East Indian Railway: 1847/04/12 AGM

Note: This is a sub-section of the East Indian Railway

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AGM 1847 April 12th.

A special meeting of this company was held at the London Tavern yesterday, to receive a report from the directors of their past proceedings, Sir G. Larpent, Bart., in the chair. Mr. Noad, the Secretary, having read the advertisement convening the meeting, The Chairman said that that was the first meeting since the company had been formed, and a report of the proceedings of the directors having been prepared, he would proceed to read it without comment, merely observing that though copies of it had been circulated through the room to enable gentlemen the better to follow the statements it contained, it was not meant to pledge them to its support until they had heard and considered it.

The Hon. Gentleman then proceeded to read the following report:-

"An interval of nearly two years having elapsed since the formation of the East Indian Railway Company, and no intermediate communication having been made to the shareholders, your directors are of opinion that they have now reached a point in their arrangements for carrying out the objects contemplated when the company was formed, which require them to lay before the shareholders a succinct narrative of their proceedings, in order to render them acquainted with the present position of their affairs and with a view to obtain their sanction to the line of measures which it may henceforth be deemed expedient to adopt.

Prior to the formal organisation of the company, in May, 1846 the correspondence with the Government of India and the Honourable East India Company was published, and communicated to the proprietors. Of the benefit to be derived by India and its Government, from the introduction of the railroad system, there could not be any doubt; but your directors felt they should not be justified in recommending such an investment of capital to the public, unless they had ascertained from the Court of Directors of the Honourable East India Company and the Board of Control, that those bodies participated in their views, and would give, not only their countenance, but substantial assistance, to the enterprise. Repeated communications with these authorities established that point; and, as an earnest of their assurances of hearty co-operation, Mr. Simms, an engineer of eminence, was sent out to India by the Honourable East India Company.

Your directors immediately adopted a similar course, and, by the same mail, their managing director, Mr Macdonald Stephenson, accompanied by three well qualified engineers, proceeded to Bengal. On his arrival in Calcutta, Mr. Stephenson proceeded with diligence and discretion, which cannot be too highly commended, to survey the line from Calcutta to Delhi, through Mirzapore; and, so great and persevering were the exertions of himself and his staff, that in April, 1846, the surveys of the whole line were completed, important statistical information obtained, and an elaborate report transmitted to your directors in London.

Mr. Simms, on his part, acting in conjunction with two able officers appointed by the Bengal Government, had, during the same time, completed his inquiries and investigations, and obtained the information which the Court of Directors considered necessary, before committing the Indian Government to the support of any railway project; and his report to the Honourable Company became known to your directors in the month of June 1846. Your directors were gratified to perceive by that report, sanctioned as it was understood to be by the Governor General and the highest authorities in India, that the views originally entertained by your directors were confirmed; that the practicability of constructing and working railroads in India was admitted in the fullest manner; and that the line from Calcutta to the north-west provinces of India was recommended to the home authorities as the line most important to the Government, and the first to which their support should be given.

In consequence of this report, and of the favourable information received from your managing director and his staff of engineers, your directors, as soon as possible after the return of Mr. Stephenson, and on the 28th July, 1846, addressed the Court of Directors of the Honourable East India Company, proposing terms upon which they would be prepared to recommend to their proprietors to carry out the views of the Supreme Government of India, and construct the line of railroad selected by their engineers. Without entering into the details of the proposed terms, your directors beg to state that, strongly impressed with the conviction - derived from India - that the line from Calcutta to Delhi possessed political advantages of the highest order (whatever doubts might be entertained of its superiority over other proposed lines, as a commercial speculation, in which your directors do not concur), they considered themselves entitled to require from the Honourable East India Company such a guaranteed rate of interest on the outlay of capital in so distant a country as would induce prudent and substantial parties to embark their property in a railroad in India. They assumed four percent, as the lowest amount of interest to be assured to the proprietary, until the actual results could be correctly ascertained; also, that the expenditure should be made through the Honourable East India Company, under the general supervision of their Government in India; and that the advance of interest should be repaid to the Hon. Company out of the profits of the railway, when they should give continuously to the proprietors a dividend exceeding four per cent.

In July, 1846, your directors were prepared to recommend to their proprietors to enter into a contract with the Hon. East India Company for the construction of the whole or such portions of the line as might have been selected; and the first operations might, in such case, have been commenced in the month of October, at the beginning of the cold season of 1846; but it was not until January, 1847, that a reply was received from the Honourable East India Company, when the terms and conditions upon which support will be extended to the introduction of railroads into India were communicated to your director's. Your directors perceived with much satisfaction the conclusions therein announced :—

1st. That it was deemed of great importance to connect the seat of the Supreme Government of India with the North-West Provinces.

2nd. That provided no serious difficulty, arising out of the physical character of the country, be found to exist, the line for the first railway in India should be from Calcutta to Delhi, through Mirzapore.

