The Sun.
London, England, 1867-05-22 00:00:00

- -1

RAILWAY INTELLIGENCE.

EAST LONDON.

Mr. Hawes, the chairman of the company, has
addressed a circular letter to the proprietors, in-
forming them that the Crystal Palace and High
Level Junction Railway is not likely to receive the
necessary support unless the shareholders of the
East London Railway Company subscribe towards
it. The capital required is £153,000—/80,000 for
works and £64,000 for land—to be raised in 15,300
shares of £lO each. Mr..llawes points out that one
share of /10 for every five of £2O in the E-ist Lon-
don Company would insure the completion of the
line by the time the East London will be ready to
receive the traffic arising from it. It is stated that
a very large traffic from the east and north of the
metropolis to the Crystal Palace, and the populous
and daily improving districts of Dulwich, Norwood,
Sydeuiliam, &c , would thus be secured ; and if from
any cause the full development of the traffic to be
derived from the authorised junctions with the
southern railway should be retarded, this short line
would give ability during that interval to maintain
an independent and advantageous position. Mr.
Hawes concludes by stating, " It is only my strong
conviction of the necessity of this line to our com-
pany, the smallness of the capits.l required to secure
to us the advantages it offers, the very special posi-
tion in which we stand in relation to the other com-
panies, and the regret Ithiuk we shall all feel should
it not be constructed that would have induced me
to press this subject upon your attention."

OTTOMAN (SMYRNA TO AIDIN).
The adjourned general meeting of this company
was held yesterday, at the Albion Hotel, Alders-
gate-street ; Sir Macdonald Stephenson in the chair.
Mr. Cooke, the scretary, having read the notice
of adjournment,
The CHAIRMAN said that, before proceeding with
the business of the meeting, he thought it desirable
to state that there was not one single remark in the
report of the committee of investigation which could
not be fully and concltuively explained.
Mr. S. TEuLos, the chairm in of the committee,
said he supposed the report would be taken by the
meting as real. (Hear.) He wished to occupy
the time of the meeting as little as possible, particu-
larly as it was important not to throw any difficul-
ties in the way of the company. It was the difficul-
ties of the company which led to the committee
being appointed to go into the inquiry, and it ap-
peared that the shareholders were not likely to re-
ceive interest for some time to come. He reminded
his brother shareholders and bondholders that their
position, as stated in the report, was a matter of
fact ; they were all bound by the concession to the
Sultan's Government, and neither directors nor
bondholders could travel out of it. A power had
been given to issue £250,000 of debentures, instead
of shares, of the company, which the directors had
put aside to replace the debentures with other
capital when they were paid off. The failure of the
• company to raise the capital as originally proposed
and to complete the works bad led to the Turkish
Government granting the company three conces-
sions. In the second concession, as he understood
it, the £250,000 bonds were issued in accordance
with the rights of the shareholders. Under that
concession £304,000 in debentures were reserved to
provide for the payment of the £250,000 bonds
when they became due at the end of five years ; so
that the directors had, so far, taken
‘good care of
the bondholders. From the most careful considera-
tion he could give to the subject, he believed that
the bondholders could not seize the line ; they were
entitled to a certain amount of interest, but it was
not possible for them to take possession of the pro-
perty of the company to satisfy their claim. The
directors had no power to grant to the bondholders
what they were not entitled to. Under the conces-
sions the shareholders had power to present a re-
monstrace to the Government in case they were
dealt with unjustly ; but he believed that the only
course to benefit the company was for all of them
to pull together, bondholders and shareholders.
(Hear, hear.) One interest must not take an
unfair advantage of the other. The debenture-
holders could not claim more. than 6 per cent.
interest on their bonds, but it was perfectly
clear that their position was a good one. The
suggestions of the committee in the report were to
the effect that=the expenses of the home management
should be at once reduced ; that a strict investiga-
tion be made into all claims against the company,
that no further payment be made to the contractor
until that was done; that a competent person should
be sent out to Turkey to report on the best mode of
developing the traffic ; that it was the duty of the
company and its managers to co-operate with the
Imperial Ottoman Government for the maintenance
and conduct of the undertaking ; to provide for the
legal and equitable interests of the shareholders and
bondholders; and that a permanent representative
should. be appointed for Turkey at such remunera-
tion as would enable him to devote his whole time
to the interests of the company. He concluded by
moving that the report of the committee of investi-
gation into the affairs of the company be received
and adopted, and that the report be referred do the
council of administration to carry it out.
Mr. BROWN seconded the motion.
The CHAIRMAN said he would make a few obser-
vations on that proposition. There was not any part
of the report of the committee which could not be
readily answered. The board considered it unneces-
sary to offer any apologies or excuse for the course
they had uniformly pursued, which had resulted in
the successful accomplishment of the work under-
taken, and the fulfilment of all their engagements
with the Ottoman Government. They felt that they
had, by extraordinary exertions, saved the corn-
tany's property from all the risks incidental to an
unfinished undertaking , that they had obtained the
recognition of the Government that the guarantee
of £112,000 a year was due from the Ist July last,
to continue to the end of the term of 40 years ; and
the directors entertained a reasonable confidence
that their negotiations, so inopportunely interrupted,
would have .eventually obtained from the Govern-
ment the securities asked for under which the punc-
tual payment of the guarantee could be relied upon.
He was prepared to reply to any points on
which further information might be required ;
and having referred to the principal remarks in
the report of the committee, and strongly objected
to the language used in some parts of it, he stated
that they had now all the materials to enable them
to draw their own conclusions, whether by receiving
the committee's report to stultify all the directors'
endeavours to place the cnnpany in its proper posi-
tion, and to open a wide field for litigation, which
would, at least, prevent any payments whatever
being✓ made by the Government, or to disapprove
the unauthorised correspondence with the Ottoman
Government of those gentlemen who would endea-
vour to explain and justify it, by reference to the
results of the inquiry of the committee. It was his
duty to warn them in time that they would see no
end to the litigation which would undoubtedly arise
if they decided to receive the committee's report.
A low, discussion ensued, in which Messrs. H.
Clarke, Smith, Limber, Billings, Fardell, and Morris
took part, in the course of which Mr. Morris ex-
plained that the position of the debenture-holders'
claims for payment of interest and principal was
very different from that stated in the report of the
committee. Ile thought itverystrange that the coin-
' mittee of invcitigation had never thought proper to
consult the two committees of bondholders in the
company on the subject mentioned in the report. If
they hal done so they would have found that there
was nothing in reality•to fall out About. Ile ven-
tured td way that three business men representing
the interests of shareholders and bondholders would
in the course of h.di an hoar settle the wholques-
_ tion. The company was bound to pay its debts, and
to his mind it would not be difficult for committees
of the three classes to meet, discuss the matter, and
agree on some equitable, fair, and just arrangement
among themselves to settle the whole matters in dis-
pute. (Wlear.)
The CHAIRMAN moved an amendment to the effect
that the report of the committee be received, but
not adopted, and that the committee be dissolved.
Mr. A. DEVAUX seconded the amendment, and it

was carried.

A poll was detnanded, when it appeared that the