The Sun.
London, England, 1859-09-02 00:00:00

RAILWAY INTELLIGENCE.

SOUTH-EASTERN.
The following is a more extended report than
appeared in The Sun of, yesterday.
The half-yearly meeting of the shareholders of
this company was held yesterday at the Bridge-
house Hotel, London-bridge, tb e Hon. James Byng,
the chairman of the company, in the chair.
Mr. SMILES, the secretary, read the notice con -
vening the meeting. The report, an abstract of
which has already appeared in The Sun, was taken

as read.
The CHAIRMAN, in moving the adoption of the
report, said—Gentlemen, the accounts for the half-
year, which have been placed in your hands, render
it unnecessary for me to enter into any detailed ex-
planations on the present occasion. The net result
of the half-year's working
.may be summed up in a
few words. The increase in the gross receipts has
been about £30,000; but the reduction in the
charges against revenue have been such that we
are not only enabled to recommend, you to divide
the whole of this amount, but a sum of above
£7,000 in addition. Should you adopt the direc-
tors' recommendation as to the dividend to be de-
clared, the rate will be at 4 per cent. for the last
half-year as compared with 3 per cent. for the cor-
responding half of 1858, a result which is perhaps
its own best commentary on the healthy state of
the undertaking. (Hear.) It is ri?ht, however,
that I should add that there has been no relaxa-
tion whatever in the measures necessary for main-
taining the efficiency of the permanent way-and
the working stock, the current revenue having
been directly charged with the expenditure neces-
sary for these purposes. You will observe from the
engineer's report that the expenditure in his de-
partment during the last five years has consider-
ably exceeded that of former years, but with the
result of greatly improving the condition of the
road, a point which we consider to be of very great
importance. I may mention that by an arrangement
with the Post-office, under which we obtain an in-
creased allowance for the service, the night mail now
performs the journey between London and Dover in
two hours and five minutes, and we are enabled to ac-
complish this principally by virtue of an excellent
road and the superior character of the gradients
upon our main line. (Hear.) Another satisfactory
feature which is alluded to in the report is the source
of increase of traffic during the half-year, which is
almost entirely derived from local traffic. The
through traffic to and from the Continent during the
last year has, indeed, been considerably less than in
some former years, but this may be accounted for by
various disturbing causes which have checked
growth in that quarter. There has also been a
severe and protracted competition by neighbouring
companies for passengers between London, Ports-
mouth, and the Isle of Wight at unusually low
fares, which must have had a considerable effect in
abstracting excursion traffic from this railway ;
nevertheless, the local traffic has gone on steadily
increasing, so that the net result of the last year's
working, as exhibited in the third tabular statement
contained in the report, has not only been main-
tained, but it exceeds that of all former years. And
I believe I may say, with confidence, that there is
no reason to doubt that the local traffic will con-
tinue to go on increasing as heretofore, in propor-
tion to the facilities which we provide for its deve-
lopment and its adequate accommodation. (Hear.)
And this brings me to the question of the further
capital which the directors think it necessary to
expend with this object. We know that the pro-
prietors very properly regard all additions to capi-
tal with considerable jealousy, and we do not desire
that they should in any way relax in their vigi-
lance in this respect. We wish that every new
outlay on capital account should be well scrutinised;
for, as no such expenditure is made or proposed by
tne directors without careful consideration, we be-
lieve that we shall alwaps be able fully to justify
what we recommend in this direction. (Cheers.)
Several of the items of new capital expenditure, as
stated in the report, explain themselves. The
siding at Ashford is rendered necessary by the
increased traffic created by the new stock markets
at that place, and also for the purpose of accelerat-
ing the passage of through trains. This measure
is therefore rendered necessary by considerations
of public convenience as well as safety. The
improvements at the Canterbury station have for
some time been under consideration ; but we find
they cannot longer be delayed, looking to the large
traffic which is expected, and which we must be
prepared to accommodate on the holding of the
next meeting of the Agricultural Society of Eng-
land at Canterbury, in July, 1860. The enlarge-
ment of the Customs examining warehouse at Folke-
stone is rendered necessary by the great increase in
the imports from France passing over this railway.
The present warehouse is often choked up with
goods, and delays and interruptio :s of the traffic
are thus caused, which it is the interest of the com-
pany at once to obviate by increasing the accom-
modation to the required extent. The new works
proposed at the Dover terminus are of an important
character. When carried into effect, the engines
and trains of this company will be enabled, by an
arrangement with the Admiralty, to pass directly
on to the Admiralty pier, and give us special faci-
lities for the conveyance of the mails, as well as
through passengers and luggage, to and from the
Continent. I ought also to add that the execution
of the proposed works will have the effect of pro-
tecting
caused
uats
hstorms
whentocc roomi
nn tssphi
dfaerieloryma windntl
considerable
the Lord 'Warden Hotel against the force
repairs.laan t
de
oyi
involved
south-east,vat
ohrlsevblowsaagnrug:aeg outlay
eutsrtot hratoyahn:gi from the
fornh go
t oc hotel, and
,
It is only fair to add that in carrying out these im-
provements this company will derive material as-

