The Sun.
London, England, 1854-09-02 00:00:00

!expenditure. In all the arrangements effected they have
I had efficiency and responsibility, as well as economy, in
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being
meeting by the board, as formerly con-
-as to raise funds wherewith to pay it, the
earned having been absorbed, and no pro-
had to raise funds at a moment of almost unprecedented
pressure on the money market, strongly marks the
habitually compelled to anticipate, for its current ex-
penses, the use of its legitimate profits, and to rely on
external resources to pay its proprietary their fairly
earned dividends ; and this danger it will be one
of the earliest tasks of the board effectually to re-
move. In March, the embarrassment which the re-
constructed board inherited was, moreover, aggravated
by the rapidly approaching maturity of other very large
liabilities for which no provision had been made. The
borrowing powers of the company, reaching to 2,465,3751.,
had been used to within 17,8501. of that amount, and
capital account was overdrawn by the sum of 192,578/.
lls. ld. The task of providing funds was not therefore
I light or easy ; it was however acccomplished, mainly
through the liberality of the company's bankers, in time
to meet the payment of the dividend on the day fixed,
and to discharge .the other liabilities as they fell due.
But your directors feel it au especial duty frankly to
tell the proprietary that, though the general resources of
the company are sound, its finances will continue for
some time to require most anxious and careful atten-
tion. A number of the bridges on the line, especially
those constructed of timber, require considerable repairs,
or to be more substantially built ; and some of the sta-
tions, having been only temporary erections, should be
rebuilt of more durable materials. For these renewals,
and the deterioration contingent upon many years' con-
stant use, there is no fund ; and it is clear that such
works as aro to be rebuilt more substantially will have
to be provided for partially out of capital. Your direc-
tors cannot, thereforb, allow the first opportunity to pass
without communicating these facts to you, repeating,
however, that there is nothing in the pecuniary position
of the company that may not be overcome with care,
attention, and economy, aided by your support and con-
fidence.

At the special general meeting held on-the 15th Sep-
tember last, the proprietors authorised the raising of
500,000/., under the provisions of the South-Eastern
Railway, Canterbury and Whitstable and Steam Packets
Act, 1853. Of this sum 200,000/. was to be appropriated
to the purchase of the Canterbury and Whitstable Rail-
way, and to the purchase of the steam-boats. 300,0001.
was authorised for the general purposes of the company,
and to be appropriated as follows :-70,000/. for works
in progress, 31st January, 1853 ; 230,000/. for sundry
works and buildings, additional locomotive engines, pas-
senger carriages, waggons, trucks, &c., which were then
contemplated as necessary for the traffic. The purchase
of the Canterbury and Whitstable Railway and steam-
boats have been completed. Of the sum of 300,0001.
the following amounts have been expended up to the 31st
July last :—For engineering works, rolling stock, and
sundries included in estimates of June, 1853, 192,401/.
13s. 10d. ; for sundry works in excess of above esti-
mate, 40,082/. 4s. 3d. ; total, 232,483/. 18s. ld. ; and
the balance has been appropriated towards reducing the
excess of expenditure on capital account.
In the engineer's department, the expenditure under
certain heads has been in excess of the estimate made in
1853, and works which were then contemplated, and
which are still required to be executed, have not been
commenced.

The amount of 251,669/., estimated as the value of
surplus lands, is Only calculated to realise, in addition
to 20,501/. already received, a further sum of about
100,000/., inasmuch as your directors are of opinion that
certain portions valued at about 118,000/., and which
were included in the property available for sale, should
be retained ; so that, in effect, provision must now be
made for the deficiency arising from the sale of surplus
lands, as well as for the engineering works and rolling
stock already estimated, but for which there is no avail-
able fund.

