The Sun.
London, England, 1849-04-10 00:00:00

four t labitioni

SUN OFFICE, Seven o'Clock.

EAST INDIAN RAILWAY.
(THIS DAY.)
An extraordinary general meeting of the proprietors
of shares in the East Indian Railway Company was
held at the London Tavern, Bishopsgate- street, this
day, at one o'clock, for the purpose of considering
and discussing a communication received by 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. AGLIONBT, 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. Nome, the Secretary, then read those
documents as follows :
East India house, 28th March, 1849.
Sir,--I am commanded by the Court of Directors of
the East India Company to acquaint you that, in conse-
quence of the discussionsk hich 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 of
the Home Authorities:hasibeen again turnedeo 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
Company will observe that a clause has been introduced,
defining mom 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 Mirzapore or Rajmabal.
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 1,000,0001. 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 nicety-nine years, but which, nevertheless,
shall be terminated at any shorter period, when the East
India Company shall, under she conditions and stipula-
tions 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 on 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 thel interest of 5 per cent.
thus advanced; and if more profit than .5 per cent. is made,
then that one-half of the surplus shell go towardsirepayiDe•
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 E ist
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 opened, shall be kept in use, it be
a condition that the railway cempany 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 railway 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 1,000,000/. sterling; and that if
there be any loss in working the line, the Railway Coin-
pany shall bear the same so long as they retain it They
howevr, he at liberty to give it up to the East
India Company at any time they please after six months'
notice in writing, which may be given at any time
after the line first to be made shall have been finished alai
in operation for the space of three months; but the railroad
to be given up in perfect condition, both as to the line
and the working stock. They shall then receive pay-
mOnt 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 revi,ed 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,
1,000,0001. sterling, with a deposit thereon of six per
cent., whereupon the East Inctie:.Comi any will re-
turn the present deposit of 60,0001., 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 frown 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 Corepany to take possession or the line,
upon re-payment only of the cost of survey and con-
struction 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 the Go-
vernment of India the option of purchasing the railway
at the expiration either of twenty-five or of fifty years.
14. That the terms of such purchase shall be computed
at the mean market value of the shares of the railway,
during the three years last preceding the said period of
twenty-five or fifty years, as the case may be.
15. That the purchase money so computed may, at the
option of Government, either be paid to the railway
company in one sum, or be commuted for a fixed annuity
for the remainder of the lease of ninety-nine years.
16. That it is to be und rstood 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 arrangement 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 only of the question of guarantee of interest.
18. That, in consideration of the rate of interest
havipg 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
passengers, and at the lowest rate for goods respec-
tively.
The CHAIRMAN said he would venture to ask
whether any gentleman had any observations to
snake on the terms, before he stated his own feelings
on the subject ? 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,
be 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,
bona fide, to
construction carry tout this
grea
ot undertaking, and
to give every fair
(Cheers)—and that reasonable to those terms—
mdification would be
0
admitted into the subscription contract.
,
Mr. HITCHINS said the company i
per cent. security, without the p W
out tli had a 51.
ty of a I
and he heartily concurred in the general terms -of-otshs,e
document
which had been read. He moved tthhaetsatmhee
terms b.: received and adopted, suggesting at
time that the directors should reserve to themselves
shares to the amount of 30,0001., 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.
Hite: ins for the adoption of the terms and conditions
propounded by the Court of Directors, and in so
doing said he could not help being astonished at the
advantageous terms which they were then con-
sidering.—(Applause.)
Mr. HENDERSON said, by the 16th clause, the gua-
rantee of 51. per cent. was not to extend to the
1,000,0001. How, he would ask, with 1,000,0004
were they to make a profitable line ? He would also
ask where the line was to be made, and what was to
be done with their money ?
The CHAIRMAN replied thAt the sum of 4000,0004