The Sun.
London, England, 1847-03-19 00:00:00

RAILWAY BILLS.

REPORT of the COMMISSIONERS of RAILWAYS
on certain RAILWAY BILLS comprised in Groups
Nos. 12, 14. and 27.
By the first of the. five Bills in the above Groups, it is pro-
posed to give power to the Lynn and Ely Reilwey Company
to extend their line to Bury Se Edmund's, and for that pur-
pose to increase their capital by 464,800/., and to burrow
154,9001.
By the second Bill it is proposed to authorise the same
Company_ to make an extension from Wisbeach to Spalding
and Holbeach, and to raise a further capital for that purpose
of 374,800 L, and to borrow 124,9001. By the third, to make
a deviation in their line, and to construct docks within the
borough of King'. Lynn, and to raise 144,000/., and to bor-
row 48,0001. for these purposes ; and by the fourth, to raise
36,0001 , and to borron 12.000 L, In order to make a Naviga-
tion from Lynn to Wormegay. By these last three Bills,
being those comprised in Group 27, the company would be
enabled to raise 551.8001, and to borrow 184,900/.
By the four preceding Bills, if passed, the Lynn and Ely
Railway Company would be enabled to increase their capital
by 1,019,600!, and to borrow 239,800/.
By the fifth, or last of the above-mentioned Bills, and
which is comprised in Group 14, it is proposed to empower
the Lynn and Ely, the Ely and Huntingdon, and the Lynn
and Derehem Railway Companies to unite under the title of
the East Anglian Railways Company, and to authorise the
new company to raise an additional capital of 382,0001., to
borrow 127,400/, and to lease their railways to the Eastern
Counties Railway Company; but it is not proposed to give
by this Bill any power to the Eastern Counties Railway
Company to take the lease. It must be observed, that the
foregoing sums do not agree with the sums returned to the
Commissioners by the companies, who state that it is their
intention by this Bill to take powers to raise only 265,600/.
land to borrow 88,500/. The difference is explained by them
as follows:
"By the ' Ely and Huntingdon' Railway Act of 1846, the
Ely and Huntingdon Railway Company is empowered to
raise an additional capital of 120,000/.. which, at the time the
above Amalgamation Bill was deposited in the Private Bill
Office (viz., 31 December, 1844), had not been raised; but
as the above Amalgamation Bill repeals such Act of last
session, it was necessary to give the Amalgamated Company
power to raise the above 1200.'1. The three Companies
were also desirous of raising an additional capital of 262,200/.
for the purpose of laying down a double line of rails on their
railways, the original estimates fur which railways contem-
plated earthwork and bridges for a double line, but the per-
manent way for a single line only. These two amounts of
120,000/. and 262,2001. constituted the sum of 382,0001. speci-
fied in the Bill.
"Since the Bill was deposited, a portion of the 120,000/.
(namely 40,1971. 10s.) has been raised by the creation of new
shares, which new shares have been appropriated amongst
the proprietors in the Ely and Huntingdon Railway Com-
pany; and it has been agreed that the sum of 79,802/. 10s.,
the balance of the 120,0001, shall be set apart for the pro-
prietors in the Lynn and Ely, and Lynn and Dereham Rail-
way Companies. It is proposed to introduce into the Bill,
in Committee, clauses to carry into effect this arrargement,
and to reduce the amount of capital to be raised under the
Sill by the sum of 120,00 W. Such capital would then amount
to 262,2001., which last-mentioned sum it is proposed to in-
crease to the sum of 265,6001, to enable the same to be more
equally divided amongst the proprietors of the three Com-.
panies."
The Act incorporating the Lynn and Ely Railway Com-
pany was passed on the 30th of June, 1846; it authorised
the Company to raise a capital stock of 300,000/., and to
borrow 100,000/. Under this Act, 12,000 shares of 25/. each,
representing, consequently, the whole of the capital autho-
rised, have been issued, and 201. per share have been called,
224,7501. have been received, and the arrears on the calls
amount to 15,2501.
Money has been borrowed on debentures, in sums varying
from 2001. to 5,000/., to the amount of 99,7501, the rate of
interest being five per cent. 53,2501. is to be paid off in
three years; 20,600/. in five years; and 25,9001. in seven
years. No special provision has been made for the payment.
