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 an 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) whorepresent
this firm to Lowestoft as coal merchants, and that in 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 bo 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 waggonc, 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 two to three months on the
freight duo from them.
This railway company has spent out of its capital a very
large sums for these purposes. The railwaystation-masters
and other servants at several places on the line have had
a considerable portion of their time occupied by that busi-
ness; and it has led to many well-founded and stron,g com-
plaints. Your committee was much surprised to find that
your locomotive superinteadent(llr.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 own 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 line. The rates charged were much
loss 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 Easter❑ 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 bo 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 (Xtr. 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,
185 i—(See Collis's letter, 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 1,0591. 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. •Waddy's 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 40,0001. 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 opinion
that steps should immediately be taken strictly to limit the
operation of the draft agreement to the terms therein spe-
cified, and that the trade should be thrown open to mer-
chants on the line, and that no exclusive advantages should
be given to any.
LOCOMOTIVE SUPERINTENDENT.

The agreement entered Into with Mr. Gooch in May,
1850, might have resulted favoura.b 7,l,provided it had been
carried out in its integrity; and if it had not so resulted,
the agreement contained a clause by which it might have
been terminated. Rut this agreement has been allowed to
run on, and has been made the pretext for paying Mr.
Gooch, during the last five years, sums as per centages
amounting to little less than 20,0001., when hia salary was
fixed at 6001. par 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 wagons are repaired at the workshops of the
Eastern Counties Railway.
Your committee recommend that the claim of Mr. Gooch
for the last half-year ending the 30th June, 1855, of
3,1931. 55., be not paid until the justice of this and all Mr.
Gooch's former claims have been ascertained by a reference
to arbitration.
Your committee further recommend that Mr. Geoch's
engagement be referred to the law officers of the company,
with a view to its being immediately terminated, thereby
removing the reproach which such an unwarrantable de-
parture from :ill sound principles of management has
brought upon the comp any. The committee desire to refer
you particularly to the evidence at pages 2,3, 4,7, 8,9, 11,
18, 19, 25, 26, 27, 2S, 29, 32, and 72.