The Sun.
London, England, 1867-02-08 00:00:00

GREAT EASTERN,

The directors of this company have just issued
their report. It states that the total receipts for the
half-year ending the 31st of December last were
£996,294, and the working expenses, &c., £512,616,
leaving net traffic £483,678, to which was added
£3,718, the balance from the preceding half-year,
making the total £487,396. From this was de-
ducted £97,774 for rents to other companies,
£143,223 interest on mortgages and debenture
stocks, and £32,150 interest on temporary loans,
together £273,147, leaving a net balance of
£214,249 applicable to the payments of dividends.
This amount would pay in full the dividends on all
the preference stocks of the company for the half-
year, amounting to £183,325, and leave a balance
of £30,924, which, under other circumstances,
would be applicable to the payment of a dividend on
the ordinary stock, but in consequence of the arrears
of preference dividends brought over from the
first half of the past year, and the com-
pany's special acts requiring the whole
year's income to be applied to the pay-
ment of dividends on the preference stocks accord-
ing to their priority, the net revenue would for this
half-year require to be distributed as follows :-1,
To pay the half-year's dividend upon preference
stocks (£4,844,772) entitled to full dividend for the
first half-year—namely, £llB,BlB ; 2, to be applied
in paying the full year's dividend upon preference
stock next in priority (£1,123,600 created under the
Act of 1862)--namely, £56,130 ; 3, to pay a divi-
dend for the year equal to £3 6s. 6d. per cent. on
the stock next in priority (£1,181,895) of Five per
Cent. Stock, created under the Act of 1863)—
namely, £39,298. Having in view arrangements
now in progress, the directors confidently antici-
pated being able to pay those dividends, as also the
deferred warrants issued in September last, on the
4th of April next. The traffic returns showed that
the receipts from passengers had been somewhat
less than for the corresponding period of 1865.
This had arisen as well from the Shepreth and
Ilitchin line (17/ miles) having reverted to the
Great Northern Railway Company, and the open-
ing of the North London City Branch to Broad-
street, as also from the continued unfavourable in-
fluence of the cattle plague, with preference to
market passengers, and the general monetary de-
pression of the country materially affecting the sea-
side traffic. In the abseace of these unfavourable
features the return would have shown a fair increase.
The same causes had undoubtedly affected the
goods and other traffic, but it was satisfactory to find
that this class of traffic showed an increase of £25,163
over the corresponding period of last year, being
equal to an increase of upwards of 5 per cent.
With regard to the working expenses, they are re-
duced from 567 per cent. to 51 per cent., making,
on comparison with the corresponding half of 1865,
a gross reduction of £50,000. The attention of the
directors had been constantly devoted to this sub-
ject ; but it would be readily understood that many
reductions could only be gradually introduced, and
the economical policy on which the board had bee❑
acting had not yet had sufficient time to fully
develope itself. While the directors were thus
able to congratulate the company on the satisfac-
tory progress of their revenue and the enlargement
of the net balance from the reduction of work-
ing expenses, they had to regret that the additional
capital which was necessary for the legitimate dis-
charge of their obligations was not yet raised. The
directors, under the authority of a special general
meeting, proposed the issue of a 61 per cent. stock ;
but in consequence of the smallness of the sum sub-
scribed, the directors thought it fair to give to the
parties subscribing the option of taking back their
money if they preferred to do so. The result had
been that of the sum subscribed for £65,579 re-
mained unrecalled, which the company had appro-
priated toward the completion of the '\Vhitechapel
coal depot, which would be opened for traffic on or
before the Ist of July next, and thus a large in-
crease of revenue would at once accrue. The Board
had anxiously deliberated upon the course which
should be pursued to restore in the public mind that
confidence in the value of the company's property
which the sound character of the undertaking ought
to insure. They were happy to be able to state that
having communicated with Mr. Samuel Laing, M.P.,
late Finance Minister of India, that gentleman had
consented, should the nomination meet with the
approval of the proprietors, to join the direction on
the condition and understanding that he might
restrict his labours principally to the financial affairs
of the company. The Board, however, considered
that if Mr. .Laing was to undertake so onerous and
responsible a duty, the company should show the
appreciation of the exigencies of the position by
voting to him the sum of £5,000. With a view to
obtain a portion of the traffic with the northern and
western districts negotiations had for some time past
been in progress, and the directors trusted at no
distant day to be able to announce a satisfactory
conclusion to their labours. With reference to the
Parliamentary proceedings of the company in the
present Session, the bills they had introduced were
intended to take power to deal with the Metropo-
litan extension as a separate capital, including in
this title the whole of the railways, stations, and
works which the company obtained powers to make
in the years 1864 and 1865 ; to give the pre-
ference shareholders a modified right to vote

at meetings of the company ; and to obtain
power to run the company's steamers from Harwich
to Dunkirk and. Hamburg, and intermediate ports,
in addition to Antwerp, Rotterdam, and Flushing,
to which they were now limited. The company had
deposited with the Registrar of Joint-stock Com-
panics a copy of their half-yearly loan capital, which
showed a surplus borrowing power at Dec. 31, 1866,
of £863,867. The directors could not conclude their
report without adverting to the distrust of railway
investments lately engendered, which bad had the
effect of impeding the placing of debentures as well
as share capital,without reference to the income or
prospects of the company. With regard to the gene-
ral position of the company the directors desired to
express to the shareholders their conviction that with
au united and earnest action upon the part of the
executive and the shareholders the fortunes of this
great and important undertaking would be at length
restored to the position which they ought to occupy.
The directors could conscientiously say that they did
not believe that the undertaking, apart froin its ex-
ceptional financill state, was over in a more sound
or healthy condition than at the present moment.
The capital account showed that £23,018,072 had
been received to 3lst December last, and £24,120,200
expended, including £322,060 during the past half_
year, leaving a balance against the company of
£1,105,128.