RAKAIA AND ASHBURTON FORKS RAILWAY COMPANY (LIMITED).

A special general meeting of the shareholders of the Rakaia and Ashburton Forks Railway Company (limited) was held at three o'clock yesterday afternoon at the office of Mr C. F. Barker, Hereford street, for the purpose of confirming a resolution passed at a special meeting held on Jan. 21, 1879, for increasing the capital of the Company by the issue of 5000 new shares at £20 each. There was a moderate attendance. The Chair was taken by Mr George Hart, Chairman of the Board of Directors, who pointed out that though not absolutely obliged to have a quorum present at this meeting they had, in addition to the shareholders present, six proxies, representing 35 votes. The gathering was therefore duly constituted. The Acting-Secretary, Mr Greenwood, read details of the former special meeting and the advertisement convening the present meeting. The Chairman moved, and Air C. Kiver, j un., seconded, that the resolution passed on Jan. 2i be confirmed, as follows: — "That the capital of the Rakaia and Ashburton Forks Railway Company, Limited, be increased by the issue of 5000 new shares of the nominal value of £20 each, and that the Directors be and are hereby authorised to allot and issue the said shares to such persons (whether Directors or others), and at such times aa they may think fit, and such new shares shall be considered as part of the original capital of the Company, and be subject to the same provisions in all respects as if they had been part of the original capital." The Chairman mentioned that numerous applications for new shares had been received, but that pending the confirmation of the resolution, such applications could not, of course, be entertained. The resolution was carried unanimously. Tliis terminated the business of the special meeting, and at half-past 3 o'clock the yearly ordinary general meeting of the Company was held, Sir George Hart again taking the chair. The minutes of the meeting held at the Town llall, South Rakaia, having been eon firmed, the Acting Secretary presented th< following report, which was taken as read :— " The Directors, in submitting their Firs I Annual Report, have much plea? lire in con gratulating the shareholders on the successfu issue of the applications made to Governmeni and the ratepayers, for sanction of the Com pany's Railway in the face of very keen ani influential opposition, as well as on the verj satisfactory progress that has been made ii the formation of the Company's lino, as yoi will perceive from the Engineer's Report which will be read. Your Direotora -wer fortunate in securing Messrs J. and A. Andei eon as the contractors for the formation, con struction, and equipment of the first portioi of the line tsom. Kakaia to Mefcbven, for

