The Sun.
London, England, 1849-04-11 00:00:00

EAST INDIAN RAILWAY.
An extraordinary general meeting of the proprietors
of shares in the East Indian Railway Company was
held at the London Tavern, Bishopsgate• street, yester-
day, at one o'clock, for the purpose of considering
and discussing a communication received hy the Board
from the Court of Directors, comprising " the terms
and conditions proposed by the Court of Directors of
the East India Company, for the construction of a
line of railway in the Bengal Presidency," and of
considering and deciding on the proceedings to be
adopted in reference thereto. The chair was taken by
H. A. AGLIONBY, ESQ., M.P., who called upon the
secretary to read the communications which had been
received from the Court of Directors, and the terms
and conditions referred to therein.
Mr. D. I. NO AD, the Secretary, then read those
documents as follows :
East India House, 28th March, 1849.
Sir,—l am commanded by the Court of Directors of
the East India Company to acquaint you that, in conse-
quence of the discussions which have taken place respecting
the " terms and conditions" proposed for the introduction
of railways into India, and adverting to the conflicting
views which prevail in regard thereto, the attention ot
the Home Authorities has been again turnecljo the whole
subject; and that, upon a review of the " terms and
conditions," it has been determined to modify the same,
in the hope and expectation that the question may thus
be brought to an early and satisfactory conclusion. .
A copy of the terms and conditions,
as applicable to
the railway proposed to be undertaken in the Bengal
Presidency, and into which the modifications thus de-
termined upon have been introduced, is herewith en-
closed, for the purpose of being submitted to the Board
of Directors of the East India Railway Company. In
forwarding the same, I am commanded to state, that the
terms and conditions so modified are to be received as
the ultimatum of the Home Authorities, and that the
assent thereto of the East Indian Railway Company
must be signified within one month from the date of
this letter.
The board of directors of the East Indian Railway
'oropany will observe that a clause has been introduced,
defining more particularly the position of the experi-
mental section which they are to undertake.
I am, Sir, your most obedient humble Servant,
(Signed) JAMES C. MELVILL.
D. I. Noad, Esq., &c. &c.
Terms and Conditions upon which assistance will be af-
forded by the East India Company, for the construc-
tion of a Line of Railway in the Bengal Presidency.
1. That the selection of the line of railway be left to
the Government of India, it being understood that the
section to be undertaken, in the first instance, shall be
the commencement of the line which may be deter-
mined upon from Calcutta towards the Upper Provinces,
so as to form a commencement of the line leading either
to Miraapore or Rajmahal.
2. That the railway be made by a company under the
supervision and direction of the East India Company,
whose officers, in India or in London, shall attest to the
whole expenditure, and see that the capital account is
properly kept, in the course of construction.
3. That a capital of 1,000,000/. sterling, for the exe-
cution of the proposed experimental section, shall be
raised by the railway company, from the shareholders,
and paid into the East India Company's treasury in
London, to be re-drawn as required for expenditure, for
such purposes only as shall be admitted to be capital.
4. That the land be provided by the Government.
5. That the land remain the property of Government ;
and that the railway company be granted the use of it,
on lease for ninety-nine years, but which, nevertheless,
shall be terminated at any shorter period, when the East
India Company shall, under the conditions and stipule-
thins herein contained, become possessed of the railway.
6. That the East India Company shall pay, annually,
to the directors of the railway company, a sum equal to
5 per cent. interest ou,the capital of 1,000,0001., paid
into the East India Company's treasury under the pro-
vision contained in clause 3.
7. That the whole of the profits shall be applicable to
repay the East India Company the interest ot 5 per cent.
thus advanced; and if more, profit than 5. percent. is made,
then tlat 'one-half of the surplus shall go towards repaying
the interest advanced in former years, and the other halt
to the shareholders. When the arrears of interest, with
interest thereon, calculated at the rate of 5 per cent.,
from the, time it shall have been advanced by the East
India Company, are all paid, then all the,extra profit to
go to the shareholders.
8, That, in order that the public may have security
that the railway, when operied, shall be kept in use, it be
a condition that the railway company shall run such
trains as the Government in India shall consider neces-
sary for the convenience of the public and the general
traffic.
9. That in the working of the line the East India
Company shall have perfect supervision of works, books,
accounts, &c., and shall see that the line and working
stock are at all times kept in perfect repair, equal to the
first state; and that if the reilway company fail to follow
the directions of the East India Company's officers, the
latter shall be at liberty to make repairs, and deduct the
cost from the next accruing interest, or other moneys, to
be paid to the railway company.
