The Sun.
London, England, 1847-02-25 00:00:00

CENTRAL OF SPAIN RAILWAY.*
A meeting of the shareholders in this project was held
yesterday at the London Tavern, Bishopsgate• street, to hear
the report of the committee appointed on the 14th December
last, to investigate the affairs of the company.
Mr. GEORGE SEYMOUR, being unanimously called to the
chair, proceeded to read the committee's report on the affairs
of the company. It stated that a railway from Madrid to the
frontiers of Portugal had been proposed early in May, 1845.
and a company formed, with a proposed capital of 2,000,0004,
in 100,000 shares, 50,000 of these being reserved for Spanish
shareholders. In the month of Jupe of the same year
an advertisement from the secretary of the company ap-
peared, stating that all the 50,000 English shares had been
allotted, and that it was not in the power of the directors to
satisfy the applications, which had exceeded the whole
amount of shares by four-fifths; and a second advertisement,
in the same month, announced that the company had re-
ceived the royal concession of the Sovereign of Spain on 30th
May. Capt. Pilkington, about the end of June, was dispatched
to Spain to make the necessary preparations, surveys, &c., for
beginning the line. From that time till June, 1846, the
shareholders had no communication with the directors; but
in that month an advertisement appeared, stating that they
had made arrangements to construct the half of the line to
Toledo with Spanish capital. Such was the history of the
company as it was known to the shareholders generally, The
committee appointed at last meeting, on coming to examine
into its affairs, found every impediment thrown in their way ;
the directors refused to communicate with them ; they had
indeed been allowed access to the minute book and the cash
book ; but the banker's book and most of the letters, the do-
cuments, in fact, which would have corroborated or otherwise
the result to which the commissioners had come, had been
suppressed. But they called the attention of the
shareholders to this, that on the 9th of June, 1845, the
directors announced that all the shares had been issued,
and that applications for shares had been sent exceeding the
number of shares by four-fifths. Yet, what did they find?
That the whole number of shares allotted was 27,785, out of
50,000, leaving a balance of 22,215 unaccounted for, retained
in the hands of the directors. They found, moreover, that by
a minute of the 7th May. 10,000 shares had been reserved for
the special committee. The number of shares paid upon by the
public was 10,005 ; 4,000 more were put down to Captain Pil-
kington as paid upon, and 4,405 shares appeared as given away
gratis in different lots to different parties, seemingly for ser-
vices, making the total amount of shares, ranking as paid
upon, 18,405. From the absence of the banker's book, the
committee could not arrive at any result concerning the finances
of the company e • but this appeared from the cash-book, that the
whole of the shareholders' money had been expended. ex-
cept a balance, less than 8001., in the hands of the directors.
It appeared that Captain Pilkington alone had had paid to
hurl 20,9001. 3s. 6d., but on what account there was no means
of ascertaining from the book; and the Captain himself
had refused the committee his accounts, or any assistance to-
wards understanding this part of the business. The other
point to which the committee adverted in their report re-
ferred to the concession of the line by the Spanish Court.
An advertisement appeared in June 1845 from the directors,
stating that the royal concession of the company's line had
been obtained on the 30th May that year; the fact, how-
ever, turned out to be, that negotiations for this pur-
pose continued to be carried on until the December
following, when the royal concession was positively re-
"used,, and refused, as it seemed to the committee, on
perfectly justifiable grounds. All that had been ob-
tained previously was, the permission to deposit plans
and surveys of the proposed line with the Government, and
the promise that if these should appear satisfactory to the
Government, the ooncession of the line would be granted.
Che committee had had the opinion of several gentlemen
as to the worth of that preliminary concession, and
especially of a gentleman who had been Minister of
. the Interior in Spain, and their opinion had always been
that that promise was neither definite nor binding—in fact,
. gave the company nothing. (The Chairman then read
several letters sent to the secretary of the company, and
read at the board, condemning, in the most positive lan-
guage, the plans and surveys of Captain Pilkington
as being incorrect, imperfect, and unworthy of the
company, or of any man of professional compe-
tency). The Chairman, in remarking upon some parts
of the report, said he had little doubt but that the money
of the shareholders had been used by the directors in rigging
the market; indeed, there were documents which, at least,
excited a suspicion of something that could not be done
fairly, plainly, and openly. The following two letters, out
of many others, were read to the meeting. They were
signed by Mr. Harvey, the secretary, and addressed to Cap-
tain Pilkington

" July 28th, 1845.
"As to the circumstances of 63 and 62, it is just as I ex-
pected. We must act accordingly. 41 krovvs 38, and by
what I have heard and seen 38 does not stick at trifles."
"28th July, 1845.
" The 34 and 35 informed me by letter yesterday, that 62
is not 59, therefore the (take the first word in 57)
could not have been written as -you were informed. Mark
this. Be 104 and 107 to finish the business of the 53 as soon
as possible."
The committee's report concluded with expressing their
opinion that the directors had injured the shareholders by
not issuing all the shares ; by proceeding with the
line when they had only about 20,0001. capital; that they
had been lavish in the gift of shares to the number of 8,000
to different parties, and of money to Captain Pilkington
without his accounts being rendered ; that they had issued
false statements and mis-statements, and had been guilty of
concealment, by the suppression Of the bankers' book and
other papers.
The CitAtamAx moved the adoption of the report.
The motion was seconded and carried unanimously.
Mr. BULL stated that, as Captain Pilkington's legal ad-
viser, he had recommended him to send in his accounts without
crediting for the money :received, and they had been sent
to the solicitor of the company, and ought to have been at
the meeting.
The CHAIRMAN was of opinion that no combination should
be formed to prosecute the directors ; some of the share-
holders intended doing so on their own resources, and the
rest could take advantage of the result. There was good
ground in the promise made in the prospectus, that unless
the line proceeded the whole 21. would be returned.
The committee then resigned their appointment, and re-
calved the thanks of the meeting.
The CHAIRMAN intimated that the papers of the com-
mittee might be seen at Messrs. Keatley, Cunliffe, and Co.'s,
Chancery- lane.
The meeting, after a vote of thanks to the chairman, then
adjourned.