The Sun.
London, England, 1866-11-30 00:00:00

fore them, unless for their benefit and with their
consent. If they had allowed his friend Mr. Hilliard
to be heard against the adverse resolution at the
meeting on Monday, lie would have explained the
whole matter to them, but unfortunately the meet-
ing was not disposed to hear him, or any explanation
from the directors. That was the reason why the
directors first called a meeting of the debenture
holders to consult with them, and explain the neces-
sity and advantages of some such measure to be
submitted to Parliament, and to get their assent.
The first thing the new Board had to consider was
the claims of creditors, and as to how they could
best develope the resources of the railway. 'They
found on coming into office that its revenue was
being administered by the Court of Chancery. As
to capital there was not a farthing available for the
completion of the works that were of paramount im-
portance in developing the traffic. They had to
deal with claims of creditors and a great variety of
interests. They bad in the first place debenture
holders and a very large debt due for land. There
were lawsuits against the company to establish a
lien on the land and works, and if carried out the
consequences would have been as disastrous to the
deLen lure holders as to any other class. There were
creditors with open accounts, common fund owners,
the 'Western Extension rent charge, and claims of
leased lines on the general undertaking. Then there
was the Victoria Improvement undertaking and the
Eastern Section. He mentioned these various
classes, not in the order of priority, because that
would have tobe determined by competent authority,
but to show the number of interests they had to con-
sider. 'The object was to get the concern out of its
difficulties. Those who had the first claims were not
disposed to help the company as those having in-
ferior claims. • The directors were anxious to deal
fairly with the various classes, and to treat them all
fairly alike. Their scheme was to improve the po-
sition of all parties, to meet the claims on the com-
pany, and to raise the funds for that purpose. The
gradual increase of traffic was estimated to give
them £1,063,000 in the year 1872. They would
have an increase in the latter year, under the head
nd
w ere
of continental traffic, of £120,000. Those
esti-
mates were not exaggerated in any way,
founded on past experience of traffic. They would
be thus able to clear off the whole of their liabilities.
He then gave the items included in the £1,500,000
they proposed to ask for Parliamentary powers to
raise. The interest on debentures to June 30 last
would absorb £114,435, the debenture interest to
June, 1868, would be about £232,100, the comple-
tion of works £338,526, to provide additional redl-
ing stock by 1873, £156,356 ; further plant,
£28,275, to pay creditors holdingsecurities, £94,411,
and creditors having open accounts £220,900—
total, £1,288,104. There were expenses with re-
gard to land, and sums to pay in order to realise
assets from surplus lands. 'The mortgages on land
were put down at £200,000, so that with the fore-
going items the £1,500,000 would be disposed of.
It would also enable them to put the line into tho-
rough working working order, and to develope its
resources. This was the rock upon which the de-
benture holders seemed to split, but he hoped they
would think better of it. The credit of the com-
pany was so bad they could not get the requisite
money to place them in a safe position unless they
could give good security. He contemplated that
after mature consideration by the debenture holders
those objections would not be persisted in. He
could readily understand the angry manifestations
of debenture holders against a propoSal for placing
a preference to come in before them, in order to clear
off debts and place the undertaking in a good con-
dition ; but the directors never sought to do that
without the consent of every one concerned. If they
did not agree to come such measure, all would be
chaos and confusion. The board would meet the com-
mittee of bondholders on the morrow, when they
would be ready to consider any modification, or a
better plan if it could be suggested. (Applause.)
When the Court of Chancery were prepared to di-
vide any of the money in hand, there would pro-
bably be five or six different classes of creditors
claiming it, litigation would ensue, and the serious
question of priority would have to be decided. Any
scheme by which all could be paid would be pre-
ferable to interminable litigation. Some talked of 1
s .11ing the line, but that would cause a delay of two
years at least, and then it would be surrounded with
difficulties. The liabilities to pay 20s. in the pound ;
would be £9,000,000. In addition to that they t
have to allow out of tolls, or to provide for interest, ,
at 31 per cent., on £300,000, subscribed by the
Great Northern Company, and a similar amount
on £300,000 subscribed by the London and South-
-IVestern. The directors' proposition would give
five years for realisation if it should become inevit-
able, but with the natural increase of traffic it was
not probable that it would.
After some observations by Mr. V. Knight, Mr.
Parsons, and Mr. Rees,
Mr. HARTRIDGE said there could be no doubt
they must get money to pay their debts and place