The Sun.
London, England, 1853-08-15 00:00:00

EAST INDIAN.

The half-yearly report of the directorsjust issued congra-
tulates the shareholders upon having completed arrange-
ments with the East India Company for the development
of that comprehensive system of railways in India which
originated with this company. Upon the capital requi-
site to complete the line to Delhi interest at the rate of
41 per cent. per annum is guaranteedf under terms in
other respects identical with those of the first contract.
The political benefits which the undertaking will confer
upon this country and upon India are second only to the
inducements it offers as a largely remunerative means of
investment, and the following brief summary of traffic,
taken from authenticated documents carefully collated
seven years ago, justifies the expectation that the ulti-
mate receipts of the line will be large beyond any known
precedent :--The estimated cost of the line from Calcutta
to Delhi is 10,000,0001. In the year 1844-5 the traffic
between Calcutta and Mirzapore was about 2,222,359
tons of goods, and about 570,000 passengers ; and be-
tween Mirzapore and Delhi about 1,000,000 tons of
goods and 430,000 passengers. Experience in this
country warrants the assumption that there will be a
large increase upon this traffic ; but, taken as it stands,
and oarried at exceedingly low rates, with an allowance
of 50 per cent. for working expenses, it will produce
a net revenue exceeding 30 per cent. per annum on
the capital invested. To give effect to the arrange-
ments contemplated, the Board of Directors propose
to issue 400,000 shares of 201. each. Of these
shares 250,000 will be offered, pro rata, to the
present holders of shares in this company, in the pro-
portion of 21 new shares for each old and each Extension
B share ; the remaining 150,000 shares being assigned,
at the request of the East India Company, and in consi-
deration of the ultimate extension of the line by this
company to Lahore and the north-western frontier, to
the holders of shares in an association entitled the
Upper India Railway. Company, in accordance with an
arrangement made between the East India Railway
Company and the Upper India Railway Company, in
the following terms :
"In the event of the line from Rajmahal to Delhi,
and ultimately to the north-western frontier, being in-
trusted to the East Indian Railway Company, and of a
capital for that purpose being authorised of not less than
7,000,0001., a proportion of that capital to the amount
of 3,000,0001. shall be assigned to the holders of scrip in
the Upper India Railway, the whole of that scrip being
simultaneously delivered up.
"Three of the directors in the Upper India Railway
Company shall be elected directors of the East Indian
Railway Company, in addition to the present members,
by the board of directors of that company, according to
the present mode."
L This arrangement was signed by the chairman of the
two companies, in the presence of the chairman and de-
puty-chairman of the East India Company.
In pursuance of this arrangement, 'the board deter-
mined to recommend for election three directors of the
Upper India Railway Company. The directors of that
company, however, have declined to be elected in the
mode agreed upon, and the necessity therefore for in-
creasing the board, of which notice was given, no longer
exists. It is intended that calls on the 400,000 shares
now to be issued shall be made at intervals of three
months, at the rate of about 16 per cent. per annum.
The first call will be 21. per share. There will also be a
call of 1/. per share on the shares at present called Ex-
tension B Shares, and the remaining 181. will be called
for at the rate of 16 per cent. per annum. Arrange-
ments have been made by the bill introduced into Par-
liament to carry out the extended objects of the com-
pany for securing the interests of the holders of the 5
per cent. shares. The works at present under contract
are progressing satisfactorily ; nearly the whole of the
permanent way for the first section of 121 miles has
been shipped ; the rolling stock will at once follow, and
it is hoped that this portion of the line may be open for
traffic in the course of next year. There being a vacancy
in the direction, the Baron de Goldsmid, one of the
present auditors, will be nominated to fill the same.
From a correspondence between the directors of the
East Indian Railway Company and the Hon. East
India Company, inserted in the report, it appears that
the latter were desirous that the whole capital required
for the railways between Calcutta and Delhi should be
at one uniform rate of interest, which was objected to
by the railway company, the capital of 1,000,0001 hav-
ing been guaranteed 5 per cent., but the latter company
proposed that the capital of the line to 'Rajmahal,
1,000,0001., at 41 per cent., should be merged in the
new capital for the extension to Delhi. The rail-
way company estimate that the amount of capital re-
quired to carry the line from Rajmahal to Delhi will be
8,000,000/., and the lowest rate of interest at which it
could be raised is 4/ per cent. This estimate is for a
single line, and is framed on the supposition that it will
not be considered desirable, in the first instance, to
bridge either of the rivers Saone or Jumna, but, should
there be an excess over what is required to complete the
line to Delhi, then the surplus may be applied either
towards this object, or to the construction of the line
from Delhi to the north-west frontier. The railway
company will undertake to complete the line in seven
years, provided every facility is afforded them in this
country and in India, but the East India Board consider
that it may be constructed in a shorter period. The
report concludes with a favourable notice of the great
exertions which have been made by their engineering
staff in India, under Mr. Turnbull, to push forward the
works and new surveys.
The board of directors beg to direct the favourable
attention of the shareholders to a letter from Mr.
Stephenson, the managing director, on the subject of his
remuneration as promoter of the company. It appears
that in August, 1849, and February, 1850, the proprie-
tors passed resolutions securing to Mr. Stephenson and
family an allowance of 5 per cent. on the net profis which
over and above 5 per cent. should be received on the
capital invested in the line from Calcutta to the Ranee-
gunge collieries. Mr. Stephenson hopes that the proprie-
tary will have the kindness to extend to the Rajmahal
section the percentage they have applied to the first or
experimental section.

