The Express.
London, England, 1851-01-22 00:00:00

WINDING UP JOINT STOCK COMPANIES.

MADRID AND VALENCIA RAILWAY.
Yesterday the examination of the charge against
the directors of this compiny was rammed at 11 o clock,
before his Honour the Master in Chancery Blunt.
The examination in chief of Mt. Solomon Jacob Waley,
of 22, D:vonsbire-plates, was resumed. He deposed that to
the best of his belief Mears. Chadwick, Monteflore,
and:one or two other of the directon, were now abroad,
and, conaequently, out of the jurisdiction of the court.
Lient.-Col. Stopford, he believed, had settled in Australia.
lied written letters to Mr. Chadwick and to the Hon.
C. P. Villiers, stating his opinion that the objects of
the company bad become impracticable. Frequent appli-
cations were made to the directors after the lest ;costal
meeting, in 1848, for the production of the ordinary
accounts, but fruitlessly ; and when the negotiations
with Messrs Wire and aild went off as to the pro-
reed peyr.tot of the. per dare to a portion of the
shereholden, Mr. Coed wick assured witness that the so-
t counts should be rendered to the shareholders with the least
possible delay, the impatience of the shareholders being
then at its height; but Mr. Chadwick's promise to this
effect, though published in all the parer., was never ful-
filled. Was extremely disswisfiael with the ciseumstance of
the accounts being kept back, ea witness, being a member
of the Stock Excharge, was coutinually assailed by applica-
tions on that score. Wolin', on going to the offices of the
company in 1849, stated that unle,s be could get information
as to the sompeny's eccuunts and affairs, he should be driven
to take legal proceedings. The greatest horility was a' own
►im oa these oceasioas by one of the then newly elected
e;namittee of mensgemeut, Mr. Lewis Pocock, axd at that
period all the important ace)unts of the a,mpany were
under the control of the finance ammit ,ee. The

trustees and the finance committee were not independent
bodies, but were under the control or influence et the Board
of directors. He had previously said that they were a sepa-
rate body, but the trUbtell bad the entire care of the vested
properties of the company, and that bye deed of conveyance
they held the giant which was made to the concessionaire
M. Volney, by the Quern of Spell, and it wu understood
that all tin vouchers and property of the company were
deposited in a box at the banken' with three keys, which
were only ,usable by the tNree trustees When witness's
elicit6r, at the end ot 1849, applied to Messrs. M aterman
for Information upon these matter., they refused to comply
with the request.
_ . . .

Count Eyre, of No. 7, liinde-strut, Manchester. equate, a
director of the London and South Western Railway, and
menthe, of the provisional committee otitis Madrid acid VI-
Uncle Beltway, wee the next witness examined. Deposed
that he hod had 600 shares allotted to him In the Madrid
and Valencia Railway, and that, like other foolish people at
the time, he bad paid the deposit of 21 pershisre upon them.
(Laiuhter.) Had beard that the total amount of money re
camel for deposit was 106,0301., but could not tell what had
become of a halfpenny of the money so subscribed, either
by himself or the other foolish people. (Laughter.) Could
sot give the smallest information upon the matter, though
he whined he could give the whole of it. Did lot know of
any muses, of the Madrid end Valencia Railway having been
lint to the South Western Railway, an could not from his
own recollection ppeak to any loan to that company until he
had h. and it stated in evidence the other day. Had not the
slightest idea that there had been three loans, and he thought
that that assertion proved a pretty tolerable freedom
on his part. In his mind he bad heard that there had
lumens loan, but he had never heard of three. Had studi-
ously avoided attending meetings of the board of the
Madrid and Valencia Railway, and had lopki.d upon
himself as a director. They had sent summonses to
nim to attend, but had diconticued them, and he had
not been a t.trector for three or four years put. lie
had -
tioned any act relating to the cowpony ; and, se regarded the
question se to whether he [Many books or pipers connected
with the company in hie r.mesaion, he had to say that he
had only one document, which he hoped would eventually
appear in the official man,ger's account, and which was a
charge he had paid for legal expenses. (Laughter.)
Dr. Nicholas M'Cann, of No. 60, Parliament-street, wu
the next witness eurnincd.—Admitted that be was adv.r•
timed u a member of the provisional committee, but bad
never read the prospectuses thrott:h, and took no notice of
the concern wha'cver. Had 250 shares allotted to him, and
paid the deposit open them of 21. each into Cockburn',, but
cold them soon afterwards for 14s. each. (Laughter.)
He could not say whether he paid the money on
the letter of allotment, or whether he received a
banker's receipt, though lie pusibly might have dole both.
Had 110 :lotion whatever of wrist had become of the money of
all these madmen. (Laughter.) Never saw a shilling of the
FioLey subscribed in respect of the Madrid and \redone a

Railway, excepting his own, which he paid and never got
back again. (Laughter.) Put an adv. raiment in all the
morning, evening, Sunday, and railway papers of the period,
at a cost out rat his own poi kat of upwards of 121 , withdraw-
ing his name, not only from the Madrid and Valencia Rail-
way, but from every other railway it, the kingdom. Knew
119 mere of what had become of the funds of the company
than did his Honour or the counsel engaged in the cause.
(Laughter.) Never sanctioned the expenditure of a
„penny
of the company's cash, and never knew that any of it that
had once been lodged in the bankers' had been drawn out
again.
Mr. James John Kinloch, of 21, Gloucesterroad, Hyde
park, WAS next called—Admitted tnat he war one of the provi-
vatunal committo, and had allotted to him 2SO shares, on
which he paid the deposit. Attended meetings of the com-
mittee of management to 1i47. and was a member of [h..?
finance commit-ee. Gave his signature to the order on
blasterman's, authorising the account to be opened in the
name of the three trustees, and drew cheques tram time to
time. Knew that loti3Oiol. had been paid, in as deposit, but
did not know what had come of it beyond the 30,0001. paid
Into the Bank of England, in small sums for current

ezponces. Could not say whether he drew any of the cheques
for the purchase of shares in the market. Concluded u tar as
his recollection want that he approved of the 50,0001. loan
to the South Western Railway, but did not know of the
other loans. Could not state whether any shares of the com.
pity had been purchased with the company's fun !s.

