The Sun.
London, England, 1845-11-27 00:00:00

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Mr. RHODES said that he wished to say a few words
in reply to the last speaker. He had purchased 450
shares at 12 premium, and he still retained a large por-
tion of them, and in his opinion the arrangement sug-
ges:ed at present would not entirely meet his views. In
February, 1843, it was proposed to extend the Northern
and Eastern Counties Railway to Newport, and it was
proposed to the shareholders to take shares at a
guarantee return of five per cent. The calls were to
be made immediately, as the Directors were supposed to
want the money. Afterwards, in consequence of a rise
in the market, the Directors said that they would make
no call on those shares, and as they had been bought at
a premium, many of the shareholders suffered severely,
especially those in the country.
The CHAIRMAN said, that in that case the Directors did
not want the money, and they did not make a call on the
shares in order that it might be an inilucement for taking
them. The call could only be made when the bands be-
came due, and he would say that the Directors had con-
ducted themselves in that matter so as to cause a benefit

to the Shareholders.
lir. EltonEs said that, as they did not want the money,
aecordirg to the Chairman's statement, what would they
have done with it if the calls had been made ?
The CHAIRMAN said that they would have had to con-
sider how to employ it.
Mr. FELL said that it appeared to him that the Share-
holders in this railway who took two new letters of allot-
ment would have five percent. guaranteed to them, and a
share in the profits in case they returned more than that
amount. But they had no protection against any ex-
travagalce in the working cf the line. The amount of
the working expenses was to be thirty-six per cent. They
had six Directors in a body of eighteen Directors in the
Eastern Counties hoe, being just one third. Six to cope
with twelve, and in case of any separation of the
:Northern and Eastern from the Eastern Counties, what
guarantee had they that the line would not be worked
at a great expense by the Easton Counties, who had
undertaken to work it ?
The CHAIRMAN said that the working of the line
could not cost more than the sum mentioned, viz., 36
per cent. The question did not apply, and it would be
impossible, as they had no severe gradients, to get it

up. ess high as 36 per cent.
Mr. PELL asked if the expense did not on the
Eastern Counties amount to more than 36 per cent. on

