The Sun.
London, England, 1851-01-14 00:00:00

MADRID AND VALENCIA.

Yesterday there was a very numerous meeting
before his Honour the Master in Chancery Blunt, on
the occasion of proceeding with the charge against the
directors of this company, calling upon them to ac-
count for the appropriation of the sum of 106,0301.,
received by them from the shareholders of the com-
pany.

Before the proceedings commenced, Mr. D. Wire,
wbo represented a large number of the shareholders,
said he had been instructed to make an application to
know what had been done with the caution money,
amounting to 17,0001., stated to have been received
by Mr. Quilter, the official manager, from the Spanish
Government, as they were anxious to ascertain whe-
ther or not his Honour might not direct that a dividend
should be paid out of it to the shareholders after re-
serving a sufficient sum fur the payment of costs and
for an indemnity fund.
His HoNona said he did not see how he could make
a dividend under the estate until the Court was in
possession of all the facts.

The proceedings in connexion with the charge were
;hen commenced.

Mr. Selwyn and Mr. Mellish appeared a) counsel
for the Official Manager; Mr. Glasse, for Mr. Chad-
wick ; Mr. Daniell, for Count Eyre ; Mr. Baggallay,
for Messrs. Capper and Knill ; Mr. Gifford and other
counsel for other directors.
A number of preliminary objections to proceeding
with the case were taken by these gentlemen on be-
half of their clients.

Mr. Selwyn said they would have to prove the
payment into Messrs. Mastermans', through the
bankers' clerks, of the whole of the 106,0301., and
with this view he proceeded to call
Mr. J. G. Ercke, who, in the course of a long ex-
amination and cross-examination, proved from the
ledger and railway call book, that between the 10th
and IGth of October, 1845, he had received on ac-
count of deposits paid into Messrs. Masterman's to
the account of the Madrid and Valencia Railway the
sum of 17,7501. This account was opened by order
of the trustees, Messrs. Chadwick, Col4uhoun, and
and this order was dated 9th of October, 1845.
By an item in the ledger, dated the 7th of October, it
appeared that a sum of 30,0001. was advanced by the
firm. He did not know that Count Eyre had any
control over the moneys that were placed in Master-
man's. The account opened was in the name of the
Madrid and Valencia Railway Company, and not in
conformity with the letter, directing that it should be
opened in the name of the three trustees. The
banker's receipts were made out on account of the
trustees of the Madrid and Valencia Railway Co m-
pany.

Mr. E. Masterman, one of the partners in the bank,
was then called to prove the opening of an account
with his firm, the authority from the trustees for so
doing, and the course of business pursued by the bank
in these matters. It was their practice to return the
cheques with the pass-book after a certain time.
Mr. R. Smith deposed to having received between
the 10th and 23d of October, 1845, a sum of 33,3801.
Subsequent accounts connected with this company
appeared to have been opened with the bank in the
following year, on the Ist of April.--(Laughter.) All
these sums were paid in cheques.
Mr. Billing, another clerk in the bank, deposed to
the first item in the banker's ledger on behalf of
the company being 30,7121., and to the last, or balance,
its credit, being 221. 16s. lid., out of a total receipt
of 106,0301.—(Laughter.)
Evidence was then gone into to prove due service
on Mr. Rose, solicitor for Mr. Chadwick, of en order
in
for the delivering up of all the books and papers
his possession. It was shown that Mr. Rose was ill
in bed.
Mr. Glasse said that Mr. Rose was ready to pro-
duce the books upon payment of the lien he had upon
them of 5,0001.
paid
o n
by the a 2ch9ethqu ofe
Mr. G. Street, clerk to Messrs. _Barker, the adver-
tising agents, deposed to orders for the insertion of
advertisements halvlinegmboeneeny
receivedwas
August, 1845.
signed by the directors.
The proceedings were then adjourned to this day.
It is stated that the total amount of the deposit money
received by the Spanish directors from the Spanish
shareholders in this company, on between 9,000 and
3,000 shares taken up, has been returned to them
in full.

- -
KELSO BRANCH OF THE NORTH BRITISH RAILWAY.
—On Wednesday afternoon a locomotive and tender passed
along the line from Wallace Nick to the terminus at Max-
wellheugh. Mr. Ross, the contractor, Mr. Jardine, civil en-
gineer, and some others, accompanied the engine, which went
at a moderate pace. The result was highly satisfactory, and
the smoothness of the incline was the subject of general re-
mark. We understand that the Government inspector will
examine the line on Saturday, and that it will be opened for
general traffic next week.— Ktlso Chronicle.

BRISTOL LUNATIC ASYLUM.—It is stated that an
order has been sent to the Bristol parochial authorities from
the Secretary of State for the erection of a lunatic asylum,
the estimated cost of which is 50,000/.