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

RAILWAY INTELLIGENCE.

GREAT WESTERN.

The report of the special committee on the affairs of
this company, 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 of the company, a special committee was ap-
pointed by the board of directors on the 9th of August,
1855, to inquire into the state and condition of the com-
pany, and to devote themselves, in co-operation with
him, to a thoroagh investigation of all its affairs. In
the selection of that committee it was thought desirable
to request the assistance of the former chairman and the
present deputy-chairman, and also to appoint two other
directors • who had been nominated to that office by
the proprietors in September, 1849, together with
one director more recently elected by each of the
two Shrewsbury companies, whose connection there-
with would be likely to give material aid in the pro-
secution of the inquiry. The report compares the
capital expenditure of the company on the 30th of June,
1855, with the aftaiit of the outlay estimated by the
committee of consultation in the year 1849, which was
fixed by them at about 17,500,0001., provided that cer-
tain arrangements could be entered into with the London
and North-Western Company, for the purpose of saving
an outlay of capital to both companies, upon terms of
mutual advantage. The consultation committee, with a
view to effect a saving, proposed that the Great Wes-
tern and London and North-Western lines at Leamingten
should run over one viaduct through that town ; that a
junction of the respective railways in Birmingham should
. be formed, so as to avoid the intersection of the centre
of that town by two separate lines, with expensive
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 Ren-
ews 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 becu
• 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 Wolverbatnpton, 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 undertakings, upon the plans thus unavoid-
ably altered, comprising all that remains still to be
paid for 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 lst of May,
1851, at 4,688,0001., but the total expenditure, includ-
ing all unfinished works, with liabilities and interest,
will be 6,638,1361., being' an increase of 1,950,136/.
The interest alone during their actual construction, from
May, 1851, to their respective periods of opening have
added 368,000/. to the estimates of the consultation com-
mittee. The execs.; in the purchases of land and compen-
sation upon both of the northern lines through the centre
of Birmingham, and .tbr ueda the mineral districts beyond
it, have cost 560,000/. mar than the estimates of 1849.
Excess in cost of works, 335,0001.; mixed gauge and sta..
tioas, 261,0007. more ; 193,0001 for ad litional stations
and goods premises ; and 121,0001. extra cost at Wolver-
hampton joint station. These with 57,0001. for legal,
Parliamentary, and otherg erieral expenses which occurred
during the very prolonged period of conttructoe, make
up the excess of 1,950,0001. for the three northern
lines up to their fiehl completion, and including alt lia-
bilities. The next large item of expenditure is that of
the Wilts, Somerset, and Weymouth Railway, of which
31l miles are at present open—viz., from Thingley
Junction to Frame 12 niilee, from Westbury to War-
minster 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, 204
miles ; from Bradford to Batharnpton, 10 miles ; to•
nether, 93 miles, making the total length 1244 miles.
The ascertained cost of the whsle undertaking, includ-
ing all further expetniiture and every liability, will be
3,000,000 f.
Although only 31. miles of this line have been yet
productive of income, the revenue account has been
charged ever since 1349 with all the interest on a capital
of 1,370,0001., then expended ; and, since the opening
of the Radstock branch, in 1554, on a capital cf
1,433,0007. ; out of which sum 750,0001., at least, had
been actually applied to the late), works, and other ex-
penses fur portions cf 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 03 additional miles shall have been sue-
ceesively opened, will only become payable on the re-
mainder of that capi; al— viz , 1,507,000/.
The special committee state that the board of direc-
tors had done their uttnest to carry out the recommenda-
tions of the consultation committee of 1819, and, to corn-
plete the Wilts, Somerset, and Weymouth undertaking
at the expense 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
Ly ssandamus, and in Parliament by landowners, the
company were compelled by. the act of 1854 to
finish and open hose lines in the summer of 1856.
Among other items of productive expenditure they
s rte that the 50,500'. expended on the Paddington
Hotel yields a rctnro of 2,000/. a-year, and will eventu-
sely realise 3,500/. a.year, or 0 per cent, per annum •
end that the hotel haentroved an inducement to the pub:
lie to select the line fift travelling to London, and in
that way it becomes indirectly a great benefit to the
company. The committee bear testimony to the just
principles upon which the accounts are niade out, and
the? accurate manner in which they are checked. Toe
stores' accounts are made out strictly on the principle
that nothing but that which is really a'lditional new
stock, such as carriages, waggons, locomotives, &e.,
should ,he charged to capital, while all renewals and
repairs of every description, and however extensive, are
charged to revenue. The auditors Lave regularly
checked these accounts every half-year, and they ap-
poineed persons wholly independent of the storekeeper
himself to take the et iek at different periods. The
last occasion for taking stock was in June, 1854, when
the difference betweeti the auditors and storekeeper
was quite immaterial. With regard to the capita
account, the cominittethettate that the borrowed nosey
lon various securities would eventually amount to
0,365,000/. These loans represent the first charge
on the aggregate revenues of the Great Western lines,
already amounting to 1,385,900/. per annum (exclo-•
Rive always of the two Shrewsbury railways), and pro-
ducing a net income of 800,0007., after paying all the
working expenses of the company. Debentures to the
amount of 4,365,0007., 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 eoon as those share improve in
value. The remainder (6,000,9.001.) may be converted
into a mortgage stock or petpetual annuities, not' ex-
ceeding 4 per cent. per artenni. The share capital of the
company amounts to 3317-1,30.27., including 4,825,002/.
preference stock, of which 3.417,500/. is at present re-
deemable, while 0n1y1,407,5007., at 4 per cent, is irre-
deemable. A reduction of interest to 4 per cent, per
annum, whether payab'e on debentures or on preference
stock, ;titer the whole expenditure shall be completed,
would alone represent a dividend of nearly 1 per cent.
per annum to the ordinary. shareholder,. The committee
believe that the board` have taken every practicable pre-
Caution for obviating the lubouveniences which might
attend the renewal of loans, oven in the most difficult.
times. The committee eetimate 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 outstaedieg paid prospective liabilities,
will be 1,076,000/., he 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 way be eon-
idered closed.

