The Sun.
London, England, 1851-09-19 00:00:00

EVENING,

COWES, ISLE OF WIGHT.

(FROM OUR OWN CORRE:=PONDENT.)

ROYAL YACHT SQUADRON INTELLIGENCE.

SE PTEMBE

RAILWAY INTELLIGENCE.
SOUTH-EASTERN.
The half-yearly meeting of this company was held
yesterday, at the Bridge-house Hotel, London-
bridge ; Mr. J. Macgregor in the chair.
Mr. G. S. HERBERT, the secretary, read the adver-
tisement convening the meeting, after which the re-
port and accounts (abstracts of which appeared in The
Sun of Monday) were taken as read.
The CHAIRMAN then said—Gentlemen, the report
for the last half-year, now submitted to you by the
directors, and the accounts for the same period, which
are verified by the auditors., present a less amount
available for dividend on this occasion than we had
all anticipated would be the case. The total increase
of traffic during the helf-year, as compared with the
corresponding half of the preceding year, was 52,7951.,
but almost the whole of this accrued in the latter
three months of the half-year. This increase assimi-
lates the traffic of last half-year, the least productive
half of the year, to that of the preceding half-year,
the most productive one, within about 3,0001.—
(Hear, hear.) The report informs you, Gentlemen,
that 23,0001. only of that increase is from through or
Continental traffic. Of the balance, you will be grati-
fied to observe that about 9,0001. was earned on the
North Kent line, on which, in spite of the amazing
competition which it has to encounter, the traffic is
steadily augmenting ; and about 3,600/. was earned
upon the Reading, Guildford, and Reigate line.
A slight decrease has taken place on the Greenwich
line, which is attributable to the abstraction of a por-
tion of the traffic by the North Kent line. The in-
crease in the goods traffic of about 8,0001. on the half-
year, is satisfactory, and more than commensurate
with the increase of the expense in that department.
The locomotive expenses vary only in about the pro-
portion of the increased mileage run by the trains
from the expenses of the last and the preceding half-
year, being in each case about 101. per mile. A large
amount of rolling stock has been provided from the
reserved fund laid aside in previous half-years, and
the reports of the locomotive and carriage superinten-
dents, regarding the renewals in their several depart-
ments, have warranted the directors in charging the
renewals of stock worn out previously to the last half-
year to the debit of the fund laid aside in previous
half-years for that purpose. In the account of main-
tenance of way there is an increase last half-year of
1,800/. in the charge for the repair of permanent
works, of 1,5001. for the repair of stations and build-
ings, and of 2,5001. in the maintenance of permanent
way, itself occasioned by an increased mileage falling
into the hands of the company from the contractors,
and also by the extra expense in reballasting and re-
pairing where the iron sleepers are laid in, on the main
line and branches. The cost of the.iron sleepers has been
charged to the renewal fund. With all new roads the
expense of packing and maintaining is greater at the
outset. The directors trust the durability of the iron ,
sleepers will more than compensate for the immediate
expense now occasioned. There are 18 miles of single
line of iron sleepers are laid on the main line and
branched in the company's hands, and 57 miles of
single line on the new branches. the maintenance of
which is still in the hands of contractors. It is re-
ported to the directors that the maintenance of the iron
road in the new lines in the hands of the contractors
is economical, irrespective of that economy which it
is relied on will result from the enduring nature of
the material compared with wood. The traffic on
these branches is, however, light. On the main line,
where the traffic is heavy, the same economical result,
in present maintenance, has not yet been arrived at.
The accounts of miscellaneous expenses for the last
half-year were subject to an increased charge of 600/.
for wages to police and signalmen, 4001. lighting
stations, 800/. in the goods department, 3,000/. com-
pensation, 2,000/. in the general charges of the esta-
blishment (1,400/. of which was incurred in adverti-
sing and bill sticking), and 1,4001. in Parliamentary
opposition to the proposed lines of railway hostile to
this company, which were thrown out by Parliament.
—(Hear, hear.) I ought to state that in the account
of law charges a sum of 1,100/. is included, which is
the estimate of the expenditure during the half-year
in resisting the attempts still made in all directions to
impose excessive rates on the company. In the profit and
loss account there is an increased charge of 11,0001. for
interest on mortgage debt and dividend on the gua-
ranteed stock of the company, which was paid persuant
to the resolution of the proprietors within 14 days
of the close of the half-year. You are aware,
gentlemen, that the whole capital of the company,
whether productive or unproductive, as entitled to
share in dividend. More than half a million of capital
has been expended on the Tunbridge Wells and Hast-
ings line, no part of which was productive during last
half-year.—(Hear, hear.) It is a subject of gratula-
tion that all differences with the Brighton Company
regarding the London and Hastings and St. Leonard's
traffic are amicably and satisfactorily concluded ; and
while the public may rely on an amount of accome
