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

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hitherto, will, we hope, cease with the conclusion of the
agreement. The most important feature I have to refs rto
is !he fact pointed out in the report, that, although th
hoard have thought it rieht to declare a dividend, they
have felt it their duty (a duty arising out of necessity,
()win to the charges pressing upon the company) t•
postpone its payment. The board of course would be
happy to declare the dividend, which has been fair'y
earned, payable within the next, few days, according 1•
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 one, I think, that we have exercised
a wise discretion. We have prepared a statement of our
assets and liabilities, and I am glad to say that, although
we are obliged to use the funds belonging to revenue to
meet present p irposes, 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 can
diseherge open obligations. We have paid all charges
except 39,1311.135. 2d., and the loan of the London end
North Western, for which they ho'd 200,0001. of second
preference stock as security ; and in settling with them
they agree to take one stores to the amount of 5,731/.,
which will leave 33,3701. as the total liabilities of the
company. I have thought it right to he thus explicit in
order to show that the outstanding liabilities are small in
amount, and that in taking the position we feel hound to
do, that of paying our debts before we divide our profits,
the debenture holders and the world at large may feel
satisfied that there is uotlaing in the circutesta •ces of the
company that can jeopardise its credit, or raise a question
as to its solvency. I will now direct your ettentien'to
what would have been our position if we lad been wbrk-
ing under the North Western agreement during the past
year, instea lof working the traffic ourselves. The total
traffic receipts have been 230,870/. I2s. 7d. ; the rents,
1,247/. 4s. 11d. The London and North Western Com-
pany are to work the traffic at 46 per cent.: that would
have been 106,200/. 10s. 2d., which would leave
125,070/. 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
69,239/. 6s. 2d., which would have paid 16s. 6d. on the
first preferences, the entire of the second nreferencem, sup-
posing them all to have been issued, 26,256/., together
60,9001. and have left a balance of 8,335/. Bs. 2d., besides
what we have put aside for the renewal of the perma.
nent way, so that, even should our receipts continue, as
they have been during the last year, without improve-
ment, we shall under this agreement be in a position to
pay all debenture and preference charges, and have an
available balance beyond of 8,000/. a year. I think,
therefore, you will feel with me that the board have taken
a wise course in recommending you to defer for a short
time the receipt of the dividend. On the subject of re-
venue I may state that we have from time to time, as
you may have noticed every half year, put aside a suns
of 2,250/. for insurance of boats. We have now in our
hands 13,811/. 16s. 2d. on that account, and we have
besides a renewal fund for the steam-boats of 7,315/. 19s.
To this the directors propose this year to add another
1,000/., making 8,315/. I have been anxious to call
your attention to the fact that there is in band a sum
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 repair. This will take about
8,300/. In conclusion, the hon. gentleman expressed
his readiness to answer any question that might be put
with the view to the elucidation of the report and ac-
counts.

A PROPRIETOR thought it extraordinary that the
agreement had not been actually concluded before the
meeting, supposing the feeling on the part of the Lon-
don and North-Western Company was as friendly as re-
ported. He wished to know when the agreement would
date from, and when the dividend would be paid ?
The CHAIRMAN said there bad 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 wished two clauses to be
added, which, with some modifications, had been agreed
to, so 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
which might be made with the parties to whom the
33,000/. was due. Some of the creditors bad been in-
duced to take a portion of their debts in sec,,nd 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,
banded i❑ 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
slaow•ed a balance of expenditure over the total amount
of capital, taking the second preferences at par, and the
surplus lan is at the lowest ♦alue, there wonid be a
balar cm in favour of capital.
Mr. ITENMAN coutend,d that the board bad spent
mere money than they were authorised to do by the act
of Parliament, and they bad done so illegally. If they
had the money for tLe repayment of the dividend, why
not pay it ? If mt. why not say so honestly The
ac2uunts 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 he offered to any
shareholder to go and examine the hooka. The London
and North-WeA-rn held 255,0001. odd of the, seenna
preference stock ag security for an advance of 200,0001.
Mr. ITENMAN moved an amtndintart declaring that, a
the accounts showed the expenditure of the company to
he 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
gr. und, and the report ald accounts were confirmed with
one dissentient.

Another resolution, thclaring the dividend on the pre.
ference phare9, and postponing the payment, was then
put and carried.

The committee of shareholders for arranging the agreft-
mert with the Loudon 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 rroceedin,fs terininat2d with the
usual vote of thanks to the cairttlan.