With regard to the legal arid
.Parliamentary expenses
for Great Western account, including claims in respect
of all bine which have not yet been revised and adjusted,
from 1850 'to 1355, both inclusive, the amount is
183,4211., of which 51,090/. was charged to capital be-
fore the Zeth of June, a 9 1',500/. to revenue, leaving.
no apparent balance against the company of 128,221/.
Advances on account o€ thin tiUlit to the .amonnt of 79,000/.
have been made, so that the liabilities under that head
Flo 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 11I'Intosh's. The surplus
capital of the company over and above all expenditure 9
and estimated liabilities, as far as it is new possible to
foresee,. may be stated at. 130.000/. This amount is ex-
elusive of a further euneof 140,000., which may. e„p_
P lied to the general purposes of the two Shrewsbury
lines. The total authorised capital of these lines amounts
to 3,321,033/. The contsuittee then enter at seine
length into the revenue and expenditure account. With
regard to the charge for maintenance of permanent way,
the plan pursued by the Great Western Company has
hitherto been to charge tho 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 come- .
ix the system pursued by.
efuence Lae been that,
cost of materials, as well
tf,roug
p y, the whole •
t hwei without
ash of irleurred in the maintenance, has been
regularly charged to and borne by.
any reserve or suspended claim,
the sums
whereas the
tsm pursued by the other companies,
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.
last fire years upward: of ten miles of clay cuttings
During
have
e
been permanently drained and ballasted, several of the
embankments have been conaideiably raised and rebel-
lasted, and, besides the eielinary repairs of stations, per-
manent improvements and permanent additions have
been made at Bristol, Beth, 2hrivenbam, and other parts
of the line. .The committee are satisfied that the stock of
engines, waggons; vans, end carriages is not only large,
but in good order, and that sum of 250,0001. will
be
ample to provider additional plant to work the Wilts,
Somerset, and Weymouth Ulu) whet/ cpe4 tbronhout,