The Sun.
London, England, 1866-11-16 00:00:00

GREAT EASTERN.

A meeting of shareholders in this company was held
yesterday at the London Tavern for the purpose of form-
ing a Shareholders' Defence Association. Mr. Weare took
the chair.
The CHAIRMAN said the objects to be obtained by this
movement were to obtain for every shareholder without
partiality that information about his affairs which was ne-
cessary to enable him to form his own opinion on questions
where he was responsible as master for the profit and loss
—to encourage observation and reflection among the pro-
prietors, to consider what means were calculated to rescue
ana improve theirproperty, and by correspondence on those
questions to find among themselves the men best qualified
for seats on the direction—to bring all abuses which de-
manded correction, and all sensible suggestions for the im-
provement of the property, under the attention of the di-
rectors. Ho had addressed two letters to the shareholders
inviting them to form an association for those objects. Six
hundred shareholders had responded to his appeal, holding
in the aggregate £1,500,000 stock of the company, which
was a large amount when it was considered that the direc-
tors, by sending proxies to the shareholders prior to each
general meeting, seldom obtained more than represented
£2,000,000. • In carrying out the objects of the association it
was not for the purpose of agitation, but simply to get in-
formation about their affairs ',rich the members could not
get individually or in the directors' reports. The non-
publication of the evidence taken by the late committee of
shareholders had left the shareholders in the dark and con-
tributed to the present state of things. The dangerous
situation of the company alluded to by the chairman at the
general meeting was sufficient to damp the ardour of any
one connected with the undertaking. At the meeting in
February the chairman told the shareholders they might
look forward to a dividend in the course of a twelvemonth

' or two years—but at a subsequent meeting he told them
they would have to wait a much longer time, say four or
five years. There was an additional sum of .C 53,000 a
year which would have to be taken from net revenue
before they could get a dividend on ordinary shares. He
thought that those statements, unaccompanied by proper
explanations, were damaging to the credit of the company.
From the accounts it appeared the company had not
the means to pay interest on all the preference
stocks on the last occasion. He thought the work-
ing expenses were exceedingly heavy. The policy of en-
deavouring to raise £3,250,000 at such a time was very
doubtful. They wanted information as to why the agree-
ment with the Great Northern had been broken off, and in
respect of several other matters. The Great Northerncoal
traffic to the metropolis last year amounted to £430,000, a
traffic of which the Great Eastern Company should have
got its share. Among other abuses was the system of grant-
ing free passes on their line, which he understood wascar-
ried out to a greater extent than on any other line.
Mr. Sergeant SPINKS said he would move the first resolu-
tion. They would all agree that the time had come for'
action on the part of the shareholders. Last year the price
of the shares was double what it was at present. They
were told that everything Was very bad, and the policy of
the directors and their Mends had had the effect of de-
preciating the value of the company's shares. He believed
they had a good property, but it required resuscitation and
protection. He understood that the deficiency at the end
of the year in paying the interest on the preference shares
would be about £70,000. The working expenses were 57
per cent., and ho believed that by proper management they
need not exceed 48 per cent. of the receipts. He would give
two years to bring down the expenses to 48 per cent.,say to
52i in 1867, and to 48 per cent. in 1868. This would make
a difference of £85,000 in the not receipts of 1867, and
double that amount in 1868. It was true they had had a
wet summer and the cattle plague, and the market traffic
depressed, but the Midland had obtained through rates
over their line and recently the Great Northern. Taking
the increase of the company's traffic at £2,000 a week,
there would be enough to pay 1 per cent. in 1867,
21 per cent. in 1868, and 3 per cent. in 1869, on the
ordinary stock. The free passes, if stopped, would
give them another half por cent. They did not in-
tend to disturb the present Board. The object of Mr.Weare
was to obtain the appointment of an efficient committee of
loading shareholders, to gain useful information, and to
assist the directors with their advice. The association
should give their confidence to the committee at least for
six months, and let them see what could be done to im-
prove the property. He concluded by moving a resolution
to the effect that this meeting, having heard the explana-
tions by Mr. Weare were cf opinion that an association
should be formed, and that such association should be
called " The Great Eastern Railway Defence Association."
Mr. HALL seconded the motion. He thought that by
friendly suggestions and communications to the Board
much good would arise to the company's property. The
abuse of proxies was a great evil, and he hoped the 600
gentlemen who had responded to the circular would assist
the intended committee in obtaining a remedy.
The resolution was carried unanimously.
On the motion, of Mr. Coxon, seconded by Mr. Brandon,
a resolution was unanimously passed to the effect that this
meeting was of opinion that a committee of shareholders
should be formed out of the members of the association,
consisting of six members for the London district, two for
Manchester, two for Leeds, two for Liverpool, and two for
Scotland, with power to add to their number.

Mr. BRANDON said thera was a rumour that the Midland
Railway Company wore about to buy up the Great Eastern
undertaking.
Mr. G. WRIGLEY said a meeting of Great Eastern share-
holders was held at Manchester on Tuesday and had passed
resolutions in:favour of the association, with a view to the
improvement of the property. He proposed that the
six members of the committee to represent the London
district be Mr. A. Colton, Mr. T. J. Hall, Mr. J. S.
Weare, Mr. Barkwitb, Mr. F. L. Spinks, and Mr. W.
Knight. He stated that the shareholders resident in Man-

chester and the other districts would appoint members
to represent them respectively. The members of the
committee just named held £70,000 stock in the corapanh
and one of them held upwards of £20,000 stock.
Mr. JACKSON seconded the motion, and it was carried
unanimously.
It was understood that a subscription of ls. per cent'
would be solicited to pay expenses ; and a vote of thanks
to ,the chairman concluded the proceedings.