The Express.
London, England, 1849-04-09 00:00:00

We thick it neceesary to add, that the sum raised
by calls made and paid in advance was 1,427,8331. 10a.,
of which the sum 749,5241.145. 7d. has been ap-
plied to the putposes irtendei by the proprietors in
their resolution of the 26th tnf October, 1846. This
sum is about one-fifth of the whole amount replied
to pay off the Groat North of England proprietors,
and it has been invested in Great North of England
Railway Shares as follows, 1
y viz.—
In the ear 846 £351,822 2 0
1847
~ 1848
1849

£743,64218 7
There remain, therefore, four-fifths of the entire
sum still to be paid.
We think a more beneficial result would have ac-
crued to the company bad the resolution of the pro-
prietors before referred to been carried into effect to a
much larger extent at an earlier period.
The Great North of England Purchase Account
has been very imperfectly kept. The transactions to
which it relates commenced in the month of October,
1846 ; and yet it is admitted that no books were
opened till the month of December or January last,
when a journal and ledger appear to have been be-
gun and ported up, the entries in the journal of the
purchases of shares being without dates, and being so
made as to baffle examination without the aid of other
mat- ries.
The general accounts of the York, Newcastle, and
Berwick Railway Company, we hope are dealt with
in a very different way.
' The auditors seem to have miespprehended their
duty in auditing those accounts ; they limited their
examination to • comparison of the bank book, in
which are entered the directors' cheques, with the
entries in fle journal and ledger ; they have neither
required the production of vouchers nor original con-
tracts—a mode of examination which it is obvious
must be utterly worthless. The remissness of the
directors in the discharge of their duty with respect
to this account is very remarkable. From the 27th
October, 1818, till the 13th of February last, mead-
'nate their own statement, they remained in entire ig-
norance of the state of theGreatl'corthof England Pur-
chase Account, and made no inquiries about the matter.
A still greater degree of blame attaches to the two
directors who signed the cheque for 81,1001. on the
27th (Mabee, 1848, the day after the creation of the
Asa fir the purchase of the e shares, without asking
for or rseeiving any further explanation, than that it
was for the purchase of Great North of England
Rsilway shares. Shareholders have a right to expect
liof gentlemen who accept the office of directors that
they should be cognisant of, and take part in, all im-
portant proceedings of the company. It is not right
that they should confer absolute power, and impose
and:sided responsibility, on one of their body, how-
ever able and efficient he may be.
The secretary ought not only to be competent to
the discharge of his duties, but should be strictly con-
fined to the business of the company.
A course of proceeding directly the reverse of that
which we have found to have existed with respect to
the Great north of England purchase account ought
to be pursued both by auditors and directors, in the
affairs of the York, Newcastle, and Berwick Railway
Company, in order to give to that railway, posees•ing
as it does so many essential elements of prosperity
yet undeveloped, its true value, and to insure the con-
fidence of the proprietors in its management.
(Signed) ROBERT PRANCE.
HORATIO LOVE.
Joule CLAYTON.
JOHN SHIELD.
ROBERT DENISON.

York, March 29, 1849.

WZDNISDAY, Magma 7, 1849.
It was ordered by the committee that the secretary, Mr.
Close, be summoned to attend them.
Mr. Prances Espial's the fleet item in the books of the
purchase of shares amounting to 131.8671. 9e. 3d.
Mr. Close : The shares were originally bought by Mr.
Hudson for himself, to the hest of my knowledge, between
the poring of the Great North of England act end the
special meeting of this company, called to confirm the agree-
ment made with the Great North of England Company on
26th Oct, 1846. Mr. Flews was requestul at a board meeting
of this company by Mr. Hudson to furnish a valuation of the
value of the Great Nor:h of England shares to this company.
Mr. Flews sent me a document, exhibited to the committee,
giving the value of the stares. Mr. Hudson asked me after-
wards what valuation Mr. Flews had put upon the shares. I
told him for the 1001. shares, 2411. 6s. • for the 401. sheets,
61. paid, 631. ss. per share ; for the 301. shares, 151. paid,
671. 15s. per share ; for the 15/. shares, 11. 10s. paid,
241. 3s. 64. per share. Mr. Hudson then told me to mark
the shares named in the fret lot in the journal, below Mr.
Piewe's estimate, vie., of
a. d. t 8. J.
in toot. alma amounting to 36,240 0 0 at 240 0 0 per share.
342 401. „ „ 21,631 10 oat U 5 0 „
91 3W. „ ~ 3,107 0 oat 37 0 0 „
2574 151. „ „ 67,339 00 at 23 10 0 „
I added the commission and the stamps of my own accord,
but Mr. Hudson was not aware of it, the money was paid to
Mr. Hudson's account at the York Union Bank, the date of
'lemma 27th October, 1846; ant payment, 51,1001. on the
27tb October ; *mad payment, 27th Nov., 60,7671. 91. 3d.,
which ;dosed the account. Mr. Hudson came to me some
time in the mouth of January last, and shred to me that, as
rime. were so materially changed, in making up the accounts
of the Great North of England purchase, I mast deduct any
profit be had received on that transaction. He afterwar&
said, before I had the accounts made up, that he bad recon-
sidered the matter, and that the account was not to be
altered, in consequence of his having advanced out of his
private account a sum of upwards of 16.0001. on Weal of
this mammy, in the purchase of " West Durham shs.-es,"
for which he had no sanction of the proprietors, and on the
19th February last, being the day before the meeting, Mr.
Hudson ease to me, and said he was sure there war some-
thing wrong in the account of the 151. shares. That I was
to debit his mount with 11. (one pound) per share uncalled
on the 151. shares on the 2,874 shares which he had sold to
the company, and that after the meeting he would go into
**sonnet with me ; I wish to add, that Mr. Hudson de-
livered to the company two Great North of England 1001
shares, which were not paid for until the 9th October, 1847,
being the time when I found out the mistake, as they
should bare been included in the purchase above referred to.
Mr. Clayton : You stated that Mr. Mews valued the 16/.
shares 11. 10s. paid at 241. 31. 6d. per share. It appears to
me from the document put in Coat the valuation is 211. 6s. 3d.
How do you account foe the discrepancy
Mr. Clore : Mr. Plows worked out in details the 1001.
shares, the 401 ahem, and the 301. shares, but net the 161.
shares ; there are two statements with reference to the 151.
shares on the side on which the 1.51. stares are put. I took
from the first line 21/., and 31. 3e. 6d. from the last line,
thinking that the two together represented the value of the
151. shares.
_ . _

