The Sun.
London, England, 1866-12-20 00:00:00

were unavailable. The :directors, with a view to

meet those liabilities, had prepared a bill to be in-
troduced in the ensuing session of. Parliament giv-
ing the company power to raise a sum not exceed-
ing £1,875,625 upon a special preference stock, and
to attach a dividend not exceeding 5i per cent. a-
year. This stock when paid up would represent a
charge of £103,000 a year, and rank on the reve-
nues of the company immediately after the interest
on loans and dividends on debenture stocks. The
justification for placing £1,875,625 of capital be-
fore existing preferences was to be found in the
exceptional circumstances of the company. When
the whole of the special preference capital was
raised there would be an apparent increase to the
preference charges of £51,500 in the half year. But
the interest paid on bankers' balances, temporary
loans, &c., at present formed a heavy charge against
revenue, ranking prior to the dividends on all the
preference stock. The substitution of the special
preference stock for those debts bearing high rates
of interest, and which in times of financial pressure
. became unmanageable, was under the circumstances
not only a necessary but a fair and beneficial
arrangement for all classes of shareholders, and
would not materially increase the burden upon re-
venue. The special preference stock proposed to be
raised by the bill would be offered to the share-
holders in proportion to their holding in the company.
With reference to the remaining statutory obliga-
tions undertaken by the company, which represented
share capital to the amount of £2,600,628, the
Board might have occasion, if circumstances so de-
termined, to apply to Parliament in a future Session
for power to postpone, vary, or abandon certain of
the works for which such capital would otherwise
be required ; and with regard to such of the unexe-
cuted works of the railway as the company might
hereafter determine to proceed with, it was proposed
to take power in the Ifill to create a lien over their
separate revenues, so as to afford an undoubted se-
curity to the parties subscribing the necessary capital
for their formation. Beyond two deviations of
authorised lines, which would not increase their cost
to the company, no application for new works in the
ensuing Session of Parliament would be made. With
regard to the greater part of the surplus property
of the company, the directors did not recommend
that it be disposed of at present. It consisted prin-
cipally of valuable ground and buildings near the
stations at Edinburgh and Glasgow. The require-
ments of those stations were constantly increasing.
and, from the situation, the value of the property
was always rising, while a considerable revenue was
derived from it. A power, however, was proposed
to be taken to borrow upon the security of the pro-
perty. The Board most earnestly recommended to
all classes of shareholders the proposed measure for
raising the capital necessary to place,the company in
a sound financial position, being assured that until
the debts were liquidated the shareholders would be
subjected to the contingency of deferred dividends
for an indefinite period. The Board had every con-
fidence that by cultivating friendly relations with
neighbouring companies, regulating the train service
in strict accordance with the wants of the districts
served by the company, restricting expenses where
compatible -with efficient working, and refraining
from the promotion of remunerative branch lines, a
.manifest improvement would take place in the pos.
Wu of the company in each successive half-year.