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

RAILWAY INTELLIGENCE.

We proceed to notice the objectieris which are urged
against the forfeiture of shares upon which calls are in ar-
rear. It is said that companies cannot afford to diminish
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 immediate forfeiture
is preferable to the delay and uncertainty by which compul-
sory proceedings may be attended. It is important that
companies should knoW the worst of their position, and we
should rather advise amputation of the unsound members
than any attempt to patch up a body of shareholders by tem-
porizing measures. The former course would certainly limit
the number of those upon whom directois 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 portions 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 ahead).
paid up their calls. Now we must humbly suggest that the
admission of such an objection is something. very like en
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'
lic confidence.
We apprehend that few persons contemplate the confine'
ance of the present depreciation of railway undertakings. OP
.the contrary, it is generally conceived that the return of pre
perity to other branches of commerce will restore confidence
to the market for railway property, and that the shares of
most undertakings will eventually advance in price. tie
this revival many speculative holders calculate, although toy
willing or unable to forward it by performing their own obli'
gations ; and we think it would be quite as well for Coma'
panies 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 themselve9'
Let them, then, be made to forfeit what they have already
paid, for the benefit of those who have really embarked jail
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 $
useful undertaking, to remain and share its ultimate benefit'
If, however, it is admitted that an undertaking is not like')
to be profitable or useful, then we admit that our views are
in error, awl that the loss to arise should be equally shared'
In such a case, hoWever, it might also be advisable to pati'c
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 diminislid

resources arising from extensive forfeitures of shares ? Carr
tracts have been let, for which funds must be supplied, 3'l'l
the powers of their different acts of parliament will 011
allow the calling up of a fixed amount yearly of the eapiol
required. Those shareholders, whose liability still remain"
cannot therefo're be pressed (even were it advisable), beyoa3
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
the execution of all their various works. Some portios
must, of necessity, be suspended, in order to enable the°
to proceed with greater activity with the remainder, so as bl
bring it as early as possible into profitable working ; 81'j
although by so doing public convenience may appear for $
time to suffer, yet in the end we firmly believe that it will be
found not to have been materially postponed. We believe
that economy will be consulted by directors of railway under;
takings, confining their views within narrower limits, 3°'
restricting their endeavours, for the present at all events, bi
the performance of a task, the practicability of which c°s
be demonstrated without placing their dependence iiP°Tl
contingencies. Many lines, we are aware, will not realil
the anticipations of their projectors, unless completed SO 84
to embrace and concentrate their entire strength under one
management. There are few lines of which detached P°r'
tions 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 I%e
can have it all at once ? We are certainly disposed to prefer
the instalments. In nearly all railways, a certain portion °f
traffice has to be created; in those especially whose traffic
expected to arise from minerals, time will be required in the
creation of such traffic by the: gradual' development of the
resources of the various districts through which they 1095 i
and where the ultimate accomplishment of the entire
is ensured by the active progress of a portion, the entereri°
of our countrymen will accept the guarantee, and at nnej
proceed to act upon it.
We may repeat, that although we must contemplate the
probability, in some cases, of railways being partially P°st
poned, yet we do not think that such a necessity will, 0
matter of course, arise out of the measures which we aLI
cate. We are, on the contrary, convinced that, by the 11:
moval from the share market of a portion of the dead sir,
held by speculators and insolvents, and the unravelling of
numerous entanglements by which individuals are held boo°
to undertakings in whose progress they have no williog e
available interest, a better and more healthy feeling will aril:
and unemployed capital flow in for permanent investine°,
To bring about such a result, other steps, as affecting part(
cular undertakings, will no doubt be required. Econoinr
management must be a little more studied in railway matt
Economy of construction, too, must not be neglected. '°„,
must have fewer expensive ornamental constructions, wile{
solid usefulness is alone required. But, above all, we mud
have no more managing the market. If the directors °so,
officers of a company arc in possession of any thing, then Pr„
mulgation of which will raise their property in the piL
estimation, let it be communicated at once directly to t'
shareholders, for their advantage or satisfaction, and ne
through some favoured broker, for the advantage of spec"
lators. Let us have openness, and we shall have less
tuation in the price of share property, to which we have Foi
ready attributed the general disinclination, on the part
steady and thinking men, to embark their surplus capital:
railway undertakings, and the consequent depreciation
their value.

