The Sun.
London, England, 1856-02-14 00:00:00

GREAT WESTERN.

The report of the special committee on the affairs of
this conipally, adopted by the board of directors on the
31st ult., has just been issued. It states that, in conse-
quence of a request which was made by the present
chairman uf the company, a special committee was ap-
pointed by thee board of directors on the 9th of August,
1855, to inq live into the state and condition of the com-
pany, and to devote themselves, in co-operation with
him, to a thorough investigation of all its affairs. In
the selection of • that committee it was thought desirable
to request the a ssistance of the former chairman and the
present deputy-chairman, and also to appoint two other
directors who b ad been nominated to that office by
the proprietors in September, 1349, together with
one director mon s recently elected by each of the
t.v. Shrewsbury lompt9:iies, whose connection there-
with would be likel'y to give material aid in the pro-
secution of the inq airy. The report compares the
capital expenditure of the company on the 30th of June,
1855, with the amount .of the outlay estimated by the
committee of consultati,en in the year 1849, which was
fixed by them at about 1 7,500,0001 , provided that cer-
tain arrangements could pit entered into with the London
and North-Western Comp any, for the purpose of saving
an outlay of capital to both companies, upon terms of
.mutual advantage. The co u.sultation committee, with a
view to effect a saving, proposed that the Great Wes-
ternive rati
and London and North-western lines at Leamington
should run over one viaduct through that town ; that a
centre
junction of the res
toP avoidt echl
e w 3
intersectioniu Birminghamo
f the should
that town by two separate lines, with expensive
be formed, so as
through stations for each, and by dispensing with the
mixed gauge over a portion of the lines north of Oxford.
It was further proposed to arrange for a joint lease or
common user of the Stour Valley line to Wolverhamp-
ton. Negotiations were entered into for that purpose,
but all attempts at an arrangement to that effect failed
altogether. The London and North-Western in 1851
opposed the measure in Parliament, and it was rejected.
Under these circumstances, the original design of the
years 1845 and 1846 for the Birmingham and Oxford
and Birmingham, Wolverhampton, and Dudley Rail-
ways passing through the centre of Birmingham, in di-
rect continuation of each other, and altogether indepen-
dent of the London and North-Western system, with
the central through station on Snow-hill, have been
necessarily completed. In addition also to such expen-
diture, a very considerable joint station for the Oxford,
Worcester, and Wolverhampton and Shrewsbury and
Birmingham Companies has been required and con-
structed in the town of Wolverhampton, together
with a new junction railway beyond it, to connect the
Great Western lines with the Shrewsbury and Birming-
ham Railway, near to their Stafford-road station. The
committee find, after carefully analysing the details
of all the expenditure of capital in respect of
those uucertakings, upon the plans thus unavoid-
ably altered, comprising all that remains still to be
paid fur their completion, as well as the past ex-
penditure for them, that the cost will exceed the former
estimates by 1,950,000/, The consultation committee in
1849 estimated the cost of the Oxford and Rugby, Bir-
mingham and Oxford, and Birmingham, Wolverhampton,
and Dudley Railways, with interest to the let of May,
1851, at 4,68g,000/., but the total expenditure, includ-
ing all unfinished works, with liabilities and interest,
will be 6,638,1361., being an increase of 1,950,1361."
The interest alone during their actual construction, from
May, 1851, to their respective periods of opening have
added 368,0001. to the estimates of the consultation com-
mittee. The excess in the purchases of land and compen-
sation upon both of the northern lines through the centre
of Birmingham, and through the mineral districts beyond
it, have cost 560,000/. snore than the estimates of 1849.
Excess in cost of works, 385,000/.•' mixed gauge and sta.
Cone, 211,0001. more ; 193,0001. for additional stations
and goods premises; and 121,0001. extra cost at Wolver-
hampton joint station. These, with 57,000/, for legal,
Parliarneutary, and otherseeneralexpenses which occurred
during the very prolonged period of construction, make
up the excess of 1,950,0001. for the three northern
lines up to their final completion, and including all ha-
bilities. The next large item of expenditure is that of
the Wilts, Somerset, and Weymouth Railway, of which
3l miles are at present open—viz., from Thingley
Junction to Frame 12 miles, from Westbury to War-
minster 4i miles, and the Radstock branch 8 miles. The
portions still to be opened are from Frame to Wey-
mouth, 54 miles ; from Warminster to Salisbury, 20i
miles ; from Bradford to Bathampton, 10 miles ; to-
gether, 93 miles, making the total length 1244 miles.
The ascertained cost of the whole undertaking, includ-
ing all further expenditure and every liability, will be
3,000,000 f.