3. That the Honourable East India Company were prepared to sanction the construction of two sections of that line - one in the Lower, and the other in the Upper provinces; to grant the land for the railway, free of all cost, for ninety-nine years; to advance interest at the rate of four percent, per annum, for fifteen years, on the capital to be employed on these sections, not exceeding 3,000,000/. sterling: to commence paying such interest so soon as a contract should be arranged, and to receive repayments thereof when the profits of the line should exceed four per cent.

To this paper your directors returned a reply to the Honourable the Court of Directors of the East India Company, on the 3d of February, 1847. In this letter your directors ventured to submit various modifications of the conditions proposed by the Honourable Company, it being well known that circumstances in the political and monetary state of the country had very materially changed since the application in July, 1846, and that very great caution was required in conducting the negotiation for the construction of so great a national work, involving ultimately so urge an outlay of capital.

Your directors think it only right to acknowledge in the strongest terms, their obligations to the authorities of the Hon. Company, for the liberal and enlightened policy manifested by them throughout the negotiations and the fairness with which every point was argued by them; and regret that obstacles should have arisen to prevent the Hon East India Company from at once affording that full measure of assistance which they believe the Court would otherwise have given, and which might have laid the foundation without any delay, of the great work, so important to India, of which the administration, under the control of the home Government, is committed to them.

The reply received from the Court of Directors intimated that the Court were unable to depart from the terms and conditions already communicated; and your directors therefore felt it to be their duty to summon the shareholders, at a period as early as possible, to take their opinion thereon, and to receive their sanction, either to accept those terms, or to pursue such other course as should be deemed advisable.

To enable the shareholders to arrive at a just conclusion, your directors will now proceed to state their own views upon the subject, in the conduct of the negotiation with the Honourable East India Company, your directors were anxious to obtain a certainty, however moderate, for the investment of the capital required, and hence their application for a guarantee This principle has been conceded. In ordinary times, a guaranteed interest of four per cent., without risk would be deemed sufficient; and the experience of fifteen years from the opening of a railway would certainly develop, to a great extent, its resources of traffic. This guarantee, together with the gift of the land for the railway for a period of 99 years (though not amounting to the extent of benefit which your directors considered themselves justified in asking at the hands of the Indian authorities), constitute advantages of an important character, and their concession involves an assurance to the proprietors of the support and co-operation of the Government of India indispensable to the undertaking.

The recorded opinion of the present Governor-General of India, in his despatches recently laid before Parliament, and the encouragement received in this country from the Honourable Company, prove in the minds of your directors that both here and in India such support will be liberally afforded. It remains, therefore, to lay before the shareholders for their consideration, and as the means by which they may arrive at a sound judgment, the information obtained upon the two main elements upon which the profitable result of the undertaking depends, namely, the estimated cost of the construction of the railway, and the probable net returns of traffic upon it.

The statistical information obtained by your managing director, Mr. Stephenson, has been carefully examined; and although the cost of introducing an entirely new system of locomotion in a country such as India must necessarily be subject to some degree of uncertainty, yet, from the very great attention bestowed upon the subject, your directors feel themselves warranted in anticipating that the maximum cost of a double line of railway from Calcutta to Delhi, though Mirzapore. will not exceed 15,000/. per mile, there being no charge for land or parliamentary expenses, which form so heavy an item in similar works in this country.

Your directors have great satisfaction in referring to the accompanying report of your engineers, Messrs. Rendell and Beardmore, which entirely confirms their views. The calculations of the traffic have been framed with the caution which the directors have studiously inculcated upon their officers in all their proceedings. The traffic has been taken from officially authenticated Government returns, and the estimates have been made on traffic considerably less than that actually existing. These details have been printed, and are laid before the shareholders. The result shows that, without an increase of the existing traffic, a large dividend may be expected, and that increase (which the experience of every line in this country and on the continent has rendered more than probable, and which may be peculiarly augured for a railway in India), a return much more remunerative than has been hitherto obtained upon any project of a similar character. To this traffic there has still to be added the charges for the transport of the Government mails, troops, military stores, &c, which have not been included in the estimates. The practical illustration of a railway, now understood to be in profitable operation in Jamaica, removes, in a great measure, any doubts entertained of the injurious effects of a tropical climate. With these facts before them, your directors are of opinion that they should not be justified in recommending an abandonment of the project; and they still indulge the hope that, by adopting a prudent and judicious line of conduct, under the very peculiar circumstances of the times, they may eventually succeed in accomplishing the great work of a railroad, connecting the metropolis of British India with the north-western provinces; beneficial alike to the shareholders and to the Indian empire. They submit, therefore, to the proprietors, that they should proceed at once to constitute the company, by deed of settlement, in the usual manner, thereby placing the company in a position to avail itself of the terms proposed by the Honourable East India Company, or such favourable modifications thereof as may ultimately be obtained.

