The Liverpool Standard and General Commercial Advertiser.
Liverpool, Merseyside, England, 1840-01-21 00:00:00

RAILWAY INTELLIGENCE.

We proceed to notice the objections which are urged
against the forfeiture of shares upon which calls are in ar-
rear. It is said that companies cannot afford to diininish
their capital by releasing from their liabilities a considerable
portion of their shareholders. We admit the fact. But we
do not propose a permanent diminution of capital, or the
releasing of solvent persons from engagements entered into
with a full knowledge of their binding nature. But where
there is any doubt of solvency, or where there is any entan-
_

glement as to ownership, we think that iraniediate forfeiture
is preferable to the delay and uncertainty by which compul:

sort' proceedings may be attended. It is important that
companies should kr.ow the worst of tliei,• position, and sve
should rather advise amputation of the unsound members
than any attempt to patch up a body of shareholders by tear:

. .
porizing measures. The former.course would certainly limit
the number of those upon whom directors have to call for

support, but it would enable them to calculate upon that
support with greater certainty as to the time of its being sup-
plied, and thus to ensure energy of action. The latter course
—the retaining of useless and refractory partners, upon
whose assistance they cannot rely, and whose struggles to
free themselves are to drag upon their proceedings—could

only tend to produce embarrassment and confusion.
Let it be remembered, too, that the question is, after all►
one of choice between two evils. Directors cannot make in-
solvent into solvent shareholders. They can only choose

whether they are to persevere in the attempt to drag along
with them these unfruitful Rortions of their body, or at once
to abandon them. They cannot resuscitate the dead Wood►
but only decide between the alternatives of cutting it down►
in the hope of seeing fresh shoots spring up, or allowing it to
disfigure and impede the growth of the parent tree.
But it is again contended that directors cannot release
from their engagements one body of shareholders without in-
justice towards another body—viz., those who have already

paid up their calls. Now we must humbly suggest that the
admission of such an objection is something very like an
acknowledgment that the parties concerned are embarked in
an undertaking the sterling value of which is doubtful ; or
that it implies a fear of its ultimate reinstatement in the pub-

is confidence.
We apprehend that few persons contemplate the continu

ance of the present depreciation of railway undertakings. On
the contrary, it is generally conceived that the return of pros-

writy to other branches of commerce will restore confidence
:o the market for railway property, and that the shares of
most undertakings will eventually advance in price. Upoo
:his revival many speculative holders calculate, although un-

_ .
willing or unable to forward it by performing their own obli-
gations; and we think it would be quite as well for Com-
panics to divide amongst their bona fide shareholders the
advantages of such revival as to allow a participation in them
to individuals whose claim to consideration is of so negative
a character. They cannot or will not forward the interests
of the undertakings upon which they had fastened theniselves.
Let them, then, be made to forfeit what they have already
paid, for the benefit of those who have really embarked in it
with a view to fulfil its liabilities. This would be nearer
the justice of the case than allowing and even compelling
parties, who have to their utmost impeded the progress of A
useful undertaking, to remain and share its ultimate benefits•
If, however, it is admitted that an undertaking is not likely
to he profitable or useful, then we admit that our views are
in error, and that the loss to arise should be equally shared.
In such a case, however, it might also be advisable to pause
at once, and to let the present ascertained loss be the whole•
But how then, it will be asked, can directors proceed in
the execution of their various works, with the diminished
resources arising from extensive forfeitures of shares ? Con-
tracts have been let, for Which funds must be supplied, and
the powers of their different acts of parliament will only
allow the Calling up of a fixed amount yearly of the capital

required. Those shareholders, whose liability still remains,
cannot therefore be pressed (even were it advisable), beyond
a certain point ; and at the present high rate of interest the
borrowing clauses are almost a dead letter.
Our answer must be, that they cannot proceed at once is
the execution of- all their various works. Some portion
must, of necessity, be suspended, in order to enable the'
to proceed with greater activity with the remainder, so as t°
bring it as early as possible into profitable working ; and
although by so doing public convenience may appear for s
time to suffer, yet in the end we firmly believe that it will be
found not to have been materially postponed. We beliefs
that economy will be consulted by directors of railway under'
takings, confining their views within narrower limits, 01
restricting their endeavours, for the present at all events, t°
the performance of a task, the practicability of which aut
be demonstrated without placing their dependence upon
contingencies. Many lines, we are aware, will not realise
the anticipations of their projectors, unless completed so 0
to embrace and concentrate their entire strength under one
management. There are few lines of which detached per"
tious will work to any great advantage. But where the
question becomes—and in many cases the question will be'
shall we have a great good by instalments, or wait until 'ce
can have it all at once ? We are certainly disposed to Prefer,
the instalments. In nearly all railways, a certain portion 0'
traffice has to be created; in those 'especially whose traffic''
expected to arise from minerals, time will be required in
tlje
creation of such traffic by the: gradual development of fre
resources of the various districts through which they pitse!
and where the ultimate accomplishment of the entire object
is ensured by the active progress of a portion, the enterrh'e
of our countrymen will accept the guarantee, and at once
proceed to act upon it.
We may repeat, that although we must contemplate P'"

