The Sun.
London, England, 1856-02-16 00:00:00

RAILWAY INTRT.T.TGENCE.

GREAT WESTERN:

The half-yearly general meeting of thi4 tompany was
held yesterday afternoon, at the station, Paddington,
which w3:4 very numerously attende.d. Shortly after
one o'clnek the chair was taken by S. H. 'Walpole, Esq
1\1.P., chairman of the Board of Directors.
Mr. SAUNDERS (the secretary) baying read the adver-
tisement convening the meeting, and the report being
taken as read,

The CHAIRMAN addressed the meeting:—Gentlemen—
Your directors have laid before you so full, so (-Sears's°
elaborate a report of the affairs, the position, and the
prospects of this company, that I feel any lengthened
statement emanating from myself would be a tedious
and superfluous task. There are some circumstances,
however, to which I think I ought to call your at-
tention, especially after the meeting we had in August
last—a meeting somewhat of gloom, it not on the.
part of several proprietors—a meeting, to a certain
extent, of despondency-4n order that I may Point,
out to you that the view which your directors took of
your affairs, was not over sanguine, but prudently cau-
tions, has, I think, in every particular been veil
fled. Oa the occasion of that meeting we found our-
selves with a dividend which had fallen from four per
cent, to two per cent. in a year and a half. There Seise
then great pressure commencing in the money markets
of this c suntry ; that pressure was likely to operate dis-
advantageously to yourselves with reference to the re-
newal of debentures, and I have no hesitation In saying,'
that the last autumn was an autumn of immense anxiety
to your directors ; but I hope the result of this report
will show you, . that by forethought, by prudence, by
careful management, your affairf 3ite
they were when VAtieni: addressed y9O: , (Oreette) 0,0„
that occasion I iiiiderieOUreel -to point- out •Ltiri-les'aur,se;
clearly as I could, the cause.of the diminution of our
dividend, and the consequent depreciation of your"
property. Setting aside • the stagnation of trade,
which, to a certain extent, was consequent on the
war, the high prices of most materials used in tl e con-
struction of railways—setting aside the necessity of
continuing unfinished works, which necessarily Operate
generally to your disadvantage, but which could not
be avoided—setting aside, I say, all these matters,
I traced, or endeavoured to trace, the causes of -the
diminution to those circunis'ances, which, I believe, oc-
casioned that diminution. You have only to look at your
report, and you will see how amply justified your direc-
tors were iu pointing out those circumstances as the
causes of that depression. You will there find that the
charge on the Great Western property, for the Shrews.
bury lines, was 34,0001. during the half-year ending the
30th of June, 18;.'5. Yon wilt find that the expenditure
for the lines north of Birmingham was little less, during
the same half-year, if at all less, than 40,0001.: you wilt
End the charge for new works, dering the same half-
year, abvt 12,000/., thus making a total of 86,000/.
Now, a diminution in your dividend of 2 per cent. is repro -
sented by a diminution in the available receipts of your
company to the extent of about 83,000/. for the half-year ;
consequently you will see that the causes of the din:tines
tine of your dividend to the extent of 2 per cent. might
fairly and probably be traceable to the three
causes to which I have adverted. Now, I F Weed
my opinion to be, that the depression of your
shares was a temporary, not a permanent, de-
pression. Look at the results—your average re-
ceipts during the half-year ending Dec. 31, 1355, as
compared with the average receipts during the half-year
ending Dec. 31, 1854, show an increase in your great
Western lines of 86,000/. ; and en your Shrewsbury
lines Of 23,0001. more. (Hear, hear.) The balances of
the revenue accounts carried to credit, when contr.setod
with the same period, show for the Groat Western lines
in 1354, a result of 383,227/. ; and for 1855, a receipt
of 433,3271., giving an increase of net earnings of
54,4001. The Shrewsbury lines show for 18,54, a sum of
32,6391. as against 47,799/. for 1855, or net increase of
earnings of 15,1601., making on the whole of your pro-
perly, a total inorease of net earnings of 69,560/.
(Cheers.) Now, observe the increase is not a partial
one, it is uniform throughout your lines ; observe also,
that this increase is not an increase made by fits and
starts, but by steady progression ; observe, iii the
tkird place, that this increase is still continuing, and
the receipts during the first six weeks of the present
half year, will, I think, justify me in saying the
company is gradually righting it.self, and that if you
pursue a prudent, cautious management of your affairs,
you will find it will right itself still more. I find that
the rsoeipts for the first week of 1856 of the Great
Western line, were 19,8741.—whi1e for the wet:, that is
six days, for the corresponding week of this year, the re-
ceipts were 17,4171., giving an apparent decrease of
2,456/., but you will see that there was not any decrease
when I add, as I shall, the earnings of the acidities' al,
day. Li the second week of 1855 the receipts were
21,020/., and for 1856 they were 21,884/.; being an
crease of 860/. ; for the third week of 1.355 the receipts
were 20,529/., and for 1856 they wore 23,2431., being an
increase of 2,716/. ; for the fourth week of 1855 the
receipts were 19,0201., and for 1856, 23,1541., giving an
increase of 4,130/. ; for the fifth week of 1855 the re-
ceipts were 21,1571., and for 1856 they were 24,342/.,
giving an increase of 3,192/. ; the sixth week's receipts