Of the capital authorised by the first, and only Act of this
company, 51. per share, or 60,000/., remain to be called ; but
the power to borrow has been very nearly exhausted, and
the loans can only be increased by 2501 The whole of these
funds will be required for the works already authorised.
The Lynn and Dereham Railway Company was incorpo-
rated by an Act passed in 1845, and authorised to raise a
capital of 270,000 L, and to borrow 90,0001. The capital stock
has been created by 10.800 shares, of 25/. each, on which
15/, per share has been called, and 154,4681. received ; the
arrears amounting to 7,532/. Loans have been obtained at
five per cent. interest on debentures, varying in value from
2001. to 3,0001, to the extent of 62.650/., of which 2.200/. is
to be paid off in three years, and the remainder in five years.
It does not appear that any special provision has been made
for the payment.
The company retains power to call for 10/. on each share,
or for 108,000 e. and to borrow 27,3501, and these funds, it is
stated, will be required for the works now in progress.
The Ely and Huntingdon Railway Company was incorpo•
rated by an Act passed in 1845, and authorised to raise a
capital of 194,400 e, and to borrow 64,800/. By an Act
passed in the last session, it was empowered to raise a fur-
ther capital of 120,0001., and to borrow 40,000/. Under
these two Acts it has received power to raise a capital of
314,400/, and to borrow 104,8001., or to expend altogether
419,2001.
The capital stock authorised by ;the first Act, was created by
the issue of 10,800 shares of IS/. each. On these, 121. 10s. per
share has been demanded, and 115,953/. 15s. received, the
arrears amounting to 19,046/. ss. Under the second Act,
11,485 shares of 31. 10s. each have been issued, representing
a capital of 40,1971. 10s., or about one-third of the stock
authorised to be raised by the Act. Nothing has been re-
ceived upon them, but a call of 1/. per sh .re will become
due on the 3d of April, and the reason given by the company
for the present issue of these shares has been quoted in a
preceding paragraph. No money has been borrowed, and
the funds available to this company for their works in pro-
gress may be considered, therefore, to amount to 284,2001,
as they retain power to call for 55. 1.03. on 10,800/. shares, to
obtain 120,0001.,-under the second Act (for only a part of
which the shares have been created and nothing received),
and to borrow 104,800/. It is stated that these sums will be
rc9uired for the works authorised.
The funds available to the three companies under their
present Acts, and the additional funds applied for, are shown
in Appendix, No. 2.
No nominal addition has been made to the capital of any
of these companies, nor any guaraete ► given, nor 821 e, nor
purchase, nor lease of any other line effected.
The deeds considered nece,sary for the Bills named at the
head of this report have been signed by the directors of the
three companies, on behalf of, and under the authority of
a general meeting of their respective companies, and there
are no other subscriptions. The amount thus subscribed for
is 549,000/., a sum considerably less than three-fourths of the
capital proposed to be raised by the Bills in question. The
following explanation has been received from the coin-
pauies :
" With regard to the two Bills for authorising extensions
to Bury St. Edmund's, and to Selding and Holbeach, by
which an excess of capital over the estimates is asked,
amounting in each Bill to 134,800/., the explanation is as
follows:
" These two sums of 134,800/., represent the new capital
sought to be raised by the Amalgamation Bills. and were
inserted in these Bills in order to prevent any difficulty that
might have arisen from the Amalgamation Bill having been
lost on standing orders, or from any other cause; but if the
Amalgamation Bill passes, it is proposed to reduce the
amount of the capital to be raised on each of these Bills to the
amount of the estimate.
" The excess of capital in the Docks and Navigation Bills
over the estimate is taken as a margin, which has generally
been allowed in Bills of a similar description, to enable the
promoters to execute works which, although not necessary
ni the actual construction and use of the works, may be
found useful in carrying the same into execution, or may
be required in the passing of the Bill through Parliament."
There are several points in connexion with these trans-
actions, to which, in the opinion of the Commissioners, the
special attention of the Committees on the Bills ought to be
directed.
