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

LONDON AND NORTH-WESTERN
RAILWAY.

The usual half-yearly general meeting of the pro-
prietors of the London and North-Western Railway
was held yesterday at the Eustoa.square Station;
Mr. G. C. Glyn, M.P., chairman of the:board of direc-
tors, in the chair. •
The advertisement convening the meeting, and the
minutes of previous meetings having been read, the
common seal of the company was affixed to the register
of shareholders.
The CHAIRMAN then proceeded to address the meeting
to the following effects—Gentlemen, in performing the
duty which devolves upon me on the present occasion, I
do not think it likely that I shall be obliged to claim
your indulgence for any lengthened period.—(Hear,
hear.) You have already in your hands the accounts of
the last half-year, and I hope on looking at the face of
them the same satisfaction will be experienced by you
that is felt by your executive body at the favourable
• results which they exhibit.—(Hear, hear.) At the same
time, gentlemen, it appears to us that those accounts
tend very much to prove the causes to which I have
*frequently alluded in this room, and which account for
:that depression of railway property which I have more
,than once pointed out to you.—(llear, hear.) We
have always stated that the great depression
which has existed in the railway interest has
.arisen partly from the monetary crisis of 184'7 in con-
nexion with the railway mania, avid the effect which
it produced on the means of individuals who had pre-
viously been in the habit of spenling a portion of their
surplus money in travelling and such like amusements.
—(Hear, hear.) Secondly, gentlemen, we have always
stated that one cause for the depression of
_railway property arose from the rapid application of
capital in too great a degree to the purposes of railway
undertakings.—(Hear, hear.) Now, with regard to the
first of these causes, an examination of the accounts
will not only prove its existence, but, as is always
*the case in this country, that the lapse of time
replaces the means of individuals, and allows
them to recover in a great measure from the effects
which may have been produced by such causes as those
to which I have referred, and I trust, considering the
prospect we have of enjoying a considerably good harvest
this year, we may look forward to a still greater
increase in that which has already been called
a gradually increasing traffic.—(Hear, hear.) With re-
gard to the second cause, gentlemen, since we last met
you we have opened several additional undertakings,
but we cannot congratulate you that these undertakings
in their present results have produced that addition
to our receipts which our increased corresponding
mileage warranted us in expecting, and that fact I
think proves the existence of the second cause for the
great depression we have been suffering, namely, the too
rapid application of capital increasing in a much greater
ratio than the development of the traffic of this country.
—(llsar.) Gentleman, that I think is another reason
why every person connected with the railway interest
must concur in that policy so maturely considered and
laid down by my Lord Dalkousie, while at the Board of
Trade, and in regretting that it should have been set
aside by Parliament.—(Hear, hear.) Instead of being
allowed to distribute 'the various railway rauritica-
tions and the expenditure of our money over
a course of years, and gradually over a course
of country, we have been hurried on by legisla-
tive enactments to a premature expenditure of vast
capital, without, in point of time, securing an equal de-
velopment of traffic, which, nevertheless, must come in
the progress of time.—(Cheers.) These causes, which
have so much effect on your own property and railway
property, are proved by your own accounts. But still I
have to congratulate you upon a considerable increase in
your traffic ; while, further, an additional cause for gra-
tification will be found in the fact that this increase of traf-
fic has bean obtained without any additional working ex-
penses. In point of fact, gentleman, we have considerably
increased our mileage distance without materially in-
creasing our expenses.—(Cheers.) Gentlemen, I have
often from this chair had the pleasure ot assuring you
that proper economy was the first intention and desire
of your executive body, and I think now we may
fairly refer to the accounts of the present half-year in
'corroboration of our desire to carry that intention out.—
(Cries of " Hear, hear.") There are, however, one or
two points in connexion with those accounts to which,
for a moment or so, I desire to call your attention.
In the first place it is stated in the report that there has
.bees a diminution in the working expenses, the quota-
tion of per-cartage this half year, comparing it with the
correspond ng half of last year, is es 34 to 36 per
cent., but it is right that you should understand
that, although we are fully entitled to make
that comparison as between those two half-years, yet
there is in that mode of eating the per-tentage of the
working. expenses a considerable fallacy involved.—
(Clear, hear.) For these accounts are made up in the
same manner that the Admiralty accounts and those of the
s'eagt packet service used formerly to be made cut,
namely, including only the actual outlay. Thus
our working expenses include nothing as a return for
year expended capital, nothing for interest of capital
expended in the wear and tear of works and machinery.
—(Heer.) Nowl am induced to allude to this because
it is nut only important in itself, but although, as be-
tween ourselves as co-partners, it makes no difference
which way we make up our accounts, since it is a mere
question of arithmetic on one side, and figures on
the other, yet, when you look to these ac-
counts, you see a considerable item for sums
receivable from other companies under tho head
of returns for locomotive charges, and that circumstance
is likely to lead to confusion and misapprehension out
