RAILWAY INTELLIGENCE
PORTSMOUTH.
The half-yearly meeting of this company was held yesterday at the offices, Great George-street, Westminster, Mr. Mowatt in the chair.
The Secretary read the report, which stated that on the 8th of August last, the first turf of the railway was turned at the northern entrance to the tunnel through the downs at Buriton, near Petersfield. The heading of this tunnel has been driven to the extent of about 250 yards out of the 484 yards, its total length, and the completion of the heading may be looked for early in the ensuing summer. The directors have deemed it prudent to confine the operations of the contractor to the heaviest work on the line, namely the Buriton Tunnel; and they purpose proceeding with the remaining works at such points as will be necessary for the completion of the whole line simultaneously with this tunnel. They are prepared, however, to receive sums in anticipation of calls. The contract provides that the company shall have the benefit of any savings resulting from improvements of the line, and the directors have, therefore introduced a bill into parliament for authorising certain deviations. They have included in the same bill power to construct the extension line from Godalming to Shalford, two miles and three furlongs in length, which formed a part of the original plan of the railway; and the directors have every confidence that it will receive the sanction of parliament. This extension, by a junction with the South-Eastern Railway at Shalford, will afford a double entrance into London, and a direct communication between Portsmouth and the great dockyards of Woolwich, Deptford, Chatham, and Sheerness. The directors had come to the conclusion that the shareholders would do well to avail themselves of Mr. Brassey’s offer to farm the line for five years after its completion, and they recommended that course accordingly. Their opinion of the value of the undertaking remained unchanged as to the remunerative character of the line, which would bring Portsmouth within 72 miles and the Isle of Wight within 76 miles of London. The capital account to the 27th of February showed that 38,309l. had been received, and 27,234l. expended, leaving a balance of 11,075l.
The Chairman, in moving the adoption of the report, explained that, in consequence of the state of the money market, the works had not been pushed forward so vigorously as they could wish. They had made application to parliament for authority to construct certain deviations in the line, and the Shalford extension, which they had no doubt would be granted. The company had, therefore, 1719 shares on hand, and were in negociation with the Direct Portsmouth Company to take the balance off their hands. With regard to the proposed lease of the line to Mr. Brassey, he said that that gentleman’s agent or solicitor at the last moment informed them that Brassey’s reading of the conditions upon which he was to accept the lease differed from that understood by the directors, and therefore they proposed to adjourn the consideration of the question for a month. Mr. Brassey was at the present time on the continent.
In reply to questions it was stated that there 18,280 shares paid upon, and of these 2500 were held by Mr. Brassey.
Mr. Saintsbury contended that the terms offered by Mr. Brassey of 4 per cent. for five years, with half surplus profits, were not a sufficient inducement for any body of shareholders in the present state of the money market to pay up a capital of 375,000l. He thought under such circumstances that the shares would stand at something like 50 per cent. discount.
The Chairman proposed a resolution to the effect that the report be adopted, omitting the paragraphs relating to the lease of the line to Mr. Brassey.
A Proprietor said he understood that Mr. Brassey was to have 25,000l. in addition to the amount of his contract on leasing the line. He thought that would go a great way towards paying the interest or rent to the shareholders.
After some conversation the report was adopted, omitting the paragraphs relating to the lease.
A long discussion ensued in which Mr. Parson, Mr. D. Mangles, M.P. Mr. Carter, M.P., Mr. Saintsbury and Mr. Soloman took part, in respect to the proposition for leasing the line to Mr. Brassey, in the course of which it appeared that the terms were to the effect that Mr. Brassey was to pay 4 per cent. per annum on the whole of the capital expended during construction, and 4 per cent. and half profits from the opening of the line for traffic during a period of five years, Mr. Brassey receiving and additional sum of 25,000l. Various resolutions and amendments were proposed, and at length one proposed by Mr. Parson was unanimously adopted, to the effect that this meeting be now adjourned sine die, that the agreement as proposed by Mr. Brassey be not accepted, and the shareholders express their full confidence in the directors.
The proceedings concluded with a vote of thanks to the chairman and directors.