The Sun.
London, England, 1851-09-01 00:00:00

[eh was-ptrised
authorietag us
rest Not them
this coux,pany
affix thel vom-
ailed terms of
directors,' we
__ Sorthernr:Rail-
way Company, to which the common seal of the reepeo-
tire companies was affixed on the 16th of May, and on
the 10th ult. the Great Northern commenced working
the traffic over the East Anglian lines in pursue ace of
that agreement, the heads of which will be read to the
meeting after this report. The Eastern Counties Com-
panY having by every means in their power obsttucted
the through communication at Wisbeach, the pe esent
receipts can fo•m no criterion of the extent of traffic
that may be expected to result from the arrangi went
with the Great Northern. We have every real on to
expect that when the obstruction at Wisbeach is re-
moved, a new and extensive intercourse will take
place . between the East Anglian district anti the
northern and midland counties, as well as towards the
south; especially as the great estuary scheme, which is
now making rapid progress, will render Lynn One of
the best ports on the eastern coast, and enable it
to command en extensive trade with the Baltic and the
ports on the North Sea. The opening of the ' Towns'
Line' of the Great Northern, which is to take place next
spring, will afford a new and important vent for our
traffic. As the East Anglian has Parliamentary power
to run over the Eastern Counties line from Wisbeach to
St. Ives, we have no doubt that that company will be
compelled to remove the obstruction which they have in-
terposed., and which has caused great inconvenience to
the public. Previous to carrying into effect the agree-
ment with the Great Northern, it was absolutely neces-
sary that the receiver should be removed; this could not
be effected without the content of each of the numerous
creditors who had been made parties in the Chancery
suit, which had been instituted by the committee of cre-
ditors, and as those parties refused to give their consent
without security for the payment of their costs, it be-
came necessary to deposit the sums in the following
statement, to abide the taxation of costs, and 5001. to
cover the expenses of the committee; also 5001. to!cover
the actual outlay of the receiver, W. Seppings, Esq.,
.;, _ ~,,,,,„_,e....e.teliet
to whom all who are interested in this company are '
much indebted for the manner in which he per-
formed the responsible duties of his office, and for
having relinquished his claim for commission. The
new Act, which received the royal assent on the 24th 1
July, authorises us to carry into effect the measure
which was referred to in the last report, for the reduc-
tion of interest on the new 7 per cent. Preference shares,
and a large proportion of the issued shares have been
surrendered for the purpose of being converted into 5 per
cent. shares, on the condition that the creditors agree
to the premed arrangement. The House of Lords hay-
ing rejected the clause which required a large portion
of the b and to consist of the holeers of the new shares,
red which was made a proviso in the agreement proposed
-) '-e committee of creditors, that agreement becomes
void. --- ie therefore necessary to apply to the creditors
for their assee. inessee, deed, which is now in course of
being signed. We trust,,. t both bond and simple con-
tract creditors will see the gresa A vantage that will ac-
crue to them from placing the affairs-,e the company on
such a basis as will put an end to that ruinous wese of
money in law which has, during the last twelve month-,
absorbed on amount equal to half a year's interest on all
the liabilities of the company. It will be satisfactory to
all parties interested in the undertaking to be informed
that notwithstanding all the difficulties with which we
have had to contend during the last two years, the liabili-
ties of the company have not been increased, further than
the amount spent in law, which now swells the amount
of overdue interest; the total ameeent of bond and
simple contract debts being under 308,000 e, to which is
to be added arrears of interest, about 22,0004 It is
quite evident that if the creditors had unanimously
agreed to the proposals made by the board there would
not now have been more than half-a-year's interest in
arrear. As we have considered it desirable that the
present accounts should, as tar as possible, embrace all
the el« bts due by the company, and the accounts of the
company's solicitors were received too late to admit of
their being examined by the board, we have instructed
the accountant to enter these accounts provisionally.
We have the satisfaction to inform you that the line
which connects the East Anglian with the Great
Northern at Huntingdon has been completed, at an out-
lay of less than one-third of the estimated cost of that
line as originally planned, and that the present junc-
tion is much more convenient and satisfactory to the
public. The coal traffic suffered
,greatly from the ex-
treme mildness of last winter, and from the ' turn-outs'
amongst the sailors and porters at Lynn, which lasted
for several weeks; and the general traffic continues
to be unfavourably affected by the depression which
prevails in those districts which are mainly agri-
cultural. The prospect of an abundant harvest gives us
reason to expect a large increase in the traffic receipts,
as soon as the through communication at Wisbeach has
been re-established. From a statement of the receipts
and expenditure to the 9th July, 1851, it appeared that
the receipts were 1,332,5211. Is. Id., of which sum there
was a balance in hand of 5851. 14s. sd. The receipts
arising from the Seven per Cent. Preferential Stock,
created by reselutions of the 28th February, 1849, were
23,7351. lls. 5c1., which sum was 204/. 9s. sd. more than
the expenditure on this account. The statement of re-
venue account from the Ist January to the 9th July,
1851, showed receipts of 17,5661. 15s. 103e1., and de-
ducting the disbursements, there was a balance of 5,3861.
