The Sun.
London, England, 1859-12-01 00:00:00

ILW4 Y INTELLIGENCE.

(From the Times' City Article.)
SOUTII•EASTERN AND EAST KENT
COMPANIES.

The following relates to the question of amalga•
mation between the South-Eastern and East Kent
Companies, which it is understood is again to come
under discussion to-morrow. On one side there is
an endeavour to represent that a satisfactory ar-
rangement is certain. On the other.it is alleged
that strong doubts exist. In this state of affairs
the public mutt be cautious not to allow themselves
to be hastily led into speculation :
" Sir,—l, in common with many others, have read with
great satisfaction the announcement which appeared in
your paper of Thursday last, that the South-Eastern and
London, Chatham, and Dover Companies had resolved to
consider the expediency of arranging terms of amalgama-
tion.
" It has since transpired that the progress made at the
meeting to which yeu referred was even more satisfactory
than ,3:ou represented, and that the delegates from the
boards. of both companies agreed that it was desirable for
the interests of the two companies and of the public that an
arranz.ment should be come to.
" No one who has watched the result of reckless compe-
tition during the last few years can dissmt from so reastn
able a proposition. If there were any doubt as to the opi-
nion of the public on the subject, the rise which has taken
place in the stock of both companies upon the mere rumour
of an amalgaMation would at once dispel it.
" Indeed, the probability is that the stock of the South-
Eastern Company would be most benefitted by the arrange-
ment of fair terms with their rivals.
" Last year, I believe, their dividend was .5 per cent.
next year it v ill probably be 6 per cent., yet their shares
are at 20 per cent. liscount. What explanation can be
given of so strange a position of affairs but the dread of
ruinous competition with the London, Chatham, and Dover
Company ?
" Ou the other hand, should an arrangement •be carried
out, the additional traffic derived from tho new district ac-
commodated would'amply repay the purchase money of the
London,. Chatham, and Dover line, which would not after
all much exceed the cost of the proposed Charing-cross ex-
tension, which, by such an arrangement, would be rendered
unnecessary.

44 For these and many other reasons I consider that the
directors of both companies will deserve the thanks both of
their shareholders and the public if they bring those nego-
tiations to a successful issue.
. ,4 There is one feature in these negotiations whichdeaerves

every commendation, and which I trust will be imitated by
all joint-stock companies. I allude to the publicity which
has been given to the proceedings. The old system of con-
cealing the results of all negotiations with the view of en-
abling the directors and their friends to benefit by their
success, to the detriment of the public, cannot be too much
deprecated.
" Looking, however, to the characecr of the noble lord
and hoi. gentlemen who preside over the two companies,
we are not surprised, though we are much gratified, by
their straightforward conduct in this matter.—l remain,
Sir, your obedient servant,
" A LARGE SHAREHOLDER IN BOTH COMPANIES."