The Sun.
London, England, 1856-01-23 00:00:00

ud control, which shall strictly examine the receipts eed
payments of every description, and shall look into every
source of revenue, and the cost at which that revenue is
obtained. Because if you get a revenue of 10,0001. a week,
and is costs you 9,5001., then you, the third parties, who
come and take the residue of anything that is left, are the
sufferers - but not the preferential shareholders, or
the bondholders, nor the employes. As to the num-
ber to form the committee, that is a matter for con-
-ideration hereafter, but I bslieve that too much
pains cannot be given to the point of the separa-
tion of capital and revenue, so that not the shadow of sus-
picion shall rest on the minds of the public that the one is
appropriated to the other. I believe that we ought to go
is far as this that the capital should be in the custody of
use set of men, and the revenue in the custody of another,
ind that this board of audit and control shall be impera-
tively called upon, on their own responsibility as gentlemen
end men of business, to certify to the shareholders before
any payment is made, as to whether it belongs to revenue
or to capital. (Hear.) It is a common saying, gentlemen,
and one of which I need scarcely remind you, that things
ire " made pleasant" at the expense of the capital account.
Now, although the closing of the capital account is one of
the favourite theories of railway shareholders, yet I would
remind you that the capital account can never be finally
closed, because the important operations of issuing deben-
tures, that is, of creating vast sums of money by bonds
payaule to bearer, is continually going on, and therefore
too much care cannot be taken to provide funds to meet
these debentures, so that your property shall not be en-
dangered. Therefore that is an object which would eccupy
the attention of such a committee as that which I have
suggested. Now, another subject of groat suspicion is the
deterioration which is going on constantly in your roads
end your rolling stock. At the present moment, in con-
sequence of what has occurred on a railway which I need
not name, by the report of the Government Inspector,
Colonel Wynne, it appears that the permanent road has
been miserably neglected, and it is a source of great an-
xiety that any public railway should be in such a state ;
but yet, gentlemen, though there have been meetings in
two or three towns, promulgating the notion that that
'ailway is not safe or fit to travel upon, yet so elastic is
the property with which we are called up in to deal that,
if you refer to the returns of the last week, you will find
:hat there is an increase of 2,0001. in its traffis. There-
fore I say, gentlemen, what reason have we to despair ?
I admit that the cost! of railways has exceeded all expec-
tations anti all estimates. But I remind you that the re-
turn has also exceeded as much all the estimates by which
it was calculated, and I believe that we have only to adopt
the right course to make those returns as remunerative as
they ought to be. But it cannot be clone without trouble
and attention, and it is for the shareholders to consider
whether it is worth their while to give that attention to
their own affairs or not. Mr. Robert Stephenson,. in the
paper to which I before alluded, very properly remarks
that the deterioration, after a course of years, reaches
annual average, and is a charge just as fixed as the
fuel which you burn or the salaries which you pay.
