The Sun.
London, England, 1849-02-28 00:00:00

293.904 10 0

Balance £103,687 13 0
Which balance, with 3,5891 9s. sd. balance from list
half year, amp urits to 107,2771. 2s. sd. applicable for
dividend and depreciation.
"It will be in the recollection of the shareholders
that, in the financial statement issued to them in No-
vember last, the necessity of creating a depreciation
fund to meet the outlay fur the replacement of the pe-
rishable portions of the permanent way and working
stock was referred to. In accordance with that view
the directors recommend that the dividend on the con-
solidated stock of this and of the Norfolk Railway Com-
panies shall boss. 6.1. per share, which, upon 336,762
shares, the number now entitled to dividends in both
companies, will amount to 92,6091. lls., having fur the
reserve or depreciation fund— which the directors
strongly recommend the shareholders to sanction—the
sum of 14,667/. Ils. sd.
• " The directors continue to give their earnest atten-

tion to the subject of the working expenses, and they
have made during the past half-year, such reductions
as have appeared practicable, without impairing the
efficiency of the establiahmeat, or unnecessarily cur-
tailing the accommodation of the public.
" The subject of the unjue t and oppressive local taxa-
tion to which railways are exposed, has occupied the at-
tention of the directors of this company, in common with
the directors of other companies, and they now recom-
mend that the petitions to both houses of Parlia-
liament, which will be submitted to the meeting, receive
the sanction of the shareholders, and that they give
their authority to the company's seal being affixed to
the said petL ions.
. _

"The advantages which would result to this railway
from a communication by steam from Harwich to the
ports of the Continent have frequently occupied the at•
teution of the meeting of the shareholders, and the
directors are happy to announce that the Government
has determined to run the mail packets to Hamburgh
and Rotterdam from Harwich.

"An independent company has been established to
perform the service of conveying the mails, and has ob-
tained the Government contract. That company will be
in friendly alliance with the railway company, and does
not seek any guaranteed dividend from the latter. The
utmost aid at any time required by the steamboat
company will be a small loan, only to be granted by the
railway company upon approved and sufficient security.
Every exertion will be made by this company, the
Eastern Union Company, and the steam-boat company,
to draw the passenger and the light goods trade between
London and the North of Europe through Harwich ;
and when the Harwich branch has been completed, the
traffic in heavy goods will follow. The prospects of a
gradual and ultimately large increase of revenue to the
railway from this new source are favourable.
" The following directors retire at this meeting:—Mr.
Anderson and Mr. Crosbie. These gentlemen are eligible
for re• election, and offer themselves accordingly."
The CHAIRMAN, in moving its adoption, said he hoped
he was addressing a meeting of commercial men, who
would listen patiently to every individual who might
be in possession of the chair.—(Hear, hear.) It
they would give him a patient hearing he
would detail to them, in as explicit a manner as
possible, the real position of the company. The traffic
during the past halF-year had fallen off very
materially, but this was attributable to various causes.
It was not to be forgotten that there had been a potato
rot in the eastern counties, which had seriously affected
their traffic; but, in addition to that cause, the sha-e-
-holders must remember that during the past half year
they had 69 miles of new line to make, which had added
1,3251. to the revenue account for salaries which had
previously been debited to capital.—(Hear, hear.) It
had been complained that the Norfolk line had increased
their expenditure; but that was a great mistake, for,
comparing the four weeks last past with the cor-
responding period last year, it would be seen that
the working expenses had been reduced by 370/.
per week in consequence of the continuous working of
the line, without. at all impeding the efficiency of the
line.(Hear, hear.) Now, with regard to the dividend,
that was a matter which the directors were anxious to
leave in the hands of the shareholders, but this they did
say, that the present position of the concern would not
admit of their safely paying more. If the truth must
be told, the rock they had split upon was in paying a
dividend of 9s. per share a few half-years ago, while in
the previous half-year they bad only paid 3s. per share,
The proper reserve was made then for depreciation,
and the new lines which were then not opened, but were
rapidly approaching completion. The working expenses
were kept down as low as possible, compatible with the
efficiency of the railway. They did not amount to more
than 991. per mile; and, taking into consideration the
nature of their traffic, and the heavy character of their
engines, he felt that sum would bear comparison with
any other line in the kingdom. Allusion was made in
the report to the 61. per cent. guaranteed stock, but he
was happy to tell the meeting that the dire ctors did net
intend issuing the remainder of that stock for the present.
A SHAREHOLDER-110w many are there left?
Mr. RONEY, the secretary, replied that there were
3,400 shares left.

