The Sun.
London, England, 1856-01-23 00:00:00

wi railway directors was giving too much aecommoda-
tion, read taking too little for it. The salaries and emolu-
ments of railway officials were too high. 'lt had been re-
marked by Mr. Stephenson, who was a great authority on
railway matters; that, notwithstanding, competition and
low fares railway traffic had gone on increasing ; but,
although the traffic had increased considerably, there had
been no corresponding increase of divideud. He thought
that showed a grievous error in the management. (Ap-
plause.) It was not likely, as stated by Captain finish,
that Englishmen would sit down idly and repine at that
state of things, without making some energetic exertions
10 put matters right. If the shareholders would du their
duty as men of business, he, for one, had no fear for rail-
way property. They did not want to alter railway boards
so much as they required the alteration of their plans. It
was the system of dealing with the property that required
alteration.
A SHAREHOLDER fully concurred in these observations,
but thought they should lay down some general principles
to guide them as to future management. He considered
that railway directors were not paid sufficient for their
services ; 1001. a year was not sufficient to secure their
attention to the interests of the shareholders.
Mr. VANCE said the great evil was not so much from
want of good management as from what was called the
jobbery of directors. Whenever the question of an exten-
sion line, or a branch or lease of another line was brought
forward to which he was opposed, he always found that
the independent shareholders were swamped with proxies
sent to the directors, and; of course, they could do nothing.
At other times competition was got up for a purpose. A
comparison had been made between the management of
French and English railways, but he thought the slower
rate of travelling adopted in France would not be tolerated
in England. They also charged lower rates, and, owing
to the slower rite of travelling, their expenses were not so
much as in England.
Mr. E. J. HERAPATH remarked that the object to ac-
complish was the closing of the capital accounts of estab-
liehed railway companies. The principal reason why the
railways of the kingdom did not pay remunerative divi-
dends was that the capital expenditure had been so enor-
mous. The railways of France had been alluded co by
their hon. chairman, in contrast with those of England.
it was quite true that French railways were valuable un-
dertakings to the proprietors, and the circumstance might
be traced to the same cause—a low capital expenditure in
comparison with the heavy outlayon English railways. He
might mention that in Belgium the dividends of the State
railways were last year as high as 6i per cent., being nearly
double that on railways in the United Kingdom, yet the
traffic on the Belgian railways was thinner than on Eng-
lish lines. The reason the Belgian railways were enabled
to pay a fair rate of dividend was the comparatively light
cost at which they were constructed. It was so in every
other country where railways were fairly, and even highly
remunerative to the proprietors, instead of being unretnu-
nerative as in Eugland. In this country they had paid, in
Parliamentary and law expenses, about 23,000,0001. in ob-
taining acts of Parliament for railway companies. Mr. It.
Stephenson had stated the amount at 14,000,0 01. but he
(Mr. Herapeth) believed the full amount would show
25,000,000/. as the expenditure. He hoped they would be
able to form such au association of railway shareholders as
would control the proceedings of railway companies in fu-
ture. It was well known that established railway com-
panies were still progressing in capital expenditure, and
the causes of it, to the detriment of the present and future
dividends. The beneficial effect of controlling the future
capital expenditure would be felt firstly in the increase
of dividends, and secondly by giving public confidence to
railways as investments. A powerful association of rail-
way shareholders would cure those gigantic evils, which
but for such interference might go on accumulating
for years, and in time utterly swamp the dividends of rail-
way shareholders. The absolui,e and complete closing of
capital accounts of old lines would vastly increase public
confidence in railway undertakings. There was au impres-
sion iu the miudlpf many country gentlemen that railway,
dividends came out of capital, on the ground that the cur-
rent capital expenditure of railway companies generally
amounted to as much as the sum paid in dividend. The
public would never believe in the honesty of railway ac-
counts until the capital accounts were closed. With regard
to the raising of passenger fame, it could not be dine with-
out damage to the railway interests. The rates for goods
might in some cases be raised with advantage. The means
of reducing the working expenses were chiefly to be found
in reducing the number of trains, by taking off those that
were unremunerative. If a train had only five or six pas-
sengers it could not pay, although they might charge the
highest fares allowed, as the cost was about 2s. per train
mile ; but if they had 101 third-class passengers, each at
ld. per mile, it would yield Bs. 4d. per mile, which would
be very remunerative. When it was considered that the
traffic on railways in the United Kiugdoin amounted iu
1855 to above 21,200,000/., and that in the course of six or
seven years there was every probability of the traffic for the
year amounting to 30,2 00,0001., it was clear that a great
dual was to be expected in the shape of increased dividend
from good management and an energetic and determined
conies on the part of the shareholders to close the capital
accounts.
