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

TUESDAY

RAILWAY INTELLIGENCE.
EASTERN COUNTIES.
The 30th half-yearly meeting of the shareholders of
this company was held yesterday at the London
Tavern, Bishopsgate-street. The chair was taken at
one o'clock by Mr. D. Waddington, M P., chairman
of the board, who was supported by Mr. Bagshaw,
M.P., and many of the directors. There was a nu-
merous attendance of proprietors.
The notices convening the meeting having been read
by the secretary,
Mr. Heere, a shareholder, said he wished, before
anything further was done, to protest against the con-
stitution of the board of directors. Since tie last
meeting two directors, Mr. Fane and Lord A Paget,
had been added to the board by the other directors,
the place of Mr. Joseph Glyn and Mr. Samuel
who had resigned. He did not wish to say anything
disrespectful of the new directors, but it had certainly
been understood that after the year 1849 all members
of the board of directors were to be elected by the pro-
prietora—(Hear, hear)—and he wished to know whe-
ther any explanation would be afforded to the meeting
on that subject.
The CHAIRMAN replied that at the proper time he
would be ready to give an explanation.
It was agreed that the report of the directors and
the statement of revenue and expenditure, ccpies of
which had been forwarded to the proprietors should be
considered as read. Abstracts of these dchuments
have already appeared.
The CHAIRMAN then observed that it was Lis wish,
on the part of the board of directors, to afford the
shareholders information upon any points on which
it might be desired, and to make them as fully con-
versant with the affairs of the company as were the
directors themselves. The statement of the traffic
receipts, as would be seen from the report, exhibited a
decrease as compared with the six months ending July
4, 1850, of 33,524/. Some reduction in their receipts
for the past half-year was, however, anticipated. It
would be necessary, in dealing with this part of the
subject, to refer to the proceedings of the Great
Northern Railway Company, but he could assure
them he did not do so in any spirit of hostility, but
simply that they might understand the position in
which they stood with regard to that company. The
Great Northern Company, up to August last year,
had been feeders of the Eastern Counties line at Peter-
borough, bringing to them at that place the bulk of
the goods traffic for the south, because, although the
London and North-Western line had a communica-
tion with Peterborough, the great proportion of the
southern traffic came over the Eastern Counties line.
When, however, the Great Northern line was
opened throughout, in August last, the Eastern
Counties Company were deprived, to a great extent,
of the Lincolnshire and other northern traffic,
and lost a large amount of revenue which they had
previously enjoyed. The Great Northern Company
also opened a branch from Hitchin to Royston,
and, by running omnibuses thence to Cambridge, and
conveying passengers at a lower fare than the Eas-
tern Counties, they abstracted much of the traffic pre-
viously carried by the Eastern Counties Company'
between Cambridge and London. The Eastern Coun-
ties, directors, therefore, felt it their duty to bring
down their fares to something like the amount charged
by the Great Northern, and their receipts had of
course been considerably diminished by the reduced
fares adopted. With regard to the expenditure, the:
would observe that a very considerable reduction had
taken place in their locomotive expenses during the
past half-year—a reduction to the extent of something
like 3d. per running mile. (A Shareholder—" About
2i.1.") Well, probably the hon. proprietor was cor-
rect in his calculation. Reports on the subject of the
locomotive stock had been made by Mr. Gooch, their
locomotive superintendent, whom he had always found
most anxious to meet any suggestion made to him ;
and who devoted himself with unwearied attention to
his duties. They would observe that Mr. Gooch ex-
pressed his opinion that the working expenditure
would he gradually reduced, and in that statement be
(the Chairman) fully concurred. There were some
items in their accounts (which had for the four
half-years past been made out under the super-
intendence of Messrs. Quilter, Ball, and Co.),
which, coming under the head of extraordinary ex-
penditure, might require some explanation, for he
knew there was a general impression that their expen
diture was more extravagant than that of other
metropolitan lines, and higher than it ought to be.
There was during the last half-year a charge for
fifty-one waggons to replace old stock. They were
aware that some years ago they had unfortunately
frequent accidents on their line, causing great de-
struction to their waggon stock, which was being
gradually replaced, and hence arose the necessity for
this charge. There was in the accounts an item of
4861. for the expenses of the shareholders' commit-
tee. Now, he hoped that item would not appear in
the statement again, but that they would be able to
dispense with the services of such a committee in
future.—(Hear, hear.) There were charges under the
head of locomotive expenses—including 3,3001. for
the fifty-one waggons to which he had before referred
—to the amount of 5,5451., which were not likely
again to occur; and he thought, then, there was a
very fair prospect that their expenses would soon be
considerably diminished. 'With regard to the expen-
diture for permanent way, he had felt it his duty to
call upon the superintendent of that department to
give some explanation as to the excess of expenditure
during the last half-year over that of the correspond-
ing period last year. It appeared that the additional
expenditure was occasioned by the enlargement of
stations, the placing of new sidings, the erection of
coalsheds, goods warehouses, and various other
works which had been charged upon the revenue.
