The Sun.
London, England, 1851-08-29 00:00:00

Tee, CHAIRMAN observed that the directors could
not prepare their report until after the meeting of the
Eastern Counties Company, and since that meeting
there had not been time to print the document.
The SECRETARY then read the following report:—
•'The usual half-yearly statements of receipts and ex-
penditure, as audited to the 30th of June last, have al-
ready been circulated.
" The accounts published by the Eastern Counties
Company, which have also been circulated among the
shareholders, exhibit a small diminution in the receipts
upon the Norfolk Railway during the last six months,
as compared with the corresponding period of last year.
Your directors are not,aware ho this result has been
arrived at, but they are happy to state that since the
commencement of the present half-year there has been
a steady increase in the traffic. There are other matters
in these accounts affecting this company, of which your
directors feel that they have just reason to complain;
but as it is evident from the observations of the chair-
man at the Eastern Counties meeting that these accounts
are not approved by their directors, who do not appear
to have been consulted in their preparation, and for the
reasons which will be stated immediately, it is thought
desirable to abstain from further observation upon them
in this report; they have, however, directed a letter to
be addressed to the Eastern Counties Company on this
subject.
"In conformity with the resolution passed at the
adjourned half-yearly meeting, the directors lost no
time in putting themselves in communication, through
their chairman, with the Eastern Counties board on the
subject of the subsisting agreement between the two
companies. Various communications, both personal and
written, ensued, in which the inexpediency of bringing
the question of the amalgamation before the Eastern
Counties proprietors at the present time was strongly
urged by the chairman of that company, accompanied
by assurances of the friendly feeling of their board, and
their disposition to do all in their power to develop the
traffic of the district. Your directors, believing that no
practical injury could arise to the interests of the Nor-
folk shareholders by the delay of a few months, resolved
to wait and see the result of the recent changes in the
Eastern Counties direction, and how far the promises
held out to them were likely to be realised. They are
happy in being able to state that a greatly improved and
more cordial feeling has since animated the counsels of
the Eastern Counties Company towards the Norfolk
Company, and they are bound to say that much has
been done by them during the last few months by in-
creased local accommodation towards bringing the re-
sources of the Norfolk line into action, and, although
much remains to be done, the effect upon the traffic has
been most beneficial.
" Under these circumstances, your directors have
considered it their duty to consult several of the largest
shareholders as to the expediency of taking further steps
at the present time under the resolution of the last
meeting, and their opinion has been strongly expressed
in favour of acquiesing in the wish of the Eastern Coun-
board that the existing agreement should remain undis-
turbed for the present. Your directors concur in their
view, under the conviction that time and fair play alone
are wanting to develop the resources of the line, and that
every day's experience will tend to bring its value more
prominently forward, and to dissipate the erroneous im-
pressions that have prevailed respecting it.
"If the meeting should approve of the course thus
suggested it will be understood that the directors are to
be at liberty to act upon the resolution of the 27th of
March last at any time when the interests of the com-
pany may appear to them to require it. They hope,
however, that the necessity for doing so will not arise :
and, so long as the Eastern Counties Company pursue
their present course of friendly and enlightened policy
towards this company, they may depend upon receiving
the cordial co-operation and assistance of the Norfolk
board.
" The subject of the mortgage debt of this company
has engaged the serious attention of your directors, the
unsettled state of the company rendering it impossible
to renew the securities falling due, and they have thus
been placed in a most painful state of embarrassment by
being suddenly called upon to pay up a large portion of
the capital which could not be calculated upon, and
which they have no means of meeting without obtaining
further powers from Parliament. It is proposed, there-
fore at the present meeting, to take a resolution from the
proprietors, authorising an application for au Act in
the next session for creating a new stock, bearing a
guaranteed interest not exceeding 5 per cent. per annum,
to be placed in the same position of priority as the ex-
isting mortgage debt, and to be applied solely for the
liquidation of such debt. When it is considered that the
sum required to pay the interest on this debt does not
amount to one-fifth of the present gross receipts of the
company, the sufficiency of the security which the com-
pany have to offer will be apparent, and your directors
do not doubt that, armed with this power, they will have
no difficulty in meeting all the demands that may be
made upon them. It is intended by the same Bill to
regulate the capital of the company generally, particu-
larly with reference to the rights of the various classes
of preference shares.
