The Sun.
London, England, 1860-11-30 00:00:00

GREAT WESTERN.

A special general meeting of this company was
held yesterday, at the Paddington station, for the
purpose of considering the report of the directors
on the subject of applying to Parliament for power
to raise capital for laying down additional rails for
the narrow gauge between Reading and London,
and for other purposes therein referred to; the
Earl of Shelburne, the chairman, presided.
Mr. Saunders, the secretary, read the notice
convening the meeting. The report, a copy of
which appeared in The Sun about a month since,
was taken as read. •_ _

The CHAIRMAN, in moving the adoption of the
report, said he had no doubt that every shareholder
present had read it.* He had two resolutions to
submit for their consideration, and he trusted they
would show their confidence in. the Board by
adopting them. In going into the circumstances
which had led to the measure he was about to
propose, he wished the proprietors would allow
him to fix their attention en the present state of
the affairs of the company. It would be very
undesirable to go back and endeavour to argue
from facts which they could not alter, and from
which no advantage could arise by recurring to
them. The Great Western in extending their
system had expended a very large capital, and
those extensions had not always succeeded in
producing them an increased dividend. He did
not propose any extension of their system, but that
tha directors should be authorized to apply to
Parliament in the ensuing session for power to
raise additional capital for the purposes mentioned
in the report. It was not for the purpose of
extending their lines that they required the
additional capital, but for making the most of
the property they possessed, and for developing to
the utmost the resources of the company. That
was the course now proposed to be adopted, and he
had no doubt it would prove beneficial. He would
divide the subject of proposed outlay into two
portions. The first related to the cost of additional
rails to form the narrow gauge upon the line between
Reading and Paddington, including the branches
to Windsor and Brentford, and of the necessary
narrow gauge working stock to work it. The
former was estimated at £225,000, and the latter
at £230,000, making together £455,000. The second
related to the additional capital that would be re-
quired from time to time for the general purposes
of the company, amounting to about £500,000, and
making the total sum £1,000,000. The subject
had occupied the attention of the Board for a con-
siderable time, and a most careful investigation
had been made into all the circumstances and bear-
ings of the question, and they had arrived at the
conclusion that it was the interest of the Great
Western Company to afford every accommodation
to induce traffic to come upon their line, and to
remove any obstacle that might exist, or be sup-
posed to exist, in preventing an accession of ,traf-
fics, particularly the goods traffic. He was not
prepared with any fixed data to show how much
additional traffic they would derive from the pro-
posed additional expenditure.. They could not
control the progress of events in the railway world,
and it did appear, after the most careful inquiry
at every point and at every place, that a consider-
able amount of traffic was prevented coming on
the line in consequence of not being able to facili-
tate the transit of narrow gauge traffic from other
lines. The directors, therefore, thought it wise to
proceed with the question, and submit it to the
proprietors as early as possible. The Board
itwer.e.
prepared to act, if necessary, at a short notice,
the proposed measure met the approval of the
meeting. The West Midland Railway Company
had assured them that additional traffic would
come from their line to a considerable amount, so
that, with the traffic •that would come from the
northern portions of the Great Western line and
from other sources, it was believed there would be
an ample return to compensate them for the
it pro-
posed outlay. Most people considered that was
a step that must ultimately be taken—(hear,
hear)—and that now was the time to bring it
forward. In their competition with other com-
panies
for traffic they had generally succeeded k