Mr. BULLER adverted to the successful results of au as-
sociation formed by Sir W. Molesworth, Mr. Hume, and
others for reforming the management of the colonies, and
they succeeded in convincing those who opposed them that
the colonies should be allowed to govern themselves. The
question was whether the shareholders would take the
trouble to govern their own affairs ; and with regard to
paying the directors for their services, he thought they
were the worst-managed lines where they paid the most,
each as 2,0001, a year to Mr. Waddington, of the Eastern
Counties, and 2,0J0/. a year to Mr. Macgregor, of the
South-Eastern.
Mr. GOETZ said he thought, with respect to railway
matters, they would do well to copy from their neigh-
bours. The great evil to railway property in England are se
from bad legislation. The free-trade policy recouamended
by the late sir R. Peel had nearly ruined railway property.
There was no occasion for 3 railroads from London to
Manchester and other places. In France competing lines
were not allowed, and fixed charges were made on every
line for the conveyance of passengers and goods, so that
there cord ibe no competition. The chairmen of railway
companies were perfectly independent of the shareholders,
and-- what was worse—they wore irresponsible for their
ants and meeagernent. The directors of companies in other
countries were trustees and made accouutable for their
management. Great power was given to the managers of
English railways; there was nu punishment for the falsifi-
cation of accounts. If a general manager were to put down
a false or fictitious sum of 10,020% with a view to deceive
the shareholders, the Government of other countries would
have him put in prison for his misconduct. There was no
check in England on railway managers, and, unless a dif-
ferent policy were adopted, railways would never be re-
munerative to the original shareholders.
After a few observations from the CHAIRMAN the reso-
lution was put, and unanimously adopted.
On the motion of Mr. WRIGHT, seconded by Mr. F.
TUCKETT, it was resolved " That the government of the as-
sociation should be by a president and council, consisting of
12 or more members, and their services to be gratuitous."
Dr. COWAN recommended the promoters to obtain lists of
the shareholders of railway companies, and send circulars
to them on the subject. He could furnish lists of the share-
holders of throe railway companies to which he belonged,
and he had no doubt that shareholders in other companies
could do likewise. He would, if poesihle, send a circular to
every shareholder in the kingdom. A great deal of mis-
chief had been done by unwise legislation, which had cost
the companies at least 20,000,000'. out of a capital of
300,000,0001. Every ono was convinced that there must
be an entire change in the legislation and management of
railway property.
On the motion of Mr. GRIDLEY, seconded by Mr. Hon-
SON, it was agreed that subscriptions should be paid into
the London and Weettninster Bank, and be drawn out as
required, by the signature of two of the committee.
Mr. HonsoN knew a case in which a railway company
Was charged $Ol. per ton for certain stores which he showed
could be purchased of other persons for 331. per ton. That
was a specimen of how companies were overcharged.
In the course of a eleort conversation it was stated that
railway shareholders were under great obligations to the
press generally for the able and straightforward manner in
which they had defended their rights and made known in
juries inflicted upon them.

A committee ;vt:s then appointed, consisting of Mr.
Leech, Mr. Hoare, Dr. Cowan, Mr. T. 'Poug, Mr. Buller,
Mr. J. J. Leon, Mr. Hobson, and Mr. Mitchell, to carry
out the ebjacts of the meeting ; and the latter was ad-
journed to the 31st inst., for the purpose of enrolling mem-
bers and for genera! business of the association.
