The Sun.
London, England, 1849-03-01 00:00:00

SOUTH WALES RAILWAY.

The eighth half-yearly meeting of the proprietors of
this company was held yesterday al the Great Western
Railway Station, Paddington, at twelve 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 directors
for matters that most interested 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 possible,
and.above all things, in these days, how the capital might
be applied with tke most economy and effect. 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 least
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 existed, ho 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-
sarily 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 kok 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 its origin in 1843 and 1844,
which were sober and calculating years. The pro-
epects of the Company were then most cautiously exa-
mined. The traffic was most carefully 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 ‘V ales? 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 coals were to the pur-
poses of navigation and locomotion. If these facts were
true, and there was no reason to 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. Having alluded to the introduc-
tion of lines into localities not prepared for them, he
proceeded to observe that the South Wales
had no opponent—that all the branches were
tributary to it, and traversed 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
money in the event of their acceeding to the issuing of
debenture bonds.

The SECRETARY then read the following report and
statement of accounts :

" The directors. have been steadily occupied during
the last half-year in giving effect to the determination
adopted at the August meeting to proceed with the con-
struction of the South Wales Railway by successive
portions, 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 entirely to sus-
pend their works for the present, placing them, however,
in such a condition that they may suffer very little
injury from the 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 of their land as the most certain means of
enabling the company to complete an important portion
of the line in the first instance, and afterwards to carry
forward the works, as soon as practicable, to the western
extremity of the Principality.
"The directors have thus concentrated, for the pre-
sent, all their exec Lions and resources on the works be-
tween Newport and Swansea; and though the pressure
of the times has prevented their prosecuting
them with all the rapidity that could be desired, the
proprietors will perceive, by the report of Mr. Brunel,
which is annexed, that not only considerable progress
has been made in all the heavier works, but that various
detached portions, amounting in the whole to about

twenty miles, out of the entire distance of sixty mile?,
are ready for the reception of the permanent way and
the rails, the laying of which will be commenced without
delay.

" Simultaneously with these operations, the works on
this side of Newport are proceeding satisfactorily,
and a communication has been held with the direc•
tors of the Gloucester and Forest of Dean Railway
respecting 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, as
far as the interests of the South Wales Company are
concerned, to complete this part of the line till the por-
tion beyond it is ready, and Mr. Brunel, who is also the
engineer of the Gloucester and Forest of Dean Railway
Company, is regalating his progress on their line by the
progress he is able to make in our own A ork s.
" The directors look to the opening of the line to
Swansea as an object of the deepest importance, be
cause, hough they have been gratified to observe the
great improvement which has recently taken place in
the value of the shares, demonstrating as it does, con-
clusively, that the depression proceeded from general,
arid 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, as 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 ressonable 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 re-
port, by forfeiting those shares at least on which the
second and third instalments 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 re-issued until the improve-
ment in the money market shall be so confirmed, that
they may either submit some 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 com-
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 directors to
proceed to the recovery of these sums in every case
which affords prospect of success, and now that an im-
provement has taken place in the money market, they
feel that the performance of their duty to those proprie-
tors 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 now
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,
they shall find no difficulty in obtaining sufficient resources
by loans, in which case they will be enabled not only to
suspend for a time further calls on the proprietors, but
to proceed with greater rapidity with their wt rks during
the summer months which are now approaching.
" The directors consider that they have been fortu-
nate in inducing C. R. 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 his great local know-
let'ge and influence, will render him a most important
and valuable acquisition in the management of your
affairs.

" 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, Esq., C. R. M. Talbot, Esq., M.P. B.
Dobree, Esq., has, to the regret of the directors, ten-
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 detail, the state
ment in the report of the directors.