffic with the Great Western at
Basingstoke, they had amicable arrangements with the Lon-
don, Brighton, and South Coast Railway at Portsmouth, and
also with the South-Eastern Company at Guildford. He asked
them with whom were they at war ? He advised them to
strengthen their position, and place confidence in their direc-
tors, At present, from the effect of the late proceedings, hav-
ing neither chairman nor deputy-chairman to appeal to, the
heads of departments and officers of the company were placed
in a most disagreeable position, not knowing to whom they
were to look or who were to be their directors. The sooner
there was an end to that state of things the better. There
was not that confidence existing in the concern that ought to
be, and ho was only surprised that things should have gone
en so well as they had. He concluded with moving the adop-
tion of the report and statement of accounts.
Mr. PENNY, of Leeds, fully concurred in all that had been
stated by the chairman. He considered that, under the cir-
cumstances, the report was very satisfactory, and that, being
in a state Of peace, was the right course to. pursue. He hoped
they would not oppose the Salisbury and Yeovil project in
Parliament which, if granted, would complete their western
extension without calling upon the proprietors of the com-
pany to spend any money.
Mr. HELPS was of opinion that the cost of working stock
required to carry new traffic should be charged to capital, but
taat required for the development of existing traffic should be
charged to revenue.
Mr. DICKENSON said he had considerable objections to va-
rious items in the accounts. He thought the directors who
had resigned had acted very hastily, and he regretted their
retirement. Their loss all at once from the board was a very
serious evil to the company. What they wanted was com-
mercial men capable of managing a great trade and a great
manufactory. For, as ho had stated in a letter to the Times,
the company were great carriers, and they had a great deal to
do in the, manufacture of engines and carriages, and they
wanted men iu the direction capable of directing and managing
these branches of trade. He perceived from 'the summary
balance-sheet that 48,0351. was put down as assets under • the
head of reserve account plant, and 25,684/ reserve account
stations and. sidings, making together 7'3,7191., Which was not
au asset, but an expenditure ; and he found under the same
heads in the aecothits for the corresponding period ending De- -
Comber, 1852, that the amount then expended was 28,0000,
making a difference of 50,0001., which ought to have been
paid out of revenue, and if deducted would have reduced the
present dividend at least half per cent. He thought there
was something seriously wrong in the statement of accounts.
Wore it not for the extensions they would have a-dividend of.
8 per cent., but if they had paid a fair dividend on the pre-
sent occasion they would not have more than 4 per cent. He
cautioned them to take care of what they were about with
extensions, as they 'must end in the destruction of their divi-
dend.

Mr. Chop, ono of the auditors) explained some of the items