The Sun.
London, England, 1851-03-28 00:00:00

THE SUN,

" Until this time they have bad every reason to be-
lieve that the sentiments of the Eastern Counties Board
upon this subject were the same as their own, but as
one of their body at the late meeting publicly expressed
a contrary opinion without any dissent from his col-
leagues, they are led to conclude that a change has
come over their views respecting the agreement, and it
behoves this company therefore to act accordingly.
" The Norfolk shareholders must not suppose that the
figures stated in the Eastern Counties reports, respect-
ing their line, give a correct idea of the value of their
property—the directors cannot give any information as
to the manner in which those accounts are made up;
but they are satisfied that some great error must exist
when the working expenses on a line like the Norfolk
are charged at the rate of 800/. per mile, exclusive of
taxes, when parties of known ability are ready to under-
take to work it for 6001. a mile, adding 6,000/. to meet
expenses of management and taxation—a saving of up-
wards of 26,000/. is at once shown in the amount charged
against this company.
" It would be a great mistake to imagine that the ac-
tual additional cost to the Eastern Counties Company,
beyond the expenses of working thcir own line, amounts
to anything like that sum—the number of engines, car-
riages, and waggons required to work the Norfolk, in
addition to those necessary for their own traffic is very
small, and if this were truly stated, with the cost of coke
consumed on, and the expense of the stations and main-
tenance of, the Norfolk line, there can be no doubt that
a very different result would be presented.

" The real value of the Norfolk line to the Eastern
Counties Company consists in the amount of through
traffic brought upon their line at Brandon—this was
stated at the time of the agreement for amalgamotion to
be between 90,0001. and 100,0001. a year. It is clear,
therefore, that it is not the interest of that company
to put an end to the amalgamation, and so long
as they are prepared to act honourably up to the
the engagement they had entered into, the Norfolk di-
rectors would have been the last persons to think of
withdrawing from it. They feel, however, after what
has passed, that they should be wanting in their duty to
their proprietors, if they did not at once put an end to
the state of uncertainty which now exists, by calling
upon the Eastern Counties Company specifically to de-
clare whether it is their desire that the amalgamation
should be completed, and if so, to require that it shall at
once be rendered as permanent as their powers will per-
mit until the sanction of Parliament can be obtained to
it; but if it be their wish to treat the agreement as
temporary only, then the same should be determined at
as early a period as can be conveniently arranged be-
tween the companies.
" If the proprietors should concur in the views here
expressed, resolutions will be submitted to them em-
powering the directors to act accordingly.
"A Bill has been introduced into Parliament by the
Eastern Union Company, containing clauses for run-
❑ing powers over the Norfolk line to Lowestoft and
Yarmouth. If this part of the measure should bo pro-
ceeded with, the directors will consider it their duty to
give it their most strenuous opposition.
" Mr. Court, one of the auditors, has delivered in a
special report, which will be read to the meeting; and as
that gentleman desires to withdraw from the office of
auditor, it will be necessary for the proprietors to pro-
ceed to the appointment of one in his stead.
" Two of your directors, namely, Major Tyndale, and
Mr. Duff, retire by rotation, but are re-eligible as direc-
tors, and have signified their intention to serve if re-
elected.

" The directors have received a communication from
Messrs. Quilter and Co., on the subject of the accounts,
which will be laid before the meeting."
The CHAIRMAN, in moving the adoption of the report,
said he had nothing to add to it, as the report went fully
into the affairs of the company; but be wished the
meeting to depart from the ordinary course, and allow
Mr. Peto, before they adopted the report, to disclose to
them the terms upon which it was proposed to amalga-
mate with the Eastern Counties Company.
Major COURT objected to this; they ought to dis-
pose of the report and accounts first.
The CHAIRMAN said it would save time and trouble
if his suggestions were agreed to. It was by far the
most convenient course.

A SHAREHOLDER moved that the discussion on the
subject of the amalgamation scheme be at once pro-
ceeded with, and this motion having been seconded was
put from the Chair and carried.
The CHAIRMAN then called upon Mr. Pet() to state the
views of the directors on the matter.

