The Sun.
London, England, 1853-02-28 00:00:00

RAILWAY INTELLIGENCE.

GREAT NORTHERN.
The halryearly meeting of proprietors was held on
Saturday, Albion Tavern, Aldersgate-street. Mr. E.
Denison, M.P., was in the chair.
The Secretary having read the advertisement con-
vening the meeting, and the seal of the company having
been affixed to the share-register,
The CHAIRMAN said—The report having been in your
lands nearly a week, I think we may assume, for your
convenience, that it has been read, and I hope it has
afforded you much satisfaction. (Hear, hear.) There-
fore, we will assume that it has been read. You will
find by the published capital account that we have ex-
pended the enormous sum of 9,500,000/. ; and, accord-
ing to the best calculation that we are able to make, the
whole money necessary to be expended for the comple-
tion of your line and all the works will be the addi-
tional 1,000,0001. which you permitted us to raise when
I had last the honour of addressing you ; so that, in
round numbers, your expenditure, as regards capital,
will be 10,500,000/. If you will do me the favour to re-
fer to the account, you will find that of that 10,500,0001.
not much more than half of it will appear debited literally
to the construction of the works. Works, constructions,
and so forth, stand at present at 5,285,000/. ; and, per-
haps, 200,0001. or 300,0001. wants adding to that. Now,
on your behalf, and on behalf of the public, I. sincerely
lament that, although the construction of a railway should
have cost 5,50'0,0001., in round numbers, yet that, never-
theless, all other expenses of every sort should have
very nearly doubled that sum—parhamentary expenses,
compensation for land. Interest certainly has been
divided. among you ; and, therefore, one has no right to
complain of that, because you have received a certain
amount of that among yourselves. But it is a fact
which I think is worth observing, that although the
line will have cost 10,500,0001., not above half that sum
has been expended in the actual construction. The
line, then, having cost altogether 10,500,0001., it is
worth while to occupy one or two minutes in considering
what you have got for your money. I believe lam cor-
rect in stating that you have got one of the best con-
structed lines in the kingdom, with a terminus in London
at all events most convenient to the public, most advan-
tageous for all the purposes of railway traffic, and
although it wears a magnificent appearance, I believe,
as compared with others, it will not be found to be a
very costly construction. But the line itself, to which
I am rather more disposed to call your attention than to
the station, is a matter of serious importance to you—
at all events, if not to you, to those who come after you,
because it will be found, on examination, that from
London to Peterborough, which is 76 miles, the line is
so constructed that, with very little additional expense,
as compared with other lines, two additional lines may
be laid down, so that it would be a railway constructed
to carry four lines. The embankments are already
formed for four lines ; the bridges are three-arched
bridges, so that an additional line would run
through each of the side arches; and, in point
of fact, with the exception of the tunnels, in
respect of which there would be little difficulty, in case
two lines should be laid down, you would be able to
have four lines laid down between Peterborough and
London at an infinitely smaller expense than the same
thing could be done for any line that has its terminus in
London. I wish to be as correct as I possibly can, as
it is my duty to be. I have asked Sir Wm. Cubitt, and_
he says there will be no difficulty whatever, either with
respect to tunnels or bridges, in laying down two addi-
tional lines ; that the embankments are all wide enough
for that, and the land has been bought. Now, Ido
not presume to say that, in the year after next, the gen-
eral manager will want the use of four lines, but I am
thoroughly convinced that, in less than 17 years from
this time, the traffic of the Great Northern into Lon-
don will be such that four lines will be required. (Hear.)
Then, so much for the capital, which again, I sincerely
lament, is unavoidably so large. Then comes the ques-
tion of the chance of repayment in the shape of interest
for the money you have laid out. The ' earnings of the
railway have been progressing in this wise, that where-
as, in the half-year ending Dec. 31, 1851, we had 241
miles at work, which earned 315,0001. ; that was equal
to 511. per mile per week. Now, that was autumn of the
Exhibition traffic, and was, of course an exceptional case
to almost all others; and I admit that, when I looked at the
figures, I was apprehensive that from that time, the aver-
age weekly mileage would very seriously decrease; and so
it has decreased, as it did decrease on almost all other lines
in the kingdom that had their termini in London.
Although we have had 283 miles at work for the last

half-year, ending 31st December, the average
.mileage
stands at 501. per mile. So that it is, in point of fact,
shutting out the question of the Exhibition, making a
reasonable deduction from that, though we have added
60 miles to the mileage, as compared with the preceding
half-year, the mileage is, in point of fact, better, and it
stands for the average of the last half-year at 501. per
mile per week. I believe 361,0001. was earned in the
half-year ; twice 361,0001. would produce a larger sum
of money, as earned already, than was calculated would
be earned when the plans were before the Parliamentary
committee. But lam equally ready to admit that the
expenditure has far exceeded the estimate ; but it is sa-
tisfactory to find, at all events, the calculations with re-
spect to the receipt of traffic were not over-stated.
Then, with respect to the working expenses, they have
receded from 50 per cent. to 44 per cent., I think, and
there is every reason to believe that they will gradually
decrease. When we proposed that we should have the
privilege of raising a million of capital, with the usual
borrowing powers, it was suggested by a very intelli-
gent and active shareholder, that it should be cut down
to 750,000/., with the usual borrowing powers ; and