Therefore, to attempt to put it off and create depreciated
funds, and put into them less money one year than you
spend in that year, and shifting the burden to the future,
is not dealing with the subject in that wise and prudent
manner in which it ought to be dealt with, because, what
is the effect of under-rating expenditure? If you do so,
you mak., a mistake in that most important point, the rate
et which you can carry goods or passengers ; and one error
leads to another. It is said that the Irish railways are
batter managed than the English, but I am not sufficiently
acquainted with the subject to say whether it is so or not,
but I think it is possible that the want is provided in Ire-
land which is the ruin of those that we represent. Look-
ing to the other side of the Channel, I would allude to a
leading article which appeared in a morning paper. In
that article a comparison is given between the French and
English lines. The article begins with stating that on the
Ist Jan. last 31 British railways, on which capital was ex-
pended of 124,000,0001., were only worth, at the market
price of the day, 89,000,0001. At the same time 13 French
railways, on which 31,000,0001. have been expended, at
the quotations of the day were worth 60,000,0001. There-
fore, while the British railways had depreciated more thal
a third of the money actually expanded, the French rail-
ways had actually doubled, or nearly so, their capital, the
dividend on the French lines being 10 7-4 per cent., after
providing funds out of which to redeem the capital ; for,
as you are aware, after a certain lapse of time the railways
iu France revert to the Government of the country. Now,
gentlemen, there is one delusion under which I believe the
railway world is very much depressed ; it is that the ex-
tensions and guarantees have totally ruined railway pro-
perty. If that were true all our efforts would be iu vain,
eeeause if their ruin proceeded from that cause wo might
save ourselves at once the trouble of any further conside-
ration about it. But that is not the fact. I shall refer
to the London and North-Western Railway Company,
not in the slightest spirit of hostility, but because it is
the head and c own of all the railway undertakings. By
its magnitude and length and strength of pocket it will
ruin its neighbours, but at the same time it may ruin it-
self, and I merely make the comparison with that lino for
the purpose of observing that, unless wo can get them to
Act with prudence al d with wisdom, it will be quite in
vain to attempt to enforce better measures in other rail-
ways, On the Ist of Jan., 1846, the capital invested in
the rolling stock of the London and North-Western Rail-
way C urnpany was 851.4121., and the net earning of the
year 1816 was 1,197,839/. The number of engines employed
was 220; that is nine years ago. On the Ist of Jan., last
year, the capital invested in their 'rolling stock was
2,404,7 )S/ The net earnings were only 931,9611., although
the engines were thrice as numerous—viz , 653. so that by
tripling the engines from 220 to 653, the net traffic revenue
of the North-Western had been reduced from 1,197,8391, to
931,9611., being 265,878/. less for the work of 653 engines
than for the work of 210. Therefore, gentlemen, I ask you
not to despair of railway property, and not to suppose that
these extensions have ruined you. I admit that they have
injured vote, but the thing that is creating the ruin under
which flit railway world is groaning is the working in many
cases for nothing. I believe the passenger traffic is paying
extremely well. Calculations which have been carefully
gone into show that the working and unavoidable expenses
are not so heavy that they impose any real impediment to
railways paying as well in England as they do abroad.
But the figure of our country is much less favourable than
that of France, because ours is a long and narrow country,
aoti you can go to any principal town in the king loan
along two or three lines of railway. But not so with
France, which is a square block of country, and in which
railways enjoy not only Governmental, but territorial,
monopoly. ft is for railway proprietors to neutralise
this conformation of our country, and insure by mutual
concession and goodwill that very moderate profit which
you require to pay your dividends. Now, I think, gen-
tlemen, that it should be an instinct:ion from the society
(which I hope we shall be able to enforce) that all railway
managers, in snaking calculations of the cost at which they
can carry goods or passengers, should add to them interest
at least of 4 per cent. to the ordinary shareholders, because
interest for your capital is just as much au expense w:sich
you incur as the coke which you burn in your engines. It
is true that you can be deprived of it, but that does not
prevent its Leine an expense of daily occurrence, and it
ought not to prevent such expenditure being charged
among the common working expenses, instead of being
confined to the 50 per cent, ordinarily allowed for work-
ing expenses. The next item—debenture interest—is just
as much a charge as coke. Until you get 4 per cent. for
your capital you get nothing; because without the trouble
incidental to the management of the line your money
would pis, that amount at simple inierest; but with all
this trouble you do not get simple interest. Another sub-
ject of great anxiety to us is the way in which Parliament
deals with railway property. Parliament, you will recol-
lect, gentlemen, is the representative of the people; but we
form a very important section of the people also, for Mr.