the traffic ?
The CHAIRMAN said, that at the first starting of any
line the expenses would be great, in consequence of the
difficulty of organising a large staff of servants, but
when they were properly organised the expense would
not be more than 36 per cent.
A SHAREHOLDER, whose name we did not hear,
rose and said, that the proposition was one that the
Shareholders ought not to agree to. The Eastern
Counties shares were now at a premium, and it was not
to be supposed but that if four and a half millions of
money were to be raised on new shares, that quantity of
shares would send those now at premium down to a
disc cunt. Besides, in his opinion, the amount of money
that they would require to raise on new shares would
be nearly 9,000,0001. instead of 4,500,0001.
Mr. WILLIAMS said that their receipts were at present
nearly 7,0001. per week, which would give a dividend of
five per cent. on the capital. They might assume that if
the working expenses of the line did not exceed 36 per
cent., which would give about one-fifth of the receipts for
working, that if they received 1,2501., the profit would
amount to 1,0001. They had every reason to expect an
increase in their traffic, and he looked forward confi-
dently to the time when they should receive 10 per cent.
There was every reason to believe that, in a short time,
the dividend would be six and two-thirds, and why
should they give that up for a guarantee of 6 per cent.,
having a prospect of 10 per cent., independently of their
York traffic? The least offer that could have been made
was a guarantee of 7} per cent.
The CHAIRMAN said, that if such an offer were made,
they could not have any chance of participation in their
future profits. The question was, however, one of mere
speculation, and those who chose to be content with what
they had already could do so, while those who chose to
take the chance of more had an opportunity of doing so.
Mr. GURDEN said that he did not see how they
had any right to bind absent Proprietors by their
proceedings of to-day. They were an adjourned
meeting in order to consider the remlution that
was laid before them at their last meeting ;
but as the resolution brought forward to-day was to.
tally different, he could not see how they ought to be
binding on persons who were absent. He should like to
know the effect of the proposition on Vie quartereehare-
holders if it were carried. If they declined taking any
part in it, they would receive nothing fur four years,
as 6 per cent. was already guaranteed for that time. He
had great respect for Mr. Hudson, but if he were with
him sitting at that table, he had no doubt he should be
able to point out to him some better way of protecting
their railway right and increasing their profits. Under
all the circumstances, he for one gave it as his opinion
that the plan was one that it would not be wise to adopt.
Mr. WARD said that the point mooted by Mr. Gurden,
whether the absent proprietors shall be bound by what-
ever is finally determined on in this meeting is decided
by the words of the Act of Parliament, which bind all
absent Proprietors by whatever is done by the
majority in any duly announced meeting. At the
same time he must add, he was sure there was
nothing in the meeting adverse to the interests
of the Eastern Counties Proprietors; they had met
them (the Eastern Counties Shareholders) a fortnight ago;
propositions were laid before them, and their objections
had been met in all fairness. It was said the Eastern Coun-
ties Company must have an alternative; the Directors went
accordingly to the North Eastern Company's Board, had
got an alternative, and now brought it before them, vet
it is said to-day the Directors have given no notice of the
meeting. They certainly wish no advantage over the
E 'stern Counties. Gentlemen knowing the meeting
had been adjourned ought assuredly to have been
present. He would not go into the details about
the workine expenses, as they have been introduced to
the meeting. He did not see what advantage the two
Companies could derive from going into a scrutiny here
of each other's expenses, and cutting them down to the
lowest sum. -Mr. Hudson's name had been mentioned,
and with that good feeling and respect which it deserves.
That gentleman, it ought to be remembered, had gained
his name for his economy ; he has in every case
reduced expenditure, and been thereby able to return
a very large dividend to the Shareholders. One word
as to the amount of receipts. The Eastern Counties
Shareholders will have 6 per cent. up to 1847, during the
construction of the Norfolk line ; that line, when made,
will throw the whole traffic along the main line, and
they will come in for their share of the profits on the
whole traffic.. Mr. Gurden had prophesied often, but
falsely, in that room. Mr. Gurden had said the shares
of this Company would fall ; the market gives the
answer. He said he would oppose the amalgamation ; if
he had done so successfully, it would have been the ruin
of the two Companies, fur in making the arrangements
they had not only been liberal to others, but also to them-
selves—they saw that the amalgamation would be for the
mutual good of both. He thought a very valuable pro-
position bad been laid before them. Those who chose
the 6 per cent., who are unwilling to speculate, will re-
ceive the 6 per cent., and afterwards share in the profits.
ie the other hand, those who are willing to speculate
may have two shares, and iii case of failure have their de-
posit paid back to them. Unless amalgamation of the two
lines be accomplished they will be a great bar to each
other's interests. Competing lines will certainly start.
The calculations of a gentleman who had already spoken,
giving an issue of 7,8, 9, and even 10 per cent., can only
lie realised by shutting out competing lines; and the
mows to that is amalgamation, and nothing else.
Mr. Huxenv had supported the proposition made at
the last meeting with great pleasure, much more than at
the present, when the relation of the North-Eastern to
the Eastern Counties is as one-third to two-thirds, one-
third more instead of one-fourth as proposed last meeting.
-Mr. RHODES (of Leeds) was certain that the Eastern
Counties Shareholders would agree, that if the Bill in
Parliament be obtained they have obtained a great
good. Messrs. Levi and Luck will sustain no loss, they
run no risk—this is all borne by another Company.
Mr, TIASTIE, M.P., spoke shortly, in commendation
of the proposition.
The CHAIRMAN now put the resolution to the meeting,
when 35 voted in favour, and 4 against it.
Thanks were moved to the Chairman and the
Directors.
As the meeting was about to dissolve,
The CHAIRMAN reminded them that Mr. Hudson at
Cambridge had again suggested an amalgamation be-
tween them and the London and York. Mr. Pyne had
kindly offered to carry the suggestion before his coed
jutore, but nothing had reached him from that Com-
pany. Ile thought that the position of the London and
York Company was now different from what it was,
and such as to lead the Proprietors to see that their
interest lay in amalgamation. All railways start
with these objects, return for capital, to meet the in-
terest of the landowners, or that of the merchants; they
started with the first object before them, the last had
assuredly left them. The cut made by the North
Eastern Counties up to Hitchin saves much; there is but
one mile of difference between this line and the London
and York, but the London and Yurk line up to that
point is carried through one-fifth of the way by tunnels.
He had no doubt that the London and York would lila.
:nattily unite with them, and they would certainly re-
ceive them with all liberality.