The Sun.
London, England, 1866-09-26 00:00:00

TENDRING HUNDRED EXTENSIONS.

The selection of line from Wivenhoe to Kirby
Cross (within three miles of Walton) was opened
for passengers on the 28th of July last, but it was

then too late to secure the main traffic of the sea-
son. The revenue, however, was very satisfactory,
the gross number of passengers conveyed during
the 13 weeks ended September 2 being 20,762, of
which 4,414 were conveyed in June, 5,899 in July,
and 10,449 in August, the latter being due to
visitors to and from the sea-side. Notwithstanding
the three miles of road intervening between Kirby
Cross and Walton the influx of passengers had
been frequently beyond the means of conveyance.
The arrangements for passengers by ordinary
trains between the metropolis, Colchester, and
Kirby Cross and Walton had been liberal ; but
the impossibility of providing road conveyance for
very large numbers had prevented any special en-
couragement to visitors, but long before the next
season the line would be opened throughout with
improved service. The earnings, after deducting
50 per cent. for working expenses, were largely in
excess of the interest payable on the debenture and
mortgage capital. It would be advantageous both
to the Great Eastern and to this company to offer
liberal arrangements to persons erecting houses at
Walton, for which there would be great demand. The
railway between Kirkby Cross and Walton and the
terminus were considerably advanced, and the direc-
tors hoped to see the line opened throughout in the
course of next month. The capital account to Aug.
31 showed that £100,511 had been expended, leav-
ing a balance of £1,406.

BUENOS AYRES GREAT SOUTHERN (LIMITED).
The committee of investigation appointed at the
general meeting of shareholders held on the 29th ult.
have issued their report. It states that the directors
and officers of the company afforded the committee
every facility and the fullest explanations upon all
points of the company's business. After the most
careful inquiry the committee found the books to
have been kept with faithfulness and accuracy. The
£2,500 special shares of £2O each, subscribed for and
Peto,
taken by the contractors for the railway, Sir S. M.
the corn and Mr. E. L. Betts, were issued by
Parq, to be entitled to dividend as follows :
—" The amount available for dividend in any year
(after setting apart the amount, if any, appropriated
for the reserve fund
dividend
)isto be applied-1. In or to-
wardsper cent. per an-
numo o
n tpaymentheo ordinary
on fa
ra yshares
of f
the 7
company. 2. In
or towards the repayment to the Government of any
advances previously made by them under their gua-
rantee. 3. In or towards payment of dividend upon
such special shares to the extent of 7 per t
cen per
annum. 4. As to any surplus, in payment of further
dividend pari passu upon all shares, whether ordi-
nary or special. The special shares shall nevertheless
be entitled to receive interest during the construction
of the line in the same manner as the other shares,
and, except as above mentioned, shall be in all re-
spects on the same footing as the other shares."

As to the construction of the railway, the com-
mittee reported that from the statements of Mr. Pa-
rish and the engineers, it appears to them that (sub-
ject to question as to rolling stock) the contractors
had completed the construction of the railway and
works in a very solid and satisfactory manner, and
according to their contract. The line had been
accepted by the Government for the purpose of
the guarantee, subject to a requisition for two addi-
tional locomotives. Under the the terms of the con-
tract with Messrs. Peto and Betts, they were bound
to place upon the line sufficient rolling stock to earn
a net minimum dividend of 10 per cent. upon
£750,000, the total capital of the company. Whether
the rolling stock already placed there was sufficient
for
this purpose was to be decided by Mr. George
Parker G e
Parker Bidder, C.E., who was appointed arbitrator
fr rme
ou
under the terms of the contract. The contractors
weo
laddateto
omf
aacincetpaitnantche. the woTrhkesreflas
ovrsiax
q it" twos
nt
itohns
thyet remaining unadjusted with respect to the amount
to be paid to them for station accommodation pro-
vided beyond the terms of the contract. The com-
mittee bad considered the question of station
accom-

