The Sun.
London, England, 1851-08-26 00:00:00

EVENING, AUGUST 26, 1851.

had derived from the investigations of .INl?tsrs. Quitter
and Ball. There was another item in the revenue ac-

count of 10,0001., " to amount of the remaining ba-
lance of this account transferred to the account of
Rent of Joint Stations,' with the view to provide for
the loss thereon, the earnings under this head having
been overstated in revenue accounts anterior to Janu-

ary, 1549." He could only say in justification that
the directors felt the utmost anxiety to start with all

outstanding claims wiped away. They felt that the
time for despondency has passed, and that they had
now to endeavour to develope the resources of the dis-
tricts through which their line passed, starting with
a clear balance-sheet. They thought, therefore,
though it was a great sacrifice to abandon all hope of
a dividend for the past half year, that it was desirable
to set aside this sum for the purpose to which it was
to be applied. Th 3 auditors in their report made this

statement :
" The charge for • legal expenses (including Parlia-
mentary opposition to competing lines)' contains two
items, amounting together to 6501., paid by order of
your late directors; for these amounts no vouchers have
been produced to us, and on inquiry we are told it would
be undesirable for you to possess particulars of this ex-
penditure, We cannot, consistently with the important
trust reposed in us by you, accept this explanation, and
therefore submit both these matters to you, to deal with
es you think fit."
He did not wish to make any observations upon the
conduct of the gentlemen to whom the auditors re-
ferred, and who were no longer members of the board
of directors ; but, so far as he had been able to ascer-
tain, he must say he believed the parties who directed
the expenditure thought it desirable that such an
amount should be placed at the disposal of the secre-
tary, with the view of advancing the interests of the
company. The amount had, he believed, been ex-
pended with that object alone. With regard to the
Harwich agreement mentioned in the report, the seal
of the Eastern Counties Company had been affixed to
it, and it was expected that it would receive the
sanction of the Eastern Union proprietors at the
end of this week or early next week. He believed
that arrangement would be of the greatest importance
to the Eastern Counties Company, and he was sur-
prised,
when it was necessary to construct only 10i
miles of railway to establish a communication with
one of the finest harbours on the eastern coast, that
the work had not been undertaken much sooner.—(A

Shareholder—" What will the line cost ?") He Was
told that, according to the revised contract, making a
single line, including the land, but independently of
the harbour works, the cost would be about 150,0001.
—(A voice--" Then we shall have no dividend next
year.") With regard to the Norfolk agreement, he
did not think it desirable to enter into that question
at any length on the present occasion. The Norfolk
Company had communicated with the Eastern Coun-
ties directors, inquiring what course they intended to
take. They considered that the best course they
could pursue was to rely upon the agreements they
had previously made with the Norfolk Company for
a given number of years. He was convinced that at
the present moment it was desirable they should
maintain amicable relations with that company, and
he hoped no question would be introduced to-day
calculated to engender any ill-feeling or to cause a
renewal of an acrimonious correspondence. The estab-
lishment of steam-packets at Lowestoft was likely to
be of very great importance, not only in develop-
ing the resources of that town, but in adding to
the revenues of the Eastern Counties Company.
—(Hear, hear.) However Mr. Peto might be held
up as courting the Norfolk Company, be (the chair-
man) knew that Hon. Gentleman was doing all he
could, by an outlay of his own money, to develope
the resources of Lowestoft, and in so doing he must
necessarily add greatly to the revenus of both compa-
nies. With regard to the Great Northern Railway
Company, some two years ago that company entered
into antagreement with the Eastern Counties Com-
pany, whereby they were to abandon the construction
of a line called the Boston, Stamford, and Birming-
ham line, which gave them access by Peterborough
to Wisbeach, and the Eastern Counties Com-
pany agreed that the Great Northern should
use their line from Peterborough to Wis-
beach, paying GO per cent. upon their receipts.
At the time that agreement was made the Great Nor-
thern Company would not have had the means of

oining the East Anglian Company at Wisbeach. A

few months ago, however, in consequence of some ar
rangement they had made with the East Anglian
Company, the Great Northern Company gave notice
to the Eastern Counties of their intention to work
over the Eastern Counties line, and instructions were
given that they should do so accordingly. Having
given them the privilege of running to the Wisbeach
Aation, the Eastern Counties Company considered
they had fulfilled their part of the bond ; but the Great
Northern Company said, " We will stay short of
Wisbeach and use another line communicating with
the East Anglian line." The Eastern Counties di-
rectors replied, " No, you shall go to Wisbeach, but
you have no right to stop short and use the East
Anglian line for the purpose of diverting our traffic.
We, shall, however, be very glad to make
arrangements with the Great Northern or any other
company for the purpose of carrying out the views of
Parliament." But what did the Great Northern say
in their recent report ? It contained this passage :
" The Great Northern have also commenced working
from Peterborough to Wisbeach, and over the East
Anglian lines from Wisbeach to Dereham. The
Eastern Counties Company, in contravention of their
agreement with the Great Northern, as well as against
the rights of the East Anglian Company, secured by
Act of Parliament, have shut up the points of junction
between the Eastern Counties line and the East

