The Sun.
London, England, 1851-09-19 00:00:00

EVENING, SEPTEMBER 19, 1851

COWES, ISLE OF WIGHT.
FROM OUR OWN CORRESPONDENT.)
ROYAL YACHT SQUADRON INTELLIGENCE.
ARRIVALS.
Sept. 15. Frisk cutter, George Arkwright, Esq.,
M.P., from Plymouth.
16. Eagle schooner, James V. Allen, Esq., from
the eastward; Talisman cutter, Capt. 11. N. Smith,
from Torquay.
17. Flower of Yarrow yawl, Lord John Scott,
from Ramsgate.

RAIL WAY INTELLIGEN CE.
SOUTII-EASTERN.
The half-yearly meeting of this company was held
yesterday, at the Bridge-house Hotel, London-
bridge ; Mr. J. Macgregor in the chair.
Mr. G. S. HERBERT, the secretary, read the adver-
.
'•

tisement convening the meeting, after which the re-
port and accounts (abstracts of which appeared in The
Sun of Monday) were taken as read.

The CHAIR -AN then said—Gentlemen, the report
for the last half-year, now submitted to you by the
directors, and the accounts for the same period, which
are verified by the auditors, present a less amount
available for dividend on this occasion than we had
all anticipated would be the case. The total increase
of traffic during the half-year, as compared with the
corresponding half of the preceding year, was 52,79.5/.,
but almost the whole of this accrued in the latter
three months of the half-year. This increase assimi-
lates the traffic of last half-year, the least productive
half of the year, to that of the preceding half-year,
the most productive one, within about 3,0001.—
(Hear, hear.) The report informs you, Gentlemen,
that 23,0001. only of that increase is from through or
Continental trcflic. Of the balance, you will be grati-
fied to observe that about 9,0001. was earned on the
North Kent line, on which, in spite of the amazing
competition which it has to encounter, the traffic is:
steadily augmenting ; and about 3,500/. was earned
upon the Reading, Guildford, and Reigate line.
A slight decrease his taken place on the Greenwich
line, which is attributable to the abstraction of a por-
tion of the traffic by the North Kent line. The in-
crease in the goods traffic of about 8,0001. on the half-
year, is satisfactory, and more than commensurate
with the increase of the expense in that department.
The locomotive expenses vary only in about the pro-
portion of the increased mileage run by the trains
from the expenses of the last and the preceding half-
year, being in each case about 10d. per mile. A large
amount of rolling stock has been provided from the
reserved fund laid aside in previous half-years, and
the reports of the locomotive and carriage superinten-
dents, regarding the renewals in their several depart-
ments, have warranted the directors in charging the
renewals of stock worn out previously to the last half-
year to the debit of the fund laid aside in previous
half-years for that purpose. In the account of main •
tenance of way there is an increase last half-year of
1,8001. in the charge for the repair of permanent
works, of 1,5001. for the repair of stations and build-
ings, and of 2,5001. in the maintenance of permanent
way, itself occasioned by an increased mileage falling
into the hands of the company from the contractors,
and also by the extra expense in reballasting and re-
pairing where the iron sleepers are laid in, on the main
line and branches. The cost of the iron sleepers has been
charged to the renewal fund. With all new roads the
expense of packing and maintaining is greater at the
outset. The directors trust the durability of the iron
sleepers will more than compensate for the immediate
expense now occasioned. There are 18 miles of single
line of iron sleepers are laid on the main line and
branched in the company's hands, and 57 miles of
single line on the new branches. the maintenance of
which is still in the hands of contractors. It is re-
ported to the directors that the maintenance of the iron
road in the new lines in the hands of the contractors
is economical, irrespective of that economy which it
is relied on will result from the enduring nature of
the material compared with wood. The traffic on
these branches is, however, light. On the main line,
where the traffic is heavy, the same economical result,
in present maintenance, has not yet been arrived at.
The accounts of miscellaneous expenses for the last
half-year were subject to an increased charge of 600/.
for wages to police and signalmen, 4001. lighting
stations, 8001. in the goods department, 3,0001. com-
pensation, 2,000/. in the general charges of the esta-
blishment (1,4001. of which was incurred in adverti-
sing and bill sticking), and 1,4001. in Parliamentary
opposition to the proposed lines of railway hostile to
this company, which were thrown out by Parliament.
—(Hear, hear.) I ought to state that in the account
of law charges a sum of 1,1001. is included, which is
the estimate of the expenditure during the half-year
in resisting the attempts still made in all directions to
impose excessive rates on the company. In the profit and
loss account there is an increased charge of 11,0001. for
interest on mortgage debt and dividend on the gua-
ranteed stock of the company, which was paid persuant
to the resolution of the proprietors within 14 days
of the close of the half-year. You are aware,
gentlemen, that the whole capital of the company,
whether productive or unproductive, as entitled to
share in dividend. More than half a million of capital
has been expended on the Tunbridge Wells and Hast-
ings line, no part of which was productive during last
half-year.—(Hear, hear.) It is a subject of gratula-
tion that all differences with the Brighton Company
