The Express. — London, England, 1849-08-18 00:00:00

an mist ime 366 XL. to make good the deliaiancy in locomo tive sock ea the 31stDocember 1848. The foamier b the a:pi:wades roesived from Mr. lirtley : • Lesomollve Department, Derby, July 26, 1849. (Ramat from Report of Accountaats.) s G en tlemis,-1 beg to lay In rip'', 1. Thu amp o( 20,00 W. to put late weritirg eon& t he ties• 21* available outlaw% en hand. • This &up sit sot fairly bo made, as it io imposribla st b ," every a sa la oomph,* repair. 1% et of the stssk is always eleilm-As that peados knot at presort * a s what wadi be considered as amigo ? Wo bare S yr, rie shine 78 per mat moe• than is respired to bp s , la roam, Nit working tko walk. Of that amber, sea ,balf 193) *Weld be in petters amilition to meet clads prides sad sediment wear sad tear—this will !ears 60 for ...dm The pewit samba of •Ofiliel repairing and • yog vs *" le 811, iacluding the light salines laid up for SO .. L .Um of ospitol Is respect of GO ligkt es giass,37 of whisk Woo bore wild se s light (r disposed er r and 23 of whisk yet e l bead, ars too light for use. igp adoirion of large engines for the Arista and moisa lia working ot Om trails (the light inteiseo hay. nig bosses iseillient), the expenditure iscisired would be £16,000 ft • To the credit of the amain we kayo: fees the eels of engines £17,900 To t appropriation to new works 2,440 klepossation load from reeestas dad ogee et stock ea hand 88,683 "tties is Mariano £16,417 ill lore has ecrehed friss a change of ligat to heavy engieas, and as this circulation., cannot therein occur spin the debt will gradually be liquidated by an i.,erzsatil emp• es the sting* rats for repairs sad depreciation •• • •preelatius of carnages and waggons •• • pm los. on this perdue et the p'sat bas net arises from Gainer? wear and 'ear, bat from original defietiva eon. struettoo of a ponies, of the old sack. •Tbe recite trumion of the 'number of cariages aid wsgc. as tarok's lapsed sold will cost about £io,ooo •• • To the credit of this amount we hate: Value of material or hand £lo,ooo And from sato of sersiages - 21,780 Amount of depreciation........... €18,220 " ' This sum will be liquidatid by as lammed charge oft the mileage rats fcr repairs sad dspresiatica, KIITLLT.' " The next point of difference between the 10c0....._ and the committee is one partly of feet and pertly of opinion. and it arises on the seitsjeet ofl interest paid out of capital.' "The aceoustants say: The pretties which prevailed until the half year ending 31st December. 1843, appears to ban been, to charge capital with the interest raid on the entire 'moues raised by now shares, witkuut coosidering whether or not say portion of it had beanie productive. la the half-year alluded to capital was relieved of this bur den to the tweet el 12,61105. that sum being then placed to the debit of re venue, as f at • ' baleyear's interest on pro portine of 601. share chargeable to ** " Your committee consider the first part of this statement' in be ince:net, ineemuch m by the published statements' f rom December, 1846, to the present time, a portion brat, pad a ft e rwards the whe:e. of the 401. shares bsesute sad were de clared entitled to a dividend ; and from them respective tints interest ceaee i to be paid upon theta, and the divides& were duly paid out of reveoue. " The whete amount of interest actually paid out of capital eastern the accountants tin,l to be 228,2311. 2a. 104. "By their In- , dof dealing with toe *silent they make heat that 141,2111. 29. 10.1. of this sum ought to have been Charged to revenue, aid therefore the cepitsl has bees 'barged with that &mount in excess of what it was properly liable to. " In going late the subject with the accountants, in order to arrive at the means whereby they had come to a conclu sion so greatly at variance with the company's accounts, your committee were informed, in the firs place, that they, the etc mamas, only em.sidend capital to be charge able for interest from the time when each capital was ac• tually expended, and not from the time when it was paid into the hands of the company as the calls were made ; and, mousey, that io their calculations the ecoountants had con sidered that as soon as any portion of thi line was opened for traffic then the interest payable on the capital spent in the construction of each portion should cease to be psis' out of capitol. " It seems, then, to arise from the different mode of deal lag with this subject by the accountants from that pursued by the threaten that this great difference in amount has been arrived at. With regard to the preposition that capital account is charge ibis with interest only from the time that such capital actually is expended, your committee differ entirely in opinion from the accounts. " The moiety on which the interest less charg-d was raised by calls on shares, issued on the condition that they should bear interest on the amount call-ci up from the time of pay ment of such esti. The money was raised for the rmstrue tion of new works, and, therefore, was capital ; and capital would be jostle clargeeble with the interest from the time each interest b. gas to accrue. The remaining cause of difference between the result brought out by the acc..untants and the company's books is, that capitol was always debited with interest in the com pany's book. ' toed au entire line wag opened; whim the necountsists h ave ceased so to debit it as soon as any portion eta line was opened, in respect of the money expended on such portion. "If the accountants' calculation on this subject be adopted, then revenue will have to be debited with 141,2411. 2e. 10d. " If the views of the committee be adopted, the interest already chanted to nisi'sl well remain as it is. " The next subject is the accountants' report requiting the notice of the c enmities is composed of two item. The fast is a sum of 16,396 f. 9a charged to account of " weeks ' of roads and stations.' ea the 31st December 1847; and the ether a sum of 0,7621. Its. 4d. charged to e.mistruation account' on the 30th June, 1848. The first of these sums represented the as NOM in hand taken over on the Ist Jule, by the Midland Company, from the three amal 'striated companies. " The latter represented the eaniage stores in hand trans leered from the Bristol and Birmingham line to the Midland Conway. " The aseesntants my,' thew twos items, amounting teen Nee to the tam of 2.5,1601. Is. 44 , were properly chargeable es nesse*, and ought to have been placed to the debit of that acceent.' " It *prase that them two rams have been improperly earried from a store account and charged to capital. But, as a setoff against this, there are stores le had, according ee Mr. y's estimate, amounting to WAIN. paid for out el renew. " Grimmest. Law Ceuta. The accountaats imp Seethe only ram barged se revenue for general law cuts &Wag the period under investigation, 2321. 6e. Ild. ; year or mitt& think this essast be the only amount expended noise this head. It, the/ekes, there hat been any greater me 'indite's, it has been misted ley with other charges, so that the amount does not appear. It is probable, however, that the ram is not large. " EnOtseatueo Ash Seuvresete—la telefoon to the expenditure fee those parpeen the necountanu obesity*, that ' by far the largest properties bee been paid to mese on account, the peymants as made being carried uses se es account of eigiterering and surveyieg. imam* of a personal amount with each of the ndpleste of remain to their respective debits, until woman rendered by them, and approved by the beard, should wanted the penile of equivalent credits I. the teempasy's books; to at Wet three-fourths of this sue Bei sesesente, as far as we have bees able to ascertain, have bees rendered to the can • As to the fact of the above musses having been carried to one acceunt instead of several, your committee do not see that the result would be anything different. Moreover, the services paid for under this head were usually by contract As a the statement that ' for at least three-but& et ac t sem so seertnete, as far se we have been able to sewn* have been rendered to the company,' the cassabas sea only say that they have inquired into Um subject, and have found that accounts have been sent into the company for the greater part of the animist paid under this heed. There are still some accounts outstanding, which the direseors are endea vouring to get in, with a view to discharging them, if correct. " On the subject of the shares held by this company in ether companies, the accountants estimate that a less would be sustained of about 100,000!. if the shares were sold at present pekes. " The committeee, however, think that for the purpose of this investigation the se shoes, as part of the capital of the company, may fairly be taken to represent the amount they have cost. " There are balances in the company's books on the 31st Deeemher ben, purporting to represent masts amounting to 443,96:b. 13a. 6d. Of this sum the accountants think it likely that a low will arise fa the adjustment and realisation of these balances of 60,0001. ou revenue account. Some loss under this head, it is probable, may take place; the exact amount at present it is impnsaible to say. The best way, then, as your committee think, of dealing with this subject is for the accountant of the company to write off from time to time any bad debt as may turn up; and for the purpose of this inquiry it is unnecessary to attempt an estimate of what must be from its nature very uncertain as amount. " The company held 1,088 Bristol and Gloucester shaves, bought by them about the time of the taking to that Ihm e with a view, as your committee an informed, to noun the earning out of the arrangement. The price paid for thew, including premium, was 66,4751. 