Cisiton .• 1 a.sume you would not be ignorant of the
market values of them shores on the Stock Exchange on the
27th of October, 1846. Be so good as to state them, and the
differecce between that market price and the sum paid to
Mr. Hudson for these shame.
Mr. Close : The prim of the 1001. shares in the London
market on the 27th October, 1846, was 2371, Mr. Hudson in
enema 21.15 e. per share, or 4151.55. The price of the 401.
shares was 611, Hr. Eames price be off 631, or 161. b. per
shire in or 3981. 10s. ; the 301. shares 6,51. per share,
Mr. Hudson's price being 2/. in excess, or 182/. ; the 151.
shares, the market prim was 211. on that day, whilst Mr.
Hudson received 231. Hts , being 21. 10s. per stare in excels ;
making in the total 7,1861.
Mr. Love Didthe directors at any meeting of the board
authorise the purchase of them shares of Mr. Hudson
Mr. Close: There is no minute to that effect.

Kr. Love: Hare they named a resolution authorising the
purchase of any shales, and if so, when ?
Mr. Clops : On referring to the minute book I Sad no
resolution to that effect.

Love.; -ifsNIS-tie shares mounting in total vette to
81,1001. paid kw es the 27th October, 1846, delivered on
that day
Mr. Clem (After being allowed an opportunity of re-
ferring to the books of the company.) I believe they were,
but cannot be pentivo.
Mr. Love : Mr. Close, please deliver to this committee the
certificates of regietralion foe the shares represented by the
sum of 81,1001.
' Mr. Close: I proclaim the whole of the certificates of
shares sold by Mr. Hudson, but I am arable to idontity the
individual shires represented by 81,1001. paid for on the
27th October, 1846.
Mr. Plows examined,

Mr. Clayton : you a director of both tun-
paaies, Great North of England, and York, Newcastle, and
Berwick, in Oct., 1848 ?
Mr. Plows : I was,
Mr. Prance: Do you admit that you were requested by
the York and Newcastle board to determine what was a fair
price at which they should purchase certain Great North of
Begland shares of Mr. Hudson, of which he had become pos.
esmed ? . . . .

Mr. Plews ; Mr. Oxley and myself, at the board meeting
of 46th October, 1846, were requested to make a calculation
es to the intrinsic value to the company of the different
dams of Great North of England shares, but I was not
aware the ealculatioes were required to buy Mr. Hudson's
shares ; I wu not aware he possessed any excepting two
1001. shares which stood in the Company's books in his
'num.
Mt. Love : As one of the Directan of the Great North of
England, and York and Newcastle Companies, was there
ens a made to you to purchase of Mr. Hudson
his shams

167P4ws Never.
Mr. Love : Did you over know that the Conpasy had pa:-
chased &arm of Kr. Hudson ?
Mr. Plows : I sower did.
Mr. Claytes : If Mr. Close free your valuation, which has
boss pat in, ham nmetuned tkat you valued 151. shares, 1L 10a.
paid, at 241.85. 6d. per share, hos ha co not meads a nalstake
Mr. Plows : Hikes decidedly me.
Mr. Love : Weald you have recontrasuded the company
to have punkated of say party, in October, 1846, the Great