The shareholders are aware that at present ail that has been done has been experimental; a sum of 5s. per share was subscribed to meet the expenses necessary to ascertain the practicability of introducing railroads into India, and to establish for this company a preference in any contract which the Government might enter into for their construction, That object has been accomplished at a cost which, to your directors, and as they confidently assure themselves to you, will appear, under the circumstances, moderate and satisfactory. The accounts of the expenditure are before you, and will show the manner in which the capital has been applied. Nine hundred miles of country have been surveyed, engineers sent specially to India for the purpose, sections, maps, and plans of the whole line provided, all preliminary legal and other contingent expenses have been defrayed, and the gross sum expended amounts only to 22,421/. 5s. 1d.

In connection with the measure recommended by your directors for immediately constituting the company, they have also to propose, that an arrangement made with the directors of the Great Western of Bengal Railway Company (subject to your approval, at a meeting to be especially convened for the purpose, under the company's deed of settlement) should be confirmed and carried into effect.

The shareholders are probably aware that that company proposed a line from Calcutta to Rajmahal, to be carried over a portion of the main line of the East Indian Railway Company from Calcutta to Mirzapore, and entering into competition with the branch to Rajmahal, which the East Indian Railway Company had contemplated. As the choice of the sections to be first adopted was to be left with the Government of India, it was considered expedient to amalgamate the interests of the two companies, so as to give the Indian Government the freest choice in their selection, without affecting that unity of purpose essential to the safe promotion of so extensive a plan. Your directors were induced to adopt this course upon the best advice; and they rely with confidence upon the shareholders sanctioning an arrangement with the Great Western Railway Company of Bengal upon the terms now submitted to them - namely,

1. That the subscribed shares in the Great Western of Bengal Railway Company be exchanged for unequal number of shares in the consolidated company.

2. That the relative expenses of the two companies be equitably adjusted by mutual arrangement.

3. That three of the directors of the Great Western of Bengal Railway Company do join the consolidated board.

4. And that the claims of the officers who may be displaced by the amalgamation, be considered by the consolidated board, your directors would venture to recommend, that when the company shall be legally constituted, as they propose, the shareholders should (premising they enter into the views which your directors have laid before them) continue that confidence which they have hitherto reposed, and entrust to them the further necessary negotiations with the Honourable East India Company, for carrying out the objects of the undertaking.

It will be the duty of the directors, in the event of their acceding to the terms and conditions of the Honourable East India Company, to extend the calls that may be required over so large a surface of capital, and as long a period of time, as may be practicable, and to construct, in the first instance, only the two sections of the line, strictly limiting the outlay to the sum of 3,000,000/., on which the interest of four per cent, is guaranteed; and your directors think this may be done in such a manner as not to prove onerous to the shareholders.

In conclusion, your directors have to call your particular attention to Mr. Stephenson's able report, to which reference his already been made. The detailed sections, and general plans and designs, are too numerous to be laid before this meeting; they are, however, open for the inspection of such of the shareholders as may be disposed to examine them, at the offices of the company, and your directors believe that they will be found to deserve your cordial approval. Your directors, in respectfully claiming for themselves, as well as for all those persons who have been engaged in the promotion of this important enterprise, your approbation of their conduct and your sanction to their acts, deem it unnecessary to do more than to assure the shareholders that, in every department, the utmost exertions have been made to promote their interests and to execute the duties entrusted to them."

To this was appended a statement of accounts, which showed the receipts to be on 167,240 shares allotted in London, Calcutta, and Madras, interest on investments, &c, 47,553/. 13s. 3d. : due to sundry creditors (amount of deposits overpaid) 25/.; 47,578/. 13s. 3d.; and the expenditure 224,211/. 5s. 1d., leaving assets in favour of the company of 25,154/. 8s. 2d., including 950/. as the estimated value of the company's furniture, maps, and plans, mathematical instruments, &c.

The reading of this statement was loudly applauded in various parts, more particularly a statement in the expenditure of 1,123/. 5s. 7d., for solicitors' charges, including cost of framing deed of settlement.

The Chairman said he would next lay before them the report of the talented engineers Messrs. Rendel and Beardmore, which was the result of a due consideration of all the books, plans, &c, which had been prepared by Mr. Stephenson, and which had been unreservedly laid before them. It was as follows : —

" TO THE CHAIRMAN AND DIRECTORS OF THE EAST INDIAN RAILWAY COMPANY.
"8, Great George-street, Westminster, April 10.
"Gentlemen - After much consultation and correspondence with your managing director, and a careful analysis of the large mass of documents collected by his indefatigable exertions, with the assistance of your surveying engineers , in Indian, we beg to lay before you the following brief report:- We should feel some hesitation in drawing a report without having acquired that local knowledge which an engineer is always anxious to obtain; but the minute researches, reports, and documents handed to us by Mr. Macdonald Stephenson have removed many of the difficulties involved in the want of a personal acquaintance with the case. The grand feature of your line, and by far the most important in a pecuniary point of view, is that in opening a railway from Calcutta to Delhi, the direction of the traffic through the great valley of the Ganges, which must have existed for ages, will be fully preserved. To enlarge upon the additional facilities given to the enormous trade which, in spite of great obstacles, passes and repasses the branches of this great river, and the populous cities on its banks, would be here superfluous. The estimates of the line have been carefully made under Mr. Macdonald Stephenson's direction; but we have preferred, as far as time will permit, to analyse anew the sections and other data, and the result appears to be, that the total cost of the line may be safely taken at from 15 to 15.5 millions sterling (15,000,000/. to 15,500,000/.). an amount that may vary considerably, according to the expedition with which the execution of the works is pressed. This line, when viewed in relation to its large towns, and other circumstances, indicating the order of construction, appears to divide itself into five portions, of which we estimate the cost in the following table, assuming that the land will be provided to the company free of all charge. The estimated sums include the cost of a double line, which will be absolutely required when the railway is opened throughout, and 2,000/. per mile for working stock - the lowest sum which can be assumed.

