The Express.
London, England, 1849-05-18 00:00:00

fee the pupae ',presented ? (Hear.) But say that it was
made for that purpose, where was the necessity for emot-
ing the investment when made from one sleek to mother ?
With regard to sushi quer bills, canenbi, and loans, I stated
to you oa the Bth of March that transactions exceeding
3,000,0007. had tam place ; that • conaid. rable sum ap-
peared unaccounted (or. that the books showing sale venom-
lions had net been made up for • considerable period ;
and that the proper vouchers had not been Tarnished to
the accountant to enable him to verify such account. The
chairman, on the other hand, would have had yen to under-
stand that Exchequer Bills and Consols were limited to
600,0001., and he was utterly Aleut as to loans. It appears
from the report that investments were mad. in Camels and
Exchequer Bills to the extant of 743.0971. 165., and that a
sort or trafficking in loans upon the security of them
was carried on for two years to the extent of 2,321,9001.
in the whole, molting in an enormous lose to the
leampsay. My statement that the books relating to these
Matters had not been made up, is glossed over by the
remark at page 7, that " the expense of interest, commis-
sleet and continuation does sot readily appear." But I
essilder the whole embusses of my allegations on these
=Gritted by the report. And again I ask for your
an the committee's unsure upon me for mooting
a Miiimg question of three millions of motley. The
efigatediene. finally, having expressed their disapproval of
tie inesetments in shares—laving strongly condemned the
elite resolution of May, 1848—having refused to
alls:orathe directors from the charge of neglect of duty—
having pronounced that no strict and formal system of man-
agement prevailed—having admitted that the entries relative
to tie 3,000,0001. did not readily appear on the boots—hav-
ing shown the Oakum's concurrence in deceptive dividends
—having expressed their opinion of the necessity for reform
in administering the affairs of the company, and condemned
the system of individual action—end having, finally, be-
stowed on the chairman separately the attributes of error in
judgment and undue assumption of individual responsibility
—your committee give me the intimation that before such
distinguished merit it is my duty to retire. (Hear, hear.)
Gentlemen, the committee forget that there is • minority
among the proprietoes as well as a majority. (Oh, oh.)
That minority I may be said to represent ,• and my duty to
them requires that I should remain where I am, though you
may well conceive that farm own perusal comfort retire-
ment would be more agreeable. (Biases and cheers.)
Mr. CUNLIFFE then said I propose following the ex-
ample of the chairman at the last meeting, and of mediae
my statement to you, In order that I may occupy as little of
your time, and express myself with as much dearness as pos.
*ibis. Such of you as have seen the report, or bad time to
glance at its contents, will perceive that what I told you at
the last meeting hu been fully verified, and that there ex-
isted • stringent necessity for inquiry. I regret that so little
time should have been allowed for the consideration of the
report, even by parties resident in London, while those at a
distance necessarily remain ignorant of its entente. Had an
impartial shareholders' committee been appointed, you would
not have had this complaint to make, because they would
have secured for you bath reasonable argue to the company's I
books, and time to read and digest the it report, tithe Easters
Counties, York, Newcastle, and Berwick, and Brighton com-
mittees, and indeed every other committee that I am ao-
(painted with, took care to do. The chairman told yen.
in the address which he published on the 16th February lest,
" That it would not bo for the general interests of the pee•
prietsrs to place power in the bands of any committee who
might seek to associate themselves with independent pro-
prietoes." But he himself addressed circulars to all the
proprietors oa the 21st February last, soliciting their
support, and asking them to entrust him with their proxies,
and inviting them to revoke the proxies they had given to
other parties. Such a course is at variance with the present
°pinkies of railway men, and recent disclosures show the
danger of listeaing to the counsels of directors. The chair-
man carried the appointment of his own committee, and the
result 'has been precisely what I anticipated. (Hissing and
mach iaterruption.) It was impossible for any committee,
whoever appointed them, to shut their eve to the unsound
and dangerous state of the company's accounts. I will not
say by whom they were cooked. (Uproar.) My endeavours
to trace the authors proved unavailing, through the course
which the committee pursued. But enough has transpired
to show that the company's affairs were managed by two or
three of its members, and that all the rest either
wilfully shut their eyes or were kept in the dark as
to what was going on. It is impossible for the board to
emir from the dilemma, either that they knew or ought to
have known of the alteration of the half-yearly accounts
from time to time after they left the hands of the proper
officers, and that the dividends paid were fictitious. I have
read the' Eastern Counties report carefully, and noted the
facts in both cases, end they appear to me very similar.
(Uproar, and cries of " No," and " Yes.") It seems impos-
sible to lay down one rule for thst company and a different
rule for this. (Interruption.) With me this is no personal
contest, and I know no distinction between wrong doers, be
they who they may. I have sought to ebta'n all the insight
I could into the company's affairs from every party and by
all honourable means. I desire justice to be done, and I
am satisfied that whatever may be the influence of the
board in this room today, eventually the interests of the
proprietors at large must be protected. I am compelled to
pronounce all the directors blameable, but especially those
who a sussed the conduct of the affairs of the company and
the control of its finances. The report discloses the follow-
ing state of cirsunstances. At page 41 you find a sum-
mary of—
Total omissions from the debit of the mime
£107.932
account
Items due, hut not brought to account 21,008
Stores, short, debated to traffic
Traffic balances not realisable 5,887
Amount carried to credit of revenue belonging to
capital

