The Sun.
London, England, 1858-09-15 00:00:00

THE SUN, LONDON,

RAILWAY INTELLIGENCE.

GEELONG AND MELBOURNE.

A meeting of English shareholders in this com-
pany was held yesterday at the office of Messrs.
Goodwin and Co. ,Lan caster-place, Waterloo-bridge,
to consider the report and accounts of the directors,
and to determine on some course of co-operation with
the directors for the furtherance of their common
interests—Mr. Alderman Salomons in the chair.

The CHAIRMAN stated that it was by the desire
of the committee of shareholders that he had taken
the chair on that occasion. Before they entered on
the business of the day he thought it as well to al-
lude to the position of the company. In 1853 a line
from Geelong to Melbourne was projected for the
purpose of increasing facilities to the harbour of
Port Philip, and it was from that line that all others
to the interior were to emanate. When the line was
about to be constructed the Melbourne and Mount
Alexander Railway was projected, and it was ar-
ranged that the Geelong and Melbourne Railway
should be made from Geelong to Williamstown, and
that the Melbourne and Mount Alexander Company
should make the portion of the line between Mel-
bourne and Williamstown. This was done with a
view to economise labour and capital, and it was not
an uncommon thing for a railway company to make
one portion of a line and another company to make
another portion. The Melbourne and Mount Alex-
ander Company, however, were unable to fulfil their
engagements, and the line fell into the hands of the
Government. The line from Geelong to Williams-
town was completed last year, but Government had
not yet finished the line from Williamstown to Mel-
bourne as the representatives of the Mount Alexan-
der Company. It was still in an incomplete state,
but it was stated that the line from Melbourne to
Williamstown would be completed in Nov. next ;
but the directors of their company said it would not
be ready for openinguntil next year. It was in con-
sequence of the connecting line, seven miles in
length, from Williamstown to Melbourne, not being
completed by the Government that their difficulties
had originated. If that had been completed the
communication would have been continuous between
Melbourne and Geelong instead of being broken off
at Williamstown, where there was no convenience
for goods traffic, and consequently the revenue of
the line had fallen considerably short of what it
would have been had the remaining portion of the
line been completed to Melbourne. Under these
circumstances the receipts did not do much more
than pay the working expenses. It was true the
Government had guaranteed them 5 per cent. per
annum on their share capital for a certain number
of years, so that on entering into the undertaking
they felt sure that if they were not rewarded with
the large traffic between Melbourne and Geelong,
at all events they-would have been safe in having
5 per cent. on their capital. Owing to the delay
and slackness on the part of the Government in
completing their portion of the line the net traffic
was not sufficient to pay the interest on the borrowed
money. Negotiations with Government had been
entered into by the directors in Novi or Dec. last,
for the sale and transfer of the line, and they had
been so far brought to a successful issue • but the
arrangement had never been completely d;aughted,
but was agreed to as far as an understanding could
have settled it. When they had arrived at that
point the Government was changed, and the illness
of one of the principal men had tended still further
to delay a final settlement with the authorities. In
the meantime- the debts of the company had in-
creased and brought the' directors into some diffi-
culty. They could not allow less time than five
months for sending out their consent to the terms
and the acceptance of them by. the Government.
They had stated that they were inclined to sell
theirinterest in the railway to the Government of
Victoria for six per cent. debentures at par, and he
thought it a very moderate sum, the Government
assuming the other liabilities of the company. That
was the arrangement with the late Government.
The question was, what course was best to pursue
—whether to renew negotiations, to try some new
scheme, or to wait and see the issue of the under-
taking. He had read all the correspondence that
had taken place between the directors and the Go-
vernment, and he thought some of the objections
taken by the new Government were reasonable to
men of business. A demand by the directors of
£50,000 for loss of traffic from the non-completion
of the line to Melbourne was looked upon as an
addition to the terms agreed upon in December
last, and required some explanation. He had seen
nothing in the documents on the part of the Go-
vernment that any one could find fault with except
thoir trying to run a hard bargain with the com-
pany. There was nothing that could be construed
as affecting the honour of the Victoria Government.
He thought that some of their objections were fair
and could be met; but until they knew what the
Government would do they could not do more at
present than express their opinions on what had
been done. The committee had acted in accordance
with the desire of the shareholders, and had helped
Mr. Cooke in carrying out their views. He (the
chairman) had written to gentlemen in the colony
connected with the Government, with a view to