Now, according to his view, although their capital
account had been stated to be closed, he thought it
impossible that could be the case in a concern like the
Eastern Counties Railway Company. At Ware, for
instance, they had a station containing a very large
goods shed, but it was found to be totally inadequate
to the traffic. If they wanted a certain sum merely
for the repair of that station, the charge ought to be
thrown upon the revenue ; but if it was necessary to
enlarge the warehouse, the advantage of such an im-
provement would not be derived exclusively during
the next half-year, but would be permanent. He
thought, therefore, that the charge for such works
ought not to be thrown upon the shareholders for the
current half year, but ought to be placed to the capi-
tal account.—(Hear, hear.) The directors had been
authorised to set aside 8,000/. for the half-year ending
in June, and 14,000/. for the half-Sear ending in De-
cember, for the maintenance of the permanent way ;
and although Mr. Ashcroft, the superintendent of
ways and works, did not think the 8,000/. would be
requisite, the directors had considered that the safer
course would be to include that amount of charge in
the accounts for the past half-year. The directors had
stated in their report, having regard to the experi
ment of fish. jointing the rails, that further experience
might induce them to recommend a reconsideration of
the propriety of putting aside an annual sum as a de-
preciation fund for the permanent way, or an altera-
tion in the amount so reserved. For his own part he
believed the principle of the fish, joint was sound, and
that they might be able eventually to give up alto-
gether the maintenance of a reserve fund for the per-
manent way. He would say one word with regard to
the legal expenses included in the accounts, which
amounted to 5,006/. 16s. 5d., and might be considered
a very large sum.—[A. Shareholder—" For how
long ?"] This charge was for a period of six months.
Their solicitors were gentlemen of the highest emi-
nence in the profession, and no less than 3,369/. of
the charge he had mentioned was for Parliamentary
expenses during the last session, necessarily including
a very large sum out of pocket. The expenditure was
incurred not only with the view of protecting the pro
party of the shareholders, but also the guaranteed
stock, and he thought it a question deserving consi-
deration whether the ordinary share capital of the
company ought to bear the whole burden of this
charge.—(Dear, hear.) The money was not spent
merely fur the benefit of the proprietors during a par-
ticular half-year, but was for the advantage of all
future shareholders. He could point out other com-
panies which threw such charges upon their capital,
and his own opinion was that the guaranteed stock
ought to bear a share of these expenses with the
ordinary shareholders, for he must remind them
that not only had they been obliged to enter into con-
tests with other companies during the last half-year,
but that they would have to engage in similar contestst
during the next session of Parliament. He w
ascertain what were the views of the proprietors ge-
nerally on, this subject, for, if they had hitherto
acted upon 'a
wrong principle, they might change
their course in future. There was another charge in
the accounts of 741. for proxy stamp, and he must
say, for his own part, that he would never put the
shareholders to the expense of a shilling for the sake
of obtaining a proxy.—(ilear, bear.) There was in
the revenue account a charge of 2,5371. 9s. Gd., paid
during the half-year for casualties arising from the
unfortunate accident which occurred the day before
last Christmas-day, and the amount, under the bead
of casualties, still outstanding was estimated at 7,500/.,
making together 10,0371. 9e. 61 It was estimated
that the amount of 7,500/., which was set aside, would
more than cover the demands under this head. There
was another item of 2,7691. 15s. 3d. for the amount
expended in the preparation of statements with the
view of appealing against the parish assessments.
That expense was incurred previous to this half-year
in getting up data showing what the company
earned per mile, and at each of their stations, in
order that if any question of rating arose they
might have the means of substantiating their case.
A sum of 1,647/. had also been paid to Messrs. Quil-
ter and Ball for investigating the capital expenditure
of the company. He had received numerous letters
inquiring how long this expenditure was to go on,
and he begged to say that he bad ascertained that the
additional expenditure was estimated at about 3001.,
and the charge would then cease. lie need not re-
mind them, however, what valuable information they