The Sun.
London, England, 1856-05-17 00:00:00

EA ILWAY INTELLIGENCE.

RAILWAY REFORM:

A meeting of the members of the Reform Association
was held yesterday at the office in the Strand to consider
the provisions of the Eastern Counties Railway Bill, as
passed by the House of Commons, authorising the raising
of additional capital—Mr. Malin* in the chair.
Mr. Browne, the secretary, read the advertisement
convening the meeting.
The CHAIRITAN stated that in addition to the adver-
tisement circulars had been sent to the proprietors. The
last day for presenting a petition to the House of Lords
was the 27th inst., and the present was the latest period
they could conveniently call them together to considtr
the subject. The association had been exposed to consi-
derable opposition from railway companies, and be hoped
the members would notfail to make any suggestions they
thought proper, with a view to carry out the objects the
association had in view. They found that other compa-
nies were prepared to assist the chairman and directors
of the Eastern Counties Companies in opposition to the
effort, of the Reform Association. A code of bye-laws
for rail way companies bad been prepared by Major Court,
and, if generally adopted, he believed it would confer a
great benefit on railway property. The financial position
of the association showed that they had funds quite suf-
ficient to meet any expenses that would occur. Teey had
resolved not to get into debt, but to close their affairs if
not supported by those whose interest it was to do so.
Every member of the association might feel assured that
no liability would be incurred for which they bad no
funds, nor would they carry on proceedings one atom
further than their means WoUld allow. It was proposed
that they should apply to Lord Dalhousie to become their
Patron. It was well known that he had made valuable
suggestions in respect to railway legislation, which, if
adopted, would have conferred great benefits on railway
property. It they could obtain the assistance of other
noble lords it would have the effect of overcoming, to a
great extent, the opposition with which the association
bad now to contend. With reeard to the bill promoted by
the directors of the Eastern Counties Railway Company,
they should bear in mind that the House of Commonsdid
not recognise shereholders in a company appearing against
the directors, as it was presumed that the directors
represented the company, and consequently the whole
of the shareholders. The only mode of opposing a
bill was in the character of landowners, but on proceed-
ing to the merits of the case they would he immediately
stopped by the committee on the bill. The bill contained
25 pages of recitals of former acts of Parliament relating
to the company, from which it was impossible to unravel
what those acts empowered the directors to do. The
only chance of opposing the bill with success was in the
House of L rds, and they would call upon the promoters
to show what powers they had by former acts, and what
powers they sought by the bill. Although the directors
had stated in their last report that they wanted nothing
more than to consolidate the powers of the com-
pany, it appeared the object was to enable the directors
r.o raise a further sum of 800,0001. on mortgage. It was
by no means easy to understand the bill. The borrowing
powers of the company were exercised to the extent of
2,420,0001., but it appeared they were to be extended
t, 3,195,000/. In order to accomplish this object it
.eas stated in the bill, among other matters, that the
capital of the Eastern Counties Company now consisted
,f 1,180,4001., Northern and Eastern stock ; 641,800/.
six per cent, stock ; and 5,854,0151. ordinary stock ;
whereas, in fact, the Northeru and Eastern stock was

not a part of the Eastern Counties capital, but a first
mortgage of preferential debt on the entire profits of the
company, bearing interest at 5 and 6 per cent. per an-
num. It was a most. injurious course towards the ori-
ginal shareholders to increase the preference charges.
The promoters of this bill said these figures gave the
amount of their capital, and that they were ent:tled to
borrow money to the extent of one-third of the total,
amount. The Northern and Eastern Railway was leased
(or 99 years by the Eastern Counties Company, and
they had no power to borrow money on account of that
company's capital. By withdrawing certain clauses
which were originally in the bill, such as giving autho-
rity to the Eastern Counties Company to lend money to
the Eastern Union and Norfolk companies, and to sanc-
tion all former acts of the directors, it would not be ne-
xssary to hold a Wharucliffe meeting, at which a mino-
rity holding one-fourth of the capital represented at such
meeting would have the power to reject the bill. After
alluding at considerable length to other matters con-
nected with railways in general, he concluded by ex-
olaining that he had retired from the chair and the board
,f the Metropolitan Railway Company in consequence
,f his connection with the Reform Association ; and
=aid that, so long as he was supported by the members
Hof the association, no consideration would induce him
to forego his exertions in carrying out the object they
~ad in view.

Mr. MITCHELL remarked that it had been very truly
.iaid by Mr. Hadfield's committee on the affairs of the
London and North-Western Company, that the share-
holders should understand that augmentation of capital
meant reduction of dividend. If the directors were
allowed to pass the bill, the effect would be that the in-
creased preference cLarges would swallow up the small
dividend on the ordinary stock. He concluded by mov-
ng a resolution ti the effect that it was necessary for the
protection of the ork;inal stock to oppose the further
progress of the bill.
_ _

kr. GARRATT seconded the motian, and it was cal ried
unanimously.

Resolutions were also passed to the effect, that the pe-
tion against the bill be presented to the House of Lords,
n d that the Railway Defence Committee be requested
o continue their ~pposition to the bill, and receive sub-
•criptions to defray the necessary expenses.
A cor•.'ial vote of thanks was passed to the chairmai,
tnd committee for their unremitting exertions in the pro-
notion of railway reform. The meeting then separated-