ESTIMATE.
1st section - 30 miles - From Calcutta to Hooghly, at £17,000 per mile.....£510,000
2d section - 40 miles - From Hooghly to Burdwan, at £17,000 per mile, £680,000
.....30 miles from Burdwan to 100 miles, at £15,000 per mile, £450,000
.....200 miles - From 100 to 300 miles, at £22,000 per mile, £4,400,000
.............£5,530,000
3d section - 175 miles - From 300 miles to Allahabad, at £18.000 per mile.....£3,150,000
4th section - 125 miles - From Allahabad to Cawnpoor, at £15,000 per mile.....£1,875,000
5th Section - 270 miles - From Cawnpoor to Delhi, at £14,000 per mile.....£3,780,000
30 miles for contemplated deviations at £15,000 per mile.....£450,000
Total 900 miles.....£15,295,000
Average rate throughout, including working stock, £17,000 per mile.

"In preparing these estimates we have allowed for every requisite to insure the most perfect construction of the permanent way, which is important to the safe and economical working of a line even in this country. We have, however, assumed that, in the construction of the bridges, stations, and other works of the like kind, simplicity of design, and the use of native and economical materials and appliances, should be resorted to - a departure from this course would, we conceive, make estimates for the large bridges, and other similar works in India, much more fallacious than they proved to be in this country, during the first few years after the introduction of railways.

"Out of the 900 miles comprising your trunk line, 500 miles may be considered to present as few difficulties as could well obtain; 200 miles may be estimated as involving works of an ordinary class, with a few exceptions, however, consisting of extensive bridges. The remaining 200 miles will contain some considerable earthworks and tunnels, the heaviest of which, according to the sections laid before us, are confined to about 100 miles at the summit. The prevailing characteristic of the country traversed being flat, the gradients will, of course, be correspondingly favourable; hence, on the two first portions above-mentioned, extending over 700 miles, the undulations will be so small, that, practically, the line may be considered level. On the last named division, of 200 miles, the country would seem to be hilly and much broken, and would require frequent gradients, of from 1 in 200 to 1 in 100; and in one case, a succession of planes, of 1 in 60, for a length of seven miles, which can all be embraced with one assistant locomotive. This gradient is on the heavy part of the line already referred to; and it appears to us possible that both the works and gradients of this division might be amended by bending somewhat towards the north. As the immediate construction of this will not be required, it would become part of the duty of your engineering staff during the progress of the earlier works, thoroughly to survey and examine other valleys and passes of the Ramgurh Hills; this will also allow for a further inquiry into the passage of the River Soane, which, from its magnitude, will, be, under any circumstances, an expensive work.

"We highly approve of the proposition for commencing operations by the construction of lines from Calcutta in the direction of Burdwan, and from Allahabad to Cawnpoor. The execution of these divisions, which will be within the limits of the first portion of your proposed expenditure, involve comparatively few works difficult of construction, even in a country like India, whilst they will serve to educate the employees of the Company, and afford good experience as to the action of a tropical climate on the railway works, so necessary for guidance before the completion of the heavier portions of the line.

"The establishment also of repairing shops in the neighbourhood of Calcutta and Allahabad or Mirzapore would ultimately save that expense, which in the early stages will be incurred in procuring tools and machinery from England. The cost of working a line of railway so materially depends on the nature and extent of its traffic, and in this case embraces so many new considerations, that we hesitate to give a decided opinion on the subject.

"The allowance for working expenses and depreciation appears to have been taken in the estimates of your managing director at so fair a proportion, compared with European lines, as to justify the greatest confidence being placed in their accuracy. The low cost of native labour will at first be fully balanced by the high cost of fuel; but the line, when completed, will pass near coal fields, which will supply fuel, and probably afford a large traffic for exportation from Calcutta. We need scarcely remark, that if the company should determine on at once proceeding with the works, it will be necessary immediately to consider with great care and deliberation all that relates to the staff to be appointed for their direction and superintendence, as much necessarily depends upon the judgment and practical knowledge of the engineers in India. —

"We are, Gentlemen, your obedient servants, "Rendel and Beardmore."

