The Sun.
London, England, 1849-05-31 00:00:00

Western Railway since its formation, by which the
" effective value" to the company is of course con-
siderably increased. The capacity and strength of
the carriages, the power of the engines have been
materially changed, and consequently not only
additional efficiency, but greatly increased dura-
bility has been obtained. The same may
be said of almost every other company which
has been actually engaged in traffic fur some
years. A close and accurate examination of the
moving stock would, therefore, show that in place of
any "deterioration" having taken place, the con-
trary has been the fact, and that the working condi-
tion is far superior at the present moment to what it
was when first brought into use. " All that is ne-
cessary (according to Captain llmsn) is to
repair and replace out of the current half-
year." If the original plant was insuffi-
cient, the additions thereto consequent upon
increased traffic or additional accommodation to the
public should clearly be charged to the "capital,"
and not to the revenue accounts, and these points
should be borne in mind when charges are preferred
against directors for having unduly increased the
dividends at the expense of the permanent interests
of the company. The principal conclusions arrived
at by Captain Auiss, and which are fully justified
by the valuable statistical facts adduced by him in
the course of his report, are as follows:
" That a desire fully to maintain the moving stock
has led the directors into the opposite extreme, and that
a portion of the fair earnings of the half-year has been
from time to time applied towards extinguishing the
capital of the concern, instead of being divided among
the proprietors, or being carried to the reserve fund, for
the maintenance of the future dividend.
" That a deterioration fund or allowance, although it
may have been to some extent prudent, in the earlier
period of the concern, is no longer required, but that
with the large establishments of the company there is
full capacity for maintaining the efficiency of the plant.
" That the market value of the working stock is
70,5841. more than it stands in the books to have cost
the company, and that, taking the effective value at only
ten per cent, more than the original cost, the real work-
, ing value of the stock is now at least 200,0001. more than
was paid for it.
' " That in strict justice the difference between the first
cost and the present real value belongs to the existing
proprietors, and might be available for division or trans-
fer to a reserve fund.

" And, that there was at least no necessity whatever
for setting aside out of the profits of the last half-year
the sum of 30,4001., and that it fairly belonged, and should
be transferred to the credit of the surplus fund."

This will be satisfactory information to share-
holders generally, not only of the North-Western
but of other companies. We should like to apply the
tests fairly put forward by Captain Hums to some of
the other lines, in which it has been asserted that
capital has been unduly debited in place of revenue.
It is certain that it will justify an increase of di-
vidend in many companies where the directors have
acted on the cautious but erroneous principle of
setting aside a depreciation fund from revenue in
every year.

We have not been enabled from want of space this
day to allude to the second report on the present
condition of the permanent way. We shall do so on a
future occasion.

By our report in another column, it will be
observed that the Right Hon. the LORD MAYOR pre-
sided last evening on the occasion of the eleventh
anniversary festival of the Royal Naval School. The
appearance of the Chief Magistrate of the city of
London as chairman was rendered a matter of more
than usual interest from the circumstance of the
present possessor of the Civic dignity being per-
sonally associated with the salt-water service.
With his customary liberality, the LORD MAYOR,
in addition to his subscription of .25/. towards the
support of this mari ime institution, has signified his
intention to endow the school with a silver medal—a
kind of contribution peculiarly calculated to benefit
the establishment, and to aid in carrying out the in-
tention of its founders by exciting among its inmates
an additional amount of emulation. The gift will
form one among many graceful commemorations of
the Mayoralty of Sir JAMES DUKE, evidencing at
once his liberality and his munificence.