'odation for goods, and thought that it might be-
come advisable before long to erect a wool shed
either at the Buenos Ayres terminus or Barracas.
Ur. Rumball, previous to the appointment of the
txfmmittee, had already prepared plans, drawings,
artd estimates for this purpose. It was stated at
e general meeting that the contractors had not
banded over the title-deeds for the lands purchased.
rhe committee found that this was only prevented
by some legal proceedings taken against them by
Tsfr. Green. The company were, it appeared to the
committee, sufficiently secured by the precautions
that had been taken, and the local board at Buenos
Ayres would, no doubt, take the necessary steps to
bring the matter to a satisfactory issue. The com-
mittee fully agreed with the feelings expressed at the
last twogeneral meetings by the directors and share-
holders, that the line having been constructed, and the
duties of the London Board thereby much dimi-
nished, the time had come for reducing the expenses
of the London administration to the lowest level
consistent with proper management. They had
communicated with the directors on the subject,
who had shown their readiness to meet the question
fairly. The directors were prepared to propose the
reduction of their number to five or six, and their
remuneration to £l,OOO per annum. This appeared
to the committee satisfactory. The other expenses
of the London office did not seem to admit of reduc-
tion. After a very careful consideration the commit-
tee had come to the conclusion that it would not be
prudent at present to make any alteration in the
Local Board. They felt bound to express their high
opinion of the valuable services the company had
received from Mr. Parish. The committee thought
highly of the ability, energy, and fitness of Mr.
Banfield, the general manager. The Government
having accepted the line would, under their guaran-
tee, be bound to make good any deficiency in the
revenue to pay £7 per cent. dividend on £700,000
in December next. But, taking into consideration
that the payment of an interm dividend, as originally
proposed by the directors, could not be effected at
the present moment without borrowing, and that the
company already had outstanding loans to a con-
siderable amount, as stated in the balance-sheet, the
committee recommended that the payment of a divi-
dend should be deferred until the completion of the
fiscal year, when the Government guarantee would
become payable. It appeared to the committee that
the conduct of the Government towards the company
had been entirely honourable, and gave every reason
to believe that the company would receive at their
hands a punctual performance of all their obligations.
With regard to the issue of debentures and closing
of the capital account it was shown by the balance-
sheet that of the company's debentures there had
been placed £22,750, and deposited.as collateral se-
curity £96,2oo—total, £118,950. The amount owing
upon the collateral deposit was only £80,582 ; the
total amount, therefore, owing by the company
was only £103,332. The articles of association of the
company did not impose any limitation upon the di-
rectors' power of borrowing upon debentures, but it
was satisfactory to find that they had exercised
the power with moderation. The committee, how-
ever, thought that the construction havingbeen com-
pleted, the time had arrived when it was possible to
define and limit the amount to be issued, a measure
which would give the directors additional facilities
for getting the remainder of those already issued
taken by the public. The committee, therefore, re-
commended that the necessary alterations be made
in the articles of association to render the consent
of the shareholders necessary to any further issue o
debentures. The committee trusted that the im

proved condition of the money market will enable
the directors to place the remaining debentufes. The
investigation they had made satisfied them of the
soundness of the security. As to the probable re-
sults of the future working of the line, however
satisfactory it might be to have the Government

guarantee of 7 per cent., that .was not a return
with which the shareholders should rest contented.
The returns up to the present time were of too ex-

perimental a nature to afford any sufficient basis for
calculation on this subject. But the opinion of Mr.
Parish and the engineers was in favour of a large
increase in traffic. Already villages were beginning
to spring up at various points in its course where
there were previously mere wastes. At Chascomus,
the southern terminus of the line, 72 miles from
Buenos Ayres, building had been stimulated, and
the population along the line were beginning to un-
derstand the facilities which the_railway presented
to them. The duty of striving to make the dividend

:o the shareholders larger than that to be derived

from the Government guarantee, imposed upon all
concerned the obligation of the greatest economy
consistent with efficient administration—an obliga-
tion which the committee trusted would be most
rigidly observed, both here and at Buenos Ayres.
The report was signed by 11. Wheeler, chairman ;
H. P. Bowring, A. Buckley, S. Ilerapath, and T.
Moson, members of the committee.