The Sun.
London, England, 1867-05-31 00:00:00

GLISGO-W AND SOUTII-WESTERN.

Au extraordinary general meeting of this company
was held. in Glasgow on Wednesday—Sir Andrew
Orr presiding—for the purpose of considering the
bill now before Parliament for amalgamating the
company with the Midland.

The CHAIRMAN stated that the bill had passed

the committee, but had not been reported to the
house, so that the meeting could do nothing but ad-
journ till Tuesday next. lie took the opportunity
to express his regret that some shareholders still
objected to the amalgamation, and hoped that oppo-
sition would cease, as it was the company's interest
to come to a speedy issue in the matter. The direc-
tors had received the report of the accountant
authorised to examine the affairs of the Midland,
and that report showed the English company to be
in a thoroughly sound and correct position—in the
most solvent condition that it was possible to con-
ceive any company to be in-at the present moment.
A motion for adjournment was agreed to.

GRAND TRUNK OF CANADA.

The adjourned half-yearly meeting of this com-
pany was held yesterday at the London Tavern ;
➢lr. E. W. \Vatkin, M.P., in the chair.
Mr. J. M. Grant, the secretary, having read the
notice of adjournment, and also the special report of
the directors, an abstract of which has appeared in
The Sun.

The CHAIMAN said the object of the proposal the
directors made in that report was to increase the net
profit of the undertaking. The plant was insuffi-
cient to develope the traffic on the line. Tie asked
them to keep that point in their minds, and if the
directors were right that with the present stock of
engines, carriages, and waggons they could not
m aerially increase the net traffic of the company,
it would be requisite to devise some plan by which

they could obtain the additional rolling stock and
plant to enable them to increase receipts and to
pay the whole of the interest on all their bonds.

Every one of the bondholders in the company
would be benefited by the increase of the net
profits. The more the net profit was increased the
better it would be for the first, second, third, and
fourth bondholders, and when the profits covered
the dividends on the last, the original stock-

holder might soon expect some dividend. They
had all an interest in the increase of the net profit.
The postal and military bondholders had at present
nothing more than the receipts from those sources
to pay interest on their bonds. He thciught it was
a very unwise position for the concern to be obliged
to assign a part of its revenue to that purpose. It
was taking the receiptsso far out of their hands, and
was a form of payment that ought to be got rid of.
They had endeavoured to reconcile those interests
with others. The postal and military bondholders
had got in the past year about 4 per cent., the in-
crease being caused by the Fenian outrages, which
had been a misfortune to the other interests in the
c)mpany. The usual average interest was 3 per
cent., on those bonds, but by the scheme proposed
the postal and military liolidholda.s would get i 3
12s. per cent., being 128. per cent. more than the
average of preceding years, and as. per cent. less
than they had in the p.►st year. The Equipment
Mortgage Bond clause in the Arrangements Act

limited the amount of these bonds to £500,000, re-
deemable in 15 ye In, with interest at 6 per cent.
per annum, having a first charge over all other pre-
ferences. The money was authorized to be raised
for providing additional siding, rolling stock; eleva-
tors, &c., to develope the traffic. He had to ask
them authorise the directors to go to Parliament for.

Permissive powers to raise additional capital for
those purposes, and towards which they would have
the postal and military revenue, estimated at
£40,000 or £50,000 a year. By giving the postal
and military bondholder 12s. per cent, more than
the average of preceding years, they would get the
postal and military receipts into their own hands.

There could be no doubt that those items of revenue
would increase in amount in .future years, and the
result of the proposal would be that the postal and
military bondholder would get 7-17ths instead of the
whole amount to which he would be entitled under

the present arrangement. The equipment mortgage
bondholder would benefit by that plan on any sum
ranging between the £soo,ooo:and the 11,700,000
proposed to be raised under that head, or he would
be damaged if the net profit did not increase, but
this was contrary to all their experience, and with
_ _

