The Express.
London, England, 1867-05-17 00:00:00

THE OTTOMAN RAILWAY COMPANY.

We have received a copy of the report of the
committee of investigation of the Ottoman Rail-
way Company (Smyrna to Aidin) to be presented
at the half-yearly meeting on the 21st inst. It
bears the signatures of Messrs. Seymour Teulon,
W. Eykyn, T. G. Fardell, Robert Orr, Charles
Packer, and W. P. Pickering, and comprises forty-
one pages of rather closely printed matter. The
conclusions at which the committee have arrived
are stated as under :

Upon the foregoing evidence the committee come to the
following conclusions:-1. That this line has been essen-
tially a contractor's line. 2. That with the amount of
shares subscribed for bona. fide the board were not
authorised in bringing out the company. 3. That the
form of debenture (1861) is not in accordance with the
terms of the concession, and that the directors acted most
improperly in sanctioning such a form after the correspou-
deuce which took place with the Ottoman government in
1860. 4. That there is no fund from which to reimburse
the principal of the zo,ooor. debenture. (Ist issue), except
the 304,0001. of reserved debertnrea (2nd issue), and there.
fore the guarantee cannot be appropriated for the redemp-
tion of these debentures in tie manner suggested by the
directors. 5. That the manner in which a large proportion
of the capital has been issued is most reckless and repre.
hensible, sad that the discount of 15 per cent. on the tint
debentures was paid in an underhand way, and was, in the
committee's opinion, ultra virra 6. That the manner
in which the contract has been varied from time to time
has been to the interest of the contractor, and to the in-
jury of the urdertaking, while the directors have been in-
demnified by the contractor from personal Pabilities
um4er all the concessions. 7. Asauming that the
directors intended to promote the interests of the
emryany, the committee cannot forget that the
shareholdem were kept in ignorance of their real
position, and it is difficult to understand bow the di-
rectors, as men of business, could have sanctioned arrange-
ments which have brought such disastrous results.

The committee's suggestions for the future are
as follow :
1. That the expenses of home management be at once
reduced. 2. That a strict investigation be made into all
clainis against the company, and that no further payments
be made to the contractor until this is done. 3. That a
full statement of all 'meets and liabilities be prepared.
4. That the financial projects of the directors be suspended.
5. That a competent person be sent out to Turkey to re-
port upon the best means for developing the traffic,
to protect the interests of the company, and to nego-
tiate with the government in order to provide funds
fur putting the undertaking in • good working state.
G. That proper representations be made the government
of H.I.M. the Sultan on behalf of the Turkish and English
shareholders, who, by no fault of their own, have been
brought into their present unfortunate position. 7. That
in the opinion of the committee it is the duty of the com-
pany and its managers to co-operate with the Imperial
Ottoman Government for the maintenance and conduct of
this undertaking, and to carry out a policy of conciliation
with all allied interests. 8. That the management of the
company's affairs at Smyrna be put in the hands of com-
petent persons. 9. That it is the duty of the manage-
ment to provide for the legal and equitable interests
of the shareholders and bondholders. 10. That with
a view to secure the sympathy and 00-operation of
the Imperial Government, and the early payment
of instalments of the guarantee, and the efficiency of all
financial and political arrangements, on which the future
of the company so much depends, as well as to give in-
formation to the Ottoman government, a permanent
representative be appointed for Turkey at such remunera-
tion as will enable him to devote his whole time to the
interests of the company. 11. That it is necessary to
provide funds for the completion of the undertaking, the
development of the traffic, and for meeting liabilities in
a legitimate manner, and so as to cause the hest sacrifioe
to the shareholders and debenture hablers. 12. That in
order to carry out the above suggestions, a board com-
manding the confidence of the government and all the
parties interested in the undertaking be appointed.

At Lyons, on the sth of June next, Mr. William
L. Leaf, of London, will lay the Bret dons of the U`-
h& episcopal church about to be erected.