The Express.
London, England, 1847-05-15 00:00:00

200,000,0001. and 300,000,0001. were invested in railways
within so short a period. If parliament did not apply some
check in time, the most serious consequences might be
anticipated. It was true that some gold was w returning
to this country, but no amount which couldcboereia reasonably
expected, would be sufficient to replace all the capud about
_
to be abstracted from commerce and manufactures. (Rear,
hear.) One cause of anxiety was, the great irregularity
with which railway directors generally co nducted
their
affairs. Since the pusing of the hill which gave to the
government the option of purchasing railways at the end
of 20 years, the public had had an interest in knowing what
war the revenue of different companies, but it was impos-
sible to ascertain that, on account of the manner in which
the capital was retard, and the shares were held. lie held
in his hand a share list, from which it appeared that many of ;
the companies had got from six to twelve different kinds of '
shares and stock; and, though accustomed to accounts, he
certainly could not at all understand the matter. (Laugh-
ter.) By the existing law, if railway companies, whose
nominal capital was 1,000,000/., had paid up 500,0001., they
might proceed to borrow one-third of the whole amount;
and, if they wished to construct an extension line,
they might come to parliament for power to raise an addi-
tional sum. He was anxious to see them compelled to call
up the balance of the capital previously authorised before
applying to parliament for extended powers. The hon.
member then referred to the several kinds of South Eastern
shares as they appeared on the share list. He coetended that
the whole matter was unnecessarily complicated. The
London and South Western Company had eight different
stocks, the London and North Western Company had ten,
and the Midland Company twelve. It was through that
state of things that railway directors had teen able to act in ;
such an extraordinary =melee ,• and thus it was, also, that
many of them had been enabled to abuse their trust. The
Soul. Eastern Company had eight bills before parliament
in the present uesion, by which it was proposed
to raise 3,000,0001. of capital and to borrow 1,000.0001.
Let the haul* observe how the company had complied
with the standing orders. Three-fourths of the sums men-'
timed were subscribed for by eight directors, each director
having estuary signed his name for 186,0001. (Laughter.)
The intention of parliament had thus been defeated; and
this company had come forward with paper and paper men
instead of bullion and bullion men. (Laughter.) In the
case of the Glasgow, Dumfries, and Carlisle Railway, the
subscription contract was signed by ten directors and one
officer of the company, the amount of the capital to be
raised being 2,300,0001. The question of the ten per cent
deposit was not unconnected with the chartered banks of
Scotland. On account of the hardship to Sc itchmen of
having to bring their money to London, it hail been enacted
that Scotch railway companies might pay the deposit into
any of the chartered banks ; and he believed that in
tome cases one per cent, had been paid to banks
eredit (as was understood) for the ten per cent.
He would be sorry if any railway, carried on upon honest
principles, should be inconvenienced by• Peels a motion, but
the intern's of the public, and especially of shareholders, im-
peratively required that the house sheuld pass it. With the
present drain upon the country, he really thought it would
be desirable that the parliamentshould this year refuse to pass
another railway bill of any sort whatever. He (Mr. Hume)
would not propose such a resolution as that, bat he should
move the resolution given above, in the hope that to some
extent it would mitigate the evil.
Mr. GREENE (before the question was put) submitted
that it would be better to put too motion in the shnpe of a
general resolution, that in each rail. ay biilbefore the house,
• clause should be introdaced to the effect contemplated.
Mr. HU?d E assented to the amendment, and the motion
was accordingly worded as euggestal by Mr. Greene.
Mr. J. A. SMITH seconded the motion, admitting, at'
the same time, that he did not clearly understand it. As to
one point, however, he was perfectly clear, namely, that the
subject of railway legislation required their most serious
consideration. Without going into the question of the pee.
sent state of the money market, there could be little doubt
that a great art of the evil was occasioned by railway specu-
lation; and lie, therefore, did hope that on the present occa-
sion they should hear something from the eovernment as to
their opinions on the desirability of checking such syrcula-
ton. Last year the parliament were collet upon to sanction
*themes which would occasion the expenditure of ninety-six
millions of money. This year similar schemes were pre-
seated to them, involving an expenditure of eighty-two mil-
lions. He was the last man who would impede the proper
extension of railway enterprise; but rash speculation be
thought it ineumbect on the house, in the existing state
of the country, determinedly to oppose, (Hear, hear.)
Col. SI IiTHORP said it was rather late to lock the stable
door after the steed was stolen. Every one knew how de-
terminedly he had always opposed these railway speculations.
But where was the member for Montrase, when that house
had, day alter day, lut year, passed railway bills of all sorts
and desetiptioos ? On some of three days lie (Col. Sibthorp)
had witnessed the most nefarious proceedings is that house!
(A laugh.) Where was the member for Montroee then?
Why had he not attended to his (Col. Sibthorpe's) !seethe
tions ? He had long known what would be the effect of
railways, and made no secret of his opinions. The lion.
member's motion came exceedingly late, but, nevertheless,
he should give it his support.
Mr. HUDSON observed that the object of this motion was
to stop the outlay, for the present, of capital upon railways.
(No, no.) It was avowedly the object of the seconder o! the
motion. . _ _

