The Sun.
London, England, 1858-08-13 00:00:00

EASTERN COUNTIES.

The half-yearly report of the directors of this company
says :—" The period has arrived when your directors have to
submit for your consideration the result of this undertaking
for the half-year ending 30th June, 1858, which shows a
receipt of £645,516, against £654,675 in the corresponding
half-year. The expenditure was £295,639, against £300,098.
The general depression in trade has exercised a con-
siderable influence on the receipts of all railway com-
panies for the half-year ending 30th June, 1858, and the
receipts of this company have, although in a lesser-de-
gree than most of the larger companies, been affected by it.
Another cause has operated to diminish this company's re-
venue during the past half-year, viz.—the competition
which has existed between several of the.railwav companies
laving termini in the metropolis and some of them having
junctions with your line at Peterborough, the effect of which
has been a reduction of the rates fir traffic generally, which
has in some degree reduced the receipts on yourline. Upon
the whole the reduction has been smaller, as compared with
the receipts of the same period in 1857, than might have
been anticipated, and- you will find on comparing the
respective periods that the decrease as regards the Eastern
Counties lines amounts only to the stain of £6,519 19s. ld.
It is to be regretted, from the causes above enumerated, as
well as from local causes, that the traffic of the East Ang-
lian Company's lines has suffered to some extent, although
the same means have been used by this company to develop
that traffic as has been adopted on their own lines. Con-
currently a ith the decrease of the receipts, your directors
have much satisfaction in being able to state that the work-
ing expenses for the half-year nave been reduced to nearly
an equal extent, viz. :—by the sum of £4,458 6s. 91., leaving
the result, as regards net revenue, about the same as if no
diminution of receipts had occurred. The stability of rail-
way property is affected by the manner in which the capital
of a company is dealt with. If additions be made to it,
except for purposes of increasing the revenue, future years
have to bear a burden in the charge of increased interest,
which must diminish the sum applicable for dividend.
Yeur directors have the satisfaction of pointing out
that in the present half-year the addition is scarcely of
sufficient importance to mention. The whole amount
is only £5,316 4s. 61, and of this £2,878 2s. 4d. was
aethorised in the report made the 31st December, 1857,
for new works at Brick-lane and shops at Bishopsgate
station. By that outlay a considerable yearly rental
will be ob:ained. The whole addition exclusive of that sum,
is only £2,438 2s. 2d., and that for works of a remunerative
character, and Parliamentary expenses. There are occa-
sions when directors should not hesitate to make an addition
to capital, if for objects which partake of the nature of first
cost, and for the purpose of carryiug on a new undertaking.
The time has now arrived when some provision should be
made for plant for the Woodford and Loughton line, and to
meet the requirements of additional mileage now being
worked by this company. Since the 22d August, 1856, the
general plant of the company has been used for this purpose,
and as 14 miles of extra ground have to be worked over for
the Woodford traffic alone, by reason of a considerable num-
ber of trains running from Penchurch-street as well as
Bishopsgate, 60 additional carriages will he required, and this
number your directors propose to order in the current half-
year, with your approval. The observations which apply to
carriages apply also to locomotives, and it will require six
engines to supply the wants for new lines in that respect,
the cost of which will be charged to the capital account.
These are all the additions which your directors calculate
will for the present require to be made, except for six more
shops about to be erected in front of the Bishopsgate sta-
tion, which will yield a large per centage on the amount
expended. That will not be the only advantage; but the
alterations will greatly improve the entrarce, remove the
objections made by passengers, and render the station more
easy of access. The result cf the undertaking as regards
the Eastern Counties Company for the last half-year is as
fdlows

Gross receipts due to the Eastern Counties £513,366 17 11
Expenses

£217;72710 2

Less interest on guarantees and 10an5.... 141,417 10 0

Balance 76,310 0 2
Add sum carried over after paying December
dividend 7,256 3 1

83,566 3 3

Deduct on account of deferred permanent way
account B,OOO 0 0

Leaving £75,566 3 3
available for dividend, and as, in the opinion of your direc-
tors, every charge has been brought against the revenue
account, which properly belongs to it, they have declared a
dividend of £1 3s. 9d. per ceuturn for the half-year, on the
consolidated stock of tt:e company, which is after the rate of
£2 7s. 6d. per centntn for the year. The sum
amounts to £69,274 2s. 6J. ; and will leave a balance to
he carried over of £6,202 Os. 9d. to the succeeding half-year.
Your directors understand that the woik3 on the East Suf-

