The Sun.
London, England, 1867-02-14 00:00:00

NORTH STAFFORDSHIRE.

The half-yearly general meeting of this company
was held yesterday at the London Tavern ; Colonel
Pearson in the chair.

The report, an abstract of which has appeared in
The Sun, was taken as read.
The CHAIRMAN, in moving the adoption of the
report, said it contained the substance of all the di-
rectors had to communicate respecting the affairs of
the past half-year. The accounts were as clear as
could be, and he was only sorry that the result of
the working did not give them a better dividend—
but when he saw the result of other companies' ope-
rations for the past year he thought, under the cir-
cumstances, they ought to be satisfied It might
1)e interesting to mention the progress they had made
in dividends from 1818 to 1865, taking the average
dividend in periods of three years each. The first
ended in 1850, and the average dividend was £1
14s. 10Id. per cent. ; the second ended in 1833, and
averaged £2 2s. 6d. per cent. ; the third ended in
1856, and averaged £2 12s. per cent. ; the fourth
ended in 1859, and averaged £3 10s. per cent. ; the
fifth ended in 1862, and averaged £3 103. per cent. ;
and the sixth ended in 1865, and averaged £1 per
cent. per annum for the three years. During the
last three years they had a very great increase in
the tonnage of minerals and a very small increase of
revenue. They had an increase in the number of
passengers, but a diminution in the receipts per pas-
senger. The increase in the number of passengers
arose from running a number of short trains to
accommodate the local traffic, and, although the
receipts per passenger were less, the total receipts
were £6,000 more. From the figures given in the
report they would see the utter fallacy of calculat-
ing working expenses by the amount of revenue re-
ceived._There was £5,260 charged to revenue for

materials to repair and renew rolling stock, and
£6,370 for the wages of mechanics and labourers
in that department for the past half-year. They
might recollect the first account of the new manager
as to the inadequacy of the rolling stock. Of
68 engines, 46 were reported as unfit for work, and
so were a number of the carriages and waggons.
Out of the 46 engines unfit for work 31 were made
since into goods engines, while the waggons had been
altered and their capacity increased from five tons to
eight tons. Great progress had also been made in
getting the rolling stock into good order. But they
could not have done so much without the facilities
afforded by the new repairing shops. In 1863 an
agitation was got up by some of the shareholders,
which resulted in an alteration of system in some of
the departments beneficial to the company. If the
directors erred in any way, it was on the side of eco-
nomy, for it appeared they " starved" the permanent
way and rolling stock to give dividends to the share-
holders. They paid in dividends what should have
been expended in improving and renewing the per-
manent way and rolling stock ; but he trusted that
would not occur again. The general depression in
the iron trade and the effect of strikes among the
workmen for higher wages and shorter hours of
labour had been injurious to many. Some left the
district for places in Belgium where there was free
trade in labour, and although the wages there were
20 or 30 per cent. less than in this country the
workmen were better off. The manner in which
some working men had acceded to the terms of the
ironmasters by taking 10 per cent. less wages, ow-
ing to the depression of trade, augured well for all
concerned. There had been an increase in the export
of raw iron, and a decrease in manufactured iron.
The decrease in the export of manufactured articles
and machineryranged from 8 to 11 per cent., so that
the question of the value of labour was now of the
greatest importance in manufacturing districts. The
bill the company had before Parliament was not for
raising additional capital, as they would make the
money they had do what they wanted. Negotiations
were pending with the London and North-Western
to induce them and other companies to use the North
Staffordshire line. The outgoings from their district
to other lines were as three toone, and they thought
it right to get some return by inducing companies to
use their line. He then adverted to the debenture
question that had recently been raised, stating that
be believed no company could give better security
in that respect, for they could pay off the whole of
the debenture debt in five years out of the net re-
venue of the company.

Mr. FILDES, M.P., hoped they would never again
have anything done in the way of starving the
permanent way and repair of rolling stock. It
was essential to the success of a railway that both
the permanent way and rolling stock should be
maintained in first-rate condition. Every addi-
tion to the estate of a company should be charged
to capital, but every repair of an estate should be
charged to revenue. The distinction between
charges to revenue and to capital was not carefully
attended to in some of the railway companies. The
expenses of enlarging the waggons from five to
eight tons capacity should have been charged to ca-
pital, as it was an addition to the estate. The prin-
ciple of charging to revenue and capital was very
imperfectly understood.
A long discussion ensued on items of occount, and
as to the management of the business of the com-
pany ; but Mr. Samuda, the secretary, Mr. Smith,
one of the auditors, and the chairman gave what
was considered satisfactory explanations, showing
that the dividend was honestly earned, and that the
accounts were carefully and accurately kept.
Resolutions were passed adopting the report, and
declaring a dividend at the rate of 5 per cent. per
annum on the preference stock, at the rate of 4 per
cent. per annum on the ordinary stock for the past
half-year, payable on Ist March, less income tax.
A vote of thanks to the chairman and directors
terminated the proceedings.