A. SMITH said he had only referred to new specu-
lation'.

Mr. HUDSON. Or, in ether words, you would create a
monopoly. (Hear, hear.) Was the house prepared to say,
that they would either create a monopoly, or stop the flow
of capital in any particular direction? (Hear, hear.)
Was the house prepared to check building enterprise
in London, or to stop the iron manufactures in Stafford-
shire ? Interference in either of sunk directions would throw
no larger number of people out of employ than would inter-
ference with enterprise in railway.. (Hear, bear.) Why, in
connexion with the railways over which he presided, there
were engaged no less than 50,000 persons, sad, of comae,
that was but a small proportion of the nun:ewe dependent
upon those lined for oocupatioo. With regard to the capital
of railways, what portion of it would they interfere with ?
Capital was raised for various purposes, and parliament had
it in its power at any time to prevent the raising of it for any
of the specified purposes of any particular lines. To pass
such a general resolution as tide would be a most unjust, im-
proper, and dangerous interference with property ; and
though there might be rebuses in railway speculations, sorely,
when they considereil the benefit they were coaferring on
the country, they would agree that they ought to deal with
them cautiously, fairly, and even liberally.
Lord H. VANE was glad to hear the hon, member admit
that there were abuse. in the present system. He denied,
however, that the object of this measure w.s to check the
flow of capital in any particular direction. He thought it
would be quite a fair check to prohibit the payment of
interest upon deposits in schemes sanctioned in the present
year.
Mr. ELLICE said that the statements now made to the
house fully confirmed all the apprehensions he had on
former oemaiono expressed to the house, and justified the
report of the committee of last year, whose recommenda-
tions had been tee dal with such entire neglect by both the
late and the present administration. There was one point
which he wished to urge upon the house. Hitherto it hid
been almost the invariable rule with railway companies
openly to evade the standing orders, with reference to the
production of the subscription contract, duly signed by the
shareholders, and engaging them, their heirs and assigns, to
fulfil the conditions set forth. Ho trusted that care would
be taken to enforce the observance of this moot im-
p-want standing order in all futon bills. As to
railways themselves, ho fully concurred in all the
right hon. gentleman opposite had said as to their great,their
stupendous,advantages. There was no legitimate encourage-
ment that he was not heartily disposed to give them. (Hear,
hear.) He did not, however, consider it legitimate encou-
ragement, at all events in the now established position of
the principle of railways, to enable them to barrow
money in the wholesale way now practised, or to
sanction their paying interest upon di po.les before any pro-
fits were attained. He would recommend to his hon. friend
to withdraw his motion for the present, in order to give time
for the mature consideration of what cruse should be
pursued.
Mr. HODGSON thought it would be extremely r.njust,
by such resolutions as these, arbitrarily to atop all the rail-
way bills now in progress.
Mr. MANGLES deprecated abrupt legislation on so
deeply important a subct. Put an end to abuses, by all
means, but do not cheek legitimate enterprise in it clam of
speculation universally admitted to be of the highest national
importance. He saw no reason why bond fide companies
should be precluded from borrowing money of persons who
desired to lend it to them.
Mr. CHAPLIN said, that (treat part of the evil had
arisen from the clement vacillating meddling of parliament.
Lord J. RUSSELL waild advise his hon. friend not to
press the motion before the home. It appeared to hint that,
se it stood, that motion might be productive of very
severe inconverienee' without producing any counterba-
lancing good. While there might wall be ground for further
investigating the subject, yet he hoped the house would not
fall into the error, because it had been too lax in sanctiouu
railway schemes, of going to the opposite extreme of arbi-
trary severity, and thus abruptly check a most advanta-
geous and wholesome application of the capital of the
country. (Hear, hear.) Railway schemes could not, of
course, he allowed to proceed without the interposition of
the legislature in many points, but as to the application to
them of the capitalof the country, of the surplus profits which
did net find immediate investment in the usual channels of
trade and commerce, this appeared to him a matter beyond
the legitimate control of the house. (Hear, hear.) He
remembered no very long time ago, the bankers of London
were complaining that they eould get no more than '2 or 21
per cent. for the money in their hands—(hear, hear)—and
be remembered, somewhat further back, when lerge amounts
of money were sent from this country on speculation to
South America, to he invested in the state schemes of some
of the not very Annelle and not very stable republics there—
(hear, hear)—while, at another time, we sent vast sums of
money te he invested in canals and roads and other public
works in North Anoirics, where some of our debtors,
he believed, turned nut warm more prompt in answer-
ing the expectations of those who lent them money
than the South Americans had been. (Hear, hear.)
In his opinion, had parliament in the outset placed a strict
eontroul upon investments in railway speculations, the con-
sequence would have been, not the pr 'vention of improvi-
dent opeculation, but Empty the divenden of improvident
spieulatinn into other channels far less advantageous to the
country. (Hear, heir.) Whet seeswitiesagginstthe recurrence
of admitted evils were to be taken required mature
at all evento, that consider-
&rine. It WRil sufficien? obv.`ousi
com-
mittee, of five ...ben did not, :or some reason or other,
effect this security. (Hear, hear.) It might be, that these
enensittime, acting independently, felt that the responsibility
did not rest with them, but with parliament, while, on the
zither band, the hone having delegated particular matters to
the o;tionsittees, gemmed that they would thorougilly tlom