probability, in some cases, of railways being partially p 0
poned, yet we do not think that such a necessity will, 0
matter of course, arise out of the measures which we ad,
cate. We are, on the contrary, convinced that, by then
moval from the share market of a portion of the dead stay
held by speculators and insolvents, and the'unravelling of 01
numerous entanglements by which individuals are held boor
to undertakings in whose progress they have no willing
available interest, a better and more healthy feeling will arise"
and unemployed capital flow in for permanent investnie°
To bring about such a result, other steps, as affecting partii
cular undertakings, will no doubt be required. EconmaY
management must be a little more studied in railway matters'
Economy of construction, too, must not be neglected. We
must have fewer expensive ornamental constructions, where
t
solid usefulness is alone required. But, above all, we rausa
have no more managing the market. If the directors 813
officers of a company are in possession of any thing, the poi'
mulgation of which will raise their property in the publie
estimation, let it be communicated at once directly to the
shareholders, for their advantage or satisfaction, and ppt
through some favoured broker, for the advantage of spec'?
lators. Let us have openness, and we shall have less flue'
tuation in the price of share property, to which we have 01;
ready attributed the general disinclination, on the part °`
steady and thinking men, to embark their surplus capital is
railway undertakings, and the consequent depreciation
their value.

MANCHESTER AND BIRMINGHAM RAILWAY'
We noticed afew weeks ago the abandonment by this 001'
pany of the line through the Potteries, and their determinsoi
tion to proceed only to the execution of what, in the clays
their bygone` magnificence" was termed the Crewe Branch'
Perhaps, under all circumstances, it would have been better
if their original views had been confined to the union with the
Grand Junction Line at Crewe ; but having once gone be'
yond this, and received the sanction of parliament, and
their shareholders, for a more enlarged object, we think 60
it is a duty on the part of the directors to give the fullest e%
planation of their reasons for falling back from their pledgee
of the last two years upon the comparatively insignificant ob'
ject with which they stated. This explanation, we tool'
they will furnish at their next half-yearly meeting.
We are led to allude to this subject now by a report 010
interview between the directors and a deputation from COD'
gleton, accompanied by Sir P. Egerton and Mr. Wilbrahnlor
,at which some startling facts appear to have been advanced
by the former as a reason for abandoning the Pottery hoe,
The deputation were told that one reason for such abandon'
meat was the groAs inaccuracy of the estimates given by
Rastrick, their engineer, before parliament, that gentlenn°
having stated-the cost at £21,000 per mile, whereas it ib
now found to be £45,000. We really think there must be
some misapprehension here, and, at aßevents, should imagine
that, for the sake, of his professional character, Mr. Rastricic
would explain how so enormous au increase can arise. if°
the shareholders such a circumstance, if true, must be es'
tremely disheartening, and to the railway public the entire
proceedings of this company have been disgusting.

ORK AND NORTH MIDLAND RAILWAY.—We are iud
formed that thig line, although only partially opened, se
deriving no advantage from either the Great North of Enig;
land or the North Midland, between which it lies,-Win
3 per cent. for the half-year, or at the rate of 6 per cent. 1?,e1,
annum. What will it do when completed, and united col
the other two lines ? This is a specimen of cheap construes
tion ; the cost was only about £l3-1,000 for 144
Railway Magazine.
LONDON AND SOUTH-WESTERN RAILWAY.—The whole
of the rails being now laid down between the temporary ter'
minus at Northam and the terminus on the Marsh, the ell;
gine has several times been along the whole line. lilt
building. on the Marsh is also completed, and rising, as
does, higher than any of the adjacent edifices, forms a ver;
conspicuous object, especially when viewed from the wziteri
Workmen are actively engaged on the yet unfinished part eh
the line between Winchester and Basingstoke, and thoug;
the late useasonable weather has impeded their progress In
a great degree, little doubt is entertained of their completteil
it by the Ist of May, when the good folks of Southampte,
will be enabled to reach the metropolis in three hours.'"
Southampton paper.
LONDON AND BIRMINGHAM RAlLWAY.—Saturday
ing a considerable subsidence took place at the Blisworte
embankment, half way between the station and the loidga
over the canal. The earth having become thorougly saturate,
by the late rains, gave way at, the bottom, and the surface
consequence gradually sunk, at one point several feet. Sient
then it has continued to subside at the rate of about a fe"
an hour, and one occasion between two and six in the 100 i:
ing, when the men ceased to work, it sank eight feet. 0
large force of men were collected the moment the slip
discovered, and employed day and night replacing the Sue
that had given way with ballast, the trains in the mean tqy
passing slowly over the spot. The gap is always filled UP
the arrival of a train, and the precautions taken are sucbut
to do away with all idea of danger. The ballast is brot18;
partly from Eugbrook, but chiefly from iHillmortoo, 3bo
16 miles distant.—Northampton Mercury, Jan. 11.
GREAT NORTH OF ENGLAND RAILWAY:-.--ThiS UD.,cer
Darlington, will be opened in October next ; the engill