The Sun.
London, England, 1850-02-27 00:00:00

fourtb
SUN OFFICE, Seven o'Clock.

EASTERN COUNTIES RAILWAY.

(THIS DAY.)
The twenty-seventh half-yearly general meeting of
tfii shareholders of this company was held at the London
Tavern, Bishopsgatc-street, this day, at one o'clock, for
the purpose of receiving a report from the directors of
the progress of the undertaking, and for the transaction
of other business.
Long before the ,hour of meeting the large room and
the gallery at the foot were crowded with shareholders.
At one o'clock, Mr. Edward Ladd Betts was called to
the chair.
The SECRETARY proceed to read the report of the
directors as follows:

" Upon meeting the shareholders at the end of the first
half-year that this board of directors have been in office,
they must recal to the remembrance of the proprie-
tors the state of disorder in the affairs of the company
at the time when they were elected in July last. That dis-
order had, as a first measure, to be rectified—the company's
credit to be restored—and new arrangements to be method-
ized; to enable the directors to judge how traffic could be
best developed and expenses reduced. The board have by
incessant labour done their utmost within so short a period
to place matters in train for future and further amelioration ;
and encouraged by the confidence of the proprietors,
they yet hope that their exertions, and those of all persons
connected with the company, will lead to an improving re-
venue and decreased expenditure. The present board can•
not be held responsible for the past, and they have deter-
mined to'represent the undertaking in the accounts now
exhibited to the meeting and in all future accounts in its
true condition without the slightest attempt to overstate its
merits cr its powers. This course of proceeding will be
best calculated to place the property of the company on a
solid basis.
"Fee the purpose of overcoming the large arrear of busi-
ness, left for the board to arrange, and in order to superin-
tend, closely and effectively, the daily work to be done in
every department of the company, the directors formed
themselves into four working committees for the separate
direction of traffic, account', stores, and engineering, includ-
ing the locomotive department. A joint committee for the
transaction of business peculiar to the Norfolk Railway was
also formed, in accordance with the agreement between the
two companies, 'consisting ofeefour Eastern Counties and
three Norfolk directors, and is acting at present without re-
muneration to the Eastern Counties section of the com-
mittee.
" The results of the past six months' working of the lines,
in receipts and expenditure, paid or incurred, are fully set
forth in the accounts which have been published and distri-
buted amongst the proprietors. These exhibit that the
receir ts, when compared with the corresponding half-year of
1848, have slightly increased.. The expenses have been kept
down as much as hitherto practicable. To compare them
with the charges for the like period of 1848, would be erro-
neous, as, in the opinion of the Committee of Investigation,
the latter were not stated correctly. Besides which, the
revenue accounts of the board for the past halt-year, ex-
hibit and debit all the expenditure incurred during that
period, whether actually. paid or not, a system of accuracy
which was not adopted in the former balance-sheets of the
company.
" None of the capital has been treated as unproductive,
and the whole of the interest upon guaranteed stocks and
debentures, is, therefore, for the first time, charged against
revenue.
" The directors have debited the revenue of the past half-
year with every expense to which it can justly be considered
liable, and it will be observed that the charge upon it for the
renewal of locomotive engines, carriages, and waggons, hav-
ing accrued due, but not actually paid, is taken into account.
Toe amount charged against the revenue of the half-year for
the renewal of engines and carriages worn cut is 11,950/-
The sum of 16,0001. has been set apart for the renewal of the
permanent way• and works, and carried to the credit of that
fund, according to the resolution of the proprietors.
"It is proper, likewise, to draw attention to the fact, that
the interest payable to the Northern and Eastern Company,
on their quarter shares, has been diminished to the amount
of 1,2671. par annum, from an amount of capital hitherto
temporarily entitled to six per cent., being under the agree-
ment of amalgamation reduced to carrying foie per cent.
"The entire revenue of the half-year has been 424,578/.
15s. Id., of which 69,2941.45. 9d. have been earned upon the
Norfolk Railway. It was the wish of the proprietors at the
last meeting to have the receipts of each company kept se-
parate, and this has been done. The charges for mainte-
nance of way have also been kept separately, but it is im-
practicable to preserve any separation in the locomotive ex-
penses and in the great bulk of the carrying and general
charges.
'" The working expenses, disbursements and charges
against the half-year amount to 372,6201 Bs. I Id., leaving
net 51,9581. 6s. 2d. to which the surplus of 976/. Os. Id. after
paying the last dividend must be added, making a ba-
lance of 52,934 t. tis. 3d.
• " The directors have therefore to recommend a dividend of
three shillings per share upon the Consolidated Stock of the
Eastern Counties Company ; and the payment to the Nor-
folk Company, in terms of te agreement between the two
companies, of such a sum as shall be sufficient to pay an equi-
valent dividend upon the Consolidated Stock of the latter
company.
"The professional accountants have not yet completed their
examination of the account of the capital expended, and in
consequence the board have been unable to fulfil the pro-
mise• made in their last report that a full statement
of the company's expenditure on capital wculd be furnished
previous to the present half-yearly meeting. The proprietors
are referred to the report of Messrs. Quilter, Ball, and Co.,
onethis subject ; by which also they will find that a sum of
2,5131. has been recovered for the company. At the same
time, the directors being able to estimate the outstanding
liabilities, and knowing that no new works have to be con-
structed, except the completion of the junction line between
Sheltorth and Shepreth, more particularly alluded to hereafter
4tid the extension of the accommodation at the London sta-
tions, are enabled positively to say that the capital ac-
count shall be closed within the amount stated in the
published accounts appended to this report.—(Cheers.)
The utmost further sum requiring to be now raised
is 160,000/., in which sum :is included 90,0004 for the
construction of the Shelfurd and Shepreth line. Probably a
less suns than 160,0001. will be sufficient. But the aggre-
gate of capital mentioned in those accounts will be the ex-
treme upon which interest and dividends hill be payable.
That the directors might better acquire a full knowledge of
the liabilities of the company, and arrive at the desirable
conclusion within what sum the capital account could be
closed, they caused advertisements to be inserted in the public
papers, requiring all claims against the company to be sent
in for examination. Many were received; their amount was
not greater than. had been anticipated ; most of them are in
course of settlement and liquidation, and means will be
taken to bring all matters in dispute to a final determination.
It is intended to take early measures for realising the surplus
lands and other available property.
" Considerable sums have, in former years, been impro-
perly taken from capital, and applied to payments on aceount
of reeeinue. Although these were reduced by the proprietors
consenting to forego the payment of a dividend for the last
half-year of 1848, the amount now ascertained by the ac-
countants to be still remaining in suspense is 169,325/. 13s.
9d. This amount must be regarded as a loss to capital, and
be so treated in the company's books, unless the proprietors
shall otherwise determine. _

