The Sun.
London, England, 1856-02-21 00:00:00

MIDLAND.

Yesterday the half-yearly meetinc, of this company
was held, at the station, at Derby ;e'Mr. John Elli 3 in
the chair.

The report and abstract of the accounts have already
appeared in The Sun. _

The CHAIRMAN, in moving the adoption of the report,
said that it was a great pleasure to him, in which his
fellow-directors shared, that they had been able to lay
tefore their shareholders the most satisfactory report
ever made to them since ho had occupied the chair. At
the time he bad the honourof being appointed to occupy
their chair the company's affairs were at a low ebb ;
since then they had improved ; they were still improv-
ing, and he believed wou'd continue to improve ; at
the same time, it was worth while, as they were still
paying only what he considered to be a low dividend,
that the shareholders sh4uld look at the circumstances
which had brought them down from 7 per cent. to 3g.
Tea years ago theirs was the only railway route from
the north ; they bad all the Scoteh traffic by railway,
and up to a much later period they continued to enjoy
the greater portion of that traffic. In 1846 the North
British opened, the Caledonian in 1848, the Great
Northern in 1850, and the Towns line, by which they suf-
fered most, in 1852 ; by means of it competition with the
Midland really commenced, and much of the north traffic
was deviated. In the first half of the year 1847 they had
368 miles open, and the last part of that year 415 miles ;
their earnings in that year by passenger traffic amounted
to 663,0001.; whereas in 1855, when they had 500 miles
open, their receipts were 589,0001., showing a deficiency
on that account of no less than 73,0001., though they
had in that year more than one hundred additional
miles than in 1847. The hon. gentleman next referred
to some remarks made by Mr. Ricardo at the North
Staffordshire meeting, in the course of which he took
occasion to deny that Midland dividends had ever been
paid out of capital. With reference to the working of
the past half-year, be noticed that their receipts had in-
creased 35,0001., whilst their increased charges on that
account were only 10,0001., a result which he regarded
as highly satisfactory. He entered into some details on
the question of maintenance of way, mentioning in the
course of his remarks on that head that they were now
expending out of revenue on the permanent way an
average of 1901. 13s. per mile per annum ; their trains
had run during the past year a mnsiderable less num-
ber of miles both in respect of passengers and goods ;
in goods alone 30,000 fewer miles had been run,
by reason of a better arrangement of the trains,
and nearly the same weight had been carried,
although, as could be shown in particular instances, the
traffic on their line had suffered materially by reason of
the war, especially at Gloucester, and the timber trade
had been nearly annihilated. Mr. Ellis went on to ex-
plain various economic arrangements in connexion with
the rolling stock, and with duo regard for its efficiency.
And with reference to the Leicester and Hitchiu line, it
was proceeding satisfactorily, with every probability (un-
less the weather stopped the works) of its being ready
for opening in October. Their rate of interest on deben-
tures during the past half year bad averaged only 41. 23.
Oid. per cent., which in the present state of the money
market must be regarded as highly satisfactory. They
were promoting a "capital" bill in Parliament, the pur-
pose of which was to give them power t..) raise a further
sum of 900,0001. In reality, however, this was only an
addition of 400,0001., the other 500,0001. being to supp!y
the place of stock, which they could not now issue at
par. He explained the circumstances under which the
various additions to capital had been made eince he had
occupied the chair of the company. In the gross it
amounted to 4,400,0001. in seven years ; but of this
2,090,0001. was for the purchase of the Leeds and Brad-
ford line, which had already been the means of effecting'a
saving of 9,0001. a year ; then there was 843,8701. for
new lines, which included the Leicester and Hitchin, the
Ripley branch, the construction of the narrow gauge at
Bristol, and works at Stonehouse ; and there wan a further
sum of 473,0001., which included a very large number of
items. Mr. Ellis then entered into some lengthened re-
marks on the subject of the contest now going on between
the Great Northern and the companies with which
the Midland was in alliance. He said thal.. the sooner

the present warfare was put an end to and peace re-
stored the better, for the warfare now going on was
an unseemly business, and a scandal to railway com-
panies. He showed from the clearing house returns
how much the Great Northern Company had to lose
by the dispute as compared with the Midland, for the
accounts ending June, 1855, showed that the Great
Northern Company received 147,0001. for passenger
traffic for the twelve towns over which the Gladstone
treaty extended, whilst the Midland for those towns
received 23,0001. only. lie expressed his regret that
Mr. Denison had brought about the present difficulty,
and reminded his shareholders that, however much
they desired peace, they had their own interests to
protect, and could not Sacrifice everything to Mr,
Denison. He expressed a hope that some means
would be devised for /maing an end to the contest ;
indeed some of them were (Ca said) to meet in London
on Thursday on the subject. All he asked of the Mid-
land shareholders waste have confidence in the dir!ctors
and they might depend on it their interests should not
be neglected. Mr. Ellis concluded by formally moving
the adoption of the report.
Mr. SAMUEL BEALE, the deputy chairman, seconded
the motion.