£150,043

Interest (p. 41) on No. 3 and 4 Shares, properly
chargeable to revenue
Interest on mortgage debt, short, charged to half-
yearly traffic accounts
Interest on Gravesend and Rochester bonds, pro-
perly charg. able to revenue
Depreciation of permanent way for three years

1306,373

Mr. QUILTHR, the accountant, said the 34,2111. " in- '
tenet on mortgage debt" was included in the 107,9321.
(" Hear, hear." and laughter )
Mr. CUNLIFFH—The short time that I have had to
look into the report of the eqmenitteo must plead my excuse
for the mistake. Now, I ask (continued Mr. Cunliffe) any
man of business if each a state of things ought to have
been allowed to exist, or could have existed, it the board
had exhibited ordinary attention to their busineu, or
had not purposely altered the half-yearly accounts? The
report seeks to throw a great part of the blame on the
late deputy-cheirman. I doubt not that he was an active
participator in these inalpnetiore ; but if he were not the
tool, there can be no doubt that he was the associate of
other equally, if not more, guilty than himself. Hes the
chairman, who seeks by his letter to extenuate thee. trans-
actions, ventured to deny his participation in them ? lie
has not, and I think I shall be able to satisfy you from his
owe letters that be oleo was an active agent. It appears
that in November last, when the disputes began at the board
(the origin of which is still a mystery to me), a motion was
made that the chairman and deputy chairman shoed pre-
duos to that committee their private oorrespondence,—such
letters were used before that committee, and several of them
were afterwards brought by Mr. Pritchard before the notice
of the investigation committee. Mr. Pritchard having re-
signed the direction, and being unable to attend this meet-
ing in consequence of the recent death of his wife, and of the
present situation of his private affairs, has authorised the use
of those letters for any proper purpose connected with the
affairs of the company. I therefore submit the following
extracts from the chairman's letters to the deputy chairman,
t for your consideration, that you may be enabled to judge for
; yourselves whether or not the chairman was a participator in
transactions which I deem contrary to law, to the company's
acts, and to public policy. He then read the following ex-

