The Sun.
London, England, 1866-08-29 00:00:00

the legislation of 1866 ; mutual acquiescence in the
postponement, abandonment, or modification of
statutory powers already obtained by either ; ap-
portionment of competitive traffic and adjustment
of rates and fares by agreement or arbitration. All
sources of strife between the Caledonian and North
British were capable of extinction on those prin-
ciples. During the past half-year no new works
had been commenced ; of those in progress, the
Galashiels and Peeblesßailways, and the Dunferm-
lin and Charleston branch were completed, and
notice had been given to the Board of Trade for in-
spection of the Blane Valley Railway previous to
opening it for public traffic. The works 'still in
hand were nine in number, and the total cost of
them would be £117,544, and the date of comple-
tion of the whole nine months hence. The imme-
diate prosecution of those was indispensable. with
one exception. The addition to rolling stock had
been extensive, but necessary; and further addi-
tions must be made to keep pace with the require-
ments of the traffic. Notwithstanding the high
price of money, the directors felt that they would
not be justified in stinting the expenditure on the
full maintenance of rolling stock and permanent
way. Since the last half-yearly report in March
there had been added to the stock-28 engines, 26
tenders, 30 first-class carriages, 51 third-class car-
riages, 54 composite carriages, 1,736 goods and
mineral waggons, 29 passenger luggage vans, 14
carriage trucks, nine goods guards vans, and two
powder vans, of the total value of £247,498. With
regard to raising a portion of the 5 per cent. pre-
ference stock of £1,614,810 authorised by the
meeting of the company on the 12th of October,
1865, the directors had resolved to issue such por-
tion of the preference stock as might be required on
the following terms :—lt was intended not to make
calls on the 1865 preference shares for three
years, but to issue such amount of that stock as
should be required for the purposes of the company,
the rate of interest in the interval, until the calls
were resumed, being regulated according to the state
of the money-market. On this principle £BOO,OOO
would be offered to those shareholders who should
apply for it on or before the 18th of September, the
rate of interest allowed being 5 per cent. on £2 per
share of deposit, and 8 per cent. on the balance of
£8 per share uncalled from the date of application
till the 18th of September, 1869, and the same rate
thereafter on such amount as should be from time
to time uncalled. The extra cost to the company
during the three first years would have been £19,200
per annum, as compared with the dividend guaran-
teed to the preference stock, diminishing to nothing
gradually in the last 14 months ; but the excess of
cost was trifling compared to the rectification of the
capital balance-sheet, and in periods of monetary
derangement like the present the excess was abso-
lutely nominal, in consequence of the high rate of
interest charged on over-drawn accounts. The
directors earnestly invited the shareholders' co-ope-
ration in carrying the proposed measure into effect.
The directors had not the slightest doubt that, so
far from injuring the position of the unguaranteed
shareholders, the step now taken would enhance
the value of their property, and by enabling the direc-
tors to make the necessary additions to plant, and,
as circumstances.suggested, to execute those works,
whereby the revenue would be augmented, the
dividends on ordinary stock would also improve.
The amount already subscribed was £178,120, and
the amount paid up £109,425, and the additional
issue of £BOO,OOO would still leave £636,690 in
reserve, either to meet the expenditure on works
authorised previously to the session of 1866,
or if some of these should be abandoned,
then on those works for which statutory
powers had been obtained in this year—the aggre-
gate capital for which was nearly the amount of the
balance of the stock thus reserved. The directors
had no present intention of creating any further
new stock.