The Sun.
London, England, 1842-02-25 00:00:00

GREAT WESTERN RAILWAY.

The 13th Half-yearly Meeting of the Directors and Proprie-
tors of this Company took place yesterday, at the Company's
Office., Prince's-street, Bank, for the purpose of receiving the
Eeport of the Directors for the last half year, to elect Directors
in the room of those who go out by rotation, and for other
business connected with the Company.
1 he Chair was taken at one o'clock, by CHARLES RUSSELL,
E'q., M.P. for Reading.
The notice convening the meetinr, having been read, and
the Corporate Seal having been fixed to the registry of Pro-
prietors,
The CHAIRMAN said that the Directors had great pleasure
in laying before the Proprietors their Report for the first six
months, during which their entire line had been opened, and
they felt confident that the result of that period would prove
highly satisfactory to the Proprietors.—( Cheers.) An
average traffic of about 13,0001. a week, if they took the
whole line, had taken place, and about 11,4001. if they took
only that portion which belonged to the Great Western Railway
Company. That, he thought, would satisfy the most sanguine
expectations, and would be a most favourable comparison with
any other railway in the kingdom.— (Cheers.) This period
tubraced an example not only of their summer traffic,
Lut the winter one, and demonstrated that there was not, as it
h id been sometimes called, merely a summer traffic, but a busi-
ness traffice ; a standing winter traffic quite proportionate to
that of their summer traffic, and equal to that of the must pros-
erous of their neighbours. He had no apprehension of their
raffic not increasing, as the traffic of all other lines had increased
subsequent to their opening. The Bristol and Exeter Railway
had proceeded towards Exeter and Cornwall, and he hoped that
means would be devised to enable the Cheltenham Company
also to proceed toward Cheltenham and Cornwall, and the
South of Wales. Their traffic in merchandise was sub •
siantially greatly on the increase, and it was very probable
I hat a new traffic both in coal and stone would be este-
hished. —(Cheers. ) He entertained great hope that the
recommendation of the Commission, appointed by the Govern-
ment, to determine the harbour for the reception of the West
India Mails would be adopted, and that Dartmouth would be-
come that harbour. An arrangement was in progress to estab-
lish a communication between Bristol and the South of
Ireland. These various sources of increase, else the fa-
cilities and growing up of travelling, he thought justified them
in forming the most sanguine expectations that their traffic was
likely to become great in the extreme. If such was the actual
slate of the flattering prospects on the credit side of their ac-
count, he hoped they would think that the debit side exhibited
an equally favourable aspect. In the course of the last six months
they had reduced their expenditure from about 45 per
cent. to 37 and one-third per cent.—(Cheers.) He was
glad to perceive that the Proprietors considered that a
considerable reduction. The Directors looked to a still
further reduction, to a proportionate reduction as their le-
ceipts should increase, and to a positive reduction when their
means for providing coke was completed. They would
then be enabled to devise other means for the more economic
management of the concerns of the Company. He could assure
them that the Directors had devoted their attention
to the means of reducing the expenditure.—(Cheers.)
At the meeting in August last the Directors laid be-
lore the meeting the estimates of the sums then re-
quired for the completion of the line. A Committee had
been recently employed, for the purpose of comparing their
actual expenditure to the 31st of December, with those esti-
mates, and it would be gratifying to learn, that the investiga-
tion ,entirely sustained the accuracy of those estimates.—
( Cheers.) He was satisfied that that must be peculiarly satisfac-
tory, especially when they recollected the extraordinury season
through which they had passed, and the great expenses entailed
on railways, particularly those of recent construction. The
Directors were desirous, if practicable, to close their general
capital account to the 31st of Dec. ; but the incomplete state
of the works at Swindon, and other minor works, had rendered
it impossible; added to this, it was thought that it would not
be wise to hurry Mr. Brunel in his final adjustment
with the contractors.—(Loud cheers.) With most of them
arrangements had been made, and they had been paid up
closely, and the Directors were anxious at the earliest period
to close their capital account.—( Cheers. ) The result of all
these favourable circumstances was to enable the Directors to
propose a dividend of six per cent. per annum for the last six
months, which they thought was a large dividend for the
first six months of the first working of the line.—
( Hear, hear, and cheers.) At the same time it was
a fair and honest dividend.—(Cheers.) They had not made it
till they had paid every shilling of interest on every debt—
( Cheers.) He did not believe that a single item had been
carried to the general capital account, which was fairly
chargeable to the account of maintenance or manage-
ment.—(Cheers.) He would now request the Secretary
to read the Report, which he trusted would prove as
aatistactory to the Proprietors as it was to the Directors. He
thought that Report would justify them in looking forward
ith the greatest reliance to the future prosperity of the enter-
prise.
The SECRETARY then read the following
REPORT:—

