The Sun.
London, England, 1867-05-24 00:00:00

RAILWAY INTELLIGENCE.

.61,54G0W AND SOITDII-WASTERN.
,
A-meeting of the general Committee of share- :1
holders in this company was held on Tuesday in
Glasgow ; Mr. G. Smith in the chair.
The report of the sub-committee in reference to
the bill for amalgamating this company with the
Midland Company stated that by the proposed amal-
gamation the interests of the public would not be
prejudiced, but, on the contrary, be materially pro-
moted. The main lines of the two companies would
form portions of a great continuous communication
between London and Glasgow ; and that the amal-
gamation would preclude the possibility of the West
Coast route being monopolised by the London
and North-Western and Caledonian Railway Com-
panies. The Glasgow and South-Western was
hemmed in, and its success to a great extent was
controlled by those companies. The position of the
Glasgow and South-Western and of the Midland
Railway Companies were found to be so nearly alike,
that an amalgamation on equal terms was deemed
the fairest course for both. The committee felt war-
ranted in recommending the Amalganiation Bill to
the cordial support of the shareholders.
On the motion of Mr. Smith, seconded by Mr.
Nicholson, the report was approved, and the sub-
committee were requested to take steps to secure
the passing of the amalgamation bill, and its ap-
proval by the shareholders.

GRAND TRUNK OF CANADA.

The report of the directors of this company states
that since the half-yearly meeting on the 18th April
last., the board had had two separate conferences, one
with the postal and military bondholders, and the
other with some of the largest holders of each class
of bonds and stocks, representing about £4,000,000
of the company's capital. At both these conferences
the following resolution, by way of recommenda-
tion to the meeting to be held on the 30th
inst., was adopted :—" That it be recommended
that powers be applied for in the ensuing Session of
the Canadian Parliament to convert the postal and
military bonds (say) .£1,200,000, into equipment
mortgage bonds, at a rate equal to 60 per cent. or
(say) £72,000 of equipment mortgage bands, bear-
ing a fixed rate of interest of (say) 6 per cent., and
to raise a further sum of £480,000 equipment bonds
for the purposes of the company, the whole issue of
these equipment mortgage bonds then being
£1,700,000, payable, first, out of the postal and
military revenue ; and, secondly, if need be, out of
the general net income. That the Act be subject to
the consent of the postal and military bondholders,
and to a vote of three-fifths of the bond and stock-
holders present at a special meeting. Also that
powers be applied for to change the name of the
company to the Canadian Railway Company.'"
Although the adoption of this recommendation,
while not increasing the total amount of preference
capital, would, at the same time, place at the dis-
posal of the company £480,000 of new 'equipment
bonds, wherewith to purchase new rolling stock,
and to provide for improvement and enlargement of
works and permanent way,the board were of opinion
that the present moment was not opportune even
for this desirable operation ; and they therefore
could only recommend at present an application to
the Canadian Parliament for a permissive Act to
authorise the plan proposed in the above resolution,
leaving it to the several classes of bond and stock-
holders, after the passing of the,Act, to adopt or re-
ject that plan, as they might then think fit. But,
in the meantime, the board .would explain that, if
the plan be ultimately adopted, it would not only
increase the total amount of preference capital,
although leaving available £480,000 of it, but would,
having regard to the future, add little, if anything,
to the amount of annual interest on such capital.
The interest on the existing equipment bonds
(£50,000 at 6 per cent.) was £30,000 a year ; to this
must be added the amount which, when the Inter-
colonial Railway was in full operation, would be the
annual sum then accruing to the postal and military
bondholders on their capital of £1,200,000. What
that amount would be could, of course, be only
matter of estimate. For 1866-7 it would be about
4 per cent. on the £1,200,000 ; but, although this
year's revenue was to some extent exceptional, there
seemed no reason to doubt the probability at least of
an increase even within the next few years. If the
increase should in (say) five years be only one-
fourth in excess of the income of 1866-7, then the
annual charge would be £60,000 a year; should it
be one-half, then that charge would be £72,000 a
year—that was to say, it would, with the interest on
the present amount of equipment bonds, as above
(£30,000), amount to £102,000, which was just
equal to what would be the interest on the total
amount of equipment bonds as they would exist if
the proposed new plan were adopted. The board
had no hesitation in recommending to their brother
bond and stock holders generally the proposed settle-
ment with the postal bondholders, while to the latter
that plan might also be recommended as giving them
a more marketable security for their money, and
more than the amount of annual income they bad
received on the average of the past five years. As
regarded the return to be expected from the judi-
cious gradual outlay of such portions of the proposed
new capital of £480,000,as might from time to time
be thought expedient, the board referred the pro-
prietors to the report of Mr. Brydges, of the 3d of
April last, and to the explanations given at the last
I.Y.eueral meeting,

BUFFALO AND LANE I.IIIRON.
The half-yearly meeting of this company was held
yesterday at the London Tavern ; Mr. E. Heseltine
in the chair.
Dir. Short, the secretary) liming rod the uotice