of doors.—(llear, hear.) That, however, which
appears to those other companies a large
item when compared with car own locomotive
expenses is, of course, the result of an agreement with
them, which takes into consideration, as an element of
charge, the inte-est which arises on the capital, which
capital has been laid out in the purchase of the working
stock.—(Cheers.) You will see, gentlemen, that thra
is a material matter to be borne in mind when We enter
here ou a discussion with regard to the question
of rating, and the low figure at which, in point
of fact, our working expenses are put down. It
should always be borne in mind that these figures
rendered to you here in this room are figures merely
between ourselves as partners, and not the figures which
came into operation when we come •to work under a
contract with separate and distinct companies.—(Hear,
hear.) We charge you not as a mercantile
man would, but the charge at rate is put down, because
in point of fact the charge for interest is not included in
it.—(Hear, hear.) Gentlemen, lam anxious to put
this (early before you, because I know that in many parts
of the country arguments have been raised against us,
founded upon this very circumstance to which I have
referred.—(Hear, hear.) It is true that in making up
our accounts we endeavour to bring all the elements
of chaege into consideration; but the accounts do
not tartly state the facts except as between
ourselves, when we say the difference of charge this
half-year is as 34 per cent. to 36 per cent. of the cor-
respeudieg half of last year. We ought to add, to make
the case appear fairly before the public, the interest
on the cost of the original locomotive power,
together with the cost of its repair.—(Flear.) Now, I
pass to another subject. We have, I believe, been
charged, by particular individuals, with entertaining a
certain latent desire to keep open the capital account.
—(Hear.) Now, I beg to assure you that if you could
suggest any step which would relieve, your directors
from the responsibility of keeping open the capital
account we will gladly adopt it, but in saying that,
and in expressing our desire that the capital ac-
count should be closed, I am bound to , tell
you that it cannot be immediately sealed up.—(Hear,
. hear.) At the last meeting, or the one before that, we
closed your capital account so far as locomotive power
was concerned ; we have nothing more to draw
from that, and should there be any necessity
to increase any portion of our locomotive power
we must come to you for the funds to do it with, but at
present I am happy to say there is no prospect of that
necessity arising.—(Cheers.) At the last meeting we
closed the capital account as regards the outlay
upon branch lines, and I am happy to say you
see in the report no charge mentioned under that
head, which will be a source of satisfaction to you,
as it is to your executive.—(Hear, hear.) Now,
gentlemen, we propose on this occasion to pro-
ceed a step further, which I hope will convince the
proprietors and the puplic that if the closing of the en-
tire capital account can be accomplished at any given
time, we are desirous of doing it.—(Loud cheers.)
We now propose to close the capital account
of the company as regards the necessity for
working stock.—(Loud cheers.) Upon three ma-
terial items, then, namely, the locomotive power, the
branches, and the building of waggons, carriages, &c.,
the capital accounts will henceforth be virtually closed,
but as regards the latter account we shall have
to bring before you proposals which will
still amount to a practical closing of the capital account.
Far this purpose, however, it will be necessary for
us to
ask you to give us a vote, on account of the addi-
tional
,working stock, since our stock of car-
riages and waggons ware both not sufficient
fur our increasing traffic. In the year 1847
our stock of working waggons was 6,236, in the year
1850 our stock of working waggons is only 7,890, and if
any Hon. Proprietor will take the trouble of considering
on the one side the increase of traffic with the in of waggons, he will see at once the neces-
sity for the proposal to which I have alluded,
and the difficulty of working our immense traffic with so
short a stook.—(Hear, hear.) With regard to carriages,
in 1847 they were 1,626, in 18i0 they are only 1,826;
but still we do not ask anything like the same increase
in the carriage; for the passenger traffic has not in-
creased like the goods traffic, and therefore we do
not find that we require so great an increase in the one
case as in the other.:--(Hear, hear.) The carriage of
goods, which stood in 1847 at 1,000,610 tons, stands in
the year 1850 at 2,000,300 tons. The amount of pas-
sengers conveyed in 1,847 was 5,495,000, it is now,
in 1850, 6,000,700. Since December, 1847, in-
chiding the • Chester and Holyhead, we have
had 223 new miles 01' railway. The new mileage
finished since 1847 has been at the rate of 42 par
cent., while the waggons. have increased only at the rate
of 17 per cent., and the carriage stock only at
the rate of 12 per cent., and we have still got
further mileage to open, though not to that
extent, but to the extent; of 75 miles, and we therefore
ask you to give us credit for a certain sum to provide
new stock.—(Hear, hear•..) We want at least 800 more
waggons, and a certain number, but not that number, of
carriages.—(Cheers.) We shall ask you to give us
credit to the extent of 8.5,0001. for the purchase of new
stock, and you should add to that sufficient credit to al-
:--lee us to build sheds for the accommodation of the stock;
\iniiifti,ie a most unsound policy to allow them to remain
out; fn 'the open air to r ot and wear away. If then you
- give- Us Ofese votes, ver shall be prepared to say the
capital account is ci osed, so far as regards the
wottiegAtock. Should , anything be required after that
we shall 'have to come to you and explain to you the
• aatcse df the requireat9 at, to get you to opea the capital

611,*-‘7"3,../
'q 0