The Sun.
London, England, 1853-09-07 00:00:00

RAILWAY INTELLIGENCE.

ON.
The report of the dEASTERNirecto UNI
rs to be submitted to the
shareholders on Friday next congratulates the latter on
a continued progressive increase in the traffic receipts,notwithstanding they are, unfortunately, still in hostility
with their powerful neighbours ; though it will be seen
from the accounts that there has been a necessary in-
crease of expenditure upon a reduced scale of rates and
fares, owing to the unequal and unfair contests in which
they have been compelled to engage, and which, if they
had not entered upon, they have reason to believe that
their through traffic, especially in goods, would have
been almost annihilated. The total receipts for the half-
year, exclusive of the receipts by the boats of the Ips-
wich Steam Navigation Company, amount to 61,4661.;
the. working expenses, rates, and taxes for the like pe-
riod to 39,0241., leaving a profit of 22,4411. applicable
to the payment of interest on debentures and other
fixed charges. These and the continued pressure on the
company by its creditors have more than absorbed the
balance remaining, leaving nothing for the payment of
dividends. They state that, on the termination of the
Norwich agreement, the East3rn Counties Company
diverted the entire goods traffic from London down-
wards to Norwich, and that district of the line, and the
greater portion of the traffic upwards in cattle and
goods on their Cambridge line ; and gave the direc-
tors to understand that they would leave no means
whatever untried to destroy this company's traffic ;
and, regardless of consignments or directions, inter-
cepted all goods, parcels, and other traffic com-
ing on to the line at Colchester, and thence carrying
them in carts and waggons, by the high road, even
through Ipswich ; and at rates absolutely unremunera-
tive in many cases—at less than the cost of the cartage
from Colchester alone. The only course left open was
to make an arrangement with the Ipswich Steam Navi-
gation Company (whose steam-ship Orwell had been
constantly running between that port and London for
many years) for through traffic, with a division of rates
and fares, thus promoting and cultivating the traffic
over 56 miles of the line below Ipswich, at the cost of a
portion only of the traffic of the 17 miles between Ips-
wich and Colchester, and by low rates and fares largely
developing the remarkable sources of traffic in the dis-
trict ; the apparent loss of traffic over the 17 miles be-
ing counterbalanced by a considerable traffic which now
passes down the line from Colchester through the port
of Ipswich to London.

The directors state that they sincerely regret and de-
precate the adoption of a proceeding on both sides
so subversive of the interests of the railway system.
They are convinced that the prosperity of the share-
holders, as well as the convenience of the public,
would be greatly advanced by a friendly co-opera-
tion with the Eastern Counties Company ; but
still more by an entire union and amalgamation upon
fair terms. The directors rely upon the shareholders to
enable them to give full effect to the act of the late
session for effecting an arrangement with the preference
shareholders, by the creation and distribution of a Four
per Cent. Guaranteed Stock, for the purpose of redeem-
ing the existing preference stocks, to the extent of nearly
400,000/. ; thus putting the company into an advan-
tageous position to negotiate with other companies for
advancing their common interests. In the standing
orders committee of the House of Lords a clause was
introduced into the act, reserving the right of the pre-
ference shareholders "to interest or dividend (if any
due) on any preference shares up to the time of the re-
demption under the act." The directors caution the
preference holders against beim-, misled by the construc-
tion put upon it by a recent advertisement and circular
from one of their number, as they are advised by emi-
nent counsel that unless profits have been made from
which dividends could be declared from half-year to
half-year—and which has not been the case— no divi-
dends or arrears have become due or accrued. The
capital stock is made absolutely redeemable on a pay-
ment of 1091. for each 1001. of stock, and your directors.
trust that the main question at issue having been thus
settled, all may henceforth unite their efforts for the
general interest of the company.
The works upon the Harwich line have progressed
as fast as it was practicable under the difficulties inter-
posed by landowners and owners of property, com-
bined with scarcity of labour, but which the directors
hope are now so nearly removed as not to cause any
serious delay in the completion and opening of the line
for traffic. The corporation pier at Harwich, now in
use, is found of great service in the development of the
pleasure traffic from all parts of this company's lines, and
will be found adequate for the carrying on of a large
amount of traffic in connexion with the Harwich Rail-
way. The act of incorporation, just passed, for the
establishment of an extensive floating dock at Harwich,
to be in connexion with all the railway companies of the
district, cannot fail also materially to enhance the value
of the Harwich line, by stimulating to the utmost the
large continental and pleasure traffic which is certain of
passing over it.
The company is authorised to raise 2,110,0001. on
shares, and 620,000/. on loans, together 2,730,0001., and
of this power 444,875/. remains unexercised with regard
to shares, and 381/. with regard to loans. The ordinary
capital authorised amounts to 1,232,1751., the preference
capital to 550,0001., and the creditors' stock to 50,0001.,
together 1,832,175/., of which 1,531,559/., has
been received, and 300,615/. is stated to be receiv-
able. The capital account shows that 2,168,112/.
had been received, and 2,263,384/. expended. The
Harwich branch account shows that 65,236/. had been
received, and 59,853/. expended, leaving a balance of
5,383/. The revenue account for the half-year ending
the 30th of June shows that 61,4661. had been received,
and 39,025/. expended, leaving 22,441/. The estimated
liabilities of the company on capital account amount to
386,235/., and the assets to 372,708., leaving a de-
ficiency of 13,5271. The estimated liabilities on revenue
account amount to 78,6221., and the assets to 61,675/.,
leaving a deficiency of 16,9461. Of the 619,618/. raised
on debentures, 44,200/. was borrowed at 6 per cent.,
396,425/. at 5 per cent., 16,666. at 4,1 per cent.,
58,5771. at 4,1 per cent., and 103,750/. at 4 per cent.
The traffic receipts for the har-year ending the 30th of
June, 1852, amounted to 54,916/., and the expenses to
29,005/., leaving a profit of 25,911/., while the receipts
for the past half-year, ending the 30th of June, amounted
to 61,466/., the expenses to 39,0251., and the profit to
22,4411. ; so that while the receipts showed an increase
of 6,550/., the expenses also showed an increase of
10,020/. This ought to convince the directors that the
present unfortunate mode of conducting the traffic is not
in accordance with the interest of the shareholders, and
it is to be hoped that some reasonable arrangement will
be come to with their neighbours which will put an end
to the existing strife, and increase the net revenue of
the company.