tracts :
" Jan. 7, 1848.—Thinge are very much better, u you will
see, and the market will now require careful watching."
" March 22, 1848. —The state of markets require no cm.
meat. I have a note from Boat, who says markets are de-
cidedly better to day. Keep me advised. lam persuaded a
certain gentleman peaches. However, that does not signify
much now, in the present situation of madam and her affairs.
I gave Scott an order to buy 200 No.l's at 10 , and sell 200
paid up at 231; bat he could net do both, and that was the
condition. He has done 150, and says the Bears have oversold
themselves in shares."
" March 23, 1848.—This is my only letter northward, so
do your best."
" Much 24, 1848.—Things are better in shares to-day.
I have done nothing, but think you have done wisely. Keep
people bandaged ; they will want it. Scott says the call
has been discounted, and has no adverse effect on the
market. The steam-boat meeting has had a favourable
effect on people's minds, whether it does good to their
pockets OT not."
" March 25,1848.—1 t is not right to tall me in a private
letter about share operations without sending regular r-
ebus and eale-notes that I can show and land to
people ; so pray, whatever has been done or is to be done,
mend • formal letter of advice, and purchase and sale-cotes.'
" March 28, 1848.—1 f you find a vent for the No. 4 shares
before the account day, without loss, so much the better."
" June 3, 1848.-1 have your note. Of course, you advise
Ifeetiert: what you do, the lees the better, if you can make
k risawer."
"Jew 30, 1848.-1 have your two notes of yesterday ; one
Cl them enchning purchase note, for 135 No. I, 185 No. 2,
and 150 No. 3 shares; and have advised the Liverpool Com-
munist Bank to honour your drafts for 6.6.591.6 e. The total
number of ' Old' shares there were for sale was 879—viz.,
664 J. 8., and 225 D. A. F. I showed the purchase notes
to Mr. Browne, and he desired me to say that he hopes you
have net purchased any more shares. as the amount already
exceeds the possible proceeds of the Old shares."
July 7, 1848.—There is another place now requiring as
Bauch looking after as London Bridge.
August 8,1848.—1 t seems to me the No. l's are not at-
leaded to. The Eastern Counties committee furnished their
I proprietors with a statement of the dividends paid, and
which ought to have been declared. Your committee have
given you no such information. I have endeavoured to
supply it, and I believe the following statement will be found
pretty nearly correct :
Half-year ending. Dividend paid. Dividend earned.
July 31, 1847
Jan. 31, 1848
July 31, 1848
under 85.
Jan. 31, 1849
exclusive of depreciation of rolling stock. (Hear.) I wish
to all attention to the startling fact of the increase of capital
still required. In the financial statement of the affairs of
the company isrued in Januarylast, last, we learnt for the first
time that an additional capital of 350,0001. would still bo
required to complete the works. The chairman, in his speech