The CHAIRMAN said he was anxious to take that oppor •
tunity of stating that hitherto they had been proceeding
upon an erroneous principle, but he declared confidently
that the statement of their affairs issued to-day was
faithful and accurate. He hoped, therefore, the share-
holders would look impartially into that statement, and,
having carefully considered it, he was quite sure they
would be convinced that the policy the directors were
pursuing was the best that could be devised for
retarding the downward career of their property.
In reference to the Norfolk question, ho knew that there
was a good deal of diversity of opinion upon that sub-
ject, but he thought if they would estimate this question
by figures, it would turn out that much error prevailed
in this matter. The earnings of the Norfolk line during
the past half•year amounted to 60,8201., which gave a
dividend on the Norfolk capital of ss. Bid. per share,
after paying working expenses, including a mileage pro-
portion for direction and management, which, it must be
borne in mind, had not increased in consequence of
their taking the Norfolk line. Had the Norfolk line
not been debited with those charges the earnings would
have given 6s. id. per share. The traffic which the
Norfolk line had brought on their own gave a sum of
56,7811. Now, the way to look at this question was
this:—They ought to ascertain how far the Norfolk line
could pay, at present or ultimately, the same dividend as
themselves. Their own dividend amounted to ss. 6d.;
their own officers hod proved to them that the Norfolk
line yielded ss. Bd., and when they looked at the conse-
quences which might result from the Norfolk line, be
felt that there was no cause for hesitation in taking up
that railway.—(Hear.) Ile now came to the steam-boats.
They proposed to advance to the Steam-boat Company
420,000/., and looking at the ergo trade these boats and
the Harwich line were likely to bring upon their line, he
was convinced that it would be a suicidal policy to reject
this scheme.—(Hear, hear.) He had now gone through
the topics of the report, and after moving the adoption
of the report, it only remained for him to state that the
following telegraphic communication had been received
from Mr. Hudson:—" I had not an opportunity of reply-
ing yesterday, but will write to-morrow. Mr. Wadding-
ton may use his discretion as to the reason of my resig-
nation. He is aware it was a matter I had long contem-
plated."
A PROPRIETOR asked the following questions:-I►t.
Does the Eastern Counties Company rent the line of
railway from Readham to Lowestoffe, a distance of 114
miles; which I am informed does not pay its working
expenses; and, if so, must we continue running trains
on it? 2d. Have they leased the Lowestoffe Harbour
with the Norfolk line, as I have ascertained it will cost
100.000/. to finish, besides keeping it in repair, and
what is the revenue you expect to receive from the
said harbour ; will it ever pay anything ? 3d.
What authority have the Eastern Counties' directors
to amalgamate with the Norfolk line? 4th. Was Mr.
Peto about to be appointed deputy-chairman? and sth.
What number of shares does our chairman (Mr. Hud-
son) hold?
_ _ _

The CHAIRMAN had already answered the first ques-
tion. The line mentioned was included in the receipts
of the Norfolk company. To the second question he
stated, that the railway and station would not cost more
than 1,300,0001 To the third, a special meeting of the
proprietors had given them the authority.
Mr. HONEY stated, in answer to the last question, that
Mr. Hudson held 625 shares.
A PROPRIETOR—How many of them were given to
him ?

