The Sun.
London, England, 1851-08-26 00:00:00

EASTERN UNION.

The executive committee appointed by the board of
directors to manage the affairs of the company have
Issued their first report, to be laid before the share-
holders at the half-yearly meeting on Friday next.
The report states that the London office is no longer
necessary, and will be closed at the end of the present
month. Within the last two or three weeks, fortu-
nately for all parties connected with the undertaking,
a movement commenced amongst an influential section
of the preference shareholders. A meeting of such as
were registered was held in London, and a committee
of them has been appointed to communicate with the
directors, to consider terms of arrangement. The
movement on the part of the preference shareholders
has afforded an opening to negotiate with the simple
contract creditors of the company. Meanwhile, it
' would tend much to the advantage of all the interests
at stake, and to a speedier, if not more certain, settle-
ment of difficulties, if all the debenture shareholders
would temporarily unite in foregoing their claim to
the liquidation of bonds overdue, or may be in course
of becoming, so their interests continuing to be
punctually paid. Thus (if confirmed), through an
arrangement which the welfare of every party con-
nected with the railway imperatively called for,
and by scrupulous and wise economy, dormant
sources of traffic may be gradually developed,
increase,
and receipts of the line must progressively
and the unguaranteed shareholder may at last hope
to reap some return from the profits of a concern
to which be has so largely contributed. The Har-
wich agreement has been sealed by the Eastern
Counties board, and it now only requires the stud=
o f the shareholders and the amicable co-operation of a
joint committee of the boards of the two companies
for the line to be forthwith commenced. The terms
are, that the Eastern Counties Company guarantee
four per cent. on the cost, with half the surplus profits
arising from the traffic between Harwich and
London, and between Harwich and all sta-
tions on the Eastern Counties line, which terms will
enable the directors to complete the line on its own
security. The Trowse branch, connecting the line
with the Eastern Counties system at Norwich, is now
ready for work. As regards the items classed under
the head of general expenses, &c., the committee hope
to reduce them one-third. In conclusion, the com-
mittee state that taking the income of the line for the
year ending June, 1852, to be the same as that real-
ized for the year ending June, 1851, viz., at about
111,0001., 58 per cent. (or 64,3801.) will suffice for
working expenses, including a reasonable provisicn
against depreciation. This would leave as surplus net
income 46,62 e/. If this be a fair estimate, it will al-
most necessarily follow that under more vigorous
management, more rigid economy, relief from pecu-
niary pressure, and the opening of fresh sources of
traffic, the net surplus revenue after June, 1852, can
never well be less than 52,000/. per annum. Beyond
this the committee at the present time do not venture
to offer a surmise. The capital account shows that
2,121,0431. had been received, and 2,118,1721. ex-
pended, leaving a balance of 2,8701. The revenue ac-
count for the half-year states that 51,6971. had been
received, and 33,8441. expended, leaving a balance of
17,8521.