The Express.
London, England, 1866-04-28 00:00:00

THE CONTRACT CORPORATION COMPANY
(LIMITED).

The committee of investigation of the Contract
Corporation (Limited), have just issued their report.
This document has been so anxiously looked foe
that we subjoin it in carte/too. It will be notioett
that it reprobates the conduct of the directors, ai.d
charges them with " the most gross and culpable
negligence" : _ .

London, April 26, 1866.
Sir,—Appointed a committee to investigate the affairs
of the corporttum by resolution of meeting of shareholders
on the 27th Marzh, we proceeded, with the aid of a public
accountant, witheut delay toprepare such a balance-sheet
as should show the real position of the mei oration's bat&
Mies and assets at the present time, so far as could be
ascertained: but, while doing so, our attention was
necessarily drawn to the applications pending is
the Court of Chancery before the Master of the
Rolls, by the petitions of two shareholders, foe
the compulsory winding op of the corporation ;
to avert this, your committee, so soon as prepared, con-
vened a meeting of the principal creditor's, which meeting
was adjourned to a subsequent day, at which second meet-
ing a resolution permitting the Contract Corporation to
continue operations and realise its estate and effects under
a letter of licenve from the creditors, with other specified.
conditions, was agreed to by creditors amounting to above
450,000/., and with only two dissentients. Thus prepared,
your committee. in concurrence with the directors, in-
structed counsel to appear on behalf of the corporation at
the hearing in the court fixed for the 21st inst., when the
dissentient creditors—the Discount Corporation and the
Warrant Finance Company —appeared as petitioners for a
winding-up order, which the court granted. All future
control and management, thereto' e, will now pass into the
hands of the official liquidator, who w U shortly be ap-
pointed. An it is most important to the interests of the
shareholders to whom that appointment is given, the i.t-
tention of your committee, so soon as the candidates for
that position are known, will be given to ascertain who has
thebest qualifications for the office, and they will inform the
shareholders ci.! the result, until which they recommend the
shareholders to abstain from giving their individual support
to any candidate who may apply to them. By the terms of
the resolution appointing them a committee, they (suck
committee) were to report to a subsequent meeting of
shareholders to he called for that purpose ; this meeting
would immediately have been called had not the corpora-
tion placed into liquidation, but as nothing more ono.
now be done by the joint action of the execa-
tive and the shareholders, and as the transoc-

tior.s which have led to the lamentable position
in which this corpor ition is placed are so complicated and
diftkult to he traced out, and will be much better elnci-
dat,d and unil.rstood hereafter, your committee propose
to rest satisfied for the present with presenting you with
the following concise report of their labours, with a state.
went of aceounts. showing, as far as they are able, the
position of tie corporation in this respect. The committee
find no reason to complain of the conduct of the affairs of
the corporation, nor was the position of the corporation
! otherwise than satisfactory up to the period of its con-
nexion with Measr,. Watson and Overend. At the close of
the year 1)464. o: the beginning of the year 1813, negotia-
tions were entered into between the corporation and Messrs.
Watson and Overend, which eventually led to the pur-
chase by the corporation of the business of that firm.
Mr. Watson and Mr. Overend became directors of the cor-
poration ; Mr. Overend being appointed managing direc-
tor. The board vas also then, or had been a short tirr.e
previously. joined by Messrs. Bateman, Hixon W. Dert,
and White, the three but being also directors of the
Joint Stock Discount Company. Messrs. Watson and
Overend previously bad extensive monetary transactions
with Mr. Bateman and the Joint Stock Discount Com-
pany, and there is no doubt but that at that period they
were largely indebted to that company. Not long after
this fusion of irtereAs a monetary transaction wag
entered into bitwem the corporation and the Joint Stock
Discount Con.pany, which could have had no other
object, as it appears to your committee, than
to relieve that company of the indebtedness of Messrs.
Watson rind Overen 1, mei of saddling it on the corporation.
The outline of the arrangement was this : that the (en-
tract Corporation should purchase of the Joint Stock Dis-
count Company the securities (consisting of bonds and
shares in railway companies) of Messrs. Watson and Over-
end held by that company, of the nominal value of
211,0007., for a sum of WO,OOO/., the purchase to
be made by hills, to be renewed for a period
of two years. The Joint Stock Discount Company
were further to make an advance to the Contract
Corporation of a sum of 150,0001., also by means of bills,
but of which sum 50.0001. was to be allowed to remain on
deposit with the Joint Stock Discount Company. The
position of this :natter at the present moment is that the
Contract Corporation is liable on bills in the hands of third
parties to the amount of .1.10,0001. The securities above
mentioned have never been in the ion of this com-
pany. and a sum of 13.610/. 175.&1. only appears to have
been made availab:e for the purposes of the corporation ;
in fact the whole transaction calls for the must seri° is
inquiry. With reference to the conduct of your directors
in these transactions. which your committee do not hesitate
to state led to th- ruin of the corporation, your committee
cannot speak in too strong terms of reprobation. While
your committee acquit certain niembera of the board
of complicity. they feel bound to state that there
has been the moat gross and culpable negligence in
the conduct of affairs; indeed, the management appears to
have been alloi,ed to drift into the hands of a few, who
have utterly .I;.re3arde.l the +interests of the corporation.
The value of the assets in the balance-sheet is stated on the
assumption that adequate time is given and care taken in
the realisation.—We are. air, }}our obedient servants,
WILLIAM EDWARDN HIRIST. J. SULLY.
WAHINE B. M. LVSLEY. ALFRED WILSON.
Below we give the balance-sheet accompanying
the foregoing report. It will be seen that the com-
mittee's investigations have resulted in showing a
deficiency of 157,6211. There are 20,000 shares of
1001. each in this concern, with 10/. paid.
BALANCE•SHEET, MARCH 27, 1866.