15s. 6d. The accountests say that, if now sold, there would he a Ices of 11,0531., ar thereabouts. These share. are guaranteed 6 per cast., and your committee think that they should be taken to repro mat the sem they cost to the company. "In rieht of the above, the company had allotted to them an equal number of the 371.6 e. shares lathe above line All these shares see now held in trust for the company by three directors, Messrs. Ellis, Paget, aid Peyton. " The company have also 600!. Midland 601. shares, which the directors purchased in order to be enabled to arrange with parties to whom fractions of sharee were allotted. From the fall in the value of share*, or from some other cause,' these shares were never maired of the company. They cost, with the premiums, 3,041. 10e. " The aerouwasts say that if the calls sines made as the 601. shares had been p epos these, there would be a loss upon them, at the present price, of about 8,4641. The same *nervations as the committee have made with regard to the Bristol and Gloucester, and other shares, they think will equally apply to these. ' The accountants further find that, in addition to the out standing balances on 31et of December, 1848, representing THE EXPRESS, SATURDAY EVENING, AUGUST 18, 1849. hied. Meer Mita torPikkasiikg ihi eamewillife diesfedil he empleyod la adjoedsribe balf.yearly ammo away am be wady miner, but ken the skier and doodled explanations alma to me by Mr. Pesky and Mr. Kinky, I eat whiled therms, be esfely asksi ups few some time. if there be gay error, I firmly believe it will be slightly in motes, rather Pith the reverse." " 017A1UnikID Linea. la seder to enable the shareholders I r judge rightly of Iftergesigeiety of taking them lime, it is dee to the directors to my, that in scarcely one instance was a line takes obi- fly .with the view to immediate profit, but that they were taken mainly in the ant Mimeos with the view et keeping :them oat of the bands of other conspaai.s, who it was supposed would week them Winked, to the • midway. Fog imams., se it appear., the Bristol and Bilmkgboae Pea l were taken chiefly to peeves% the Great Welters Geimeala getting poseession of them, and by that MOM befailag the broad gangs to Birmingham. The Leeds and Bradford. is is mid, wee takes to prevent it falling into the bands of the Leeds sad Monehmter, or the kinks gad York. Seek being the ewe, whether the directors acted prudently or tot, must be decid ed not merely by looking at the results to this time ea a mosey speculation, but by taking into account the mums above stated c and; farther. the elket mei rename might fairly be supposed to produce on the minds of the directors at the time the bargains were made. With theee obeervations the oommittee will report upon each line separately, and first— " BRISTOL AND GLOUCISTIS. Ann fitititurzuam Ann GLOUCLITIS " Thyme lines were first taken is ken from, July 1,1846, and were afterwards purchased by the Midland Company ea the terms of 6 per coat to be paid to the shareholders on the capital impended • dm Midland Company also taking to the dents of dime copesies. The o:eat Western Company, it appear., were in treaty for these lime at the time ot the Mid land arrangement, aid with a view, as is stated, to bring the broad gauge to ihrmiembant. " At the time of du hernia the lime were not paying as mash as the Midland agreed to give foe them, and from that time to Dieember 31,1816, a Lou of 27,6001. wee inigellised, from the re being len by that amount than the sum payable to the proprietors and creedtore of those lines. From that time to the present the trade accounts of all kinds, except for passeagers, appear not to hare best kept separately from the general accounts of the company, and therefore your committee have no mew of being enabled to state with certainty whether any or what amount of loss may hays been sustained since the above date. But to meet this deficiency as far as practicable, your committee ordered a return, the most correct that could be made, of the traffic of all kinds for the ball year ending December 31, 1848; and by this return it appeors that, after paying the usual sad proper charges, the balance of revenue available for the pay ment of dividend and interest is 69,2191.3 e. 11. d. The divi dend paid for the same halt year, as per printed report, le 50,7331. 15e. 10d. and there appears also by the company's books to have been paid for interest due 17,3801. 65., nuking together 68,1641. le. 10.1. For that half-bear, therefore (i.e. ending Dec. 31, 1848), these Ii ise, subject to the approximate accuracy of the account furnished to the committee, may be supposed to have cleared themselves, or nearly so. " With regard to the loss that might be sustained on those lines, it appears that there wee an agreement trial the Lon• don and North-Western C empty, that they should bear ball of it for 10 years. This agreement, however, bas been cancelled, in consideration of the Midland Railway Com pany being allowed the use of the station about to be erected by the L=ooll and North-Western at birmingham, and acso to run their trains over the additional piece ot line which will be constructed from the present station of the London and North-Western to the new station in the centre ot Bir mingham, fur a merely aominaal annual sum. " Your committee have inquired fully into the value of this new arrangement, both es a convenience to this com patty, and also as a consideratioa fur canceling the previous agreement. Th. result is that they consider the use of the new station at Birmingham to be indispensable, and that the vain, of it, together with the use of the piece of new line, is fully equal to the liability to share the lose on the Bristol and Birmingham lines, from whirs the London and North-Western Company have been released. The motives of the directors in taking these lines, your committee think, need not be called in question, inasmuch as, from all they have been able to learn respecting them, it seems likely that, ere long, they will be profitable concerns. Your iremmittee have been over the lines, and the/ certainly afford, as appears to them, great facilities for traffic, Tag removal of the ne eossity for using the ' lift' at Birmingham, and also the break of snags at Gloucester, your committee think should be attended to es coon as convenient ; the former of them, in consequence of the erection of the central station at Bir mingham, being indispensable to the full development of our traffic. "The interest in these lines held by the Midland directors at the time of takinc to them was some 143 601. shares, which was held among four; at the same time the board held Midland stock to the amount of more than 100,0001. "Tile LEEDS AND BRADFORD. "The act for making the line from Leeds to Bradford, with a branch to join the Midland, was obtained in the erasion of 1844. The capital was 400,0001., to be r .ised in 601. shares. In the following session of 1845, the act for extending the line from Shipley to Woo was passed ; the additional capital to be raised for this purpose was 500,0001, also in 501. shares. There was also power to borrow to the extent of 300,0001. " The lines— both the Leeds and Bradford proper, and the extension to Cohn—wets made by the proprietors ,• but shortly before the completion of the original line on the Leeds and Bradford proper, the Midland Company agreed to take them both on lease at a rent of 10 per cent. on a paid up capital of 900,0001., for the term of 999 years ; which agreement wee sanctioned by a general meeting of the Midland Company as the 25th of July, 1846, and the lease forthwith negated. In the leen it was provided that until the whole