modation which few parts of the country possess, the
companies will not act in opposition to each other.—
(Cheers.) Gentlemen, lam not disheartened by the
small receipts that have yet been had on the Ashford
and Hastings line, or on the Reading, Guildford, and
Reigate line. From the commencement of the present
month, you are assured of a fair proportion of the
Hastings traffic; and on the opening of the line
throughout in November, of an equal division.—
(Cheers.) The whole excess of through traffic to the
continent, which the last halt-year presents, compared
with the corresponding of last year, is not more than
that traffic which has been abstracted from you in one
single month by rival routes, which, earning little or
nothing themselves by their competition, have re-
tarded your prosperity without advancing their own.
—(Hear, hear.) We do not consider the increase of
continental traffic which we secured last half-year
as a benefit solely attributable to the attraction of
the Great Exhibition. On the contrary, we rejoice
that so great a confluence of passengers from the
continent has been brought to this country, even by
rival and inferior routes. The interest—the magni-
ficence of this metropolis has become better known ;
and with this knowledge of the comparative advantage
and superiority of the South-Eastern Railway as the
direct continental route—(Cheers)—travelling from
the continent to this country is not likely to diminish
but to increase. The belief which was once enter-
tained on the continent generally that it was neces-
sary to spend a large sum to visit London, is now
dispelled. Even from the borders of the Mediterra-
nean—from Marseilles, in the Indian overland route
—the traveller may reach London in 49 hours, at the
expense, for a first-class ticket, of only 61.—(Hear,
hear.) In performing our special service to Paris by
the eleven hours' route, I am gratified to say that we
have not failed in a single instance.---(Cheers.) That
11 hours has been expanded to 13, 14, and even to 15
hours, hut by causes over which we bad no control.
Our steamboat service, as well as that of our trains,
has been performed with undeviating punctuality,but
the delays at the Custom-house, arising not from any
want of zeal or efficiency in the officers of the depart-
ment, but from want of accommodation in regard to
space, and from the necessity which an examination
of baggage at Folkestone and Dover, instead of at
the termination of the journey in London, entails on
the passengers of twice or thrice claiming their lug-
gage, has been a constant source of annoyance and
loss of time.—(Hear, hear.) This will now be reme-
died at Dover by the use of a new and large examination
room adjoining the terminus, which is just completed,
more effectually by the system of bring the baggage at
once through to London in bulk, and examining it
here, to make which experiment permission has been
granted by the Treasury—(Cheers.) Gentlemen, we
compare this half-year against the corresponding half
of last year, which was begun with 40,0001. of net
money, applicable to dividend in hand ; we compare
it with the preceding half-year, which we began with
4000/. of net money in hand, and we have, without
either of these sums this half-year, to meet an in-
creased charge of interest for capital yet unproduc-
tive, but which I can announce will, after November,
upon the complete opening of the Hastings line, be
the means of hereafter adding to your net revenue.
'Taking all surrounding circumstances into consider-
ation, I think, notwithstanding that on this occasion
the dividend is less than we had hoped, I may pro-
nounce the position of the company to be sound and
hopeful. And, looking at the receipts which have
accrued since the commencement-of the present half-
, year, which show an increase in six weeks of 25,0001.,
and a receipt in that time of 135,000/. this year,
against 110,000/. last year, I expect, when I have the
honour to appear before you at the next meeting, that
I may be enabled to add, and that you will sanction
me in adding, that it is satisfactory also.—(Cheers.)
I have the honour to move that the report of the di-
rectors, and statement of accounts, as now laid before
the meeting, be received and adopted.
Mr. RaesHAw, the deputy chairman, seconded the
motion.
Mr. NASH begged, on behalf of several sharehold-
ers, to hand in a protest against the charge upon the
capital or reserve fund of the new stock as proposed in
the accounts.
The CHAIRMAN said, as Mr. Nash was not a share-
holder, he must decline to receive the protest.
This course was approved of by the meeting, and
Mr. Nash left the room.
The motion for the adoption of the report was then
put and carried unanimously.
The CHAIRMAN said, it was his duty to move that
a dividend, at the rate of 3 per cent. per annum, be
be declared. Ile regretted that it was not in his power
to declare a larger dividend on that occasion. The
fact was, that the traffic on the line during the half-
year was not so large as they had anticipated. A pro-
gressive improvement in the traffic was taking place
every day, and he thought they might confidently
look forward to a better state of things than existed
at present. Ile concluded by moving that a dividend
of Bs. per 301 share be declared payable on the 16th
of October next, which was zecunned.
Mr. LEVY suggested that the income-tax should be
paid out of the balance in hand, earned since the 31st
of July last.

