The Sun.
London, England, 1868-02-28 00:00:00

THE SUN, LONDON, FRIDAY EV:ENING; FEBRUARY 28, 1868.

RAILWAY INTELLIGENCE.

SOUTH-EASTERN.
The half-yearly general meeting of this company
was held yesterday at the City Terminus Hotel,
Cannon-street—Mr. E. W.Watkin, M.P., the chair-
man, presided.
Mr. Chubb, the secretary, having read the no-
tice convening the meeting, the report, an abstract
of which appeared in The Sun, was taken as read.
The CHAIRMAN, in moving the adoption of the
report, said that since the railway was opened for
traffic they had carried 400,000,000 passengers and
10,000,000 tons of merchandise. The advantage to
the district through which the line passed amounted
to a much greater sum than the whole of the com-
pany's capital. The traffic was commenced on the
24 miles of the line from Lewisham to Tunbridge
on the 3d inst. for goods traffic, but it would not be
ready for passengers until the early part of next
month. It was a matter of considerable regret to
him that the opening of that line had been so often
postponed. He had been very much disappointed
in that respect, because the effect had been to add
to the cost of the railway, arising from difficulties
in completing the works. Those additions to the
cost had made it exceed the directors' estimate of
1866. They, of course, got nothing in the shape of
dividend to cover interest on the capital expended
on the works. He proposed to sell the extra mate-
rials and other property left after the construction
of this line, as, owing to the failure of the
contractor, the works had been finished by their
own engineer. He had gone over the line, and
he could say that it had been constructed
with great solidity and economy ; but he was
sorry to say they had in the district through
which it passed been met in too many cases by
obstruction and extortion. The shareholders had
passed a resolution on a former occasion to the
effect that no capital should be expended on new
works until the dividend on the ordinary stock was
increased to 5 per cent. per annum. (Cheers.) To
that order he would pay implicit obedience. Let the
time be long or short, he never would allow any
amount to be expended unless it would produce
them 5 per cent. The Acts of Parliament for pro-
jected lines by the company involved an estimated
outlay of £782,000. For some of these they would
require an extension of time. The proposed Green-
wich and Woolwich line involved a capital of
£340,000 ; the extension to Cranbrook a capital of
£207,000 ; the Hythe and Sandgate a capital of
£71,000 ; the Tenterden, £91,000 ; and another
line £73,000. He proposed that the Greenwich and
Woolwich line should be abandoned, as it was to
form an extension of the Chatham and Dover,
Greenwich line, over which the latter were to have
running powers, and in return the Chatham Com-
pany was to give the South-Eastern Company run-
ning powers over the extension line to the Crystal
Palace ; but, as the Chatham Company were unable
to carry out that arrangement, he proposed they
should abandon the making of the Greenwich and
Woolwich, which would reduce their liability to
£442,000. The Hythe and Sandgate was one of
those projects that might be abandoned, reducing
the liability to £367,000. There was the Cran-
brook line, with regard to which some pledges had
been given to the landowners in the district, but
the company could not raise money on preference
shares for that purpose. If the landowners and
others in the district would provide the capital, the
South-Eastern might guarantee 3 per cent. on the
required capital, and work the line on reasonable
terms. The revenue account for the past half-year
was satisfactory, and yielded a bona fide dividend of
4 per cent. The net earnings were equivalent to
£4 12s. 6d. per cent. on the capital expended on
lines in operation ; but, as it was thought advisable
to charge the interest on unproductive works
to revenue, it reduced the dividend to
4 per cent. He was bound to say at the
same time that the interest of capital expended
on new works was an element of their cost during
construction, and he therefore did not agree in the
opinion that it was a legitimate charge on revenue.
Were it not for engineering difficulties and other
delays they would have opened the direct Tunbridge
line for traffic two years ago. They had no capital
now to pay interest oat of, and therefore they put
the last half-year's interest to revenue. The direc-
tors published a monthly statement of their traffic
receipts and expenses, so that any shareholder might
judge for himself as to what amount of net receipts
would be available for dividend during each half-
year..
It would therefore be the fault of the share-
holders if they did not know quite as well as the
directors what dividend was likely to be declared.
(llear, hear.) They had not expended any capital
during the half-year on new works ; but only for
the completion of old contracts, and, moreover, they
bad no bill in Parliament to authorise new works.
(Hear, hear.) They had had an increase in the
receipts of the past half-year of £BO,OOO over those
of the corresponding period in 1866, and a reduc-
tion in the working expenses of £7,000, and he
believed that was a thoroughly honest account.
With regard to the fares to various places, they
had made some revision in them.. Some were re-
duced, but a much greater number were increased
in a reasonable and fair way, to which the real
public did not object. The reduction of expenses
had been caused by a fall in the price of materials
and other matters, for which the directors asked for
no credit. Considerable economies had been effected
by Mr. Eborall, their general manager, who had
managed to place a staff on the new line out of the
existing staff. They had run 14,000 train miles
less in the past half-year, because they were deter-
mined not to run trains that did not pay. The per-
manent way and rolling stock were maintained in
first-rate order, and he mentioned that during the
past ten years the company had expended £468,000
in renewal of engines and tenders, and £502,000 in
renewal of permanent way, making in the course
of ten years an outlay of £1,000,000. The aver-
age annual outlay on the permanent way for re-
pairs and renewals had been £345 per mile, but
in the past year they had expended £362 per
mile, £lB per mile more than the average of
ten beingears. Their working expenses were less per
train line than the Lancashire and Yorkshire, the
London
mpdeoenaanndy had now North
Western,more andthan a
otnhaermgprleeastulpinpelsy.
The
of rolling stock ; they had 243 engines, of which 45
engines were held in reserve. They estimated the
increased traffic from the French Exhibition at only
£34,700, and the remainder arose from the general
development of traffic over their lines. The great
advantages of their Charing-cross and Cannon-street
stations were gradually telling upon the general
traffic. The season tickets on the line in 1859
amounted to 27,400, but in 1867 they amounted to
58,690, showing a very considerable increase. He
then stated that 12 engines and 170 carriages had
been fitted up with signal apparatus, and had acted
perfectly. Their steamboats had run 26,000 miles
in the course of the past half year, some at the rate
of 14 statute miles per hour, and the new boats at
17i miles per hour with great success. When the
working of the Chatham and Dover boats and the
South Eastern boats was under one management
considerable economy would be the result, and also
in working the trains of the three companies. lie
then adverted to the offers they had made to the
London and South Western Railway Company to
use their Charing-cross line and Cannon-street sta-
tion. They had offered to refer the matter to the
Board of Trade, and subsequently to Mr. Moon,
chairman of the North Western Railway, but those
offers were rejected by the South Western Com-
pany. It must be clear that there was some differ-
ence in carrying passengers over such a line as the
London and South Western that bad cost £400,000
a mile, and the Charing-cross line that had cost
£2,000,000 per mile. It would be their duty to
oppose the bill of the London and South Western
Company. lie then explained that it was proposed
to make some modifications in the terms of agree-
ment between the South Eastern and London,
Brighton, and South Coast Railway Companies for
the joint working of those lines, so as to enable each
company to ascertain what the right proportions of
traffic should be, with a view to prevent any mis-
take in arriving at a just conclusion. The whole
of the facts would be submitted to Sir W. Erle for
his decision. On the Ist of January, 1869, the
final period would be fixed for a settlement of the