The Directors have on this occasion, for the first time, the pleas.
ing duty to present to the Proprietors the detailed accounts and re-
sult of six months' business on the entire line of the Great Western
Railway, together with that on a portion of the Bristol and Exeter
Railway between Bristol and Bridgewater, and of the Cheltenham
Railway between Swindon and Cirencester, both held under lease.
The gross receipts of that period up to the 31st December,
1841, were 337,35 W. 4s. 2d., of which sum 295,010/. 18s. was
earned exclusively on the Great Western Railway. A further
amount will have to appear in some subsequent account, as the re.
eipt for extra service in conveying mails, no credit having yet
been taken for working two mail trains over the Bristol and Exe-
ter line, nor for the day mail service between Bristol and London,
in consequence of the Postmaster General's notice to refer the sub-
ject to arbitration. The daily rate agreed for anterior to the per.
fiirmance of that additional duty is the only sum credited for mails
during the half-year, and pending such reference.
The number of passengers conveyed on the line between the Ist
July and 31st December, 1841, was 882,119, travelling an aggre.
gate number of 27,538,764 miles.

The expenses on the traffic are furnished in detail, and com-
prehending every office charge of the Company, they amount to
125,910/. 6s. being in the ratio of 37,323 per Cent, on the receipts.
The Directors cannot doubt that this result will prove highly sa-
tisfactory to all who have embarked property in this undertaking,
and may be considered a pleege of the future and progressive pros..
perity of the Company. The expenditute has been watched by your
Directors with the most anxious attention to economy on the one
hand, and to the requisite efficiency of their establishment, and se-
curity of travelling on the other.

The locomotive expenditure for the half.year has been 40,1101.
195., of which 22,144/. 3s. (as may be seen by the printed analysis)
was paid for coke. One half of the whole quantity of coke con-
sumed during last half-year was, of necessity, procured in London,
and of course still, at a comparatively high price,

The arrangements are now so far advanced as to admit of the
Company obtaining at Bristol, for the present half year, all the
coke required, over and above the produce of the coke ovens be.
longing to the Company at Hillingdon (which are just adequate to
supply the locomotive engines in the Paddington station), and
some reduction may consequently be anticipated in that branch of
locomotive expenditure. The repairs of engines, however, in the
present ha'f-year, appear likely to be rather heavier in proportion,
and may'perhaps absorb such contemplated saving in the price of coke.
The number of miles run by the engines during the half-year to
31sti December, was 673,398, of which 613,616 miles were
travelled by regular engines, with trains of passengers and goods,
and 26,654 miles by the assistant engine upon the Box incline.
The period has not yet arrived when any comparative returns of
revenue or traffic can be usefully offered to your notice, inasmuch
as the recent opening of portions of the line prevents statements
being deduced of the same traffic from any fbrmer corresponding
period. The ratio of expense to receipt is the only exception,
and that comparison is therefore stated in the accounts. With
reference to the Government duty, it is proper here to mention that
the payment of 15,940/. 14s. 11d. comprises a portion of that for
the month of June last (dtiring which there had been partial open.
ings of new lines), as well as the whole sum far the latter six
months of the year, and the ratio to receipt will, from that circum-
stance, appear to have been increased. The Proprietors will not
fail, of course, to perceive that IL e total expenditure of 125,9101. 6s.
for the half.) ear is not for the 118 miles of Great Western Railway
alone, but for working 169 miles of railway, including 34 public
stations, used for the convenience and accommodation of traffic
upon the three several lines.

The first charges upon the profit of the half-year's business con-
sist of the interest on the Company's debt, and the rents payable
under lease to the Bristol and Exeter Railway and to the Chelten-
ham and Great Western Union Railway Companies.
The sums respectively paid are as follows :
Balance of interest on all monies lent to the Company, after de-
ducting interest received
Bristol and Exeter Railway, one-half year 10,887 12 6
Cheltenham and Great Western Union Railway,
one-half year

8,500 0 0

£93,259 10 11
Thesedeductions from 212,446/. 16s. (of which 1,004/. 17s. 10d.
was the residue on 30th June last, and 211,441/. 18s. 2d. the
profit of the last half-year), would leave a balance of 119,187/. ss. Id,
available to the Company.

There are two points, however, which have engaged the atten-
tion of the Board,ln reference to this balance, and they are desirous
of taking the opinion of the Proprietors upon both of them
It wilt be observed, that in the account for expenditure, which
embraces every charge for keeping and maintaining the plant of
the Company in an effective state, no separate provision has been
made for a fund to meet the probable depreciation of stock which
must accrue with time. While it can be scarcely disputed, that
prudence and foresight should dictate a certain provision to meet
such an anticipated reduction of value, the Directors do not think
any benefit is derived from pretending to ascertain periodically the
opinions of parties, however competent, as to the then supposed
value of such property. On the contrary, they ti ink injustice may
sometimes result from the adoption of any such arbitrary system,
and after devoting their best consideration to the subject, they
would much prefer that a fixed scale of amount should be deter-
mined to be set apart for a period of years, such as may be reason.
ably estimated to meet the entire depreciation for the time, so that
in the interval this accumulating sum may gradually and equally
fall over each period, and therefore equitably upon all who may,
:torn time to time, be the holders of the Company's Stock.
If this view shall be acquiesced in, the Directors would recom-
mend that 20,0001. should be annually appropriated for a period of
ten years, to redeem the depreciated value in the first cost of the
locomotive engines, carriages, and other moveable stock of the
maintainedCb
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to be submitted for the consideration of the
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or before the Ist June, 1841.

Notwithstanding every exertion on the part of the Bristol and
Exeter Railway Company, the contingency so provided for did
actually occur, and it was not until the 14th day of that month
that the line to Bridgewater was ready for use. This circumstance
accounts for the diminished payment of rent for the half.year, viz.:—
Moiety of the fixed rent, say 15,0001. per annum....£7,500 0 0
Ascertained tollage on passengers and goods ......... 3,377 12 6

£10,877 12 6
Under the terms of the lease, the same reduced scale of rent
would continue payable until the 31st of March, after which the
Bristol and Exeter Railway Company will be entitled to receive
rent at the full rate of 00,000/ per annum, besides the agreed
tat age on passengers, merchandise, and coal. The circumstances
under which this heavy infliction of a penalty was sustained by that
Company, became the subject of discussion between the two Boards,
during which it was apparent that your Directors could not, upon
their own responsibility, undertake in any way to release them from
any portion of the loss which had been so indisputably incurred.
Your Directors, in the course of several conferences, were how_
ever led to entertain the belief that it might be arranged for the
mutual interest of both Companies conditionally to concede the pay-
ment of the greater portion of that difference of rent, provided they
could thereby secure fixed and advantageous periods for the future
opening of the remainder of that railway, to which the Bristol and
Exeter Railway Company had not bound themselves by any co.
venant in the original lease. When it is considered that the main
benefits contemplated in working that line, were to bring and
secure the Devonshire and Cornish traffic,
more directly to the Great
Western Railway, it must be apparent that the acceleration of
the progress and completion of line beyond Bridgewater, must far
outweigh any consideration of such saving as could be obtained
from the reduced rent, during only a few months of the first year.
To accomplish this purpose, a negotiation ensued between the two
Companies, and it has been reciprocally agreed by them to submit
to their respective Proprietors an arrangement of which the fol-
lowing is the outline, which your Directors strongly recommend
of ;Qui ;auction and approval.