The Sun.
London, England, 1856-07-05 00:00:00

GRAND TRUNK PAILWAY OF CANADA.

(From the Times' City A rt:ele)
The following letter from a shareholder of the -
Grand Trunk Railway of Canada gives a concise
but, perhaps, a too unqualified history of the gene-
ral course of that undertaking, and of the position
in which the subscribers may conceive themselves
to be placed if the measure of relief,-as
which has been entertained in the Canadian Legis-
lature should be sanctioned and accepted by the.: -N
London Board of Directors. At the same time it .

is necessary to mention that there is little expects-
lion of this course being adopted. The Londoir
Board, it is believed, have not yet had the new 1
arrangement formally proposed to them, but when
ever it is brought under consideration the decision
will doubtless be regulated with a strict view to

the interests of their constituents, although they 3
would, of course, be glad to promote any unobjec-
tionable suggestion that might be calculated to ope-
rate beneficially for the contractors. The magni-
tude of the line, which was projected to extend a
_ _ _

.•
distance of 1,112 miles, and to involve an outlay
of 9,500,0001., causes great importance to be
tached to every question in relation to it :
" Sir,—The letter from Mr. Napier, in your city
article of to•day's paper, reminds me that I am one of
that helpless class, a railway shareholder. Under whit

circumstances. as a prudent man, I became one the fol-

lowing is my justification. In 1853 the prospectui of
the ' Grand Trunk Railway of Canada' was brought
under my notice. Warned by the pa.tt, lof course
looked chiefly as to who were the people under whose
author:ty it was to be cradled and brought up, and what
their proposals. Behold the following as directors in
London :

" Thomas Baring, Esq., M.P., G. C. Glyn, Esq.,
M.P., bgents of the province and directors on behalf of
the Canada Government ; Alderman W. Thompson,
M.P., Robert M'Calmont, Esq., Henry W, Blake,
Esq., K. D. Hodgson, Esq., and 12 directors in Canada,

six -of whom held the chief Government offices, With Jai.

W. Chapman, of Leadenhall•street, as secretary.
"The prospectus showed that the railway would be.
1,112 miles, in which was included a lease of the Atlar
tic and St. Lawrence Railway, of 148 miles, at a rental
f 60,0001. per annum, and the capital required was
9,500,000/. sterling, in which was included the construe-
._

tion of the Victoria•bridge over the St. Lawrence, under
the superintendence of Robert Stephenson, Esq., M.P.,
as engineer.
`• In me said capital of 9,500,000/. was a fusion of
two railways, on which had been laid out 1,416,000/.,
which was to be reckoned as capital ; and there was re-
served for allotment in Canada 837.600/. ; total,
2,253,6001. The remaining capital of 7,246,0001. was
created as follows :—One-half in shares, one-fourth in
debentures of company, and one-fourth in bonds of the

Canada Government, as a first mortgage on the railway.
Of this 7,246,0001., one-half was to be allotted to the.

English public, and the other half was agreed to be taken
at par by the contractor:, Messrs. Peto, Brassey, Betts,
and Jackson, in part payment of their contracts.
" Interest at 6 per cent. was to be paid in London
until the entire w arks were completed ; and a summary
of probable revenue was detailed, shows g a net profit of
111 per cent. on the share capital.
" In this prospectus the attend m of the English pub-
lic is prominently drawn by the promoters to the large
amount of Canadian capital invested ; also great stress
was laid on the certainly very important fact that the
eminent English firm of Messrs. Pew, Brassey, Betts,
and Co. had undertaken six-sevenths of the whole of the

new works ; the directors thereby being enabled actu-
ally to define thecost of the railway by the contracts
made, so that•there could be no apprehension of the
capital being insufficient ; and, further, the public are
again assured that the directors, by their contracts, have
-ecured the delivery of the whole of the railway fully
equipped and complete in every respect.
"It was also stated that the receipts from the
miles opened in 1853, from Montreal and Quebc4 to ;
Portland, would at once realise sufficient to pay the rental
of 60,0001. per annum; and also pay all the interest ors
the debentures and bonds.
" Well, Sir, on considering the above, knowing the