17s. lid."
The CHAIRMAN said the directors had to apologise
for the lateness of the date when the report was issued.
That was owing to a delay in receiving the auditors'
report end the accounts, which did not reach the
board till after Wednesday lest. He now proceeded
to make a few remarks on the auditors' report. The
directors, in their report, stated that the soli-
citors' bills had been entered provisionally, as they
had not had time to enter into the items. He sug-
gested, with respect to these accounts, that the au-
ditors should make some arrangements with the so •
licitora, or that some other course should be adopted ;
but he did not think they should have brought the
subject under the discussion of the meeting, which
could not enter into such minute items as lawyers'
bills were composed of. With regard to the remarks
of the sudLors on the agreement between their com-
pany and the Great Northern, he did not say that
the directors considered they best fulfilled their duty
to the company by submitting that agreement to some
of the most eminent men at the bar, and having ob-
tained their sanction and approval as to its being per-
fectly valid, affixing to it the common seal of the
board. With regard to the expressions of the auditors
respecting the claims of the company against the
Eastern Counties, he did not know whence they ob-
tained their information. Certainly it was not from
the board or himself. Though the claims might be
settled amicably, it was their duty to inform the
shareholders that no progress had yet been made towards
that settlement. Having made these remarks, he would
proceed to state a few matters relating to the corn-
peny. lie hoped that an arrangement so beneficial
to the company as the conver-ion of the debts into
preference stock, and the conversion of the shares al-
ready issued at 7 per cent. into 5 per cent. stock,
would be agreed to, and he had every reason to be-
lieve that such would be the case. At present he was
not able to state more on that subject, as a delay had
occurred in obtaining signatures, but every effort
would be made to effect that purpose. With an ex-
pense of over 11,0001. for law costs, it would be
ruinous to proceed. The working expenses had been
for the lest half-year at the rate of 6/. 12a. Bd. per
mile per week. It had been stated iu some news-
papers that the expense amounted to 121. per mile per
week, and the receipts were 91. per mile per week,
showing a loss of 31. per mile per week. Now where
did the payments come from if such was the case ?
Nothing was clearer than that the working expenee
of the company was as stated in the directors' report,
at the same time that the plant, &c., were in ex-
cellent order. Having referred to the accounts to
show that the average consumption of coke was very
small, he proceeded :—So much for those whowere
endeavouring to upset the arrangements
r which,
to
if carried out, as they hadevery
hope they would be, would actually reli reason
relieve that com-
pany from debt. The et
prefer-
ence stock at 5 per cent., bonds and debts were
hole amount of the
converted into shares, woiufldthBeb4e9,33o,ooo/. Now, if
he should like to
they had sold out stock inh
Ivalue of their preference
know what would be
shares or their originalisthaeres. At the present time
In
the total amount of their liabilities was 330,0001,
when they were first made
the beginning the
Their
lcompanylines
wWeraes oinnlya
acquainted with their affaire,
state almost reality hopeless.
and their funds were all
miles of expended. At
half finished,
the present timedtbey had_ 68
cellentit only remained for an improve-
menthe agricultural districts for the company to
. order,
t an
in
derive a fair and remunerative profit. He was happy
to say that in the present year the harvest in Norfolk
was
in A better condition than it had been. He
would now allude to another topic. During the
period of four years neither he nor the other directors
had received any remuneration. Now that was
neither in accordance with their dignity or the dignity
of the company ; and he thought, before separating,
that they should take the subject into considera-
tion. Their staff was at present reduced to the
secretary, the 'remainder having been transferred
to the Great Northern Company. Such being the
case, he trusted that the shareholders would excuse
any delay that might take place of a secretarial chit-
racte-r. Ile concluded by moving the adoption of the
paper.

-1:\p• E. SPLP seconded the motion.
araNshonie:AlßMAN, in reply to some questions, said he
thought it was better not to interfere with lawyers in
up a legal document. With regard to there
being any litigation respecting the agreement, he be-
lieved there was no document that was not open to
litigation. He believed, however, that the agreement
would be found to be in conformity with the spirit of
the Act of Parliament for railway litigation. That
agreement did not preclude the company from giving
accommodation to other companies as well as the
Great Northern, to pass over their line. All it said
wa9, that they should afford the same accommodation
on the same terms. The liberty of using their station
was another story.
The heads of the agreement having been recd,
The Cuanuasx sgid it ma specially looked to in