The Express.
London, England, 1849-09-05 00:00:00

RAILWAY MEETING.

YORK AND NORTH MIDLAND RAILWAY.
The second report of the committee of investigation to it;
submitted to the shareholders at the meeting to-morrow,
states that the committee execedingly rant they are obliged
to defer for • short time longer the fillet and more important
part of their report—namely, the financial position and pros.
pacts of the company, the accountant having been unable to
complete his investigation in time for the meeting. The
committee find that up to 1845, or thereabouts, there appears
to have existed virtually • body of directors, that Is, each
member had some voice in the administration of the com-
pany's affairs ; but about that time, when the legislature was
giving undue encouragement to all new railway schemes
which affected existing interests, more than common energy
and ability were necessary to watch our sod protect their
property from the continued aggreseimis with which it was
threatened ; then it was that Mr. Hudson made extraordi-
nary exertions in behalf of the company, and as he did so the
other directors relaxed in their duties, until, in the course of
a little time, Mr. Hudson became almost sole and absolute
manager of the company, the rest retaining little beyond the
'bare name of directors. The minute books of the company
have from the first but scanty records of the company's
transactions, sad under Mr. Hudson's sole rule these
records became still more meagre. That it was but too
apparent that Mr. Hudson bad abused the confidence which
was placed in him by wielding the power he obtained to
forward his own interests. Mr. Hudson lost his better
judgment and moral rectitude when left with the entire con-
trol of the line; but the committee cannot dismiss the sub-
ject without imputing great blame to the other directors for
ever allowing their chairman to as. nem so grasping and cor-
rupting an influence in the mungement of the company.
Had any ego of them acted with any degree of indepen-
dence or moral courage, Mr. Hudson must have been checked
in his progress. In the middle of 1845 a change of the
secretary of the company took plass. At the time the pre-
sent secretary was appointed the books of the company were
a maw of oonfusion, and when the books wers.looked into,
what with their satisfied state and the arrears into which
they had fallen, it was considered the better course to open
a new set of books altogether, which ware commenced in
July 1846, from the published balances of the preceding half.
year, leaving an interval of about 18 months during wh.eh the
bankers' paw books were almost the only authenuo evidence
of the transactions; the system of the employ having been
to keep distinct banking accounts for capital and revenue.
The shareholders will easily understand frog, the mention
of this fact the difficulties with which the committee have
had to contend with respect to the books. It was only educe
the 14th of June last that the board passed a resolution
that the cash-book be kept by the company. The eon:mines
expect shortly to receive the accountant's report. The subjects
to which the present report more particularly alludes are, the
asle of North British shares, allotment of surplus Eut and
West Riding and Hull and Selby preference shares ; shares
cancelled by Mr. Hudson, proceeds of debentures not ac-
counted for at the time of issue, real contracts, and London-
bridge accounts. With respect to the North British shares,
it states that at the halt•yearly meeting on the Bth of
February, 1844, it was agreed, on the recommendation of
the directors, to subscribe 2,000 261 shares in the North
British Railway, which was then in course of formation for
slaking a line from Berwick to Edinburgh. Those shares
were acoordingly subscribed for, sad the deposits paid by the
backers. The only record of this transaction in the eom-
pany's books is when the award sums of premium are
plead to the credit of revenue in the half yearly balances,
amounting, in ell, to 35,6354 These sum, were paid by
Mr. Hudson at different times, and no director seems to have
ever inquired whether the sums so
_paid were affect, or
how they were prodoesd. In right of these shares the com-
pany was allotted 400 eoasolidated Dalkeiths, 2,000 half.
shares, 4,000 quarters, and 740 third-shares. The calls on the
whole of these shares were paid by the bankers as they be-
came deo, and placed to the company's debit, but no account
whatever had been kept is the company's books. Oa ex-
amining the account la the books of the bank the committee
found the calls correctly entered to the company's debit, but
they do not find that credit is given for the proceeds of the
sales u they took place, the only credits for sales being
April, 1845, 7,9251., and November, 1845, 2,0171. The re-
eponsibility on this account has now, however, bean entirely
extinguished, as Mr Hudson paid the amount, with in-
terest, amounting to 60,2611, en thee& of March last. The
committee were gives to understand from Mr. Hodson that
he claimed • large sera on this account, as he bad paid mere
to the company than the premium actually realised on the
I shares ; but, after investigating the matter, they find •
sum still due by Mr. Hudson to this company of 2,0161.