Mr. RONEY—Not a single share.
Mr. Box said the directors were as much to
blame as Mr. Hudson for the deplorable state
of their line. They sat by while he indulged
in statements that never could be realised, if
indeed, there was any truth in them, without checking
them in the least, and he should therefore move the fol-
lowing resolutions :-Ist. " That a committee of share-
holders be now appointed to make strict and searching
inquiry into the financial condition of the Eastern
Counties Railway Company, and for taking into their
consideration the cost of construction pr r mile, executed
and to be executed, and the cost of the
several stations; showing what has been for
the list three years, ending January 4th, 1849,
the amount of income per week arising from the traffic
of this company, and any other under its management,
from first, second, and third-class carriages, express,
Parliamentary, or other carriages sepra,tely, arid from
every other sourer, arranged under separate heads,
stating what has been the working expenses per
mile per week ; also the number of officers engaged,
with the amount of salaries paid to each annually ; also
the amount of law expenses incurred; also stating the
various officers that have power to grant free passes to
their triends, &c., the number issued wet kly for first,
sec. nd, and third class carriages. 2d. That the said
coinnAtt,e be empowered to examine all book!, pipers,
documents, and vouchers belonging to the company. sad
all persons in the employ of the co ',puny that they
may deem necessary, and that they do make
a full, clear, and detailed report hereof to a special

meeting to he convened for the purpose at 2s early a
period as possible."
During the reading of these resolutions another scene
of confusion took place, the meeting appearing to be
unanimous in demanding that the directors should be
one and all turned out.

Mr. PRICE was ready to second these resolutions
because it would enable him to express his gratification
that Mr. Hudson had not had the brass to show his face
to•day.—(Laughter.) He had shows his good sense in
absconding from the meeting, and it would have the
heneficiA *effect of convincing the world that Mr. Hud-
son had humbugged them from beginning to end.
Mr. Sergeant GAZELEE rejoiced that the day of retri-
bution has come at last. Oi ten had he been bullied by
Mr Hudson, but it was his turn now, and he would not
spare the Hon. Gi ntlemau or his myrmidons in the
direction.—( heers.)
A PROPRIETOR—That's it, Sergeant; kick him well
tiv't, down.

Mr. Sergeant GAZELEE would not have the meetin4.
trial the directors with oisresptct, but they had bee,
tried and hound wanting, and now bis advice to the
shareholders was to do nothing that the directors
asked theta, but at once appoint a committee of inquiry.
—(Cheers.) Stop the solicitors' bills, let the dirk ctors
simply manage the line for a while, and in the meantime
let there be a searching and sifting investigation of their
affairs.—(Cheers.)

Mr. D. PRICE denounced the Norfolk Company as a
bankrupt concern, and pronounced the attempt to amal-
gamate it with the Eastern Counties to be bcaudaious
fraud.--7(Che(D.)

Mr, DELI'S suggested that a committee should be ap-
pointed withoat limiting its functions.
Mr. CASH asked if the directors had any objection to
the appointment of a committee.
'The CHAIRMAN wished to answer the charges which
had been made against the directors before he replied to
Mr. Cash's question, which again led to another scene
of confusion, and again brought into active play the
lungs of the dissatisfied shareholders, who were clamor-
ous for the ejection of the directors. The yells and shouts
were be, oaddescription, but above the storm of voices the
cries most distinctly heard were "Turn 'em out," " Send
'cm after Hudson," "Down wish them," " Pitch 'em over."
The CHAIRMAN said, if the meeting persisted in its
present conne he:would:quit the:chair, and leave it for the
world to decide who had acted with propriety, the chair-
man or the meeting.—(Cries of "Do it, do it.) Now, in
answer to the question of Mr. Cash, he begged to state
that the directors had no objection to the committee.—
(Tremendous cheers, and cries of " Why didn't you say
so before?") When he:consented to take the chair he
anticipated that there would be an up-heaving of the
billows; but he did not think the storm would have been
difficult to quell.--(" Oh, oh," and reiterated cries of
" Turn 'em out.") However, the directors had no
objection to the cotnmitte e, and they freely placed them-
selves upon that point in the hands of the meeting.—
(Hear, hear.) _ _ _

After some further discussion the amendment was
withdrawn, and the following one substituted for it:—
" That a committee of investigation be appointed to in-
quire into all the affairs and accounts of the company,
and report their opinion thereon to an adjourned meet-
ing, and that they be at liberty to send for books, pa-
pers, and accounts, and examine any parties they think
fit, and to employ such accountants as they may re-
quire."

