1 DECEMBER 1855, Page 7

TLIE EASTERN COUNTIES RAILWAY REPORT.

The publication of a report by a Special Committee of the Shareholders in the Eastern Counties Railway Company is a startling event in the railway world. The Committee was appointed at a meeting of proprietors in the London Tavern on the 31st of August, mainly in consequence of disclosures by Mr. Henry Bruce. We can only give the principal points and substance of the report. The Board of Directors is composed' of fifteen members: eight represent the Eastern Counties Company, five the Norfolk Company, and two the East Anglian Company. The dividend of the Norfolk Company is fixed, and must be paid before the Eastern Counties shareholders can take a penny ; and the East Anglian Company has a comparatively slight interest. The affairs of the three associated companies are managed by four directors of the East- ern Counties, two of the Norfolk, and two of the Eastern Union. The in- terests of the company, therefore, are not the interests of the majority at the joint committee. One of the strongest cases is that of the Tilbury line. To raise capital for constructing the line, 40,000 shares were disposed of; 5954 remained unap- propriated; they rose to a premium, and most of them were allotted amongst the shareholders of the Tilbury line ; but 1091 shares were placed at the die. posal of four gentlemen directors of the Eastern Counties Company. The Tilbury line was formed to protect the territory of the Eastern Counties against competition. It was made over by lease to private contractors— Messrs. Peto, Betts, and Brassey. The clauses of the sgreemout do not tsp. pear to have been read at the meeting of directors. The sum of .56,0001. was laid out by the company for Hackney and other branches, "not so much to benefit the company, as to increase the traffic and profits of Messrs. Peto, Bette, and Ikassey " ; 46,0001. was expended to work the line and find rolling-stock. The profits or receipts for the year have been 4001., or 1 per cent to the Eastern Counties Company for this last sum ! The lease com- prises an agreement giving Messrs. Pete, Betts, and &assay, the power for fixing rates for passengers, goods, and cattle, over a portion of the Eastern Counties line.

Amongst the collateral undertakings into which the company has been led, is Lowestoft harbour, whose coat exceeds its earnings ; and " it must re- main a ruinous adjunct, uulese the sea shall wash up the sands for the de- struction of the harbour," and " relieve the company from further loss." By an agreement with the Eastern Counties Union, their rolling-stock was taken for 149,7511. It was not stated by resolution or minute of what the rolling-stock consisted. In the schedules of valuation were ineleded, at 24,0004, steam-Goats plying between Ipswich, Ilarwiph, and lendoit. Steam-boats were also put on from Tilbury to Margate. The North of Europe Steam Packet Company ceased running the steamer between Harwich and Belgium ; one was put on by the Eastern Counties. Mr. Waddington was a director of the North of Europe Steam Packet Com- pany, and of the Antwerp Steam Packet Company ; and Chairman of the Eastern Counties line. The fares to Harwich were fixed at ruinously by rates.

By an agreement with "the Norfolk and Eastern Counties Coal GOBI— pay," a Lew and exclusive rate was fixed for the conveyance of coals. The Eastern Counties undertook to provide 200 waggons, and did actually provide 500 waggons, representing a capital of not leas than 40,0001. These waggons have been repaired in the work-shops of the Eastern Cpunties Company.. The company paid ready money for its coal dues; it allowed the Coal Com- pany three mouths' credit. The shareholders were surprised to find that their Locomotive Superintendent, Mr. Gooch, was a chief partner in the Coal Company ; he has since resigned his partnership. The Chairman, Mr. Waddington, was a party to the specialreduction of rates.

Mr. Gooch has a salary of 6001. Ile has received percentages during five years of not less than 20,0001. He is the owner of waggons let to the Coal Company. The sum of 80001. has been lent to the Corporation of Harwich, and the Company is committed to purchases involving an outlay of 30,0001. The Committee recommend a discontinuance of the cabs, which occasion a loss of 6001. per annum.

The last Committee of Shareholders proposed 32,0001. to be set apart for maintenance of the permanent way; Mr. Betts, as Chairman, subsequently induced the shareholders to reduce it to 10,0001. It afterwards stood at 22,0001. Mr. 'Waddington recommended the provision to be abandoned as "unnecessary." A provision was made of 90/.per mile ; but in 18.55 this was abandoned, and the only sum set apart out of the revenue for that pur- pose was 32001. on 548 miles of railway. The most important books have not been laid before the auditors. "No correct ascertained balance has ever been struck in the stores department since the period when Mr. Waddington was chosen Chairman."