19, 1851

The CHAIRMA.N said, that the balance alluded to
did not belong to the past half-year, but to the cur-
rent halt-year, and was used for the general business
of the company. The balance in hand, after paying
the proposed dividend, would not be sufficient to pay
the income-tax.

Mr. LEVY said he did not wish to be subservient to
the directors, nor to say anything against them which
they did not deserve, but he thought it right to men-
tion that their baring a dividend of but per share
was talked of very much in the city. For his part
he would be very sorry to receive even that amount if
it were not fairly earned. He begged to remind the
proprietors of what he bad stated at the late meeting
with regard to the expected traffic from the Exhibi-
tion. It was to the effect that if they carried passen-
gers at unremunerative fares they would have a large
traffic, but a small dividend. He contended that if
the directors had followed his advice and charged
remunerative fares they would now have been ale
to declare a dividend of from Ps. to 133. per share.
He also begged to remind the proprietors that he had
on former occasions warned them to have nothing to
do with leasing the Reading, Guildford, and Reigate
Rsilway, and appealed to them whether the opinions
he had then expressed were not borne out by the
result. The fact was, that half the money paid as
rent was lost to this company.
Tha CHAIRMAN here said that the loss was more
than half, and that it was a very heavy load on the
South Eastern Company.
Mr. LEVY' said if the shareholders had supported
him in rejecting the measure when it was first pro-
posed, his opinion being founded on forty years' know-
ledge of the district, they would not now have been
obliged to put up with an Bs. dividend. With respect
to the statement in the report, to the effect that the
Great Western Company were under a pledge to
Parliament to lay down narrow gauge lines between
Oxford and Basingstoke, which would connect
Reading with the narrow guage lines, he thought it
smelt very much like powder. He hoped it was not
intended to have a contest respecting the broad or
narrow gauges, or to try whether Mr. Macgregor had
more pluck than Mr. Russell. lie did not think they
could get much from the Great Western at Reading,
if they persevered in the competition, he thought their
lawyer was likely to have a good job there, and that
he would gain more by it than the company. If they
got into a contest with the Great Western for the
traffic, they would have to work it at a loss. Another
matter which affected their dividend was the contest
with the Brighton Company for the Hastings traffic.
He had urged upon the directors of both companies
during the past four or five years to come to an
amicable settlement with regard to that traffic, but
his advice had been thrown away, for it was not
until a few weeks ago they had come to an under-
standing on the subject. Now, were it not for the
continuance of this contest, they would have been
enabled to declare a 103. dividend. He had stated on
a former occasion that Mr. Laing, the chairman of
the Brighton, and Mr. Macgregor, the chairman of
the South-Eastern Companies, were both very clever
men, but it sometimes happened that this was a great
misfortune for railway shareholders to have men to
manage their affairs who were too clever. He hoped
that Mr. Macgregor would endeavour to get back The
good name he had at the time when he was elected
chairman of the company. He would tell him what
had brought him into great favour with the proprie-
tors—it was the announcement that he would adopt
remunerative fares, and not carry people on the line
for nothing. He (Mr. Levy) objected to the plan
adopted fur the conveyance to Paris and back of the
Lord Mayor and the parties connected with the Exhi-
bition at reduced fares, on the ground that there was
no chance of their using the line again for that pur-
pose. llis (Mr. Levy's) maxim was to get a compen-
sation price for the traffic conveyed over the line, and
to let those who chose to carry people for nothing do
so on other lines.

