The Sun.
London, England, 1860-10-27 00:00:00

ort of the London
way of Canada wax
GRAND TRUNK O,P CANADA.
-e it below in ex-
The anxiously-expected rep
jaimediately
join with
O.- - 'Ts of the drank Trunk Rail \
,uvl 1, 'sterday evening. We gig
... ,O. .1! ". --5 that an investigatice Mt° the gene-
ral pOsition of the undertaking is to bk.'
instituted by the Government, in conju.na
the company. The Government of Canac, a will
then be required to decide upon the natur, 9 and
extent of the assistance to be granted. This is a
I responsibility which it cannot possibly evade.
REPORT OF THE LONDON DIRECTORS.
The Londeji directors having recently received fri.en
Canada the accounts of the efunpany, made up to the 30th
June avail themselves of the opportunity afforded by thilir
distribution amongst the shareholder 10 make known to
them, and also to the bondholders, the e.xect state of the'
company's finances, which prove the distreeting fact of the
impossibility of paying the interest on the second prefe-
rence bonds due on the Ist of October, the steps VhicL. have
been already taken since the last communication, and .those
which the
the
object of relieving the company from its pre; sent
circular of 13th of July,
with London directors recommend should be purl -mod
embarrassments. It has been already mentioned in the
that although authority had be on
given to raise .C 1,500,000 on bonds or stock of the comport. Yf
to pay off liabilities, and to increase the rolling stock, en d
to meet the current wants of the year, the directors were I
unable to ob'ain it on any terms. A memorial was axord-.
ingly drawn up and presented by the directors in Canada to,
the executive government, pointing out the existing con-
nition of the undertaking, and praying for relief. The Lon-
don directors had fully expected to have received before now
an answer to this application ; but the visit of his Royal
Highness the Prince of Wales had so entirely absorbed the
time of the various members of the Government that they
were unable to take the subject into their serious considera-
tion, and they hare now only authorised your directors to
announce that the subject of the Grand Trunk Railway wia
be brought under the notice of Parliament, aFid that the
its affairs. Your directorg are most anaips—and they are
Government are about to issue a commission to inquire into
authorised to add the malager in Canadainvestigatione onestrosuldit
the
wish, that a thoroughly searching
inatio and.
shareholders and bondholders of every denom n,
tumid well versed.
place; but they think it would be more satisfactory to the
to themselves, that some one or two gen , . ~.,
LI-ran-Val, rnanazemthit, in whose 6.0 Engusn snuir.-arr,
wonld have confidence, Should emceed to Canaday tillo! m
conjunction with the proposed Government ,contudssion,
and for the purpose of co-operating with it in its imp
investigation, report to them the result of their obserinin .
The London directors have at present no individual iii view
for this mission, and are prepared to consider favourably' any
recommendation of one or more persons ; but in the absance
of stich nomination they will themselves select such a persf.'n,
as they believe that they should thus act in accordance with
the general wish of the shareholders and bondholders, anal
consistently with the desire of the Government of Canada.'
The London directors feel that there may be many points
touching upon agreements with other companies, and upon
the postal subsidy—which, in their opinion, is far too low
in remuneration for the services performed—and other
matters which require revision; but at the present moment
all the company's operations are paralysed by their finan-
cial difficulties and the want of sufficient rolling stock to
carry on and develop the existing traffic; and they look
with confidence to the results of the inquiry to be instituted:
to relieve them, by the future action and liberal policy of
the Government and Legislature by some practical remedy
from the existing. embarrassment of the company.
The following is an estimate of the company's liabilities

in England :--
To loans and bills payable in England
Bills drawn by the company from Canada: 235,564
----

X 2,018,232

Against which are hypothecated tho follow-
ing securities, viz.:— _

£275,600 2d Preference Bonds..
326,000 Ordinary Bonds 0
47,200 Toronto Corporation 80nd5....
32,500 Atlantic Atlantic & St. Lawrence Shares 074
7,500 Atlantic & St. Lawrence Bonds 4-4
per Cent. Bonds

443,043

£1,575,189

Securities in hand £32,300 ordinary Six per
Cent. Bonds
Ditto 27,600 Seven per Cent. Bonds
Add unpaid and overdue interest on Bonds..

130,54,10

£1,705,689'
The London directors have at present no exact return or
any further floating indebtedness which may exist in Canada,
for additional rolling stock provided since March, and other
expenditure, but have desired such a report to be made.
Since the estimate of the wants of the company in
March last its pecuniary position has been dete-
riorated by the payment of interest on bonds and
loans
Difference in value of assets from fall in prices 250,000

£411,000
Whilst on the land to be resold, and valued at £120,000,
only a small portion, realising L 5,000, has been sold; which
will explain the increase in the net requirements of the
company at the present time, as compared with the state-
ment issued in, March last.
In the present embarrassed state of the company's affairs,
and the uncertainty of relief from the Government adequate
to meet its liabilities, Messrs. Baring Brothers and Co.,
and Messrs. Glyn, Mills, and Co. have obtained a judgment
against the company for debts due to them and others
whom theytepresent, which vests in their agents the power
of seizure of the rolling stock of this road ; but this mea-
sure has been adopted for the general benefit of all present
creditor's to guard against hostile prosecution of hadividual
claims, and for the protection of the company's interests
It had been the intention of the London directors to
have convened a meeting of the shareholders in the early
part of this autumn ; but the late receipt of the accoutas
of the last half-year, and the delay in obtaining any airr-
swer from the provincial Government to the representa--
tions made by the Canadian direction, have involved the,
necessity of postponing the semi-annual meeting, and the
directors now feel that the presence of the president, the
Hon. john Russ, and the vice-president, Mr. Blackwell,
has become requisite, to afford to the shareholders any in-
formation which may be wanted. These gentlemen are for
the present-detained by the performance of their respective
duties ; but as they have notified to their London col-
leagues that they will be able to felt England in the
month of December next, it is proposed to call a general
meeting of the shareholders in the middle of that month,
of which timely notice will be given.—By order,
JoHli M. GRANT, Secretary.
Grand Trunk Railway Office,
21, Old Broad-street, E.C., Oct. 26.
The statement of accounts of the Grand Trunk
Railway Company of Canada will be issued on
Monday. •