The Liverpool Standard and General Commercial Advertiser.
Liverpool, Merseyside, England, 1840-01-14 00:00:00


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RAILWAY INTELLIGENCE.

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We promised in our last to suggest to the directors and
proprietors of some of those railway undertakings, which are
now labouring under depression a course of proceeding, by
the adoption of which, the difficulty of their present position
would be lessened, if not altogether got rid of. We can-
not, of course, where circumstances are so varied, lay down
a remedy which will reach equally the evils of every case, and
shall, therefore, be content to offer here a few general re-
marks, reserving their application to particular cases, as they
may in the course of time present themselves to our notice.
The first object of such companies should he to arrive at a
knowledge of the precise nature of their difficulties. In most
instances they are of a financial nature, and arise from in-
ability or unwillingness on the part of the shareholders to
furnish funds with sufficient regularity to enable the directors
to proceed with their works ; and the inquiry should at once
be instituted,—To what extent does real inability exist, and
on what grounds is this unwillingness founded?
The mode of instituting inquiries of this nature has hitherto
• been, to appoint a committee of shareholders and directors,
with power to inspect books and documents, ao report
to a general meeting convened for the purpose. Wnd t e
should
rather suggest the appointment of a professional man, who,
in addition to the information to be derived from the com-
pany's officers, should also have instructions to wait upon
bodies of the shareholders, and endeavour to ascertain, from
personal communication with them, the feelings and circum-
stances by which they are actuated in declining or delaying
to perform their contracts with the directors. The faithful
report of an intelligent professional man, after an inquiry so
conducted, would be a document upon which the directors
of any public undertaking might safely proceed to the appli-
cation of remedial measures; and upon which those share-
holders who had demurred in their payment of calls, from
wrong
impressions of the company's position, would be wil-
ling to rely.
It would then remain to be decided what must be the
nature of the measures to be adopted, and, when the source
of injury and its extent had been ouce accurately ascertained, a
considerable portion of the difficulty would be obviated.
Where real inability to pay existed amongst the shareholders,
prompt measures could at once be adopteil to supply the
place of those so circumstanced, by the substitution of sol-
vent and substantial parties. This, perhaps, in all cases,
might not be easy of accomplishment. Where the shares of
an undertaking were at a heavy discount, it could not be
done at once, and especially if the discount were greater
than the amount in arrear. It would still, however, be de-
siro,ble that the shares of insolvent defaulters should he im-
mediately forfeited, and resumed by the company: and the
mere intimation that such shares would not be re-allotted
except.at par, would of itself relieve the market, pro Canto,
of the pressure by which the discount is produced.
The next and more important question would be the
nature of the proceedings to be adopted towards those whose
ability to pay has been already ascertained, together with
their reason's for withholding payment. For the sake of
perspicuity, we shall class these parties according to the cir-
cumstances which actuate their conduct. The first whose
position demands our consideration is, that of parties who
having been original or registered shareholders have sold
their interest in the undertaking, but either from their own
ignorance of business matters,. or the neglect or wilful con-
nivance of their agents, have failed to secure, by a duly
registered transfer, the cessation of liability. We alluded in
our last to the hardship of compelling payment. from this
class of shareholders ; and also to the fact that although
liable in the eye of the law to be compelled to supply funds,
they were unable to recover possession of the property for
which they were paying. And we are sorry to learn that the
number of individuals so circumstanced is very. considerable.
It is the shares of these parties which have constituted the
. stock with which brokers and speculators have operated upon
the market—which have been .trucked backwards and for-
wards without any further object on the part of either sellers
or buyers, than the day's profitor loss, and which now lie in
the hands or dealers, ready to be poured into the market as
soon as the slightest revival of confidence will produce a
shadow of profit for their holders. It is on that account
essential that steps should be taken to destroy a property so
prejudicial alike to sound speculation and bona fide invest-
ment, either by adopting proceedings at once to compel
1 payment of calls in arrears and registration, or by forfeiture
of the shares and re-allotment to responsible and tangible
shareholders. . .

To secure this object we are compelled, on a full consider-
ation of all the circumstances, to recommend that public
companies and shareholders, who have been so imprudent as
to place themselves in these difficulties, should submit to
mutual sacrifices. Let the shareholders pay up an agreed
portion of the arrear, and the shares be forfeited and resumed
by the directors, and re-issued at par as soon as the state of
the market will allow.
Another class of persons whose case is worthy of consider=
ation, consists of those parties who, being able eventually to
pay, are so far crippled in their present means by the circum-
stances of the times, as to 'render their.doing so inconvenient
and almost ruinous. If pressed by compulsory proceedings,
these pirties must sell, at the loss perhaps of the whole
amount paid, and with the certainty of still further depre-
ciating the value of stock in the market ; or transfer their
shares to some accommodating friend,- who is not worth a
shilling, and is is ready for a prison as for his bed. The
shares thus transferred, of course, furnishing a ftitther sup-
ply of stock without responsibility, for brokers and specula-
tors to work with. To avoid either' of these alternatives,
both alike injurious to any undertaking, the one as produc-
ing unpopularity, and the other encouraging fraudulent spe.-
culation, we should suggest that in a few extreme cases, se-
curity. for a portion of the calls in arrear might be taken on
payment of another portion.
With respect to the third class—those able, but obstinately