sistance from the Admiralty, who will undertake
to execute certain portions of the work at their
own expense, and thus reduce the call on the South
Eastern Company to a sum somewhat under £3,000.
The next outlay which we recommend to you is for
an increase in the working stock. This I think you
will find is fully warranted by the increase in the
traffic, which, you will observe from the report, has
been nearly doubled in 10 .years. The goods traffic
especially has undergone a very large increase ;
and though everything has been done that
could be done to make the most of the means
for carrying at our disposal, we feel that, both
as respects passenger carriages and goods wag-
gons, we are still considerably short of the pro-
per supply. The consequence is, that there is
greater wear and tear than there should be=less
opportunity being afforded for the economical repairs
of the stock, which is kept too constantly in work
—whilst at the same time we are unable to give that
accommodation to the public which it is for your
interest and advantage that we should adequately
provide. We have, therefore, no hesitation in re-
commending you to empower us to add to the work-
ing stock to the extent stated in the report. (Hear,
hear.) Although the subject of the Charing-cross
Railway, and the exercise of the poweri,under the
Act which has been obtained, will form the subject
of discussion at the special meeting to be held im-
mediately after the ordinary business bas been dis-
posed of, I will take the opportunity of offering the
remarks which I have to offer on that subject at
the present stage of the proceedings. You'-are aware
that th 3 directors have watched with much interest
the progress of that undertaking, and, with your
sanction, they have given it their vigorous support
in its various stages in Parliament. The bill has
now—passed into a law, after a protracted ‘...)pposi-
tion, and I heartily congratulate you on the success.
The South-Eastern Company has thus, through the
Charing-cross Company, secured the means of ad-
vancing its London station accommodation onward
to the immediate neighbourhood of Charing-cross,
unquestionably the very best site for a station in
the metropolis. (Cheers.) With its facilities for the
accommodation of City traffic, already provided for
by its London-bridge terminus, the South-Eastern
Railway will, when the works of the new line are
completed, possess the further advantage of stations
on the south side of the Thames, near the thorough-
fares leading to and from. Southwark--bridge, Black-
friars-bridge, and Waterloo-bridge, with a termi-
nal station on the north bank of the river, in tha
immediate neighbourhood of the Strand, Haymar-
ket, Piccadilly, Regent-street, the principal public
offices and exhibitions, and a site the most conve-
nient and accessible for the West-end traffic of Lon-
don. I think that the passing of this bill must be
regarded as a- fact of great significance in its bear-
ing upon the future development of this under-
taking—(hear, hear)—and I can scarcely doubt
that, so soon as the great additional facilities
which it is calculated to provide have been attained
by the construction of the necessary works, a very
large expansion of the traffic of the railway will
be secured. (Cheers.) Entertaining these views,
the directors are desirous that the powers conferred
by the Charing-cross Act should be exercised with-
out delay, and a series of resolutions will accord-
ingly be submitted for your consider ition at the
special meeting about to be held, with the object
of giving effect to the subscription and creation of
the new shares, to the extent authorised by the
act. (Cheers.)
_

