The Sun.
London, England, 1846-04-24 00:00:00

you for that qualified interference with this rail-
way speculation, for me to describe the circum-
stances, and detail the reasons why I think it
necessary to depart from the ordinary course observed
in such matters, in order that what I now propose may
not be taken as a precedent on future occasions. In the
first place I shall state to the House the amount of ca-
pital already pledged for the Railway Acts already ob-
tained from Parliament; and also the amount of capital
which would be necessary for the Bills now pending,
in order to carry out into effect those projects. I
find that in 1844 the number of Railway Acts which
obtained the sanction of the Legislature was thirty-seven.
The capital authorised to be raised by share amounted
to 13,900,0001., and that authorised to oe raised by loan
amounted to 4,600,0001., being a total amount of capital
authorised to be raised by share and loan, by
Bills passed in 1844, of 18,500,0001. In 1845 the
number of railway Bills were 180, and the share-
capital authorised to be raised by those Acts amounted
to 45,585,000/. ; and the total amount of loan was
14,635,000/. ; being a total amount of capital authorised
by Acts in 1845 of 60,400,0001. I have a return of the
names of those Bills which were under the consideration
of the Committee, and I find that the number of Eng-
lish Bills amounted to three hundred and sixty-nine ;
that the number of Scotch Bills were one hundred and
seven, and that of the Irish there were forty-three, being
a total of five hundred and nineteen Bills for the United
Kingdom. I find from these that ninety English Bills
have capital to the amount of 184,000,000/., and, supposing
they received the sanction of Parliament, an additional
loan of 58,000,0001. might also be raised. The capital
proposed to be raised by the Scotch Bills amounted to
28,500,000/., with a loan of 9,500,0001. By the Irish
Bills it was also proposed to raise 18,400,0001., and loans
to the amount of 5,000,000/. would be sanctioned. So,
therefore, the total amount of capital authorised to be
raised by English, Irish, and Scoth Bills amounted to
231,322,000/., and the total amount of capital authorised
to be raised by loan amounted to 72,000,000/., making a
total, independently of invested capital authorised by
Acts in 1845, of 304,000,0001. I know it is.quite true
that many of these Bills are delusive, that many of them
are of a competing nature, and that the carrying out of
many of them would be unnecessary for the public interest.
But a very great reduction must be made of that total
amount ; and certain it is that Parliament will reject
many of the Railway Bills submitted for its considera-
tion and approval during the present session. In short,
many of the Bills are incompatible with the wants of the
public; 4till, whatever deduction is made in the number of
Bills during the present session, the total amount of capi-
tal, if there be no interference of Parliament—the total
amount of capital which will be sanctioned in the course
of the present session will be much greater than, having
a due regard to the public interest, ought to be applied
to the construction of railways. Now, I am afraid,
owing to the number of Bills, unless there be most rigid
inquiry by the committees appointed to inquire into the
subject, I fear that at the end of the session, Bills will
pass which, under ordinary circumstances, would
not receive the sanction of Parliament.—(Hear,
hear.) Now I will proceed to state what
amount of capital has been paid up out
of the amount which has been authorised to he raised
by the Bills which have already received the sanction of
Parliament. Now, in respect to Bills which passed
bcfore the year 1844—1 am speaking of the Bills which
passed before the session of 1844—the sum of 20,867,000/.
has not yet been called up upon the shares in the rail-
ways which obtained before this period. Again, that
must not be taken as the real amount of capital autho-
rised to be raised and ready to be called in, but never
theless remaining unpaid, because, in many cases,-
money has been raised on loan on the security of out-
standing shares—a course which has been frequently
adopted instead of calling upon shareholders fir pay-
rin:nt for the shares which have been issued to them.
\Vhat proportion does the amount, raised by loans, bear
to the amount of 4hares on which, the capital has not
been pa:d? I can only state the fact that there re-
mains, an unpaid capital connected with railways,
which received the sanction of Parliament before
1844, to the amount of 20,867,000/, suppos-
ing no loins to have been raised on outstanding
shares for the purpose of completing works.. With
_respect to Bills passed in the session of 1844, the amount
of capital stock that is still unpaid is 5,293,0001.
In respect to the railways which passed in 1845,
113 in " number, or. the • capital stock or
shares authorised .to be raised, there remains
an amount of stock which is still unpaid of
nearly 28,009,000/ , or in more general terms 27,900,000/,
which, added to the amount remaining unpaid on Bills
which were passed before 1844, gives a total amount of
capital stock to be paid up of 33,242,0001.—(Hear.) Of
course in addition to the amount of capital whfch will be
authorisedao lae raised in the course of the present session.
Therefore, even with regard to this. amount of capital,
may we not safely take the opinions of those parties,
who have clitered on these speculations, and be guided
by that opinion which shall- determine whether or no
,these speculations shall go on before they get sanctioned
by Act of Piirliateedt. There is one reason for
doing this, and' fortcalling for the retractatioa of
these p trties after mature inquiry and conside-
tion. There has. been a' great change in the
circumstances, of these projects since many of these par-
ties had committed themselves. In the first place, I
must refer to.the opinions of a Committee appointed by
this House in coraiag to a decision on a Bill which was.
brought before them. I understand that when Mr.