°regress that the growing colony of Canada was mak-
ing, and knowing also that in the names of the London
directors, I had a combination of strict integrity, high
emsour, and excellent judgment, I thought I could not
he far wrong iu embarking my modicum of money in
his investment.
"I confess I did not rely on the 111 per cent. paraded
—but I thought I was sate for the 6 per cent., and also
considered it was not a bad scheme for Canada, whets
the rate of interest ranged at 10 per cent.
"The whole of the English capital was allotted, and
the shares came out at a premium.
" For the next two years, 1854.5, sundry reports
and annual meetings took place, in all which the
calls are reported as well paid and the works prosecuted
by the contractors with energy and vigour, the Hon.
George Pemberton congratulating the shareholders on
their financial position and the progress of their magni•
ficent railway. True it is that a modest intimation is
given of a loss of 298,0001. by a want of judgment as to
the Portland section ; and, what was worse, the share-
holders were infermed that the 837,600/. oicapital re-
served for parties in Canada was in no part taken by the
ungrateful people. However, to remedy this, the direc-
tors bad obtained an additional issue from the Canada
Government of 900,000/. bonds, thus by so much reduc-
ing the share capital and creating in an inverse ratio a
prefer-nce charge. To this—not expecting perfection
in a railway direction, but, no doubt, relying on some
degree of judgment in the London directors—the share-
holders appear to have silently submitted.
"Thus matters stood at the beginning of this year,
the shareholders not having a hint even of any financial
embarra-sment of the company, when your columns dis-
closed the first act of the drama by giving a report of a
meeting of a portion of the shareholders to take steps to
remedy the finances of the company, and the Hon. W.
Napier was deputed to Canada. Who these sharehold-
ers were, what amount of shares they represented, and
in what shape the company's finances were wrong, have
never appeared. Your columns of to-day have disclosed
the concluding act of this tragedy. Amid a state of
affairs in Canada which to my mind conveys a very
painful impression of the low state of public feeling
,and
political morality in that colony Mr. Napier has
thought proper to negotiate a proposal which, let it •
be disguised as it may, is neither more nor less than the
complete destruction of the 3,000,0001. of share capital;
and for what is shrouded in a mystery. The board of
directors in London amid all this are as silent as the
grave ; for two years there was no paucity of circulars,
for the last twelve months not a word as to all this.
Can Mr. Baring or Messrs. Glyn and M`Calmont be
aware of what is doing or of the responsibility attaching
t 6 them ? If the difficul.ty be with the contractors, why .
are we not told the truth ? And if so, and they find it
inconvenient to fulfil their engagements, is that any
reason that my property should be confiscated to
save them from loss g I may use strong languagrs
but here stands the naked proposition. I em-
barked in a share capital of 5,144,0001., and i::Afer-
ence debenture capital of 4.356,0001. ; total, 9,500,0001.
By the proposed scheme of confiscation the share capital
is reduced to 3,006.0001., and the preference capital in-
creased to 7,256,0001. ; total, 10,262.0001. And of the
2,000,000/. of new bonds created 700,0001. is to be ap-
plied to railways which no man has had the effrontery
to say will pay even their working expenses.' If the
case be RO desperate that either the contraotors or the
shareholders must be destroyed, why the shareholders
We have performed all our engagements ; but so help-
less are the shareholders by the transactions occurring
in Canada tbat I now appeal for your aid (ever given to
the innocent sufferer) to rouse the London directors to
the discharge of the duties they owe to the shareholders,
who have reposed with so much confidence in their
names.—l am, sir, " A SHARBIKOLDSR.
" London, July 1."

GRAND FATE AND GALA DAY AT

NEWTON-ABBOtT.

A grand fete and gala day came off y esterday, the 4:11
July inst., on the grounds of the South Devon Cricket .1
Club and Highweek Archery Society, in aid of the
Teignmouth, Dawlish, and Newton Infirmary. Owing !
to the fineness of the day many hundreds of persona were
on the grounds shortly after the gates were thrown
open, a great portion of. whom were supplied with tea,
at 6d per head, many benevolent persons of the town
having supplied tea-tables gratuitously. Fruit, cakes,
and flowers were also sold on the ground, which had been
contributed by the neighbouring gentry, the proceeds of
which were handed over to the above institution. The
South Devon Railway Locomotive Bra.ss Band, under
the direction of Mr. Workman, was in Attendance, and
gave their services gratuitously. Dancing on the green 1
sward was kept up with great spirit until dark, and each
returned to their homes highly pleased with the day's ,
amusement.

The protest of the Duke of Motapensier against the
decree of the grant of 600,000 f. to the heirs of the Prin-
cesses of Orleans has been received in Paris.

The Opinione of Turin, of the 2d inst., announces
that the Russian General Totleben intended shortly to
visit Italy and tbe Sardinian capital.
General Rose has arrived at Vienna cn his way to
England.
Opinione of Turin, in noticing a letter from Paris,
stating that rumours were current there of a great re-
volutionary movement being in preparation at Genoa,
anti of violent excitement existing in Piedmont, says :
•' All these rumours are too absurb to deserve refuta-
tion."

The Government of the Two Sicilies has sent a reply
to the note of the Queen of England recommending the
King to rue with more humanity.
The ohle!s of the Fusionist party• are greatly dissatis-
fied at the letter of the Count of Paris to M. Roger (du
Nord).
The Austrian commis.aries sent from Milan to Massa
in order to judge some 70 political prisoners, have up to
this time sentenced 11 of them to 20 years' bard labour.
Among them is a Piedmontese subject, from Serici,
named Giovanni Calzolari, who will probably be claimed
by his Government.
The Independance Beige of the 3d says :—" Mr. Smith
O'Brien, with his son, has passed through Brussels cn
his way to his native land, from which he has now been
exiled eight years. Several of his friends accompanied
him to Antwerp, where he embarked this morning on
board the Baron Osy for London."
. .

Telegraphic advices from Riga yesterday mention Vat
the convention confirming the concession of the Riga
and Dusablirg Railway has been signed by the Riga
Exchange Committee, and approved by the Superior
Contraittte and the Civil Governor. The contract is,
therefore, formally completed.