The Express.
London, England, 1859-02-19 00:00:00

THE OTTOMAN RAILWAY COMPANY AND

THE 87001 1102114N01L

The directors of the Ottoman (Smyrna and Aidin)
Railway Company have forwanied to us the subjoined
explanation :

Sir,—With reference to the resolatliss of the Strut Ex-
change Committee, which appeared in this day's
.ktml
beg to state that, when app lic Mica was mode for •
of the glens of this compasy fa the official list ofttte..—firork
fischange, the directors fully believed that they had strictly
complied with the rules and regulation. of that esta-
blishment.
The number of shares taken altogether, in England and
Turkey, wee upwards of 60,000, of which "the deposit"
had actually been paid to the credit of the company upon up-
warded 43,000, when the application was made to the
Stock EscUrtg• to have the &hares solaced upon the list.
This exceeds the proportion of two-thirds required as • quell-
donjon ; the total number of the company's shares being
60000.
The directors were under the convieVon that the abuse of
the contractor and of the conpeaeloapeizes were peciperly is-
.

eluded In the number melded; that they weire,l3 ivory
Elens tide eh an much ma any others When by the
labile, end to be so regarded, the regl ad-
die end liabilidea ad d Wag elks and eltud.
From this view, however, the Committee of the Block
Exchange dissent, although their printed regubeicas make
no exosption to any shares. If, therefore, the directors have
erred in thin respect, it km been wholly uniaMalkeel, and
they will lose no time In leaking the necessary arrange-
ments for complying with the Stock Exchange regulations,
and obtaining the replacement of the company upon the
official list.

The directors are prepared to give the shareholders of the
company, at the general westing which will be bald neat
month, the fullest tatorwatlm, sad to explain to their Nati..
faction every step which has bean table to carry out the
objects of the company.
Itscrionla.n Srirrnueox, Chairman.
1, Ilt. Mkhaers Hams, Cornhlll, Feb. 17.
Considering the high respectability of the mem-
bers of the board, it is satisfactory to find that the
affair loses the most serious features at first attach-
ing to it. It will be remarked that the impression
that a fictitious papment was made into the com-
pany's bankers in order to enable them to comply
with the regulations of the Stock Exchange proves
to be unfounded. The point whereon the Committee
of the Stock Exchange and the directors are at
issue bag reference to the contractors' and comer
electives' shares. The committee require, according
to the terms of their fixed " Rules," that not less
than two•thirds of the shares be "subscribed for
and the deposit paid thereon;" and in these skips-
lated two-thirds special allotments of shares to con-
tractors, concessionaires, &c., are understood
(though not expressly stated) not to be in-
cluded. They also require that special arrange-
ments of this clue be distinctly specified, if
not in the original prom/ens, at least in the
communications emanating firm any company
applying for a settlement 'These regulations toad
to the protection both of the public and of the mem-
bers of the Stock Exchange; for, were no sash
precautions adopted—(it is scarcely ossessery to ob-
serve that these remarks have a app Leaks,
and do not refer to the ease now under
notios)—nothicg would more easy than for un-
scrupulous persons cognisant of the fact of a large
number of shares being looked up to " rig" the
market at pleasure. Against the Directors of the
Ottoman Railway Company no insinuation of this
kind is breathed t but the charge made against them
is, that the number of shares taken by the general
public haring been relatively verysssall,theallotmente
of the contractor and concemionaires were included

in the number certified as "subscribed far." The
contractor, it appears, was to be paid in shares, and
the committee do not amide/ WS shares to have
been " subscribed far," although he paid the deposit
upon them, in du wares. The directors declare
that they were not aware of these regulations ;
whilst the orearnittes argue that they ought to have
been aware of these. llse exoneration of the board
from the micas charge of wilful misrepresentation
will be regarded with general satisfaction. It is at
the: same time highly desirable that the Stock Ex-
change " Rules " Amid be at ones taken into con-
sideration, and worded with sufficisat @learner to
preclude the possibility of any future misconception.