The Sun.
London, England, 1868-03-06 00:00:00

TEE SUN, LONDON, FRIDAY EVENING, MARCH 6, 1868.

RAILWAY INTELLIGENCE.

and Crewe, which would form a new route to Man-
chester. They were also bound to double the line
between Worcester and Hereford, over which the
Midland was to work and bring traffic. The doub-
ling of the line would cost £60,000, and he hoped
the Midland would bring the promised traffic over
it when completed. There was a small matter at
Aylesbury to change the mixed gauge into a nar-
row gauge line, which would effect a saving of ex-
pense between .Risborough and Aylesbury, and be
a permanent improvement. Any future expendi-
ture on capital account would be previously submit-
ted to the proprietors for their sanction at each half
yearly meeting. The estimate for the next six
months included £20,000 for additional goods en-
gines of which they were deficient, £B,OOO for steam
boats across the Mersey to be worked in conjunction
with the London and North-Western Railway Com-
pany, who were to subscribe a similar amount. In-
stead of having carriage shops at Oxford at a cost of
£90,000, they proposed to expend £25,000 for car-
riage sheds at Swindon, which would be close to the
works for repair if necessary. The carriages would
thus be protected from the weather during the
winter, when fewer carriages were wanted for
the traffic. There were other works for making
new bridges at a cost of £2,000 and £4,000, which
would save expense hereafter. They proposed to
convert the Vale of Neath stock into a rentcharge
stock, and they would be enabled to work that and
other adjoining lines more advantageously. The
Bristol and South Wales agreement would also be
submitted for their approval when ready. (Cheers.)
Mr. E. SMITH, chairman of the consultation com-
mittee, seconded the motion for the adoption of the
report. He believed the Great Western had now
a good board and that they would work heartily for
the benefit of the undertaking. He alluded to the
great injury that had been inflicted on railway pro-
perty by bad legislation and a want of friendly rela-
tions with neighbouring lines. He trusted there
would be an end to those evils in future. He did
not hold to the principle of closing the capital ac-
counts of railway companies whose traffic was pro-
gressing. He did not like the plan of charging
everything to revenue, which appeared to be so much
approved ; but thought capital should bear the
legitimate expenses relating to it, and revenue only
what it should bear in justice to the shareholders.
The committee of consultation had to bring about
a reduction of the board from 2G directors
to 16 directors, and that had been accomplished
not without some regret and difficulty on the part
of those affected by the arrangement. The result,
he hoped and believed, was that they had at last a
good working and efficient board. They had an
honest, able, and indefatigable chairman ; they had
good business men on the board, who were conver-
sant with financial and commercial matters. He
did not recommend any change in the present
board. They had very able and efficient officers in
their service, devoted to the interests of the com-
pany, and there was a strong disposition to keep up
friendly relations with their neighbours, and at the
same time to protect the interests of the company.
(Hear, hear.) The company wanted rest, to get
rid of lawsuits, and to keep out of Parliamentary
contests. He had no doubt that by carrying out
the policy now indicated the company would, in
the course of a reasonable time, be brought into a
satisfactory and prosperous condition.
Mr. TAYLOR was glad to see the great improve-
ment in the statement of accounts, which would
enable the shareholders to compare the items with
the corresponding half year.
Mr. PARKES thought that the full and free dis-
cussion of their affairs would do good. He ob-
jected to the powers proposed in the bill for paying
dividends by the issue of stock. He hoped they
would pause before they sanctioned it. Lord Redes-
dale had called attention to it in a letter to Me
Times of that morning. If such a bill were allowed
to pass it might be adopted by other companies,
and prove injurious to shareholders. He thought
the money might might be raised in the usual way
on the stock they had, and when raised paid to the
shareholders. Lie had strenuously opposed the bill,
but had no objection that it should sanction what
had already been done by the directors. He had
taken the 6 per cent. in lieu of dividend, and in-
tended to keep it. lie proposed an amendment that
the report be adopted, with the exception of clause
7, relating to the bill.
Mr. C. LEGG seconded the motion. He thought
the passing of such a bill would be a dangerous pre-
cedent, and suggested the issue of a large amount
of debenture stock, the first instalment on which
should receive interest at 10 per cent. He also sug-
gested the sale of surplus lands,
Mr. HUNTER thought it was not generally known
that the company paid money into the Bank of Eng-
land so as to amply cover the interest falling due on
the debentures of the company. He felt grealy in-
debted to the committee of consultation for the
good service they had rendered.