The CHAIRMAN said the report of the directors which he had had the honour to lay before them not only contained a narrative of the proceedings of the directors since they had been entrusted with the management of the affairs, but it also ventured to offer an opinion on the course which ought to be pursued. He thought that the directors were bound to do so when they locked at the position of their affairs and the important negotiations into which they had entered; but when he looked around him and saw that the directors included gentlemen eminent in the military and civil services of the East India Company - merchants who were either connected locally with India or who had made it their study by long correspondence and attention to the position of that country - prudent and known substantial merchants of London, and gentlemen connected with the great railway companies of this country, whose experience must be of essential service, he considered that the report came before them stamped with an authority and authenticity that in some measure demanded their confidence. (Cheers.)

Gentlemen would recollect that the business entrusted to the directors was, in the first instance, entirely experimental, it being their object to ascertain, on the payment of a deposit of 5s. per share, the expediency and practicability of railways in India. The cost of getting that information had only been 22,424/., or not more than 2s. 8d. on every share, which, he trusted, would be considered by the shareholders a small expenditure, and that they would give the directors credit for having used a due economy in the management of their affairs. (Cheers.)

When they considered that that sum included all the preliminary expenditure before the company came into existence due to Mr. Stephenson, the promoter of the line, the great expense of getting up the company, and that it embraced a survey of not less than 900 miles of line in India, by talented engineers sent out from this country at high salaries, and that all this had been done within ten months, he thought that they would agree with him that it showed not only economy but expedition, and that under proper management these undertakings might be carried out both expeditiously and cheaply in India.

What had been the result of that expenditure of 22,000/. It had been established that railways were practicable in India, and that this particular line was the one which the Government of India wished to be made, and would support by giving it pecuniary assistance. In troubling them with a few extracts from the papers laid before Parliament, comprising the report of Mr. Sims, an engineer specially appointed by the East India Company to examine the country, he did so for the purpose of showing that not only was this line practicable, but that it was that which was considered the most desirable. It had been said that when engineers had great objects to carry out they were to be hurried away by their enthusiasm and to put their names to statements of the value of undertakings without due consideration of all the bearings, but in this case the report was also signed by two officers, Captains Boileau and Weston, who had been specially appointed for the purpose of checking it. They said,

"We would commence by stating our opinion that railroads are not inapplicable to the peculiarities and circumstances of India; but, on the contrary, are not only a desideratum, but with proper attention can be constructed and maintained as perfectly as in any part of Europe. The great extent of its vast plains, which may in some directions be traversed for hundreds of miles without encountering any serious undulations, the small outlay required for parliamentary or legislative purposes, the low value of land, cheapness of labour, and the general facilities for procuring building materials, may all be quoted as reasons why the introduction of a system of railroads is applicable to India."

He thought that the practicability of the great object they had in view was fully shown by that extract. He would next come to another point - and here he would quote the opinion of Lord Hardinge on the subject - the necessity of connecting the metropolis of India with its north-western provinces, and he thought nothing could be stronger stated than the position advanced in the following extract from the despatch of Lord Hardinge: —

"The limitation of the Company's liberality may be safely calculated by the positive and palpable advantages which a railway from Calcutta to Delhi would confer; and it need only be guaranteed to be forthcoming when an efficient and daily communication by railway shall have been actually completed between the two extremities, and measures have been taken to ensure that it shall be permanently kept up. The calculation of the contribution to be given would be based on the political, military, and commercial advantages which would be derived from the completion and full operation of such a line. In a political point of view, the daily delivery of the mails from Delhi to Calcutta, in sixty hours instead of eight days- the electric telegraph, communicating important orders in a few minutes, from one extremity to the other- would give the Government great additional powers, approaching almost to ubiquity, as compared with the system of dak runners and dak travelling."

Having accomplished the two points of showing the practicability of railways in India, and that they had chosen the best lines, he came to the terms proposed by the East India Company, and he thought that upon that point he might say that their third great object was accomplished. It had been an indispensable condition in his mind from the first that there should be almost an identity of purpose between the directors of that company and the East India Company. When he looked at the importance of railways to the security of British influence in India, he could not but feel that if they were not placed under the immediate control, they ought, at least, to be closely identified with the Government of India; and that being the case, he was happy to say that that company had secured the full and entire co-operation of the Government in India, of the East India Company, and of the authorities at home, so that he believed he might say that the success of this great object was attained. Although, they might differ as to time, he must say that during their negotiations with the East India Company nothing could exceed the liberality, gentlemanly demeanour, business–like views, or kindness with which he and his colleagues had been received by the chairman of that company. He felt it his duty to say so much, because he was fully satisfied with the reception given them, and he hoped and trusted that they should not be disappointed in accomplishing the object they had in view, he did not wish to say , anything that could reflect on other parties, but he must say that the delay which had occurred in presenting the report could not fairly be attributed to the East India Company, as from the earliest moment they had paid the utmost attention to the representatives of that company - he might say from the receipt of their first letter, dated July, 1848.He did not mean to say that in a matter of so much importance as that which he was presenting to them that it was desirable that a decision should be hastily come to, but he must bear his testimony to the fact that no unnecessary delay had occurred so far as concerned the East India Company.

