The Express.
London, England, 1864-09-24 00:00:00

HOUSE OF LORDS.

This morning was issued the report by the
Select Committee appointed to continue the inquiry com-
menced last session, and report as to what legislative mea-
sures are desirable for the purpose of restraining direc-
tors of railw►y companies from exceeding the limit* fixed
by their acts of parliament, and from evading those provi-
sions of their acts of parliament which require that a
certain portion of their authorised capital shall be subscribed
and paid up before their borrowing powers can come into
operation ; and also to inquire and report what securities
can be given to the holders of debentures as to ►he validity
and legality of the inane of inch bonds.
The report is as follows :

"1. The committee having examined witnesses, and con.
sidered the subject referred to them, are of opinion that •
compulsory registration of debentures and debenture stock
will afford means whereby the directors of railway corn.
panne may be restrained from exceeding the amount of
their statutory borrowing powers. 2. It is the custom of
parliament, when granting to railway companies the powers
necessary for carrying out their undertakings, to limit the
amount of money they should be permitted to borrow, and
to prescribe the conditions under which such borrowing
powers should be examined ; and it is evidently the intention
of the legislature that no bonds or other negotiable securities,
other than those crested under such limited and conditional
powers, should be issued by the directors of railway compa-
nies. 3. This lineation is, however, easily and commonly
defeated by the issue of ithligstioos (purporting to be for
work done, or materials supplied for the purposes of the an.
dertaking), commonly called Lloyd's Bonds. The holders of
them" obligations can sue upon them, and recover judgment
a4ainst the companies ; and enccess in any conflict for prio-
rity of claim between them and the holders of statutory de-
bentures, would appear, from evidence given before the
committee, to be only • question of more or len diligence.
4. The directors of some railway companies are in the habit
of inning wraith's of this description without consulting
their shareholders, and without the knowledge or
consent of the statutory debenture holden ; and
the gross amount of them, which may be out-
standing against a company, is unlimited. 5.
The committee are of oration that holders of statutory
debentures, duly registered as above rethanmended, should
have a right to remover and secure the payment of all prin-
cipal sod interest doe to them, by the appointment of a re-
ceiver in priority to the holders of Lloyds bonds, or of any
other obligations or acknowledgment of indebtedness not
issued under the authority of parliament, 6. Such an ar-
raincenient may, however, be defeated, or at all events ma-
terially interfered with, if • creditor is allowed to seize the
stock of the company, and thereby stop the traffic on the
line, cod the income derived therefrom. The property is of a
different character to other property. The public have •
right to the use of the railway, and would be seriously in-
convenienced by the stoppage of even • short line. It
appear', therefore, to the committee that this power ought
sot to be allowed to the creditors of railway companies.
The committee see no memo why railway companies
should continue altogether free from the adjusting process
to which other trading companies are liable through pro-
mediums in bankruptcy. On the *outran, they an of
omen thin the present practice by which the affairs of
companion practically bankrupt are patched up by successive
Acts of parliament is iejurioos to the public, and too Ire-
%needy of no real benefit to the shareholders. When a
company pays little or no dividend on its original capital
the working expenses are often cut down injuriously, danger
arises from insufficient service, and the risk of present loss
attending any reduction of fares, even with the fairest expec-
tation of future probe, Ma bar toliberality of management. For
the public advantage, it is desirable that a railway should yield
reasonable returns to those wirier whose control it is placed;
and when • company becomes seriously embarrassed. it is
expedrot that the concern should be transferred to ethers,
00.1ef cheer management it may be efficiently coeducted.
Tte knowledge that such most be the result of mismanage.
meet would probably have • most beneficial effect oo the
proceeding" of directors, and subject the credit which
they wou:d be able to obtain to some useful restraint. With
the present facilities for forming companies, there would be
to ditheialtv in boding purchasers under sound and just re-
;:Alatious to be provided in • public act, whereby parlia-
n.elit would be relieved from having to deal with a clam of
privet, hills which are very troublesome to settle, and are
Lever of a satisfactory character. The rights of the
L..lders of statutory securities, includieg the re-
gular payment of their dividends, should of coaxes
be carefully secured throughout all the proceedings.
Ai an example of the extent to which some railway
director' are disposed to infringe the restrictions and con-
ditions of their act; of parliament, the committee would
ra:: the atteution of the house to the evidence given before
• .itmoittee of the House of Commons during this session in
IL, case of the Tewkesbury and Malvern Railway Bill. The
et. Croce will be found in the appendix."

The Royal Sovereign cupola ship is still &long-
s-4 the jetty at Portsmouth, welting further orders. The
ihtp during the pees week has ben thronged by distia-
;Pushed visite'''. Peen of the realm, members of the
wer house, and nieettie Dna I. aboadance, have all
exhibited ao satiety to coogratalan Oaplain Coles on the
•oeoen which has attended the late trial anise of this Tavel
ship.

P %TR ion.% —Mrs. J. L. Tuthill, of Factorrrille,
opt, Island. bee reads during the blackberry 811111100, jest
chmed, 72 pitons of blackberry brandy, of tits ray heft
quality, for oar brave soldiers. It gees forward to be used
lathe bospitals attached to Generals Butler and Mande's
'let arti,,et4.—Nt lc York paper.