Mr. SMITH 'wished to know in what manner the
directors proposed to expend the sum of £75,000
for new carriages, as he thought it most important
that the company should in such matters go with
ready money in their hands, and obtain them of
the best and cheapest makers.
The CHAIRMAN stated that the company now
made the greater portion of the rolling stock that
was required at their own workshops.
A SHAREHOLDER suggested the propriety of
closing the capital account of the company as soon
as possible. He did not object to the £75,000 re-
quir(d for additional rolling stock being added to
capital, but that some of the smaller items referred
to in the report might: have been defrayed out of
revenue. The law charges, amounting to £1,960
for the half-year, he thought was too large, consi-
dering that the solicitor to the company had an
annual salary.
The CHAIRMAN stated that a large portion of the
legal charges had been incurred in appeals against
the heavy parochial assessments, and it also in-
cluded a sum of about £5OO paid for expenses con-
nected with some surveys. Under the old system
the legal expenses amounted to about £12,000 a
year. -

Mr. HARTRIDGE wished to know whether there
was any trnth in the statement which had been
made at a recent meeting of the East Kent Rail-
way, that they had to complain of the unwarrant-
able obstruction of the South-Eastern Railway.
There was no doubt an angry feeling growing up
between the East Kent Railway and that of this
company, and when the East Kent was open
throughout its whole length, there was no doubt
that it would inflict a serious injury upon the
South-Eastern Railway. (Cries of " No, no.") He
hoped that the chairman would be able to tell the
meeting that no obstructive course of action had
been, or would be adopted in reference to the de-
velopment of the local traffic of the line between
Stroud and Canterbury. He was anxious, when
the East Kent line was opened, that friendly rela-
tions should be established between the two com-
panies, and no such absurd conduct as that which
had been adopted in the competition between the
North-Western and Great Northern Railways, and
the Brighton and South-Western lines.
Mr. GAMBLE hoped that the Chairman would
decline to give any answer to the question which
had been put to him. (Cheers.) He believed that
the meeting placed the most implicit confidence in
the directors of the company. They knew what the
directors had already done for them in times of
difficulty, and speaking, as he believed, the senti-
ments of the great majority of persons present, he
felt every confidence in leaving such matters as
those referred to by the honourable proprietor in
the hands of the directors. He thought, with every
feeling of respect for the honourable proprietor, the
Chairman would best consult the interests of the
company by declining to give any answer to his

question.
Mr. SMITH fully concurred in the opinions which
had just been expressed, and he appeiled to the
honourable proprietor to withdraw his question.
He should use his most strenuous efforts to prevent
any discuEsion of such a character by the present
meeting. (Cheers.)
Mr. HARTRIDGE said he certainly would not
withdraw his question.
The CHAIRMAN said that he was greatly obliged
by the expressions of confidence in the directors on
the part of the meeting, and for the temperate
manner in which the shareholders had looked upon
this question. (Cheers.) What they had to attend to
at the meeting was the interest of the South-
Eastern Railway. Complaints with respect to ob-
structions were such as usually proceeded from
persons who found that their competition was un-
successful. (Cheers.) If the projected East Kent
Company thought that on the completion of their
line, or any part of it, the South-Eastern Company
was to hand over to them the traffic to which they
were entitled, and which they had carried for years,
they would no doubt sooner or later find that they
had made a mistake. So long as the South-Eastern
Company was in a position to carry the traffic
which they had acquired they would endeavour to
hold and retain it. (Cheers.) With respect to any
alleged obstruction on the part of the South-
Eastern Railway he might state that the East Kent
Company had brought the matter before the Board
of Trade, and that the board had decided in favour
of the South-Eastern Company. (Cheer s.)
The resolution for the adoption of the report was
then agreed to.
A resolution was then proposed for the payment
of the dividend at the rate of 12s. per £3O stock,or
at the rate of 4 per cent. per annum, to be made
payable on and after the Bth of September inst.
Mr. SMITH inquired what would be the amount
of the deduction for the income tax ?
Mr. SMILES, the secretary, stated that the best
answer which he could give was by reading an ex-
tract from a letter received by him in reply to his
application to the solicitor of the Board of Inland
Revenue, and which was as follows In paying
the shareholders the half-year's dividend falling
due on the 31st July, a deduction should be made
at the rate of sd. in the pound on the portion of
such dividend which accrued to the sth of April
last, and at ls. ld. in the pound on the remainder;
and in like manner a deduction in respect of the
dividend for the subsequent half year to the 31st
January next should be made at the rate of ls. ld.
in the pound on the portion that shall have ac-
crued to the 10th October, and at sd. in the pound
for the remainder."
The resolution was agreed to.
The meeting was then made special for the pur-
pose of authorising the directors to exercise the
powers conferred by the Charing- cross Railway
Act, 1859, of contributing towards the funds of that
undertaking, and of creating and issuing new shares
or stock, either ordinary or preferential, to an

