The Sun.
London, England, 1854-06-13 00:00:00

PENINSGLAR AND ORIENTAL STEAM

COMPANY.

At the half-yearly meeting of the Peninsular and Ori •
ental Steam Company, held yesterday, the report was
unanimously adopted. A recommendation of the directors
to suspend she declaration of a dividend until the comple-
tion of the annual accounts produced apparently some dis-
appointmeEt, but created little discussion, full confidence
being expressed in the management. It was stated that
the increased cost of fuel, with the general advance in
wages and materials, has interfered with the revenue of
the company, but that the receipts continue to exceed the
expenditure. A. fresh appeal is to be made to Government
for relief in connexion with the contract for postal service,
and if this shall prove unsuccessful, the opinion of the
shareholders :s to be taken as to future proceedings. With
regard to the emoluments of managing directors, Mr. B.
M. Willcox has voluntarily resigned his share, retiring
from active Zuties, but continuing his seat at the board.
Mr. Arthur Anderson relinquishes about half of his allow-
ance, appropriating a portion to the institution of a provi-
dent' and gaod service fund for the officers and servants of
the compauyi but for the present retains his appointment.
Special votes of thanks were passed for these concessions,
and it is proposed that some substantial acknowledgment
shall hereafter be offered. Annexed is an abstract of the
report ;

" In order to meet, in some degree, the increased expenses
caused by the high cost of fuel, &c. the directors deemed it
necessary to recur, on and after the 4th of February last, to
rates of passage fares similar to those which existed previ-
ous to the Ist of January, 1853, when they were reduced on
the opening of the communication twice a-month with
India and china. Looking to the growing requirements of
trade and intercourse in the East, the expediency of econo-
niziug the navigation of the company's lines of communica-
tion, by providing vessels with screw propulsion, and to the
propriety of making timely arrangements for liquidating the
sums bore wed on debentures, the directors in the early part
of this year, applied to the Crown for a supplemental charter
of incorporation, to enable the company to increase its capital
by one million sterling. This charter has been granted, and
the new shares will bo issued at par, in the proportions of
two new shares to three old shares. The directors do not
contemplate any immediate issue of these new shares, nor do
they expect that they will be under the necessity of calling
for more than a small proportion of the additional capital to
be issued Oereby for some time to come. At the last annual
general meting the directors reported fully their proceed-
ings in respect to the application made to the Government
for relief under the difficulties in which the company was
placed in executing the contract postal service, which had
arisen from the scarcity of shipping and the enhanced cost
of fuel at the various depots. Although that application
was unsuccessful, the declaration of war against the Em-
peror of Russia was considered to afford a proper ground
for again making a similar application, inasmuch as the de-
claration of war was an act of tho Government, which has
not only greatly aggravated, but will, in all probability,
render continuous the increase in the cost of fuel, seamen's
wages, naval stores, marine insurance, and other expenses
of navigation. The directors have therefore applied again to
her Majesty's Government for such an augmentation of the
payment for the postal service as the company may be found
fairly entitled to, in consideration of the altered state of cir-
cumstances caused by the war ; and the Lords Commissioners
of the Admiralty have so far responded to the application as
to intimate their willingness to institute an inquiry into the
matter, which will soon take place. The groundsupon which
the present claim has been based aro so reasonable, that the
board can scarcely anticipate a second failure in obtaining relief
at the hands of Government. Should they be disappointed in
this expectation, they will, if necessary, call a special meeting
of the shareholders, to take into consideration the future
policy of the company. On the transit through Egypt the
directors are enabled to report satisfactorily. The Pasha
has, iu addition to other facilities, agreed to a reduction of
one-half of the transit duty from the Ist of July next, as a
preliminary step to its entire removal. This arrangement
is applicable to the travellers and commerce of all
countries ; and, as the transit duty forms at present a
heavy addition to the cost of transit of valuable articles, such
as raw silk, Sic., its reduction and abolition will remove a
serious obstruction to the adoption of the route of Egypt for
such articles ; and, in conjunction with new regulations
about to be adopted for meeting the growing requirements of
this trade, can scarcely fail to prove highly beneficial to the
company's interests. The construction of the railway between
Alexandria and Cairo is progressing with vigour. About 30
miles of the railway from the Cairo terminus towards Alex-
andria is also constructed, leaving only 36 miles now to com-
plete the whole line between Alexandria and Cairo. This, it
is expected, will be finished in the course of next year, and will
entirely supersede the water conveyance by the Nile, and re-
duce the journey between Alexandria and Cairo to about six
hours. Considering that the whole of the fuel consumed
during the six months embraced in the period of this report
was purchased at enormously enhanced prices—that most of
the new ships have been kept back from completion and em-
ployment by the strikes of workmen and other uucontrol-
able circumstances—that the execution of the contract
postal service has caused an expenditure excelling the pay-
ment received for it, and that the claim for indemnification on
that account remains yet undetermined—the directors feel
compelled to recommend that any declaration of dividend
should be postponed to the next annual general meeting,
when statements of the company's accounts will, as usual, be
laid before you, and when they trust the receipts and expen-
diture of the company may exhibit a more favourable result
than they can reasonably be expected to do at present. In-
stead of drawing upon probable future profits to supply a
present deficiency, or ceasing to set aside those reserves which
are necessary to maintain the property at its original value,
and provide for its security against accident, the directors
deem it the wisest and most honest course to recommend no
dividend, unless arising from clear profits realised during the
period on which they report ; and, while advising that which
they trust will prove to be a temporary inconvenience rather
than depart from the system hitherto adopted, they feel much
satisfaction in being able to state that the property and
financial position of the company are in a sound state, the
fleet in efficient order, and the future prospects of the enter-
prise by no means discouraging."
The following are the particulars of the fleet of the
company :
For the Southampton and Alexandria Service :
Horse-
Tons. power.
Simla
Candia
Ripon
Indus

For the Malta and Marseilles Service :
Vectis 9OO . 400 1 Ditto.
Valetta
For the Constantinople and Peninsular Service :
Tagus 9OO 230
Iberia
Madrid 5OO 160 Ditto.
Sultan 1,090 420
Euxine 1,165 400
Government Transport Service :
Himalaya 3,500 700 ... Screw
For the Suez and Calcutta Service :
Bentinck
Hindostan

}
1;800 520 Pa,
10 w

Precursor 1,600 500
Oriental
Bengal
1,800 450 }Screw'
Colombo

For the Calcutta and China Service :
.... 1,200 430 }Paddle.

Pekin

Lady Mary Wood
Formosa
Chusan.
Shanghai

▪ 650 260
▪ 800 220
750 100
700 100

wheel

Sorew.

For the Bombay and China service :
Singapore 1,300 500
Ganges
Malta 1,250 450 Paddle-
Erin
Pottinger
Achilles
Bb2oo 280
Douroay
1850 220 } Screw.
850 220

Cadiz..

Norms