Robert Stephenson ehows at least one in 50 of the whole
population is entirely dependent on the existence of rail-
ways. Now, if we embrace so large a portion as one in 50
of the population, and a very large section of all the men
of property in the kingdom, we possess an amount of Par-
linmeutary influence which should save us in the hour of
wed ; and I believe that our great object should be that
we should exercise all that Parliamentary interest which
wo can, anti so prevent that reckless ruin of our pro-
perty that has been going on for so many years. I think
shall not trespass further on your attention than by
stating that resolutions will now be proposed to you, com-
bining the objects which I hare so feebly laid before you,
and that this meeting will be adjourned till the 31st
inst. ; and in the meantime we way be enabled to collect
such a body together as shall give us power to exercise in
our own affairs that influence which, when united, we
ought to possess; and I feel confident that if our associa-
tion is sufficiently numerous, and its affairs are conducted
with prudence and discretion, we shall very soon see our
Property placed on a very advaniagorus footing. Our ob-
ject was also to ask you for any suggestions which you have
to make. We are not welded to any plan of our own, but
all those points will form the subject of discussion before
the committee or council which may be appointed ; and
when you find that the saving of a single farthing per train
mile will add to the gross profits of the railways of this
country of 80,'00/. per annum, you can readily believe that
no suggestion, however minute, will be considered unim-
portant. We have already received numerous letters ap.
proving in the very highest terms the objects which we
propose to carry out; and gentlemen holding very large
interests in railway property express very confident opi-
nions and hopes that if this movemt nt is followed up it
will be attended with the greatest possible benefit. I see
before me gentlemen of great experience in railway matters,
whose opinions I have ascertained in conferences with
them, and they all take the same view. Therefore, gee.
tlernen, I call upon you to give us your support in this as-
sociation. (Cheers.)
Mr. MITCHELL proposed a resolution to the effect that a
society be now formed, to be called "The Railway Proprie-
tors' Association, the object being for the protection of
railway property and its restoration to a fair and legiti-
mete value, restricting and closing the capital account, and
the suppression of ruinous tariffs by territorial arrange-
ments. He thought if they wore to take an account of
their stock they would find that it had been depreciated
fully 10 per cent. during the past year, and that within
the past three years it had been depreciated from 25 to 30
per cent, below what it was in 1853. The charges for ac-
commodation hal not been' framed in accorlance with the
first cost of the article to the public. The chief
causes of the depreciation in railway Iroperty arose
from the increase in the capital accounts, competi-
tion, and unremunerative tariffs. The latter was what
they had principally to complain of. With regard to the
unjustifiable increase of capital, he would al'ude to one
company that had expended 31,345,000/. in 1853, and had
increased the amount in the course of eighteen months by
2,026,0001., increasing the preference charges by 109,260/.
for the year, while the working expenses hail been in-
creased by 127,8151. The Great Western Company had
increased their capital account by 2,978,9891. in the course
of 11 months, the preference charges in proportion, and
the working expenses 46,9231. There head been no increase
in the charges for the conveyance of traffic on those lines,
while the cost of working the traffic had incre teed 20 per
cent. The affairs of railway companies had be en carried on
in contravention of every sound commercial principle.
Efforts had been made to prevent competition. They
were told at the meetings of the Great Western, the Lon-
don anti North-Western, and the Great Northern that
they were compelled to charge low rates for goo Is in con-
sequence of the competition of other lines. He believed if
they succeeded in forming the association of proprietors
they would be enabled to put a step to that state of things.
They would be enabled to bring their power to bear at each
meeting. The chairman and directors would, o f!ourse,
tell them it was not their fault, but the fault of the direc.
tors of some other company. Another very foolish thing
was done by the directors of the metropolitan lines in re-
spect to the excursion traffic; just at the time that every
one was preparing toloavotown excursion trains were started
to convey them for fares considerably below the ordinary
rates. It was clear that if innkeepers were to charge only
one-half or one-quarter the usual rates when their houses
were filled with customers the effect would be disastrous.