the anticipated increase of net revenue the position
of the equipment mortgage bondholder must be im-
proved in every way to his advantage. The desire
of the first preference holder would be not only to
receive his own interest as soon as possible, but that
the second, third, and fourth bondholders should
also receive their interest, because it would enhance
the security and value of his own stock. The inte-
rest on the present £500,000 equipment mortgage
bonds °mounted to £30,000, and the further amount
of interest when all was paid up as proposed would
require £72,000 more, making £102,000 a year,
which the interest would probably amount to at the
end of five years for the present equipment mort-
gage, the £lBO,OOO to be raised, and the postal and
military bond charge. None of them would then
have any ground of complaint, because it was rea-
sonable to supposs that the traffic receipts by that
time would be greatly increased. Every additional
engine to the ro'ling stock required to dovelope the
traffic would earn nearly twice its cost in gross re-
ceipts in the year. If the engine cost £2,000 the
increase in the gross traffic would be about £4,000,
'leaving about £2,000 net profit. They had 298 en-
gines on the line, and if they calculated twice their
cost, it woal I be about the amount of their earnings
in one year. An additional engine would therefore
earn the whole of its cost in about 15 months, so
that it would be well worth while to gradually and
judiciously increase their rolling stock, as the direct
-effect would be to increase the net profits of the com-
pany. The committee of bondholders who conferred
with the directors on this matter held in the aggre-
gate £4,000,000 of bonds. If any gentleman pre-
sent had a better scheme for adoption, they would
adopt it instead of the directors' scheme..lt was the
interest of all concerned that the interest on every
class of bond should be paid in cash as soon as pos-
sible. If the proprietors thought the scheme a
good one, he asked them to adopt it, and give
the directors their sanction to apply to the Canadian
Parliament for permissive powers to carry it out.
The proposal could not be carried until the act was
obtained, nor until each class separately approved
it by majorities of three-fifths of each represented
at meetings speclally convened for the purpose. He
concluded by moving a resolution to the effect that
powers be applied for in the ensuing session of the
Canadian Parliament to convert the postal and
military bonds, £1,200,000, to equipment mortgage
bonds, at a rate equal to GO pa cent., or £720,000
of equipment mortgage bonds bearing a fixed rate
of interest of 6 per cent., and to raise a further
sum of £480,000 equipment bonds for the purposes
of the company ; the whole issue of those equip-
ment mortgage bonds then being .£1,700,000 payable
first out of the postal and military revenue, and
second, if need be, out of the general net income ;
and that the act be subject to the consent of the
postal and military bondholders, and to a vote of
three-fifths of the bond and stockholders present at
special meetings of each. Also that powers be ap-
plied for to change the name of the company to
" The Canadian Railway Company:"
Mr,l3.suizia, M,P, a director, seconded the ruotiou.

Mr. VILLEBOISNET said that the chairman had
stated nothing to induce them to raise money for
rolling stock. He wanted details as to the amount
of traffic at various stations on the line which they
were now unable to carry without additional rolling
stock. They should be first convinced as to the
amount of additional traffic before they sanctioned
any increase in the rolling stock. He thought
shareholders were now too old to believe everything
they were told. (Laughter.)
Mr. SMITH had a great objection to increase the
amount of the equipment mortgage bonds, or to
unsettle anything while the present nervous excite-
ment prevailed among shareholders in railway com-
panies. He moved an amendment to the effect that
the £1,200,000 of postal and military bonds be not
converted into the £720,000 equipment mortgage
bonds as proposed.
The amendment having been seconded,
Mr. MoxoN said he agrecl with Mr. Smith that

the propusil of the directors would unsettle the
provisions of the Arrangements Act, and therefore
thought the further consideration of the matter
should be postponed until the next half-yearly
meeting.