Mr. PeTO said—lt will be necessary, gentlemen, on
the present occasion to ask your kind indulgence, be-
cause in offering to you the few remarks which I deem it
my duty to make in compliance with the request of the
chairman, I feel I do so while suffering under very
severe indisposition. Therefore I trust you will kindly
excuse any deficiency on my part, for I assure you that
nothing but the extreme anxiety which I feel in eon-
flexion with this company would have induced me to
come here to-day.—(Bear, hear.) In the first place I
will read the resolution which it is my intention to sub-
mit to your consideration. It is as follows:
" Resolved—That this meeting is of opinion that the
Eastern Counties Company should be called upon to
complete the agreement made with this company on the
2d May, 1848, for the amalgamation of the two com-
panies, either by concurring with this company in an ap-
plication to Parliament in the next session, or (if that
should be considered inexpedient) by extending the pre-
sent arrangement for such a period as shall leave no
doubt of its permanent character.
" That in the event of the Eastern Counties Company
declining to adopt the necessary measures for completing
the amalgamation, the directors of this company be, and
they are hereby authorised, to take such steps as they
shall think fit for determining and putting an end to the
agreement at as early a period as shall bo practicable."
Now, gentlemen, I never addressed you on so im-
portant au occasion as the present, because, whether
this resolution be adopted or rejected, a large
amount of influence for good or for evil must
necessarily result to the company—(Hear, hear)—and
in moving the adoption of the resolutiouj am extremely
anxious that not one word should escape me which can
for a moment excite any feeling on your part, or indi-
cate any feeling on that of my own.—(Hear, hear.) We
are considering a great commercial question, and as
such we shall consider it calmly, tnoughtfully, and
without any feeling beyond what must neces-
sarily be brought to bear on the question itself.
The policy of the Eastern Counties Company, as repre-
sented in their new board, I take to be fairly indicated
in the address of Mr. Margrave at the late meeting; and
in referring to his name, it will be distinctly understood,
that I have no feeling with regard to that gentleman ex-
cept that of respect.—(Cheers.) I met him on your part
as arbitrator for the Eastern Counties Company
in deciding on all the accounts open between the
companies, and I feel it due to him to say that I was
met fairly by him on all matters, and nothing occurred
during our intercourse excepting that which was of a
pleasurable nature, and to which I hope he will always
look back with complete satisfaction.—(Hear, hear.)
Having stated to you the regard in which I hold
Mr. Margrave himself, I now proceed to point
out to you the terms of his address on the
occasion to which I have alluded, and which I under-
stand to convey the course of policy to be
hereafter pursued by the new board of the
Eistern Counties Company. Mr. Margrave said,—
" He admitted that ho was a party to the first Nor-
folk agreement, and be would not be a party to its abro-
gation. but having found out that be had made a mis-
take, he would use his experience to save them from
confirming it in perpetuity."
Now, gentlemen, that agreement, if it was an agree-
ment at all, was for the complete amalgamation of the
two companies.—(Hear.) I will refer you to the reso-
lutions contained in the third page of the report, in
which you yourselves sanctioned that agreement:—
That application shall be made to Parliament at the
earliest practicable period for an Act to authorise the
permanent amalgamation of the companies, in which pro-
vision shall be made for giving to the Norfolk share-
holders the same rights and privileges which are enjoyed
by the Eastern Counties shareholders."
Then again it was resolved that—
" The terms of complete amalgamation, as to be
sanctioned by Parliament, shall remain the same as
already agreed to."
