The ordinary general meeting of the Egyptian Delta Light Railways, Limited, was held at London on the 20th ulto. Sir A. Colvin (chairman of the company) presiding.

The Secretary (Mr. F. J. Horne) read the notice convening the meeting.

The Chairman: Gentlemen, you will, I presume, as usual, take the report as read. It is with much pleasure that we place in your hands such a satisfactory account of the past year, the results achieved having been, as you will see, excellent. And this notwithstanding the fact that the cattle plaque prevailed throughout the year, and that no mouleds or religions fairs were held. Whilst the increased average mileage worked has been less than one-third per cent, the increase in the gross receipts has been £30,483 on a total of £132,791 for 1903, or 23 per cent. Towards this our passenger traffic has contributed £14,389—nearly one-half—the numbers carried have gone up by 841,715 on a former total of 3,636,688, or nearly 23 per cent. The goods traffic also was very good, the receipts having gone up by £11,272, or over 20 per cent, the tons lifted showing a very large increase of 274,167 tons on a former total of 471,530. But of this 195,198 tons were for a special traffic in earth for reclaiming land by filling. This is entered under the head of "Manure," and accounts for the very large apparent increase under that head. The increase, therefore, under goods proper is some 79,000 tons—say, 17 percent—there being an increase under nearly every important item. There was a good cotton crop, and we carried 25,326 tons more, making a total of 136,375 tons of cotton moved, mostly loose, on a total last year of 111,049. The through bookings with the State Railway is steadily increasing, and this year amounted to 112,500 tons. The stone traffic at the El-Mounir and Abou Zabel quarries has made a fair start, and amounted to 8,667 tons, and as the condition of the country improves—the improvement year by year is very notable—better houses will be erected and more stone required for building them, so that we look for a steady development of this traffic to find employment for our goods stock in the slack season. In some very interesting articles in The Times last year on American railways and their working, it was stated that one of the principal freight agents of an important American system, on being asked what would be the charges for the carriage of some 15-ton lots a distance of 35 miles, replied :—"Oh, we don't worry ourselves about such business as that. We must carry most of our freight an average of 50 miles at least before we can consider that we have paid expenses. I would rather carry from ten to forty tons of freight a distance of 1,500 miles for half a cent per ton per mile than I would carry it fifty miles for five cents per ton per mile." We think our staff, therefore, deserve credit for the results achieved, when I tell you that the average load of all our goods traffic is only twelve miles with comparatively few consignments as large as 15 tons. We had about 300 miles of telegraph open at the end of the year, and earned £1,088, against an expenditure of £479. There is not much money in it, but it is a great convenience to our customers and in train working. Sundries also show a good increase of £4,610, due to hire of rolling stock for construction purposes, and to profits realised for the sale of reclaimed land. As regards our working charges, whilst the gross receipts have gone up by £30,483, of this increase only £8,857 has been spent on extra working, and this mainly on the additional train mileage entailed by the growth of the passenger and goods traffic. This brings our ratio of working down to the satisfactory figure of 55.94 per cent against 62.12 last year. We trust that the traffic will steadily increase, and enable us to put this figure even somewhat lower; but on the other hand, we must remind you that as the line grows older the charges for maintenance and renewal of permanent way and rolling stock must increase. Well, gentlemen, when after meeting all charges for Debenture interest, putting by the sum of £11,046 for the sinking fund, and £2,834 for reserve, or a total ol £13,880, equivalent to 1.8 per cent on the Preference capital—although a considerable portion of that capital was unproductive owing to delays in getting sanction for works, in obtaining possession of land required, ant other causes–we found that we had sufficient to pay you a dividend of 5 per cent for the year without any material reduction of the amount brought forward from last year, to say nothing of having an appreciable reserve in hand, considering the short time we have been working, we thought that with favorable prospects for the current year before us we were fully justified in recommending for your approval that dividend.

Since the report was issued we have heard that Government have given their consent to the fusion of the Helouan Railway with that owned by the Delta Company, which has now been taken over and worked by us. As pointed out in the report, the concession for the Cairo Quarry lines has been completed, and we have now started work on them. For the reasons given in the report we have not during the year made as much progress as we could have wished with our extensions, having only opened some 17 miles ; since September 30th 6 miles more have been opened. The concession of the Province of Menoufieh is still delayed, pending the completion, presumably, of Government formalities, although we have done what we could during the past year to bring the matter to a close. We have also surveyed some 130 miles of line, and carried out some improvements in the way of better stations, conversion of flag stations into permanent stations, lengthening of sidings, and such-like work necessitated by the growth of the traffic. Altogether we have expended some £141,000, of which £47,611 has been spent on rolling stock, we having put on the line twelve new 6-wheeled coupled engines which take excellent loads, 25 new bogie coaching vehicles, 100 new bogie steel platform wagons, and since the close of the year 25 new bogie coaching vehicles and six more engines have been completed and are ready to go. With the growing extension and increasing traffic we must keep the line well supplied with stock, and more will be required immediately. Your board is greatly indebted to the exertions and intelligent conduct of their affairs by their staff in Egypt, to all of whom, and especially to their agent, Captain Adams, RE., the acknowledgments of the company are largely due. I am glad to be able to add that throughout the year we have continued to maintain our customary excellent relations with the Egyptian Government authorities. I may mention that the managing director and myself hope to be able to visit Egypt again this winter, to discuss various important points with the local board and the Government, and I trust our visits will continue to be of the same use and advantage to the company as I venture to believe has hitherto shown itself the case, both as regards the Government and as enabling us personally to discuss with the local board, questions which require discussion on the spot, and of which the disposal is facilitated by such a direct exchange of views between your directors. With your permission I propose to deal first with the ordinary business of the meeting, and when that is disposed of to bring before you proposals for an increase of capital. I will, therefore, now move :— "That the report of the directors, dated November 30th, 1904, together with the statement of accounts and balance-sheet for the year ended September 30th, 1904, be and they are hereby approved, confirmed and adopted." Before putting the resolution to the vote I shall be very glad to answer any question that shareholders may wish to put to me, or give any information in my power.

The Hon. Sir C. W. Fremantle seconded the resolution.

No questions bring asked, the resolution was put to the meeting and carried unanimously.

The Chairman : Tho second resolution I have the honor to propose is : "That the interim dividend paid in June, 1904, be confirmed, and that a dividend at the rate of 6 per cent per annum for the half-year ended September 30th, 1904, on the Preference share capital of the company be and hereby is declared to be paid to the share holders of the Preference shares standing on the registers of the company at December 20th, 1904, and the holders of Preference share warrants to bearer."

Lieutenant-Colonel R L. Marryat, R E (managing director), seconded the resolution, and it was carried unanimously.

The Hon. Sir C. W. Fremantle moved, "That Sir Auckland Colvin, one of the directors retiring in order of rotation, be re-elected"

This was seconded by Sir Francis L. O'Callaghan and carried unanimously.

The Chairman then moved the re-election of the Hon. Sir C. W. Fremantle, and, this having been seconded by Mr. Robert Miller, was carried unanimously.

On the motion of the Chairman, seconded by Mr. Montagu Sharpe, Maurice Cattaui Bey was also re-elected a director.