Ceptain Chartetie, of Patk Village411 , Regent's-put,
was the next witness called. Admitted that he was one of
the member of the committee of management. Paid the
deposit on 250 shares of 24 per share. Attended meetings of the
body regularly until April 1846. On the 17th of that month
went on a mission to Spain, end was 'bunt three months,
returning in the middle of July. Attended renlarly until
the fo:lowing September, after which h- was prevented from
&Reedit-1g is cook queneeof instructions from General Flores
to provide a squadron to proceed to S iuth America. Did
not recollect ever haying regularly attended again, but at the
euly period of his attendance had a recollection on one
OCCIIii WI of shares having been purchased out of the funds of
the company, when, at one of their meetings, Mr. D. W.
Harvey intended to offer a strong opposition to the company,
and when the shares represented by that gentleman werc
purchased from him at something above the market voles.
This, however, was not the transaction alluded to by Mr.
Creel, though he dared say he assented to the former one.
As regarded the lons to the South Western Railway, Mr.
Chadwick reported to the board that he had an opportunity
of getting a larger interest for the company's funds than they
wen getting at the time by a loss at 4 per cent. to the South
Western Railway, and be had a vivid recol!eo ion of the loan of
60,0001. being unanimously adopted, hut he did not remember
any subliquent loans of 30,0001. or 35,0001., or of any subse.
Tient transactions. Knew nothing of the funds of the com-
pany having been placed in another parson's name to avoid
an attachment. Had learned when at Madrid that between
sin and seven thousand shares bad been takea up. Knew
that 106,0301. had been received for deposits, but did not
know where any of ft was except that a great deal of it had
been spent in engineering.

The lion. Charles Pelham. Villien, M.P., of 27, Regent-
street, was next examined. Rad 260 shares allotted to him,
and paid 6001. into Masterman's in respect of the deposit.
Attended a few meetings of the directors in 1815, and a few
in 1846. Knew that a large MU of money wee received by
way of deposit, but did r.ot know the amount ; and, is far
as he was aware, no report was made es to how math was
paid for deposits. Roma from Mr. Chadwick on one occa-
sion that he was attempting to reduce the liabilities of the
company, which was the ground for deferring the final
settlement of affairs, and that one mode of doing this was
by buying up the shares; bat he was not on any finance
committee,, and had nothing to do with the finances of the
company. Was not sure that he bad not more than one
conversation with Mr. Chadwick on the subject of the pur-
chase of shares in 1819. Wu no party to the loam to the
South Western Railway, and was not present upon any
mouton when they. were discussed. When he first heard o
them loans it was in April, 1849, when some of them wore
returned. Did not know a Mr. Lewis Pocock being
made a director until July or August, 1849, and never
attended board meetings at that lime. Was led
to make Inquiry respecting the funds of the com-
pany very much in consequence of apprehensions that
were expressed to him by Mr. Waley, who said he
thought there cught to have been some settlement of the
affairs of the company, as there had beet so much delay,
and as he had not received any satisfactory information.
Witness said he had no reason to question the integrity of
the finance committee or the gentlemen having the control
of the funds, but that If there was anything he could do he
should be happy to attend to it. Witness then suggested
that he should see Mr. Chadwick on the subject, snd he ac-
cordingly called on Mr. Chadwick, who was perfectly opal
upon the subject, and told him, without showing say amount.,
how the funds had been expended. Mr. Chadwick said that
30,0001. had been deposited for caution money, that 30,0001.
or 31,0001. had been employed in buying up shares; and
that2B,oool. wee then standing in the names of the finance
committee at Masterman's; and that whatever else remained
to maks up the money deposited had been incurred in the legi-
timate expenses of the company. In April, 1847, the difficulty
seemed to be that it wasnot optional with the English directors
to dissolve the company, and eta meeting of the shareholders
it was stated that the opinion of counsel upon a case sub-
mitted to them was, that the company was now subject to
the Spaniah law, and that it could not be dealt with
mopeople f
certaini company..WaSSpaillanconl:ll.ElacinsugteliabaNiceoir obtaineddioi fvoi rr:t hhetahtpe ur p o set:oe I,
is, andyassent
ato of
that thatthe
time was the forfeiture of the caution money of 30,0004.
deposited with the Spanish government. It was these re-
presentations made to the shareholder. that had induced
them, by a large majority at a poll, to proceed with the
company. Witness had never attended any board meetings
after that, and knew nothing of what had beams of the
funds of the company.
After some evidence from Mr. Powell, the eseredar7s ha the
offset that the trustees of the re heads were super-
sided by the appeintmeat of the iaatla essuaitte. ; that
they were never duly appointed emir issi of settlement,
and eakj jor the purposes of the
XL Selwyn, mug kr es =lill'arr agar. hen into
nista UMW east Nisbet the Amine vas wheMwtfauy
slag.

His Honcur then said ha would adjourn the further con-
sideration of the cue until Monday nest, upon which or come
subsequent day he would call upon the counsel for the
directors to open their case in reply.
TSe proceedings were then 'di...vaned at five o'clock.