The Sun.
London, England, 1856-09-15 00:00:00

THE GRAND TRUNK RAIL WAY

COMPANY OF CANADA.

Subjoined is the statement of the London directors to
be submitted to the meeting of the sharehotlers of the
company, which is to be held at the London Tavern on
Wednesday next :
"The London board of directors of the Grand Trunk
Railway Company avails itself of the presence in this
country of the lion. John Ross, president, the Hen. Sir
Allan Ill`Nab, Bars., and Mr. Holmes, vice-president,
for the purpose of laying before the proprietors a report
upon the present state of the company's affa..rs, and its
future prospects. Since the date of the last report the
whole of the capital represented by the ' A Shares' and
bonds of the company has been called up. Its total
amount at the present date is 3,582,4001. Of this sum
3,488,6001. have been received. The directors are de-
sirous of acknowledging the promptitude with which the
calls have been met, and consider the amount of arrears
comparatively small, especially when the pressure which
has existed on this description of property is taken into
account. Instructions have been sent to Canada to
forfeit the 2,322 shares upon which the third call re-
mains unpaid ; and the necessary resolution for this
purpose will he submitted to the meeting of the share-
holders to be held in Canada in November next. The
certificates in favour of the English and Canadian
contractors for railway works amount to 5,283,1731.,
and for the Victoria-bridge to 354,5301. The sec-
tion of the railway from Quebec to St. Thomas-40
miles—was opened on the 3d December last, and that
from Montreal to Brockville (125 miles) was completed
on the 19th November. The directors are informed that
the communication between Brockville and Toronto —a
distance of 210 miles—will be ready for opening at the
beginning of next month, which is a much earlier period
than originally fixed, thereby more than carrying out the
pledgee given on this head to the people of Canada, and
reflecting great credit on the energy of the English con-
tractors under very untoward circumstances. The length
from Toronto west to Guelph, 63 miles, was opened on
the let of July last, and the receipts have, within six
weeks of the commencement of traffic operations, given
a return of 201. per mile per week, in local business only,
and a period of the year when agricultural operations
limit the traffic of the country. The completion of the
length from Guelph to Stratford, 29 miles, will take place
at the same time as the opening between Brockville and
Toronto. The total length of Grand Trunk Railway that
will then be in operation will be 853 miles. Any further
lines to fulfil the views of the Legislature of Canada, and
to develope the traffic of the country, remain for future
consideration, but in the event of any being determined
upon the directors think the contract for such works
should, when practicable, be submitted to open competi-
tion. The only work under the existing contracts then
unfinished will be the Victoria-bridge. Upon this sub-
ject the directors take the present opportunity of stating
that since the last meeting of the shareholders they have
cawed in Mr. R. Stephenson, Mr. Brunel, Mr. E. Clarke,
and Mr A Moss ,‘c, report to them as to the possi-
bility of effecting a saving in the cost of constructing
this great work, and especially in reference to certain
suggestions and remarks made by Mr. Liddell, C.E.,
contained in a letter to Mr. M`Calmont, who, the direc-
tors regret, has resigned his seat at the board. Thesrf
reports have satisfied the directors that, haring due re-
gard to the solidity and permanence of this structure no
material reduction in the outlay can be effected. At the
sametime certain modifications have been recommended,
by which some saving may be obtained in the masonry
and the approaches. At the present time the condition
of the works is such that the two abutments, and nine
piers out of the total number of 24, will be finished to
tube level by the close of the summer..
"It will no doubt be recollected that in the early part
of the present year a meeting of the shareholders of the
company took place, which was presided over by Mr. T.
M. Weguelin. The committee that was appointed on
that occasion thought it advisable to send the Hon. Win.
Napier to Canada as their representative, with the view
of obtainicg assistance and relief from the Canadian Go-
vernment. The provincial legislature passed an act, of
which a copy is annexed, and the committee has fa-
voured the board with several suggestions, which are also
subjoined. The directors concur with the committee that
the act of the provincial parliament affords a prospect of
rAief to the company, not only by postponing the first
charge of the Government, but also as giving to it a di-
rect interest in the prosperity of an undertaking which
it originated. Although the act may not offer all the
benefits desired, yet the directors must accept it as strong
evidence of the wishes of the Government and Legisla
ture of Canada to promote the interests of the railway ;
and recommended its adoption by the shareholders, leav-
ing the directors to urge such modifications upon the
Government as may facilitate ahem in carrying out its
provisions, and which circumstances, and measures ne-
cessary for the development of the traffic, may requite.
The act has rendered necessary some modifications in
the contract for the construction of the Victoria-bridge.
These have been embodied in a supplemental agreement
with the English contractors, the terms of which have
been settled between the company and the contractors
by Mr. Weguelin ; the outlines of this agreement will
be found at Apendix C, and is submitted to the share-
holders for approval. By this arrangement, which the
directors, submit with confidence to the shareholders, as
a fair and equitable compromise between the contractors
and the company, the money liability for the bridge is
at once reduced to the extent of a quarter of a million,
and remains subject to still further reduction in the event
of any further modification of design. The forcing on the
market of B shares, and the consequent depression of the
stock, are prevented ; and the active prosecution and
early completion of the bridge, by which alone, as the di-
rectors believe, the through traffic from the far west to
the seaboard can be obtained, is effectually promoted and
secured. The directors also think it right to state that ,
Messrs. Pete, Brassey, Bette, and Jackson have declared
their willingness—let, Either to give up the contract to
any other parties willing to undertake it, upon receiving
reasonable compensation ; 2d, to go on with it, subject
to a reduction of 250,0001. in its amount, in considera•
tion of the change in the mode of payment, which will
follow the adoption of the act of the Canadian Legisla-
ture of the last session ; and to submit to such reduc
tion of the amount of the contract by alterations in the
construction of the bridge as may be determined by refer-
ence provided under the contract. The second alterna-
tive is the one which, in the opinion of the directors, is
most conducive to the interests of the shareholders, and
has been adopted in the supplemental agreement already .
referred to.