- Mr FISHER proposed that they should adopt the re-
port, so far as the dividend was concerned.—(No, no.)
Mr. Cisa suggested that the committee should have
power to employ a solicitor.—(Cries of " No, no ; we
h•:ve had enough of lawyers, we'll have none of 'em.")
A PROPRIETOR asked if the sittings of the committee
would be opened to the shareholders.—(No, no.)
Another PROPRIETOR—Who pays the expenses of
the accountant?

The CHAIRMAN said he supposed the company would
have to pay the expenses.

The resolution was then put and carried, only four
hands being held up against it.
The CHAIRMAN declared the amendment to be carried
amid.t tremendous cheering.
After another scene and much confusion, it was
agreed that the committee should consist of nine, and
five should form a quorum.
The CHAIRMAN then suggested that Mr. Cash and
his friends should retire and consider who should con-
stitute the committee.

Mr. CASII—I can't get out.
The CHAIRMAN-I'm sorry you got in.—(Laughter.)
Mr. CASK proposed that the qualification of a coin
mitteeman should be 50 shares.

Mr. Box saw no reason why the qualification
should be greater than that of a director, and
he si-mid therefore move as an amendment that the
qualification should be 20 shares.
The amendment was, however, :negatived by a large
majority, and the orginal motion was declared to be car-
ried amidst renewed cheers.
Amidst another scene of uproar the meeting then pro-
ceeded to the election of members of the committee.

Messrs. Christie, Cash, Sherwood, Ellis, and Mayhew
were then elected, with power to nominate the other
four members of the Committee.
A resolution was then proposed for the abandonment
of the. Norfolk Amalgamation Bill, but the Chairman
refused to put it, and of course another and still more
noisy scene ensued.
The CHAIRMAN moved that the matter be left to the
Committee.
This motion was ultimately agreed to, and petitions
to Parliament against the present system of railway
rating.
Thanks were then voted to the Chairman, for his able
and impartial conduct in the chair, and the meeting broke
up at six o'clock.

SOUTH WALES RAILWAY.
(THIS DAY.)
The eighth half yearly meeting of the proprietors o
this company was held at the Great Western Railwa)
Station, Paddington, at 12 o'clock; Charles Russell, Esq.
occupied the chair.

