The Sun.
London, England, 1850-08-17 00:00:00

THE SUN,

account. It will be a satisfaction when we come to you,
because the step will be taken only in consequence of an
increase in the traffic. That will leave one portion of
the capital account still open, but under existing circum-
stances we cannot venture to come to you with any spe-
cific vote, but by and by we shall be prepared to take
some course of that sort. Of late years the develop-
ment of our goods traffic has been so extraordinary
that at present it would be premature in us to offer an
opinion as to what will be hereafter required. We do
not know at present what we shall be compelled
to do to furnish sufficient accommodation in
London for the dispatch and delivery of
that traffic over the metropolis, but this I
can promise you, that whenever we do come before you
our plans shall have been duly matured; and when these
plans are ,settled we shall be prepared entirely to close
the capital account.—(Cheers.) Now, gentlemen, I pass
on to the next point calling for remark. Now,
although the receipts of the last half-year
do present a very favourable aspect, yet your directors
are not prepared to advise you to increase your divi-
dend upon this occasion. They are very desirous of up-
holding the policy which the proprietors themselves at
the last general meeting voluntarily adopted of continuing
the dividend at five per cent. until your executive body
are able to come forward and say you can permanetly
rise to a larger dividend. It will be impossible fir us to
risk going beyond five per cent. until we have dis-
pnsed of all the liabilities of the company. lam
perfectly aware that the balance carried over must ap-
pear large, and from casual remarks which have appeared
in some of the newspapers, I am desirous to state that,
as regards the 145,0001, I receive no advantage
f:om it in my capacity of banker in the city.
I do not receive a single farthing benefit from it, and I
beg at :ince to state that with regard to the financial
affairs of this company, there is scarcely one of the
directors who takes less part in their affairs than
I do. Sometimes the finance committee refers
to me for my opinion with regard to the state
of the money-market, and I give it readily; but as re-
gards banking the deposits or resources, I have no more
to do with it than any of you ; indeed, some of you
may have more to do with it, for you may be con-
nected with the joint-stock banks who hold some of
your money.—(Cries of " Hear, hear.") It is right
that you should know the real proceedings of the finance
committee, who, certainly, deserve great credit for the
manner in which this 145,000/. is appropriated.
I do not think you will complain of their employ-
ing the money in paying off your debentures. It is
really a fact, many of the gentlemen on this committee
are quite adepts in my business of banking. I will tell
you of one operation which took place some time ago
through the agency of your finance committee, who are
quite equal to bankers. Why, they took upon themselves
to go into the market and discount your debentures,
an operation which a banker would have resorted to had
he been in possession of your money.— (Cheers.) The
Hon. Gentleman then proceeded t) advert to the audit
question, which had been made too much importance of,
and, after taking a rapid glance at the Bills which
have been before Parliament this session on the subject,

he recommended that the agitation which was at present'
going on should be abandoned, as he believed the pre-
sent powers of the law under Mr. Gladstone's Act were
amply sufficient to secure an efficient audit. He then
proceeded as follows :—There is another point,
gentlemen, which I now come to in due order,
and which I think is of infinitely greater importance to
your welfare than the Audit Bill. I have alluded to this
topic before in this room. I refer to the particular posi-
tion in which this company will be placed under the
Amalgamation Act, looking, as we must do, to the
future working, and the constitution of the board of

directors as it must be constituted under that Ac

after the Ist of January, 1851.—(Hear, hear.)
In reference to that question, my colleagues agree with
me in the opinion that it is highly desirable that the pro-
prietors and directors should act in unison. I be-
lieve we can have but one common interest in it.
Your directors are nothing but proprietors, and
some- of them large proprietors. They have the
odvantage of a great deal of practical experience
in working the line; and I cannot conceive that anything
will be more desirable than that the proprietors and
directors together should devise such a plan as will ensure
that unity of action, and at the same time that attain-

ment of security for all local wants, and that, with a con-
centrated responsibility residing somewhere or other, as
will continue the working of this great undertaking to
even a more successful position than that on which I have
the satisfaction to congratulate you to-day.---(Applause.)
The SECRETkRY then read the report, estoilows:—
_ _

.
"After the depression which has affected the revenue
of the company in the passenger department for several
half-years, it is gratifying to the directors to be enabled
on the present occasion to refer the proprietors to an in-
crease of receipts in this important branch of their busi-
ness. It has not yet regained its former activity, but
has exhibited considerable improvement, and although a
large porsion of the increase is due to the opening of the
line between Leeds and Manchester, it is satisfactory to
add that generally there is every appearance of revival.
" The merchandise department, in all its branches,
again seows a great increase over the corresponding
period of 1849.

