The Sun.
London, England, 1867-08-12 00:00:00

GREAT EASTERN.
The report of the directors of this company states
that the total receipts for the half year ending the
30th of June last were £872,213, and the working
expenses £479,279, leaving the net traffic £392,934,
to which was added £3, the balance from last ac-
count, making £392,937. From this was deducted
£96,977 for rents to other companies, £148,282 for
interest on mortgages and debenture stocks ; and
£12,882 for interest on temporary loans, making
together a total deduction of £258,141, leaving a
net balance of £104,796, which was sufficient for
the dividends on all the preference stocks of the
company created prior to the amalgamation, and
£2 15s. per cent. per annum on £1,122,600, created
under the act of 1832, leaving the stocks subEe-
quently created unprovided for. The passenger re-
ceipts were less by £16,634 than for the correspond-
ing half of 1866. 'This was attributed in part to
he distress which had prevailed with so much seve-
ity in the eastern districts of the metropolis in the
winter and spring of the year, which was still felt,
and in part also to those -causes which had affected
railways generally. The goods receipts were less
by £11,788 than for the same period of 1866. The
grain traffic had also suffered from the scarcity of
last year's crops. In regard to working expenses,
the amount expended on permanent way was less
by £18,421 than for the same period in 1866 ; the
maintenance of the line, however, had been care-
fully attended to, and more materials had been used
than in the same period of 1866. In the locomotive
department there was a reduction of £6,201, not-
withstanding a large increase in the cost of the
coal and coke used ; at the same time, the re-
pairs and renewals effected had been more exten-
sive than for the corresponding period. The
steamboat service might be considered more satis-
factory ; the increase in the tonnage of goods
carried by the company's route was considerable,
and bad not the foreign cattle traffic fallen off so
seriously through the riuderpest the returns from
this branch of the service would have shown a very
material increase. The directors had succeeded in
obtaining powers to run their boats to the ports of
Harlingen and Geestemunde. This would enable
the cattle traffic to be renewed, notwithstanding the
continuance of the plague in South Holland. The
item for compensation for personal injury was un-
usually large. On this head a number of claims
arising in prior half-years had been ascertained and
arranged during this half-year, including one of
nearly £6,000 awarded in au action for damages on
account of injuries sustained in the year 1865.
The arrears on this head were now entirely dis-
posed of. The directors had been requested to in-
vite the co-operation of Mr. Laing, M.P., and in
February last he joined the direction for the pur-
pose of attending to the finance of the undertaking.
Mr. Laing was unfortunately unable to do more
than float a portion of the debenture capital on the
plan of, providing a sinking fund of a half per cent.
for the redemption of the debenture in 52 years.
When the issue of debenture stock, on the basis
suggested by Mr. Laing, proved to be only partially
successful, it was deemed advisable to solicit an in-
terview with the largest holders of ordinary and
preference stock. This took place on the 26th of
March last, at which a committee was appointed to
confer with the directors as to the best course to be
pursued. The committee and the directors met
frequently, and the preference holders most hand-
somely proposed to take debenture stock in lieu of
cash for their dividends for four years. This would
have raised about £1,500,000. An application was
made to Parliament to raise £1,500,000 of deben-
ture stock to take rank after the existing debentures
and debenture stock of the company. This Bill
was rejected by the Select Committee of the House
of Commons. The directors had reason to believe
that one of the causes of the rejection of this Bill
was the fact that the committee considered the
amount sought to be raised was not large enough
to relieve the company from its difficul-
tio. The failure of this Bill increased the hesita-
and, cons.quently,• when, on the Ist of July,
£BO,OOO of the ordinary debentures became due the
holders would not renew them. The company,
having no means of providing capital to take them
tip, one of the debenture holders applied to the
Court of Chancery for a receiver of the tolls of the
line, which the Court granted on the 2d of July ;
but the Court authorised the receiver to pay the
interest on the company's debentures as it became
due. Under those circumstances the directors con-
vened a meeting of the whole body of the preference
proprietors, which was held on the 3d of July last.
At this meeting resolutions were adopted authorising
a further application to Parliament for the raising
of three millions of debenture stock upon terms of
awarding a greater control over the affairs of the
company to the preference proprietors. The bill
was accordingly recommitted, and it had now passed
both Houses of Parliament and awaited the Royal
assent. The £3,000,000 authorised to be created
by this Act would be sufficient to relieve the com-
pany from its difficulties. The debts to be paid
were to be proved in the Court of Chancery under
the provisions of the Act. The stock could not be
raised by the company without the sanction of
three-fourths in value of the two classes of prefer-
ence stocks, guaranteed and unguaranteed, at sepa-
rate meetings convened specially for the purpose ;
but as the refusal of such consent would not prevent
the payment of the £3,000,000 in priority to all
preference dividends, but leave the preference holder
without dividends for some years, the Board felt
satisfied this consent would be given. Although at
first sight it might appear that the charge in respect
of the new debenture stock, amounting to £165,000
a year, including the redemption fund, would be
an additional burden on the undertaking, the case
was not so, for in point of fact interest upon the
company's debts had been already represented in
the accounts by temporary loans, which, at the
rate of interest paid thereon, would represent
nearly a million of the amount now authorised
to be raised. If the Metropolitan Extensions be
made a separate undertaking, under the pro-
visions contained in the Companies Additional
Powers Act of the present session, but a small pro-
portion only of the new capital would become an
additional chorge against the general undertaking.
The bill gave stringent powers to the preference
shareholders with regard to any further capital ex-
penditure, and provided that when the ordinary
stock received 3 per cent. per annum, the preference
proprietors were to possess larger powers of voting
than those accorded to them by the Additional
Powers Act of the present Session. Although the
revenue of the company was payable to the Court
of Chancery, the directors succeeded in obtaining
the appointment of the company's own officers as
receivers in the suit, thus obviating the payment of
the usual 5 per cent. commission. The directors
had taken the necessary steps to protect the pro-
perty of the company from any undue preference on
the part of creditors ; no interference could, there-
fore, take place in the working of the line. The
debenture interest would continue to be regularly
paid under the-decree of the Court, as well as the
rents of all leased lines. The capital account
showed that £24,431,514 had been expended, in-
cluding about- £2,000,000 for new lines and sub-
scriptions to them, leaving a balance of £1,043,059
against the company.