of both lines should be finished the rent payable by the Midland Company should be 45,0001. per annum. The main line was opened about the time the lease was executed, and the rent of 45,0001. per annum has been paid to the end of last year. The whole of the line being at that time fini,hed, the Midland Company will have to pay this half-year, 45,0001., instead of 22.5001., that being at the rate of 10 per edit. per annum on 900,0001. " Messrs. Hudson, Waddinghsui, and Murgatroyd, three of the Midland directors, were among the original promoters and directors of the Leeds and Bradford line, and each had a large allotment of shares; and Mr. Wi.ddinghans, who seem to have been the most active, has given so lull an account to the committee, both of the projecting of the scheme, and of the way in which it came into the hands of the Midland Company, that they have thought it beet to give his account in his own words. Mr. Murgatrod was examined on the same subject, and corroborated. sub stantially Mr. Waddingbam's testimony. " The prominence given to this among the guaranteed lines ernes chiefly from the fact of so large a rent being payable for a line of the traffic en which no statement has bees hitherto published, and on which it is supposed that the Midland Company sustain a great loss ; and partly from the supposition that many of the Midland directors held them a large amount of shares in the Leeds and among at the time the lease was agreed upon, and conse quently, were actuated more by a regard to their own in terest than to that of the Midland proprietors, in promoting the taking of this line by the Midland Company. " With regard to the traffic on the Leeds and Bradford, it appears that, except as to the passenger traffic, the an *ants have not been kept as for a separate line, and, am =ly, a correct account of the traffic cannot be far. "Yo committee, however, in order to leave as little limbs as possible on the subject, ordered the most correct return that maid be made for the half-year ending the 31st December, 1848. From this return it appears that, after deducting the ordinary charges against revenue from the grew receipts, the balance remaining is 17,1621. 4e. Bd. The rent payable for the line for the same half-year was 22,6001., and interest on borrowed money, B,3lBl.—together 30,8181. The loss, therefore, upon the half-year appears to he 13,6661. " It may be proper to take into account the amount of traffic brought upon the main line of the Midland, which if the Leeds and Bradford were in other hands, might pos sibly have been diverted into other channels. The whole produce for the half-year ending 31st December last to the Midland main line, from traffic to and frees the Leeds and Bradford line, is 10,6111. 91. Bd. • moreover, your committee believe that there is • constderable improvement in the traffic over the corresponding period of last year, so that it may at this time possibly be about half paying itself. "At the time the lease was finally agreed upon, nine of the Midland directors held shares in the Leeds and Bradford. Shares. Mr. Waddingham held 1,261 Mr. Murgatroyd Mr. Hudson ao The ',maiming six directors held among them 338 'harem. mss to 16,9001. Six of the Midland directors had so 'Dark awl Bradford shares. "Ss Midland board at the game time held stock and Ibises to the Midland as below : Mr. Waildiasham LlO,OOO Mr. M=royd 5 ,233 Mr. H The seassimieg twelve directors held Midland stock and she te an assimat exceeding 66,000 i. t. How far the Midland dimmers were iciloanced by im modest, to =kin the bargain with the Leeds and Bradford O the above information will mast the gsspm iissYinß. Tour meamilis• add, that they are informed that at the limed ihe hese it was the opinion of many hat the Leeds mad Seedbed would eventually . pity 10 per m t at. ; and they are aware that now the same opines prevails tease extent " There seem to be doubts entertained by some of the pas misters as to the legality of this lease, and the hawbeen 'tinnily urged to take commisils epleiss thersim The matter was discussed by the assemibse. sib arried, though net unanimously, that it was net 'n=ub to de gm inasmuchinasmuch as the committee Mil lashed into le_es, end it appeared that the Leeds and Seedbed sets of LIM and 1845 gave them power to lease te the Midland Oempasy, end also gave power to the Midland Osuipany .she the lines on lease—that the teals he selling the general meeting to ensidar the mildest bib beta edverdeel es the law required—that the resedegb:dareed se the lease, lease, and that the less. had been duly em " The question, therefore, remains as It was, and can be I hikes up by the shareholders if they think peeper. "LEICESTER AND BWANNDICITON. "It appean that this line wee opened in 1832. The ' capital was 140,0001. At the time of the purchase of the lice by this company, your committee believe that it was pro clueing about 8 per sent. to the proprietors; but in order to defray the expeneo which had been incurred in relaying the line, the proprietors had for some time reduced their divi- dends to 6 per cent. A t the time of purchase of this line the Leicester and Tamworth Company were seeking to possess them elves of it, and it appears to the committee that there were reasons besides the capacity of the line to produce re- wow why the Midland eseepaoyebould become the pro prietors of it. ' The terms oa which the Midland Company purchased the Leicester and Sweasington were 8 per mat. on a ea. pita of 140,0001, taking also to the debt of that company, to en extent not exceeding 10,0001. Since the purchase the Midland Cumpeny have timbre/kip eaten i.ms, widening., and branaha, amounting to 23i " rove an approximate Tatum of trellis for the half year ending December 31. 1848, there appears, alter paying the usual canent chews, • balsa°, ot 6,6171. 2s. dd. appli able to the payment 41 dividaid. Tbis„ it will be ob served, is jam goat eseeleat to cover the Wt-year's guaranteed dividend. With regard to tbe additions made to the line, them ought fairly, your committee think, to be looked upon the same as other new lines, from which at first no greet revenue can reasonably be expected, and for the development of the trade on which a resionahle period ought fairly to be allowed. plated. --7 ' 114 whole of the additions to this line are not yet cow " Very few shares, say 85, in this line were held by the board of dinetors._ BILIWAINIC VALLIT. "This line was In pleated in 1844, and in February,lB4s, before the act was obtained, was 'greed to be purchased by this company, the price being a minimum guarantee of 6 per cent. on a capital not exceeding 146,0001. This line wen opened in September, 1847, but up to this time the intik has been small. This may pertly be accounted for by the fact that a canal runs parallel with the railway the entire length of the valley, and also :partly by the fact of the rail-1 way not being at present a thoroughfare. There is, however, in the course of construction about 14 mile of line, which will unite the Erewash with the Mansfield and l'ington branch, and thus open the valley to Mansfield. Teem is also an extension being made towards Clay Cross, about 24 miles in length. " From the exceeding richness of the Enmesh Valley in 1 minerals, as well as from the extensive iron-works of the Butterley Company being situated en or near the line, your committee think that in a few years it is liaely that this line will be remunercive in itself, es well as become a most valu able feeder to the main line. "Moreover this line, in the hands of an independent company, might, by the addition of a few miles at the north end, have been made to join the Midlan.l main line near Clusteritld, a.,d thus have become a competitor with the Midland for a portion of the traffic en the main line. By these same means also, whenever it shall be necessary to shorten the main line, it may thus be effected. Independently, therefore, of the value of the line in respect of its own traffic, your committze think It would not have been WWI to allow it to have been in other hands. . _ ly 40 shares were held in this line among the Midland directors. _ _ .. SHRIPIELD AND ROTHERHAM. Tvis is a short line, connecting the town of Sheffield with Rothe, bona and Masborough. There is a considerable traffic on this line, and your committee entertain no doubt of its being rananerative to the c..mpany. •• The line was originally laid with rails too light for the traffic ; bat slam it mom tato the hands of this company it has teen relaid with heavier rails. Before the purchase ot this line, the Midland Railway approached no nearer to the important town of Sheffield than about 64 lees, at Muborougb. This was a great de tect, and felt to be a great inconvenience