in giving satisfaction to the traders, and they
saw no reason to doubt that when they extended
the accommodation on their line—for that was
what they proposed—it would result in
giving them a fair amount of additional traffic.
The proposed increase of capital for the gene-
ral purposes of the company was fully explained in
the 13th and 14th paragraphs of the directors'
report, and had already been before the shareholders
on former occasions. It would be useless to urge an
accession of traffic when the great float at Birken-
head was completed, unless they could provide the
additional accommodation which would certainly
be required on a large scale. It would be impossible
for the company to carry on a large trade success-
fully unless proper and sufficient accommodation
were provided. The money would not be expended
without the authority of the shareholders in every
case. The most pressing matters would be provided
for as early as possible, full explanations would be
given as to any proposed outlay, the expenditure
would be carried on gradually, and spread over a
certain period. All that was required at present
was their assent to the application to Parliament
for powers to raise the money when required for
the purposes of the company, but the directors
could not raise any part of it without the authority
of the proprietors at some future meeting. to be con-
vened for the purpose.
Mr. SAKER had no doubt that the plan proposed
by the Board was a good one, but he trusted that
nothing would be done to interfere with the free
operation of their broad gauge for passenger traffic.
It was the favourite gauge with passengers, and
had the advantage in respect of speed and safety.
It was of great consequence to the company that it
should be retained, particularly for reaching distant
stations. He thought the estimate for laying down
the narrow gauge f'rom Reading to London was too
high, and that it would not cost so much as
£225,000, or £5,000 per mile.
Mr. VIVIAN suggested that the company should
make a narrow gauge line from Oxford to
Wycombe or Uxbridge, and so on to Paddington,
with a view to fill up that district, and thus pre-
vent the West Midland or any other company
projecting a line in that direction.
The Rev. Mr. NICHOLSON said he was not a
partisan of the directors, but on that occasion he
would give them his most hearty support. Their
narrow gauge traffic on the Shrewsbury lines was
increasing considerably ; up to the present time
the traffic had shown an increase of £B,OOO, and
there was every probability that those lines would
soon show a profit instead of a loss.
Mr. NORRIS, M.P., hoped the meeting would not
sanction so large an expenditure of capital in the
present condition of the company. Their dividend
had now arrived at 3 per cent.., and he thought, as
prudent men, they should not increase their outlay
until they could pay dividends on the ordinary
stock at the rate of 4 per cent. per annum. Their
capital was £23,000,000, of which £8,250,000 was
ordinary stock, £4,500,000 preference stock, and
£10,500,000 floating debt. He did not see how
they were to raise additional capital unless they
could increase their preference stock considerably,
and reduce the proportion of the floating debt. He
had no confidence in the promises of the West
Midland to bring traffic on their line. The
Wycombe and Uxbridge district was open to them,
and he hoped no expense in laying down the narrow
gauge would be incurred on that account.
Mr. SHAW said he represented the Edinburgh
shareholders, and they were of opinion that no
further expenditure should be incurred until the
shares were higher in price, and the dividends
larger for a certain time. He quite concurred in
the views of the last speaker.
Mr. BAKER, a director, thought it right, in
justice to the chairman, to inform the meeting that
he had gone into the whole question with the
utmost care, that he had investigated every point
in the most minute manner, and that he (Mr.
Baker) had accompanied his Lordship in those
inquiries, and could assure the proprietors of the
great personal labour and consideration the whole
matter before them had devolved on their noble
chairman, and he (Mr. Baker) had no doubt of the
result of those measures as to an increase of revenue,
if the propositions of the directors were carried
out. With regard to the West Midland Railway
Company, they could afford them all accommoda-
tion they could possibly require, on such advan-
tageous terms that they would not be wise men if
they did not embrace them. He contended that
that was the proper time to consider the question
of accommodating narrow gauge traffic, and that a
considerable augmentation of revenue would be the
result of the proposed facilities.

Mr. GILES.. contended that the time must come
when the whole of the broad gauge rails would be
taken up and replaced by narrow gauge rails.
(Cries of "No, no !") Various annual sums had
fallen in, and were about falling into the hands of
the company, amounting in the aggregate to
£33,000 a year, and instead of raising any more
our;tal hr. would appropir;cif. that 0.1,1/111n t to pro-
vide the necessary accommodation for increased
traffic. He concluded by moving an amendment to
the effect that the further consideration of the
question be deferred until the next half-yearly
meeting.
The CHAIRMAN, in reply to various observations,
said he thought there was a certain amount of mis-
apprehension among the shareholders respecting
the broad gauge on their line ; the board had no
intention whatever of disturbingit. He quite agreed
in all the observations as to the advantages of re-
taining it for their passenger and goods traffic,
particularly to Birmingham and other places.
(Hear, hear.) There was no doubt the goods
traffic had suffered from the break of gauge, and he
might state that the great object of the board was
to remove all obstructions to their traffic, and to
induce as much traffic to come upon their lines as
possible. The directors would take care not to spend
anything more than was requisite to accomplish the
desirable objects they had in view. They would
feel much gratfied if they should find that less
capital than was estimated would be sufficient for
these purposes, but he did not believe the sums re-
quisite had been over-estimated. He could not tell
what might be done in 100 years hence, but he
could assure Mr. Giles that they had no intention
whatever to pull up the broad gauge and substi-
tute the narrow ; their only object was to develope
the resources of the line as much as possible, for
the advantage of the public and for the benefit of
the proprietors. (Hear, hear.)
On a show of hands only four appeared for the
amendment, and a very large number against it.
The report was then adopted with only three dis-
sentients. _ • _

The CHAIRMAN proposed the following resolu

tion :

" That the directors be, and they are hereby empowered,
to make application to Parliament in the ensuing session for a
bill to enable them to raise and creato additional capi-
tal, not exceeding £1,000,000, for the several purposes spe-
cified in the said report, upon such terms and conditions as
may be determined irom time to time by resolutions of the
company, and generally to regulate the existing capital of
the company as may seem most advantageous to the com-
pany."
he resolution was carried, and the proceedings
terminated.