Anglian line at Wisbeach." Why, if the directors o
the Eastern Counties Company had not done so they
would not have been faithful guardians of the interests
of the shareholders. The Great Northern line had
given them notice of proceedings in Chancery, but he
dared them to proceed. If that company thought
they would obtain the use of station upon other lines,
and that the companies upon which such claims were
made would stand quietly by without endeavouring
to maintain their just rights, they would find them-
selves egregiously mistaken. But, even if the Great
Northern Company obtained the powers which they
sought through the interposition of the Court of Chan-
cery, he had no doubt that in the end the Eastern
Counties Company would be enabled to gain their
just and equitable rights ; and they would still have
the advantage of possessing much more direct
communication between London and Lynn,
Dereham and Swaffham, than the Great Northern.
The Great Northern Company also complained
that they were not allowed to run over
the Eastern Counties Company's line from Shep-
reth to Cambridge ; but Parliament had denied the
Great Northern Company this running power, and
%Thy should the Eastern Counties Company grant
that which, upon five successive applications, Parlia-
ment had refused ?—(Bear.) He could only repeat
that the directors were prepared to meet the Great
Northern Company in a spirit of amity, for the pur-
pose of carrying out what they considered to be the
views of Parliament ; but if the most direct commu-
nication was entitled to the traffic, he maintained that
that direct communication was by the Eastern
Counties line, and the directors were determined to
defend their right to that traffic as long as they had the
support and concurrence of the shareholders.—(Hear,
hear.) He was not prepared to state what measures
it might be desirable to adopt in the next session of
Parliament, but he would say that, beyond the preli•
urinary expenses which might attend the giving of
notices of the making of surveys, the directors would
not incur any expenses without asking the sanction
of the proprietors.—( Hear.) He might remind them
that in April or May last it was announced that
the Eastern Counties directors were en-
deavouring to make arrangements for enter-
ing into part occupation of the Fenchurch-street
station of the Blackwell Railway Company,
who projected a line to be carried opposite to Graves-
end. He hoped arrangements would shortly be made
whereby the Eastern Counties Company would have
free access to the Fenchurch-street station, and he
was informed that the Blackwell Company were pre-
paring plans for giving them a siding for their own
use. If they could obtain such accommodation upon
fair and equitable terms, the greatest advantages
must result to the Eastern Counties Company.—
(Hear and cheers.) Complaints had been made that
the directors of the Eastern Counties Company had
been advertising for money and offering 41 per cent.
They had to measure their Zredit by the opinion
which others entertained of it, and so long as they
could not obtain money at 4 per cent. they thought it
advisable to advertise for it at ft. He was glad to
say, however, that the money was coming in very
freely, and he had no doubt they would soon be able
to obtain the advances they required upon as favourable
terms as any other company. He was glad to be able
to state that their goods traffic was progressing most
satisfactorily. He found upon a comparison of the
returns which were delivered monthly that at nearly
every station on the Eastern Counties line, ex-
cept where it was in immediate contact with the,
Great Northern, the goods traffic had increased.
He was not aware that there were any other
observations he had to snake, except upon the
question of remuneration to the directors. So far
ae he was concerned he left the proprietors to deal
with that subject as they thought fit. The amount
now set aside for the directors was 1,8001. a year, the
sum which had been appropriated to the same purpose
for years past, and he thought, if they wished to have
directors who attended to the business of the company,
it would be necessary to give them a fair remunera-
tion for their labours.—(Hear, hear.) lle begged to
move that the report of the directors with the accounts
be adopted.
Mr. NATHAN found there were two now directors,
one of them a noble lord, and understood they only
held the number of shares necessary to qualify them
for a seat at the board. Now, he thought there were
many proprietors who would be ready to go into the
direction who held—not 20 shares bought at 61. a

share—but 400 or 500 shares.—(Hear, and a laugh.
The CHAIRM tN observed that one of the new
directors, Lord A. Paget, joined the board at his spe-
cial request. Lord Paget lived within five or six
miles of Ipswich, and it had been suggested to him
(Mr. Waddington) that it would be desirable for the
interests of the company to cultivate a friendly alli-
ance with him. He (the Chairman) was introduced
to the Noble Lord, and being struck with his business

