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Archive Reference / Library Class No.D3580/C/669
TitleS Laing at London, Brighton and South Coast Railway London Terminus to W Longsdon. G Ware of Canada Railway, Hamilton, Canada West By Steam via York - (Private)
Date28 Jul 1854
DescriptionWriter has received interesting letter - will see by Committee report what course adopted. No alternative. Great disappointment at excess of Estimates; could not continue to act as Committee without taking strict control into their own hands, virtually assuming management of concern - responsibility which is quite out of question. They would also have had to call public meeting which probably would have led to strong and unpleasant measure against Managing Director, Mr Brydges, which they wish to avoid. The only course was to resign and tell Shareholders that Longsdon being there armed with proxies and able to see things himself they had better trust to him and wait for further information. Longsdon should know for his own guidance, feeling in London of great disappointment and great indignation against Brydges and Directors. Within few months of opening time produced a 2nd final estimate of £300.000 which now turns out should have been £1000,000 and £1,100,000 and still merging other branches all of which if not checked by them would have run up at least another £1000,000. In short instead of having £2,000,000 or £2,500,000 to pay upon should have had £3,500,000, or £4,000,000 which would have taken £9,000 or £10,000. Work of receipts to pay 6% and if average return fall below 6% so much of Capital is on loan at that figure that any dividend on stock would soon have been swallowed up. Brydges utterly reckless or injudicious to do these things especially without consulting English Shareholders who have to find the money and Directors very remiss and culpable in letting him run on at risk and without check.
If it is necessary to raise money in England to meet engagements almost think shareholders will refuse unless under condition of passing on Act of Liquidation making England the seat of the Company and vesting all power and control here. Be this as it may, most difficult to raise money in England. Writer advises Longsdon to act on principle that no money forthcoming except what he can get from Government in Canada. Believes general wish of shareholders in England would be if possible to get the Canadian Government or Grand Trunk with Government to take the concern off their hands - confident that with a 6% guarantee or anything beyond that 4/5 would jump at the offer - so disgusted with total want of accuracy and so completely lost confidence in management.
Compared with this question of excess of Capital all others sink into insignificance. It is obvious steamboats must be dispensed with. Sawnian contract stopped at any sacrifice and all idea of branch lines given up for 2 to 3 years to come.
Urgent problem to keep expenditure on present line down to some limit that affords possibility of raising funds to meet it withoug absolutely swamping whole concern. Writer confesses not see how this can be done unless Traffic should soon so greatly improve as to restore confidence.
Great thing would be to negotiate loan or sale of concern as it stands with all its liabilities to Government.
Mr Smith has gone to Germany for some time.
Levelfile
RepositoryDerbyshire Record Office
Archive CreatorLongsdon family of Little Longstone
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