The CHAIRMAN said, during the period a railway was
under construction, the most important subject was the
progress of the works, and the proprietors looked rather
to the report of the engineer than to that of the dirt ctors
for matters that most interest them in that respect.
It was, however, the duty of the directors
to explain the general principles by which they were
guided—to tell the proprietors why they thought their
enterprise likely to be a most successful one, and why it
was expedient to have it completed as early as possbible
and above all things in these days how the capital .might
be applied with the moat economy and eff,ct. When
they began the South Wales Railway, money for rail-
way purposes was abundant, and confidence in railway
enterprise was higher. The course it was thought expe-
dient to pursue was to complete the line from one
extremity to the other, simultaneously, in the leas t
possible space of time. They had hoped by the adoption
of this course to avoid any appropriation of any portion
of their capital to the payment of interest, and upon
other expenses incidental to the completion of the work,
thus preserving the great bulk of the capital, and by
that means render the works profitable in the
least possible space of time. Under the circumstances
that then rxisted, he believed that was the most expe-
dient course that they could pursue, and they accord-
ingly adopted it. But those circumstances shortly after
were materially changed. Money could only be obtained
with great difficulty, and their calls for a considerable
period were paid slowly, and not unfrequently reluctantly,
On many of the shares they had not been able to obtain
any payment at all, and the consequence had been that the
directors that day had applied for their sanction to forfeit
a certain portion of the shares so circumstanced. They
then thought that it would be well to complete the line by
successive portions; and they determined, in the first
instance, to complete that portion which, by common con-
sent, was considered to be the most productive—namely,
between Newport and Swansea—to complete afterwards,
so as to open it simultaneously, that portion between
Grange Court and Newport, when that portion should
have been completed to construct that portion from
Swansea to the Western extremity. They had de-
voted all their energies to the accomplishment of this
object, because they believed that by the opening of the
line from Newport to Swansea they should be enabled
to afford an incontrovertible proof of the value of
the line by the profits • which they should
realise, and which they would be enabled
to place as an offset against the interest which neces-
sarilyy increased as the sums expended upon the line
became larger. In order to estimate the present posi-
tion and the future prospects of the company, they
would do well to look back to the gloomy years
of 1847 and 1848 —to look back beyond the
years of excitement and speculation of 1845 and 1846.
They would remember that their line had not its origin
in those periods of railway insanity which they had
passed through since it had origin in 1843 and 1844,
which were sober and calculating years. Tho pro-
spects of the Company were then most cautiously exa-
mined. The traffic was most carefnlly taken, and instead
of being exaggerated or unfounded, the returns to the
Stamp-office being relied upon. The result was there-
fore ascertained by the fullest inquiry; instead of being
exaggerated, it was reduced to its proper limits, and
nothing had occurred since that time to alter the views
with respect to the South Wales, which were formed
in 1843 and 1844. Had any change taken place in the
character of South Wales? On the contrary, its re-
sources had been gradually developed. Indeed, only a
few evenings ago, that a curious and interesting paper
was read before the Institute of Civil Engineers on the
subject of the South Wales coalfield. It was there
stated that the South Wales coal-field abounded in every
description of coal from bitumen to anthracite ; but if it
was merely equal to that of other parts of the country,
it would be a great acquisition. It was said that the
coal was to be found in inexhaustible quantities, and
they all knew how applicable those coal were to the
purposes of navigation and locomotion. If these facts
were true, and there was no doubt them, with such a
harbour as Milford on the west coast, and a railway
passing through the entire length, could there be any
doubt that South Wales must become one of the great
seats of manufacturing industry. • It might be
said that traffic statements had not, in all
cases been fulfilled. Unquestionably this had been the
case; but then the exceptions related to districts which
had been well supplied with railway accommodation.
Frequently what was gained by one railway was ab-
stracted from another. flaying alluded to the introduc-
tion of lines into localities not prepared for them, he
proceeded to observe that the South Wales
had no oppon, nt—that all the branches were
tributary to it, and traverse d great hives of industry
and of mineral wealth; that they thought they had
acted well in proceeding with the portion of the
line likely to pay; that the lines having
improved, money could be borrowed at 4 per cent., at
which they hoped to be enabled to raise the required
trolley iii the e, eut, of their acceeding to the issuing of
debeeture b tele.

The SECRETARY then read folluw:ng report and
statement of accounts :

" The directors have., been steadily occupied during

the last half-year in giving effect to the detc-ininaticn
adopted at the August meeting to proceed with the CCM-
struction of the Sou h Wales Railway by successive
portion, beginning in the first instance with the section
which lies between Newport and Swansea, so that that
part of the line may be brought into operation at The
earliest practical period.

" With that view the directors have entered into en-
gagements with the several contractors employed to the
west of Swansea, In the manner recommended by the
engineer, by which they have consented entire Iy to sus-
pend their works fur the present, placing them, however,
in such a condition that the) may suff,r very little
injury from tee delay, and that they may be again
resumed when such- a course shall be considered
expedient. They hope also that the landowners with
whom agreements have been made, will be induced to
afford every facility for postponing the completion of the
purchase ..f their land as the mest certain means of
ehablibg the cotepan) t complete an important portion
of th.. line in the ti:st instance, and afterwards to carry
forward the woe ks, as soon as practicable, to the western
extremity of the Priecipality.
"The directors have thus concentrated, for the pre-
sent., all their exec time; and resources on the works be-
tween Newport. and Swansea; and though the pressure
of the times has prevented the it T rosecuting
:hem with ad the rapidity that could be desired, the
proprietors will perceive, by the report of Mr. Brunel,
which his annexed, that not only considerable progress
has been matte in all the he..vier works, but that various
detached portions, amounting in the whole to about
twenty miles, lout of the entire distance of sixty miles,
are ready for the reception of the permanent way and
the rails, the la)ing of which will be commenced withoat
delay. . . . .