A vote of thanks to the chairman concluded the pro-
ceedings.

LONDON BRIGHTON, AND SOUTH COAST.
The directors of this company have just issued their report.
It states that the amount of capital raised to the 31st of
December last is 7,722,7151., Consisting of 1,869,433/. mort-
gage debt, 1,237,6461. preference capital, and 4,015,631/.
consolidated stock. The total capital outlay during the
half-year bas been 17,0311., of which 8,0J9/. has been
expended for enlargement of the London terminus and the
completion of the Crystal Palace station, and the remain-
der for the several works necessary to insure the safety and
convenience of the public. Considering that there only re-
mains a balance of 23,222/. of unexpended capital, the
directors have endeavoured to curtail as much as possible
the charges to the debt of capital, and aeJordingly some
items for additions and improvements to the line and sta-
tions, which strictly belong to capital, are now charged to
revenue. The gross revenue for the half-year has hews
403,606/., showing an increase of 12,1611. over the eorre-
spondiug half-year of 1851, which was 31,72'1. more than
that of the corresponding half-ycarof 1853. Of that excess
8,3881. arises in the coaching, and the remainder in the
goods traffic. The Crystal Palace traffic has produced during
1855 the sum of 43,1531. The directors consider the remit
of the traffic on the East Grinstead line as opposed to the
opinion of the prejudicial effect of branch lines upon the
parent railway, and as proving the propriety and desira-
bility of affording reasonable encouragement to landowners
and others who may desire to obtain railway accommoda-
tion without calling upon the company to incur any outlay
of capita!, or to undertake undue engagements in the ,hape
of rent. The sum of 14,7731. has beau paid under the award
in respect to the Croydon accident, and the amount has
been placed to the debit of the revenue account for the past
half-year. The revenue account for the half-year shows
that 396,9801. had been received and 182,1591. expended, as
against 364,319/, received and 177,3361. expended at the
corresponding period of 1854. A tabular statement in the
report shows that the gross receipts on the line forthe year
1848 amounted to 453,4081, ant for 1853t0 719,022/. The
number of passengers conveyed in 1848 was 2,485,779, and
the receipts 349,9771., and in 18)5, 6,348,938 passengers,
the receipts being 495,720/. The numbes of miles run by the
trains in 1818 was 1,119,308; and ia 1855. 2,092.517. The
total expenditure in 1848 amounted to 187,087/., and in
1855 to 338,85 e/., including 14,774/. for the Croydon acci-
dent. At the same time 12,360/. was liken out of the re-
serve fund for renewals. The increase in the receipts on
the line during the past seven years appears to have been
249,109/., and in the expenditure 151,772/, ; showing a not
increase of 97,327/. With the exception of 4,6901,, the re-
serve fund has now been expended in renewing. improv-
ing, and fish-jointing the permanent way, and. the result
has been a considerable diminution of the current outlay
and cost of labour for maintenance. The directors p-opose
to continue from time to time to relay the line with fished
joints. The net amount to the credit of revenue for the
half-year is 137,574/„ out of which the directors recom-
mend a dividend of 2/. 18s. per cent, for the half-year,
amounting to 133,8231., leaving a balance of 3,721/., and
making the total dividend fur the year 1855 amount to 5
per cent. The total expenditure on capital account
amounts to 7,776,7784

MANCHESTER, SHEFFIELD, AND LINCOLN.
The workirg expenses and other outgoings of this com-
pany's railways (excln.i*e of tho Manchester, South
Junction, and Altringharn), have amounted in the
first fortnight of the half-year to 8,8131. Os. GI, being
at the rate of 51.28 per cent, on the railway traffic for that
period. The proportion of the South Junction; die., re-
ceipts accruing to this company for the same fortnight have
amounted t 0736/. 2s. 2d the expenses being 3711. 16s. 5d.,
or at the rate of 50,50 pertcent.