habits, to which all his co-directors would bear wil-
ling testimony, and knowing also his influence in
Parliament—(Hear, hear)—a consideration of great
importance to the company—(Hear, hear)--he re-
quested Lord A. Paget to qualify as a director, and
he was satisfied that in doing so he exercised a sound
discretion.—(General cries of " Hear, hear.")
Mr. A. T. Sairrn, one of the directors, confirmed
the statement of the Chairman as to the business
habits of Lord A. Paget, and his attention to the
affairs of the company.
The CHAIRMAN said, in reply to questions, that the
expenditure of the Harwich branch was to be under
the control of a joint committee appointed by both
companies. He believed the works were to be exe-
cuted for 100,0001., or thereabouts, and the land
would cost about 40,000/. ; so that there would he a
margin of about 20,000/. under the sum of 200,0001.,
which had been estimated to cover the execution of
all the works. He believed the outlay in the first
instance would be about 150,0001., as the inhabitants
of Harwich had obtained an improvement Act, and it
was not improbable they might construct a pier. The
company was to pay 4 per cent. interest upon the
outlay.
Mr. M'LAREN complained of the expenditure of so
large a sum as 5,0001. for the direction and manage-
ment of the company's lines, and suggested that the
directors of the Northern and Eastern Railway Com-
pany, who had seats at the Eastern Counties board,
and to whom 1,0001. was awarded under the authority
of an Act of Parliament for their services, should re-
linquish their claims to that sum, and hand it over to
form the nucleus of a dividend for the unfortunate

Eastern Counties shareholders.—(Hear, hear, and
laughter.) He hoped the directors would forego their
remuneration, for many of those gentlemen were mil-
lionaires, and the pittance of 2001. or 300/. a year
could be of no great consequence to them.—(A laugh.)
Mr. DALLAWAT thought they were paying rather
too much to their directors. He considered that they
ought to be properly remunerated for their labour,
but that they should be required to possess such an
interest in the company's stock that the amount they
received as directors should be a matter of secondary
moment to them. When the dividend available was
only at the rate of 30. in the pound for every 201.
invested in the company, he thought there must be a
very lax management. Might they not, in conse-
quence of the reduced price of articles of consumption,
effect some reduction in the salaries of their 2,000 or
3,000 servants ? His land yielded him 20 per cent.
less than it did when he invested in this line, and if

they, as landlords, were making so large a sacrifice to
reduce the cost of provisions, they ought, as proprie-
tors in railroad companies, to derive some benefit in
return. If a reduction of 5, 10, or 15 per cent. were
made in the wages it would at least assist the impo-
verished proprietors. There were hundreds of per-
sons deprived of the ordinary luxuries and even ne-
cessaries of life in consequence of their investments in
the Eastern Counties Railway.
Mr. BAGSHAW, M.P., said that ho had worked
night and day for the benefit of this company as a
director. As he had exerted himself he would con-
tinue to exert himself—but he would be paid for it.
—(Hear, hear, and a laugh.) If his colleagues were
to receive fees for their attendance, he would receive
the same.—(Hear, hear.)
Mr. Box considered that the working expenses of
the line were very heavy. In the last half %year but
one the cost was about 1613. per train per mile, while
upon the Great Western it was little more than 93.
In the last half-year the expense on the Easter❑
Counties line had been 134 d. per train per mile, so
that a reduction to the amount of nearly 31 per train

per mile had been effected within half a year; but he
thought it would not be difficult to make a still fur-
ther saving. There could be little doubt that the
Great Northern Company would continue to make ag-
gressions upon them, and unless some very extraor-
dinary reductions could be made in the expenditure
of the Easter❑ Counties Company he could not anti-
cipate a dividend even at a remote period. He
wished to ask whether the chairman's attention bad
been directed to the compressed air machinery ?
(Cries of " Oh, oh," and great laughter.) He was
empowered by the patentee of the compressed air
machinery to say that he was quite willing at his own
expense to try the effect of his principle upon any
of the company's branch lines, so as not to interfere
with the traffic.

The CHAIRM&N—He shall have au opportunity,
then.—(Laughter and cheers.) [the chairman sub-
sequently explained that the directors would be
willing to allow a trial of the principle, but the ex-
periment must not be attended with any cost to the
company, nor would they allow their own engines to
be used.]
Mr. Box thanked the chairman for his offer, ob-

serving that the readiness with which it was made sa-
tisfied him that the Hon. Gentleman was most de-
sirous to endeavour to bring the expenditure of the
company within moderate bounds.
Mr. ROBINSON suggested that an attempt should be
made to induce the three railway companies in the
eastern counties to unite themselves into one corn-

pany.—(Cries of " Oh !" and " No, no.")
The CHAIRMAN stated, in reply to questions, that
the directors had effected a reduction of about 3,500/.
a year at the Bishopsgate station alone, in the clerks'
and stores' departments. The miscellaneous expenses
of the company were, he admitted, light, but he was not
at all satisfied on that subject, and had called for a re-
port from each of the officers with reference to the
items charged.
Some conversation then took place with regard to
the passage in the auditors' report which was quoted
by the chairman, referring to two items, amounting
together to 6501., paid by order of the late directors,
but for which there were no vouchers.