forward a settlement of their aft:airs and prevent
unnecessary haggling. He had the fullest con-
fidence in the Government of Victoria, and
when they saw that the line was offered to
them at prime cost he was quite sure they would
agree to the terms. The committee had drawn
up some resolutions, which he would -submit for
the approval of the shareholders ; they had been
agreed to by Mr. Potter and himself, and, he be-
lieved, by other members of the committee. He
then read two very long resolutions for the ap-
proval of the meeting. The first expressed every
desire on the part of the English shareholders to
acknoWledge the efforts of their fellow-shareholders
upon the colonial registrar, and to co-operate with
them in restoring the undertaking to a condition
of prosperity ; and stated that it would be impos-
sible to obtain from the general body of the share-
holders a pro rata subscription of additional capital
without a legal and satisfactory guarantee, inas-
much as the existing capital was taken up for trust
purposes on the faith of the Government guarantee.
The second resolution related to the tetins offered
for the sale and transfer of the land.

After some observations, the first resolution was
carried unanimously.

Mr. DYNE proposed the second resolution, which
related to the sale of the line for 6 per cent:deben-
ture bonds, having 26 years to run, in lieu of the
scrip which was guaranteed 5 per cent. by the
Government. It explained that since the terms
had been announced shares had been sold and
bought on the faith of the Victoria Government
carrying out the arrangement with the company as
agreed upon between the directors and the members
of the late Government.

Mr. CHILDERS, a member of the late Government,
at the request of the chairman, entered into some
explanations with reference to the sale of the line
to the Government, and in doing so showed that
the directors in the colony had not taken proper
measures to satisfy the new Government as to their
power and authority to treat with them for the sale
and transfer of the hne. Resolutions had been passed
at meetings in Melbourne, but were not confirmed at
subsequent meetings. A demand for £50,000 had been
made as damages to the traffic on account of the
line to Melbourne not being opened for traffic, and
also an additional claim of £20,000 had been made
on the Government. On all those occasions the
Government were not allowed sufficient time to
reply to the directors, and it was necessary to have
more than three days to consider an important
question.
_lie thought the directors had not con-
ducted the matter as men of busiiies-s Svould aid it
were op ph
said
as
uie
dsde
tfthuo
le t3,i alesermrea
muchtoiof
nt hh the lobligediiinade.
was well known in the colony that one 'or two
nf
given
them, MrT.hCehCillldeArisßflio:l-il
them, having but recently arrived from the colony.
The Government had a right to complain that they
had not received thu assent of the English share-
holders. With regard to some observations that
had been made as to the advantage of exchanging
their 5 per cent. guarantee for Victoria Govern-
ment debentures of 5 per cent. having 25 years to
run, it was right to mention that the lines to the
interior recently contracted for by the Government
were to cost from £30,000 to £40,000 a mile, while
the Geelong and Melbourne line, with liabilities to
the Ist January last, would not exceed £20,000 s-
mile, besidt6 having a large quantity of unoccupied
land near the line and Station of Geelong, which
would become very Yaliable. They *ere giving
bfoorneds,when completed to Melbourne, for
upn per
aelinr
eeetnhta.,t would probably produce from 10 to
there-
fore, to peron the cent.s dTehoef a
tdhl
The second resolution, subject to. some paodifica-
ale
GitoaNg-ee;naPmPeenatr.ed'
tions, was then carried, unanimously.
A discussion then ensued on a proposal by the
directors at the late meeting in Melbourne to appro-
priate the interest guaranteed to the shareholders
by the Government to the payment of the interest
due on the bonds of the company. It was shown
that the directors had no power to appropriate the
guaranteed interest' of 5 per cent. to that purpose,
and a resolution was passed on the part of the
English shareholders protesting against such an
appropriation of their rights.
The committee was re-appointed, and Mr. Cooke,
the company's agent in England, was requested to
co-operate with the committee. After other formal
resolutions, a vote of thanks to Mr. Alderman
Salomons for presiding concluded the proceedings.

NEWTON AND MORETON.
A meeting of the committee, appointed at a re-
cent public meeting, was held last Friday, when
subscription lists were handed in showing that-the
application* had been liberally responded to. The