The Sun.
London, England, 1867-11-14 00:00:00

jp•••••
RAILWAY AND OTHER COMPANIES.

BUFFALO AND LAKE HUF,ON.
The half-yearly meeting of this company was
held yesterday at the City Terminus Hotel, Cannon-

street—Mr. E. lleseltine in the chair.

Mr. T. Short, the secretary, having read the no-
tice convening the meeting, the report was taken as

The CHAIRMAN said that the reports of the two
companies circulated among the proprietors showed
how matters stood. lie had to express his regret to

the bondholders that the whole of the last half year's
interest had not been paid. The chairman of the
Grand Trunk Company had given his opinion that

the Buffalo Company were not entitled to draw
money on account, and that made them behindhand

.. •
with the bondholders. He allowed them, however,

to draw £5,000 in August, and £5,000 more last
month, and they would ask him to allow them to
draw the remainder, which he hoped would enable
them to give something to the preference share-
holders. There were three reasons that prevented

the Grand Trunk paying the amount they expected,
viz., the high rate of working expenses, the heavy
amount expended on renewals, and the loss on the
currency. This not only reduced the amount of net
receipts for the past half year, but it was usually the
worst half for receipts. The large amount expended

on renewals showed that the Grand Trunk Company

were very liberal iu laying out money, and they
were informed that the property was improved
thereby. When the time came for a lower expendi-
ture they might fairly look for an improvement in

the traffic. One of the drawbacks to development
of the traffic was the abrogation of the reciprocal

treaty, which had not only affected the traffic on the
railway, but had caused a great outcry among the
traders in America as well as in Canada, which he
thought would have some effect if the American
Government were to renew the reciprocity treaty
with Canada ; it would be of mutual advantage to
both countries, and also tend to improve the traffic
on the railway. There were differences between
them and the Grand Trunk as to certain charges in
the accounts, and it was very difficult to get meet-

ings of the joint committee to settle them. He hcped
they would be able to get those differences settled.
One point had reference to the expenses of the
London offices. 'The Buffalo Company thought

they were entitled to have the expenses of their
London offices allowed them as part of the general

expenses ; otherwise they had a right to object to
contribute their part towards the expenses of the
London offices of the Grand Trunk Company ; but
it was alleged that the Buffalo offices did not form
part of the working expenses of the Grand Trunk
Company. That matter would, however, have to be
gone into again. If the offices of the Grand Trunk
Company in Old Broad-street formed part of the
working expenses in Canada, so also were the
Buffalo Company's offices in Winchester-buildings,
and therefore the expenses of both ought to come
out of the same fund. The new bill promoted by the
Grand Trunk Company had been objected to by

the shareholders of that company, and iu conse
quence the chief portion of the bill had been
withdrawn. But as far as he could judge there was
a clause in the bill that he thought should be agreed
to by both companies ; but nothing would be done
in that respect,without the assent of the bondholders
and the shareholders. The object of the clause re-
ferred to was to enable both companies to settle any
differences that might crop up in a proper manner,
and for that purpose the existing agreement to a
certain extent should be amended so as to make it
work better. They had been called upon to fulfil a
clause in the agreement with the Grand Trunk
Company, which required the Buffalo Company to
subscribe £75,000 for the Buffalo-bridge and the
laying down of a third rail, but the Grank Trunk
were not in a position to make new railway
works, and as the large outlay of capital had
been the ruin of several railways, he hoped the
matter would not be entertained for some time
to come, or until the position of both com-
panies was greatly improved. He thought it very
important that the present large expenditure should
be greatly reduced, and when that was accom-
plished he believed there would be a future for the
Grand Trunk that would sooner or later reward
all the shareholders for their patience in waiting
so long for its realisation. The revenue of the
Grand Trunk Railway exceeded 1,250,000 a year,
and he did not suppose they would go on year after
year expending 85 per cent. of the gross receipts,
leaving only 15 per cent. of the gross receipts as
profit. It was not reasonable to suppose that those
heavy expenses would be continued, that the traffic
would not greatly increase, or that there would not
be a reduction in the price of gold.
Mr. A. Cox, a director, seconded the motion for
the adoption of the report.
Mr. Motor said they had a right to complain of
the Grand Trunk Company not paying them earlier
their portion of the net receipts. The Buffalo and
Lake Huron claim came before the Equipment
Mortgage Bonds, yet the latter were paid on the day
when due, while the Buffalo Company had not yet
received all the money they were entitled to. As to
the permissive bill, he did not like it, and thought
at least they should have a copy of it before they
were asked to consider it.
Mr. WRIGHT suggested that the company should
receive monthly payments on account from the
Grand Trunk.
Mr. KING was opposed to having any clause in
the new bill giving power to modify or alter the
existing agreement between them and the Grand
Trunk Company, on the ground that the larger
company would be certain to get the advantage of
the smaller one.
Mr. PRICE suggested that the directors should
take a more decided course in dealing with the
Grand Trunk Company, to bring about a speedy
settlement of differences.
The CHAIRMAN, in reply, stated that they were
not very harmonious at present, and the less said
about them the better. As to the observations of
Mr. Moxon, the Buffalo Company had nothing to
do with the capital of the Grand Trunk, nor the
latter with the capital of the Buffalo. The Grand
Trunk could pay interest on the Equipmentßonds
whenever they pleased. Until the net profit was
ascertained the Buffalo Company were not entitled
to receive the 15 per cent. of it. The agreement with
the Grand Trunk was made on the 7th July, 18G4,
and the object of the clause in the new bill was to
enable the two companies to vary some of the terms
by mutual consent during the continuance of the
agreement. There was a power in that agreement
to purchase the Buffalo shares at £ll each. It might
be convenient to the Grand Trunk Company to
exercise that power, and thus do away with the
double government of the two companies. The
agreement was for 21 years, of which about 18 years
were unexpired. The act by which the agreement
was sanctioned did not give sufficient power to
compel the settlement of disputed points between
the two companies. There were various matters now
pending that ought to have been settled, and it was
with that view they had provisionally consented to
clauses in the Permissive Bill. Ile thought they
were entitled to have monthly payments on account,
as suggested by Mr. Wright.
Mr. lIARTRIDGE thought that instead of having
only lo per per cent. of the gross receipts as profit,
the Grand Trunk ought to have 40 per cent. as
profit. Ile believed that the extraordinary expen-
diture must be reduced, as it was only of advantage
to speculators. (Hear.)
The CHAIRMAN said it was under the impression
that the working expenses of the Grand Trunk
would be about GO per cent. of the gross receipts
that the Buffalo Company had entered into the
agreement. He did not see why 85 per cent. should
be absorbed, and as the Great Western Railway of
Canada was now worked for 50 per cent. of the
gross receipts he thought it was not too much to
expect that the Grand Trunk Railway should be
worked for about GO per cent. of the receipts. They
had received £5,000 from the Grand Trunk in
August, which was due to the bankers and repaid
to them. In October they received a further sum
of £a,ooo, which they handed over to the bond-
holders' committee.
Mr. Cox remarked that when they got the balance
it would be available. Mr. Watkin, the president,
had told them that the Grand Trunk Company need