regarding the London and Hastings and St. Leonard's
traffic are amicably and satisfactorily concluded ; and
while the public may rely on an amount of accom-
modation which few parts of the country possess, the
companies will not act in opposition to each other.—
(Cheers.) Gentlemen, lam not disheartened by the
small receipts that have yet been had on the Ashford
and Hastings line, or on the Reading, Guildford, and
Reigate line. From the commencement of the present
month, you are assured of a fair proportion of the
Hastings traffic; and on the opening of the line
throughout in November, of an equal division.—
(Cheers.) The whole excess of through traffic to the
continent, which the last halt-year presents, compared
with the corresponding of last year, is not more than
that traffic which has been abstracted from you in one
single month by rival routes, which, earning little or
nothing themselves by their competition, have re-
tarded your prosperity without advancing their own.
—(Hear, hear.) We do not consider the increase of
continental traffic which we secured last half-year
as a benefit solely attributable to the attraction of
the Great Exhibition. On the contrary, we rejoice
that so great a confluence of passengers from the
continent has been brought to this country, even by
rival and inferior routes. The interest—the magni-
ficence of this metropolis has become better known ;
and with this knowledge of the comparative advantage
and superiority of the South Eastern Railway as the
direct continental route—(Cheers)—travelling from
the continent to this country is not likely to diminish
but to increase. The belief which was once enter-
tained on the continent generally that it was neces-
sary to spend a large sum to visit London, is now
dispelled. Even from the borders of the Mediterra-
nean—from Marseilles, in the Indian overland route
—the traveller may reach London in 49 hours, at the
expense, for a first-class ticket, of only 6/.—(Hear,
hear.) In performing our special service to Paris by
the eleven hours' route, I am gratified to say that we
have not failed in a single instance.—(Cheers.) That
11 hours has been expanded to 13, 14, and even to 15
hours, but by causes over which we had no control.
Our steamboat service, as well as that of our trains,
has been performed with undeviating punctuality,but
the delays at the Custom-house, arising not from any
want of zeal or efficiency in the officers of the depart-
ment, but from want of accommodation in regard to
space, and from the necessity which an examination
of baggage at Folkestone and Dover, instead of at
the termination of the journey in London, entails on
the passengers of twice or thrice claiming their lug-
gage, has been a constant source of annoyance and
loss of time.—(Hear, hear.) This will now be reme-
died at Dover by the use of a new and large examination
room adjoining the terminus, which is just completed,
more effectually by the system of bring the baggage at
once through to London in bulk, and examining it
here, to make which experiment permission has been
granted by the Treasury—(Cheers.) Gentlemen, we
compare this half-year against the corresponding half
of last year, which was begun with 40,0001. of net
money, applicable to dividend in hand ; we compare
it with the preceding half-year, which we began with
2'2,000/. of net money in hand, and we have, without
either of these sums this half-year, to meet an in-
creased charge of interest for capital yet unproduc-
tive, but which I can announce will, after November,
upon the complete opening of the Hastings line, be
the means of hereafter adding to your net revenue.
Taking all surrounding circumstances into consider-
ation, I think, notwithstanding that on this occasion
the dividend is less than we had hoped, I may pro-
nounce the position of the company to be sound and
hopeful. And, looking at the receipts which have
accrued since the commencement of the present half-
year, which show an increase in six weeks of 25,000/.,
and a receipt in that time of 135,0001. this year,
against 110,000/. last year, I expect, when I have the
honour to appear before you at the next meeting, that
I may be enabled to add, and that you will sanction
me in adding, that it is satisfactory also.—(Cheers.)
I have the honour to move that the report of the di-
rectors, and statement of accounts, as now laid before
the meeting, be received and adopted.
Mr. RENSHAW, the deputy chairman, seconded the
motion.
Mr. Naas begged, on behalf of several sharehold-
ers, to hand in a protest against the charge upon the
capital or reserve fund of the new stock as proposed in
the accounts,
The CHAIRMAN said, as Mr. Nash was not a share-
holder, he must decline to receive the protest.
This course was approved of by the meeting, and
Mr. Nash left the room.
The motion for the adoption of the report was then
put and carried unanimously.
The CHAIUMAN said, it was his duty to move that
a dividend, at the rate of 3 per cent. per annum, be
be declared. He regretted that it was not in his power
to declare a larger dividend on that occasion. The
fact was, that the traffic on the line during the half-
year was not so large as they had anticipated. A pro-
gressive improvement in the traffic was taking place
every day, and he thought they might confidently
look forward to a better state of things than existed
at present. He concluded by moving that a dividend
of Bs. per 30/ share be declared payable on the 16th
of October next, which was seconded.
Mr. LEVY suggested that the income-tax should be
paid out of the balance in hand, earned since the 31st
of ;Lily Witt