• " The accounts which have been circulated give the
"ollowing resulte:—

1850. 1849. Increase
Passengers, Parcels, Mails, &e. &c..... 674,220 • • 647.917 .. 26,303
Merchandise, including Coals & Cattle 435,959 .. 335,021 .. 50,938

£1,110,179 £1,032,938 £77,241
"In estimating this improvement in the traffic it must
not be forgotten, that during the half-year just concluded
the company has been subjected at various points to
severe competition, and that many of the lines calculated
to dram oft a portion of the traffic long enjoyed by the
Landon and North-Western have been in full operation.
" It might not unreasonably have been expected that
with so large an addition to the receipts, principally in
merchandise, and with au addition of 43 miles to work,
the expenses would have been proportionully increased,
but the continued efforts which have been made to re-
duce the working expenses have produced the desired
result. The gross increase of charge over, that of the
corresponding period of 1849 is only 7,4571.; the net
additional profit for the six months is therefore 69,7841.
above that of the half-year ending 30th June, 1849. The
per-tentage of disbursements to receipts is, exclusive of
rates and taxes, 33.39 against 35.90 in 1849, and in-
clusive of these items, 38.31 against 40.90 in 1849.
Every necesfary expenditure has been incurred to
maintain the property in the fullest efficiency, and the
directors keep this important point prominently in view;
they hope, however, to be enabled, consistently with this
primary duty, to reduce still further the charges for
working, although it must be remembered that each suc-
cessive retrenchment leaves less margin for future saving,
and it is now rather upon enlarged traffic, conducted
without much increase of expense, than to further re-
duction in working charges, that the proprietors must
depend for future augmentation of profits.
" With the view of stimulating the passenger traffic,
the directors have reduced the short fares on various
parts of the line, and in order to test the capabilities of
the branch railways recently opened, and to develop if
possible the local traffic in the agricultural districts,
they have by way of experiment made trial, in some
cases, of extremely low fares, bat it is too soon to make
any definite statement of the result.
"The directors have to report with reference to the
Parliamentary Bills of which drafts were laid before the
last general meeting,—
" That the Bill promoted by the East and West India
Dock Railway Company has become law in terms sub-
stantially the same as then submitted.
" The Bill promoted by the Shropshire Union Company
was brought into Parliament, but, in consequence of the
insertion of objectionable clauses, it has not been
thought advisable to proceed further with the measure.
" The Bill promoted by the Chester and Holyhead
Company passed through the House of Commons, but a
clause having been introduced in the Committee of the
House of Lords (similar to one introduced by the
opponents in Committtee but rejected by the
House of Commons) at variance with the letter and spirit
of the general Acts for the regulation of railways, and
unjust in its application as respects this company, your
directors felt reluctantly called upon to intimate to the
board of the Chester and Holyhead Company that it
would not be consistent with their duty to recommend
the proprietors of the London and North-Western
Company to enter into any engagement which might
subject them to the operation of the clause in ques-
tion, and the Bill has consequently been withdrawn
by the Chester and Holyhead board. The abandon-
ment of the measure will necessarily postpone ar-
rangements, desirable in a public point of view, for
perfecting the most direct and speedy communication
with Ireland. Your directors regret, but are in no way
responsible for, this unfortunate result.
" The South Staffordshire Company have obtained an.
Act, empowering them to lease their line to certain pri-
vate individuals, and due care has been taken to protect
the interests of this company.
" The directors have the pleasure to report that their
negotiations with the North Staffordshire Company have
resulted in a traffic arrangement, by which the claims o
that company are adjusted on terms mutually satisfac.
tory.

"The Great Northern Railway was opened for traffic
between London and Peterborough on the 7th inst., and
arrangements have been agreed to, consistent with the
fair interests of all parties.
" The hostile proceedings of the Shrewsbury and Bir-
mingham Company are still continued, and for the same
object in which they originated, and in which they have
been joined by the Shrewsbury and Chester Company.
Experience and the most deliberate consideration of the
question has confirmed your directors in their opinion,
Emit they cannot, consistentlywith your interest, accede
to terms more unfavourable than those originally pro-
posed to the Shresbury and Birmingham Company, viz.
—equal rates between all points to which the respective
companies have a line of railway. These terms, offered
from the outset, have been rejected.
The relation established with the Midland, Lanca-
shire and Yorkshire, Manchester, Sheffield, and Lin-
colnshire, and other companies, have proved beneficial to

all interested, their object being a friendly interchange
and division of traffic at all points where the lines meet,
and such arrangements generally as, whilst affording the
fullest accommodation to the districts, will conduce to a

diminished expense in the working of the traffic.
" The Lancaster and Carlisle Railway continues to
realise the expectations entertained by your directors
when they advised you to take an interest in that un-
dertaking, but thoy regret that the contrary is the fact
as regards the lines farther north in which you are pro-
prietors. Negotiation, however, are in contemplation
for obtaining the sanction of Parliament to arrange-
ments between the Caledonian shareholders and their
lased and guaranteed lines, on the bask of mutual and
necessary concessions; should these be brought to a
successful issue (an event which would be beneficial to
all partici interested), some return upon your capital in-
v•!sted in that undet'taking may be anticipated; and in
the meantime it will be observed, that interest upon the
4J:want ezzpended is borne by revenue.
"The lines of theAtickingbamehire Railway, and of the