Mr. JONES, of Huddersfield, protested against the
continued increase of capital, which invariably ended in
the decrease of dividends. At the prennt time the inte-
rest paid to the Four-and-a-Half per Cent. Preference
Stock was money which should have been devoted to the
payment of dividends on the consolidated stock of the
company. The further increase of capital to the amount
of 900,0001. was a very serious matter, and he thought
the shareholders ought to know to what purpose it was
to be applied. At the rate they were going on, increa,d
traffic was not likely to be followed by increased divi-
dends.

The CHAIRMLN explained that they bad lost much
valuable passenger traffic by reason of the new lines ;
and they were obliged to take means to foster another
description of traffic, or their dividends would not be
maintained.

Mr. JONES replied that be made no complaint against
the board, but the best of men wanted watching ; nncl
he was strongly of opinion that some check should be
put on the continued increase of capital. They had this
half-year, for the first time, a voico from the audit ors,
and he called upon the shareholders to give attention
to it.

The CHAIRMAN said it was not to be supposed that
the board was fond of spending money merely for the
sake of it. The expenditure of every 501. wa.4 discussed
by a committee before it was made.

Mr. GEE, of Nottingham, complained of the large re-
serve kept in hand. The London and North-Western
Company was content with 48,000/. ; why should the
Midland carry over 34,0001. ? He asked the directors to
give them another quarter per cent. Other companies,
equal in importance to the Midland, divided nearly the
whole amount of their revenue ; and unless that point
was conceded, he should be obliged to move an
amendment on the report. Mr. Kirtley had reported
that the rolling stock was in good order ; he had no
hesitation in saying that a portion of it was as di,.
graceful as any to be found in England. As to the in-
crease of capital, it had been increased very largely since
1850, and now another 900,000/. was asked for, without
any explanation being given as to what purpose it was
required for. In these circumstances it was high time
for the shareholders to take this matter into their own
bands. He called attention, too, to their third-class
passenger carriages, which were disgraceful, and ought
to be improved.

The CHAIRMAN, with reference to the proposal to in-
crease the dividend, asked that this matter might stand
over—that, in fact, they might run too close at this mo-
ment. The board had unanimously agreed as to the
expediency of the dividend recommended, and another
half-year the matter should be considered, especially as
the greater part of the dividend warrants were now made
out. As to the proposed increase of capital, it was
wanted for the general purposes of the company.
Mr. BLAND, of Sheffield, agreed with Mr. Gee that
many of the third-class carriages were in a very bad
state. He had hoard (he said) many complaints of it
amongst commercial men, and he believed that the
traffic suffered in consequence.
Mr. HADLEY, of Birmingham, complained that the
accounts were not sufficiently explanatory. He desired
to know what was paid for the station accommodation
at Birmingham ; and whether, in the event of a dispute
with the London and North-Western Company, they
amid be turned out?

Mr. BEALE, the deputy-chairman, replied that they
had the accommodation by arrangement, under deed, on
veil favourable terms, and that it was in perpetuity.
Mr. GEE said that he should take what the chairman
had said as a promise for the future, in respect of the
dividend, and that ho should not press any amendment
on the subject at this meeting.
After some further discussion of a general character,
the motion fur the adoption of the report was put and
carried unanimously ' ' as were also the attendant reso-
lutions declaring the dividends recommended.
Mr. BAINES, of Leeds, moved two resolutions to the
effect that no addition be made to the capital expendi-
ture of the company, without its being previously sanc-
tioned by a vote taken at a general meeting of the share-
holders ; and that the adoption of the usual hallyearly
report of the directors shall not be considered as giving
sanction to any guarantee or other undertaking without
notice to the shareholders having been given ; and that
seven days before the meeting at which such application
is intended to be made, full information shall be supplied
as to the amount of money intended to be asked for. lie
was satisfied, he said, that the accounts were accurate:y
kept, and of the full integrity of purpose on the part of
the directors, but it was proper that estimates of pro-
posed new expenditure should be laid before the share-
holders, and their sanction obtained before the money
was expended. At the same time he fully admitted that
with the growing traffic tof the company it was impos-
sible to close the capital accounts.
The CHAIRMAN seconded the motion, wiAich was car-
ried unanimously.
Resolutions were adopted, authorising the directors to'
caPitAlis• a oertlgn plition of the 4h per cent, stock ;