The Express.
London, England, 1849-04-06 00:00:00

NORTH WALES RAILWAY CONIPANY.-

EXTRAORDINARY DISCLOSURES.
The first report of the committee of the Rosa 4:1
Lords appointed to report on the expediency d
amending the laws respecting railways as relating to
the more effectual audit of accounts has been fob-
lished. It relates exclusively to the affairs of flee
North Wales Railway Company, the papers and err
counts of that concern having been referred to the
committee. The committee decluao to ground eat
recommendations of a change of law upon a cue
special, and attribute:their reporting upon it to a
desire to illustrate the imperfect state of the law
under which such transactions could occur.
The first transaction to which the committee direet
attention is a loan made by the directors of the North
Wales Railway to the South Western Company :
The amount with which the directors acknowlrelfre 0.112_
selves chargeable is 46,8591.14 e. Id., of which 4241A00e
supplied by the deposit and calls. Before the 17th of lasi
1848, it would appear that this apical had been dip:silo
with the London Joint Stock Bank, bearing iuterest at le
per cent. on 10,0001., and a lower rate on the general be'
lance. On the 17th of January the directors of the NM* .
Welts Railway made a loan to the South Western Compel?
of 20,0001. At this time Mr. Bulkeley Hughes, member d
parliament for the Contributory Beroughs, was clutinnaa d
the North Wales Railway, and Wam Chadwick we
deputy-chairman. It would appear hem the evidence d**
latter, that at the period of taking this loan the South-
Western Company was authorised -by law to borrow, co-
balt of their capital being already paid up. But such loss,
to be a legal exercise of the parliamentary powers, ought to
have bees made for the avowed benefit, and oe the cou6ll
47.
securitrifi the borrowing company. The loan wu not malt
in the form; on the contrary, it was made on the seee-
rity of • promissory notes of the chairman and of two
ntemben of the Seance committee, they bring also diner-
It is admitted that this mode of borrowing was not amoraws
to law, even though there had gritted a legal power to
row row on the security of the company. It is also admen*.
that, if this principle of loans be acted on, facilities are
afforded to boards of director' to defeat the proisions cf
their acts of incorporation, and to borrow on the seaway of
their notes of hand where they are not authorised by law to
borrow on the security of the company. But whatever
might have been the borrowing powers of the South-Western
Company, it is undeniable that the directors of the North
Wales Railway were guilty of a breach of trust in agreeing
to sack an investment of the capital of their shareholders.
This loan was repaid, and upon this rem-meet the
following transaction ensued :
The loaned 20,0001. was repaid by the South-Watan
Oompeny on the 3rd of April, 1848, when a transaction of*
Still mote Indefensible nature ensued. The South W ettal
Company Irma very closely connected with the Rialtos*
Railway, several of the same 'tenons being directors of both
companies. But between the Richmond and the N*4
Wales Company the connexion was still closer and more int,
mate: Mr. Chadwick. the deputy-chairman of the latter,
was chairman of the Richmond Railway; Mr. Simpson the
deputy-chairman ; Mr. Lowden and Mr. Stletiogton wets