With regard to tie Est sad West Riding and Hall and
Selby preference shares, the report strtee that the directors
were authorised, at the mating beldam the 16th ofJ unary,
1846, to apply to parliament foe ;HMV to raise an additional
than capital of 1,260,0001. in 60,000 thane of 251. each, to
be called East and West Riding extensions, of which 37,950
were. to be allotted among the shareholders according to
their respective holdiog, and the rentsiader to be left et the
disposal of the directors ; 37,939 shaes iso allotted were
taken up. leaving 12,061 at the disposal of the directors, of
which 4,991 an now on hand, and 7,070 have been disposed
of as fellows : To six directors, 600 ; to five direeton, as sub-
scribers to the Whitby Helaine Compaq, 800; to other
shareholders in the building onsoasy, 150 •, to silken of the
company, 295 ; to landowners, 850: total 2,695, leaving 4,376
shares to he accounted for by Mr. Hudson. At • board
meeting held at the 6th of October, 1846 it was resolved
that a special meeting *Wald be held on the 26th fat., to
authorise the none of shares for the_purchase of the Hull and
Selby Railway. At the same board meeting it was propoeed
by Mr. Hudson that each director should have an allotment
of 100 East and West Riding shams, which was consented to I
by all present. All the members of the direction accepted
their allotment except Mr. Barstow and Mr. Dodsworth.
There were other allotments to the directors and Mr Hod-
son, which the committee state were not warranted by the
resolution of the shareholders, with the exception of the al-
lotment to the officers of the company, sad of 860 shares to
the landowners. liters roma 4,375 shares to be accounted
for by Mr. Hudson. A sum of 16,0001. has been plead by
him to the itompa-y's credit, which he explains is the pre-
mium received on 2,300 shares ; of the remainder Mr. Hud-
son admits to have appropriated 1,100 to himself. A part of
the remaining 976 shares Mr. Hudson intimates he disposed
of to secure tfe interest of individuals in favour of this com-
pany. In addition to 225 Hall and Selby preference shares,
which have been allotted to Mr. Hudson, there is a further
number of 1,170, of which Mr. Hudson has rendered no so-
nnet. ffee the premium received on the,, shares the com-
mittee esasider himanquestionably liable to the company.
The Nallailael a resolution, " That they cannot sans-
*taffies of any of these shares by the directors
to and they are of opinion that the premiums
received Ilemesa ought to be returned to the company."
Mr. Haile& state% threply, that he madden he has taken
no more them her entitled to in his several capacities of
chairman, laskrasse on the Ilse, and Whitby building
shareholder. isms of the other directors have replied. The
report that affima r si lumber of shares belonging to Mr.,
Hodson, whisk mare seasoned by his order with a view to
cornet the aighear of shares, mare having been issued than
were sallatissi. The market value of these shares when
they were iseamiled was 4.6631.., sad ealy 1,4494 was paid
to Me. Hada= in madidesaffisa d ahem shares. The ociat-
tedtme do net reasaisesai lam on t of Mr. Hudsoa's
claim without the used= of shareholders. They con-
sider, however, that there awes balance due to Mr. Bad-
men of 2,28411., which ought to be placed to his credit is the
inters sottlesseat with him. The antinattee have ascer-
tained that the many received from the Back of England,
on two debenture bonds of this company, one for lu,0001;
dated February 7, 1845 and the other for 80,0001., dated
May 31, 1816, remained for some time in Mr. Hudson's
possession before it cams to this company. The bond of
10,0001. became dais in Anglia, 1848, and was then paid.