The Sun.
London, England, 1850-08-16 00:00:00

THE SUN,

for it is a most unsound policy to allow them to remain
out in the open air to rot and wear away. If then you
give us these votes, we shall be prepared to say the
capital account is closed, so far as regards the
working stock. Should anything be required after that
we shall have to come to you and explain to you the
cause of the requirement, to get you to open the capital
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 fir 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 a-e very desirous of up-
holding the policy which the proprietors themselves at
the last genes al meeting voluntarily adopted of cuntrnni ng
the dividend at five per cent. until your executive body
are able to come forward and say pal can permanrtly
rise to a larger dividend. It will be impossible for us to
risk going beyond five per cent. until we have dis-
posed of all the liabilities of the company. I am
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
from it, in my capacity of banker in the city.
I do not receive a single farthing benefit from it, and I
beg at once 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 145,0004 was 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
be been in possession of your money.—(Cheers.) The
Hoii. Gentleman then proceeded to 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. lie 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 importth]ce 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 Act
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 anti directors should act iu unison. I be-
lieve we can have but one common interest is it.
Your directors are nothing but proprietors, and
some of theta la7ge proprietors. They have the
advantage 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 shoulct devise such a plan as will ensure
that unity of action, and at the same time that attain-
ment 01 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 positiou than that on which I have
the satisfaction to congratulate you to day.—(Applause.)
The SECRETARY then read the report, as WHOA'S:—

" Afier the depression which has af&cted the revenue
of the company in the passenger department for several
halt-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•
nest'. 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 opting of the
line between Leeds and Manchester, it is satistactory to
add that generally there is every appearance of revival.
" Thy merchandise department, in all its branches,
I again shows a great increase over the corresponding
period of 1849.

" he accounts which have been circulated give the
foliow•iug results:—

1850, 1819. Increase
. .
Pat-scngers, Parce7s, .. 647 917 .. 26,303
Aferchtuicli.se, Including Coals & Cattle 435,959 .. 335,021 .. 50,938

£1,110,179 £1,032,938 £77,21
" In estimating this improvement in the traffic it mus

not be forgotten, that during the hal'-year just concluded
the cumpaey has he en .ojected at various points to
severe competition, and that many of the lines calculated
to draw off a portion of the traffic long enjoyed by the
London aril North-Westrern have been in full operation.
" It might not unreaeonaely have been expected thet
with in large an addition to tbe receipts. principally in
merchandise, and with zen 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 1349 it only 7,4571.; the net
additional profit for the six months is therefore 69,784/.
above that of the half-year ending 30th June, 1849. The
per-cent ige 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 necessary expenditure has been incurred to
maintain the property in tbe fullest efficiency, and the
directors keep this important point prominently in view;
they hope, however, to be eaabled, consistently with this
primary duty, to reduce still further the charges for-
working, although it must be remembered that each suc-
cessive retreuehment leaves less margin for future saving,
end it is now rather upon enlarged traffic. co6ducted '
without much increase of expense, than to further re-
dection in working charges that; the proprietors must
depend for future auementation of profits.
e With the 'view of stimulating the passenger traffic,
the directors have reduced the sheet tares on verieus
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 slistricto
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.
rne directors have to report with reference to the
Parliamentary Bile of which drafts were laid before the
lest general sheeting,—
" That the Bill promoted by the East and West India
Dock Railway Company has become law in terms sub-
stantial,y the same as then submitted_

The gill promoted by the :_•hropshire 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 Holyhea,a
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 Couimitttee 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 cared upon to intimate to the
board of the Chester and Holyhead Cimpany 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 absndon-
ment of the measure will necessarily postpone ar-
rangements, desirat.le in a public point of view, for
perfecting the most direct and speedy communication
with Ireland. Your directors regret, but are in no way
respon.ible 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 comp Any.
" 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 of
that Company are adjusted on terms mutually satisfac-
tory,__ _ _

' The Great Nortbern Railway was opened for traffic
between Lqndon and Peterborough on the 7th inst., and
arrangements have been agreed to, consistent with the
fair inrerests of all partiew.

" 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,
tnat they cannot, consistently with 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-
coln:,hire, 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
fulleit 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, bat they regret_ that the contrary is the fact
as regards the lines farther north in which you are pro-
prietors. Negotiations, however, are in • contemplation
for obtaining the sanction of Parliament to arrange-
La:as betvetea tha Calaticzian th3reholder3 and Cult.

LONDON,

leased and guaranteed lines, on the basis of mutual and
necessary concessions; should these be brought to a
successful issue, (an event which would be benefidial to
all parties interested), some return upon your capital in-
v. sled iu that undertaking may be anticipated; and in
the meantime it will be observed, that interest upon the
amouut expended is borne by revenue.
"The lines of the Buckinghamshire Railway, and of the
Rugby and Stamford, were partially opened for traffic on
the Ist of May.