10. That in no case shall the East India Company be
called upon to pay more than 5 per cent. per annum on
the actual capital paid into the company's treasury, to
an extent not exceeding 1,000,0001. sterling; and that if
writing,nline first rst
towhich n
b e made shalla
there be any loss in working the line, the Railway Com-
pany shall bear the same so long as they retain it. They
shall, howevr, be at liberty to give it up to the East
India Company at any time they please after six months'
after the
notice
in
in operation for the space of three months; but the railroad
to be given up in perfect condition, both as to the line
'v
be
have given
been a t
finisheda nyand
time
a
and the working stock. They shall then receive pay-
ment of the original capital invested in the actual survey
and construction of the line, either in one sum, or, at
the option of Government, it may be commuted for an
annuity, according to the provision hereinafter con-
tained, for the purchase of the railway by the East
India Company, the Railway Company having satisfied
the East India Company that all claims against the
Railway Company, in respect to the railway, have been
discharged.
11. That any company undertaking these works shall
lodge with the East India Company, within two months
from the date of the Court's letter transmitting the pre-
sent revised terms, a subscription contract list of share-
holders, to be approved by the East India Company, for
the whole amount of the capital required—namely,
1,000,000/. sterling, with a deposit thereon of six per
cent., whereupon the East India Company will re-
turn the present deposit of 60,000/., and will take mea-
sures in view to obtain without delay for the railway
company a charter from the Government of India, and
a charter in conformity therewith from the Crown.
12. That a clause be introduced into such charters,
which shall bind the Railway Company to the payment
of the required capital, and the completion of the works
undertaken, within such period as may be agreed upon
between them and the East India Company; and which,
in case of failure of such engagement, shall enable the
East India Company to take possession of the line,
upon re-payment only of the cost of survey and con-
striction of such portions of the line as shall have been
actually completed and opened to the public.
13. That provision he made for securing to th;Go-
vernment of India the option of purchasing the raiswesay
at the expiration either of twenty-five or
of
btiettLiyeeputed
14. That the terms of such purchase shall
the
railway,
at the mean market value of the share t
tho said period of
during the three years last precedingway
be.
twenty-five or fifty years, as the, case
so computed may, at the
15. That the purchase money
option of Government, either be paid to the railway
be commuted for a fixed annuity
for in one sum, or y
for the remainder of the lease of ninety-nine years.
16. That it is to be understood that the annual pay-
ment guaranteed by clause 6 of these terms and condi-
tions, will be confined to the experiment new under
consideration.
17. That it is to be likewise understood that the pre-
sent arrangiment in no respect supersedes the terms
communicated to the Government of India in the le-
gislative letter of the 7th of May, 1845, with the ex-
ception or.ly of the question of guarantee of interest.
18. That, in consideration of the rate of interest
having been raised from 4 to 5 per cent. per annum, the
railway company undertakes to carry the mails free, and
the troops, the artisans, and the stores of the Govern-
ment, at the terms chargeable for the lowest class of
pasengas, and at the lowest rate for goods respec-
tively.
The CHAIRMAN said he would venture to ask
whether any gentleman had any observations to
make on the terms, before he stated his own feelings
on the subject i With regard to the terms them-
selves, he would only remark, that having, since
they received them, been repeatedly in communica-
tion with the authorities of the: Board of Control,
he thought his duty, as holding a public situation, to
state that he had no hesitation in expressing his
strong conviction that it was the intention of all the
authorities concerned in the government of India,
Low fide, to carry lout this great undertaking, and
to give every fair construction to those terns—
(Cheers)—and that reasonable modification would be
admitted into the subscription contract.
Mr. HrrcniNs said the company now had a 5/.
per cent. security, without the possibility of a loss,
and he heartily concurred in the general terms of the
document which had been read. He moved that the
term's be received and adopted, suggesting at the same
time that the directors should reserve to themselves
shares to the amount of 30,000/., for the purpose of
disposing of them at a premium in remuneration for
their great services.—("No, no," from the Chairman.)
•The CHAIRMAN replied that with regard to reserv-
ing shares for the purpose of disposing of them at
a premium in the market, it was a proposition which
the directors gratefully but decidedly declined.
Mr. FLOOD rose to second the motion of Mr.
Hitchins for the adoption of the terms and conditions
propounded by the Court of Directors, and in so
doing said he could rot help being astonished at the
advantageous terms which they were then con-
sidering.—(Applause.)
llr. HENDERSON said, by the 16th clause, the gua-