that was proposed by Mr. Hughes, in peifect good feel-
ing beyond all doubt, and it was seconded by Mr.
Waters. Ido not mention that from any ill-feeling to
that gentleman.
Mr. HUGHES—Recollect you have 60,000/. more than
you told us then.
The CHAIRMAN—I only mention it now in order to
show that I think I acceded to his request and to his
suggestion perhaps more readily than prudence or con-
sideration would have warranted me in doing. Now I
will tell Mr. Hughes why I think it probable—l will
not deceive the shareholders—that the whole of the
money which we shall be able to raise under that new
loan will be expended. But, now, look here : supposing
the general manager, in the course of nett year, should
come to the directors, and say, "I must have 1,000
waggons more"—he has intimated that already— " I am
quite certain" (says the general manager) " that your
traffic will develop itself in such a way that, with your
present rolling stock, I cannot work the traffic." Sup-
posing that should be the case, and we had not the
money, what would be the consequence ? I should say,
if you had not the money ? Of course I must make that
statement, or my successor must make the statement to
you. You cannot grant the additional sum of money
without our going to Parliament. Ido not mean to
say you can remedy it now ; I only mean to say how
necessary it is to be cautious. I think it will be desir-
able for you, the proprietors—not for us, the directors,-
but for you—to have a margin on .which you can fall
back. But, as it stands at present, if we are driven to
the necessity of using the whole of the powers which we
have under Parliament, then you cannot assist us with-
out going to Parliament again.

Mr. IfEwicK—Mr. Chairman, allow me to ask Mr.
Seymour Clarke if we have sufficient waggons now for
our present traffic, taking for granted that we have a
small increase.

Mr. SEY3IOIIR CLARKE—I think we have not suffi-
cient plant to develop the traffic in the. way the circum-
stances of the line require it.
A SHAREHOLDER—I hope you will want more

waggons

The CHAIRMAN—My friend says, "I hope you want
more waggons ;" and so do I. But if we have not the
money with which to procure the waggons, and we state
that to you, you might let the half-year go over. You
will bear in mind that we cannot borrow more money
than we have got power, by act of Parliament, to bor-
row. The Secretary reminds me that I have not said
anything upon rather an important subject, which is the
dividend. After all, we are enabled to declare that we
can pay a dividend of 21 per cent. upon the original
unprotected stock, and that we shall recommend to you
to adopt. I take this opportunity of observing, that if
we can pay a dividend of 21 per cent. upon the unpro-
tected stook, which stands at only 4,800,0001., and
which is not one-half of the general expenditure, and
that we have, before we made that dividend, paid all
our liabilities—that is, interest on capital, on preferen-
tial shares, on.mortgages, and so forth, at 5 per cent.—
I think, considering that we have paid 5 per cent. upon
a perpetual preferential capital, consisting of about
2,000,000/., and also on 2,500,0001. of borrowed capital,
averaging altogether, perhaps, 4i per cent., I think you
must admit that the line has, in its earnings, done won-
derfully well. This brings me back to a point which I
meant to have commented on, and it is this : that as a
great deal of this money-750,0001., on redeemable pre-
ference, capital, and 2,500,0001. at 5 per cent., 41 per
cent., and so forth—may be paid off at a reduction of in-
terest, I am not without hope that the reduction of inte-
rest altogether may,in the course of a year or two,
to such
amount
a sum of money that, although we shall
have to pay the interest upon the new 1,000,0001; still
that the annual dead weight will not be much larger
than it is. The calculation I will read :—"The interest
payable by the company at present, on the redeemable
preference capital, and on the mortgage debt of the com-
pany, is annually 156,0001. If the redeemable preference
capital be redeemed, and re-issued with all the mortgages
at 3/ per cent., the charge per annum would be 110,875/. ;
that would be an annual saving of 36,000/. a year."
Another matter, and a very important one, is with re-
spect to the Bradford and Halifax Junction Railway.
We have made arrangements with them for working II
their traffic. At present the line bet Ween Leeds and
Bradford is a very circuitous one, and is in the hands
of the Midland Company, who, looking very Properly,
and closely, and sharply, to their own interests, do
not send any more grist to our mill than they can
very well avoid ; and the consequence is, that we have
had some difficulty in getting what we thinkis our
fair share of the traffic from Bradford, which is ex-
ceedingly valuable, and parties ,in that neighbourhood
are actually making a line • and we have made arrange-
ments with them that we should work over that line into
Bradford; and I have no difficulty in saying that I think
it would be exceedingly advantageous that we should
make this arrangement ; and they are going to Parliament
for larger powers, so that they may extend the arrange-
ments with us.
Mr. WATERS— No guarantee ?
The CHAIRMAN—NO.
Mr. BEWICK—HOW many miles shorter will the line
be than the Midland !
The CHAIRMAN—Theirs is 13 miles. This will be 9
miles. It is a working agreement only. I now come to
what is really a very painful subject, and that is the
19th paragraph in the report with respeet to the South
Yorkshire Railway Company. We made an agreement
:with the South Yorkshire Com. piny that we would take