The CUAIRM3N said, that the balance alluded to
did not belong to the past half-year, but to the cur-
rent half-year, and was used for the general business
of the company. The balance in hand, after paying
the proposed dividend, would not be sufficient to pay
the income-tax.

Mr. LEVY said he did not wish to be subservient to
the directors, nor to say anything against them which
they did not deserve, but he thought it right to men-
tion that their having a dividend of but Bi. per share
was talked of very much in the city. For his part
he would be very sorry to receive even that amount if
it were not fairly earned. He begged to remind the
proprietors of what he had stated at the late meeting
with regard to the expected traffic from the Exhibi-
tion. it was to the effect that if they carried passen-
gers at unremunerative fares they would have a large
traffic, but a small dividend. He contended that if
the directors had followed his advice and charged
remunerative fares they would now have been able
to declare a dividend of from 12s. to 133. per share.
He also begged to remind the proprietors that he had
on former occasions warned them to have nothing to
do with leasing the Reading, Guildford, and Reigate
Railway, and appealed to them whether the opinions
he had then expressed were not borne out by the
result. The fact was, that half the money paid as
rent was lost to this company.

Tb 4 CHAIRMAN here said that the loss was more
than half, and that it was a very heavy load on the
South Eastern Company.
Mr. LEVY said if the shareholders had supported
him.in rejecting the measure when it was first pro-
posed, his opinion being founded on forty years' know-
ledge of the district, they would not now have been
obliged to put up with an Bs. dividend. With respect
to the statement in the report, to the effect that the
Great Western Company were under a pledge to
Parliament to lay down narrow gauge lines between
Oxford and Basingstoke, which would connect
Reading with the narrow guage lines, he thought it
smelt very much like powder. He hoped it was not
intended to have a contest respecting the broad or
narrow gauges, or to try whether Mr. Macgregor had
more pluck than Mr. Russell. He did not think they
could get much from the Great Western at Reading,
if they persevered in the competition, be thought their
lawyer was likely to have a good job there, and that
he would gain more by it than the company. If they
got into a contest with the Great Western for the
traffic, they would have to work it at a loss. Another
matter which affected their dividend was the contest
with the Brighton Company for the Hastings traffic.
He had urged upon the directors of both companies
during the past four or five years to come to an
amicable settlement with regard to that traffic, but
his advice had been thrown away, for it was not
until a few weeks ago they had come to an under-
standing on the subject. Now, were it not for the
continuance of this contest, they would have been
enabled to declare a 10s. dividend. He had stated on
a former occasion that Mr. Laing, the chairman of
the Brighton, and Mr. Macgregor, the chairman of
the South-Eastern Companies, were both very clever
men, but it sometimes happened that this was a great
misfortune for railway shareholders to have men to
manage their affairs who were too clever. He hoped
that Mr. Macgregor would endeavour to get back the
good name he had at the time when he was elected
chairman of the company. He would tell him what
had brought him into great favour with the proprie-
tors—it was the announcement that he would adopt
remunerative fares, and not carry people on the line
for nothing. He (Mr. Levy) objected to the plan
adopted for the conveyance to Paris and back of the
Lord Mayor and the parties connected with the Exhi-
bition at reduced fares, on the ground that there was
no chance of their using the line again for that pur-
pose. His (Mr. Levy's) maxim was to get a compen-
sation price for the traffic conveyed over the line, and
to let those who chose to carry people for nothing do
so on other lines.

