Series 4 > Scottish industrial history

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SCOTTISH INDUSTRIAL HISTORY
come to terms. I hope I may not be disappointed. No one can
estimate better than yourself the advantages of an arrangement be¬
tween the Companies; and whatever may be your views, you will
no doubt seize the opportunity, when they can best be expressed
and carried out for North British interests. At this time, which I
hope is the turning-point of the North British, I cannot remain
silent and be faithful to my duty to yourself as the Chairman of the
Company, and the exponent of its policy.
The financial position of the Company is far from being satis¬
factory, and I do most sincerely believe that the prosecution of
further new lines will cause embarrassments which may overpower
us. Before matters come to such a state that it would be impossible
for the Directors to deal with them, I would most respectfully but
earnestly impress on you the imperative necessity that exists for
rest.
The Capital Account of the Company is increasing at a rate
which it is clear to me the increase on Revenue, if it make no
greater stride than it has for some time, will be inadequate to meet
the additional interest or dividend; and the prospective calls on
Capital Account are so serious that the greatest difficulty will be
experienced in providing for them. I believe we may be able to
tide over till the autumn, but unless we are in a position to move off
the 1865 Shares before then, I do not see now we are to be able to
meet our engagements. We cannot make a Call on those Shares,
as the number of them subscribed is so small that our nakedness
would be too plainly published in our next half-yearly accounts.
Now, from what other source can we expect means to carry on the
contract-works and pay for plant, etc. ? We will shortly have some
Debenture powers available, but I am looking to these to meet the
Whitsunday interest. Money may, it is true, be borrowed on the
Shares from Financial Companies, but this would be at rates so
onerous that I hope the alternative will not be forced upon the
Company.
Then our Revenue Account is, as you know, in the most un¬
satisfactory state that it can possibly be. The interest and expenditure
on unopened lines is practically not charged to Revenue; and at
31st July last there stood against the account to be met at a future
day the following claims, viz: