The Sun.
London, England, 1856-03-20 00:00:00

RAILWAY INTELLIGENCE.

CHESTER AND HOLYHEAD.
The half-yearly meeting of the proprietors of this com-
pany was held yesterday at the Euston-terminus, Easton-
squere. Sir Samuel Morton Peto presided.
. The report of the directors, which had been circulated
emotes the shareholders, was read as follows :
The accounts for the past half-year, submitted herewith,
show an ageregate increase of receipts, as compared with
the corresponding period of 1851, to the extent of 8,1771.
125.; of which 2,0631. lls. 7d. is derived from passenger
traffic, and 5,5001. from carriage of merchandise. In the
working expenses, on the other hand, there is a decrease,
as compared with the above period, of 3,493/. 13s. 7d.
(Here follows a comparative statement of the receipts
and expenditure of each half-year from Dec., 1850, to Dec.,
18 i 5, showing an increase in the gross receipts of the rail-
way from 77,031/. to 130,3331., and in the net from 39,3011.
to 65,5831., the percentege of expenses having varied dur-
ing the mine period between 4) and 57 per cent., the pre-
' sent rate being 49.67 per cent. A similar account of the
steam-b e.t traffic shows an increase in the receipts from
6,0771. to 23,9711., the balance in favour of this branch of
traffic being 2,8811. for the past half-year, against 1,0071.
in he corresponding period of last year.)
The number of passengers conveyed in excess of the
corresponding period of 1854 is 1,355, and the ton-
nage o7' gaols is increased by 11,422 tons. In the am ount
entered under the head of merchandise traffic
are included the receipts for carriage of live
stock, which exhibit a satisfactory increase. There is an
increase in the Irish live stock traffic conveyed during the
past half-year as compared with the corresponding periods
of the years 1553 and 1851 from 21,030 to 73,981 ; and in
the receipts from this source from 4,747/. to 10,3971. The
projectors of the Vale of Clwyd Railway, a line proposed
to be made from Rhvl to St. Asaph and Denbigh, seek in
their application to Parliament to obtain running powers
over the Chester and Holyhead line; the directors having
endeavoured, but without success, to arrange with the
projectors, have been compelled to lodge a petition against
the bill. In compliance with the resolution passed by the
proprietors at the last meeting, your directors have, in
conjunction with the shareholders committee, met the
directors of the London and North-Western Company for
the purpose of making the necessary arrangements for car-
rying out the working agreement approved at the meeting
referred to. The attention of the board and of the com-
mittee has been occupied with the details which have, up
to the present time, delayed the completion of the arrange-
ment ; but there is every reason to expect that the agree-
ment will be sealed in the coarse of a few days. The•
subjoin.l report of the engineer is satisfactory as regards
the state of the permanent way and works. During the
past half-year that portion cf the lino between Chester
and Saltney Junction has been relaid, and a new bridge is
in course of erection over the Forydd River. The railway
having been opened fur traffic since the year 1848, it be-
comes necessary to make provision for the outlay which
will annually be required to renew the perratnent way.
It will be seen from the accounts that, daring the past
half-year, tho sum of 3,3761. Os. 3d. has been expended
under that head. Daring the current half-year a farther
' outlay will be required for renewal of the steam-boats,
for which purpose a fund has been crested, and of which a
large portion is still unexpended. The net earnings of the
undertaking (luring the past six months yield, after fullypro-
viding for debenture interest and other first charges, an avail
able balance of 33,0801. 16s. 10d. In consequence, however,
of the non-completion of the issue of the second preference
stock, and the large amount of the company's capital thereby
rendered unavailable for the purpose ofli guide ting the claims
to meet which the shares were created, the directors have
been compelled temporarily to apply the revenue resources
to this purpose. Under these circumstances, the directors
recommend the following disposition of the revenue ba-
lance, but on the understanding that payment of the divi-
dends be deferred until it can be made without prejudice
to the general interests of the proprietors :—" That 1,0001.
be added to the fund for renewal of steam-boats. That,
from the remaining sum of 32,0801. 16s. 101, a dividend
bo declared of 12a. per share on the first preference shales
of the company, comprising all arrears up to the 31st Dec.,
and amounting to 25,200!. That en the second portion of
the second preference shares a dividend be declared at the
rate of 5 per cent. per annum, amounting to 6,6331. 10s.,
leaving a balance of 2471. 6s. to he carried forward to the
current half-year."
The CHAIRMAN, in moving that the report and ac-
counts be adopted, said—l had hoped that the arrange-
ment under the agreement with the London and Nori.h.
Western Company might have been considered as vir-
tsaily settled, but I am sorry tr say we have not yet
been able Ito affix the seals of the two companies to it,
though we have every reason to believe that before the
board separates this afternoon the agreement will he
signed on the part both of this company and of the Lon•
don and North-Western. I think it due to the com-
mittee appointed by you to cooperate with the directors
in negotiating the agreement to say that we have re-
ceived from thew, during the last six months, the most
valuable aid. I need scarcely remark, that in an agree-
ment of this important character—(although we have
been met in the most friendly spirit by the London and
North-Western board)—there were many points of de-
tail necessarily demanding our attention, which gave
rise to discussion, and in arranging which considerable
time was occupied. In al! those matters the board has
received very valuable assistance from this committee,
and I have great pleasure on my own part, and on
the pact of my colleagues, in acknowledging the high
sense we entertained of their services. I shall have also
to ask you to continue that committee in office during
the next sir months, and for this reason—in carrying
such an agreement into effect— (supposing we should,
as
I expect we shall, close it with the London and North
Western Western this day)—it is obvious that many questions of
detail must necessarily arise, in dealing with which it
will be a very great advantage to the independent
members of your board to have the advice
and as-
sistance of those who have already rendered us such
effective aid. (Cheers.) In calling attention to the
present position of the company, I find that the accounts
exhibit an increase from passengers of 2,0631. as com-
pared with the corresponding period of 1854 ; the total
receipts, however, (10 not equal the corresponding period
of 1853, which you will remember was the year of the
Irish Exhibition. With respect to the goods traffics a
very marked improvement has taken place. As to the
cargo boats, I will call attention to the fact that the
first c Ist of the boats, with the exception of the Hi-
bernia, has been under 10,0001. ; while the receipts
which Lave arisen from them for the past half-year
have amounted to 15,196/. for the sea passage alone,
and through their instrumentality an increase of traffic
has been brought upon the railway of 14.3171. (Rear.)
In merchandise and minerals I am sorry I cannot report
the same increase as to the slate traffic which I have
been able to do in former years. The tightness of the
money market has materially checked building opera-
times during the pant year throughout the whole country,
which of course has resulted in a diminished demand for
slates ; but I trust that the return of peace will, by remov-
ing the existing monetary pressure, speedily bring us
hack to a more satisfactory state of things in this respect.
In the item of locomotive charges, I may mention that he
hire of waggons, which has been found to be so onerous