Mr. PRICE thought there was no other way to get
out of debt than the plan proposed by the directors,
and he hoped the shareholders would take up the
debenture stock and keep it. Ile believed that there
was no greater fallacy than that of closing the capi-
tal accounts of railway companies. He concluded
by moving a formal resolution respecting the mode
of keeping the accounts.
Mr. GILES protested against the proposed agree-
ment with the Bristol and South Wales Union
Company. Attempts had been made in 1849 to
close the capital account of the company, but it was
not carried out properly. He thought it quite pos-
sible to close the capital account of the company by
charging everything to revenue not all in one half-
year, but by spreading the charges over a limited
number of years, and thus paying them off.
Mr. WHETHAM was decidedly in favour of issu-
ing deferred dividend warrants to the shareholders,
by means of which they would be enabled to get
cash for them. He saw no difficulty in the share-
holders subscribing for £1,000,000 or £2,000,000 of
5 per cent. debenture stock. There were 17,000
proprietors, and £lOO each would raise £1,700,000.
Taking half the number, 8,500 at £2OO each, or
2,500 at £4OO each, would raise £1,000,000 re-
quired, and thus grapple with the present diffi-
culty.

Mr. ADAMS was in favour of supporting the board.
He was glad to see a great improvement in the ma-
nagement, and suggested that they should now en-
deavour to issue a debenture stock for £13,500,000,
to pay off the debentures and borrowed money.
They had ample security, and could raise it by in-
stalments.

The CHAIRMAN, in reply to various observations,
said the company charged its maximum rates in
most cases. He thought he might meet Mr. Parkes's
view by confining the operation of the dividend bill
to the past and the present year only. It would
not do to be placed entirely in the hands of the
money lenders. No one knew the difficulties the
Board had had to contend with in the past two and
a half years. £1,000,000 would meet the present
emergency and carry them through. If the money
was raised at once they could pay cash dividends.
They would know at the end of the month whether
it would be necessary to issue deferred dividend
warrants. If they could reduce the debentures
to £6,000,000 or £7,000,000, there would be no
difficulty in renewing borrowed money. If a
receiver were appointed, ho would go on paying
off the interest and the debentures as they be-
came due until they were extinguished, but he
thought their affairs were much better in the
hands of the present Board. He very much re-
gretted to see Lord Redesdale expressing an opinion
on a question that would have to come before
him in the House of Lords. They had quite enough
to contend with without having their case decided
before it was heard. They kept a large balance at
the Bank of England to meet claims of debenture
holders, and he was glad to say the Bank had
treated them very handsomely, by not charging them
a►ny commission. The Bristol and South Wales
agreement would not come before them at present.
The reports were unanimously adopted, with the
amended clause No. 7. The retiring directors, Mr.
Bassett, Mr. Dillwyn, Mr. King, and Mr. Wanklyn
were re-elected, and Mr. C. Whetbam, a candidate
for a seat at the Board, withdrew his claim for
another occasion.

The bill for conferring further powers on the
company for the construction of works, and in zela-

tionito their own undertaking and the undertakings
of other companies, was agreed to. The outlay of
certain amounts referred to in the report was
sanctioned, and the meeting at its rising was ad-
journed to the 2d of A pril next.
The proceedings concluded with a vote of thanks
to the chairman and directors.