sum of £57,500, and making arrangement with, them for taking payment on the Com pany's debentures, bearing 7 per cent interest at par. j " This contract would have enabled thi ! Company to have realised the nnticipatioi fceld forth by the Provisional Directors thai not more than 50a per share -would hare beer called up, but Parliament during its lasl session passed "The District Railways Amend inent Act, 1878," one of the provisions oi which limits the borrowing powers under the Act to four-fifths of the costs of its Railway, Your Directors are advised that this Act affects (ho operations of the Company,- and that it will be necessary to- limit the debentures to four-fifths of the actual costs of the Eailway Works; this will necessitate the calling up of additional capital to the extent of 30s per share, " Great pressure has been brought to bear by the landowners of the Alford Forest and Mount Somers Districts to prevail' upon the directors to at once commence the intended extension of their Tine to Buccleueh Township. To enable the Company to. do this, your directors found it necessary that the capital of the Company should be increased by the further issue of 5000 shares of £20 each"; an extraordinary special sueeting was accordingly called for this purpose, at which a resolution to tbafc effect waa passed, and which you will be called upon, oil' the 28th instant, to confirm. Your directora have applied to the Government for their consent to this extension, it being absolutely necessary that that consent should be obtained, as tho proposed extension would form a portion of the projected Government interior main line from Oxford to Temuka. The directors found it necessary to appoint a general' manager to organise the working of the line, and to take charge of the stores and rolling stock as thev arrived, and have selected from amongst a number of applicants Mr Lawrence Oxley, who was highly recommended for the office. The directors have held twenty-five Board meetings during tho year, in addition to numerous Commitee meeting?, and four general meetings of the Company liavs been held." The balance-sheet submitted showed receipts on 3G7-1 shares, £1837 ; deposit on 10 shares and amounts due from applicants (on 185 shares), £92 10s ; amount of cheque for annual license fee, not yet presented at the Bank, £50; total, £1979*103. By payments, preliminary expenses, £1120 lls 3d ; survey, £316 16a 6d ; charges, £50 ; cash at Bank of New Zealand, £370 12s 3d ; balance,' £91 IDs; total, £1079 10s. The Chairman called attention to the fact that the balance-sheet had been made up to Dec. 31 laat as the most convenient course. Application had been made to the Government for an extension of the line to Taylor's crossing, and the reply which had been received showed that the Government would place no obstacle in the way, provided the clauses of the Act were duly complied with. And it might now be reasonably assumed that the landowners in the district would regard the proposed scheme with favour. The Chairman congratulated the shareholders upon having been so fortunate as to secure the services of Mr Oxley as manager, and stated that the contractors, Messi'3 J. and A. Anderson were making highly satisfactory progress. The Chairman moved and Mr 1). Craig seconded the adoption of the report, the motion being unanimously agreed to. The Engineer's report was read as follows : — " I have the' honour to report on the progress and condition of the work of the above railway. " 1. The contract was let to Messrs J. and A. Anderson, who supply vails and fastenings, sleepers, rolling stock, and certain buildings. "2. The rails to be used are of steel, weighing 521bs per lineal yard. The tender for tlicso lias been accepted in England, and! am expecting daily to hear that so'mc of them havo been shipped l . "3. The engines, two in number, were ordered in America, and are being built by the .Rogers' Engine Company, who arc considered the best makers in the States. They are tank engines, 11-ineh cylinder, and 18---inch stroke. The tank is at back of engine in form of a small tender, not attached to the engine. These engines were to be ready by Jan. 25. " 3. The cars were also ordered in America. They consist of 1 first, 1 second, 1 composite, and 1 baggage van. These cars are being built by Gilbert, Bush and Co., who are firstrate makers, and they were to be ready by the 10th of this month. "3. Tho-wnggons-, ten in number, are being built by Messrs Anderson in this country, the wheels, axles, i£c, being imported. These waggons are according to the sanoo pattern as the Government stock. The number of waggons appears small, bat they are for local, station to station, traffic only, and will not leave our line, as- the Government has decided that all through traffic must be done with Government waggons, for the use of which the Company will have to pay. " 1. The buildings included in the tender of Messrs Anderson form only a small portion of what will be required, and these are not wanted until the line is near completion, so that Messrs Anderson will be able to make use of the railway for the conveyance of the material. " 5. The earthwork for the railway is being carried out, but the harvest has interfered with the progress of same. The earthwork is completed to 39' miles 50 chains, being a distance of four miles seven chains from Rakaia. This includes the road and stream diversion at 38 mile3 70 chains, which was one of the heaviest work* on the line. "G. The bridge at this point is in hand, and some of fclie timber is on the ground. "7. The last heavy rain gave us an opportunity of seeing where more culverts were required. These have been ordered and are now in hand. "8. Although, owing to the scarcity of labour conseqent on harvest, the work has not been advanced as much as I should like to have seen it, I must give the contractors credit for having done the most witli the number of men they have, and I make no doubt when the pressure of harvest is over they will be able to push on the work energetically. "9. The fencing has not yet been commencod, as it was too dry to do any sod work, and because in places where post and rail fencing was ordered the crops were on the ground, and I did not deem it wise to interfere with them. The fencing material is, however, being placed along the line at places required, so that no time will be lost when the work can be gone on with. "10. I am endeavouring to induce the contractors to put in the bottom ballast by horse and cart. This will save time wlieu the rails arrive, and if this i3 done I see no reason why the line should not be completed in contract time. "11. There are a number of buildings-re-quired, eome of which should be put in hand at once. In fact, the matter would have been attended to already, but fora desire expressed by the Board that it should stand over until a manager was appointed, to enable his opinion as (o the position of these buildings to be taken." The Chairman thought that the report must be regarded as a very satisfactory one so far as it went ; he hoped that the line would be open in readiness for the next wool season. The letter received from the Government, in reply to the application for an extension of the line, was read as follows : — " I am directed by ihe Minister of Public Works to acknowledge the receipt of your letter, and to inform you in reply that there is jio objection to the Governor's consent being given to the extension of your railway from Methvcn to Taylor's creek, provided the construction of the conditions of tho District Railways Act are strictly complied with. As regards contributing towards the construction of bridges, on the proposed extension, I ana to say that the Government does not feel justified in expending any portion of the railway vote upon private lines. At tho same time, in tic event of your Company arranging with ishe local bodies concerned for their aid towards constructing combined road and railway bridges, this will, no doubt, be taken into consideration should the Government hereafter exercise its power of acquiring 'jbe raiL way." Messrs D. G. Ilolmcs and J. T. Ford having baliottcd to retire from iha Board oi Directors, the Chairman stated fcbat Messri J. E Taylor and Gordon Hobjaes had beer nominated. Theso gentlemen were elected unanimously Mi* John Ollivier was ejeoted Auditor fo: tho ensuing year. The question of the remuneration of thi Directors having been reforred to, in accord ance with clause 60 of tho Articles of Asso ciation, the acting-Seoretary, in reply to i quostion, stated that during the year then Koon liaM 25 Board meotingSj numorou

Committee meetings, and fo'W general meel ings. Mr Craig commented upon the-' diltleult an troublesome nature of the work which th Directors hadi overcome. He regretted' to se that the amount which could be awarded* then was merely nominal. He had much pfcasur in moving that the sum of £50 be voted tiien for their services, and he would add a heart; vote of thanks to the gentlemen concerned. Mr C. Kiver, jun. r seconded the motion which v-a3 carried unanimously. A vote of thanks to the Chairman terminate! ehe proceedings.