The Express.
London, England, 1867-04-27 00:00:00

REPORT OF THE

TION.

The report of the committee of investigation of
the London and Brighton Railway hes- bismisiemsd. This
committee was constituted chiefly to ascertain the actual
position of the Brighton stockholders in relation to the bar
of the present session, which proposes to make them liable
for all the obligations of the Surrey and Sussex, the Chi.
charter and Midhurst, and the West Sussex Junction
and it appears that the new capital to be raked for these
undertakings is 1,859,6001., including 595,0001. al.
ready subscribed, or agreed to be subscribed, by the
Brighton Company to the Surrey and Sumer and Chichee
ter and Midhurst companies. With respect to the
subscription to the Surrey and Sussex, which amounts
to 500,0001., and the manner in which the Brighton pro.
prietary have been brought into connection with that
speculation, the statements of the committee unfold a series
of proceedings calculated (remarks the Times) to eclipee
the most famous features of the London, Chatham, and
I Dover management. At the half-yearly meeting of the
Brighton Company, on the 29th of July, 1865, the director'
intimated that the Surrey and Sussex line was promoted
" by an independent company with whom they had entered
into a working arrangement," and it was upon this repro.
sentation that power was asked to subscribe towards the
capital. The committee of investigation now report that
they have aaoertained that the Survey and Sussex Company
consists only of Brighton directors and their nominees
(clerks in the office, ht.), "who are entered on the register
without having paid anything for their Mares ;" that the
subscribed capital other than the 500,0001. supplied by the
Brighton Company was "literally nothing;" and that the
Brighton directors are also the directors of the Surrey and
Sussex Company, " with the exception of Sir F. Arthur
and Mr. Coles Child, who are, however, the auditors of
that company." So recently even as the half-yearly
report of the 14th of February last, it was stated that this
and the other two lines " were then managed by indepen.
dent companies, having separate organisations and stalk
and distinct capitals," and it was by the concern thee
constituted that the agreement was concluded with the
Brighton Company under date the 18th of May, 1866, with
the object of its being absorbed by the Brighton with all
its debts and obligations, a point on which the committee
of investigation observe, "It is, perhaps, needless
to add that without parliamentary sanction this
agreement is not binding on the Brighton Company, as the
directors had no legal power to enter into it." More.
over, the agreement, although entered into nearly two
years ago, is represented to have been completely con.
reeled from the Brighton proprietary, who, it is assumed,
remained under the supposition that they were committed
to nothing but the subscription of 500,0001. to the Surrey
and SOMME. With regard to the Chichester and Midhurst
and West Sussex Companies, the committee consider that
the circumstances are so far similar that practically say
_ . .

declaim to which the Brighton shareholders; may
come as to the Surrey and Sussex should govern
that of the other mot The committee leave
these statements for the Brighton proprietors to
judge whether they feel bound to take over the three
lines in question. Finally, they admit that " they quite
believe the directors intended by the arrangements as to
these branch railways to promote the interests of the
Brighton Company," but they point out that the share.
holders were kept in ignorance of their real position, and
that the directors "obtained sanction to arrangements
which only involved limited subscriptions to what were
believed to be independent companies, and en ultimate
adoption of the railways of those companies; whereas it
now appears that, as to the Surrey and flumes, and the
Chichester and Midhuret, there never was any subscrip.
tion or shareholder independent of the Brighton Com•
pany, and that it is now proposed, for the first time, that
the whole of the capitals for those railways should be
supplied by the Brighton Company alone."