The tariffon such occasions charged by the Eastern Coun-
ties Company was particularly low, and he would say unre-
munerative. The London and North-Western Company
did not sin so much in that respect as others, although
their excursion fares to Liverpool, Birmingham, and other
places were less than they ought to be. The great fault

evn. railway directors was giving too much aecosnincirla;
tion, and taking too little for it. The salaries and emolu-
ments of rail way officials were too high. It had been re-
marked by Mr. Stephenson, who Wes a great authority on
railway mattere, that; notwithstanding, competition and
low fares rail Way traffic had gone on increasing ; but,
although the traffic had increased considerably, there had
been no corresponding increase of dividend. Ho thoujot
that showed a grievous error in the management. (Ap-
plause.) It was not likely, .as stated by Captain Huish,
that Englishmen would sit down idly and repine at that
state of things, without making souse energetic exertions
to put matters right. If the shareholders would do their
duty as men of business, he, for one, had no fear for rail-
way property. They did not want to alter railway boards
so much as they required the alteration of their plans. It
was the system of dealing with the property that required
alteration.
A SHAREHOLDER fully concurred in these observations,
but thought they should lay down some general principles
to guide them as to future management. He considered
that railway directors were not paid sufficient for their
services ; 1001. a year was not sufficient to secure their
attention to the interests of the shareholders.
Mr. VANCE said the great evil was net so much from
want of good management as from what was called the
jobbery of directors. .Whenever the question of an exten-
sion line, or a branch or lease of another line was brought
for ward to which he was opposed, he always found that
the independent shareholders were swamped with proxies
sent to the directors, and, of course, they could do nothing.
At other times competition was gut up fur a purpose. A
comparison had been made between the management of
French and English railways, but ho thought the slower
rate of travelling adopted iu Franco would not be tolerated
in England. They also charged lower rates, and, owing
to the slower rate of travelling, their expenses were not so
much as in &gland.
Mr. E. J. HERAPATH remarked that the object to ac-
complish was the closing of the capital accounts of estab-
railway companies. The principal reason why the
railways of the kingdom did not pay remunerative divi-
dends was that the capital expenditure bad been so enor-
mous. The railways of France had been alluded co by
their hon, chairman, in contrast with those of England.
It was quite true that French railways were valuable un-
derta.kiugs to the proprietors, and the circumstance might
be traced to the same cause —a low capital expenditure in
comparison with the heavy outlay on English railways. He
might mention that in Belgium the dividends of the State
railways were last year as high as Gi per cent., being nearly
double that on railways iu the United Kingdom, yet the
traffic on the Belgian railwatelwas thinner than on Eng-
lish lines. The reason the Belgian railways were enabled.
to pay a fair rate of dividend was the comparatively light
cost at which they were constructed. It was so in every
other country where railways were fairly, and even highly
remunerative to the proprietors, instead of being immune-
nerative as in Eegland. In this country they had p iid, in
Parliamentary and law expenses, about 25,000,0ei.)/. iu ob-
taining acts of Parliament for railway companies. Mr. R.
Stephenson hal stated the amount at 14,000,0 01., but ho
(Mr. Herapatb) believed the full amount would show
25,000,000/. as the expenditure. He hoped they would bo
able to form sash an association of railway shareholders as
would control the proceedings of railway companies in fu-
ture. It was well known that established railway com-
panies were still progressing in capital expenditure, and
the causes of it, to the detriment of the present and future
dividends. The beneficial effect of controlling the future
capital expenditure would be felt firstly in the increase
of dinidends, and secondly by giving public 'confidence to
railways as investments. A powerful association of rail-
way shareholders would cure those gigantic evils, which
but fur such interference might go on accumulating
for years, and in time utterly swamp the dividends of rail-
way shareholders. The abeoluie and complete closing of
capital accounts of old lines would vastly increase public
confidence in railway undertekings. There was an impree-
siou iu the minds of many country gentlemen that railway
dividends came out of capital, ou the ground that the cur-
rent capital expenditure of railway companies generally
aseounted to as much as the sum paid iu dividend. The
public would never believe in the honesty of rail Way ac-
counts until the capital accounts were closed. With regard
to the raising of passenger fares, it could not be done with-
out damage to the railway interssts. The rates for goods
might in some cases be raised with advantage. The means
of reducing the working expenses were chiefly to be found
in reducing the number of trains, by taking off those that
were unremunerative. If a train had only five or six pas-
sengers it could not pay, although they might charge the
highest fares allowed, as the cost was about 28. per train
mils ; but if they had 100 third-class passengers, each at
Id. per mile, it would yield Bs. 4d. per mile, which would
be very remunerative. When it was considered that the
traffic on railways in the Uuited Kingdom amounted in
1355 to above 21,200,0001., and that in the course of six or
seven years there was every probability of Cos traffic for the
year amounting to 30, 00,000/., it was clear that a great
deal was to be expected in the shape of increased dividend
cfro.oum,
eg ouod on the
l managementpart
tof
thae
marne
heonl
deer
rgse ttioc
ealno
sde dtehtee
capitalrm i ne
accounts.