unwilling. to pay—we cannot offer any hand of protection to
them. In most cases they will be found to consist of the
unprincipled speculator, disappointed of his anticipated gain,
or of the equally unprincipled adventurers disappointed of
his job; and against such the compulsory power confer-
red upon directors may very justly be directed. But
we have some doubt whether the course of proceeding
which we have pointed out, the unwinding of the en-
tanglements by which the proceedings of Railway Com-
panies have been impeded, together with an open and
candid explanation to the shareholders generally, and
to the public of their real position, the difficulties of
which have in most instances, within our own knowledge
been ridiculously exaggerated, will not have the effect of
rendering unnecessary any legal proceedings at all, except,
perhaps, in a few cases. We see on every hand, as new un-
dertakings come into operation, new proofs of the sound
foundation upon which the principle of railways is based ;
and when the present money crisis has passed over and the
pressure is removed, we trust to witness the establishment of
sound and healthy prices.
It may be objected that directors of railways in course of.
formation, cannot afford to lop off at once by any concession,
so great a portion of their capital as will be necessary to clear
them of their embarrassment by the course of proceeding
which we have suggested. We have before stated that our
remarks cannot be made to apply to all cases ; but we still
think that the objection will be found on consideration to be
of less weight than may at first be attached to it. As our
space is rather limited this week, we shall not, however, be
able to state so fully as we could wish the views we enter-
tained on this important part of our subject, but shall endea-
vour to do so in'our next. In the mean time, however, we
may state our conviction, that in a sound railway under-
taking no lasting inconvenience will arise from the adoption
of our suggestion, and with respect to any temporary incon,
venience, the company receive a bonus to the extent of the
gross sum paid upon all forfeited shares, to compensate them
for submitting to it with a good grace to what they are re-
ally, and in fact, otherwise compelled to submit. Going to
law and getting the money for which you go are not always
the same thing ; and after all there is something odd in the
appearance of cramming a man with a good thing by main
force.
RAILWAY COMMUNICATION WITH SCOTLAND.
THE WESTERN AND EASTERN ROUTES.
We have received from Mr. John Whitehead a letter ad-
dressed to the Commissioners appointed by Government to
inquire respecting the relative merits of ,the rival railways
projected from London to Edinburgh and Glasgow. The
letter is itself too long for insertion in; our columns, but
some of the statements and calculations may be interesting
to our readers, and we accordingly subjoin them.
As between London and Glasgow and Edinburgh the dis-
tance appears to be considerably in favour of the Eastern
route—i.e. the London and Birmingham to Rugby, the Mid-
land Counties, the North Midland, York and North Midland,
Great North of England to Newcastle, and by a projected
line along the East Coast to Edinburgh, with a line of 46
miles already in course of execution to Glasgow, the whole
distance from London by these railways being to Edinburgh
4121 miles, and to Glasgow 4584. By the West Route, via
Grand Junction, North Union, &c. the distance to Glasgow
is 467, and to Edinburgh 513. The difference in favour of
the East Route to Edinburgh is 100 miles, and to Glasgow

8 miles.
The Commissioners having to report on their merits in
respect of the manufacturing districts of the two counties,
Mr. Whitehead gives the distance between Manchester and
Glasgow by the Western Route, 279 miles and by the East-
ern 315—being a difference of 36 miles in favour of the West-
ern Line. On the other hand, from Manchester to Edin-
burgh, the distance by the Western Line: is 325 miles, and
by the Eastern 269 miles, being a difference of 56 miles in
favour of the latter.
Looking at the connexion of the Western Line with the
North of Ireland, to which point the attention of the Com-
missioners is also directed by Government, the presumption
,would appear to be that in a commercial view the Western
'Route would be preferable. Something, however, will de-
Tend upon the relative cost of the two route 4, and their en-
gineering merits, respecting which our correspoid.entis

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SHEFFIELD AND MANCHESTER RAILWAY,
Mr. Viguoles has resigned his office as Engineer-in-Claief
!,) the Sheffield and Manchester Railway Company, and Mr.,
4 +Locke has been appointed to succeed hitn; The Directors.,
V
.....
ly.tipwe understand, intend pushing forward with all posible vi.
V... le ks ;between Glossop and Manchester terminus,
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i.- —7" Ile .to open in the first instanee.through that very
$-; ,`----I- productive district. The works at the summit
..f-'
•,.',...i;--: kti\
110 CI U' ‘‘`ll4l.S.
,l. 447

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