Mr. G. SMITH said he considered that the expendi-
ture during the half-year had been lavish. He felt
disappointed at having an Bs. dividend when they were
told by the chairman at the last half-yearly meeting,
in March, that he believed that the 10s. dividend then
declared would be the lowest the company would ever
receive. The gross receipts for that half-year were
347,3901., the expenses 167,538/., the available balance
179,8521., and the surplus fund stood at 54,0001. He
considered the present report exceedingly unsatisfac-
tory. He did not think there was any necessity
during the past half year tor spending 65,481/. in the
purchase of 20 new engines and 40 new carriages.
He had no wish to damage the property of the com-
pany, but he thought the strictest economy should be
exercised in every department. He was anxious that
a resolution he had to move should be entered on the
minutes of the company. It was to the effect that the
meeting express their disappointment at the dividend
being only Bs. per share.
Mr. GREY said, he did not think there was any
necessity for the motion, as the chairman had stated
that he was disappointed in the result of their opera-
tions during the past half-year. If Mr. Smith had
taken into account the increase mileage worked by
the engines, and the increased in the debenture debt
sanctioned at the last meeting, he would not have felt
himself justified in calling their expenses lavish. In
February last the debenture debt was about 1,600,000/ ,
but on the Ist of July last it amounted to 2,000,0001
There was an addition to the capital of nearly half a
million of money. He considered the operations, on
the whole, rather satisfactory than otherwise. He had
no doubt the chairman could explain everything con-
nected with the expenditure. In his opinion their
chairman and directors were able and efficient men
and he did not think it was treating them fairly to
move such a resolution as that just proposed.
Mr. CROOK, of the Stock-Exchange, said that he
had been a proprietor during the last six months, and
that he had been induced to become a proprietor in
the company in consequence of the speech made by
the chairman at the last meeting, in which he stated
that there would never be a less dividend than
the last, namely, 10s. per share. On the shares he
(Mr. Crook) had purchased there would be a loss at
present prices of 1,4001. As a matter of business
he did not expect that they would have a higher
dividend than ,6s. per share. (Mr. Levy, inter-
rupting him, said—" Ido though.") He then
complained of the erroneous judgment the chair-
man had formed as to the future dividends'
and stated that when the South-Eastern shares were
between 271. and 281. each in the market a certain
house in Liverpool with which the chairman had
been formerly connected, had sold a large number of
them, and that some of the shares had been trans-
ferred into his (Mr. Cook's) name. He concluded
by hoping that, as the chairman bad failed in his pre-
diction at the last meeting, he would be more fortu-
nate by the next nseeting, and that his (the chairman's)
anticipations would be realised.
A PROPRIETOR said, he thought the reason the
expenses of the company were so high was in con-
sequence of the extreme litigation in which they
had been involved.—(Hear, hear.) Taking a
general view of their affairs, he considered that they
had never a more prosperous period than during the
past month.
Mr. Levr—l don't think that.
The CHAIRMAN, in reply to a question, stated that
the company had to borrow 873,0001. during the
half-year, and to pay off 470,0001. If they had
merely to pay off the borrowed money, and to renew
the debentures, they might have done so at four per
cent., but it was a different matter to borrow an ad-
ditional sum of 400,0001. Some of the 873,000/.
had been borrowed at 4f per cent., some at 4+ per
cent., and latterly they had borrowed money at 4
per cent.
A PROPRIETOR wished to know, how it was that
there was so large an amount as 143,0001. of unpaid
calls ?