Mr. BULLER adverted to the successful results of au as-
sociation formed by Sir W. Mulesworth, Mr. flume, and
others for reforming the management of the colonies, and
they succeeded in convincing those who opposed them that
the colonies should be allowed to govern tnemselves. The
question was whether the shareholders would take the
trouble to govern their own affairs ; and with regard to
paying the directors for their services, ho thought they
were the worst-managed lines where they paid the most,
sech as 2,0001. a year to Mr. Waddington, of the Eastern
Counties, and !,oeo/, a year to Mr. Mecgregor, of the
South-Eastern.
Mr. GOETZ said he thought, with respect to railway
matters, they would do well to copy from their neigh-
hours. The great evil to railway property iu England arose
from bad legislation. - The frVe-traile policy recommended
by the late Sir R. Peel had nearly ruined railway property.
There was no occasion for 3 railroads from London to
Manchester and other, places. In France competing lines
were nut allowed, and fixed charges were made on every
line for the conveyance of passengers and goods, so that
there cowl ibe no competition. The chairmen of railway
companies were perfectly independent of the shareholders,
and— what was worse—they were irresponsible for their
acts and management. The directors of companies in other
countries were trustees and made accountable for their

management. Great power was Given to the managers of
English railways; there was nu punishmmt for the falsifi-
cation of accounts. If a general manager were to put down
a false or fictitious sum of 10,0)0.!. with a view to deceive
the shareholders, the Government of other countries would
have him put in prison for his misconduct. There was no
check in England on railway managers, and, unless a dif-
ferent policy were adopted, railways would never be re-
munerative to the original shareholders.
After a few observations fioin the CHAIRMAN the reso-
lution was put, and unanimously adopted.
On the motion of Mr. WRIGHT, seconded by Mr. F.
noun', it was resolved " That the government of the as-
sociation should be by a president and council, consisting of
12 or more members, and their setvices to be gratuitous."
Dr. COWAN recommended the-promoters to obtain lists of
the shareholders of rail way companies, and send circulars
to them on the subject. He cowls furnish lists of the share—
holders of three railway companies to which he belonged,
and he had no doubt that shareholders in other companies
could do likewise. He would, if possible, send a, circular to
every shareholder iu the kingdom. A great deal of mis-
chief had been done by unwise legislation, which had cost
the companies at least 20,000,0001. out of a capital of
300,000,000/. Every one was convinced that there must
be an entire change in the legislation and management of
rail way property.
On the motion of Mr. GRIDLEY, seconded by Mr. HOB-
SON, it was agreed that subscriptions should be paid into
the London and Westminster Bank, and be drawn out as
required, by the signature of two of the committee.
Mr. HOBSON knew a case iu which a railway company
was charged M. per ton for certain stores which he showed
could be purchased of other persons for 331. per ton. That
was a specimen of how companies were overcharged.
In the course of a short conversation it was stated that
railway shareholders were under great obligations to the
press generally for the able and straightforward warner in
which hey had defended their rights and male known in-
juries inflicted upon them. -
A committee was then appointed, consisting of Mr.
Leech, Mr. Hoare, Dr. Cowan, Mr. T. Tesg, Mr. Buller,
Mr. J. J. Leon, Mr. Hobson, and Mr. Mitchell, to carry
out the objects of the meetieg ; and the latter was ad-
journed to the 31st inst., for the purpose of enrolling mem-
bers and for I,,eneral business of the association.
