The Sun.
London, England, 1867-10-11 00:00:00

GRAND TRUNK OF CANADA.

The report of the directors of this company states
that the gross receipts upon the whole undertaking,
including the Buffalo and Champlain lines for the
half-year, ending the 30th of June last, amounted
to £609,121, against £637,425 for the corresponding
half of 1866, showing a decrease of £28,304. The
ordinary working expenses, at the rate of 70.53
per cent., amounted to £429,792 for the past half-
year, against £403,419 in the same half of 1866,
showing an increase of £26,373. The renewals of
the permanent ways and works in the half-year
amounted to £54,973, against £26,286 in the same
half of last year, showing an increase of £28,687.
After deducting £10,274 for loss by fires at Sarnia
and Toronto, the available net balance was
£114,082, against £207,720 in the same half of
1866, showing a decrease of £93,638. To the
£114,082 was added £325 from the preceding half-
year, making £114,407, out of which £21,554 (the
loss on American currency) had to be deducted,
leaving a cash balance of £92,853. From this the
postal and military revenue (£18,150) was de-
ducted, leaving £74,702. Against this sum there
had been paid, or was payable, £16,080 for interest
and Portland sinking fund, £6,051 due to the
Champlain Company, £15,424 due to the
Buffalo Company, £32,787 Atlantic and
St. Lawrence lease (in full), £11,250 De-
troit line lease (in full), and £10,779
for equipment bond interest, making together
£92,379, and leaving a debit balance against the
half-year's net revenue of £17,677. As the accounts
were annual, and the gross revenue of the second
half-year had in preceding years averaged 14k per
cent. more than the first half, the balance of £17,677
would be carried forward, and the rents and interest
on the leased lines and equipment bonds would be
paid when due. It would also be observed that but
for the increased charge for renewals of £28,667 as
compared with the corresponding perioJ of 1866,
there would be a balance to the credit of the net re-
venue account of £10,990 ; and, but for the wholly
exceptional debit for losses by fire, this credit balance
would have been increased to £21,769. The traffic
returns for the three weeks ending the 21st of Sep-
tember amounted to £90,815 against £85,177 in the
corresponding three weeks last year, showing an in-
crease of £5,638 or 7 per cent. Considering -the
prolific harvest just secured, both in Canada and the
Western States, there was every reason to believe
that these favourable returns would be maintained.
The exceedingly defective harvest of 1866 through-
out the United States, and also in Canada, had be-
yond question been the chief reason of the smaller
gross earnings of the present year. By the aid of
the financial arrangements reported at the last meet-
ing the directors had been enabled to contract for
delivery in Canada, during the next few months,
of 25 new locomotive engines to meet increase of
traffic. In comparing the result of half-year's work-
ing with the corresponding period of 1866, the fol-
lowing facts were arrived at :-1. The gross traffic
was less by about £28,000. From this sum must,
however, be deducted a lesser share of receipts due
to the postal and military bondholders of £12,000,
leaving about £16,000 as the falling off in the
" through freight" traffic. 2. The working ex-
penses were more by about £26,000. This increase
was due in part to enhanced price of fuel and an
augmented rate of wages, and in part to the dis-
ordered state of the country, and the cost and loss
of time involved in arming and drilling the com-
pany's employe's in support of the Queen's authority.
3. The whole of the renewals were charged to revenue
in accordance with the views of the last half-yearly
meeting. A total length of 55f miles had been
relaid in addition to the ordinary maintenance of
way. This caused a special and extra deduction
from available revenue of £28,000. 4. It would be
seen that the losses already paid in connection with
the serious fires at Toronto and Sarnia had absorbed
£lO,OOO. The claims arising out of those fires were
resisted by the company, and up to a certain point
with success. In connection with the falling off in
this company's gross receipts, nearly the whole of
the American lines showed heavy decreases for the
half year ending June last, as compared with the
same period for 1866 ; ten of the Trunk lines, in-
cluding the Erie, the Michigan Central and South-
ern, the Ohio and Mississippi, the Illinois Central,
and the Chicago and Fort Wayne, showing in the
aggregate a decrease in their gross revenue of
£214,369. The total loss sustained by the company
from 1862 to the 30th June last in American cur-
rency amounted to £311,938. The directors could
not refrain from referring to this serious and un-
foreseen loss as the real origin of most of the recent
difficulties of the company. The price of gold dur-
ing the half year fluctuated between 132 and 140 i.
In accordance with the resolution passed at the spe-
cial meeting on Allay 30 last, a bill had been prepared
for submission to the Canadian Parliament during
the coming session. This bill embodied the several
matters contained in the resolution then almost
unanimously adopted ; but provision was made in it
for the existing equipment mortgage bonds to re-
main in all respects undisturbed, and not to form
part of any new issue of similar bonds, as was at
first proposed. Power was also taken, subject to the
necessary sanction and previous approval of the
bond and stockholders of proposals to be submitted
to them, to consolidate the preference bonds and
stocks by conversion into an uniform preference de-
benture stock, as well as to vary the terms of the
agreement with the Champlain and Buffalo and