whole question and the adjustment of thL,' Propor• •
tion of traffic to which each should be entitle 04. Th e
joint committee would consist of three me anbers,
each of the directors of the South-Easters i and
Brighton Companies, and two members o f the
London, Chatham, and Dover Board, makin g the
whole number eight, and instead of being appointed
by the respective boards, the shareholders of each
company would have the opportunity of decidi og as
to who should represent them on the joint corn -
mittee. It was also proposed that each member c
the joint committee should hold a higher qualifies ,-
tion than £2,000 stock. There would also be mee
sures adopted with a view to prevent the outlay of
capital as much as possible. The terms upon whi• ch
they were to work the London, Chatham, a: ad
Dover traffic would be decided by arbitration. Ihe
bill before Parliament would, he trusted, give t hem
the requisite power to carry out the arranger') .ent.
He believed the advantages to the three comp', ales
would be very considerable from the joint wort
(Cheers.)
The Hon. J. BYNG seconded the motion for• the
adoption of the report.
Mr. PAGAN suggested that a small committee of
shareholders of each company should be appoil ited
to bring about, if passible, an amicable arra) age-
ment between the South-Eastern and South-We! tern
companies respecting the use of the Charing-cross
line and Cannon-street station. He thought that
two or three sensible men on each side would soon
arrive at a practical conclusion.
After some observations by Mr. Adams, Mr.
Morpeth, Mr. Puncher, and Mr. Harley,
The CHAIRMAN replied—He believed that Par-
liament never intended that the South-Western
Company should be accommodated on the terms
they had stated. He would be very happy to see a
committee appointed covsisting of Mr. Pagan, Mr.
Grisewood, and Mr. R. Cave, to take the matter in
hand for this company. They had stopped the cheap
Sunday trains during the past half-year, and would
not renew them except on better terms and condi-
tions.
The report was unanimously adopted ; a divi-
dend at the rate of 4 per cent. per annum was de-
clared on the ordinary stock for the past half-year
ending January the 31st; and £lOO a year was
voted for services in the church at Ashford.
The retiring directors, Mr. Watkin, M.P., the
Hon. J. Byng, Mr. Barlow, and Captain Warren
were unanimously re-elected.
The CHAIRMAN explained that he had recently
joined the Board of the Great Eastern for a short
time to asssist Lord Cranborne in his inquiries to
ascertain the facts, and if possible to improve the
position of the company. He did not intend to ac-
cept anything for his services at the Great Eastern
Board.
Mr. Pagan, Mr. Grisewood, and Mr. Cave were
unanimously appointed a committee of mediation
in respect of the question between the South-Eastern
and South-Western Companies.
Mr. C. Whetham, the retiring auditor, was re-
elected ; and Mr. Waterhouse ;was elected. auditor
of the company's debenture trust account.
The meeting was then made special, and the me-
morandum of agreement signed by the chairman of
the South-Eastern, the London, Brighton, and
South Coast, and the London, Chatham, and Dover
Railway Companies was confirmed, subject to
such modifications as might be determined on by
the directors.
The proceedings concluded with a vote of thanks
to the chairman, and also to Mr. Eborall, the gene-
ral manager.