Mr. CROOK wished to know, why the transfer-
books of the company were closed five weeks before
issuing the report? He also had one question more to
put before the chairman commenced his general reply,
namely, why a delay of five weeks bad occurred in
issuing the report of the directors, which circumstance
had given rise to great speculation with regard to the
dividend.

The CHAIRMAN then replied. He said the directors
had issued their report on the very day on which they
had the satisfaction of receiving the report of the
auditors.—(Hear, hear.) He would not occupy the
time of the proprietors with any personal defence of
himself. He had now eppegfett before them for seven
years, and he had the satisfaction—which the public
reports alluded to by the hon. proprietor (Mr. Crook)
could neither give nor take away—he had the satis-
faction of knowing that he had never made a state-
ment which he did not believe to be founded on fact
and just expectation ; and if he had been sanguine, he
bad deceived no one more than he had deceived him-
self. If the hon. proprietor had realised his shares at a
loss, that was entirely his affair; but if he (Mr. Mac-
gregor) had been at his elbow, as a friend he should
have aavised him not to dispose of them at such a
sacrifice. There was a tide in the affairs of every
company, which no man could control ; and he be-
lieved that the South. Eastern Company had seen its
worst. Since he had had his salary assigned him
for his services, he could say that he bad devoted
whatever talents he was blessed with, and the
most unremitting industry, to promote the best
interests of the company; but be never under-
stood that, over and above all, it was expected
that he should act in the capacity of a pro-
phet.—(A laugh.) He repeated that the anticipa-
tions he had expressed had been honestly entertained,
and were based on the most careful examination that
he could give to surrounding circumstances at the
time. He regretted that the Honourable Proprietor's
investment at present appeared to be clouded by a
possible loss; but he looked forward to the time when
he would be able to realize it without any loss at all.
The observations which Mr. Smith had made in per-
fect good humour were founded in error. He bad
made a comparison of the present dividend with a
lulf-yeat when they bad only btkiittie capital on wbicb