He now came to what would be the cost of the line and the traffic on which after all must depend in a great measure on the judgment which they would that day have to give as to the future course to be pursued. He (the Chairman) was borne out by the report of Messrs. Rendel and Beardmore that the cost would be about 15,000/ per mile, or, including 2,000/. for the locomotives, working stock, &c, 17,000/. at the outside, and upon that assumed sum all their calculations had been made.

When they looked around them and saw, from parliamentary returns, that the cost of the London and North-Eastern line had been 38,460/. per mile, that of the Great Western 43,885/. and of the Eastern Counties 46,355/., and when he also found from a return which he had procured relative to the Paris and Rouen line, that their cost had not been less than 20,000/. per mile, he thought that they would see that the directors had not been extravagant in the estimate for the cost of the works on that line, they had calculated the working expenses at 50 percent, on the gross receipts, including 10 per cent, for the depreciation of the stock arising from the climate of India. In taking that 10 per cent, he thought they had taken the full measure that would be required, because he found from a return made by the Peninsular and Oriental Steam Navigation Company that they took 8 per cent for depreciation; and if 8 per cent, was sufficient on marine engines, where the expenses were notoriously great, he did not think that they had taken too low an estimate at 10 per cent.

He next came to the traffic to be expected on the line, and there it would be found that they had assumed the receipts of less than the present actual traffic, whereas in almost in every case in this country the assumed traffic had been taken by doubling, and in some instances trebling the existing traffic. Nor was that system erroneous, for the calculations had been borne out by the results. He thought that the details which he had laid before them, and which had been constructed upon a full and fair principle, would enable them to judge of the amount of traffic to be expected on the line.

With regard to the nature and cost of the traffic, he must observe that in a poor country like India - for notwithstanding all that they were in the habit of hearing as to the wealth of India, it was notorious that the great bulk of the population were poor - it had been thought necessary to fix the price of transit at an average of not more than 1d. per ton per mile for goods, and 0.5d. for passengers; which he believed was the lowest calculation now adopted in this or any other country.

It was frequently said, with regard to India, that, from the prejudice of the inhabitants, there would be a difficulty in introducing new schemes of travelling; but against that dictum they had the result of experience, for from the moment when steam-boats were introduced on the Ganges, although the system was carried to the fullest extent that the resources of the parties would allow, the demand was greater than the supply; and he believed that when the more perfect system of railways was introduced it would be found that the same principle was at work. He did not calculate ‘’in limine’’ on any obstacles to their progress being received from the native population of India, on whom they must rely in a great measure for support from the transit of goals, When he considered the advantages offered by railways with the notorious detentions which took place on the river traffic, he was lost in amazement at the system which prevailed.

He had a letter on the subject, which he would read to them, because he could answer for its authenticity. It was dated Allahabad, January, IS 17, and was from the postmaster of that place. It said" —

"I have no news to send you; but am able, as Government steam agent here, to assure you that the very low state of the Ganges this year, at a very early period, has prevented any of the steam vessels, Government or private, from coming up above Sirsa or Dumdumma, twenty to twenty-five miles below this; that, consequently, not only have the passengers been put to great trouble to get up, but a great detention of the vessels, and loss of time in getting up the cargoes, has ensued, having to send boats (very difficult to procure) down to them for that purpose. Everyone says, ‘Oh, for the rail!’ and hope you will not be long before you can accomplish something. My own bullock train establishment to Meerut, Delhi, Aura, &c, progresses well. I clear nearly a thousand per month for Government, and send goods to Meerut and Delhi, each 402 miles from this, in ten days. Now, the country carts, you know, take, by marches, 34, besides a halt or two. We are, therefore, far better off than the Bengal folks, who, depending on their river craft, are lamentably behind. I do not know whether you are anxious to see us again, but am sure we are to see you laying out the line; and it can be of any use to you - in giving you any information or any other way - pray point it out, and I will do it. Excuse haste, for have three more steamers just arrived at Sirsa, making eight within ten days, and a host of clamorous travellers to satisfy."

Now, gentlemen, when they saw the difficulty of travelling 402 miles in ten days, and if they went by country carts thirty-four days, they could not fail to be struck by the advantage of railways, as displayed in a paper which he held in his hand, by which it appeared that the average time occupied in doing the distance between Calcutta and Delhi was by dak fifteen days and nights, by steamer thirty, by river boats thirty-six, by horse or walking seventy five, and by hackney with goods ninety days and nights; while by railway it would be only thirty-six hours.

He thought that they need be under no apprehension of obstacles being thrown in their way, either by Europeans or natives, but that they would naturally send their goods by the railway, seeing the advantages that it offered, as he found that the lowest charge was now about 1s. per ton, and that they travelled at the rate of about four miles a day. They had all seen the effect which cheap travelling had produced in this country, where the increased means of transit had improved the produce 1 to 300 fold, travelling 400 per cent., and the value of land to an incalculable degree.