Ist. It appeared that, by the Bill for the amalgamation of
the three companies, power is proposed to be taken to raise
capital to the amount of 382,000/. It is proposed to reduce
this sum, for reasons which have been already stated; but
power is to be retained of raising the sum of 265,6001„ which
is stated to be for the purpose of laying down an additional
line of rails, the original estimate having contemplated a
permanent way orly for a single line. The purpose for
which the money is proposed to be raised does not appear in
the Bill; and the Commissioners are informed that it passed
the standing orders as a Bill of the third class, that is to say,
as a Bill by which "no further work than such as was au-
thorised by a former Act is proposed to be made." Conse-
quently no estimate or subscription contact for any portion
of this capital has been depositec.
2d. It appears that the above sum of 265,6001. is not only
authorised to be raised by the Amalgamation Bill, but also
that a power for raising a nearly corresponding sum is pro-
posed to be taken is the Bury St. Edmund's, and Spalding
and Holbeach Extension Bills, over and above the sums
which are covered by the estimates deposited for those Bills.
The purpose for which this sum is required does not appear
in either of these Bills; but the promoters state that they
have in fact inserted a power of raising the same sum twice
over, fur the reasons which have already been quoted in their
word. The Commissioners think it right to call the attention
of the Committee to this fact, as an unusual, if not an irre-
gular proceeding.
31 By the Deviation and Lynn Dock Bill, the capital
authorised to be raised is 144,0001., the capital covered by
the estimate being only 120,300/.7 and by the Lynn and
Wormegay Navigation Bill the capital authorised to be
raised is 36,0001, the capital covered by the estimate being
31,3001 The excess. amounting in one instance to 23,700/.,
in the other to 4,70e1., is stated by the promoters to be a
margin which may enable them to execute additional works,
which, though not necessary, may be found useful, as has
already been quoted from their statement. The 34th stand-
ing order of the House of Commons requires an estimate to
be made " of the expense of the undertaking under each
Bill." Without presuming to express an opinion on the con-
struction of this standing order, the Commissioners would
remark, that the intentions of the House of Commons in re-
quiring the deposit of a subscription contract to the amount
of three-fourths of the estimate will be frustrated, if the
practice is permitted of taking power by the Bill to raise
capital for the execution of works not contemplated in the
estimate. If the works in question are intended to be exe-
cuted, they should be included in the estimate; if they
are not so intended, no power to raise money for them should
be taken by the Bill. There appears to be no good reason
why any " margin" which may be required should not be in•
eluded in the estimate.
4th. The subscription contracts for all these Bills havebeen
signed only by the directors of the three companies, on behalf
of the companies, and under the authority of special meet-
ings, eight directors having thus signed for 549.0001. The
deposits are stated to have been paid either out of the funds
of the companies or on the private credit of the directors.
The Commissioners would here refer to their remarks on this
subject in their report on the Ipswish and Bury Railway
Company's Bills, adding, however, that the proportionate
amount of new capital, proposed to be raised under the pre-
sent Bills (though very considerable), i 9 not nearly so large
as in that case. The capital already authorised to be raised
by the three companies is 884,400!., and the loans 294,800/.
The capital actually raised is 495,1711. 155., and the loans
162,400/. The new capital proposed to he raised is 1,015:600/,
and the loans 3:38,433/., making together 1,354,03:31, a sum
which is more than two-and-a-half times the amount actually
paid up by the shareholders, and for which, no guarantee is
offered but the subscriptions of the directors on behalf of the
company.
sth. It will be seen that, by two of the Bills,
it is pro-
posed to authorise the Lynn and Ely Company to construct
a dock and a navigation. It is stated that a dock is required
for the purpose of facilitating the loading and unloading of
goods between the railway carriages and the vessels by which
they may be brought or taken away; and it is also stated
that the canal is required not only as a navigation but also
for the purpose of supplying the dock with water. The ex-
pediency of conferring, upon railway companies powers of
this kind, which relate to matters not immediately connected
with their ordinary functions, or the purposes for which they
are incorporated, appears to be a question of considerable
importance, especially when it is proposed to give such com-
panies the exclusive control over docks or canals. In the
opinion of the Commissioners the grant of such powda