The Sun.
London, England, 1849-04-12 00:00:00

THE SUN,

Mr Love— What means had the directors of nicer-
tainirg whether ihe tyiymout 'natio to you on the 27th
o.:tober, 1846, of 81,104 was correct, they not having
had any report made to them of your sale to the com-
paiy?—l have no recollection what representation was
R11.•to to the directors, but I have no doubt that they
were in '‘:rrned that it had been expended in the purchase
of Great North of 11:,,gland shares.

Nit.. Prance—Have you any objection to state to this
committee at what periol and under what circumstances
you became possessed of the Great North of England
shares you subsequ,ntly ,01,1 to this company F—To the
best of my recolls-c•bn I bought every shAre in the open
market through brokers, in the latter part of September
and the month of October, 1846.
Mr. Prance—Have you any objection to produce your
brokers' cor.traets?—l should have no objection if I had
them, but I have them not.
Mr. Prance—Have you any objection to state whether,
when you purchased the shares, they were transferred
into your own name?—l would like this question to be
repeated to-morrow.
SATURDAY, MAncu 10.
Mr. GEORGLI lluDsoN's Examination resumed.

Mr. fludson—ln answer to the previous question I
put in this paper. (The, f.,llowing is a copy):—
" MR. HUDSON'S SHARES. . •

" 1001. Shares-2 transfrrred to Messrs. Hudson,
Richardson, and Nicholson; 32 to Mr. Richard Nichol-
son; 117 t ) Josh. Laurence in the first instance, and
from him on one deed to Mr. Hudson, Richardson, and
Nicholson: 151.

"401. Shares-342 transferred in the first instance to
Philip Cazenove, from him to Messrs. Hudson, Richard-
son, and Nicholson.
" 30/. Shares-13 transferred to Messrs. Hudson,
Richardson, and Nicholson; 78 to Richard Nichol-
son: 91.

" 15/. Shares-46 transferred to Messrs. Hudson,
Richardson, and Nicholson; 1,241 to Mr. Richard
Nicholson; 1,587 to Josh. Laurence in the first instsnce,
and from him to Messrs. Hudson, Richardson, and
Nicholson: 2,874."

Mr. Clayton—Mr. Plews state•' that at the time of
the contract for the purchase of the Great North of
England Railway, and up to the passing of the Act of
July 27, 1846, for carrying out that contract, you were
not registered as a holder of any shares in the Great
North of England Railway; were you directly or indi.
rectly interested in any share in that railway at those
periods?—l had no interest whatever, either directly or
indirectly, nor did I gain one shilling by the purchase.
Mr. Clayton—With respect to the sale of shares by
you, Mr. Hudson, to the company, did it never occur to
you that there was an impropriety in your taking part
in fixing the prices at which these shares should be pur
chased?—No, nor do I think so still, provided I had
fixed a price at which it was advantageous for the corn
pany to purchase at ; I considered it nothing more than
the discounting of the company's bill, which must be
paid in July, 1850. Although I feel justified in the
course that I took, yet, before the statement of accounts
was made up of the Great North of England purchase, it
did occur to me that it was possible that some objec-
cions might be taken to the sale, and, although not then
clnscious of any mistake, I stated my intention to Mr.
Close to have the accounts made out at the price the
shares actually cost rue, as near as he could ascertain;
but some few days after, upon a carefulconsideration of
all the liabilities which I was under of a personal nature
for the company, having an action pending of 5,000/.,
and also having advanced 16,500/. for West Durham
share 4, both of which liabilities, so far as they exist, I
came under solely and entirely tor the benefit of the
company, I felt that, in justice to my own protection, I
ought not to give up that which I believed fairly be-
longed to me; but I helieve when the mistake is cor-
rected, I shall not be a gainer of 1,0001. on the whole
transaction.

Mr. Prance—Are you not aware that the 85th clause
of the Companies Clauses Consolidation Act spe-
cially enacts that " No person holding an office or place
of trust or profit under the company, or interested in
any contract with the company, shall be capable of
being a director, and no director shall be capable of
being interested iu any contract with the company
during the time he shall be a director?"—l think in
this cisr., the Act of Parliament compelling the com-
pany to become purchasers, I had no recourse than
eventually to sell to them, as in the case of a railway
having power to tuke a director's land, the sale is com-
pulsory in both cases.

. _
Mr. Love—But there is the peculiarity in this trans-
action that you purchased these shares after the passing
of the Great North of England Act, requiring the sale
of them to the York, Newcastle, and Berwick Company
on or before July, 1850. Why, therefore, did you not
purchase them in the first instance for that company, of
which you were chairman, instead of for yourself?--I
had no authority at that time to purchase them.
Mr. Love—Can you put in any evidence of the cost to
you of the shares you sold to the company ?—I cannot do
,o at present, but will endeavour to do so before the corn.
mittee closes.—(See Appendix.)
Mr. Prance—ln connexion with the question I last
addressed to you, is not clause 85 of the Railway Clauses
Consolidation Act also in harmony with the general
principle of English law, that no trustee shall deal for his
own benefit with the property of his cestuique trust, and
sin with the general law of broker and principal? —I
sm not a lawyer, but your question does not in my mind
apply, as I am not only a trustee, but also as a large
sharato:der in the York, Newcastle, and Berwick Coin-
p•sey, one of the cestuique trust, and, therefore, act in
both capacities; and the Act leaves me no option but
compels me to act as heat.
MONDAY, MARCH 12.
Mr. CLOSE'S Be-examination resumed.
(Sundry Accounts exhibited.)
Mr. Love—Are these the accounts current of certain
transactions with Mr. Allhusen ?—Yes.