their railway upon certain terms and conditions, and
that it should be amalgamated with your railway, and
that agreement was brought before the shareholders, as.
well I remember, about this time last year, if not this
very day last year. That was, in point of fact, a lease
for 21 years, and with the intention and with the sanction
of the gentlemen present, at least a great many of them,
that Parliament should be applied to for leave to amal-
gamate the two completely, upon certain terms and con-
ditions. The solicitors of each company jointly applied
to parliament for an act enabling the two companies to be
amalgamated; and after certain animated discussions the
act of Parliament was granted. It involved the guarantee
of various canals, and interest on the money expended
on the railway, and, in round numbers, it involved a
guarantee of 75,000/, a year. The bill went through
Parliament, and an attempt was made by the Midland
Railway to get what are called running powers into the
same coal field. As soon as I heard that they intended
to make this application, I was so thoroughly convinced
that it would render our amalgamation with the South
Yorkshire dangerous, impolitic, and unwise, that I deter-
mined at all hazards, in case the committee of the House
of Commons granted such powers to the Midland Com-
pany, and notwithstanding the resolution which you
had passed, I would insist upon the bill being with-
drawn, and that it should not become an act of Parlia-
ment. (Hear, hear.) This question of running powers
'was discussed for two days before the committee. I was
examined ; and the committee came to the conclusion
that they would not grant the running powers to the
Midland Company. But they insisted upon a clause
something like this :—" And whereas it will contribute
to the public convenience that a free interchange of traf-
fic in passengers, goods, and minerals should be estab-
lished between the Great Northern and the Midland
Railway Companies, at the junctions between the South
Yorkshire Railway and the Midland Railway, and on
the principle of a mileage rate, be it enacted, that in case
the Midland Railway shall, by notice under their common
seal, signify to the Great Northern Railway Company
their desire to adopt this provision, then, so soon as the
undertaking of the South Yorkshire Railway and River
Dun Company shall, by virtue of this act, have become
vested in or be under the control of the Great Northern
Railway Company, either by lease or amalgamation, or
otherwise, the last-named Company and the Midland
Railway Company shall make such mutual arrangements
at the said junctions between the South Yorkshire
Railway and the Midland Railway, as shall provide for
the proper conveyance of traffic in passengers, goods,
and minerals, and of waggons and carriages along their
respective lines, on the principle of a mileage rate, so as
effectually to prevent any detention of such traffic, and
to prevent any disproportionate charge thereon ; and in
case the said companies, or either of them, shall fail to
make such arrangements as aforesaid, the same shall be
referred to arbitration, in the manner prescribed by the
Railway Clauses Consolidation Act, 1845." After having
succeeded in objecting to the Midland Company getting
the direct running powers into the coal-field, this clause
—at least, the substance of it—was drawn up by re-
spective parties advocating the bill. This was the clause in-
sisted upon by the committee an behalf of the public. What
is the operation, it may be asked, of that clause ? I
will tell you, not my interpretation, but that of others—
that it practically gives to the Midland, and all rail-
ways connected with the Midland, for all prac-
tical purposes, as good an entrance into the South
Yorkshire coal-field as the Great Northern would have.
The question that comes across my mind is this, whether
it was worth while with these conditions that the amal-
gamation should be carried on ! Another clause was
inserted in the bill. But before I make any comment
upon the clause I am ready to admit that it was dis-
cussed at our board, and it was a clause insisted upon
by the South Yorkshire directors. It is to this effect—
that three trustees shall be elected by the shareholders
of the South Yorkshire, who shall have 2001. a-year
each, but which 2001. a-year each shall be paid out of
the purse of the Great Northern. (Hear, and a laugh).
I protested'against the clause as long as I could, and I
found that it was unavailing. I will at once admit I
consented ; I had no alternative. /The question was,
whether it was at all fair or necessary that we, the parties
who were to pay a very handsome sum to them for the
amalgamation, should be the parties to pay them 2001.
a-year each for auditing what, in point of fact, Are their
own accounts ? But notwithstanding this, I did not for-
get that there was a reservation in the bill which you
may exercise, and that is that the amalgamation cannot
take place without the consent of three-fifths of the
shareholders of the Great Northern. If the bill had con-
tained twenty more objectionable clauses, I do not know
that I should have objected to them ; because, after
all, it is a permissive bill, and not a confirmation bill ;
and leaving the option entirely in the hands of the share-
holders, they are at liberty at any moment they like to
make use of it, if three-fifths of them choose to do it, with
the concurrence of three-fifths of the shareholders of the
South Yorkshire. The hon. gentleman then went at great
length into the South Yorkshire question (speaking upon
it for about an hour and a half), and. concluded with a
motion for the adoption of the report.
Mr. PAM seconded the motion for the adoption of
the report.
After a lengthened discussion the report was adopted,
and a dividend at the rate of 2 per cent. per annum
having been declared, a vote of thanks was given to the
chairman, and the meeting broke up.