to all parties ; and it appeared that the best way in which that which was omitted when the Midland was made could be supplied was to purchase the Sheffield and Rotherham line. The share capital of this line is 150,0.01. on which there is guaranteed a dividend of 6 per cent. "Year committee were so satisfied of the traffic on this line being remunerative, that they did aot think it necessary to require any return of it, especially as no separate account bad been kept as for a distinct line. t. Only one of the Midland board held ;shares in this line at the time ot the guarantee. "Cottaxeiox. " From a perusal of the whole report, including, of course, that of the accountants, an idea sufficiently correct, your committee think, for all practical purpose, will be gathered. It will be seen that, If the corrections of the capital end revenue accounts, as suggested by the accountants, he laid aside, it will require some 2,600,0001. more capital to finish all the works for which acts have been .obtotned than the company have present power to raise. If, on the other hand, the company stop short on the completion of the works in hand, there wilt be a surplus of ay. liable capital of about 2,000,0001, which may be applied is the discharge of so I much debt. . if it be determined to cornet the capital and revenue accounts, as suggested by the aceuntann, the position of the company, u stated aBove, will also be liable to cor rection. Your committee, however, think that the but course to take would be to leave the two recounts to stand as they do, subject to the liabilities of revenue account ad mitted by the company, which may be dealt with at the convenience of .he company. "Of the guaranteed lines, the only one, as it seems, likely to remain long a burden is the Leeds and Bradford. It is probable that this will become less so year by year. As the works in ;hand are nearly completed, the capital account may soon be virtually closed, and so further dis putes about the due apportionment of ezprnclimre between capital sod revenue acceunts be avoided. From the accountants' report it appears that, on the 31st of December hat, about 800,0001. is the amount esti• mated to be necessary to complete the works in hand. There have been since that date various palmtmts on account of the works in hand, but owing to the company's accountants having been so much leaped by the investi gation the committee cannot conveniently ascertain the amount. t. It will be seen that the company has, or will shortly have nearly 600 miles of line ; and that it is entirely owing to t h e great increase of capital expended in the construction of these, together with :be unfavourable results of the guaranteed lines, that the necessity for reducing the dividends has arisen. " As regards the security the concern affords to the d. ben ture and other creditors, the committee n•ed only point to ' the fact that, for the year ending 31st December last, after paying working expenses, rates, and taxes, the rent of the I Leeds and' Bradford hoe, and all the interest on the borrowed capital out of revenue, there remained above half a million sterling applicable to the payment of dividends, guaranteed and otherwise. " Creditors, then, having precedence of shareholders, either guaranteed or not, it follows that the company are entitled ' ' by the condition of their ee , to borrow on the lowest terms the general value of money will admit of. " Hereafter the attention of the directors will be confined to the working of the line, in the cluing of which they should give special attention to the practice of general economy— to a noniron of the scale of eateries and wages, as well as to the economising of trains—running no more than requisite, and apportioning, as nearly as may be, the carriages to the number of passengers—reducing the speed, and ceasing to run express trains, as far as practicable, all of which have become necessary from the great reduction of dividend. They should also endeavour, by consultation with the boards of other companies, to agree upon a uniform system of keeping their accounts, suds system being caleralred to show clearly the actual state of every branch of income and expenditure; sad also upon a more complete system of audit, the time being now come when either a more efficient plan of audit must be adopted, or a government system will be enforced upon railway com panies, which the committee consider would be highly ob jectionable. " Moreover, the directors should endeavour to be prepared at every general meeting, as well as inclined, to explain any subject of importance connected with the company's affairs updh which they may be questioned. " Your committee think that the payment of arrears of calls should be enforced as speedily as possible, in order to avoid eventual loss to the company, " At respects the arrangements between the directors of this and other companies, whereby they are allowed to travel free over each other's lines respectively, the committee think such arrangements are both liable to abuse, and also that they are unequal in their operation, for which reason they disapprove of them. " With these observations your committee beg to conclude their report. " CHARLES AMIRIMORS (Chairman), W. surra, W. WATeox, Joy's CLannuonT, JOHN STAZILT, WILLIAM M'CIALLM, Joule Miami, Jam. WILLIAM SKIM, Jun. (fieeffirtary). " Derby, August 11,1849." The accounts state that, by the half-yearly statements of 31st Dee., 1848, It appears that at that date there existed en excess of expenditure, over receipts in capital account, ' ' alleviating to the sem of 451,404 4 . 3 a. 6d., and a snrplue on revenue amount amounting to the sum of 202,3491. 19e., available for a dividend. BUCKINGHAMSHIRE. Yesterday, the half-yearly general court of proprietors of this company was held at the Easton Station—Sir ILaar VIIII4IIY, Bart., in the chair. The minutes of the last general meeting having been read and ormarmed.and the company's seal affixed to the registry of proprietors, the directors report wassubmitted to the meeting from which it appeared " That the works are proceeding in a satisfactory manner on the line from Bletehley to Banbury, and that the Oxford line is in a forward state, The station works, which have been reamed to the smallest seals conga• tent with efficient traffic accommodation, are commenced, I and the directors hope that the railway will be ready for traffic by the spring of 1850. The directors, impremed with the necewi'y of eeenomising the expenditure of capital, and desirous of accelerating the completion of the works, have decided to lay down single lines of rails from Claydon Junction to Oxford and Banbury respectively ; pro viding, however, a double line for an adequate distance at each important station, and patting down the electric tele graph for the ureic* of the railway. The terminus of the lima already authorised to Oxford, not lving so eligible in point of positio • or cost, se the directors would desire, mea sures are now being taken to endeavour by arrargements with the Great Western Company, and otherwise, to provide a better terminus, end to a Potation (with the required accommodation for exchange of trolls) with this Oxford and Rugby Line, north of Oxford. The directors hays taken eteps for closing and settling all outstanding liabilities for these expensive and unfortunate contests which followed the introduction of the broad gauge into the Buckinghamshire district." By the financial statement appended to the report it ap peared that the total amount raised on calls and loans by the smtirfosay is 881,3841.175., of whisk the sum of 844,2311.19 a. has been expended, leaving • balimee in the hands of bankers j &mounds/ to 37,1521. 