at the meeting on the Bth of March last, pronounced author-
tithed, that the financial statement had received the most
mature cinsideration, and would sustain the severest scru-
tioy." A..reedy is this contradicted, and the committee now
report that the directors will requite an additional outlay of
140000!. to he expended, not contemplated is January . I
wish to ask how this additional capital is to be mimed.lf
by the creation of preference shares, per future dividends
must be seriously affected. Be determined, therefore, to
close your capital account, and to stop all farther expeedi-
rue. I feel that I have now discharged my duty to the
proprietors at much sacrifise both of time and trouble; and
I leave to others the completion of these inquiries which have
led already to such important and starling results. (Cheers
and biases.)
The CHAlRMAN—Gentlemen, having been put on my
trial before you, end having appeared been the committee
lerlesot you, cot I, appointed—(" No, no," and cheers)—the
emsaittee was appointed by a majority of nine-tenths of
those Front in this room—(" Hear, hear." and cheers) ;
land having received an honourable sequittal—(co, no,)—in
%Madman= (pointing to the report), I did not expect to
have a single word more to say on the subject of evidence,
which, Hit were evidence at all, ought to have been adduced
before the judges—(A voice, " They would not hear it "l—
ie whose presence I would have met it, and perhaps re-
ffoolllod it if that had been necessary. With regard to what I
asseiderthe principal point is that statement to which I rave
Ito reply, the relief which revenue received from conetruction,
I I stand here to assert most solemnly that I justify it all.
(Cries of " shame," " hear, hear," and cheers.)
, Who can judge of the position in which this
' company was plamd at the time when that relief
was given if he did not with me bear the burden and
heat of the day? (Hear, hear.) I challenge the world to
contradict this assertion—that, with a single eye to the inte-
rest of the company, I have, since the 4th of October, 1844,
when I became a director, devoted every talent and energy
that I possess to the promotion of its sums,. I defy the
world to say that in any transaction whatever, either in
stock-jobbiag, shartebroking, or in any other way, I have
prijudieed the interests of any man in the company by my
personal conduct. (Cheers.) No man can say to me, as I
can say to Mr. Cunliffe, " I cleared your lianas of your
shares in 1844." No man can say that I have from time to
time used my position in this company for temporary. pur-
poses. (Cheers.) I have continuously held my original
shares, Nos. 1,2, 3, and 4, without interruption. (Loud
cheers.) And I tell you, gentlemen, that neither Mr.
Cuntdle's alarm at the information contained in this
pamphlet, nor the present depressed state of the
market, no, nor the revolution In France, 110 r any
other circumstance, has abated my confidence in the
ultimate success of the South Eastern Company. (Cheers.)
Gentlemen, in 1846, when relief was required for your reve-
nue, what wets the circumstances of tae cue ? 'You were
running trains for purposes not connected with the revenue
of the half year, at fares adopted under pressure ; and you
were supporting those trains by an extravagant amount of
locomotive power ; and you had many times the number o
pilot engines stationed up and down your line that you have
today. Under these circumstances, should I have been war-
ranted in debiting your revenue account with the roes
amount of charges incurred for parliamentary purposes?
(Hear, hear.) What would Mr. Cunliffe have said if the
23,0001. paid to Mr. Coolie's for fees had been struck off the
half-year's revenue? (Hear, hear.) What would he have
said if the 38,0001. paid to Sir base Lyon Goldsmid to with-
draw hie opposition to the bill in parliament had been set
down against revenue ? Would any man with a head on his
shoulders have pursued such a course? (Cheers.) Admit-
Rag that in many directions during the last four
.years 1 have
undertaken great individual reepousibility, was it not under-
taken under circumstances of great emergency? (Hear,
hear.) In 1846 there wore twelve or thirteen bills be-
fore parliament. We were not fighting for the
revenue of a single half.year. Our eyes and minds were
directed to the permanent interests of the company ; we had
to contead not merely against rival companies, but against
the folly of legislation. But, gentlemen, supported by your
confidence, which I feel Vast I have deserved, I successfully
contended against those difficulties. If it bet our a ish to enter
into details with regard to the amounts which have already
gone into the gnat mass of the construction account,
I am prepared to support every one of them. I
am prepared to show you what extra locomotives
have been brought upon the company, by the tieltvery of the
locomotive stock in a dilapidated condition from the locomo-
tive committee. I am prepared to show you that the extra
expense incurred for locomotive power in 184 G. and 1847,
was on account of our parliamentary position ; I can show
the same thing with regard to the carriage stock, and I
assure you that every amountby which the revenue has been
relieved can be supported by the strictest explanation.
(Hear, hear.) Gentlemen, we have not long to look
forward to another hall-yearly meeting, and ample
time will be given to mature their consideration of
the state of our affairs, and to make up their minds as to
what is beet to be done. If there be any point on which
you wish for further explanation I sin at your disposal and
ready to answer any question. (Loud cheers.)
Mr. J. WILSON could not admit that the report of the
committee ought not in any way to be impugn( d. If he
I found anything wrong on the part of the committee, he had
a right to call it in question. The chairman had given no
answer to the fair and candid statement of Mr. Cuidiffe, or
to the manly andthold one of Mr. Thompson. It had been
stated at the last meeting by Mr. Wire, that al the charges
had ended in the bringing forth of a mouse. No one could
say that any longer, when it appeared that Z 09,0001. had
been divided beyond the fair profit. The hon: proprietor
was then proceeding to comment on the mode in which the
banking accounts were kept by the directors, sad was sup.
posing the cue of 100,0001. havieg been sent by the chain-
man to the bank at Liverpool, and the affect which that
might have upon the company, when he was irate rrupted by
The CHAIRMAN who called him to order, and added
that if he proceeded in that strain it might be hie duty to
accuse him of libel.
Mr.WILSON said, under these circumstances, he would
say no more upon that subject. He then chi reed the di-
rectors with having, on one occuien, lent 16,000/. at call to a
banker, ate time when they were paying 6 per cent. as in-
terest or money over due fur iron rails.
Mr. BAKER also maintained that there was a great simi-
larity between the case of this company and that of the
Eastern Counties. In the outset, a most respectable and
talented gentleman was dismissed from the office of chairman
because the profits were considered too small ; and ever
lattice that time the directors had been mere cyphers in the
hands of the chairman.
Mr. HOLLAND thought that, so far from there being
anythiag unsatisfactory in the report, it afforded matter for
congratulation. (Cheers.) He denied the analogy sought
to be sate listed between the case of this company and the
Eastern Counties. The report of the committee settled that
question by settling the question of character and integrity.
They stood, in fact, in a position as different as possible from
that of the Eastern Counties. He then defended the
appointment of Messrs. Quilter and Ball, as accountants,
sad maintained that no better assistance could have been
obtained. Ilz thought that they were all highly indebted to
It,. Cuoliffe ant his party for having originated an inquiry
which had issued so satisfactory.
The CHAIRMAN then put the motion, and it was carried
with four dissentients.
The CHAIRMAN next proposed that the thanks of the
sompsny be presented to the committee of investigation for
the time, labour, and anxiety which they had bestowed upon
the inquiry. He was desirous that the committee should
I continue to assist the direction, either as directors or as
',odium. With regard to the vice•chairman, he would ob-
serve that for fifty years he had been known as a merchant
of high standing In the City of London. (Hear, hear.)
Mr. RENSHAW (deputy chairman) seconded the motion,
and entered his protest against the observations of Mr.
Baker. He said he came there as an independent man, and
not, as had been alleged, as the puppet of the chairmen ; and
be hoped that his conduct would entitle him to the good
opinion of the shareholders. (Cheers.).
Mr. LEVY thought that the appointment of the vice-
chairman should have been left to the shareholders, and ex-
pressed his intention of taking the sense of the meeting upon
Me subject.
Mr.RENSHAW stated that his appointment had been
approved of at the last meeting of the proprietors.
Mr. LEVY—I never heard your name before in my life.
(A
ThCHAIRMAN observed that Mr. Renshaw was elected
a director at the last meeting.
The motion for a vote of thanks to the commttee was the
put and carried unanimously.
Mr. MOZLEY, as chairman of the committee, defended I
from the observations which had been made in the course of
the meeting, and repelled the statement that he was the
nominee of the chairman. He had laboured hard from twelve
o'clock in the day till five, six, or seven o'clock at night, and
had become so exhausted in the service of the company that
in the evening he was fit for nothing, not even to enjoy
Jenny Lind. (Laughter.)
At•er some further observations,
The CHAIRMAN submitted to the meeting whether they
would appoint auditors then or leave the question cpen until
the next meeting.
The meeting having intimated a desire to adopt the latter
course, then adjourned.
Other