The CHAIRMAN, in stating the objects of the
meeting, said—The ordinAry business being dis-
posed of, I have now to 'submit for your considera-
tion the resolutions Which the directors recom-
mend for adoption with reference to the, creation
of the new shares under the powers of the Charing
cross'Act. It is proposed that the shares shall be
preference, and entitle the holders to 4 per cent.
on the capital from time to dna() called and paid
up on them. Looking at the present state of the
money market, it is not probrible that the capital i
likely to be taken on any less terms; and in the,
anticipation of a considerable accession of traffic
from the extension of our railway to Charing-cross,
we think the creation of the new shares is fully
justifiable at the proposed rate. We propose that
the deposit of £1 on the shares taken shall be pay-
able on the -- next, and the further calls will
be regulated accordin,t, to circumstances. But I
may state that the directors will be careful so to
regulate them as to press as lightly as possible on
the revenue of the South-Eastern Company in
future half-years, until the proposed works are
completed and open for traffic. He then moved
the resolutions already given.
A SHAREHOLER—What is the amount of the
capital of the Charing-cross Company ?
The CHAIRMAN said that it was £BOO,OOO, with
the usual borrowing powers.
Mr. G. JOHNSON wished to know whether the
directors were perfeetly satisfied that the works
could be completed for that sum.
Mr. MELLOR (one of the directors) said—lt will
be in the recollection of many of the gentlemen
present, that at the meeting held six months since
I had the honour of addressing them on the ques-
tion of the Charing-cross Railway Company. That 4
meeting adopted the views of the South-Eastern
board which were then explained, and since that
time, after a very lengthened opposition, and a very
severe fight in Parliament, the Charing-cross Bill
has become the law of the land. It is now for the
South-Eastern proprietors to consider whether they
shall rote the money which they aie empowered to
subscribe under the act of last session. In advising
them to adopt this course, I do it with the fullest
possible confidence in the beneficial result of the
Charing-cross Railway in itself as a profitable un-
dertaking, and in its consequences especially upon
your property as South-Eastern proprietors. It is
not necessary for me to enter into any lengthened
details as to what are my own views on the subject,
but I will simply state what I think the proprie-
tors may expect to derive from the railway, founded
upon the best information that we have been able
to obtain. (Cheers.) During the contest in the
House of Commons we were opposed by a neigh-
bouring company upon almost every count of the
indictment, if I may use that term. There was no-
thing which they could possibly adduce in order to
frustrate the passing of the bill which was not
brought forward. Among other things which were
contested were the estimates of the cost of construe-