Among the first duties which the newly-constituted
board undertook was the examination into the assets
and liabilities of the company, with the view of deter-
mining how far the former could be made immediately
available. The result showed the liabilities in March
last were, as nearly as could be estimated, 218,000/.;
and that the assets from all sources, some of which can-
not be realised for a considerable period, amounted to
130,0001., leaving a balance of 88,0001. (treating the
surplus lands as an asset to the extent of 100,0001. only,
and not of 251,6691., as has been explained above) un-
provided for. In addition, no provision was left for the
purchase of land at the London Terminus, which the
company were authorised by an act of session 1853, to
acquire for the enlargement of the stations, the powers
of which expired on the 4th of August, 1854. Your
directors have therefore turned their careful attention to
the financial position of the company, to the various lia-
bilities for which immediate provision should be made,
to the condition of the works and buildings, and to the
rolling stock available for the increasing traffic ; and
they have had estimates of the requirements which will
arise during periods extending to five years.
The following is a statement of the requirements of
the company :—Balance of capital account overdrawn
31st July, 1854, 163,6271. 14s. 6d. ; for works which
have been ordered and others which will be required
within twelve months, viz., stables and cattle docks at
the Bricklayers' Arms, viaducts and bridges, custom-
house at Folkestone, foundry, timber-shed, and addi-
tional shops at Ashford, and new roads at Bermondsey,
coke ovens at Strood, &c., 41,7151.; land at the London
terminus, 30,0001.; new carriages contracted for and in
progress at the company's works, 35,905/.; contingen-
cies, 10,5001.; in all, 117,6231.; making, with the over-
drawn balance aforesaid, a tota of 281,250/. 14s. 6d.
Then further, for works to extend over a period of
three years, from July 31, 1854, viz.: Various engi-
neering works authorised, but not commenced ; four
new locomotive engines, and the difference chargeable
to capital for replacing eight old engines with a superior
class ; further stock of carriages, vans, and waggons ;
two additional steam vessels ; Margate, Folkestone,
and New Cross stations and waiting-rooms; arching at
London station ; enlarging at various stations, addi-
tional goods sheds, &c., 170,416/.; and for works to be
completed within five years, viz., rebuilding Red Hill,
Tunbridge, and Ashford stations ;'London station ; im-
provement to stations generally ; works, Angerstein
branch ; four new engines, and replacing old engines ;
additional carriages and trucks, 138,9931. These two
[sums with the preceding total, amount to 590,659/. 14s.
6d.; less, surplus lands, estimated at 100,000/.-
490,699/. 14s. 6d.
In order, therefore, to put the finances of the com-
pany upon a permanently solid basis, to complete the
various works which are now and will shortly be re-
quired, and to provide the necessary plant for the ex-
tension of the company's business, your directors pro-
pose, with the sanction of the proprietors, to apply to
Parliament in the next session for power to raise an
amount not exceeding 5.00,000/., in such a manner as
shall appear to them least burdensorneto the revenue of the
company. The directors felt it their duty to withdraw
the bill introduced into Parliament last session for mak-

ing a branch line to Bromley. (The reasons of this re-
solution are stated at some length in the report.) The
directors will be no parties to a reckless expenditure of
your money in Parliamentary contests. _Large sums have
already been lavished in promoting losing branches and

lines, entailing a heavy -annual reduction of your divi-
dends, and your Parliamentary and law expenses for nine
years, from 1545 to 1553, amounting to 479,711/. 7s.
11d., averaging the enormous suns of 53,3011. ss. 3d.
per annum, exclusive of the costs of conveyance of land
which are merged in the land accounts. The directors
are of opinion that a stop must be put to this system if
your dividends are to be increased or even maintained.
Should your traffic be menaced by competing schemes in
Mid-Kent or elsewhere, your most prudent and legiti-
mate defence will be found in continuing fully to meet
the public convenience, by which means you will not
only preserve, but enlarge your traffic. Looking, how-
ever, to the present state of the money market, and to
the general depressed condition of railway property,
mainly caused by premature extensions, your directors
hope for some abatement of that reckless and fatal system
by which railway projectors thrive on the credulity of
the public.
In order to afford explanations to any proprietor who
may desire-them on points alluded to in the report now
circulated, the directors forming the finance committee
propose to attend at ,the offices at London-bridge from
10 to 2 o'clock on Wednesday, the 6th inst.