- -
MB. HUME'S MOTION FOR REFORM IN PARLIA-
MENT.—This motion stands first on the motion paper of the
House of Commons for the sth of June. The fallowing
definition of " household suffrage," given in June last by
Mr. Hume in the House of Commons, will explain the exact
amount of extension of the (machine which he contemplates :
" That every vale person of full age, and not subject to any
mental or legal disability, who shall have occupied a house,
or part of a house, for twelve mouths, and shall have been
duly rated to the poor of that palish for that time, shall be
registered as an elector, and be entitled to vote for a candi-
date for parliament, for the period of twelve months subse-
quent to the twelve months of registration : and every lodger
shall have the same right, if he choose to claim to be sepa-
rately reentered and rated to the pcia for such part of the
house as be riseupies; and, after such rating and residence
!or twelve months, such lodger shall be registered as an
elector, equally with the tenant of the house, and shall have
the right of suffrage for twelve months subsequent to such
rating and registration."
"FIRST-CLASS" TinevEs.—ln disembarking on
Sunday from the Albion steam-vessel, just arrived from
Boulogne, and at the moment of the examination of the
baggage, an individual, taking advantage cf the pressure
and aided by a companion, put his hand into the, pocket of •
rotleman from Paris, but wes fortunately discovered by the
gentleman when just in the act of 'tieing profrse, contain-
ing 700 or 800 francs in gold, which had 'y been ob-
served by the *kitoast when the gentleman paid his pas-
sage-mossy. Having failed in his object the fellow retired,
and probably changed some part of his dress in order to aid
kis escape, for at the request of a spectator a policeman had
been esen Corp and the vessel was searched in ysin ; be could
Inot again be recognised. These men were Biet.cla.a puns-
gess, and appeared to be no strangers to England, although
they conversed with each other in Italian.

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