The Sun.
London, England, 1860-02-23 00:00:00

BERLIN WATER WORKS' COMPANY•

The seventh annual general meeting of this
company was held at the London Tavern, on
Monday, 20th inst. Mr. Henry Buckle in the
chair.

The CHAIRMAN expressed his regret that, owing
to the indisposition of Mr. W. H. Goschen (the
chairman of the directors), ho had been called upon
to preside over the meeting.
The SECRETARY (Mr. Charles Richardson) read
the notice convening the meeting.
The following report from the directors was
presented :
" The directors have now to submit to the shareholders
their customary report upon the company's progress during
the past six months. Since the half-yearly meeting in
August last the lowering of the piritsystem has been com-
pleted, and there is now every reason to feel confident that
it has been rendered free from the risk of interruption by
frost. At Stralauer Thor the direct connection between
the river and the works has also been completed ; and the
conversion of the pure water reservoir into filter basins has
been accomplished in a very satisfactory manner. The
filtering beds are in a state of forwardness, and aro expected
to be in operation within two months after the breaking up
of the frost. When this is completed all the contemplated
improvements will have been effected, and that within the
original estimates. The financial statement submitted at
the last half-yearly meeting exhibited a surplus of £249
lls. 4d. on the revenue account. By the account now sub-
mitted it will be seen that the working of the past half-
year has yielded a further profit of £1,215 7s. lid., Inking
a total for the year of £1,464 19s. 3d., which the directors
hope, as evidencing the first profitable working of the un-
dertaking, will be satisfactory to the shareholders. The
balance appearing to the debit of revenue on the 31st De-
cember, 1858, was £7,809 le. Bd. A strong opinion was
expressed by many of the shareholders present at the last
general meeting, that this balance properly appertained to
capital. The directors have given much attention to this
question; and, considering that the balance is the result of
provisional and experimental working while the works were
still incomplete—incurred with the double object of practi-
cally testing and keeping the works in order, and introduc-
ing at as early a period as possible a demand for the water
—are of opinion that it may be fairly treated in the nature
of a preliminary expenditure. They therefore intend to
propose a resolution to the meeting for liquidating it,
by an annual appropriation from the profits of each year."

MR. GILL'S REPORT.
"During the past half-year the various operations for
the improvement of the works have been steadily carried
on. In the execution of the deeper-laying, changes in the
pipe system, which facilitated the work and tend now to
prevent interruption in the supply to consumers, were car-
ried out, and alterations made in the valves and casings of
the hydrants, which will diminish the frequency and cost of
repair. The whole of this work was completed by the end of
September, and within the amount of my estimate. At the
pumping establishment at Straulauer Thor, the direct
connection' was completed during the month of August.
The small covered reservoir was finished in October, and
on the 22d of that month opened by the Minister of Public
Works, in the presence of the Burghermaster and a large
number of high officials of the state and of the town. The
works necessary for the conversion of the pure water re-
servoir into filter basins were brought to an end early in
November, and the washing, screening, harrowing in, and
packing of the materials for filtration, has been proceeded
with till put a stop to on tho 3d December, by the severity
of the frost. In about six weeks after the breaking up of
the frost in the si rine., these basins may be completed and
in action. The whole of the works have been maintained
during the past half year, and are now in an efficient state
of repair. The service-laying business has increased dur-
ing this period. From the accompanying tabular state-
ment it willbe seen that .56 per tient. of the estimates fur-
nished by us have been accepted, and work executed by us
for 129 customers. The tabular statement referring to the
revenue shows that the ureters have yielded considerably
moro than in any previous half-year, and that a steady and
increased rate of progress has taken place in the increase of
the water rates. Measuring also by the number of houses
laid on, the yield in revenue per house is steadily on the
increase. In the latter or hot half of the year the consump-
tion of water is greater than in the first half of the year;
it is to this, and to the increased number of customers, that
the increase in the working expenses of the past as com-
pared with the previous half-year must be attributed. These
working expenses are, however, considerably below those
of the corresponding half of the preceding year. The ac-
companying accounts and lists give a complete insight into
the expenditure, and show the quantity of stores and plant
in hand."

