The Lansing state Republican. [volume] (Lansing, Mich.) 1855-1874, 1859-12-27
From the Detroit Free Pres
The Relation OF the Detroit and milwaukee
Railway TO the Great Western of Canada
Meeting Of the English Shareholders.

\ special meeting of the shareholders Of
the Great Western Railway Company was
held at London, Eng, on the 222i and I'D
of November, for the purpose of consider
ing a proposition to exchange the existing
third and fourth mortgages granted by tho
Detroit and Nil Rukee Railway for the
loans of f250, 900 made by them in virtue
Of resolutions of the company passed Nov
=, 1857, and Nov. >, 1858, and to take in
lieu thereof a similar amount of an Issue
Of t5OO,00O of preference shares created
under the authority of an act granted to
the Detroit and Milwaukee Railway, and
which Is TO be secured by mortgage upon
the property Of the company; aud for the
purpose of passing such resolutions as might
then be decided upon
The chair was occupied by Nr. Gil, the
chairman Of the company.
The chairman stated that at this special
meeting 1t was not necessary to enter at
any length into the position or prospects OF
the Great Western Railway Of Canada, that
having been fully explained at the late
general meeting. The line from Detroit
10 Milwaukee would have been abandoned
before completion if the Great Western
Hallway had not advanced the Necessary
iund- for H. construction 1t was decided
10y the unai imOus vote of the shareholders
that it was good policy Of the company to
lend this money. The total sum advanced
WAS t23n 600 and the directors had to see
that the money 50 advanced was applied
strictly to the construction of the railway
aud the supply of the rolling stock. The
line having been completed, it was now in
Il condtion 10 pay It's own way aud some
thing over; but, had it not been for the ii-
rector, looking after the Interests of the
COMPANY, the money would have been ap-
proPraiei 10 the payment Of existing debts
ON the Detroit and Milwaukee Railway,
which amounted To about goo 600 Tho.
railway, being now ANXIOUS to clear oft lis
foatin. liabilities, had proposed the plan
which he was to submit to the meeting,
and which, having given the utmost atten.
ton to the proposal, they caudidly recon-
mcnded to the adoption Of the shareholders.
by the proposal this company would not
part with any existing mortgage. lhcy
would give a tangible security in the pro-
posed guaranteed shares of 10 per cent,
and the only objection he had, if any, to
the proposal was that the rate Of interest
was too high, if anything as he thought
that s per cent would have been quite sut-
fcient. The preference shares were Of a
nature TO be more easily dealt with than
the existing mortgages, and in the event
a not altogether improbable oue--of the
shares Of the company reachinga premium,
they would be found to be a very valuable
form Of security He concluded by mo-
wing formal resolution authorizing the di-
rectors to consent tn the proposed change.
After some general discussion Of the
main question, and 4 motion made by Nr
Anderson to the effect that a committee o!
investigation be appointed to inquire into
the position of the Great Western Railway
and the Detroi. and Milwaukee Hallway,
with the usual POWERS &C examining books
vouchers, and witnesses
Mr. Bryd gcs, managing Director, said
that, if the arrangement proposed was noi
carried out, the position of the Detroit and
Milwaukee Railway would be similar t,
that OF other American railways which had
not been able to fund their floating debt
The Great Western Railway Of Canada
had assisted that company to the extent OF
f250,000, which had been scrupriousls 5
applied to the completion Of the railway
and not to the reduction Of its hoaiin.
debt During the last half-year the amount
of traffic which the Detroit line brought t.
the Great Western Of Canada was S3,not
per week, or $40. 900 in the SIX months
and if it had not been for the traffic thu
brought on the line, the accounts Of tn,
Great Western Of Canada would hav,
shown deficiency of receipts over expen
ditures, instead Of leaving a considerable
balance to carry over, as it had done. Ih,
benefits derived from the Detroit aud Nil
wauhee line has been so large as 10 briE!
up the earnings of the Great Western Rail
way to those Of the Michigan Central
which had previously been $1,000 or 5000
per week higher than those Of the Grea
Western of Canada. The traffic on tn
Detroit Railway was increasing rapidly
the passenger traffic being increased 80.
per cent during the last year, and th
goods traffic showed an increase of loo
per cent, aud from all the evidence viii.
could be obtained there was reason Ia b,
lieve that the line would be able very short
" TO pay the dividend and interest upo
all lis mortgage bonds and prefercnc
shares. (Chcer) The sum OF got, ,0o
advanced by the Great Western Of Canad-
was equal to about one seventh Of the COS
of the railway, and for this sum they ha
obtained the control and management {
that important line. The proposal t
change the present security for pr. ferenc
shares would be a beneficial one 20 this CON
pany. because they would not only retail
the security of III rtgage, but they woul
be placed in the position Of shareholder:
and would be able to attend and vote Z
the meetings OF the Detroit and Milwaukee
Company He believed that the tratii
upon the Detroit lne would be amply su
Ecient to pay the dividend upon tine share
Pending the further discussion Of I'll
subject the meeting adjourned.
On the following day the chairman sal
that tue directors had decided upon witt