hitherto, will, we hope, cease with the Conclusion of the
agreement. The most important feature I have to refer to
lis the fact poieted out in the report, that, although th
hoard have thought it rig-tt to declare a dividend, they
have felt it their duty (a duty arising out of necessity,
owing to the charges pressing upon the company) t
postpone its payment. The board of course would b
happy to declare the dividend, which has been fairl
earned, payable within the next, few days, according
the usual practice ; but when I tell you that if we did s
we should jeopardise your position altogether, while the
open claims against the company, and for which the se-
cond preference shares were created, remain unsatisfied,
you will agree with me ~.r think, that we have exercised
a wise dicretion. 'lie prepared a statement of
assets and liabilities, and I am glad to say that, although
we are obliged to use the funds belonging to revenue to
meet present parposes, we have ample assets to cover all
demands upon us. The surplus land in Britannia-park,
and the estate of Gorphwysfa, in Wales, though of con-
siderable value, are not ready money wherewith we cau
ilischarooa open obligations. We have paid all charges
except 39,131/.135. 2d., and the loan of the London and
North Western, for which they hold 200,0001. of second
preference stock as seci_trity.; and in settling with them
they agree to take ode stores to the amount of 5, 7311.,
which will leave 33,;701: as' the to`.al liabilities of the
c'unpany. I have thcingliiii right to be thus explicit in
order to shew that the4tSt-niling liabilities are small in
amount, and that in t • be position we feel bound to
do, that of paying curds . 'Wore eiedivide our profits,
1
the debenture holders an the world at large may feet
satisfied that there is nothing in the circuiasta ces of the
company that can jeopardise its credit, or raise a question
as to its-solvency. I will now direct your attention to
what would have been our position if we bad been work-
ing under the North Western agreement during the pat
year, instead of working the traffic ourselves. The total
traffic receipts have been 230,8701. 12s. 7d. ; the rent's
1,2471. 4s. 11d. The London and North Western Com-
pany are to work the traffic at 46 per cent.: that would
have been 106,2001. 10s. 2d., which would leave
125,0701. Take from this the rent of the Bangor and
Carnarvon Railway and the interest on debentures,
49,8301., there would have been an available balance of
69,2391. 64. 2d., which would have paid 16s, 6d. on the
first preferences, the entire of the second -lfer-- asap
posibe them all to have been' tent-
-60, and have left a balance