A long discussion ensued, in which Mr. Ilankey
Mr. Conybeare, Mr. Isherwood, Mr. Tildes, M.P.,
Mr. Newmarsh, Mr. Barrow, Mr. Adams, and
Captain Tyler, took part. Objections were made
to the proposed measure, but no one appeared to
offer a better scheme. It was admitted that it
might be requisite to provide additional rolling
stock and other facilities for developing the traffic,
but it was not considered the right time to increase
the capital. The proposal for changing the name
of the company was 'objected to by several pro-

prietors.
The CHAIRMAN, in reply to observations, said
that 30 of the largest stock and bondholders had
agreed to the proposal in conference with the di-
rectors. In the past five years the traffic had in-
creased 47? per cent.—viz., from £17,000 a week
to £26,000 a week, and, after the most careful
consideration by competent persons acquainted
with Canadian traffic, it was thought probable
that in the course of the next five years the gross
traffic receipts would increase to an average of
£32,000 a week ; but this could not be attained
without a considerable addition to the rolling stock
and other facilities. He had asked Captain Tyler
to accompany him to Canada next autumn, and
would be glad to have his opinion on the state of
the line and other matters to which the gallant
captain had referred at the last ordinary meeting of
the company.
The amendment of Mr. Smith was negatived,
and the original motion was carried, it being un-
derstood'that tie proposed change in the name of
the company would not be carried out, and that
opportunities would be given to the postal and
military bondholders, and to the first preference
bondholders, ti see the proposed bill before send-
ing it to Canada.

Captain TYLER was unanimously requested by
the meeting to accompany the Chairman to Canada,
as proposed, to inspect the line, and the proceedings
terminate 1 with a vote of thanks to the chairman.

CALOLTTA AID SOUTII-EASTERN (LIMITED).

The ordinary general meeting of this company
was held yesterday at the office, Gresham-house,
Old Broad-stre,t ; Mr. J. Borradaile in the chair.
The report, in abstract of which has appeared in
The Sun, was taken as read.

The CHAIRMAN, in movlng the adoption of the
report, said he was sorry to say it contained a great
deal of the oil story of not being able to meet
their working expenses out of the traffic. The
receipts had gradually declined as he told them at
the last meeting he feared they would, so that for
the last half-year there had been a deficiency in the
receipts of £1,430. They had during that time to
depend chiefly on their local traffic. The loss of
part of the jetty by the landslip had been greatly
magnifiel, so that ships were diverted from .going to
the Mutlah under the belief that the company had
no landing place at Canning Town. They had,
however, a landing-place there, by which they could
land any pine° of good or machinery wc;ghing not
more than three tons at a But the accident
had so far affected their through traffic that he con-
sidered lie hail told them the worst. They had made
arrangements with local parties to lay down a short
line of rails, by which . they expected to get ad-
ditionartraoc. in addition to the loss of shipping,
the building operations that were being carried on
last year had ceased. The question as to who were
to keep the foreshore iu order had been decided, and
he hoped in fittire that the Canning Company and
the railway company would work for the promotion
of their mutual interests. The Canning Company
had to pay a dividend upon their expenditure out
of rents.
Th., tramways and jetties would be con-
nected with the railway. A large rice-cleaning
mill had been erected in the midst of the rice
district, and he trusted there would soon be an im-
provement in their receipts.
Mr. MARSMIAN seconded the motion for the
adoption of the report.

A SHAREHOLDER thought the working expenses
might be conskbrably reduced, and although they
had run a less number of train miles the in.tioten-
ance of the permanent way had risen from £45 in
1865 to £5O per mile in 1866 ; the cost of locomo-
tive power hac risen from £7 to £BO per mile, so
that with less work they had paid more money for
working. llc hoped the directors would look into
that matter.

The CIIAItMAN said the cost of fuel had in-
creased, the repairs to carriages and engines were
more extensise, and with the extra renewal of
sleepers the expenses amounted to more than for
the corresponding half of 1865. The deficiency of
£2,430 in the traffic receipts to cover expenses in
the past half-year would have to be paid out of
future profits. lie could assure them that the ex-
penditure was closely watched by the Government
officials.

Resolutions were passed adopting the report and
re-electing the retiring directors and auditors.

MADRAS.

The traffic receipts on the South-west line of this
company for the quarter ending the 31st of March
last amounted to £92,439, against £91,392 for the
corresponding three months of last year. On the
North-west line the receipts for the quarter were
£21,109, against .£45,786, on 153 miles and 119
miles open respectively. The receipts on both lines
have hem £113,518, against £107,178, showing an
increase of £6,370 on the quarter, with an increase
of 34 miles in the length of line worked over o'i the
North-west line.