The Sun.
London, England, 1866-02-24 00:00:00

LONDON AND NORTH-WESTERN.
The half-yearly general meeting of this company
was held yesterday at the Euston Station ; Mr. R.
Moon, the chairman, presided.
Mr. S. Reay, the secretary, having read the
minutes of the last half-yearly and subsequent
special meetings, which were confirmed, the report
of the directors, which has appeared in The Sun,
was taken as read.
The CHAIRMAN said 113 had only a few remarks
to make. He believed that the only unsatisfactory
item was in the receipts for goods traffic, as com-
pared with the corresponding half of last year. The
increase in the goods traffic was £BO,OOO, earned by
an increase in the expenses of £20,000, which arose
to some extent from additional handling. The
great expense was chiefly in the cattle traffic, from
the Government restrictions placed on it. They
had a number of stations that were recognised, and
they had made several alterations and improvements.
The carriage buildings, for the purpose of construc-
tion and repairs, were not yet completed at Wolver-
ton, so that they could not exactly say what the re-
newals came to, but a sufficient sum had been re-
served out of revenue for the purpose of covering
that charge. He hoped that the accounts were satis-
factory, and that things would continue to improve,
but he thought it prudent to keep the dividend at 7
per cent. Some large shareholders, however, were
most unwilling to restrict it to any particular sum,
and the directors had acted in compliance with that
wish. Their dividend in 1861 was 34 to 4.1 per
cent., and it rose to 6 per cent. in 1865. That
was a very rapid rise for only four years. (Hear,
hear.) They would find that the Midland divi-
dend had also risen considerably, and the North-
Eastern from 4/ per cent. to 61 per cent. He
was glad to see the property improving, notwith-
standing that they had some drawbacks. The com-
pany had increased its receipts since 1861 to the ex-
tent of £840,000, which was earned by an increase
of £254,000 in the expenses. They had increased
the mileage by 244 miles, and they had received out
of an increased receipt of £605,000, after paying
£155,000 for increased expenses, a net sum of
£450,000, the whole of which went into the pockets
of the shareholders. That was a great increase in
so short a time, and he hoped it would continue ;
but there was a limit to economy. They had earned
this increase while their rates and fares were going
against them. Now, if they could keep the rates
up to remunerate them it would be all very well ;
but while they were carrying at reduced rates, the
prices of labour and materials had increased, and
so had also the price of money. They would be
glad to improve at that rate till their affairs were
more consolidated, and to pause at 7 per cent. for
the present. To gain this they had expended addi-
tional capital of £3,288,000, and had carried
£840,000 of additional traffic. Their working
stock was now better than ever it was. When
he told them that the locomotive expenses had
been reduced from 10.82 d. per mile to 9.86 d.
in the northern division, and in the southern
division to 7.82 d. per mile, while the cost of coal
and iron had advanced they would consider it satis-
factory. The cost of the locomotive power and
maintenance of the permanent way had increased
very little, somewhere about £20,000 during the
past half year. They had reduced the old renewal
fund from £61,000 to £49,000, and of that £B,OOO
had been reduced in the half year. They had almost
renewed the permanent way on 244 miles, including
the St. Helen's, Chester and Holyhead, and Lan-
caster and Carlisle Railways. These renewals had
increased their expenditure for permanent way.
He believed they bad now reached the limit of
economy, and hoped to keep things to that point.
There were proprietors, however, who supposed
that, as they had attained 7i per cent. dividend,
they were on the road to 10 per cent., and from 10
to 15 per cent. He hoped, however, that the Board
would be enabled to maintain the dividends at from
6to 7 per cent. With reference to the capital ac-
count, it had been increased by £3,500,000 in four
years. They had had to extend their lines, sidings,
and stations for the development of new dis-
tricts, and for the increase of traffic. They had
refurnished their line to accommodate the traffic,
and out of the £3,500,000 they had expended
£900,000 in carrying stock. They did not hold out
a limit to the capital account, but at the same time,
in protecting the company's property they would
endeavour as much as possible to limit additional
expenditure and make it pay a dividedd on the out-
lay. If they were to increase their dividend they
must go forward, and not backward. • He hoped
they felt satisfied with the dividend, and he con-
cluded by moving the adoption of the report and
statement of accounts.
Mr. BROWN-WESTHEAD, deputy-chairman, se-
conded the motion.
The CHAIRMAN said he had forgotten to state
that 52 miles in length of steel rails had been laid
on the line, 32 miles at the expense of capital, and
20 miles at the expense of revenue. (Hear, hear.)
Dr. O'BRIEN asked some questions respecting the
octuple treaty.
The CHAIRMAN said they could not go into that
question, as it was before the law courts. The pre-
sent suit must run its length. He, for one, would be
glad to see it settled equitably for all parties. The
agreement had been made years ago, and they had
now to ask whether it was legal or illegal. There
were 297 railway bills in Parliament affecting their
interests, and they were obliged to employ all the
talent they could to defend the company's property.
some of the promoters asked for power to use the
company's stations and railways, and others to take
away their traffic. They had no wish to expend
capital in law expenses, but they were anxious to
make the company's position safe.
Mr. WRIGLEY expressed his approval of the im-
proved position of the railway, but did not agree
with the chairman respecting the dividend, and
trusted it would go on increasing. He then stated
how it was that the dividend of the company had
become reduced, and the cause of its being increased
again to its present amount. In the year 1862 only
24 per cent. of the traffic receipts was available for
dividend, but in 1865 they had 31 per cent. of the
traffic receipts available for division among the
shareholders. There were great resources to deve-
lope, and he hoped the directors would look forward
to a gradual increase of dividend.

The CHAIRMAN said there was a great deal due to
the exertions of Mr. Wrigley and others, and he
hoped their affairs would progress.
The report of the directors and statement of ac-
counts were then unanimously adopted.
The dividend of £3 12s. 6d. per cent. for the half-
year on the ordinary stock of the company was de-
clared. The directors were authorised to expend
£549,838 in providing additional rolling stock and
additional station accommodation at numerous places
on the company's lines, and to place £3,553 to capi-
tal account expended in improving the permanent
way during the half-year.
The CHAIRMAN said the next business was the
election of directors. He had been a director for

15 years and chairman of the company for five years,
and he was glad to see them restored to prosperity.
The practice had been for the directors to ballot
out two directors every year for the shareholder to
elect two new directors. This, he thought, had not
been attended with the success he could wish, be-
cause the shareholders did not exhibit a disposition
to elect the best men they could find, but merely
sent proxies to any one who applied for them. In
sonic cases they sent proxies because a candidate was
a Whig, and others because he was a Conservative,
but seldom because he was the best man of business
they could find. He suggested that the subject of
choosing new directors should be taken into conside-
ration in August next, with a view to select the best
men. At one time they had only four towns to re-
present on the Board, but now they had relations
with Scotland, Ireland, and the continent, and it
was necessary the company should be represented
as well in other places as in Liverpool, Manchester,
Chester, Huddersfield, Leeds, South Staffordshire,
the colliery district, Worcestershire, and Leaming-
ton. They wanted directors in North Wales, in
Scotland, in Leicester, in Burton, and other places.
He suggested that as they had an audit committee
which worked well, why should they not have a
directors' committee to select the best business men
for new directors ?
Mr. TAYLOR said he thought it most desirable to