The Sun.
London, England, 1866-10-05 00:00:00

GREAT NORTH OF SCOTLAND.

The half-yearly general meeting Of this company
was held on Tuesday, in Aberdeen ; Mr. J. Duncan
in the chair.

The report, an abstract of which has appeared in
The Sun, was taken as read.

The CHAIRMAN, in moving the adoption of the
report, said he had no doubt it would givegreat dis-
couragement to shareholders at large, but it could not
disappoint them more than it had disappointed the
directors. He hoped it was the worst report they
would ever have to present to the shareholders. The
deficiency of revenue had arisen from temporary
causes which he hoped would soon be removed.
There had been three great causes of deficiency ;
first, the partially deficient crop, and then the cattle
disease, both tending materially to diminish their
traffic ; and then there was the state of the money
market, which involved the payment of a much
higher rate of interest on their floating debt. HS
hoped in the course of the next half-year that these
elements, which were quite beyond their power to
control, would not be operative. Had it not been
these they would have been in a position to pay the
preference shareholders the same amounts as before.
Taking the gross revenue of the line, they would
find there was but a very trifling deficiency as com-
pared with the same period of last year, while the
excess of expenditure lay almost entirely upon inte-
rest, as they might naturally expect when they had
had for a time to pay 10 per cent. where the charge
last year upon similar transactions was only 5 per
cent. This, added to the incidental decline upon
such branches of traffic as corn, cattle, and coal,
completely prevented them being able to pay the
preference shareholders as before ; and, in view of
this incubus of high interest upon a large floating
debt, it became a matter for the consideration of
both shareholders and directors how they were best
to improve their position. The recommendation of
the directors was that they should dispose of the
stock held by the company in the Deeside Railway
(now part of their own system), and in the Formar-
tine and Buchan branch. Both were perfectly well
secured, and would yield a very fair return as in-
vestments ; and the result would be to enable the
company to clear off the floating debt in the pro-
portion in which these were taken up, thus saving
the high interest paid to banks. 'The directors
proposed that this stock should be offered first
to the shareholders and then to the public. The
directors had resolved to place their resignations in
the hands of the shareholders, as they felt it was their
duty to do so. They proposed that a meeting should
be held specially a month hence for the election of a
board—the four directors to be elected that day
agreeing to hold office only till then. The formal
resolution to sell the stock named could then be
passed, and in the interim the shareholders would
have time to make up their minds as to the requisite
course of action. He then moved dividends at the
rate of £3 6s. per annum on the first 4i per cent.
preference shares, and £3 13s. per cent. per annum
on the 5 per cent. preference, with deferred dividend
warrants for the balance of dividend to the latter.
Mr. MILNE seconded the resolution.

Dr. KILGOUR asked why the 5 per cent. preference
should have deferred dividend warrants and not
the 4f.
The CHAIRMAN said it was in accordance with
clause 23 of the act, which specially provided that
the 42 per cent. shares should not form a charge on
anything but current revenue, while the 5 per cents.
might become an arrears charge. In reply to another
question, he explained that the debenture holders
on their line were very amply secured. The gross
revenue was £147,000, and, deducting working ex-
penses—£73,ooo—they had £74,000 left, whilethe
debenture interests amounted to only £32,000 in all,
leaving a margin of £42,000.

The resolutions were adopted, and the proceedings
,erminated with a vote of thanks to the chairman.

ST. ANDREW'S.

The 30th half-yearly report of the directors of

this railway shows a revenue of £1,886 16s. 5d., and
an expenditure of £1,029 12s. 7d. The report says:
" It is satisfactory to notice that the revenue has in-
creased £95 9s. ld. beyond what it was at the cor-
responding period of last year. The expenditure on
the maintenance of way, &c., for the half year ending
July, 1865, was £238 12s. ; for this half year it is
£507 17s. Bd., being an increase of £275 ss. Bd.,
which has added to the stability and value of the line.
When the remainder of the heavy rails and new
sleepers are laid down, the expenditure under this
head may be expected to return to its normal state.
The directors recommend that one-half per cent.
should be taken from the dividend reserve fund,
and that a dividend at the rate of 5 per cent. per
annum, less income-tax, be paid to the proprietors.