NORTH-EASTERN.

The report of the directors of this company states
that the gross traffic receipts for the half -year end-
ing the 30th of June last on 1,229 miles of railway
amounted to £1,81)0,437, and fur the corresponding
half of 1866 on 1,2201 miles to £1,790,279, showing
an increase of £10,158. The working expenses,
taxes, &c., amount to £872,923, and for the corre-
sponding half 0f'1866 to £855,749, showing an in-
crease of £17,174, leaving the net receipts £927,514
against £934,530 for the same half of 1866, show-
ing a decrease of £7,016. After providing for the
interest on the debenture debt, for the rents of
leased lines, and for the dividends on all Owns of
preference stock and shares, there remained the
following balances to the credit of the revenue
account of the different sections :—On the
Berwick account, £203,270 ; on the York
"mutt £71,096; on the leede account, £18,083;

on the Carlisle account £42,552 ; and on the Dar-
lington account £71,868. Out of these balances
the directors recommended a dividend on the Ber-
wick ordinary stock at the rate of 5 per cent. per
annum, leaving £2,551 ; on the York ordinary stock
at the rate of 41 per cent. per annum, leaving
£2,669 ; on the Leeds ordinary stock at the rate of
2- per cent. per annum, leaving £653 ; on the Car-
lisle ordinary stock at the rate of 6i per cent. per
annum, leaving £1,488 ; on the Darlington ordinary
stock at the rate of 71 per cent. per annum, leaving
£235 ; and on the Thirsk and Malton stock at the
rate of 4 per cent. per annum, leaving £l6. While
the trade of the country had not been in a satisfac-
tory condition, this company had been specially
affected during the past half-year by a strike of
their engine-drivers, and also by an increase in the
price paid for coal and coke, consequent on the
termination of contracts a year ago. Having regard
to those circumstances, and that revenue had as
usual been charged with interest on the whole
capital expenditure, the directors considered that
the resultstf the half-year's working might be re-
garded with satisfaction. Of the £500,000 new 5
per cent. preference stock created in March last
£461,020 had been issued to this date. The direc-
tors had not found it necessary to promote any bill
in the present session of Parliament, and, without
appearing before any Parliamentary committee,
they had been able to arrange for the protection of
the company's interests as far as they were likely to
be affected by measures introduced by other com-
panies. The directors had no hesitation in assuring
the shareholdecs that the accounts in the various
departments were kept in a satisfactory manner,
and that an efficient system of audit was adopted.
Referring to the late strike on the part of a large
majority of the company's engine-drivers and fire-
men, the directors informed the shareholders that
very valuable and important assistance was ren-
dered during the strike by many persons largely
connected with the manufacturing and mining in-
terests of the district, and they deemed it right to
record their sense of the zeal and ability displayed
by the company's officers and servants on the occa-
sion, by which the directors were enabled to con-
duct the traffic with comparatively little inconve-
nience to the public, and speedily to overcome all
the difficulties in which they were placed. The
capital account showed that £38,973,102 had been
received, and £39,023,507 expended, leaving a ba-
lance against the account of £50,405.