" The revenue accounts for the year ending the 30th
June last, which are appended to this report,
do not present satisfactory results, but they
.are of the same character with those which have at-
terded the partial opening of undertakings, even
the most successful, when completed. Under these
circumstances, the cost of working has been very large,
and has caused much disquietude to the directors. Two
propositions have been submitted to them connected
with the future working and management ; the first,
for a quasi leasing of the undertaking upon conditions
which are not deemed desirable ; the second is a cit.n.
tract tendered by responsible parties for the working of
the main line upon conditions which insure the econo-
mical management under active local persons, and by a
fixed divi-ion of the receipts, securing the interest to
the bondholders, and the future position of the share-
holders. It would ho premature to enter further into

the conditions of this proposal, but the directors hope
to be empowered, for the interest of all, to enter ain it,
subject to the approval •of a general meeting of the
shareholders. The whole of the A capital has been ex-
pended, as well as most of the other available means of
the company, and a considerable portion of these funds
having been diverted to the necessary, but unexpected
repairs of the Atlantic and St. Lawrence Railroad, the
directors find themselves under liabilities for the contracts
now on the point of completion, for rolling stock and
other contingencies. These circumstances compel thorn
to recommend the shareholders to sanction an increase
of the capital of the company by a sum • not exceeding
510,0001. This amount they suggest should be raised
by the crea'ion of debentures bearing interest at thereto
of id per cent. per annum. This sum the directors be-
lieve will he amply sufficient to open the railway in a
very efficient state for carrying on a large amount of
traffic, and to provide for the c nnpany's liabilities,
together with the payment of the interest on the shares
and company's debentures due in January next. The
additional outlay on the Atlantic and St. Lawrence Rail-
way has involved an increased rental of 13,0001. per an-
num, for which the sanction of the shareholderA is re•
quested. The directors are happy to state that the same
friendly relations which existed between this company and
the Great Western Railway of Canada at the publication
of the last report, still continue, and it will be the anxious
effort and desire of the board to promote, at all times,
a cordial understanding between the two companies.
"The serious attention of the London beard has been
drawn to the exiting constitution_ of the direction, di•
vided as it now is into two sections, sitting in Canada
and in London. The functions of the latter body are
very limited, and while they appear to impose responsi-
bility, do not aff,rd any power of effectual control. It
may be absolutely
necessary that the English share-
holders should be more effectually represented at the
Canada Bard, and that the representative should be in•
vested with power to act for their interests there. Th 6
airectore are informed that it is the intention of the
Canadian Government to propose to Parliament an
alteration iu the constitution of the board by withdraw-
ing their directors and substituting a commissioner un•
connected with the executive government. With refer-
ence to the 7th paragraph of the suggestions of the share-
holders' cenitnittee, the directors recommend that the
expenses of the non. Wm. Napier, in his mission to
Canada, be
1, 000/. paid, and that he receive a remuneration of

"In conclusion, the directors, while they regret the
disappointment which must have been caused to the
shareholders by the result of the traffic up to the present
time, feel OA this has been mainly occasioned by the
sectional openings to which they have already adverted ;
but when the whole boo shall have been completed,
aff,rding an unbroken communication from the west to
the Atlantic, they see no reason to doubt that its future
development, fostered by the growing prosperity of
Canada, and the continued support of its Government
and legiela ure, will be such as to give a remunerating
income to the shareholders. Tho enormous traffic which
has been proved to exist on the Western lines in
Canada, and the very sati=factory receipts which t: e
Toronto and Guelph section, only just opened, are
giving to the company, may be considered to justify
the opinions above expressed. The whole district
between Montreal and Toronto, owing to the character
and extent of its population, and the branch lines
extending to the interior, acting as feeders to the Grand
Trunk Railway, places this portion of the line in as f.,•
vourable a position as that of any other railway in Ca.
nada. The directors, should they continue to receive tbe
confidence and support of theshareholders, will not relax j
in their endeavours to insure the satisfactory results.to
which they have alluded by devoting their best attention