18e. C The HAIBMAN, in moving that the report be adopted and circulated among the shareholders, observed that although railway property was neoserarily abbot to amok tlastattke, his feelings as to the valued his investment in the Bucking hamshire line remained quite unaltered, being neither ele vated when the shares ware high nor &premed when low. The Hon. Mr. P1111111.0114r seeocded the motion. — repo -- it — Wi; Mr. R. Carter wu re-appointed auditor. lied Major Gene ral Whines was elected M supply a vacancy is the direction, awed by the retirement of Edward Cobb, Esq. Mr. Ilinnatuts then moved the thanks of the meeting to the ehairman and board of directors, and the chairman having returned thanks, the proceedings terminated. YORK, NEWCASTLE, AND BERWICK RAILWAY. THIRD REPORT OF THE COMMITTEE OF INVESTIGATION. This &cement is to be laid beim the shareholders in the York, Newcastle, and Berwick Railway Company. at the extraordinary meeting to be held at York on Thursday next. The most interesting part of the report is that which relates to the OMIAT WORTIt 01 'NOLAND LIAIII AND Tb• •ariey of views entertained amongst mine of the shareholders (says the report), and the imps rteetinformation possessed by others with regard to the precise nature of t►e transactions between this company end the Great North of England Company, appear to your committee to make it desirable that they should present a full statement of the engagement subsisting between the two companies, in order that the shareholders may be the better able to understand and judge of the course which the committee will have to recommend. In 1842, the Great North of England Company were an dunked to transfer the making of the line north of DAT• Heron to any_other company, and an act was paned, incor porating the an and Darlington Junction Railway Company for comoleting the railway communication between Newcas•le and Darlington, the works of which were imme diately commenced. In the early put of 1845, Mr. Hudson, who was then chairman of the Midland, the York and North Midland, and the Newcastle and Darlington Cempaniee, entered into ne gotiation with certain sharebolden of the Great North of ,England Company for leasing the line of the latter I compute, with power of purchaee, and an agreement for !eau and parches was ultimately come to between Mr. Hudson and Mr. Oxley, who was then the chairman of the Great North of England Company. Your committee I have not :been ahle to obtain a sight of that agn ement, les it is stated that this company is not in possession of it or of any c• py, and the solicitors of the Great North of England Company decline to produce it, alleging that they do not consider it consistent with their duty to furnish any dotty- Meat belonging to their company, for the purposes of a com mittee formed and opt ointed by another company. Your cemmitUre, howsver, have no doubt that the terms of agreement were contained in certaia resolutions submitted by the chairman and directors of the Great North of Eng land Company to a meeting of their shareholders on the 24. h June, 1845, and which then received their unatimous approval. Those resolutions were as follow : G.CTit• nucleon, Ens. of York, cheirman of the Midland, the York and North Midland, end the Newcastle and D..r. newton Jurction Railway Companies, having, on behalf of those companies, agreed to the following propositions made to him by certain shareholders inthia company, and approved by the directors thereof, for leasing the Great North of Eng land Railway, with power of purchasing the same, namely :- 1. That 10 per cent. per annum he guaranteed on the 1001. and the 401. shares from the Ist of July next. 2. That the conditions upon which the 401, shares were issued shall remain in full fore , . 3. That the holden of the 301. shares shall receive 51 p. r cent. interest on the several calls which may be made upon them, until the whole be paid up. 4. That the sail 301. shares snail be called op on or before the Ist of July, 1847, after which time they shall rank eqtially as to rue of interest with the 1001. shares. 5. That all dividends shall be paid half yearly. 6. That the guaranteeing companies shill be the York and North Midland, the Midland, and the Newcastle and Dsr. lington Companies. 7. That the several companies above-named shall have the right to purchase the Great North of England Railway, with its stock, properties, and effect, at anytime ben*. the Ist July. 1850, paying 2501. for each 1001. share, 1011. for each 401. share, and 761. for each 301. share, and the Great North of Lapland Railway Company shall have the power to compel such purchase at these rates on the Ist July, 1850. 8. That the said companies will take upon themeelves every desetiption of liability of the Great North of England Railway Company, whether pecuniary or otherwise. 9. That in addition to the abase-mentioned terms an issue of shares of 162 each shall be made, which shall admit of an allotment of one now share for every 1001. share, and one new *hare for every two and a half 401. shares, which 1.51. shares shall all be paid up on or before July 180849, re ceiviog 6 per cent. on the instalments, after which the hold ers shall receive 10 per mat, per annum in like manner with the 1001. and the 301. shires ; and that clause 7, with r. geed to the purchasing and selling of the Orr at North of England Railway, its property and eff. etc, shall extend to the 151. shares, at the rate of 371. 10d. per share. Ann Mr. Hudson having, on such behalf as aforessid, on the '27th of May last, pledged himself to complete the ar rangements se soon as a majority of the shareholders of the Great North of England R ulway shall have given their ap pr.val at a special Kennel meeting, It was resolved unanimously, " That the terms ablve-mentioned for leasing the Great Northot England Railway to the Midland, theYoik and North Midland, and the Newcastle and Darlington J unction Rail way Companies, with power of purchase by the s_id companies be, and the same are hereby approved and sanctioned by this meeting, and that the directors of this company be, and they . are hereby invested with toll power to enter into the neces sary articles of agreement, binning this company to carry the arrangement hit° effect, so tar as th ey now legally can and also binding this company either to apply or co-oper ate in applying to parliament in the next session, as hereinafter provided, for powers to carry the same into more full and complete t fleet, and uleo aa soon as such articles of agreement shall have been prepared and approved, and the common seal of the above-mentioned three other com panies shall have been attached thereto, to affix the common seal of this company to the same; and the directors are hereby further authorised either to apply for and obtain, or co operate with the said other companies in applying for and obtaining, an acts or sets of parliament in the next session, to authorise the full and complete carry ing out of the provisions of the agreement to be entered into as abuse mentioned ; and the directors are hereby fully em powered in the meantime generally to adopt and take all such other measures and steps consistent with this company's exist ing acts of parliament, and whether in cases specially pro vided for by the foregoing resolutions or not, as may appear to them seminary or expedient for fully, and in effect, carry the provisions to be contained in the said articles of agreement into execution." Pour days after the meeting of the Great North of Eng land shareholders, that is to say, on the 28th June, 1845, a special meeting of the Newcastle and Darlington share holdeta was held,when the following resolution was passed : " That this meeting approves of theagreement entered into by their chairman, George Hudson, Esq., on behalf of the Newcastle and Darlington Janetion York and North Midland, and Midland Railway companies, for leasing the Great North of England Railway, with power of purchasing the same, on the following terms, namely." [And then fel lows an exact copy of the terms set forth in the resolutions of the Great North of England Company ] The following sdditionsl resolution was also pus ed " That the directors of this company be fully ant horised and empowered to do all requisite act" for carrying the agreement Into effect, in such manner as they shall deem most expedient." It is remarkable that, although the foregoing resolutions are entered in the minute book of this company, the minutes of that particular meeting are not signed by the chairman ; but your committee fled theresolusions entered intim minute book to correspond with the resolutions as reported in the po newspapers of the day. By a lease, dated 27th of August, 1845, between the Great North of England Company, as lessors of the one part, and George Hudson, John Ellis, Joseph Holdsworth, William Evans Hutchinson, William Murgatroyd, John Wedding too, Samuel Beale, Charles Tee, Robert Davies, James Richardson, Richard Nicholson, Sir John Simpson. Thomu Barstow, George Dodsworth, Edward Oxley, Nathaniel flews, and Nicholas Wood, Esqrs., as lessees of the other part, all the rates and tolls payable on the Great North of England Railway were demised under certain limited powers of leasing contained in the Great North of England Company's set to Mr. Hudson and other the parties lessees, for a term of three vestry, from the let July, 1846, at the yearly rent of 141,9001, payable hall-yearly. The common seal of the Great North of England Com pany was affixed to the lease, which was executed by all the patties, except Messrs. Hoaldsworth, Hutchinson, Marge troyd, Waddington, and Beale, who represented the Midland Company. A special minute is indorsed in the following words: " At a special general meeting of the Newcastle and Dar lington Junction Railway Company, held at York, on the 4th day of May, 1848. the within written deed was produced and approved of.