The Express.
London, England, 1866-01-20 00:00:00

GREAT EASTERN RAILWAY.

The following report has been issued by the
Committee of Investigation into the affairs of this company :
Committee Room, Bishopegate Statios, Jan. 19.
It was not the intention of the Committee of Invest4a-
tion to hays presented another report previous to the half-
yearly meeting in February next. But in oonsequeoce of
what occurred at the last meeting, and the action sober,
quietly taken by the directors thereon, it has been deemed
expedient to place the shareholders in possession of such
further information as will enable them to determine their
coarse of proceeding at the special geseral meeting which
has been convened for the 25th inst. The resolution passed
at the special general meeting, held on the 13th December,
1565, was as follows :—" That seeing the ruinous
state into which the undertaking had been allowed
to drift by the present directors, they be now
requested to resign. On the 21st December, 1865,
the board of directors communicated to the committee
a resolution they bad come to, in the following terms :
" With reference to the Bth resolution passed at the extra-
ordinary general meeting of the proprietors, held on the
13th December, it was resolved that the directors whose
names are subscribed hereto are prepared to vacate their
offices in aocordanoe with the resolution above referred to,
and to remain in office so long only as it may be necessary
for the keeping alive the requisite number of directors.
That in adopting this course toe directors are influenced by
the necessity of attention being given to the financial posi-
tion of the company, and upon the understanding that the
committee will take upon themselves the duty of attending
tofthe company's finances, in which the directors will be
prepared to afford any cooperation that the committee
may desire.—lames Goodson, Geo. P. Bidder, Horatio
Love, J. A. T. Smyth, James Packs, Samuel Anderson."
Under these ciroutostanoes the committee, recognising the
importance of that portion in the directors' resolution,
wherein they are called upon to " take upon themselves the
duty of attending to the company's finances," considered it
their first ditty to ascertain as far as possible the exact
position and requirements of the company, at the date
referred to, and having done which, requested the board to
convene • special meeting to fill up five of the vacancies in
the direction, it being that nine directors should
remain so as to constitute a 1 board. It will be observed
that six only of the eight directors elected by the share-
holders, to whom the resolution of the 13th ultimo appeared
to apply, have signified their intention to retire, Captain
Jervis and Mr. G. Josselyn having declined doing so. The
resolution of the shareholders in its terms applied to all the
directors, but it is for these gentlemen to explain the
grounds an which they refuse to act upon it, and your com-
mittee, however,state that in • communication received from
the board of the Great Eastern Railway, it is alleged that
questions connected with the Eastern Union affairs
will place those gentlemen in direct antagonism to the
interests of the company ; and this statement is confirmed
by the company's solicitors, the committee receiving the
following,letter thereon :—" 57, Coleman-street, London,
E.C., sth January, Isd6.—Sir,—We return herewith the
letter you banded to us from Captain Jervis, on the subject
of the contents of • letter addressed to you by the chairman
of the Great Eastern Railway Company, in which it is
stated that questions connected with the Eastern Union
affairs will place Captain Jervis and Mr. Josselyn in direct
antagonism to the interests of the Great Eastern Railway
Company. We have no difficulty in stating that such
questions must necessarily arise, and we think it is only
necessary to refer to a letter addressed by Mr. John H.
Josselyn, as solicitor to the liquidation committee, to Mr.
Owen, of the 23rd ult., to show that such questions bays
already arisen. We do not consider it convenient, at the
present moment, to go into any details as to the questions
referred to, as an investigation is now in progress with a
view to their elucidation ; but, on reference to the con-
cluding portion of Mr. John H. Jorselyn's letter, it will be
seen that it is contemplated to make the Great Eastern
Railway Company press to snit to which the liquidation
committee will also be parties ; and, also, that that com-
mittee decline complying with the demand of the Great
Eastern Railway Company to have • conveyance of the
surplus property of the late Eastern Unice Company, which,
in our opinion, was most improperly conveyed away the day
before the Amalgamation Act received the royal sssent.—
We are, sir, yours very obediently, Maynard, Son, and
Co.—C. H. Turner, Esq." Five members, constituting a
portion of this hoard, who are elected from Northern and
