The Sun.
London, England, 1851-03-15 00:00:00

EASTERN COUNTIES RAILWAY.

IThe report of the, committee of shareholders in refer-
ence to a woes-slug agreement with the Eastern Union
and Norfolk Railway Companies has just been issued.
It states that. although they have not been enabled to
carry out to the full extent the object of their appoint-
ment, namely, that they should " settle the terms" of a
working agreement between the three companies, the,
committee have, nevertheless, collected information of a
nature calculated to throw considerable light upon the
question, and to aid in promoting a fair and sound deter-
mination upon it. They in the first instance proceeded
to ascertain the data upon which the directors had re-
commended the shareholders toconfirm the agreement
for working the three lines. The guarantees of the
Eastern Union Company were put down at 70,0001. per
annum in the proposed agreement, but the committee
discovered that that sum did not include the liability of
the Eastern Union Company to pay to the Stour Valley
Railway a fixed interest on the capital employed in the
construction of that line, amounting to about 9,0001. a
year, and else their liability to the rentals of the Stow-
market and Lark Navigations of about 1,5001, making
together 10,500/. per annum. The committee examined
the following officers of the company on the subject:—
Mr. R. Moseley, the goods manager; Mr. Gooch,
locomotive superintendent; Mr. Richardson, coaching
superintendent; and Mr. Ashcroft, superintendent of
way and works. On being requested to state to the
committee the nature of the details of information
furnished by them to the deputation of directors,
these gentlemen declared that they had not been called
upon for, nor had they rendered, any information
whatever relative to the subject of the proposed
agreement either to the board or the deputation;
and Mr. Moseley stated that he was not aware
of the intended measure until two days atter it had been
concluded. The committee also separately examined each
of these officers in reference to the probable effect of a joint
working agreement on the earnings and expenses of his
particular department; and they were eventuallyrequested
by the committee to make a joint report of the result of
their deliberations. This they accordingly did, and from the'
document furnished to the committee it appeared that
while these officers agreed upon the desirableness of
working the three lines under one management, they did
not think that such an arrangement would produce any
increase in the total gross receipts; but that the mileage
run might be reduced by about 130,000 miles per
annum, equal, as they estimate, to a money saving in
working and all other expenses, at the rate of 2s, per
mile, of 13,000/, They also estimate a further
saving, to arise from the consolidation of stations,
locomotive shops, and supervision generally, of 3,000/.,
making a total estimated annual saving of 16,0001.
Mr. Moseley stated that the concessions (by way of re-
bate and cheaper rates) made to customers, arising out
of the competition for the goods traffic between Norwich
and London, have not during the past year exceeded the
sum of 300/. He also expressed an opinion that the gross
earnings in his department might be increased under a
joint working, in respect of goods and cattle, to the ex-
tent of some 5,0001. per annum, 'by raising rates and
procuring goods to be carried on the line wh,ch are
now carried coastwise; but that such probable in-
crease would be much more than counterbalanced by
the abstraction of traffic from this company by com-
peting lines, From the statement furnished to the com-
mittee by Mr. Quilter, it appeared that the amount of
guarantees, according to the heads of the proposed agree-
ment, would be—for the Eastern Counties, 266,000/.; for
the Norfolk, 60,0001; and for the Eastern Union 70,000/.
Add to the Norfolk 10.0004, and Eastern Union 6,0001.,
and deduct the same from the Eastern Counties, being
the estimated interest which the latter company will
have to pay on the capital to be invested in the pur-
chase of the rolling stock, &c., of the two
farmer companies, and adding to the Eastern Union
for rentals 10,500/., would allow the Eastern Counties
250,000/., the Norfolk 70,000/., and the Eastern Union
86,500/. The committee state that,these appear to be the
real sums at which the fixed charges payable out of tho
common earnings ought to be stated in estimating the effect
upon Eastern Counties' interests of the operation of the
proposed agreement, otherwise the effect of the purchase
of the rolling stock for the traffic of the united lines by
one company (the Eastern Counties) would bo to give
to the other companies a proportionate participation in
the united earnings, they contributing no rolling stock to
aid in the production of those earnings. From the same
statement it also appears to the committee that the pe-
cuniary effect of an union between the three companies
on the terms proposed would be an annual loss of
70,8781., which result Mr. Quilter arrives at in the fol-
lowing manner :—Norfolk Company's earnings, 122,8304;
less working expenses, 76,5204, and guarantees, 70,000'.•
together, 146,5201., leaving a deficiency of 23,690 i
Eastern Union Company's earnines, 96,715/. ; less
working expenses, 48,547/4 and guarantees, 86,500/ ;
together, 135,0474, leaving a deficiency of 38,3324,
which, added to the deficiency of the Norfolk,
makes 62,022/. es the deficiencies of tile two
companies combined, and which would bo payable out of
the joint earnings before any division of profits could
take place amongst the ordinary stockholders. Eastern
Counties earnings 702,453/4 less working expenses
335,006/., and guarantees 250,000/.; together 605,0061.,
leaving a surplus of 97,447/. in favour of the Eastern
Counties Company, but which under the operation of the
proposed agreement would bo absorbed by the combined
deficit in the revenue of the other two companies to the
extent of 62,022/., leaving only the sum of 35,425/. From
this latter rum, 2-Bths would be deducted for the Norfolk
and Eastern Union Companies, amounting to 8,856/.,
and which added to the deficit of 62,0221., would show
the loss entailed upon the Eastern Counties Company by
the proposed arrangement to be 70,8781. After a
deliberate consideration of the evidence adduced the
committee have come to the conclusion that the terms
of the proposed agreement are not based upon
au equitable regard. for the interests of the
Eastern Counties Company, and that if adopted and
carried into execution, a serious and permanent
injury would thereby be inflicted upon the property.
The committee, therefore, strongly, and without he-
sitation, recommend to the shareholders that they do
not confirm the proposed agreement. The committee
state that they would fail in their duty if they did not
express their opinion that the proceedings of the
board of directors in respect of this measure do not
appear to have been characterized by that caution
and deliberation which were due to its magnitude
as a commercial question, and especially to its vital
importance as affecting the extensive interests intrusted
to their keeping. But while the committee recommend
the non-adoption of the terms proposed, they attach a
high degree of importance to the establishment of an
equitable working agreement, not only with the Eastern
Union and Norfolk Companies, but also with other lines
in the. 'eastern districts, and for the accomplishment of
which they think that this company should be pre-
pared to enter into liberal arrangements. Acting upon
this view, the committee have opened a communication
with the directors of the two former companies, and have
taken steps with the view of bringing about a conference
with the Newmarket and Chesterford Company.
Proxies having been granted by a considerable numberof the shareholders with the view of supporting the
adoption of the proposed agreement, the committee con-
sider it highly expedient that such proxies should be
withdrawn, and accordingly recommend their formal
revocation.

SEABORNE MAILS.
[N signifies that the malls are sent from the General Post-office
by the night—and M by the morning--dispatch.]