The Sun.
London, England, 1855-11-30 00:00:00

NORFOLK AND EASTERN COUNTIES COAL COMPANY.

_, ..... _
Your committee, when their attention was first directed
to this subject, considered it was au undertaking promoted
by some one or more of the three associated railways, either
for their joint or separate benefit, from the circumstance of
advertisements having appeared continuously in the news-
papers, headed "Eastern Counties Railway;" stating prices
for various descriptions of coal, and signed "By order, J. B.
Owen, Secretary." It will be seen in the evidence that Mr.
Owen was authorised to lend his name, as your committee

consider most improperly, as it conveyed an incorrect repre-
sentation of the names of the parties who were the vendors
of the coal. Your committee, in the inquiry into this sub-
ject, were informed that Sir S. M. Peto, in the first instance,
brought the parties (Messrs. E. and A. Prior) whoiepresent
this firm to Lowestoft as coal merchants, and that iu the
year 1853 there was an arrangement or agreement with
this company to have coals conveyed over the Eastern
Counties and the Norfolk Railways, at a rate averaging not
more than 7-16ths of a penny per ton. This sum was alleged
to be charged in consideration of their bringing a large
quantity of coal over the line, and that no other firm was
to be charged so low a rate. Coupled with this low rate
were other advantages. One was, that this company should
always provide 200 waggons, to be in constant use by the
coal company, and that a considerable amount of accommo-
dation should be provided for coal depots, sidings, &c., at a
very large outlay ; that this company should find the money
necessary for the payment of the coal dues ; and while this
company paid ready money for the coal purchased of them
it gave them a credit of from t wo to three months on tho
freight due from them.
This railway company has spent out of its capital a very
large sums for these purposes. Tho railwaystation-masters
and other servants at several places on the line have hail
a considerable portion of their time occupied by that busi-
ness ; and it has led to many well-founded and strong com-
plaints. Your committee was much surprised to find that
your locomotive superintendent(Mr.Gooch), with Messrs.
E. and A.Prior, were the principal partners of the Norfolk
and Eastern Counties Coal Company. This fact, it has been
proved, was known soon afterwards to the chairman (Mr.
Waddington), and your committee consider it extremely
improper to have allowed any servant of the company to
trade with that company—more particularly to certify as
to the quality of the coal purchased of his owu firm, as was
the case with the locomotive superintendent. To make such
an agreement was extremeiy prejudicial to this company's
interests, and destructive to the business of many respect-
able merchants on the lice. The rates charged were much
less than ought to have been obtained, and, in our opinion,
a considerable loss has been sustained by this company
thereby. When the agreement was first proposed and
acted upon, this company was not associated with the
Eastern Union Company : in 1854 they were. The Norfolk
and Eastern Counties Coal Company, in that year, pro-
posed to send, and did send, a considerable quantity of coal
to various stations on that line. The goods manager of this
company gave directions for what he considered fair rates
to be charged. They were charged, and debited to the ac-
count of the Norfolk and Eastern Counties Coal Company.
Some time thereafter, it appears, Mr. Gooch interfered as
regards the rates so charged. The matter was referred by
Mr. Moseley to the chairman (Mr. Waddington), who or-
dered Mr. Moseley to reduce those rates. Mr. Moseley
thereupon wrote to Mr. Collis, the station master of this
company, at Peterborough; on the 14th November, 1854,
desiring him to alter the rates, as from the 13th November,
185l—(See Collis's lstter, in Appendix.) The rates were
accordingly altered; but a few days afterwards Mr.
Moseley wrote again, to say these rates so altered were to
take effect retrospectively, as from the July previously ;
and a rebate of 1,9001. was made in the accounts sent in up
to the 30th September, 1854—(See Collis, Q. 2,342) ; and
there was likewise a rebate of 1,0391. 3s. 9d. from 30th
September to 13th November.
From the evidence of Mr. Prior and Mr. Gooch, it ap-
pears that Mr. Gooch continued to be one of the partners
of
this coal company until towards the close of the last
half-year, when a dissolution took place.
The large purchases of coal made of this company cannot
be viewed otherwise than as preferences given to them of a
most improper description (see Mr. WaYs dd account), and
to confer advantages to them detrimental to the interests
of this company. It was agreed that they should have 200
waggons. At present they have 500, which represent a ca-
pital of not less than 40,000 i. They have the use of the coal
depots as very
many stations, to the exclusion of other par-
ties, at a very small charge per ton (vide evidence). Their
own waggons are repaired at this company's workshops, and
'
although an account has been rendered, nothing has yet
been paid
(see evidence). Your committee is
of opi immediately be taken to talon
that steps should strictl y 1. imitthe
operation of the draft agreement to the terms therein spe-
cified, and that the trade should be thrown open to mei.-
chants on the line, and that no exclusive advantages should
be given to any.
LOCOMOTIVE SUPERINTENDENT.
The
The agreement entered into . . in May,
1850, might have resulted favourab:y,lprovided it had been
carried out in its integrity; and if it. had not so resulted
which it mi ht have'
the agreement contained a clause by
been
been terminated. But this agreement has allowed._
_to
run oa, and has been made the pretext for paying Mr.
per ceutages
t
Gooch, during Use last five years, sums as
amounting to little less than 20,0001., when 19 salary was
fixed at 6001. per annum. Added to which he was permitted
to be a partner in a coal company trading to the port of
Lowestoft, supplying the Eastern Counties Company with
coals; and was also engaged in other business on his own
account : he is the owner of waggons let to this coal com-
pany, which waggons are repaired at the workshops of th(, .
Eastern Counties Railway.
Your committee recommend that the claim of Mr. Gooch
for the last half-year ending the 30th June, 1855, of
3,193/. 55., be not paid until the justice of this and all Mr.
Gcoch's former claims have been ascertained by a reference
to arbitration.
Your committee further recommend that Mr. Gcoch's
engagement be referred to the law officers of the company,
with a view to its being immediately terminated, thereby
removing the reproach c wh.l h such an unwarrantable de-
parture from all sound
principles of management has
brought upon the company. The committee desire to refer 1
you particularly to the evidenceat7p2ages 2,3, 4,7, 8,9, 11,
18, 19, 25, 26, 27, 28, 29, 32, and
HARWICH AND OTHER OBLIGATIONS.
Your committee are unfavourably impressed with the
obscurity of the amounts furnished to the sharehclders
and the obligations under which this company is brought.'
We find 8,000/. lent to the corporation of Harwich, not
named in the report, and we find, on inquiry on the spot,
that the company is committed to purchases involving
an

outlay of above 30,000/. The committee is utterly at a
loss to conceive the motive for such proposed outlay, it
being entirely irrelevant to the business of a railway com-
pany to be so involved. They find 30,0001. advanced to
Mr. Wythes, the contractor, long due and owing-20,0001.'
is owing for the Southend Pier not paid—the published
accounts, therefore, convey no just idea of the obligations
of the company.