" simultaneously with these operations, the works on
this side of Newport are precteding satisfactorily,
alai a communication has been held with the direc-
tors of the Gloucester and Forest of Dean Railway
resp:cting the eight miles of the line between Glou-
cester and Grange Court, which are to be executed by
that company. It would be obviously unnecessary, a
far as the South Wales Company are concerned, to com-
plete this part of the lineztill the portion beyond it is
ready, and Mr. Brunel, who is also the engineer of the
G?oucester :and Forest Dean Railway Company, is re-
galating his progress on their line by the progress he is
able to make in our works. -

" The directors look to the opening of the lino to
Swansea as an object of the deepest importance, be-
cause, thoug they have been gratified to observe the
great improvement which has recently taken place in
the value of the shares, demonstrating as it does, cone
elusively, that the depression proceeded from general,
and not from peculiar causes, yet they feel satisfied that
nothing can so effectually restore the public confidence,
and can so certainly and permanently improve the just
value of your ;property, us the incontrovertible proof
which will be afforded by actual experience, of the traffic
which you are justified in expecting on your line.
" The directors did not think it just or reasonable to
the proprietors who had embarked their property in the
undertaking, but who under the recent pressure have
found a difficulty in paying up their calls, to
exercise against them the powers conferred by the
Act, while that course could by possibility be
avoided; but they think the time is now arrived to carry
into effect the determination expressed in their last ree
port, by forfeiting those shares at least on which the
second and third insatments have not been paid. They
therefore proceeded to forfeit them at a board of
directors held on the 24th of January, and a resolution
will be submitted to you, in conformity with the provi-
sions of the Act, for confirming that forfeiture. Their
number is 1,261, and the amount which has been received
on them is 4,137/. 10s. The directors propose that
those shares should not be reissued until the improve-
ment in the money market shall be so confirmed, that
they may either submit same general scheme for re-allot-
ting them among the shareholders at an advantage to
them, or that they may be then gradually absorbed, so
as not to produce any sensible effect on the value of
your property.
" The forfeiture of these shares does not involve the
consequent abandonment of the claim which the Come
pany possesses over the proprietors to whom they be-
longed, for the calls previously in arrear. On The
contrary, it is, the fixed purpose of the Director to
proceed to the recovery of these sums in every case
which affords prospect of succe,s, and now that an im-
provement has taken place in the Money Market, they
feel that the performance of their duty to those propri-
etors who have paid with regularity, prescribes the
adoption of active measures against those who may be
in arrear on more recent calls.
" The half of the South Wales capital having noir
been called up and received, the directors recommend
that at the present meeting, an authority should be
given to borrow money on bond or mortgage. They
hope that in the improved state of the money market,
shall find no difficulty in obtaining sufficient
resources by loans, in which case they will be enable° to
suspend for a time further calls on the proprietors, 1314
to proceed with greater rapidity with their works during
the summer months which are now approaching.
" The directors consider that they have been fatty.
nate in inducing C. ii. M. Talbot, Esq., M.P., of Mar'
gam-park, to accept a seat at the board, in the place
of
Colonel Owen, who resigned, as they feel that his large
interest in the undertaking, and bis geeat local know'
ledge and influence, will render him a most important
and valuable acquisition in the management of your
affArs.

"The following directors retire by rotation on the
present occasion, but offer themselves for re-election
James Alston, Esq., Sir J. J. Guest, Bart., M.P., Ste'
phen Lewis, Lq., C. R. M. Talbot, Esq., M.P.
Dohree, Esq., has, to the regret of the directors, tee'
dered his resignation as one of the auditors of the Com'
pany. It therefore becomes the duty of the proprietors
to appoint another gentleman as auditor in his place.
The engineer's report confirmed, in dktail, the state'
ment in the report of the directors:--

GENERAL STATEMENT OF RECEIPTS AND PAYMENT*
TO 31ST DEC., 1848.
Deposit account z d•
2d instalment of 21. lOs per share ... 140,000 0 0
3d ditto 51. ... ... 270,440 0

4th ditto 5/.
sth ditto 31.
6th ditto

7th ditto £5