in 1855 were 20,150/., and for 1356 they were 15,385/.,
an increase of 3,735/. I will add the seventh day
to make the period of six weeks in 1856 correspond
with that of lt'ss. For that day I set down 2,013/.
for passengers only, showing a total increase of
14,6371., or an average of about 2,366/. per week
in favour of the present year. (Cheers.) I will give
the result of the receipts of the Shrewsbury lines
during the same period. The increase during the six
weeks on the Shrewsbury and Birmingham line was
855/. 12s. 2d., and on the Shrewsbury and Chester line
2,7291. 12s. 7d., making a total of 3,583/. 4e. 9d.; or an
average of 597/. per week. I mention these facts to
show you that I think I was right in stating that the
depreciation of your property was not likely to be a per-
manent depreciation, if you found by subsequent expe-
rience (as you do now find by subsequent experience)
that there was an improvement going r. n over every Fart
of your line, and that this improvement was consistent
and also progressive. The second point which I men-
tioned was, that you had seen the worst of your Shrews-
bury lines. In that respect I think my statement has
been fully verified. You will observe that your dividend
has this half-year been increased to 21 per cent. from 2
per cent. (Hear.) This alone will, I hope, to some ex-
tent, be satisfactory to you. You will also observe that
the balance on therevenueaccount is much larger than it
wai the last half-year, and that your directors have kept
in hand about 16,000/. in respeci of that balance. The
report states that there was an arbitration, by which a
further sum is expected from the South Wales Company
for the agreed use of the Gloucester station and esta-
blishment ever since they have opened their line ; that
that arbitration is nearly brought to a close, and that
the amount will appear to credit in the next account. A
small sum only was taken under that head to credit,
but I have the satisfaction to state to you that the arbi-
tration on this point was closed yesterday, and that you
may aid under that head to the credit of your account a
sum of 5,1001. (Cheers.) The result, then, is that your
available balance for dividend among the proprietors for
the last half year, instead of being what it is represented
to be in the accounts, is 5,000/. more, which added to
the balance that we have held in reserve—of 16,000/.,
would, in point of fact, just enable you to pay at this
momeet a 3 per cent. dividend. Now, Ido not recommend
you to ask for a 3 per cent. dividend, and I will tell you
why. I think one of the greatest points you 'nave to
bear in mind is, that you will be prudent and cautious
before the vessel has properly righted itself ; and I think
that till your works are completed, which they soon will
be, that till your liabilities are thereby perfectly ascer-
tained. it is safer for you to keep that balance in hand
to meet contingencies, and which will be a balance
available for you at a future period, though, as I have
said, I recommend you not to make it available for an
increase of dividend now. He then alluded to the dif-
ferences that existed at the board and concluded by say-
ing—lf you (the shareholders) will adhere to the wise
maxims you have laid down for yourselves, of not eii-
terin into new speculations—(cheers)—if you will strive
to keep in harmony with other companies, which must
be for the mutual benefit of both—if you will steadily
watch the rise of your shares, and the fall in the value of
money in the market, until you can convert your debt
into stock and reduce its interest—if you will finish, as
your directors have shown you you are about to finish,
all your great works, without incurring new liabilities
—again, I say, my honest, conscientious
is, that you have a property which,
by provident,bevabe
valuable
l
careful, by sedulous good managemert, will
to yourselves as an investment and as an income, and
will be restored, I hope, at no distant day, to tha.t, high_
position in which it formerly stood. (reoud cheers./ He
then moved the adoption of the report.
The question of the report being adopted was then
put, when
Mr. EDMONDS moved au amendment—" That so much
of the report as recommended a dividend of 2z per cent.
be adopted, and that the remainder be referred to a corn-
mittee, to be appointed when the list of shareholders was
published.
Major COURT seconded the motion,
A long discussion here ensued, during which Mr.
Edmonds was called upon to withdraw his amendment„
which he refused to do. Eventually the amendment
way put, and lost by a large majority.
On the question that the report be adopted,
Mr. MILES, M.P., moved the omission of those pas-
sages in it which permitted officials of the company to
become shareholders in the coal company specified
therein, and the insertion of words that no person cons
netted with the company, directly or indirectly, should
be permitted to have anything to do with the proposed
new Joint Stock Company about to be formed.
Mr. VOUSELY characterised the resolution as most de-
spotic, for surely they would not interfere with any en-
terprise in which their servants might wish to engage.
They ought to be permitted to have an opportunity of
employing their little capital as they might think proper.
Lord BARRINGTON hoped the meeting would not pass
a resolution which they,had not fully considered. They
might remember that the Limited Liability Act was
passed last session of Parliament to enable persons
with small capital to invest it, and yet that company
was prohibiting the salutary influence of that excellent
law. (Cries of " Hear, hear.")
Mr. CHARLES RUSSELL begged -of them earnestly to