POOLING SCHEME.

Dominion, Volume 1, Issue 138, 5 March 1908, Page 7

POOLING SCHEME.

TWO ENGLISH RAILWAYS. A LECAL DECISION. 1 BY .TELEGRAM—rHESS ASSOCIATION—CO.rVKIGIIT London, March 3. ■ 'Mr. Justico Lawrence: decided that tne proposed pooling scheme-of : tho Great Northern and Great Central Railway.■ Companies oxccedcd the statutory powers of tho companies. An appeal against the decision will bo hoard on Monday. , , ■ THE MEMORANDUM. : Memorandum ofthe main lines on which the agreement' betv/een tho ' Great Northern* and tho Great Central Companies is founded is as follows:— , . ... The .working agreement between .the Great. Northern and Groat Central Companies: is. made "in pursuance' of. the ' Great 'Northern and--"Manchester,' Sheffield, and. Lincolnshire -Railway..Companies Act, 1858, which authorises the two, companies to appoint a joint committee for carrying,-into effcct the purposes of the. agreement. - . ~ The joint comimttco appointed by the: agreement are- 'in" the ? first placo to be . composed , of ' ; the.Great. Northern and the Great Central directors. i With : the, exception of the Lancashire, Derbyshire, and East ( Coast Railway, and the, Sheffield District Railway,. the undertakings of the two companies are . to be worked and maintained by the joint coinumieo. Out of tho net receipts for eachi year, after, allowing •to each , company interest: at the rate'- ;of 3J per ' cent.' por annum .on the duly authorised capital expended or to be expended hy such company from January 1, 1907, the joint committee are' to pay tho sum of i 23,803,332 to the two- companies in proportion to their net.,re-, ceipts' for the; yejir. 180G..' „ ... - Tho' net receipts !of the two companies! for. 180G' (snbjoct to slight adjustments).have beeni agreed as follows:— :,;.- .~, Great Northern Company ... JJ2,1G8,303 V" Great Central: Company .... .£1,635,029 , M ■ ■•••, ■", Making; together ... ..£3,803,332 .■; giving (in round figures) tho proportions of: 57 por cent.' to the Great Northern Company and '48 .'per cent, to the Great Central, Company, j Out of the balance of the net-receipts, .if ;and soVfar as the-same are. sufficient in each year,: the/.Great Central. .Company, are to .be allowed .fiiOOjOOO'an respect' of the capital.ex - penditure by,' them on. certain new lines, and works which ' had. not fructified ■in the year 1908. • The-residue bf::the''net receipts,' after the paymonts'before, mentioned, ( is. to be divided .between . the two; companies; in: the following proportions:— • ' - Down' to and including the year 1910, 57 per : cent. . to-i the,' Great'. Northern; Company and 43; per' cont. ,to the Great. Central Coin-, pany. ' , ''■-!! ""-'''.'.V ''' ' r After the' yeai;''l9lo, .and down ' to. and/including the year. 1912, ,56i per , cent, to the Groat Northern Company and 43J por cent, to the Great Central Company. After tho- year 1912, SG-'per cent to the Great Northern, Company' and 41 per; cent., to the Groat Central Company. ' \ ; The agreement does not seek to alter the constitution/' of any. joint undertaking in iwhiclv either -of -.the : companies 'aro 'interested, nor does it affect- tho capital powers of the two companies.:- •- • -j .ii ; : The agreement'.is to come into operation as sooii as it i has received the approval of the proprietors of each company and of the Railway and: Canal .Commissioners .i, ,