MANCHESTER AND BIRMINGHAM RAILWAII,'

We noticed afew weeks ago the abandonment by this Ow
pany of the line through the Potteries, and their deterniin:i
tion to proceed only to the execution of what, in the dal.
their bygone " magnificence" was termed the Crewe Brune"
Perhaps, under all circumstances, it would have been bet°
if their original views had been confined to the union witht°
Grand Junction Line at Crewe ; but having Once gone bri
yond this, and received the sanction of parliament, afiti.4
their shareholders, for a more enlarged object, we think tP:
it is a duty on the part of the directors to give the fullest e!.l
planation of their reasons for falling back from their pledr
of the last two years upon the comparatively insignificant dr,s
ject with which they stated. This explanation, we tt
they will furnish at their next half-yearly meeting.
55
We are led to allude to this subject now by a report 0'(
interview between the directors and a deputation from COO
gleton, accompanied by Sir P. Egerton and Mr. Wilbranti
at which some startling facts appear to have been advan'P.
by the former as a reason for abandoning the Pottery
The deputation were told that one reason for such abantil
ment was the gross inaccuracy of the estimates given by it
Rastrick, their engineer, before parliament, that gentleo;
having stated the cost at £21,000 per mile, whereas it
now found to be £-15,000. ' We really think there must.o,
some misapprehension here, and, at all events, should iniagl
that, for the sake of his professional character, Mr. Rust/r
would explain how so enormous an increase can arise.
the shareholders such a circumstance, if true,-must be
tremely disheartening, and to the railway public the Cl'
proceedings of this company have been disgusting.
sd,
YORK AND NORTH MIDLAND RALLWA,Y.—We 805
formed that this line, although only partially opened,
deriving no advantage from either the Great North of Pl'
land or the North Midland, between which it lies, will dir,/
3 per cent. for the half-year, or at the rate of 6 per cent. ro
annum. What will it do when completed, and unitednir
the other two lines ? This is a specimen of cheap colo,/
tion ; the cost was only about £l3-1,000 for 141 miles*
Railway Magazine.
1101°
LONDON AND SOUTH-WESTERN RAILWAY.—ihe
of the rails being now laid down between the temporal,' te'l.d,
minus at Northam and the terminus on the Marsh, the,,
gine has several times been along the whole line. .`,"if
building on the Marsh is also completed, and rising, I"erf
does, higher than any of the adjacent edifices, -forms vbe
conspicuous object, especially, when viewed from the yr!: of
Workmen are actively engaged on the yet unfinished pa".,,,
the line between Winchester and Basingstoke, and th°,7o
the late useasonable weather has impeded their progress
a great degree, little doubt is entertained of their comple?
it by the Ist of May, when the good folks of SoutharoP
will be enabled to reach the metropolis in three hours'
Southampton paper.
eels'
LONDON AND BIRMINGHAM RAILWAY.—Saturday re)
ing a considerable subsidence took place at the Blisw°,36
embankment, halt way between the station and the blip
over the canal. The earth having become thorougly satuo
by the late rains, gave way ta the bottom, and the surfssnes
consequence gradually sunk, at one point several feet. °`fost
then it has continued to subside at the rate of about
an hour, and one occasion between two and six in the Oink
ing, when the men ceased to work, it sank eight feet. is!
large force of men were collected the moment' the stye
discovered, and employed day' and nieht'Veplacing wetio.
that had given way with ballast, the traiiii in'the mean 14
passing slowly over the spot. The gap is always lineal
the arrival of a train, and the precautions taken are 5 alit
to do away with all idea of danger.., The ballast is hrol7ool
partly from Bugbrook, hut chiefly from tHilirnorton,
16 miles distant.—Northatnpioir Mercury, Jan. 11.
et to
GREAT NORTH OF ENGLAND RAILWAY:—This
Darlington, will be opened in October next ; the eni—