"The unsatisfactory state of the company's preference
stock, in consequence of a large amount remaining unregis-
tered, caused much labour and responsibility to the dicers.
The directors have called in the whole for registration, and
nearly all the No. 1 and No. 2 Five per Ceat. Stock, and the
New Six per Cent. Preferential Shares have been registered.
The last created Five per Cent. Stock Converted York Ex-
tensions still remains in the form of a debt, bearing interest
in perpetuity at five per cent. The whole amount of this
stock is 43,9201. only. It cannot be registered under the
existing Acts of Parliament, and the directors intend to can-
cel it, either by paying it off, or by the substitution of ter-
minable debentures.

"The financial position of the company is so improved
that the directors have not hesitated to publish in the ac-
counts the actual state of the debenture debt of the com-
pany in detail.—(Hear, hear.) Its small amount, compared
with the magnitude of the share capital, and of the property
in security, is a matter for great congratulation. There can
be no it übt that the company will not experience the least
difficul in keeping outstanding this amount of debt, until
the proprietors determine upon discharging it; and that the
renewals of bonds falling due will be effected at a reduced
rate of interest.—(Hear, hear.)
" The directors also hope to reduce by a considerable
amount the rates charged upon the railway, by the parishes
through which it passes. The preliminary step to this re-
duction, is being taken by so keeping the accounts of the com-
pany with reference to rating, as to show exactly, what por-
tion only of the company's property is rateable under the
Acts of Parliament, as distinguished from earnings by the
use and employment of stock in trade not rateable. The
Courts of Quarter Sessions will then be enabled to do the
cmipany that justice, by lowering the rates, which hitherto
it has not received.

"The directors have been desirous to obtain the opinion of
the proprietors respecting the measures that may be brought
before Parliament, relative to the audit of railway accounts,
and although the Bill prepared by a committee of delegates
from the boards of the principal railways has been aban-
doned, they think it right to give the following abstract of
the answers received from their constituents s—
" Circulars were issued to all the shareholders, of whom
caly 2,219 returned answers. Of these, 1,429 approved of
the Bill ; 115 dieapproved of it ; 620 were in favour era Go-
vernment audit ; and 5,228 returned no answer.
" It will be remembered that the principal provisions of
the Bill consisted in the appointment of two auditors, to be
named by the shareholders, and of a public accountant, to be
named by the auditors, and that the audit O. the accounts
should be continuous.
"This mode. of audit had already been adopted by the
Eistern Counties Railway Company, under the present di-
rection. Mr. James Reeve and llr. William Malyhew have
audited the accounts, and examined them with the vouchers
laid,before them by Messrs. Quilter, Ball, and Co., public
accountants, who have had constant access to and continu-
ously examined and audited all the compa.ny's books and
accounts, and who have made out the financial statement for
the past half-year. The board found only one auditor
in office, Mr. Reeve, who had been appointed
by the shareholders, and they considered that as
the proprietors had chosen Mr. Mayhew as one of the com•
mittee of investigation, he was the fittest person to be the
second auditor. The proprietors will be enabled at the pre-
sent meeting to confirm and continue the appointment of Mr.
Reeve and Mr. Mayhew, or to appoint other auditors, as
they may think fit. It is the anxious wish of the board that
the audit of all the company's accounts should be continuous,
scrutinising, and complete ; and they recommend that a
committee be appointed by the proprietors at this meeting,
to consist of three or more shareholders, to confer with the
delegates of other companies, and determine upon the proper
measures to be adopted for additional legislation on this
subj,ict.

•• The directors of the Eastern Counties Railway Company, i
not considering t necessary to proceed to Parliament this
year, in reftrence to the amalgamation with the Norfolk
c =patty,' and the board of that company concurring in this
proceeding, the Norfolk line has been worked under the
agreement between the two companies, set forth in the last
half-yearly report.
" The accounts between the two companies have also been
BO arranged under the same agreement that the Eastern
Counties Company are not under any advance to the Norfolk
Company, nor will they be required to advance any amount
on ,loan to that company, but merely to pay up the re-
mainder of the purchase money, which shall be due by the
Eastern Counties Company for the Norfolk Company's
rolling atock, stores, &c. The amount already paid towards
that purchase money is stated in the capital account.
By the agreement referred to, the Norfolk Company
ib bound, in case of no amalgamation taking place, to
repurchase its rolling stock at the same amornat of valuation
as•now paid by the Eastern Counties Company, under the
award of Mr. Robert Stephenson, and the Norfork Railway
directors have, at the request of e Eastern Counties board,