what we have put aqide for t

nent way, so tha,t, even should
they have been during the lasi
went, we shall under this agree
pay all debenture and pref•rei
available balance beyond of 8,1
therefore, you will feel with me

a svise course in recommending
time the receipt of the dividend

venue I may state that we have from time to time, as
you may have noticed every half year, put aside a suns
Of 2,2501. for insurance of boats. We have now in our
hands 13,8111. ]6s. 21 on that account, and we have
besides a renewal fund for the steam-boats of 7,315/. 19a.
To this the directors propose this year to add another
1,0001., making 8,3151. I have been anxious to call
your attention to the fact that there is in hand a suns
to meet insurance and depreciation of boats of upwards
of 20,0001., but I should add that this year we propose
to avail ourselves of that fund to some extent, for the
purpose of providing new boilers to some of our boats,
and to effect general repairs. This will take about
8,3001. In conclusior, the hon. gentleman expressed
his readiness to answer any question that might be put
with the view to the elucidation of Viet/report and ac-
counts.

A PROPRIETOR thought it extraordinary that the
agreement had not been actually concluded before the
meeting, ,uppnsing the feeling on the part of the Lon-
don and North-Western Company was as friendly as re-
ported. He w'shed to know wben the agreement would
date from, and when the dividend would be paid ?
The CHAIRMAN said there had been no laxity on the
part of the board in pressing the agreement to a conclu-
sion, but many points of detail arose which delayed it.
It had been arranged to sign it that morning, but the
London and North-Western wi'sbed two &eases to be
added, which, with some modifications, had been agreed
to, no that there was no doubt the signature of both
companies would be affixed that afternoon. The Lon-
don and North-Western would commence working the
line on the 30th June next. When the board would pay
the dividend would depend upon the arrangements
whi.dt might be made with the parties to whom the
33,0001. was due. Some of the creditors had been in-
duced to take a portion of their debts in second prefer-
ence stock, and as money became easier in the market
this stock might be placed out in this and in other ways
advantageous to the company.
Mr. BRODERICK, a second class preference holder,
handed in a formal notice, objecting to the postpone-
ment of the dividend, and holding the directors legally
liable.

In reply to a question from a SHAREHOLDER,
The CHAIRMAN stated that although the accounts
showed a balance of expenditure over the total amount
of capital, taking the second preferences at par, and the
surplus lands at the lovve3t value, there would be a
balsrce in favour of capital.
Mr. HENMAN contended that the board had spent
more money than they were authorised to do by the act
of Parliament, and they had done so illegally. If they
had the money for the repayment of the divi lend, why
not pay it ? If not, why not say so honestly ? The
accounts were perfectly delusive, and unworthy of the
credit of anybody of shareholders.
The CHAIRMAN replied that the accounts were strictly
correct, and to prove that they were so be offered to any
shareholder to go and examine the books. The London
and North-Western held 255,0001. odd of the second
preference stock aa security for an advance of 200,0001.
Mr. HENMAN moved an amendrof nt declaring that, a
the accounts showed the expenditure of the company to
be in excess of the amount authorised by the acts of
Parliament—the accounts could not be legally passed by
the meeting.

There being no seconder, the amendment fell to the
ground, and the report and accounts were confirmed with
one .diesentient.

Another resolution, declaring the dividend on the pre•
ference shares, and postponing the payment, was then
put and carried.

The committee of shareholders for arranging the agree•
ment with the London and North-Western Company
was re-appointed, and the retiring directors having been
re-elected, and Mr. Hands, a member of the committee,
appointed auditor, the proceedings terminated with the
usual vote of thanks to the chairman.

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