The CHAIRMAN then rose and said he hoped the
directors had not miscalculated the view in which
the shareholders would receive this report, and they
flattered themselves that, upon the whole, it would
not be considered unsatisfactory. When they met
in that room six months ago it might be said there
was merely distinguishable a distant glimmer of
light, which indicated the close of a dark and dis-
mal night. Now they could see in the distant
horizon the streak of light which denoted the coin-
ing day, and they might say with confidence to the
rising of that sun of prosperity to which they had
all so long and anxiously looked forward. (Hear,
hear.) Six months ago they found a small balance
upon the working of the preceding six months.
They now found that balance considerably increased
—looking at the relative amounts; and he thought
they might flatter themselves that they had now
overcome those first difficulties which they had had
to encounter, especially upon its introduction into a
foreign country. These difficulties had been en-
hanced by the death of the Minister at whose insti-
gation they were mainly induced to embark in the
project, and whose promises certainly had not been
fulfilled to the extent they were led to expect. But
they had fought their battle so far bravely, and he
hoped the day of their reward was approaching.
There were one or two matters alluded to in the re-
port upon which he would offer a few r3marks, and
ho should then be most happy, on the part of the di-
rectors, to afford any further information that might
be desired, or to answer any inquiries made of them.
That which was stated in the report,andgiven more
in detail by Mr. Gill, would inform them that they
were going on in the ;completion of their works,
which, he was happy to say, were now so near
final completion as only to await the breaking up
of the frost to render them, ho hoped, perfect for
future working. (Hear, hear.) The most mate-
rial point alluded to in the report was the mode in
which it was proposed to treat the balance which
had accumulated to the debit of the revenue ac-
count. Out of respect for those shareholders who
on the last occasion expressed a feeling that that
amount should be transferred to the debit of capital
account, the directors had given a great deal of
attention to the subject. They had felt that, pot-
ting aside all the legal difficulties of the case, as
men of business they could not recommend such a
course as that for adoption. It was true that
amount was composed of items, some of which
might in the first instance, without question, have
been carried to the debit of capital ; but, so anxious
were the directors and auditors, from the moment
that the works came into operation, that nothing
should be carried to capital which did not in the
strictest sense appertain to it, that this balance of
£7,809 had accumulated to the revenue. There
was one sum of £2,000, which was the expenditure
incurred in the first winter of their operations, in
which the frost attacked their pipe system ; but
they found from the extent of the mischief which
occurred that it was advisable to enter upon the
expense of relaying the whole. In the first place
they only replaced those which burst as the
mischief ensued ; and it cost more than £2,000 to
accomplish that which was work to be done over
again when they came to relay deeper the whole ;
but looking to the fact that the item under
discussion was carried to the debit of revenue at that
time, they did not think it right or proper, some
three years after, to re-open the question and carry
over that portion of the amount to the debit of capi-
tal. The directors, therefore, were about to pro-
pose a resolution authorising the appropriation
yearly of a certain sum towards the gradual liqui-
dation and wiping out of that which they treated
in the light of preliminary expenses incurred in
bringing the thing into full, and, as they hoped,
profitable working. They had thought that pro-
bably the better course would be to fix a minimum
amount to be so appropriated, and they proposed to
lay aside £5OO a year out of the surplus revenue of
the company towards the clearing off of that amount
of £7,809. If, as he hoped and believed, they made
rapid progress, they might in some future year say,
" Is not this a moment when we may spare more
than £5OO, and endeavour more quickly to get rid
of this weight which is hanging round our necks."
(Hear, hear.) Or when they found there was a
comparatively small surplus beyond the amount
required for the dividend which was scarcely worth
dividing per share, it might be that they would be
willing to add that balance to the £5OO, and let
that go in diminution of the amount. But that
was a matter for future consideration. What the
directors would propose was, that the shareholders
should authorise the appropriation of a minimum
amount of £5OO a year towards the wiping out
of this amount. The next question was
the fact of three directors retiring, one of whom
had resigned ; therefore, only two names would
be brought before them for re-election. The
directors felt that the board was, notwithstanding
the retirement of Mr. De Vitre, sufficiently nume-
rous for the efficient carrying on of the concerns of
the company ; and unless it should be the feeling
of the shareholders that it was desirable to add one
or two more to that number, the directors would
recommend that the board should stand as it did.
At the same time, if the proprietors thought other-
wise, the directors would not only readily but
cheerfully welcome any additions to the board
which they were desirous to make. lie would tell
them why the directors took this view. Originally,
as they were aware, the board consisted of seven
directors—being simply a Landon board of direc-