" The line from Coventry to Nuneaton will be opened
for traffic on the Ist September ; and the East and West
India Dock line, in which the Company are interested,
will shortly be opened from Fenchurch-street to Is-
lington.
" The auditors having appended to their report a state-
ment of the expenditure ott capital account in the form'
ordered by the resolution of the proprietors, the directors
have only to repeat their belief that the credit balance
will, as stated in their previous report, suffice
to cover all the works contemplated in the estimate
submitted to the proprietors at their last meeting. They
think it right, however, to name to the proprietors,
that in reference to the construction of the fines in York-
shire, Ix which this company are now responsible, there
are some matters the subject of arbitratiun or legal pro-
cess. The board are advised, both by the local directors
and by their solicitors, that the claims are altogether
unfounded, but for obvious reasons it is inexpedient to
enter into particulars.
" Referring to the stock of carriages and waggons
repotted to tne last meeting as necessary on the opening
of 113 miles of additional railway, the Board have re-
ceived from the general macager a report and estimate
in detail of the stock necessary fur the new lines. The
cost, including shed room, fur covering the carriages,
will be 95,000/. This sum will suffice to stock the new
lines, and your directors are prepared to recommend
that any additional stock that may be required by A n
increase of traffic shall be provided out of revenue, the
cost being spread over a limited number of years; thus
practically clo,ing the capital account as respects this
most important branch of the concern.
" The diminished amount paid during the half year
on capital account has enabled the directors to reduce
considerably the bond debt, and they have availed them-
, selves of the state of the money market to renew or re-
place bonds, at the rate of 3i and 3 per cent. There
has been paid off, or renewed, since the 31st December,
1849, 1,188,9254 originally, borrowed at 5 per cent.,
leaving the debt at the present date 588,0221. less than
on the Ist January last.
From the statement of the) half-year'st

Accounts it will be seen that the net
Proceeds are ...
To which must be added the Balance
carried forward from last Account

£515,479 18 1
Less!, further allowance for renewal of
Rails

Showing a disposable balance of £605,481 15 7
In pursuance of the policy adopted by the proprietors
at the last general meeting, the directors recommend a
dividend of 21. 10s. per cent. for the six months, amount-
ing to 460,760/. 14s. 5d., leaving a balance of 144,721/.
ls. 2d. to be carried to the next half year's account."
The CHAIRMAN moved that the report as read be re-
ceived and adopted, and printed and circulated among
the proprietors.
A SHAREHOLDER asked the Chairman whether ar-
rangements with regard to the Great Western Railway
Company for tha purpose of preventing the unneces-
sary waste of capital in the construction of branch rail-
ways, and also with respect to the facilitating the tran-
sport of traffic, were likely soon to be carried out, and
setiondly whether he could state precisely the ti me
when the capital account would be closed?
The CHAIRMAN replied that the directors had made a
proposition to the Great Western Railway Company
Which was still before them, having both the purposes
to which the Han. proprietor referred; and they were
awaiting the answer of the Groat Western Company.
With regard to the second qaestion, he could not enter
into any particulars, but such as would be vague and
unsarisf,:ctory to the Hon. Proprietor.
Mr. SANDYS asked whether the 90,000/., the increased
demand upon the revenue which was to take place, was
to come out of the whole year, or the next half-year?
The CHAIRMAN said, provided they opened out all the
lines now in the course of construction, the amount that
would be set against the halt-year would be 80,0004 It
was not a matter of certainty that all those lines
would be opened, but he was anxious that the proprie-
tors should have before them the probable amount of
liabilities.
Mr.,SANDve asked what was the, number of miles
still to be opened, and when the lines would be opened?
The CHAIRMAN said, with regard to the date of open-
ing, he was not in a situation to give an exact answer to
the qtiestion. He thought that the number of miles that
had to be opened would be about 75.
In reply to another proprietor,
The CHAIRMAN said the works at the Birmingham
station were suspended. But the directors would be able
to afford full aecomraodation to the Own of Birming-
ham, without going to the full expense that was at one
time contemplated.—(Applause.)
In answer to a question by Mr. ROBERT MOON, who
reviewed the expenditure on account of the Bucking-
ham.hire Railway, and with respect to the Birmingham,
Wolverhampton, and Stour Valley Railway Company.
The CHAIRMAN said although there were certain
heavy charges on those accounts; yet there was credit
to be taken for the receipts of the company on those
lines, whatever they might be, find on some of the lines
the amount would be very considerable.
A PROPRIETOR asked when the Stour Valley line
would be opened ?
TOO CHAIRMAN'S impression was that it would be
opened :ernevvilere about the end of the year. There
were certain arrangements connected more pariiculirly
with the town of -Birmingham, which prevented him
giving a more direct answer than that.
Another PROPRIETOR asked if the London and North-
Western Company bad guaranteed the Caledonian
Company, which was in great difficultie,, in fact in a
state of bankruptcy? An impression had gone forth
some time since that this company had guaranteed that