DR. .
To creditors o nv:•,re I
To bills psyside 2lil.goo 3 •
To creditorsbol.lina security 303,02 7 11
To liabilities on Nils receivable con-
sidered good £2,000 0 0

Lj. I,i;fticr,

£177.293 1 0

To capital paid up . _
1 o detlelencj iirowrbt down 167a21 9 10
Estimated
Cr. Per books. to realist.
Ey debtors
Estimated to realise...
Ey securities in hands of creditors
&Emoted to realise
Ey severities in i`allti
Pollinated to reali.e. . . . 37.100 0 •
Ey bill* receiva'de in h.iii ... . 39,696 8 1
Estimated to reali ie ..... 29./sin 8 it
By cub in ham] .. ... .. 441 7 6 441 7 6
By property in band
Estimated to realise.. ... . . 55.000 0 9
Ey balances due on contracts . .... 13,218 0 0
Estimated to realise .. 13.210 0 •
Ey deposits and ex p‘inites relating to
projected undertakino
Estimated to realise

12 6

Assets ....1713,972 4 42519,671 11 2
By balance, being deficiency 157,611 9 19

L';77 2Ct 1 •

B/ John Watson and Co.,
Balance dee by them
Arrears on gli) calla—Lem unpaid
dividend—L call on chum
By Bateman, Benjamin, claim under
action now pending 47,000 0 I
Irrrepertlve of a claim against the Joint flock Dieccunt Com-
pany In respect of the monetary transaction referred to to the
annexed report for any loss In coaarakes therewith.

WEATHER REPORT.-(THIS DAY.)

SATURDAY, APRIL TA, 8 A.X.

7. abase. • •
D T. W. •Ito W. Z. n
12 7. D. , I S.
Neirn —29.6341 N.W. ,1 1 K mu 0.13 1
Aberdeen .429.54 43 N.K. I 5 I
E. 4 11.&W two 3
Leith .29.5N.R.; 47 N. 2 r 0.03 1
Ardrassan '21.56 51 N.W. 2 3 • L c. 2
Oreeneastle ,25..67 4.4 N N.& 6' 1 W.O.W. re .0.01 3
Valentin. 29.54 55 N.E. . 1 1 R.N.L 'ow 0.07 1
''ape I I
Liverpool ... 42f. 51 s'; WN W. 1• 4 W.O.W. co 0,03 1
Holyhead 29.51 Wr. W. 21 1 I E.B.Z. Ico 2
Penzance._ 9.''+ ; W 1 3 B.E. o 0.04 2
Brest -1,1 W. 3 S.E. oI 4
Lorlent ''r W 2' I B.E. c 0.16 2
Rochefort C! SE. j 2 2 , O.K. ol 2
Plymouth
Weymouth
IY.rtsmouth 2.! !!4 12 3 ! O.K. cr ' 1
London -
Yarmouth 4.. :4.W. 1- B.E Do ' 1
scarborough 19 47 41 j 3 , 1 N.E. br '6.37 3
Komi& 24 „47 N.W. 211 I N.E. Ire ,o.OU 3
Ashler

PROBABLE
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to N.W„ fr0.,11 to CoAar!". Varying. fre.li to
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rate to atron; With
at Unit..
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similar to 51.4 e. Y. str.r.N. Similar.
orthem-B...ntland. Western—lreland. Wales, and adja-
cencies. Soutiter , Cliamo:l and Hoy of
F.abtern—Eastwaru and North Sea.

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[ILIA llinesy.e. —The hidden cause, the un-
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Lion of the 41Natr,....t to the instrulv thus diao.vered hos rescucd
county from a 'e .ntinned torture and premature end.
l'ilca Is all the moor forum muter which they afflict inanldnd,
such as fistulas. swetnres, intltuntnallons, uloeratiscna. interns/.
externol, recent Sr cht,,nic, are thus soh. ly and weedily hmught
to a sti.te of ca,e, ar.J thence c >nducted to s lasting core. Btstts,
Mann nt and ...ills ice 1111.1(TM to r nrondttnn
purifvm,f 4. ~,,, tort hot!. are ..ecutle In nperoth.o. a.. 4
assist each other. ccec helping, u ever I.artitutg naturc's
!edges! LAWS.