—Goo. HUDSON, Chairman." By another deed, dated 28th August, 1845, made between the Great North of England Railway Company of the first part, and the Midland, the York and North Mid land, and the Newcastle and Darlington Companies of the second part, to which deed the common seals of all these companies were attached (except that of the Midland Company), after setting forth the Great North of England Company's acts, and the capital which had been created under them, and also the resolutions of the shareholders of the Great North of England Company, passed at their meeting on the 24th June, 1845, and also that the proposi tions for a lease to the said companies of the second part, with power of purchase, bad been approve d b y the York and North Midland, Newcastle and Darlington, and Midland companies, at meetings specially convened for the purpose, and also setting forth that it was resolved and agreed that 41 part of, or auxiliary to the arrangement referred to, the Great North of England Company sbould, in pursuance of the power contained in their first act, let t ree certain perms. named by the other three companies, the es and tolls of their railway and branch, and 9110 of their rolling stock for three years, from the first July, 1845, and should enter into a contract, for perpetual renewal of such lease, so far as they could legally bind themselves, and that accord ingly such • lease had been executed, being the lease of 27th August, herein referred to ; it is then pro vided by the deed, to which reference is now made, that the Great North of England Company should grant, and the other companies, parties thereto, should take a lease of the Groat North of England Railway for 1,000 ears, at the rent of 141,9001 . , paya ble half-yearly, on the jot July and Ist January, and that all the companies would jointly apply to parliament for powers to enable the Great North of Englar d Company to grant to the other companies of the second part, to accept a lease for the period, and upon the terms therein, before mentioned, end oleo for enablien. the Greet North of England Company to sell to the said other companies, or to such one or two of them es might, by any arrangement between them, have en option to make the purchase alone, and also for enabling or competing the companies, or stick one or two of them (as the cue might be) to purchase the railway at the period therein mentioned. And it was provided that In case any of the cempeeiss should refuse or neglect to concur in applying for an set of parliament, the other or others of such companies might alone apply for such act, and that in the meantime, and until the act should be obtained, and a valid lease in pursuance thereof granted, the companies of the second part should pay. he rent reserve!, and further, that in the meantime, and until such actehould be obtained, the lease for three years. should be renewed at the expiration of each period of three, teats, to the talent that the said lease should be renewable upon the some term, for ever. The deed then proceeds to make the companies of the second part responsible for pay meet of certain debts and liabilities of the Great North of England Company, and stipulates that, " in case the neces sary powers and authorities should be obtained frem parte. cunt, the companies of the second pert, or the Mtn r two of them, as aforesaid, should, on the one band, be at liberty (at nay time prior to the is: July, 1860) on giving notice, and ahould, on the other hand, be bound and nbliped on such Ist July, on having received tram the Great North of England Company six months' notice, to purchase the whole of the railway at the price of 3,547,5001. over and above, and in ad dition to paying the debts and liabilities of the company com prised in a schedule annexed to the deed. A prOVISO is then in. sorted in the deed, that the Newcastle and Dulington Com. pany should hue the eption of purehaeing.on their own sepa rate account, the entirety of the Great North of England Railway, on giving to the Midland and York and North Midland Corepanirs three months' notice, atter which the right of purchase shou'd exclusively beLner to the Newcastle and Darlington Company, but without prejudice to the right of the Great North of England to enforce completion by all three companies, in cue of failure by the Newcastle and Darlington COLOp 'ay. This deed is indorsed as follows :_ _ _ _ "At a special general meeting of the Newcastle and Dm Banton Junction Railway Company, held at York, on the 4th day of May, 1846. the within written deed was produced and approved of.—Gno. HUDSON, Chairman." "At a special meeting of the Great North of England Railway Company, held at Darlington, in the county of Durham, on toe sth day of May, 1846, the within written deed was produced and approved Of.—EDWAIID OILBY, Chairman. The hooka of the Newcastle and Darlington Company show, that at the half-yearly meeting of that company, held on the 16th January, 1846, it was resolved, " that the direc tors do concur in the application about to be made to parlia men: for the purchase and leasing of the Great Norm of England Railway ;" and at the special general meeting of tne Newcastle and Darlington Company, held on the 4th May, 1846, being the day of the date of the indortements on the (beds hereinbefore mentioned, it was resolved "that a bill for enabling the Great North of England Railway Company to lease and also to sell their railway to the New castle and Darlington Junction Railway Company, and to authoriur the raising of additional money by the said lasts mentioned company for those and for other purposes, be approved of, subject to such alterations therein as paths meet may consider neceniary, and that the seal of this com pany be affixed to such bill. " It des not appco that any notice was given by the New castle and Darluigten to the Midland, or York and North Midland Companies of their intention to isersise the power Riving them the option of taking the entirety of the Great North of England Railway, while the Midland and York sad North Midland Companies did not interfere in the pplication for the act of parliament, which was sought for and obtained in the session of 1846 by the Great North of E..gland and the Newcastle and Derlisgton Companies jointly, and which enacts " that it shall ire lawful for the Grist North of England Railway Company, with the consent of three-iiithe of the shareholders present at a general meeting to be held on the third Wednesday after t.O pulsing of that act, to demise or lease for any term or number of years, and also absolutely to sell and convey to the said Newcastle and Darlingtoh Junction Railway Company, and for the said last-mentioned ' company, with the consent of a general meeting of share holders, specially convened for she purpose, to accept and take, and also w purchase for inch consi .eratiane, either in a grow sum of money or annual rent, as they shall thii,k pre ' per, the Great North 05 England Railway and Branch Rail way (to Richmond) and either before or atter the same shall have been completed, and ev. ry such lease and purchase shall be valid and e ff ectual during the continuance of such it se, or absolutely and for ever (as the case may be) for the purpose of entitling the Newcastle and Darlington Company freely to use and occupy the lines of rangey and exercise the power. and privileges of the Great North of England Railway Company." By another clause in the same act it is provided, that " any deed or deed,. ngreemnts or agreements, which might have been entered into and executed by or between the said Great North of England Railway and the ail Newcastle and Darlington Junction Railway Company, either nine or together wiih any other company or companies, or by or between, or with rely of the directors of either of the same two companies, alone or jointly with any other director or rigout., with reference to the making or granting and acceptance of any such lease or purchase as aforesaid, or the terms or conditions thereof, prior to the passing of this act, or which should have re ceived the sanction of a gen. rot meeting of each of the same two last Maove-named companies respectively, should, if the same be consistent with the provisions of this act, be as valid and binding on the same two last above-named companies as though the same had been entered into under the provisions of this act." By section 8 of the same act, it is enacted, that on pay ment of the purchase-money and publication of notice in the London Gazette and upon the execution of a deed or instru ment of conveyance duly stamped