Brunel—a_ gentleman whose name must be fami-
liar to you" for the great ability, great ex-
perierkce, and great acuteness exhibited by him,
when you heard him, in being examined before, I
think, the Committee on the London and Oxford, and
London, Worcester, and Rugby Railways, gave this
evidence :---" The prices are SQ increased, that
_the lines
mentioned (the London and Oxford) cannot be con-
structed at their settled prices. The materials for the
construction of railways is now 50 per cent. higher
than at this time last_yatar." At this point of the pro-
ceedings the Chaiitnan said that the Committee thought it
unnecessary to hear any more evidence on the London
and Oxford line ; and after the room had been cleared
for a few minutes, the Committee declared that the
preamble of that'Bill had not been proved. If the expense
has so materially increased on those kinds of materials
necessary: for the construction of railway—such' as iron,
land, and labour--of course the estimates of the rail-
way company must be affected, the cost of executing
the line must be increased, and the prospect of profit
must be diminished. I do not say that these circum-
stances alone would warrant a withdrawal of their pro-
posals, but it must justify our giving these parties an op-
portunity of saying whether or no, on first consideration
of the circumstances in prospect, they can :,till wish to
go before Parliament for the construction of their lines.

find also' in the paper to whiCh I am referring, by
an advertisement from the London and York Railway
Company,
,that the increase in the cost of many of
the articles' necessary in the construction of railways has
produced an effect with respect to the value of stock on
many companies. I find it stated,'that in the case of
several railway • companies the premium on' the
shares in • 1845 before the Bill was obtained,
decreased .to a aiscount in 1846, when the
calls were being made ; and I think, on mature con-
sideration, that < in- some of the cases where Bills
have been obtained, and- where in consequence of
increased cost, or - increased competition, and where
there is a material difference between the prices
paid and those which can now 'be realised,
that the parties purchasing- these shares
ought to have a fair opportunity of consideration.'
It appears from this statement that the shares of the
Caledonian Railvvay, with 101. paid up, were, at a pre-
mium of 12/. befo're the passing of the Bill. Since the
Bill has been obtained .the shares are, however at a
discOunt of j/. 6s. There are several other railways
in a similar position, according to this statement. I
will not detain: the House by reading to k the names
-of these railways. But in every case shares in railways,
which bore a considerable premium previous to obtain-
ing the Bill; have since they have received the sanction
of the Legislature, fallen to a very considerable dis-
count. This is the case of Bills which have already ob-
tained the sanction of the Legislature. With re-
spect to the Bills now before the House, I am
of opinion the same apprehension applies. It is
clear, however, that there are many railways,
first projected in the month of October, 1845,
with respect to which the same sum could not
now be obtained on- the sale of' shares.—(Laughter.),
This state of thing,, therefore, differs most materially
from the state in which they were placed in October,
1845. I apprehend that our object is not to encourage
enterprises unprofitable to the parties engaged in them ;
and that is, I consider; one reason why we should give
to the parties interested an opportunity of re .considering
their position, and apprising us of their opinions upon
the subject. Now I have_ mentioned these considera-
tions, which I think
should have some weight with this
House. The first reaatsn to which.' have alluded is the
enormous amount of capital which, with whatever reduc-
tion you may make in the amount of Bills, must be pledged
by the Legislature -to railway enterprise.. The second
reason why I think we are called upon to interfere is
the greatly.incre.a.sed price in the .artiCles* required for
the construction of railways, and the great difference in
the present value of shares, compared with that which
they bore when the projects Were originally started.
The third reason, I apprehend, is to be found in the fact •
of the anxious desire of many parties to relieve
themselves from their engagements and liabilities.
With respect to these enterprises, I understand that a
great number of the parties connected with . these .under-
takings entertain a very sincere desire to have the oppor-
tunity afforded themof releasing themselves from their
engagements.—(Hear, hear.) I must say, that.winayst he
present state of the laws relating to inchoate T
railways,
some alteration is necessary.—(Hear, hear.) laws
relating to inchoate railway companies not
having received the sanction of the Legislature.
is not one which should long continue. By the present
aw the liabilities of parties are very great, and the
power of the directors and the provisional committee is
very great. So far as I can judge, there is no effectual
controlover the acts of the provisional committeemen and
directors. I have received letters from various persons,
I shall not give their names—but any Honourable
Member can see the original letters, and if
the statements contained in them be correct, there
are proceedings on the part of those which do
most certainly require some Parliamentary interference.
This gentleman states, in a letter which I received yes-
terday, that a great proportion of the new companies
had been holding back largo numbers of their shares
fur the purpose of " rigging" the market. Ia one in-
stance out of 42,000 shares 8,000 were kept back.
In another, out of 100,000, 10,0000 were kept back, and
in another a clear half of the shares were reserved and
sold out when the markets ranged high. But the last
statement in this letter is really most extraordinary.
It is stated that in the case of one railway which •
is mentioned several thousand pounds were taken out of
the banker's hands to rig the market, that is to say,
out of the 10 per cent. paid by the shareholders as de-
posits, money was withdrawn for the purpose of being
invested in the purchase of shares to raise the price