" The Act for authorising the Beecles and Halesworth
Railway by an independent company has received the
Royal assent.
" The directors wish to have powers from this meeting
to make such traffic arrangements with this company as
will ensure a speedy completion of a line which is
likely to add materially to the revenue of the Norfolk
Company,"
Mr. PETO said that in addressing them for the first
time as their chairman, he thought it due to them and
himself that he should state the circumstances under
which he had taken that position. Immediately after
their last meeting he receivod an urgent request from
his friend Major Tindall, who was then their chair-
man, which was cordially seconded by every member
of the board, that in the present position of the com-
pany he should become their chairman. He felt that
as a resident in the district through which this rail-
way passed, and as possessing some practical know-
ledge of the working of their line, and of railways
generally, if he could be of service to the company he
would also be doing good service to the public by en-
deavouring to retrieve their property from the position
in which it was then placed. In the first instance, at
the request of his colleagues, he wrote a letter to the
chairman of the Eastern Counties Company, re-
quiring from him an explanation of the policy of
that company, with a view to their conducting their
operations in cordial concurrence with that company,
or that they might at once be placed in the position of
acting independently. A series of correspondence and
personal interviews followed, and be thought it due to
Mr. Waddington, the chairman of the Eastern Counties
Railway, to state that that gentleman met him in the
most frank and business-like manner. Mr. Wadding-
ton expressed an anxious desire that an opportunity
should be allowed for ascertaining more clearly the
position of the district by the proprietors of both
companies. The directors of the Norfolk Railway
considered that proposition, awl having taken into
their counsel several of their largest proprietors, they
determined that the wisest course was to accede to
the proposal of Mr. Waddington. He would point
out to them what had been the result of this better
state of things. He bad a return from the directors
of the Eastern Counties Railway, showing that during
the first six months of the present year there was a
small increase as compared with their receipts for the
corresponding six months of last year of about 1,3001.
Up to August 18 a gross increased receipt was shown
of more than 5 per cent. upon the receipts of last year.
He had also a return of the gross receipts at the prin-
cipal stations of the company for six t
months of he
last and of the present year. He found the total re-
ceipts at the Norwich station for six months of last
year were 26,2001., and for the present year 29,0001.;
showing an increase of about 2,8001. He found at
Yarmouth the receipts for last year were 7,968/. ;
and for this year 9,6791.; while at Lowestoft the
receipts last year were 3,6171.; and this year they
were 5,4151. The last amount, he might observe, did
which
include the receipts for the cattle and goods aich
were brought over by the Northern Steam-packet
Company. He thought these results were so far sa-
tisfactory. He stated to them at their last meeting
his confidence in their position. They bad an income
of about 120,0001., and the simple question was, at
what rate could their traffic be worked ? They had
a large traffic to give to other concerns, for during
the last year he found they had passed over the bar-
rier at Brandon to the Eastern Counties Company
,cross receipts exceeding 101,500/.—(Hear, hear.)
lie need not say that the cost of working railways
was now a matter pretty well defined. He stated,
when he last addressed them, tbat he considered the
expense of working the Eastern Counties line was
unjustifiably great, and that opinion had been ac-
quiesced in by Mr. Waddington, the present chair-
man of 'the Eastern Counties Company. Indeed, the
reduction which had been made during the put half-
yeari
by the Eastern Counties Company clearly
showed the accuracy of his statement. Mr.er
)
Gooch, the locomotive superintendent of the ast
Counties line—than whom he did not know a more
practical, talented, or energetic man in the po-
sition ho occupied—had stated be saw no reason
why, within two years, the working expenses of the
Eastern Counties line should not be reduced to the
same amount as that of other companies. The whole
of the Eastern Counties rolling stock was now in a
, high state of efficiency compared with what it NM