company,
The CHAIRMAN said' the best answer to the hon. pro-
prietor'a question would be that if this company had
guaranteed the Caledonian Company they would not have
been in a state of bankruptcy.—(Hear, hear, and laugh-
ter.) He had the satisfaction of telling the Hon. Pro-
prietor that this Company had no engagement with the
Caledonian Railway Company. They were anxious to
see them out of their difficulties, but further than that the
London and North Western had no concern with them.
A SHAREHOLDER called the attention of the meeting
to the loss arising to the company from the re-
ceipt of light gold. On the last occasion the loss
amounted to 1,4001.; but, owing to his suggestion
that scales to weigh the gold_ should be pro-
vided at each station, it had diminished to 4001.
Ele complained of the large amount of commission
(1,500/.) paid for the collection of the debts of the com-

pany, arising on the merchant traffic, and suggested

thai:it might be considerably reduced by a different ar-
rangement. To the item 41,6001, which had been paid to
the Guarante;! Society, he requested the chairman to give
some explanation to the meeting. He then alluded to
.the propriety of establishing a central place on the line
pstterns and models might be seen of the articles
and materials in respect of which the company had ad-
vertised fur contracts, observing that contractors were
placed under great difficulties from not knowing
thet exact nature of what.they agreed to supply. He had
hi:resell' sent in a number ot contracts, but tor some rea-
son or other he had never had the good fortune to suc-
cee:!.—(ll-ar.)
Mr. WILLIAMS proposed that no banker should be
allow el to have accounts with the company unless !
they received the gold just as it was received
by the company.—(Laughter.) He thought all would
agree with him, when he said that the 3auk of England,
after it had received light gold and made deductions for
it, was .in the constant habit of pitying it back again.
The CHAIRMAN said the amount (Musson light gold bad
been considerably reduced, for after the last meeting scelea
were ordered, and they had been used as frequently as
possible, but ho could not disguise the fact that this
course has-given very great offence to the public, for it
often happened that passengers were detained getting
their tickets. However, the directors would endeavour
to do their best; but he thought it would be unrea-
sonable to ask their bunkers to take light coin as if they
receives it in full.—(Hear.) As regarded the recom-
mendation for' the exhibition cf models and patterns for
the guidance ot contractors, he thought the subject was
well worthy consideration, but if the honourable pro-
prietor had been unsuccessful, ho thought his con-
' tracts must have been not so good nor quite
so low as others, for the directors had
worked most industriously to obtain the best contracts,
and had shown no partiality to any individuaL—(Hear.)
He did not think 1,5001. for agents' _commission on the
collection of debts was a very large sum to pay, con-
sidering the magnitude of the accounts they
had to deal with, particularly as regarded
the goods traffic. With regard to the Guarantee
Society, he said the amount set down in the accounts
would not occur again, but the directors thought it only
right when they called upon their clerks to obtain the
security of the Guarantee Society, in the place of the
private securities which they had previously furnished,
that the expense of the new bonds shined be paid
by the company.—(Hear, bear.) The security
of the Guarantee Society was undoubted, and it, besides
accomplished a moral good, because previous to be-
coming security for any clerk an investigation was in-
stituted into his moral character.—(Elear.)
After some further discussion,

WILLIAMS withdrew his motion as an amendment
to the report, but intimated that he would propose it as a
substantial motion.

A SHAREHOLDER wished to know whether any, or
what arrangement bad been made with the Scottish
Central Company with regard to the working of the
line ?

The CHAIRMAN replied, that no arrangement had
been made, and, in the present position of things between
the two companies, he thought it would be prealature to
attempt to make any arrangement. They were, how-
ever, quite ready to receive aoy overtures which might
come from that company.
A SHAREHOLDER wished to know whether the com-
pany had discontinued manufacturing its own locomotive
engines. i/e understood it would be much cheaper and
more economical t, hare them made by contract.
The CHAIRMAN said the nwnber of new engines which
they would now require would be comparatively
limited, but when the old enginesones to
worn out, the company would make new
as they had
all the necessary materials for the
supply their place at their own shops,
purpose, it would be
throwing away profit not to employ those
materials.
In reply.to another shareholder,w
C
2 rt3llWav
__rming 212
c'.;utrol over the Oxfara 41:13 Bi
. The CHAIM:A.IC said the Great e.st
,omp_any had