BIRKENHEAD, LANCASHIRE, AND CHE-

SHIRE JUNCTION.

The half-yearly meeting of this company was held on
Saturday at Birkenhead ; Mr. Alderman Bancroft in the
chair.

The SECRETARY (Mr. Gibson) read the report, which
stated that the amount received during the half-year
ending the 30th of June, 1852, was 41,4771., and ex-
pended 22,5601. The amount received in 1853 was
52,4561., and expended 24,9461. Increase in receipts,
10,979/. ; increase in the expenses, 2,3961. The traffic
on the Cheshire Junction portion of the line is rapidly
increasing. The merchandise between Manchester and
Chester for the last half-year amounts to 25,149 tons,
against 16,165 tons for the corresponding half-year, and
between Manchester and Birkenhead to 2,098 tons,
against 1,274 tons for the corresponding period of 1852.
The number of passengers was 91,354, against 83,783 ;
and the total receipts from the Cheshire Junction line for
the last half-year amount to 16,5131., against 12,4481.
for the corresponding period. The statement of ac-
count shows a gross income for the half-year (including
a balance of 551. from last half-year) of 53,945/. ; but
the directors have to observe that this statement as-
sumes an amount to be received from the Shrewsbury
and Chester Company now under litigation. The
company is paying Mr. Brassey nearly 4,0001. per annum
for maintaining the line from Chester to Lower Walton,
which the company will be able to maintain, after
Christmas next, for 2,000/. per annum, thus effecting a
saving of 2,0001. per annum. The proprietors are aware
that the bills introduced for the purpose of leasing the
undertaking to the London and North-Western Com-
pany were suspended. The agreement under the seals
of the two companies, however, provides that on the
passing of the leasing bill the dividend of 4 per cent.
shall take effect from the Ist of January in the present
year, and that the difference between the dividend paid
in the meantime and the 4 per cent. shall be provided
for in the act, either in the form of dividend or other-
wise. The directors recommend that a dividend be de-
clared of 6s. 2d. per 271. 10s. share ; 6s. 3d.
per 311.
share ; and 4s. 61d. per 221. share, being after the rate
of 21 per cent, per annum, and that the same be payable
on the 20th of August inst.

The CHAIRMAN, in moving the adoption of the report,
adverted to various items in the accounts, and said, the
directors were not sure that they were not justified in pro-
posing a dividend of 21 per cent. instead of 2 per cent., still
leaving a surplus to meet the contingencies arising from
the litigation with the Shrewsbury and Chester Company.
(Cheers.) The proprietors would see that there had been a
large increase in the receipts of the company during the
past half-year ; and if there were no reduction in the
expense of litigation, they could continue that dividend
at Christmas, and, perhaps, increase it to 2i per cent.
out of their own proper earnings. (Cheers.) Under
these circumstances, he left the shareholders to say
whether they would fill up the dividend of 2 or 2f per
cent. for the half-year.
After some observations from Mr. IRVINE and other
shareholders,

The CHAIRMAN said, with regard to the traffic on the
line, he was of opinion that from this half-year to the
corresponding half-year in 1854 the gross amount would
not be less than 120,0001. After briefly alluding to the
bill introduced by Mr. Cardwell, enabling small compa-
nies to enter into working arrangements with larger
companies, the chairman concluded by moving the adop-
tion of the report, which was carried unanimously.
Mr. TITHERINGTON thought the London and North-
Western should give them an earnest of the 4 per cent.
by reducing their charges for the carriage of goods, &c.
(Hear, hear.)
The CHAIRMAN had no doubt that they would reduce
the terminal expenses in Manchester for carting goods
from 4s. to 2s. or is. 6d. (Cheers.)
Mr. IRVING expressed an opinion that the Birkenhead
line would be in a better position as an independent com-
pany. He differed from the chairman as to the amount
of the Birkenhead traffic for the next year. Instead of
120,0001., he was of opinion it would reach 125,0001. or
130,0001.
Mr. TITHERINGTON advanced a similar opinion.
The CHAIRMAN replied, that all that was stipulated for
the London and North-Western had been faithfully per-
formed. The whole of the Holyhead traffic now passed
over the Cheshire junction of the Birkenhead line • and
if anything went in another direction it was accounted for.
The whole of the directors were re-elected, with the
exception of Mr. Isaac Taylor, for whom Mr. Tithering-
ton was substituted. Mr. H. C. Beloe was unanimously
re-appointed auditor.
The dividend, as • recommended in the report, was
adopted, and a vote of thanks to the chairman and di-
rectors accorded, which terminated the proceedings.