Now, the object of these resolutions was to request at
the hands of the Eastern Counties Company, that this
should be carried out in the following session of Parlia-
ment, or, if they preferred the other alternative,
that the agreement should be rendered as perpetual as
the power of the two companies permitted them for a
period of years, rendering, without doubt, your property
identical with theirs. Mr. Margrave has stated, and it
has also been stated by the committee to whom the
Eastern Counties Company referred the question of
amalgamation between the three companies, that their
connexion with us is a source of loss to them, and that
I to the extent of nearly 20,0001. per annum. am pre-
pared to show that it has not been a loss to them, that
your property can be worked by yourselves so as to pay
all the guarantees and interest on preference stock, and
leave you a dividend quite equal to that which you would
receive under the proposed amalgamation of the three
companies. The amount stated in the committee's re-
port with respect to the receipts of your line, they put in
the first instance at 122,8301. per annum, and in the
next place they state the working expenses to
be 76,5201. per annum, or 8201. per mile
per annum. Now, Mr. Stephenson, in giving his
evidence before the original committee of investigation on
the Eastern Counties hue, stated that your line ought
to be worked at an expense of 500/. per mile per annum,
with an addition for taxes and some fixed expenses.
Your directors, in order to be prepared on this point,
have taken care to consult with parties who are prepared
to undertake under contract, with heavy: penalties, to
work your line for 5001. per mile per annum, adding
6,0001. to meet expenses of management and taxes,
which would produce a saling of upwards of 26,0001. a
year upon the amount stated by the Eastern Counties
Company. Now it will be my duty to show you not only
that the contract can be so entered into, but that your
line can be worked by yourselves, if you please so to adopt,
without any contract at all; and I take a detailed state-
ment, prepared with considerable care, of the working
Petth s Per mile run,
0 expenses of other companies in proof of this assertion
.___eY Part- Now I find that, taking their train ex-
Counties, the h.
London with the exception of the Eastern
and
triiphest price of any railway is that of the
that their earterf I should say, at the same time,
get°pne; mile are larger than those of any
there
other corn
at the
about 9s. 61. per mile
character of their trains,
li run;2.
a r 1 y :tad
1 lookingPaaolf '
trains, -itbeing fast and express
you wl- not be surprised to find
on excess as ear as that line is concerned, but on will
find the London and B,rfighton to be 11d. per on
for
Om you as near as I can the
the tieet, talf-year, a,....1 for the second half-year Bd.
which is Sid. The Great Western
r3e.ssu.9ltteepialenscle,
first half-year Is 9id., arid the second 80, the
Allow me to
The Laudon

and South-Western 8&d. for both half-years. The
South-Eastern 9d. for both half-years. The Newcastle
and Berwick 84d. first half, 7d. the second. York and
North Midland first W., and second 7d. Lancashire
and Yorkshire 7+d. for both halves. The Great Northern
74d. first, and 64d. second; but upon the Eastern Coun-
ties the first halt is 171 d., and the second 16+cl. Now,
in confirmation of this I may also state, that having the
honour of presiding over the direction cf the
Chester and Holyhead, Railway Company, which is
in connexion with the London and North-Western,
and is worked by that company, that the price
which they charge is equivalent to a saving of
50 per cent. on the prices charged you by the
Eastern Counties Company. The Chester and Holy-
head Railway is the same length of line as the Norfolk—
viz., about ninety-four miles and a half, and is an exten-
sion of another line, where the coke is equally expensive;
and there is no circcumstance in connexion with their
traffic, as compared with your own, so as to render
your own traffic more expensive than theirs. I
will now refer more particularly to the New-
castle and Berwick, and I do so on this
account namely, that the Newcastle and Ber-
wick is a line the same length as the Eastern
Counties, about 292 miles, and half its traffic mileage
run is goods, and the other half are passenger trains,
while on your line two-thirds is passenger trains, and
the other third goods, and therefore I give the benefit to
the Newcastle and Berwick, as there is a difference in the
price of coke between the two companies I have added
2+cl. per mile. The Newcastle and Berwick line is
peculiarly favoured with reference to the price of coke.