The low state of locomotion in India at present crippled its trade and commerce, and had a very detrimental effect on the value of the national property in that great empire. India was now pretty well in the same state as this country was in the days of the packhorse, and he felt sure that in a short time railways must be introduced into that country, for no one would think of making roads when the advantages of railways were so apparent. Whether the shareholders of that company were prepared to go on or not in making the line.it was clear that it must be a more question of time; and he (the Chairman) thought, from the data laid before them this was the time, notwithstanding the difficulties by which they were surrounded as regarded the money market, when they should proceed, and he should be sorry that any delay should take place that would take the line out of the hands of those who originally promoted the scheme. He had been reminded that they could have no opposition either by dak or steamer, and that when once the railway was made they must have the whole of the traffic their own way. Throughout the report great stress was laid on the fact of this being a political line.

In his (the Chairman's) earliest communications with the East India Company and Board of Control, and in the despatches of the Governor-General of India, that point had been maintained, it being urged that in a country which was principally held by a European army or native troops under the control of Europeans, and where a large extent of country was under the management of a few Europeans, that railways must reduce expenditure, prevent insurrections, and enable the Government to be almost ubiquitous, as described by Lord Hardinge.

The introduction of railways in that country was not only a question of economy but one of humanity, for it was found by the evidence of Lord Hardinge and other great authorities that a great source of the loss of troops in that country was attributable to the long marches to which raw recruits were subjected, through swamps and under the influence of a burning sun; and as railways had been found in this country to be of great advantage to the health and comfort of the soldiers, they must prove doubly so in that country. Then, independent of the claims of humanity, the north-western provinces were the only parts of India whence aggressions could be apprehended, and he (the Chairman) fairly stated that he thought they ought to be supported by the East India Company.

He did not deny that giving them the land and a four per cent, guarantee was a great advantage - as large, he believed, if not larger, than that given by any European continental Power - but he still said that if they sent their money to such a distance to promote the revenue and prospects of that portion of the empire that they were entitled to something more. Still he did not deny the advantages of the four per cent., but he believed, with judicious management - knowing as he did that the principal parties at the India House thought that they ought to have better terms, only that they had acted under control - that the terms would be modified, and he believed that they might safely leave the negotiation for better terms in the hands of the directors, when he had every reason to hope that the modification would be granted.

Having given them the estimated cost and traffic, he might state that the expected returns were if they made the whole line 18.25 per cent., the lower half 12.25 per cent., and the upper half 11 per cent. He was quite aware that fragmentary lines were not so advantageous as complete ones, and also from the uncertainty of the money market, and the regular rates of interest in India, that 11 or 12 per cent, was not one which ought to prevent the East Company coming forward to their support. He thought that ii they got 18 per cent, they deserved it, but that would not render him insensible to what he thought they had a right to expect from the East India Company. He was aware that they had fallen on evil times, and he had no doubt that the unfortunate delay that had occurred with their company had, in some measure, brought them to those times when it would not only be difficult to raise a large sum, but the pressure in the money market might render it not only difficult to raise money at a moderate rate but even to raise any large sum at all. He would therefore lay before tin in the plans which they proposed to adopt to employ the 3,000,000/. to be guaranteed by the East India Company. They (the directors) would feel it their duty to keep in the first instance within that sum, for which it was calculated that two sections could be completed, one in the upper and one in the lower province, which , were to be decided upon by the Indian Government. To do that it would be necessary to make calls not exceeding 15. per share. They had 21,000/. in hand, which would be sufficient to pay all preliminary expenses, but when they came to enter into a contract with the East India Company they would have to provide for certain expenses, which would make it necessary to make a call. In his opinion it would not be requisite to call for more than 1/. per share for the year 1847-8, before the cold season of 1848, as that would be amply sufficient to commence the works. He hoped, with the enlightened and talented chairman of the London and North- Western Company, that the present extraordinary pressure on the money market was only of a temporary nature, and that by giving them time, after making the call of 1/. per share, in three or four years for making the further calls up to 15/., that there would be no risk run which prudent people would be afraid to incur. It should be also borne in mind that the four per cent, from the East India Company was payable from the moment the calls were paid up, and there could be no doubt that they would forego their demand of a deposit of 500,000/. before the works were begun or the 4 percent was payable. In addition to the 4 per cent to be allowed from the East India Company, the directors had taken power in their deed of settlement, it the state of the money market should require it, to pay an additional 1 per cent., so as to make the interest 3 percent., which he hoped would be sufficient during the years 1848, 1849, and 1850, to induce parties to come forward in support of a scheme which would not only be of great importance to India, but to this, country after which he believed that they would receive an adequate remuneration from the line.

He had also to mention that there was a proposal amalgamation between them and the Great Western of Bengal Railway Company. Circumstances had arisen during their negotiation with the East India Company to render that course desirable. That company bad proposed to make a branch which somewhat interfered with that line; and it being thought desirable by the East India Company that two sections, one in the upper and one in the lower province, should be made, and it being evident that they wished that an arrangement should be come to between the companies, an amalgamation was entered into on terms which he believed would be satisfactory to the shareholders, and for the approval of which a substantive resolution would be submitted at a future meeting. After much and careful consideration he was proud to say that the directors had carried the affairs of the company to their present successful position, and he had every confidence that they would be entrusted with a continuance of the management by the shareholders. (Cheers.)