LONDON, CHATHAM, AND DOVER.
The half-yearly general meeting of this company
was held at the Victoria Station yesterday ; Mr._G.

liodgkinson, M.P., in the chair.
The report, an abstract of which has appeared in
The Sun, was taken as read.
The CHAIRMAN, in moving the adoption of the
report, said they were assembled at the first ordi-
nary general meeting of shareholders, pursuant to
the Arrangement Act of last Session, which pro-
vided that separate general meetings of share-
holders and mortgagees should be held in the last
weeks of February and August each year. As re-
garded the report, the directors had endeavoured
to give every possible information as to the pro-
perty of the shareholders, with the view of enabling
them to judge of its position and value. They had
extenuated nothing that was evil arising out of

the past history and management of the company,
neither were they actuated in the preparation of
the report by any desire to exaggerate the diffi-
culties of their position. (Hear, hear.) They
had not felt themselves called upon by any facts
within their knowledge to say anything which
could encourage those feelings of despair and
foster those forebodings of utter ruin which, with
regard to the affairs of this company, were indulged
in by some persons. (Hear, hear.) Neither had
they ventured into the regions of prophecy by hold-
ing out any expectations which possibly the future
might fail to ratify. They had simply contented
themselves with placing before the shareholders a
complete statement of the facts of the case, so that
each might judge for himself quite as well as the
directors as to what was the present position of the
company and its future prospects. With regard to
the traffic and cost of working, the proportion be-
tween the two was the keystone of their hopes.
Each year for several years they were entitled, under
their agreement with the South-Eastern Company,
to a considerable share of its continental traffic.
Then there were the Metropolitan Extensions, along
which and on each side houses were being erected
in large numbers, and there existed an enormous
amount of building land still to be covered. Judging
from the experience of other lines, it was reasonable
to expect at least 10 per cent. increase on the traffic
of those extensions each year, and treble the present
traffic in less than 12 years. If that proved to be
the case, the revenue would be amply sufficient to
pay not only the debenture holders and other cre-
ditors of the company, but a dividend to the share-
holders. In the traffic of the last half-year there
had been an increase of £47,615 over the corres-
ponding half of the previous year. Large as it was,
this increase had been earned at considerable dis-
advantage, arising from the stoppage of this com-
pany's traffic on the Metropolitan Company's sys-
tem, in consequence of the laying down of two
additional lines for the accommodation of the traffic
of this and the Great Northern Company. The
percentage of the working expenses had been re-
duced, and not only so, but the actual amount had
also been reduced, notwithstanding the increased
working. (Hear, hear.) He had the satisfaction of
knowing that that had been effected by no cooking
of accounts. (Hear, hear.) Referring next to the
law expenses, he said that £5,000 had been put
down as the proportion towards this half-year.
The board were most anxious, if they erred at all,
to err by placing a large amount to the debit of re-
venue. With a view to the reduction of the law
charges, a law clerk had been appointed, and the
result of that appointment, he trusted, would be a
considerable reduction. The next subject was the
Arrangement Act of last session. One of itspost
important provisions had the effect of staying the
proceedings in a very large number of suits, which
were eating up the capital of the company by daily
expenses; and the directors could now devote their
attention to the realising of surplus lands, and by
degrees get rid of those liabilities which a great
number of persons were seeking to enforce in the
Court of Chancery. Another provision in the act
enabled them to raise new capital, but they had not
availed themselves of it, and did not intend to do so
until the various questions of property were settled
by the Court. (Heir, hear.) With a view to their
settlement once and for all a petition had been pre-
pared which it was intended to present to the Lords
Justices, and he was not without hope that before
the shareholders met again a decision would be ob-
tained thereon. With regard to the litigation with
the General Credit Company and Imperiol Mercan-
tile Company, while the claims were sub judice it
was improper to discuss publicly the arguments by
which they were supported. Since the issue of the
report, which placed the shareholders in possession
of such facts as the directors believed to be
authentic, the General Credit Company had issued
a counter-statement, and there had appeared in
the newspapers numerous letters from anonymous