for denoting the payment of full and proper stamp duty, in respect of the whole pur chase money, the Great North of England Railway, branch railway, and works shall belong to, and ha vested in, the Newcastle and Darlington Junction Railway Company. By section 15 of the same act, it is enacted that the pur chase-mosey is to be divided between the several persons who, M the time of payment. shall be proprietors of shar-e in the capital of the Great North of England Company in proportion to the number of their shares therein. By section 37 of the same act, the Newcastle and Darling ton Company are empowered to erase an additional capital, not exceeding 4,1,00,0001 , by the creation of new shares or stock, in such manner as may be or may have been agreed lupon at any general meeting of the company specially con vened for the purpose. By section 40 of the same act it is enacted that the New "aide and Darlington Company shall, after the passing of the set, be called "The York and Newoastle Railway," and by that name have, exercise, and be liable to all the rights, powers, privileges, and duties which the Newcastle and Darlington Company by that act, or the several recited setts, are empowered to have, exercise, or are made liable to. On the third Wednesday after the passing of the act, viz., on the 12th August, 1846, a m-etiog of the Great North of England shareholders was held in pursuance of the tern's of the act of parliament, and the following resolutions passed . Resolved,—That this Company do agree to lene for such a term of years as the directors for the time being of this company may deem expedient, and also absolutely to sell and convey to the York and Newcastle Company, lately called the Newcastle and Darlington Junction Railway Company, the Great North of England Railway, and also the Great North of England and Richmond Railway, together with all the stations, wharfs, houses, warehouses, buildings, works, lands, hereditament', and appurtenances belonging thereto respec tively, or with them, or any of them, held, used, or enjoyed, or any pert thereof, and all their rights, powers, and privi leges in relation thereto, or otherwise belonging to them, at the yearly rent and upon the terms and conditions men- Reset and contained in • certain indenture of lease, dated the 27th day of August, 1845, and now produced, so far en relates to a lease of the said Great North of England Rail way, and the Great North of England and Richmondltailsray with their respective appurtenances, and at the prices or con sideration mane.', and upon the terms and conditions men tioned and contained in a certain deed of contract and ar rangement, bearing date the 28th day of August, 1845, and now also produced to this meeting, so far as relates to • ssle and conveyance of the Great North of England Railway and the Great North of England and Richmond Railway, with their respective appurtenances. Resolved, also, that the directors for the time being of this company be and they are hereby authorised to do and execute all such acts, and to affix the common seal of this company to any document or documents which may be necessary to carry suck lease end sale into effect —Resolved, also, that the said indenture of lease of the 27th day of Auouet, 1845, and the said deed of contract and arrangement of the 28th Aug., 1845, be and they are hereby respectively approved of and confirmed. On the 14th of September, 1846, • special meeting of the shareholder' in the York and Newcastle Railway was held pursuant to advertisement, which set forth as one of the objects of the meeting, " to exercise the powers and authori ties of the Great North of England Purchase Act, 1846, so far as regards the leasing of the Great North of England Railway, and the purchase thereof." Your committ eehave fe rerred to the minute book of the company, which purports to contain the resolutions of the shareholders at the general meetings, and which book forms the proper legal evidence of the proceedings at inch meetings, and they find under the date of the 14th September, 1846, three rolutfons entered as having been pawed at the meeting held es on that day, and the same ere duly signed by the chairman ; but there is no entry of any resolution having been passed on that day on the subject of the Great North of England lease or purchase. This circumstance is remarkable, inasmuch urine committee cannot doubt that • resolution was in fact passed at that meeting, for they find it set forth in the newspapers which gave the report of the proceedings in the words following : " Resolved—That this company do agree to accept a lease for such term of years as the directors thereof do approve, and also to purchase the Great North of Ragland Railway and its Richmond branch and other works and property more particularly specified in a certain deed of arrangement, dated the 28th Angnst, 184-5, on the terms end conditions therein contained, and in a certain indenture of lease, dated the 27th day of the same month, both now produced, which. same instr;ments this meeting approves of and confirms." Whether the omission from the company's books ofa re solution so important to its interests was the effect of mistake or design, your committee do not venture to express an opinion, bat upon the easumptios that such a resolution was, in fact, pared by the meeting, the omission to enter it on the proceedings skews gross neglect on the part of the officials of the company as well as of the directors, whose duty it suchsg the magnitude of the interests in volved in • reeoltitthn, to have Nen that the game was legally mounted. wacky creation' (on up ,n) that *a moan. i labia to increase in riveting seentat is reopen of Debts dee to naary pantos £31.378 14 5 'stunt doe 11,955 3 9 Not introdarsd into tits books at that data ..C46,333 17 2 The whole' of the above debts appear to have bees paid slaps the 314 Deossaber, and a gnat part of the item fur Lateran is suds up by calealatioas et interest, acerood oo micas sans kw part of a half-year, swots two, three, or four meaths. whisk ars payable half-yam/Iy, sad so doubt have bees worn be duly paid. " It appease to have bees the cwetwa of the sompany to pay eat elks sample for each year the interest and m ama brosemlai die sad preseated cluing the year, but not to oaks a ty entemate of the debts isearred during the year for whish siansants have not bees sent ia. la practice, aerators, 01 suns that each year bears its fair amount of . . - expenditure. " Qualified by the ingoing observations your committee adopt the repeat Math thetheitents. " - This rethitheeatalae aroma belasersheet ea Ike filet December, Ink ithievidthg not thusly the haleness of revenue and espied thesemth se rehihbel is the haltleerly reports, 1 bat thee the edam Woos standing in the company's b Ake, by which the M is er WOO lieble to be effected. It likewise gives the eureset themeat of share and borrowed capital, with explanations et there weal inthestraties in the aele4 statement of them in the beehe. It %lit n gives a general statement of th e .of the c tespany with nference to the ezenseeks el Ow works for which acts have bees obtained, eheerlas es Pe ace side the espial required on the 3lst of D:eestbeele dieekerge all the then liabtlities of the oompeny, inehthig weeke in progress, shares is other companies liable to oath, sad lines 'who timed by acts of parliament, but not yet begun ; and on the other side the extent of parliamentary authority for raising capital remaining aluminised, and the anoint yet to to called up on Awes already created and allotted, and calls in a rear. The rigairt then separates from the gross capital of the company the amount expended iron the l-t July 1844, to the 31st December, 1348 ; and it is to this expenditure that the remainder of the report refers. " At the end of their report the accountants bring out, ander the heal' General Results, two statements, showing the corrections capital and revenue accounts the respectively liable to, according to their views. , " Your committee have, however, given the views they themselves take of the various items here referred to. If their views be sane:tithed by the proprietors, all the items , pieced on the credit side of the statement of corrections in capital account as suggest. d by the accountants should be struck out, except the item of 25,1491. Is. 4d. for stores, with which this acclunt had been erroneously debited. And I all the items on the debit side of correetioes of revenue ac count, except 34,6371., deferred lishi,ity, to male go.d the deficiency in engines, carriage, sod waggon stock, as per I Mr. Kirtley's estimate; and 25,1591 Is. 41., tot stores pre. 1 viously charged as above, as a set-off, to which credit must 1 be given, for 