Mr. Love—Do th, y contain Lull particulars of the en-
lire sAle, by Mr. Alihusen, to the company ?—Yes; I be-
livve ;hey do.

Mr. Love—And do they contain parti;tulars of all
the payments t,) Mr. Allhuse❑ ?—They do not contain
payment of 2,0001. mule on the sth of May, 1847 ;
cne of 1,000/, made on the 18th of Mg ; one of 850/.,
nrtde on the 21st May ; ono of 159/. 10s., made on 31st
May.

Mr. Love—Have you Mr. Allhusen's receipts for these
four items ?—Y's, I proluce them.
Mr. Love—Have 3ou any contracts of sale from Mr.
Allhustii to the company ?—I am not aware of any,
but I will look through the correspondence with Mr.
A I I h usc,n.

Mr. Prance—Have you received any reply to your
l-tter t 9 Messrs. Laurt•nce, Cazenove, and Co., asking
for duplicates of the original contracts?—l bare not.
Mr. Love—Would you be so good as to inform this
clmtuittee whether the plyment alleged to be paid to
C. Allhusrn, of 6,6001., June, 8, 1848, and of 2,5001,
March 11, 1843, are entered in the ledger of the Great
North of England Purchase?—Yes; in pages 25 and 26
in the ledger.

TUESDAY, MARCh 13.
Mr. GEORGE HODSON'S R—examination resumed.
Mr. Prance—ln our examination yesterday of the
account of Mr. C. Sstterthwaite, a letter from him was
presented to us, stating that the amount that he received
250 Great North of England 301. shares was
16,694., viz , for the shares 16,500/., and 1001.lfor the
stamps; while the books of the company describe the
transaction thus:—" 250 30/. shares, 16,4621. 10s. ;
tames, 1001.; commission, 1001. Total, 16,6621. 10s."
Can )on explain to the committee this apparent discre-
pancy ?—I bought of Mr. Satterthwaite 250 shares at
661. per share. He brought them to my house at Albert-
g.ite. I give him my own cheque on Glyn and Co. for
the money, and I am almost as unable to account for the
mistake as Mr. Close. The only probable solution of
the matter I can give is, that I recollect that, at about
that tinw, having requested him, Mr. Close, to pay 1001.
to my account, on account of travelling expenses. I find,
from a search of the books, that I have, not, for the last
fifteen or sixteen months, received one sixpense on that
account from the company; so that, in point of fact, the
mistake is 37/. 104. against me. There was, undoubtedly,
uo commission paid.

Mr. CLOSES Examination resumed.
Mr. Love—Who gave you authority to pay the sum
of 16,652/. 13s. on the sth of April last to Mr. Hudson,
and on wt,at account was that sum paid?—l took my
directions from Mr. Hudson, and gave a cheque of the
directors for the amount. It was paid to Mr. Hudson's
private account at the York Union Bank, viz., 16,5624
los. on the sth of April, and 1001. on the 12th of May ;
I understood it to be for Mr. Sattertbwaite's shares.
Mr. Love—Are you aware that Mr. Hudson pur-
chased these shares when in London, and paid for
them there; and, if so, are you certain that the order
to pay the sum of 16.662/ 10s. was given verbally or by
letter?—Mr. Iluds.in gave ire orders verbally, I am
certain of that.

Mr. Love—Anil did you, in accordance with such
orders, so enter the purchase in the books of the cora-
pany ? —Yes ; it was on such verbal order that I did so
ent,r it.

Mr. Prance—Produce to this committee all the cor-
respondence between you and Mr. Satterthwaite on this
subject.—l produce copies of my letters to Mr. Satter-
thwaite, and his original letters in reply thereto.
The following is a copy of the correspondence thus
exhibited:

Englandllrllu,l3Bo7.
shares
purchasedme in March last or in April;
trouble you to sendasale note, and also a
plo"yrtS.hiirOih you 250 Great
It becomes neces-
saryhe cxotnimittee which
receipt for the amount of purchase.
to have formal receipts for
are about to investigate this account ne
"I am, sir, your obedient servant,
ek.
(Signed) " Joart C
" To C. Satterthwaite, Esq., 38, Throgmorton!ftrs:e. "
MR. SATTERTHWAITE'S REPLY.
" London, Feb. 26, 1849.
" Sir,—Yours to hand, I did not make the usual notes of
sale as in the case where I obtained a commission,
having treated Mr. Hudson merely as a dealer in the
transaction. I think Mr. Hudson will have a note in his
possession, which will be all you require.
" In requesting a receipt, do you wish me to give you
a stamped receipt.
Mr. Hudson gave me his own cheque for the amount,
and I think ho will find a note from the acknewledging
the same.—Yours truly,
(Signed) C. SATTERTHWAITE.
" John Close, Esq."
JOHN CLOSE TO C. NATTERTHWAITE.
" February 28, 1849.
" Sir,—ln reply to your letter of the 26th inst., I shall
be obbged by your giving me a receipt on a stamp for
the 16,562/. 10s. paid to you by Mr. Hudson for Great
North of England shares.
" I beg to enclose a 10s. stamp.
" Apologizing for this trouble, I am, Sir, yours very
obediently,
(Signed) " JOHN CLOSE.
To C. Satterthwaite, Esq.. Stock Exchange, London."
C. SATTERTHWAITE'S REPLY.
" London, March 1, 1849.
" Sir,—Yours to hand yostgday, 10414 •tamp; the