And we have another reason for taking the Newcastle
and Berwick, which is that Mr. Quilter is the accountant
to that company, as well as the accountant to the
Eastern Counties. And, therefore, I am sure when I
mention his name, we have no reason at all to doubt the
accuracy of the figures,' and I think the Eastern Coun-
ties Company cannot but feel that the accountant, ho-
noured with their own confidence, can be for a moment
questioned in point of figures. I find we have run dur-
ing the last year 493,000 train miles, and taking the
difference in the price of coke on the Newcastle and
Berwick line into consideration, there will be a saving
of 14,000/. on the prices charged by the Eastern Coun-
ties Company. I find also that there is a charge on the
Newcastle and Berwick line for miscellaneous ex-
penses, which, during the year on two hundred
and ninety-two miles, Mr. Quilter certifies at
30,0001., while you are charged by the Eastern Counties
for 92 miles 12,5001. Now, if I take the difference in the
miscellaneous expenditure and the train miles run, it
brings the amount charged you for working to the
amount stated by your board, and as I have mentioned
that parties of the highest possible respectability are
prepared to work it for, I think I have shown you that
upon all the various companies whose expenses I have
alluded to, you arc charged is. sd. and ls. 4d. for
that which on another line is worked for 81d.,
and therefore I think unquestionably you will
agree with me that your property is unfairly depreciated
by an excess of expenditure, the accuracy of which I do
not question; but with respect to the property, of which
I wilt say that it I were a member of the board I should
feel I could not retain my seat with justice to myself
as a commercial man, if I could not work as
cheaply on the Eastern Counties as on any
other line. Your board are placing you in a
position of absolute security by showing that you have
the alternative of that contract, and you can work your
line at the price I have stated. Another point in the
address of Mr. Margrave, to which it is my duty to refei,
is this:—Mr. Margrave says the " agreement was bad in
1849, and worse in 1851, for the opening of the Eastern
Union had abstracted fully half of their traffic." lam
most surprised at that statement, for the only point
where the Eastern Union affects your traffic is at Norwich.
They have no connexion with your line at any other
point, and seeing that the same fares are charged by both
companies, I cannot conceive it at all possible to be worth
the while of any passenger to get out of our trains at one
station, and walk a full mile and a half to another, to go
to London at precisely the same charge. 1 have ob-
tained from Norwich a tabular statement, which is very
much at your service, showing the traffic of
every amount for a year before the opening
of the Eastern Union Line, and of a year afterwards,
I have also by me a statement from all the stations on
the line, and I find that the full amount abstracted from
your line is 8,0001. a year. It has always been my opi-
nion that if your line were worked, as I hope it will be,
on a friendly alliance with the Eastern Union and the
Eastern Counties Companies, because I am no advocate
for competition of any kind, that the exchange of traffic
between the Eastern Union and your own line will be
greater in amount than the loss which we sustain by
their abstracting a portion of your through traffic
from Norwich, and when I tell you that at least 80 per
cent. of your traffic is peculiarly local, I think you will
agree with me that there can be no doubt whatever as to
that. Now, supposing, gentlemen, that we were to lose
one-half of the through traffic to London, I will
assume that instead of 122,800/., the receipts
may be reduced to between 110,000/. and
112,0001.; but then your report states that, and your
directors have not been anxious to overstate the thing.
You place on the Eastern Counties line a traffic to the
amount of between 90,000/. and 100,000/. per annum,
and here I may observe that I have ascertained on data
not to be questioned that the through traffic which you
placed on the Eastern Counties last year amounted to
105,000/. Is it likely that, if the Eastern Counties, by
making terms with the Great Northern, or the Midland
and the London and North-Western Companies, to put
on those lines at Peterborough traffics to be sent to-
wards Liverpool or Lancashire, they would hand
over their traffic without any consideration or
without any per-tentage being allowed them in return
out of the amount of profit to be derived from that traffic?
I know Mr. Waddington too well as a man of business,
and as a man perfectly conversant with railways, not to
feel that he would exact from them a fair amount of the
profit from all traffic which he brought on any other line
but his own—(Hear)—and I say your position is simply
this—you are at liberty to go to the Great Northern to-
morrow and say to them, that at Doreham we want to make
an arrangement with you by which you will give us a cer-
tain per-centage on all traffic which we put on your line;
and it is my duty to inform you that the Great Northern
are prepared to enter into that arraugement.—(Cheers.)