26,044., the value of stores in hand. 1 " GeIeZILL MANALOUIeNT. _ . " As to the erlyii;;hici; the attain of the company have bent reisneged, it is evident that for three or fur years very much of the attention of the most active of the dir, eters has been engrossed by puliamentary proeudisgs and the con. unction of new lints; and that for these reasons they have had less time to attend to tho general working of the con cern. Yet, although various branches of detail cannot but have suffered in consequence, the committee. are not aware of any particular instance of gross mismanagement. " As to whether or not it was wise to undertake the eon s:ruction of so great en extent of new lines, is a question not resting only upon the directors to striver, as none of this could have been dine without the concurrence of the proprietary. Moreover, the necessity for making these branches, or of allowing other companies t' do so, seems to have been forced upon this company, by the injudicious course, to soy the least, adopted by parliament on the subject. " The loss likely to be sustained on an) of tho cuaranteed lines, except the Leeds and Bradford, your committee think will not be great. As to the Leeds and Bradford, the report goes fully into the subject elsewhere; and it is, therefore, unnecessary to say more upon it here. The reasons an d motives @rutting the board in making these bargains, will doubtless be eluely cantered ; but after having read the entire report, amid after making a lair allowance fee errors of judgment, and viewing railway affairs as they stood at the time, however much the proprietors may regret that some of them were ever made, the committee doubt not that they will justly apportion the amount of responsibility fairly chargeable upon the directors. " As to the future, it will be for the proprietors to say whether any or what change shell be made in the direc tion. Your committ' e, however, are decidedly of opininu that there should be at once an appointment of some new directors, either in additian to, or in substitution of, an equal number of the present board ; and in order to arias the proprietors in coming to a conclusion, the committee here give the various suggestions they have received on the subject. Ono of these tecommends the appointment of a stipendary chairman, who should give his whole time ; the rest of the board to be paid 1001, a-year each, as at pre tent. Another, that there should be a chairman end two or three other directors paid for giving their whole time ; the rest of the board to be pail as at present. Another mutation is, that the board should be increased to the as ssimurn ~umber allowed by the act of parliament—vie., twenty—with the same gross allowance as at present, to be divided am-eg ' themsel its, according to the services rendered. Another, that :he number should be 15, out of whom there should be formed three or four sub-anthaittees, fa the special purr ose of superintending matters of &awe, way sad works, rolling stock and stores, and traffic ; end than committees should be allowed amone them 1,5001. for these special duties, and that the whole 15 should have the usual allowance of 1001. each, for attending to the ordinary basilicas of the board. The cost of this latter plan would Wash, 3,0001. per annum ; 4001. a year more than the allowance at present, now that the construction committee has ceased. " As to which of the above plans would be the best, your committee would hardly undertake to decide, but they will make a few observations with the view of assisting the pro. prier,» In coming to a conclusion on the sub,ce, if it should be thought right to make any Literati in in the present system. " PIEXAMENT WAY. "The condition of the permanent way on the Midland lines has been inquired into by the committee, who have also personally inspected the different lines. From the informa tion they have received, and from what they have Wen, they can say that this branch of your property is generally in good condition. " It warm to be agreed among engineers that the proper mods of providing for the support of the permanent way is to make all necessary repairs from time to time from the current revenue, and to put aside an annual sum, also from revenue, to accumulate at interest, for the purpose of • gene ral renewal whenever it shall be required. " From the investigations made by different engineers it appears that they are able to speak with some degree of so- Messy es to the duration of rails and sleepers under various deoleastaamis of wear and tear. *Mr. Bedew, from an average made of the age of the mascot way of the Mullen t lines, calculates that in addi tion to the east of keeping it ordinarily in a rate of repair proper for the varLng kinds of traffic, there ought to be, when the lines are finished, a sem of about 30,0001. annually laid amide for a general renewal when necessary. "Us prepritton are aware that it was determined by • rindmeeting • year ago to lay wide 20.0001. for this ;nom If Mr. Barlow's opinion, thereon*, be acted upon, 4 per annum will have to be added. /tit Robert IPephenson, M.P., has been consulted by iffigessmatittre on this subject, u well as on that of Isemmotive Meek and be after having gems over the Midland lines 1111111111/11 lid arroborates Mr. Barlow's reportkall e m May eow ft was Ida in the propriety of setting side pie as Mtn fee renewal of the permanent way. is Your committee are not prepared to say whether or mil It Is positively requitte te lay aside so large an annual ram, awl they lea rtr that smug railway dimmers there is some ffillerrnee of opixion as to this point. They are, however, of opinion that en amount not exceeding 30,0001. will be ample, and that at all events it will be wise to increase the stem already determined to be annually laid mid. for the peepose. "Lonowouva Bronx. s's The Mate of this meek, steneralky, is a essWes• agree imams, and it has amordinaly had iamb seadisailisa bowed upon it by theanualaten. is It appears to be the bees that the proper wag ef meiatibleg this Ismael of he by repairs when reqaired, so long as mild can be kept up by suck repairs; whoa that is no hare practicable, then the seem, carriage, waggon, or whatever it be, should b replaced by • sew one. and that both repairs and enamel should be paid for out of revenue. " The moose of positive depreciation which the georreat ante say this at* had suffered on Dee. 31, 1848 has been already staked by your committee. The question here is moo peters!, and involves both the method the company profess to have follow. d in keeping up this stock; and secondly, whether or not such methi.d is a goad one; and, thirdly, whether or not the method has been, in feet, pur sued. "On inquiry your committee were informed that the method actually pursued by the company was as above de scribed—viz , to repair as long as repairing will suffice, and to renew when repairing is no longer practicable. Your committee consider this to be decidedly the best way of deal ing with the subject. They thereupon caused the superintendent to report to them upon the actual state of this stock 55 to the eakiency, and called in Mr. Robert Stephenson, M.P., to examine the stack at Derby, as well as Mr. Eirtley's statements sad re port, and to give the committee his opinion thereon." The following is an extract from Mr. Btepheneon's report, which is given in Memo by the committee: " After inspecting a large proportion of the stock, which is in excellent working martian, and considering many engines have bean so extensively repaired as to make them fully equal to new engines, I am of opinion that you will be perfectly safe in putting the repairs of sal tiest maintenance of the locomotive stock at present, at 66,0001. per annum, which, divided into the pre mut vela mileage of the Midland Railway, would give nearly 31d. per mile ; and it is upon this rate per mile that I would make the half yearly calculations ,• that is. if the current repairs during any half-year should fall short of this rate, that the difference be set aside, either to purchase new engines or rwonstruct old ones. In examining and Multi giving the condition of the rolling stock of carriages and the amount of repairs to them, I have endeavoured to arrive at a similar basis of calculation. For instance, what is usually called repairs to coshes and carriages of every descriptim is amply covered by 28,0001. per annum, and this divided into the train mileage, would give rather above lid. per silo, which lot the purpose d being ea the safe side, I would call lid. per mile. If, therefore, during any hall-year the wrest repairs of the carriage department fall short of this, the difference should be carried to the depreciation ....-, 1, No %...4'.NS , 7 R I