A vote of thanks to the chairman concluded the pro-
ceedings. •

LONDON BRIGHTON, AND SOUTH COAST.
The directors of this company have just issued their report.
It states that the amount of capital raised to the 31st of
December last is 7,722,715/., consisting of 1,869,4351. wort-
gage debt, 1,237,6461. preference capital, and 4,615,04/.
consolidated stock. The total capital outlay (hiring the
half-year has been 17,0311., of which 8,0391. has been
expended for enlargement of the Loudon terminus and the
completion of the Crystal Palace station, and the remain-
der for the several works necessary to insure the safety and
convenience of the public. Considering that there only re-
mains a balance of 23,222/. of unexpended capital, the
directors have endeavoured to curtail as much as possible
the charges to the debt of capital, and aczordingly some
items for additions and improvements to the liue and sta-
tions, which strictly belong to capital, are now charged to
revenue. The gross revenue for the half-year has been
408,6061., showing an increase of 12,161/. over the corre-
sponding half-year of tB5l, which was 31,72 1. more than
that of the corresponding half-year of 1853. Of that excess
8,3881. arises in the coaching, and the remainder in the
goods traffic. The Crystal Palace traffic has produced during i
1855 the sum of 43,1531. The directors consider the re mit
of the traffic ou the East Grinstead line as opposed to the
opinion of the prejudicial effect of branch lines upon the
parent railway, and as proving the propriety and desira-
bility cf affording reasonable encouragement to landowners
awl others whe may desire to obtain railway accommoda-
tiou without calling upon the company to incur any outlay
of to ipital, or to undertake undue engagements in the shape
of rent. The sum of 14,7731. has beau paid under the award
in respect to the Croydon accident, and the amount has
been placed to the debit of the revenue accountfor the past
half-year. The revenue account for the half-year shows
that 396,9301. had been received and 182,1591. expended, as
against 334,3191. received and 177,336/. expended at the
corresponding period of 1854. A tabular statement in the
report shows that the gross receipts on the line forthe year
1848 amounted to 453,4081, ant for 1855t0 719,022/. The
number of passengers conveyed in 1818 was 2,485,779, and
the receipts 349,977/. and in 1815, 6,318,938 passengers,
the receipts being 495,720/. The nu m bes of miles run by the
trains in 1848 was 1,119,308; and in 1855, 2,092,517. The
total expenditure in 1848 amounted to 187,0871., and in
1855 to 338,8591., including 14,774/. for the Croydon acci-
dent. At the same time 12,3601. was taken out of the re-
serve fund for renewals. The increase in the receipts on
the line during the past seven years appears to have been
249,109/., and in the expenditure 151,7721. ; showing a net
increase of 97,3271. With the exception of 4,690/., the re-
serve fluid has now been expended in renewing improv-
ing, arid fish-jointing the permanent way, and the result
has been a considerable diminution of the current outlay
and cost of labour for maintenance. The directors propose
to continue from time to time to relay the line with fished
joints. The net amount to the credit of revenue for the
half-year is 137,5741„ out of which the directors recom-
mend a dividend of 21. 18s. per cent. fur the half-year,
amounting to 133,8231., leaving a balance of 3,7211., and
making the total dividend for the year 1855 amount to 5
per cent. The total expenditure on capital account
amounts to 7,776,7781.

MANCHESTER, SHEFFIELD, AND LINCOLN.
The working expenses and other outgoings of this com-
pany's railways (each:hive of the Manchester, South
Junction, and Altringham), have amounted in the
first fortnight of the half-year to 8,8131. Os. 6d., being
at the rata of 51.28 per cent. on the railway traffic for that
period. The proportion of tho South Junction, &c., re.
ceipts accruing to this company for the same fortnight have
amounted to 736/. 2s. 2d., the expenses being 3711. 16s. 5d.,
or at the rate of 50.50 per cent.