Although only 31i miles of this line have been yet
productive of income, the • revenue account has been
charged ever since 1849 with all the interest on a capital
of 1,370,0001., then expended ; and, since the opening
of the Radstock branch, in 1854, on a capital of
1,433,0001. ; out of which sum 750,0001., at least, had
been actually applied to the land, works, and other ex-
penses for portions of the railway which were for some
time suspended, and are now about to be finished ;
so that the further interest against the revenue account,
when all the 93 additional miles shall have been suc-
cessively opened, will only become payable on the re-
mainder of that capital—viz , ou 1,i67,0001.
The special committee state that the board of dire°.

tors bad done their utmost to carry out the recommenda-

tions of the consultation committee of 1849, and to com-
plete the Wilts, Somerset, and Weymouth undertaking
at the erpeuso of other parties; but the parties in ques-
tion were unable to raise the funds, and proceedings
having ensued in the court-, of law against the company
by mandamus, and in Parliament by landowners, the
company were compelled by the act of 1854 to
finish and open those linos in the summer of 1856.
Among other items of productive expenditure they
sate that the 59,5001. expended on the Paddington
Hotel yields a return of 2,0001. a-year, and will eventu-
ally realise 3,5001. a-year, or 6 per cent, per annum ;
and that the hotel has proved an inducement to the pub-
lic to select the line fur travelling to London, and in
that way it becomes indirectly a great benefit to the
company. The committee boar testimony to the just
principles upon which the accounts are made out, and
the accurate manner in which they are checked. The
stores' accounts are made out strictly on the principle
that nothing but that which is really additional new
stock, such as carriages, waggons, locomotives, &c.,
should be charged to capital, while all renewals and
repairs of every description, and however extensive, are
charged to revenue, The auditors have regularly
checked these accounts every half-year, and they ap-
pointed persons wholly independent of the storekeeper
himself to take the- at ►ck at different periods. The
last occasion for taking stock was in June, 1854, when
tho difference between -the auditors and storekeeper
was quite immaterial, With regard to the capit it
account, the committee state that the borrowed money
on various securities would eventually amount to
10,365,0001. These loans represent the first charge
on the aggregate revenues of the Great Western lines,
already amounting to 1,385,0001. per annum (exclu-
sive always of the two Shrewsbury railways), and pro-
ducing a net income of 800,0001., after paying all the
working expenses of the company. Debentures to the
amount of 4,365,0001„ included above, may be paid off
at any time by the issue of stock of the company, or in
part by the sale of the shares held by the company in
other undertakings, as soon as those share improve in
value. The remainder (6,000,0001.) may be converted
into a mortgage stock or perpetual annuities, not ex-
ceeding 4 per cent. per annum. The share capital of the
company amounts to 13,174,302/., including 4,825,0091.
preference stock, of which 3,417,5001. is at present re-
deemable, while only 1,407,600/.,, at 4 per cent, is irre-
deemable. A reduction of interest to 4 per cent. per
annum, whether payab!s on debentures or on preference
stock, after the whole expenditure shall be completed,
would alone represent a dividend of nearly 1 per cent.
per annum to the ordinary shareholders. The committee
believe that the board have taken-every practicable pre-
caution for obviating the inconveniences which might
attend the renewal of loans, even in the most difficult
times. The committee estimate the total amount
hat will be required to complete the arrangements of the
company for unfinished lines or works, together with the
payment of all outstanding and prospective liabilities,
will be 1,076,0001., in addition to the expenditure at the
end of December, 1855. They state that as soon as that
expenditure is completed the-capital account of all exist-
ing engagements on Great Western lines may be con-
di :dewed closed.

With regard to the legal and Parliamentary expenses
for Great Western account, including claims in respect
of all bills which have not yet been revised and adjusted,
from 1850 to 1855, both inclusive, the amount is
188,4211., of which 51,000/, was charged to capital be-
fore the 30th of June, and 1,5001. to revenue, leaving
an apparent balance against the company of 128,221/.
Advances on account of this sum to the amount of 79,300/.
have been made, so that the liabilities under that head
do not exceed 50,0001., which is comprised in the calcu-
lations of expenditure to be provided for. The committee
consider Ranger's suit at an end, and they are not ap-
prehensive as to the result of 51`Intosh's. The surplus
capital of the company over and above all expenditure
arid estimated liabilities, as far as it is now possible to
foresee, may be stated at 130,0001. This amount is ex-
clusive of a further sum of 140,0061., which may be
ap-
plied to the general purposes of the two Shrewsbury
lines. The total authorised capital of these lines amounts
to 3,321,033/, The committee then enter at some
length into the revenue and expenditure account. With
regurd-to the charge for maintenance of permanent way,
the plan pursued by the Great Western Company has
hitherto been to charge the whole cost of maintenance
against revenue, as and when incurred ; but that of the
other companies compared with it by the auditors has
been to debit the cost of all materials used for renewals
to a suspense account, charging certain annual sums to
revenue for the credit of that account. The conse-
quence has been that, through the system pursued by
this company, the whole cost of materials, as well
as of labour, incurred in the maintenance, has been
regularly charged to and borne by revenue, without
any reserve or suspended claim ; whereas the sys•
tem pursued by the other companies, the sums
charged have often been less than the actual expendi-
ture, and the deficiency has to be provided for at a future
period. Not only is the cost of maintenance charged
against revenue as and when incurred, but the works
done are of the most permanent character. During the
last five years upwards of ten miles of clay cuttings have
been permanently drained and ballasted, several of the
embankments have been considerably raised and rebel-
lasted, and, besides the or.linary repairs of stations, per-
manent improvements and permanent additions have
been made at Bristol, Bath, Shrivenham, and otherparts
of the line. The committee are satisfied- thati the stock of
engines, waggons, vans, and carriages is not only large,
but in good order, and that a sum of 250,0001. will be
ample to provide additional plant to work the Wilts,
Somerset, and Weymouth line when open throughout,