writers. The charges contained in these he pro-
ceeded to rebut, concluding by assuring the meet-
ing that the board had no desire to engage in liti-
gation or to continue it one moment longer than it
was necessary for the shareholders' interest.
Mr. HILLIARD seconded the motion for the adop-
tion of the report.

Several shareholders, among them Mr. Turner,
Mr. Corbett, Mr. Hartridge, Mr. Price, and Sir R.
Jervis, made observations on the report, and, in
reply to one of them,

The CHAIRMAN said there were no dissensions at
the board which could really affect the material
interests of the company. It was true that the
directors were not the most happy family in the
world, but, with one exception, they got on pretty
well together. (Cries of " Name, name !") He
would rather not name, but simply observe that a
minority of one was powerless in the progress of
business. (Hear.)
The motion for the adoption of the report was
carried.

Mr. Hodgkinson, Mr. Hilliard, and Mr. Waiter
were re-elected directors.
The CHAIRMAN then submitted the working
agreement between this company and the South-
Eastern and Brighton Companies, subject to such
modifications and provisions as might be thought
necessary by the directors.
The general tone of the observations offered upon
the resolution was favourable to its adoption.
Mr. HARRIS, who proposed an amendment, with-
drew it, and the resolution was unanimously
adopted.
Mr. PRICE proposed, with the concurrence of
the chairman, a resolution having for its object a
closer supervision of the proposed new works than
had hitherto been permitted to shareholders.
Mr. HARTRIDGE seconded the motion, which was
carried ; and the proceedings closed with a vote of
thanks to the chairman.

CRYSTAL PALACE AND SOUTH LONDON JUNCTION.
The directors state in their report that since the
last half-yearly meeting their endeavours to place
the affairs of the company in a more satisfactory
position has been unceasing. The important ques-
tions at iesue between the company and the London,
Chatham, and Dover Company would, in a great
measure be determined by the suit instituted by a
debenture-holder in the Court of Chancery, in
which the company were made joint defendants
with the London, Chatham, and Dover Company
The necessity of an application to Parliament for
powers to relieve this company's undertaking from
its present state of isolation from having no con-
nection with the Metropolitan system was strongly
urged upon the Board at the last half-yearly meet-
ing. The directors were not yet in a position to
state whether a sufficient sum would be subscribed
by the debenture-holders and shareholders to enable
them to proceed with the Bill, but they hoped that
those who had not expressed themselves willing to
contribute would at once intimate their consent to
do so. The directors hoped there was a prospect of
an amicable settlement of all matters in difference
with the London, Chatham, and Dover Railway
Company, provided the projected communieation
could be effected. The sale of the surplus land was
nearly completed. The exact amount it would
produce could not at present be stated, but it was
estimated that at least £5,000 would be realised
after payment of the loans charged upon it. The
capital account showed that £861,367 had been
expended, leaving a balance of £20,584.