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

RAILWAY INTELLIGENCE.
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GLOUCESTER AND DEAN FOREST.
It appears that an arrangement has been entered
into between this company and the Great Western
Company, by which the tormer company are to pro.
teed with all practicable dispatch to complete their
line, and on its completion the latter company are to
lease it, at a rent equivalent to 4i per cent. per annum
on the total cost. On the completion of a railway
from the Gloucester and Dean Forest Railway to
Hereford the above rent is to be increased to 51 per
cent., but with the condition that this company shall
subscribe 25,0001. towards the capital of the proposed
Hereford, Ross, and Gloucester Railway. Should no
Hereford line be completed, the rent of the Gloucester
and Dean Forest line is to stand at 4i per cent. for
five years, and then to be raised to 5 per cent.

SCOTTISH CENTRAL.
The directors of this company have commenced
their lawsuit against the Caledonian, the Lancaster
and Carlisle, and the London and North-Western
Companies, to recover certain sums alleged to be due
to the Scottish Central Company, according to the
terms of a working agreement entered into in
January, 1849, with the above companies. By the
agreement the southern companies were liable to
pay a certain sum for their proportion of the
through traffic, and were jointly and severally re-
sponsible for the working expenses of the Scottish
line. The Scottish Central Company claim from
the Caledonian Company the sum of 8,6961. as
the proportion of through traffic from July, 1849, to
January, 1850; also a further sum of 6,2741. from
January to November 31, 1850. From the Lancaster
and Carlisle Company they claim 4,2271., and from
the London and North-Western Company, on account
of through traffic receipts, 2,541/. They also claim
from these companies, conjointly and severally, the
sum of 350,0001. as damages, arising from non-pay-
ment of salaries and working expenses; and also the
sum of 550,0001. for breach of contract. The Sou •
tbern companies deny their liability under the con-
tract, and it appears they are determined to resist
the claims of the Scottish Central Company. The
professed object of the agreement was to secure to
the Scottish Central Company a net revenue of
71,4001. a year, being equivalent to 7 per cent. on the
share capital of the company, in consideration of that
company sending all the traffic in their power over the
Caledonian, the Lancaster and Carlisle, and the Lon-
don and North-Western Railways. The working of
the Scottish Central line under the agreement in-
volved considerable losses on the Southern companies,
and after working for 10 months the joint committee
of directors agreed to modify the terms of the agree-
ment, and to accept 50,000/. a year and half profits,
instead of 71,4001. a year, but which the shareholders
refused to sanction, and the Southern companies from
that time ceased to work the line.
The lawyers will in all probability realise a large
sum by this foolish agreement.

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-
PaTY._ _

Before the proceedings commenced, Mr. D. Wire,
who 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. Quitter, 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 Hoisouß 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
then commenced.

Mr. Selwyn and Mr. Mellish appeared a 3 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. Selwy❑ said they would have to prove the
payment into Messrs. Mastermans', through the
hankers' clerks, of the whole of the 106,030/., 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 16th of October, 1845, he had received on ac-
count of deposits paid in to Messrs. Masterman's to
the account of the Madrid and Valencia Railway the
sum of 17,750/. This account was opened by order
of the trustees, Messrs. Chadwick, Coliuhoun, and
Knill, 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. lie 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, ono 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 let 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. 11d., 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 an order
for the delivering up of all the books and
papers in
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.
M r
29th of
August, 1845. Thecheque
Dir. G. Street, clerk to Messrs. Barker, 7 the
adver-
tising agents, deposed to orders for the insertion of
advertisements having been received on the
moneyen was
adjourned paid
by
ato this day.
I
signed by the directors.
T
totalere amount of the deposit money
received is
ceih:ladpterbod by the
proceedings
s%
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 wont
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.— 'Kelso Chronicle.

BRISTOL LUNATIC ASYLUM.—It is stated that an
order has been sent to tha Bristol parochial authorities from
the Secretary of State for the erection of a lunatic asylum,
the estimated cost of which is 5030001.