The Sun.
London, England, 1867-03-16 00:00:00

roui time to time, as the half-yearly statements o:

accounts showed the item of loans from bankers.
They had lodged with the bankers collateral secu
ritics and transfers of stocks or shares. The interes
on the loans from the bankers fluctuated with the
current rate of interest, which had been sometimes
very heavy. The directors thought that if they could
create a pre-preference stock at a fixed rate of 4f
per cent., it would be far better for the company
than having to pay the fluctuating current rates that
had been so onerous for several months past. The
difference between the latter and the proposed fixed
rate of interest would be an actual advantage to
the preference shareholders, particularly to the 5 per
cent., the A 4f per cent., and the B4f per cent. pre-
ference holders, as they would receive the benefit of
any saving on the amount of interest now paid to
the bankers. The money had been borrowed for the
construction of works; they bad raised £105,000
for the Denburn junction line on the 'faith of the
powers in that act, in which there was a clause by
which receivers could be appointed not only on the
Denburn junction line, but also om that of the Great
North of Scotland line, which would override the
preference shares. When that act was passed they
did not think it would have been so difficult to raise
the capital. They hoped to make the 4f per cent. pre-
preference stock as marketable as the debentures,
because it would rank next to them. By
amalgamat-
ing the Banffshire Railway with their undertaking
and taking over their debt of £45,000, the company
would be released from an obligation to subscribe
£ill7nse,sooinOleflolgr
taht.i auTthheorreise:.l,e extensionno of
of .stshoant. line
12
the Banffshire line
over the debt ofpaiy4
Ton it, and the
earned enough to ould
rtloeoion,teasrest
shares would rani: with the Great
es hev had carried
IsTB aoiri
tf fhs loaf LI
Scotland
r
y over that line from orßduckie recently
240 tons of fish
inary sh .
all the way to London. They had beld.meetings of
shareholders in Glasgow and Liverpool this week,
and after the explanations he had given*them as to
the necessity and advantage of the measure, they
agreed to it as the best means for relieving the com-
pany from its difficulties. The traffic had suffered
from bad weather, and he thought everything was
now down to zero. If they could pay off the loans
from bankers by means of the proposed measure, it
would give them a fair start, and with better wea-
ther and increased traffic he trusted they would go
on improving. He concluded by moTiug a formal
resolution to the effect that the meeting, having
heard the explanations of the chairman, recom-
mended that.the amount of pre-preference stock be
limited to £330,000, instead of £370,000, as men-
tioned in the bill now before Parliament.
Mr. DAVIDSON had petitioned against the bill, and
thought the bankers should be satisfied with a 4 per
cent. pre-preference stock for the debt, instead of
4f per cent. pre-preference.
On the motion of Mr. IVATso, seconded by Mr.
JAM.ESON, it was recommended that the £330,000 of
pre-preference stock should bear interest not ex-
ceeding 4 per cent. per annum, as the best means of
relieving the company of its difficulties.
The proceedings concluded with 4 vote of thanks
to the chairmau,