folle Company's lines are progressing to completion, but
the time of the opening for traffic has not yet been intimat-
ed to this company. On the 16th May last, the line
from Halesworih to Haddiscoe, worked under agreement
by this company, which cemprises about 13 miles of the main
line of the East Suffolk Company, was closed for the purpose
of relaying the permanent way with heavier rails. The work-
ing agreement with this company is still under negotiation
as to details. So soon as these have been agreed to, a special
meeting of the ix oerietore will be called for its ratification.
Considerable tutention has been paid by your directors
during the past half-hear to keeping the permanent way in
a state of the utmost efficiency. This has been done at a
cost of £52,730 2s. 9d., being after the rate of £2.33 12s. per
mile per annum cf üble line, all charged to revenue.
They have much satisfaction in stating that all the prin-
cipal works which required it have now been renewed.
The rolling stock is in a very satisfactory condition. The
whole of the expenses during the half-year have been
charged to revenue, as mere particularly referred to
in tee report of the locomotive superintendent. The
balance at the debit of this account was, at the Ist of
January last, £77,760 19s. sd. Since that date the
sum of £BO4 10e. has been added, being the balance ex-
pended on the name' of the bridge over the Lea river na-
vigation at Tottenham, the previous expenditure in respect
of that bridge having been charged to the deferred perma-
nent way renewal account. Your directors, in pursuance
of the course recommended to and approved by the pro-
prietors for the extinction of
_this debt, have, out of the
general revenue account for the half-year to the 30th
June, appropriated thereto a sum of £B,OOO, and the balance,
at the debit of the account, is now reduced to £70,655 Os. sd.
There is a small addition to the miscellaneous stock, but
not of sufficient importance to require especial notice. The
amount of stores in the permanent way and locomotive
departments has increased; but that has arisen intentionally,
by reason of purchases somewhat more extensive than usual
having been made by the directors, as prices in the early
part of the year offered a favourable opportunity, and four
thousand tons of rails were bought, which are now
in course of consumption ; besides a considerable
quantity of timber for use in the permanent way,
as well as for plant in the locomotive department.
Your directors had at the date of their last report every
reason to expect that the differences as to certain items of
account subsequent to Jan. 1, 1854, bad been agreed to by
the Norfolk Company. Such however is not the case, and
that company now raises objections which your directors
considered had been settled. The Eastern Union Company
have adopted legal proceedings to bring their differences of
account to an issue. This course your directors regret, as
they consider no persons so qualiAed as the parties them-
selves to settle any differences in regard to the accounts,
and they think that the proper course should have been to
have referred the question at issue to arbitration, in the first
instance. It is very satisfactory to, your directors to state
that. the bills referred to in the last half-year's report,
viz.: let. The abandonment of the Newmarket and
Cheeterford Railway, being a part of the Newmarket
Railway, and 2d. The abandonment of the Galleons Reach
Extension, have received the sanction of Parliament. The
object sought for has been gained, and your directors feel
assured it will be attended with much pecuniary advantage
to the company. The London, Harwich, and Rotterdam
service has not been resumed in the present year, as was
anticipated. Some gentlemen who were interested in the
steamer which was running last year attempted to form a
company,. and invited your directors to assist them in that
undertaking. Your directors, however, felt it would be
better to leave such application of capital to privateenter-
prise, and declined to do so. At the same time they
every assurance that all reasonable facilities would be offered
in the event of any boats being placed on that line of route.
The Barking extension cf the London, Tilbury, and South-
end Railway was opened for trnfvte on the lot April last. By
this extension a portion of the traffic of the London, Tilbury,
and Southend Railway passes via Bromley and Plaistow,
instead of over this company's line via Stratford, the receipts
bring, recounted for as though such traffic passed over the
Eastern Counties line es heretofore. The Hertford and
NVelvvyn Junction line was opened for traffic on the Ist
‘
larch last, and this company has, in conjunction with the
Great Northern Rail way Company, supplied rolling stock
for the working of the traffic. In accordance with the re-
sclutiene passed at the meeting made special for that pur-
pose, yeur ilrectors sal eertlsed to receive money in conver-
sion of the debenture debt. They have received the sum of
£34,165, and bonds to that amount have been extin-
guished, and a four per cent. preference sock has been
issued in lieu thereof. The financial conditien of the com-
pany is such that at present your directors have no occasion
for any large sum in respect of this stock. And when they may
require it for the purpose of conversion, they expect to have
no difficulty in being enabled to issue as much asimay be
needed for this purpose. The usual examination of the
register for the half-year ending 30th June last has been
made by a person unconnec'ed with the company. The
stock ledgers have been carefully checked ; each transfer
hes also been examined and checked • and the register is
found to agree with the amount of thei several stocks as
authorised to be raised by the company. The dividend
e.ccount has likewise undergone an examination, and is also
found correct. Your directors cannot close this report
witloait adverting to the fact tbat,,althoueli there has been
a small diminution in the receipts, there has been ag e9`
lent reduction in the working expenses, and that the result
cannot be otherwiee than satisfactory to the proprieiti?ves, as
the
the amount proposed to be paid for dividend •
can- e h, that ear of 1857.
pal,l in the eurrespcmling hat
The foo ureb'e eeiel:tien of e.nnpany revs lime 'ells
cxvevi ore ,)t; c131,a1 5007001 i another f a'ure which