they had now to divide their profits. if they had
earned the 25,000/. in the last half-year which had
been earned in the current half-year, he believed that
they would now have been able to declare a 10s. divi,
dead also. Mr. Smith said they had wasted their
money in buying a large working stock. Now, the
fact was that their rolling snack was smaller, in pro-
portion to their mileage, than that of any other com-
pany in the kingdom, and that they had not had a
single carriage or engine built that was nob abso-
lutely necessary for the traffic. And he said, further,
that they must have another addition to their coal-
trucks and goods-waggons, or they could not derive
the benefit of the traffic of the districts through which
their lines passed. 'That was an undoubted fact.
He would repeat that the capital account of the
company would be virtually closed on the 31st of
January, 1852 ; and if any further capital wee to
be hereafter raised, the proprietors would exercise
their' indisputable right of refusing or sanctioning
it, as they saw fit. It had been asked why they
had expended their reserved fund, which wt s in-
tended for deterioration, in the purchase of new car-
riages. The directors had thought that the best way
of replacing that detetioration was by ordering a
number of new carriages. With regard to the calls
which vs ere not paid up, he trusted that, after the in-
timation made in the report, it would not be teces-
sary for the board to take legal proceedings against
any proprietor who was in arrear. The state c,f the
company's affairs generally be had adverted to almady,
but there were one or two points, which had been
touched upon by Mr. Levy and others, to which be
would briefly refer. And, first, as to the allusion to
tho friends of his in Liverpool and Lancashire. Their
action bad been as independent of him as if he had
never been in existence, and whether they had boug'cit
or sold shares he could not tell, unless be refeered to
the transfer book, in looking over which he was not
in the habit of amusing himself, except it was tr, Isee
that it was correctly kept. But a large proportion of
the stock was held in Lancashire, and comments on
sanguine statements of his wtre quite as likely to be
made in that quarter as they were on the part o f any
proprietor present. Mr. Levy wished that be anti
the chairman of the Brighton Company shot*.ll not
amuse themselves in firing powder and shot ct the
expense of the proprietors; but he had the ' best
authority for believing that their rivals had (Riered
to carry the officers connected with the Great
Exhibition for nothing at all. And when,
therefore, the City of Paris asked the South-
Esetern Company for how much the:i would
agree to carry so many gentlemen by a partioular traits
for a particular occasion, they had thought it right to
offer to do it at half price. The Corporation of Paris
took 250 tickets for the officers connectod with the
Great Exhibition, and that number not, being suffi-
cient, the company had sent 100 more free, which the
Comtnissary of Paris gave the proper parties who had
been invited to the Paris banquet. Nine hundred and
fifty persons in all went over to the festivities, with
3,000 packages of luggage, and the 'whole were dis-
patched in half an hour's time—a thing quite unpre-
cedented in railway movements. Then as to the
Reading, Guildford, and Reigate agreement, that he
could assure theta had never been a very favourite
object of his. It was entered into at a time when
greater competition existed than at present; and
there was then a pressure put upon thf.t directors by
gentlemen in that room, not only for a lease of the
Reading, Guildford, and Reigate line;, but also for
entering into an agreement with the Brighton com-
pany which would have left the South-Eastern pro-
prietors on every occasion subsequent to it without
any dividend at all. Nothing was more popular at the
time than a 7 per cent. lease of the Brighton Railway.
and if they had not made a good bargain of the Read;
ing, Guildford, and. Reigate, let them be thankful that
they bad not fallen deeper into the slough, or hung
themselves with a. lease of the Brighton lines at a
guarantee of 7 per cent. per annum.—(Hear, hear.)
The returns on the Reading line had been very bare,
because the South-Western Company, which had en-
tered into an agreeinent with the Reading Company,
would not give the South-Eastern Company the
benefit of that agreement as the lessees of the Read-
ing line ; and the consequence was great competition
as to the fares. As regarded the reading and Guild-
ford traffic they would be happy to conclude an
agreement similar to the agreement with respect to
the Hastings and St. Leonard's traffic ; and he
trusted that the day was not far distant when such an
amicable arrangement would be brought about ; but
if that result could not be secured until a mach
greater reduction of fares had taken place it could not
be helped. It was a mistake to say they were carrying
goods on the Reading and Guildford line at a loss ;
they:obtained a small profit, and he thought the busi-
ness would increase. No company had a better terminus
than the South-Eastern and their goods station at
Bricklayer's Arms-was better than the Great Western's
at Paddington. Mr. Smith's resolution was tantatnount
to a vote of censure on the board ; and as the directors,
as well as the proprietors, all felt disappointment at
the present falling off in the dividend, he trusted Mr.
Smith would see that his resolution, as a mere ex-
pression of disappointment, was quite unnecessary.
If the board could have penetrated into futurity that
disappointment would not have occurred; but he
hoped the company had now seen its worst days.
Mr. CROOK—You have told us that before, Mr.
Chairman.

Mr. LEvr —Well, let us try him once more.
Mr. SMITII said he had never intended to move a
vote of censure on die board ; but as his motion
appeared to be generally distateful, he wotild not
press it.
Mr. Smith's motion was accordingly withdrawn ;
and the resolution for declaring the dividend was
carried nem. con.

The CHAIRMAN Said the business was now con-
cluded, and he trusted that at their next meeting, in
spite of his bad character as a prophet, that all would
look more cheerful and prosperous.
Thanks were then voted to the chairman and direc-
tors, on the motion of Mr. SMITII, and the meeting
separated.

SHREWSBURY AND HEREFORD.
The works throughout the whole of this line are,
progressing towards completion. In the neighbour-
hood of Shrewsbury the operations are very much ad-
vanced, most of the bridges being completed, and
the various cuttings and embankments in a forward
state. _ _ _

At the other end of the line, in the neighbourhood
of Ludlow, equally rapid progress has been made.
The bridge over the River Corve is being carried on,
and it is expected that the line will be completed as
far as Ludlow by the close of,the year.