Mr. ELLIa (a late director) said that he heard from
one or two of the directors some time since that a
question had been raised upon this point, but without
any reference to him. He was therefore somewhat
surprised when he saw in the auditors' report that the
money had been expended by two of the late directors,
and it was undesirable to enter into any explanation
with regard to it. He had written to the auditors to
know whether he was one of the parties alluded to,
and whether he had stated particulars could not be
given. They replied that he was one of the gentle-
men alluded to, but that he was not the person giving
the reply mentioned. Now the fact was, as far as he
recollected, that the solicitors applied to the
.finance
committee for 1,0001. an account, and that it was
passed without any explanation, a sum of 3,000/.
being then due to these gentlemen. Four of the pre-
sent directors were at the committee meeting at the
time, and it was, therefore, unfair to place the whole
of the odium, if odium there was, attaching to the
construction upon the late directors.
The CHAIRMAN bad hoped that the matter would
have been allowed to drop after the explanation he
Lid given in his opening address. The subject had
come to his knowledge through applications being
made to him for assistance to enable parties to test
the legality of the agreement with the East Anglian
Company. This he had refused to give, and upon
his mentioning the subject to the solicitors, they ex-
plained that the sum of 1,000/. had been voted for
similar purposes, of which between 500/. and 6001.
had been expended. He at once called the attention
of the directors and auditors to the subject, and he
could assure them that, so long as he remained in
office, there should be no money spent in secret ser-
vice, without they first placed sufficient confidence in
him to vote it for the purpose.

Some other explanations were given on the sub-
ject, and
Mr. GLYN (the late chairman) said—Early in the
present year the company were likely to suffer from
several Bills brought into Parliament, and especially
one by the Great Northern Company, for the making
of a line from Shepreth to Cambridge, there to join
the Newmarket Railway, but the real object of the Bill
was to obtain running powers over the Eastern
Counties. It was most desirable that this Bill should
be opposed in the first instance, and thrown out on
the second reading, but unfortunately this company
had no locus standi nor right to oppose the Bill ex-
cept upon its clauses in Committee, and, if the Bill
got into Committee, the expense to this company
would have been very great, and the Great Northern
could not well fail in obtaining some privileges
which would have been greatly to the detriment of
this company. It was under these circumstances I
consulted your solicitors, and, as the company could
not oppose the second reading, it became necessary, to
do it through the medium of third parties. Mr.
Roney suggested, that by the judicious expenditure
of a sum of money not exceeding 5001, this might be
done, and he proposed to manage the matter if he
were permitted to do se. The solicitors foreseeing the
difficulty which has arisen, es indeed I also did, I
namely, that there could be no vouchers for such
expenditure, advised that I should in the first
instance mention the matter to the auditor!, I
and
accordingly did so, but Mr. Reeves answered, as ex.
p.cted he would do, that they ought
have vouchers.
There the matter ended, so far a I s was concerned,
but Messrs. Crowder and 'Maynard advanced to Mr.
Roney various sums of money, emovintiiz n
in all to
which they have paid him since my
5001., some of
resignation, and Mr. Roney, with great tact and judg-
ment, with the aid of the landowners and the colleges,
petitioned against the Bill, and by the weight of their
parliamentary influence, succeeded in quashing the
Bill on its second reading. The landowners and the
colleges were the nominal opponents, but the real op-
position was ours. I consider the company are much
indebted to Mr. Roney for the pains he took and the
exertions he made to organize this opposition, and

although I gave no orders to Messrs. Crowder and
Maynard to advance the money, or to Mr. Roney to
employ it, I think I should have been wanting in my
duty to this company if I had refused to give it, or
to advance the money myself, and then to have come
to vou at this meeting, and state the circumstances,
as I now do, and ask for an indemnity at your hands.
Had the Bill gone into Committee, expenses to five
times the amount must at least have been incurred,
and the company's interest have suffered from the
further encroachments of the Great Northern Com-
pang.
The subject Was then allowed to drop, and the re-
port was adopted.
A resolution, moved by dr. DALLAWAT, was then
carried, that the expense of management should be
taken into consideration by a committee, consisting
of two directors and three shareholders ; but the
shareholders having by this time been engaged in the
meeting nearly five hours appeared anxious to break
up, and the committee was not named.
A variety of motions upon all manner of imagine
able subjects, such as printing a list of the share•
holders, the carrying out an amalgamation with the
Eastern Union, the upsetting the Norfolk agreement,
the qualification of future directors, &c., were then
put by independent shareholders, end at once with-
drawn or negatived.
Votes of thanks to the chairman and auditors, who
respectively acknowledged the compliment, were then
carried, and the meeting separated.