purchased
haoueotseermetrcnhpoowefauf wnh
rtiiognor.onTshteessetinegsttinhlaantesthwoseere perhapssubjected
of almostto a
amoreny
other railway company, and the result was fully to
satisfy the committees of both Houses of Parlia-
ment that abundant provision had been made in the
estimates for the construction of the works. The
estimates of our own engineer were fully corrobo-
rated by the evidence of those who were put up in
opposition to us. Mr. Marrable, the enginrer to the
Board of Works, stated that for the construction of
partwsrhq.
etohhdyae,
da theßrbdre.
egreht engi-
neer fixed by our surveyor, his estimate being at the
of
etiyohds
Company,
per
aeaes
staffed
desnuagotttsu Southwarktuiaaaprotpefo:
y‘nhieaeerltldh2ca.eont
considerably d
eh
ra
adb
l y estimatedlower
thant h e
ob-
tained for the station at London-bridge had been
surveyor of the Charing-cross Railway had, forpro-
perty very much inferior, put the cost at £l3 the
square yard. If any gentlemen present who were
unacquainted with the course of the proposed rail-
way will take the trouble to walk over the ground,
they will see that a worse class of property does
not probably exist iu London, and ono of the pro-
fessional witnesses stated in his evidence that
he almost doubted whether the rents were col-
lectable. The inhabitants are classes of people
of the lowest character, and the property is
of the most wretched description. There can be
no doubt, therefore, considering the estimates for
the land which have been made by Mr. Marrable
and Mr. Hood, that the engineer of the line has
made ample provision in his estimate for the pur-
chase of the land. (Cheers.) With respect to the
bridge over the Thames, that was bought provision-
ally before the bill was passed, and for a sum within
the estimates. Mr. Bidder, Mr. Tite, and other
engineers, were brought to give evidence against
the bill by the Brighton Company and on the part
of the governors of St. Thomas's Hospital, and they
stated that in their opinion the estimates were fully
sufficient for the construction of the bridge. So
that we have, in fact, the evidence of their oppo-
nents as to the sufficiency of our estimates. Hun-
gerfore-market, which will be required for the
station, was also purchased provisionally before the
bill, and for a sum within the estimates. It must
also be borne in mind that there will be nothing to
be provided by the company in the way of rolling
stock, for that will be supplied by the South-Eastern
Company. You may, therefore, rely upon it, that
more will not be required for making the line, as
now laid out, than is provided for by the estimate.
It may perhaps be considered desirable, that for
some portion of the works in crossing the Thames
there may be some addition to the cost of the bridge ;
but it may be taken for granted that we shall not
spend more than one million on the line. If we
can succeed in getting to Charing-cross for that
sum, we shall accomplish an object of such vast
4mportance to the South-Eastern Railway that the
results can scarcely be over-stated. If I were to
state what I believe will be the result, and at this
I have arrived after going very closely into the
figures as they, affect the Charing-cross line per se,
as well as this company, you would think that Ili
have greatly exaggerated ; but I will give you some
facts, which will enable yoii to judge for yourselves.
When the South-Eastern Company and London and
Brighton stations were first opened in 1846, the
number of passengers was but:624,000, while in 1859
the whole number of passengers who entered and left
the united station was not less than 17,500,000. If
this great increase has taken place within ths last 13
years, and with stations only skirting the metropolis,
as it were, what may we not expect when we have a
station taking us into the very heart of the traffic
at Charing-cross ? (Cheers.)
A SHAREHOLDER—What was the cost of the
South-Western Extension from Nine Elms to the
Waterloo road ?
Mr. MELLon—It was £1,034,000 for a mile and
a quarter, with four lines of rails, and including the
purchase of several acres of land in the York-road,
which have not yet been used by the company.
(Cheers.) Then, with respect to the increase of
traffic at the South-Western station, I find that the
number of passengers there has increased from
337,000 in 1846, to as many as 4,000,000 in 1857,
which is the last year for which I have obtained
the information. The elasticity of this metropolitan
traffic is of such a nature that it is scarcely possible
to calculate the result of the opening of the Charing-
cross Railway. But should the traffic from the
Charing-cross station amount to only one-half of
that passing through London-bridge, you will have,
after deducting 40 per cent. for working expenses,
and taking the passenger traffic at 8,750,000 per-
sons, or one-half the number of those who went to
London-bridge, at 3d. each person, a net zevenueof
£65,000 per annum. In addition to this, there will
be the revenue for the letting of the arches, amount-
ing to £5,000 a-year. This estimated rental is taken
from the amount received by the South-Western
Company in letting the arches of their railway.
These two soirees of revenue will make a total of
£70,000 a-year upon a capital of £1,000,000. But
I believe this return of 7 per cent. will bo very
largely increased by the addition which will be
made by the traffic flowing from the Waterloo-
bridge station to London-bridge, and vice versa, as
well as the local traffic at the intermediate stations
in the borough. (Cheers.) I may further state, as
affording evidence of the value of this line to the
South-Eastern Company, that the East Kent
Company, who were petitioners against it in the
House of Commons, alleged that if made it would
be the ruin of their property. (Cheers.) There
is one important considerationin connection with
this proposed line. We are threatened, according
to the statements of an hon. proprietor present,
with a very serious injury upon the opening of the
East Kent Railway. 1 do not wish to say one word
in depreciation of that concern. It will, no doubt,
be in existence some time or other, and will have
to stand or fall by its own merits, and we do not
intend to surrender to it one shilling of our legiti-
mate traffic. (Cheers.) But you will readily under-
stand what a command such a station as that at
Charing-cross will give to any company having
access to it over the country which it professes to
serve. We shall go to Dover and serve the Conti-
nent as well as the East Kent Railway. But that
company has precluded itself for all time to come

