The Express.
London, England, 1866-10-11 00:00:00

THE LONDON, CHATHAM, AND DOVER RAILWAY.

The Telegraph erlarges on the disclosures relative to
the above company. The first remarkable statement by
the committee is, that Meurs. Peto, Betts, and Crampton,
who were the contractors to the railway, were also its
financiers, and the directors were so entirely in the hands
of the colossal firm, who not only male the line but found
the cash for their own payment, that they were obliged,
it would seem, to leave the question of charges very much
to the pleasure of Messrs. Peto and Co. Some of the
contracts were paid for in share capital and deben-
tures, and it is with refcrenoe to these that the
gravest charges are brought by the committee. Messrs.
Peto, says the Telegraph, appear to have created shares or
stock expressly to be used as security for the purpose of
raising money in the form of loans. Large sums were also
received from the public in the form of debentures.
By act of parliament only one-third of the sub.
scribed capital can thus be borrowed. For the
further protection of lenders it is provided that
half that capital must previously have been paid up,
and that these facts must be certified before a

justice of the peace. But, say the committee, " The
safeguards provided by the legislature for the protec-
tion of the debenture creditors have been systematically
evaded," and " as regards several issues of debentures,
instead of their amounting to only one-third of the sums
received and receivable on share capital, they considerably
exceed the whole amount of actual money received ant re-
ceivable for the share capital in respect of which such de-
bentures were issued." One or two instances •re given.
On what is called the Eastern Section the committee state
that a "feigned payment" of 4°..9,700/. was made on account
' of the capital nominally subscribed for in order that a
colourable pretext might be obtained to borrow on deben-
tures ; and that a sum of 356,300/. was so raised, and is sti'l
outstanding. They finish with this astounding announce-
ment :—" The result is, that the only capital really ex-
pended on the eastern section is that raised on debentures."
Another startling assertion is made as to an issue of
1,600,000/. of the ordinary share capitaL That amount is
said to have been entirely subscribed by ten individuals,
among whom were Sir Samuel Peto and his partners ; but
no money was paid to the company by any of those gentle.
men. Nevertheless, the shares were entered on the re-

gisters as stock fully paid up, "although no such stock
existed, and no ouch payment had been made." On the
feigned creation of capital a sum of 500,000 i. was borrowed
in the form of debentures.

the Court.

BALMORAL, Ocr. 9.

The Queen went out in the morning accompa-
nied by Princess Beatrice and attended by the Mar-
chioness of Ely, and drove in the afternoon accompanied
by Princess Christian.
The Duke and Duchess D'Aumaie dined with the Queen
and Royal family.

A committee of the Lords of her Majesty's Most Honour-
able Privy Council sat yesterday in the Council-chamber,
Whitehall, on matters relating to the cattle plague. The
lords present were the Lord President, the Right Hon.
Spencer H. Walpole, and the Right Hon. H. Corry. Mr.
Frederick Goulburn (Deputy Chairman of the Board of
Customs), Mr. Helps and Colonel Harness attended the
committee.

His Excellency the Austrian Ambassador and
the Austrian Embassy have removed from Chandos House
to 18, Belgrave-svare.