Eastern and Rest Anglian boards, consider that they do
not come within the scope of the resolution. Referring to
the paragraph of the former report relating to the appoint-
ments of • general manager, engineer, and locomotive
superintendent, the committee have had no reason to alter
the opinion then imperials', but, on the contrary, consider
that as early as possible after the reconstruction of the
board, their views should be carried out; that is that a gene-
ral nienager,an official hitherto nonexistent on your railway,
should be appointed, and that the engineering and locomo-
tive departments should for the future be separated. Ups
the proposed arrangement between this company and that
of toe Great Northern Railway Company, the committee
consider that an arrangement, if founded upon sound com-
mercial principles, would be highly desirable for both parties,
hut they would suggest that for the present, considering the
large oulay necessary, and the uncertain character of the
advantages supposed to be secured to this company, any
proceedings for giving effect to it shout.' be surpauded.
Upon the financial condition of the company the committoe
confirm all they stated in their preliminary report, with
the addition that further investigation compels them to
state (although they do not consider that it would be to the
interest of the shareboldeis to go into further details on the
present occasion) that the financial affairs of the company
are in an unsatisfactory condition, for which the respon-
sibility rests upon past administrations, and, as •
consequence, great difficulties will be thrown upon
any future direction in placing them upon •
sound and wholesome basis. The majority of the board
having resigned, the proprietors will at once recognise the
altered and onerous position of the committee, who, after
having acquired • thorough knowledge of the sffairs of the
company, with • view to its future prosperity, are tusani-
piously of opinion that it will not conduce to the interests
of the shareholders at the present time, or assist in deve-
loping the company's resources for the future, to publish
the evidence, which might seriously embarrass important
pending negotiations. The committee, however, have no
hesitation instating their opinion that, although the holders
of the ordinary stock must for a time, they fear, be content
to remain without dividend, they believe that all the exist-
ing preference stocks and mortgage debts of the company
are effectually secured, and this view is confirmed by their
accountants, Messrs. Coleman, Turquand, Youngs, and Co.
The committee feel it a pleasing pert of their office to
report that in the course of their inquiry they have re-
ceived every courtesy and assistance from the various officers
of the company, but, without wishing to make any invidi-
ous distinction, would consider that they did not fulfil their
duty were they to omit to state that during this protracted
inquiry they have received from Mr. Owen, the secretary,
most valuable assistance, without which the labours of the
committee would have been much increased, and • vast
amount of information (very useful for future application)
been withheld. The committee do not consider it within
their province to give any opinion upon the controversy
between Captain Jervis and his colleagues, further than
that if such • condition of circumstances had not arisen the
shareholders, in all probability, would have remained in a
state of ignorance as to the condition of their affairs.
Upon the future prospects of the company the com-
mittee are of opinion that although its present con-
dition is as unsatisfactory as any mercantile under-
taking could well be, they believe that with an
entire revision of the management ; encouragement
of friendly relationship with neighbouring companies ; •
suspension of new engagements as far as practicable ; a
rigid economy in all departments ; and taking into consi-
deration the elasticity of the trade of the country, that
there is yet • brighter future for this hitherto unfortunate
company. In conclusion, the committee hope that in now
resigning the tips& reposed in them as • imintaittee of inves-
t tigation, the labours they have expended upon year affairs
will not prove educates, either for present or future par-
poses, and they believe that the knowledge they have
obtained in the course of their inquiry may be applied most
i usefully in the interests of the company, if you should
think it right to pies, them in the administrative position
of directors ; at the same time the committee are perfectly
sensible that no efforts they may make and no knowledge
I they possess can be of any real utility notes' the confidence
of the proprietary is cordially given to them.-0, H.
Turner, chairman; George Smith, Arthur Belleateee,
George Beavis.—J. Hadfield, secretary.

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