In conclusion he begged to move that the report be received, adopted, and printed for circulation among the shareholders.

Mr. Colvin seconded the motion, which was carried by acclamation.

Mr. Hitchins passed a warm eulogium on the past services of the directors, and the economy with which they had conducted the affairs, and concluded by moving that the shareholders, highly approving the proceedings of the directors, beg to express their sense of their zeal and ability, and request that they will continue to conduct the affairs of the company.

Mr. Hautly seconded the motion, which was carried unanimously.

After a short conversation, in which it was mentioned that the directors had not received any remuneration, and did not intend to do so until the company was brought into successful operation, thanks were voted to the Chairman, and the meeting separated.

From the above meeting it will be seen that the problem, of the practicability of railways in India has been solved in the affirmative, and that, as we anticipated, it has been decided that this company shall at once proceed with their line. The following statistics, from a series of tables published for the use of the directors, may prove interesting and will tend to explain the chairman's speech.

We find the estimated cost of construction for a double line from Calcutta through Mirzapore to Delhi, 900; miles (including 2,000/. per mile for locomotive engines carrying stock, &c), at 17,000/. per mile, to be 15,300,000/. The line is divided into halves, the lower half from Calcutta to Mirzapore being estimated at 22,000/. per mile, and the upper half, from Mirzapore to Delhi, at 12,000/. The existing traffic on the lower half of the line is ascertained to be 2,226,359 tons of merchandise and produce, and the number of passengers of all descriptions, 560,814 and on the upper half, 1,051,881 tons of goods, and 1,051,851 passengers.

Unlike the usual plan of taking traffic in this country by doubling the existing traffic, the company have made their estimates on only 1,500,000 tons of goods, and 250,000 passengers on the lower half, 750,000 tons of goods and 200,000 passengers on the upper half, and on this moderate computation, at an average charge not exceeding; one penny per ton per mile for goods, and one halfpenny per mile for passengers, it is found that the receipts on the through line would be 6,093,750/. 3,045.875/. on the lower half, and 1,593,750/. on the upper half, while the estimated working expenses are, on the through line 1,691,210/., on the lower half 846,102/., and on the upper half 461,733/. , which would leave a disposable balance for depreciation and dividend of 4,402,540/. on the through, line, 2,200,773/. on the lower half, and 1,132,017/. on the upper half; and after deducting ten per cent, for depreciation of stock, there remains on the through line a profit of 2,872,540., or 18.25 per cent. : on the lower half of the line of 1,210,773/., or 12.25 per cent., and on the upper part of 592,017/'., or 11 per cent., so that whether the company at once proceed to make the whole line, or takes either of the portions, it will be seen; that a dividend exceeding anything that has been or can be paid in this country will be realised, and on the through line it will be double what is usually receivable; and it may be here observed that in making these estimates, founded as they are on official returns, no allowance has been made for mails or treasure.

In making the various calculations the distance from Calcutta to Delhi is taken at 900 miles, and we find that the present cost of passengers is, by dak, with accommodation only for luggage, sufficient to make the necessary changes of garment on the road 1s. per mile, or 45/.; by palkee 8d. per mile, or 30/.; by horse, ?., if you buy a horse in Calcutta and afterwards sell it in Delhi, irrespective of its keep, 1.12d. per mile, 4/. 4s.; and on foot for food, ferries, tolls, &c, 0.533d. per mile, or 1/. 17s. 6d.; by steamers, which can only go to Allahabad, 519 miles, the cost is 1s. 6d. per mile, 38/. 10s.; and by river boats to Delhi at 6d. per mile, 2/. 5s.,„ while the journey will occupy, by dak or palkee, 15 days and nights, by steamer 30, horse 75, river-boats 36, and walking 75.

By railway it is proposed to charge 1d. per mile for first-class (or dak passengers, now paying 1s), which will give 3/. 15s.; by second-class (or palkee passengers, now paying 38/.), d. per mile, or 2/. 10s. 3d. , by third-class for horse passenger, vow paving ?? 15... id. per mile, 1/. 17s. i)d.; and by fourth-class (the present walking passengers now pay 1/. 17s. 6d). at [d. per mile, or 18s. 9d.; and moreover the whole distance will be performed in 36 hours as against 15 and 75 days and nights respectively. Looking at these results we think that no person can, seeing the saving of time and money that will be effected, doubt that the company estimated their traffic very far less than may be fairly expected when they took less than that at present exists.

Then, with regard to goods, we find it almost equally favourable, the present cost of conveyance being by steamer 9/. 10s. per ton; by river boats 5/.; and by land 15/. While they occupy respectively 30, 36, and 90 days - while the railway will convey them in 36 hours for 3/. 15s.

The number of square miles of the districts through which the line will pass from Calcutta to Delhi is 97.539, the population 19,920,000, and the revenue paid 3.765,500/.

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