to or returning from- the Continent. It is a most
satisfactory feature connected with the Charing-
cross Company, that tho South-Eastern Railway,
so far as regards London, Chatham, Dover, Canter-
bury, and other places, the traffic of which may be
competed for, will have, so far as regards those
places, the exclusive right and use of the Charing-
cross station, and that the East Kent Railway can-
not c )me there at any time. '(Cheers.) I think you
will be fully justified in agreeing to the resolution
to subscribe £300,000 to the Charing cross Com-
pany, and I believe you will get abundant return
for your investment. To the South Eastern Com-
pany the consequence of having this station will be
that we shall outflank all our opponents from what
ever quarter they may come. (Cheers.) In conclu-
sion, he repeated the opinions which he had before
expressed respecting the probable remunerative
character of the proposed undertaking. (Cheers.)
Mr. SMITH congratulated the meeting upon the
fact of the company having secured the Charing-
cross
Bill, which he regarded as one of the greatest
events in the railway world. It was impossible to
over estimate the advantages which would accrue
to the South-Western Railway and to the public
at large from the construction of.this line. He re-
garded it, in fact, as a glorious gleam of sunshine
to the concern. (A laugh.) He had long since
made up his mind as, to the merits of the concern,
and was among the earliest to take shares in the
company. (Chcers.)
Mr. FARNBROOK wished to know whether the
remainder of the capital had been subscribed ?
The CHAIRMAN said a considerable portion more
than one-half, of the capital had been subscribed.
Mr. SMITH said that he should be perfectly
willing to double his amount of subscription, as
would also several gentlemen who were sitting near
hini. (Cheers.)
Mr. MELLOR said the amount of stock already
subscribed, without any application whatever to
the public, was £450,000, and that the remainder
of the shares would be offered in the first instance
to the shareholders of the South-Eastern Railway.
A SHAREHOLDER wished to know when the
works of the line would be completed ?
Mr. MELLOR said they could not be completed
within two years.
In reply to a question,
Mr. MELLOR explained that the mode of cross-
ing the river would be by Hungerford-bridge, '
which was to be altered by removing the chains
and converting it into a girder bridge. There
would be the same accommodation for foot pas-
sengers as- at present existed for crossing the
bridge, and the same toll would be levied, which
would go to the Charing-cross-bridge Company.
The resolutions were agreed to: -
The following resolutions were then unanimously
agreed to :
" 1. That this company agree to subscribe for,
and to take and hold, shares of the capital of the
Charing-cross Railway Company, under the powers
of the Charing-cross Railway Act, 1859, to the
extent of £300,000.

" 2. That, for the purposes of such subscription
and contribution, there be raised £300,000 of addi-
tional capital of this company, by the creation and
issue of new shares, to be called the Four-and-a-
Half per Cent. South-Eastern Preference Shares,
and that the following shall be the terms of issue
of the new shares, namely :—The shares shall be of
the amount of £lO each (of which £1 shall be pay-
able on the 15th of October next), and shall entitle
the holders thereof to a preferential dividend out of
the profits of the year applicable for the payment
of dividend on the ordinary stock of the South-
Eastern Company, at the rate of 4f per cent. per
annum on the amount for the time being paid up
thereon, and that they be issued in such manner,
and at such times, and the calls thereon shall be of
such amounts, and payable at such times, as the
directors shall' think fit to determine. That such
of the proprietors as, on or before the Ist. day of
Oct, next, shall declare in writing to the secretary
of the company their desire to take their rateable
proportion of the new shares, shall have the prefer-
ence in the issue of them; and that in the event of
the whole number of shares not being so applied
for, the directors shall then be empowered to issue
the remaining shares in such manner, on such
terms. and at such times as they shall consider ex-
pedient.
" 3. That the directors be, and they are hereby,
authorised and required to do all such acts as may
be necessary for the purpose of giving effect to the
foregoing resolutions."
A vote of thanks to the directors and chairman
terminated the proceedings.