The Express.
London, England, 1866-10-13 00:00:00

LONDON, CHATHAM, AND DOVER RAILWAY.

After our report left yesterday, the report of the
committee eras unanimously adopteu.
hlr. Ottaaatectus, as a debenture holder, asked what ar-
rangement was being made for paying off the debts. That
should be their fret duty. (No, no.) It appeared that
upwards of ten millions had been expended, and that there
were 4,595,000 debentures. He wanted to ask the share-
holders whether it was worth their while to let the deben-
ture holders take the lino. (They can't.) If the deben-
ture holders were disposed to wait he should be glad to

know how long.
Mr. Hononnesow—With regard) to the works now
going on, that quartion lied come before the committee, and
it was found that the Brighton Company was bound to
contribute 100,0001. to the Viotoria improve:mate. That
earn was found to besufficient for the works now in progress.
Mr. HODGSON complained that for the debentures of
which the company got only 75 per cent. he had paid the
full amount, which would neither go into the shareholders'
pockets nor assist in the making of the line. The act of
parliament expressly declared the borrowing power should
only accrue when the shareholders bad contributed 50 per
cent., but was that the fact, when that solemn affirma-
tion was made which led to the over issue of the deben-
tures. It was made by the proper officers of the company,
Mr. Johnson, the secretary, and Mr. Morgan, the ac-
countant, but he asked on what documents it was made ?
(Hear, hear.) The debenture holders were there simply to
protect their interests, and had no intention of doing any-
thing else at present than standing by, and he wished the
shareholders to understand that they did not surrender
anything, or make any change in their position, in order
that the shareholders might not be under a wrong impres-
sion. He felt that the debenture holders were the first
mortgagees, and that after them came the shareholder, in
their reepeotive order of priority. He proceeded, amidst
cries of " question," and " thne," to ask what power the
company had to mortgage surplus lands, or of what force
such mortgages were!
A SHAREHOLDER—We do not dispute anything that you
say on that subject.
Mr. Bernice pointed out some discrepancy in the
accounts of the committee of investigation and the direc-
tors, and suggested that they should be gone into in a con-
sultation, and that afterwards some definite proposition
should be agreed on to be made to the shareholders for the
future management of the company.
Mr. HOWLRTH was of opinion that the root of the evil in
this and other railway companies lay in the fact that the
directors were not good business men. He supported the
proposition for the introduction of good business men into
the board.
Mr. PRICE, a member of the debenture-holders' commit-
tee, who spoke amidst interruption, said that Sir M. Pete
had satisfactorily explained some points, but not all. The
plain fact was that the bondholders paid 100/., but there
was no information as to what had become of the 25/.
He thought that neither Sir hi. PeW nor any one else could
vindicate such proceedings. Was it not monstrous that
parliament and the Board of Trade should have laid down
certain rules for the protection of the public, and that
those very rules should be made the means of taking
money from their pockets? (Hear, hear.) They had had
their accounts audited half-yearly by a professional ac-
countant, Mr. Coleman. (Shame.) Talk of conscience,
what conscience was there in such audits? He found
that 300,0001. had been received from the Great Northern
Railway, and no money. from Sir M. Pato, and yet he was
charged with 800,0001. in shares. Such doings were un-
precedented in the commercial world. He wished to know
what course the directors were going to take, especially
with reference to the B and C shares. It was really
shameful that noblemen of high character should
have been made the puppets of designing men and of cer-
tain spirits behind the scenes, whom as yet they had not
been able to get at. It was like the Drury-lane pantomime
—the directors stood in the front of the scene, but the
stage business was all done by men behind. The fact was
that this was a contractors' line, and all the money had
been raised by slams, snares, and delusions.
A SHAREHOLDER asked who prepared the false half-yearly
reports ?
AnotherSamteiumnsa—Johnson. (Tremendous hissing.)
Lord HARRIS said, with respect to the half-yearly reports,
they had been brought to the directors all ready. It was
true the accounts might have been falsified, but the direc-
tors could not examine, into all the details ; they relied on
their officers, their secretary, engineer, and auditors.
(Hear, hear.)
Mr. SURGEY moved that the directors be requested to
add the following names to their band, Messrs. Hodg-
kinson M.P., Hillyard, Thomas A. lienkey, Heritage.
Hothain, and G. C. Taylor.
Mr. BAXTER seconded the motion.
Mr. Scorr.suggested that they should in the first in-
stance accept the resignations of the present board. He
knew (facts connected with certain spirits who had fled
with which, but for the law of libel, he would astonish
the meeting. A scene of great confusion followed, sere
sal persons speaking at once, and a rival debate being car-
ried on by the debenture holders in the galleries. At length,
Mr. BAXTER explained that it was not competent to that
meeting; to elect directors. They could only recommend
their names to the present board.
Mr. JACKSON, M.P., considered that it would be
suicidal to get rid of the old directors at the present time,
when it was contemplated to go to parliament for certain
purposes which wore absolately untmmuary.
The CHAIRMAN then put the question as to the accept-
ance of the names recommended by the committee to be
added to the board, and with one exception, that of Mr.
Heritage, they were agreed to.
On the name of Mr. Heritage being put,
A SHAREHOLDER in the body of the meeting objected
on the ground that he was,lconnected isiththe Credit Fon-
cier, and after a short discussion had taken place, and
such an expression of feeling had been manifested as in-
duced that gentleman to withdraw hie name, the hon.
proprietor proposed that Lord Harris should be chosen in
his place—a suggestion which met the unanimous approval
of the meeting.
The motion having been carried by acclamation,
Lord Hassle, who appeared deeply affected, said that
this had been to him a most miserable and humiliating
day, and that he had passed many miserable days and
nights in consequence of his position in this company. At
the same time he felt that if he could be of service to the
company it was his duty to remain, especially con-
sidering the very flattering manner in which hie
name had been received. He had simply. sup-
ported the London, Chatham, and Dover line in the
first instance because it went through his county,
and with respect to the transactions that had taken place,
he did not consider that the board were responsible for the
false statements, if they were false, which had been made
to them, or for the withholding of information. It was
impossible for the directors, either individually or collec-
tively, to go into all the accounts and transactions of a
vast undertaking like this, and they were therefore obliged
to rely upon their officers for the correctness of the state-
ments wade to them, and on which the reports were
issued. (Cheers.)
Lord SeNties said he was the oldest proprietor of the
line ; but he had never been brought up to railway matters.
(Cheers and laughter.) He understood very little of the
details, particularly finance. He confessed he ought to
have attended oftener as chairman. He was getting to that
time of life when it was impossible to attend actively to
business, and should therefore be willing to retire when-
ever it was most convenient to the shareholders. (Cheers.)
The proceedings terminated with a vote of thanks to the
committee of investigation.

Secretary of State for the Home Department for his libera-
tion as a erimieel patient. Grace he said had nude his
tray back on the night before, after being at this court,
and the applicant &mired him that he should be dis-
charged in a few days.