Mr. G. SMITH said he considered that the expendi-
ture during the half-year had been lavish. He felt
disappointed at having an Bs. dividend when they were
told by the chairman at the last half-yearly meeting,
in March, that he believed that the 10s. dividend then
declared would be the lowest the company would ever
receive. The gross receipts for that half-year were
347,3901., the expenses 167,5381., the available balance
179,8521., and the surplus fund stood at 54,0001. He
considered the present report exceedingly unsatisfac-
tory. He did not think there was any necessity
during the past half• year for spending 65,4811. in the
purchase of 20 new engines and 40 new carriages.
He had no wish to damage the property of the com-
pany, but he thought the strictest economy should be
exercised in every department. He was anxious that
a resolution he had to move should be entered on the
minutes of the company. It was to the effect that the
meeting express their disappointment at the dividend
being only Bs. per share.
Mr. GREY said, he did not think there was any
necessity for the motion, as the chairman had stated
that he was disappointed in the result of their opera-
tions during the past half-year. If Mr. Smith had
taken into account the increase mileage worked by
the engines, and the increased in the debenture debt
sanctioned at the last meeting, he would not have felt
himself justified in calling their expenses lavish. In
February last the debenture debt was about 1,600,0001 ,
but on the Ist of July last it amounted to 2,000,000/
There was an addition to the capital of nearly half a
million of money. lie considered the operations, on
the whole, rather satisfactory than otherwise. He had
no doubt the chairman could explain everything con-
nected with the expenditure. In his opinion their
chairman and directors were able and efficient men
and he did not think it was treating them fairly to
move such a resolution as that just proposed.
Mr. CROOK, of the Stot ketxchange, said that be
had been a proprietor during the last six months, and
that he bad been induced to become a proprietor in
the company in consequence of the speech made by
the chairman at the last meeting, in which he stated
that there would never be a less dividend than
the last, namely, 105. per share. On the shares he
(Mr. Crook) had purchased there would be a loss at
present prices of 1,400/. As a matter of business
he did not expect that they would have a higher
dividend than ,6s. per share. (Mr. Levy, inter-
rupting him, said—" Ido though.") He then
complained of the erroneous judgment the chair-
man bad formed as to the future dividends'
and stated that when the South-Eastern shares were
between 271. and 281. each in the market a certain
house in Liverpool with which the chairman bad
been formerly connected, had sold a large number of
them, and that some of the shares had been trans-
ferred into his (Mr. Cook's) name. He concluded
by hoping that, as the chairman had failed in his pre•
diction at the last meeting, he would be more fortu-
nate by the next meeting, and that his (the chairman's)
anticipations would be realised.
A PROPRIETOR said, he thought the reason the
expenses of the company were so high was in con-
sequence of the extreme litigation in which they
had been involved.—(Hear, hear.) Taking a
general view of their affairs, he considered that they
had never a more prosperous period than during the
past month.
Mr. LEVY—I don't think that.

The CHAIRMAN, in reply to a question, stated that
the company had to borrow 873,0001. during the
half-year, and to pay off 470,000/. If they had
merely to pay off the borrowed money, and to renew
the debentures, they might have done so at four per
cent., but it was a different matter to borrow an ad-
ditional sum of 400,0001. Some of the 873,000/.
had been borrowed at 4} per cent., some at 41- per
cent., and latterly they had borrowed money at 4
per cent.
A PROPRIETOR wished to know, how it was that
there was so large an amount as 143,0001. of unpaid
calls?

Mr. CROOK wished to know, why the transfer-
books of the company were closed five weeks before
issuing the report ? lie also had one question more to
put before the chairman commenced his general reply,
❑amely, why a delay of five weeks had occurred in
issuing the report of the directors, which circumstance
had given rise to great speculation with regard to the
dividend.

The CHAIRMAN then replied. He said the directors
had issued their report on the very day on which they
had the satisfaction of receiving the report of the
auditors.—(Hear, hear.) He would not occupy the
time of the proprietors with any personal defence of
himself. He had now appeared before them for seven
years, and he had the satisfaction—which the public
reports alluded to by the hon. proprietor (Mr. Crook)
could neither give nor take away—ho had the satis-
faction of knowing that he had never made a state-
ment which he did not believe to be founded on fact
and just expectation; and if he had been sanguine, he
had deceived no one more than he had deceived him-
self. If the hon. proprietor had realised his shares at a
loss, that was entirely his affair ; but if he (Mr. Mac-
gregor) had been at his elbow, as a friend be should
have auvised him not to dispose of them at such a
sacrifice. There was a tide in the affairs of every
company, which no man could control ; and he be-
lieved that the South- Eastern Company had seen its
worst. Since he had had his salary assigned him
for his services, be could say that he bad devoted
whatever talents he was blessed with, and the
moat unremitting industry, to promote the best
interests of the company; but he never under-
stood that, over and above all, it was expected
that be should act in the capacity of a pro-
phet.—(A laugh.) _fie repeated that the anticipa-
tions he bad expressed had been honestly entertained,
and were based on the most careful examination that
he could give to surrounding circumstances at the
time. He regretted that the Honourable Proprietor's
investment at present appeared to be clouded by a
possible loss; but he looked forward to the time when
be would be able to realize it without any loss ut
all
The observations which Mr. Smith had made in per-.
feet good humour Isere founded in error. lie had
made a comparison of the present -dividend with a
half-year when they hwl only bAlf the capital on which