Well, I will not say more on that subject. You must feel,
gentlemen, that in this matter the board has your con-
fidence, or you ought to be frank and tell them at once
that they do not possess your confidence—(Hear)—and
lam sure every one of the directors will feel it their
duty immediately to retire without a murmur, and make
way for any other persons whom you may think fit to
appoint ; and I assure you we will give them
every information we possess, and work cordially
and heartily with them for the development
of your traffic, and for the purpose of
placing you in that position in which you ought to bo
commercially placed.—(Cheers.) But at the present
moment I tell you, with all sincerity, that this is a crisis
iu your affairs, and that you are bound to take a bold,
energetic, prudent, and peaceful line of policy—not an-
tagonistic to the Eastern Counties Company or any other
company, but in order to put yourselves in a position to
have a certain amount—and to say that you shall
and must have the worth of your line before you part
with it.--(Cheers.) Now, a word as to the policy of
the Eastern Counties Company up to the present moment.
You may feel that in taking the speech of Mr. Margrave
lan taking that which is not the policy of the heard—
that it may be the speech on which he was returned as
director, but does not indicate the policy which the board
is prepared to carry out; but I will point to
another fact. The Eastern Counties Company entered
into an agreement last week with the Newmarket Com-
pany, Ly which they have agreed to give 2+ per cent. to
the old stock, besides paying the guarantees and
debentures, whereas in their report a year since
they refused to enter into any alliance with the
company at all, alleging that they (the Newmarket
Company) were not even able to pay their working
expenses. I have no objection to this arrangement with
the Newmarket Railway, though I believe it has been
simply made in order to plece us at a disadvantage; but
as commercial men it behoves us now to take care of
our own property.—(Cheers.) And if you ask me why
I object to the Eastern Counties Company continuing
fer the next four and a half years working your
line, my answer is simply this, that I will not
trust myself in the hands of gentlemen who profess to
be unfriendly towards us.—(Cheers.) I need not say
four and a half years' obstruction instead of cultivation
of your traffic would be your ruin—(Cheers)—and we
are not prepared as commercial men to agree to this
extension of time unless it is on the assumption that we
go on equal terms with the Eastern Counties Company.
We will work together as friends or allies, or not
at all—(Loud cheers)—and we are not prepared
to sacrifice our interests for any short-sighted policy ;
and I am perfectly ready to say to them at once, " You
assert that your alliance with us is a source of loss and
ruin to you—now give up that alliance, and
we will pay you your money to-morrow," and
we (addressing the shareholders) are ready
to make that payment without distressing
you by any additional calls.—(Loud cheers.) I felt it
my duty—out of a regard for my own character—be-
fore I said we could take this course of policy, to be
satisfied I could get the money, in order that I might
not put you in a position in which the Eastern
Counties Company might distress you ; and I
made arrangements by which, if they will to-
morrow revalue the stock over to us, and let us take
care of our own property again, I should be prepared to
pay every farthing we owe to them.—(Cheers.) I will
say to them, " Here is your money—you have played
with us long enough—we will no longer
be parties to your vacillating course of con-
duct, but we are sure of the intrinsic value of our
property, and we will take care of it ourselves." Gen-
tlemen, to show you that the board have, during the
last year, done all in their power with reference to the
cultivation of your traffic, we represented to the Eastern
Counties Company that they were making the through
traffic everything, and making the local traffic, from
which we derived 80 per cent. of our income, nothing;
and making all the local traffic dependent on
the through trains, and that by doing so per-
sons from Fakenham to Norwich were never sure
of making the journey without delay, frequently
extending to three-quarters of an hour.—(Hear, hear.)
But they demurred to the making of any altera-
tion, and I told them that we must have some alteration,
and the course of policy which I recommended
them to pursue for the purpose of enhancing
our position with regard to local traffic, was
that they should adopt a different class of engines for
the local traffic, independent of the through traffic.
They hesitated to adopt my advice, and I said "I will
let you have four engines with 12-inch cylinders
by the Ist of May next, and you shall have the
use of them for six months, without one farthing
of charge, so as to give me an opportunity of
taking care of my own property by running local trains,
and accommodating the inhabitants of the district. I
will guarantee that they shall run at a consumption of