The Sun.
London, England, 1856-12-10 00:00:00

THE GREAT

RAILWAY.

Smretary's•office, King's-cress Station, London.
Extract from the minutes of the proceedings of the
directors at a meeting of the board, held on Tuesday,
Nov. 25, 1856.
" Read the following report from the secretary :
" The Great Northern Railway Secretary's-office,
King's-cross station, London, Nov. 25, 1856, Tuesday
morning.
" Gentlemen—Adverting to the conversation at the
board on Oct. 28 last, raised by the chairman, on the
subject of several discrepancies reported to him by me,
as having been discovered in the books of the registration
departmen, whereby much larger amounts of the various
kinds of shares or stocks of the company appeared to be in
the hands of the proprietors than the amount of capital ac-
tually raised and received by the company represented, I
have the painful duty of now bringing formally under the
notice of the board, that, in pursuing the examination I
had been auth, rised by the chairman to institute, it was
ascertained that Mr. Leopold Redpath, the registrar,
has for a considerable time practised a deliberate system
of fraud. by falsification of the entries as made in the re•
gisters of the proper amounts of stocks from time to time
transferred, and in accordance with the amounts stated
in the deeds of transfer sent in by brokers and proprietors
for registration, and after such had been properly regis-
tered ; and further, carrying on those frauds by means of
many forgeries of the names and signatues of other per-
sons. Upon this being discovered, and Redpath not corn-
ing to the office as usual, a warrant, under the orders of
the chairman, was obtained on Tuesday evening, Nov.
11 inst., after the board which net on that day had
separated, for the apprehension of Redpath, and on the
same evening it was considered prudent to take into
custody Charles Kent, the first clerk in the registration
office, who appeared to have been and to be then acting
as an accomplice of Redpath. Redpath was captured
on Friday morning, Nov. 14 inst., and taken before the
Clerkenwell Police-court, and remanded ;and Kent hav-
ing been previously also remanded at the same court,
both were brought up for examination on Friday last,
Nov. 1, when evidence was given of several cases of
fraud and forgery, and they were again remanded till
next Friday, bail having been offered for Kent and re-
fused.
"Messrs. Humphreys, the well known solicitors, have
been engaged, and are vigorously carrying on the prose-
cution.
" The examination of the books and documents of
the registration department is in progress, but this will
be a work of great labour and time.—l have the honour
to be, gentlemen, your faithful, humble servant,
(Signed) " J. R. MOWATT.
" To the Directors of the Great Northern

Railway Company.'

"Read also letter of Nov. 13, from Mr. W. H. Clark,
the late registrar of the company, to the effect that hav-
ing just read an account of the large frauds reported to
have been discovered in the transfer department of the
Great Northern Railway Company, he hastens to place
at the service of the directors any explanation or infor-
mation he may be able to give as to that department
while he was engaged in it ; and
" Read report of the 24th November, from Messrs.
Johnston, Farquhar, and Leecb, the company's solici-
tors, of the steps taken to obtain an adjudication of
bankruptcy against Redpath.
" The chairman stated that, for his own part, he had
determined, and hoped the board would agree with him,
that the books of the registration office should be tho-
roughly shifted and examined by competent parties, en-
tirely independent of the company, and that he proposed
to call upon the auditors to take immediate steps for
such examination being carried out by third parties.
"Discussion ensued, and the course proposed by the
chairman was unanimously acquiesced in by the board.
At 12 o'clock Mr. Cattley and Mr. Chapman, the
auditors, were received at the board, in accordance with
a letter from the secretary, by order of the chairman,
requesting them to attend.
" The chairman explained to them the oourse pro-
posed to be pursued, and stated that he was desired by
the board to request them, as auditors of the company's
accounts, to carry on such an investigation.
" Mr. Chapman and Mr. Cattley respectively inti-
mated their readiness to aid the board in conducting the
examination proposed, or in any other manner, and to
any extent in their power, provided that the resolution
or order of the board to be passed for their guidance did
not convey or imply that they, as auditors, bad neglected
their duty heretofore by not examining the registratio❑
books, and whch they stated they had never conceived
it their duty to examine.
"After further discussion the auditors withdrew, and
thereupon it was
" Resolved—At this, the drat meeting of the directors
since it was clearly ascertained and has been stated to
them that frauds have undoubtedly been practised to a
considerable extent in the department of the registrar of
the shares and stock comprising the capital of the com-
pany, that an immediate and searching examination of
the books and accounts of the registration department
by competent parties in all respects independent of the
company is imperatively necessary.
" That the two auditors of the company, Mr. Cattley
and Mr. Chapman, should be called upon, and accor-
dingly are hereby called upon, t• take the steps neces-
sary to ensure such an examination.
" And that a copy of this resolution be forwarded to
them, with the assurance of the board that any aid they
may require will be readily afforded, accompanied by a
suggestion that it is of the utmost importance that they
should be prepared with a report on the subject, at
latest, by Ist February next, which may be communi-
cated to the proprietors.
(Signed) "J. R. MOWATT, Secretary.'

London, Dec. 2, 1856.

Sir,—We beg to acknowledge the receipt of an extract
from the minutes of the proceedings of the directors, at
a meeting !of the board held on the 25th of Nov. last,
and to acquaint you that, in deference to the wishes and
resolution therein contained, we shall immediately pro-
ceed to lan examination of the records and transfers in
the registration department, in the manner suggested.
Permit us to observe, with reference to that portion of
the minutes which refers to the part the auditors took
in the conversation with the board, that Mr. Cattley
simply stated " that if the proposed resolution meant to
infer that the registration department had ever been
within the sphere of the duties of the auditors, they
must decline to act upon the resolution of the board."—
We have the honour to remain, sir, your very obedient
servants.
(Signed) 'J. CATTLEY, .
Auditors.
JOHN CHAPMAN,

J. R. Mowatt, Esq., &c.,
Great Northern Railway Company.

London, Dec. 3, 1856.
Sir,—We beg to introduce to your acquaintance the
bearer, Mr. W. W. Deloitte, the gentleman whose pro-
fessional aid we have called in, for the purpose of carry-
ing on the task of investigation entrusted to us by the
board of directors.
MrPODeloitte's testimonials and present important ap-
pointments give us every reason to believe that we could
not have selected any one more competent by ability and
independence of character to assist us in this arduous
duty.
We have assured Mr. Deloitte that you will render
him every assistance he may require.—We are, sir, yenr
very obedient servants,
(Signed) J. CATTLEY.
JOHN CHAPMAN.

J. R. Mowatt, Esq., Secretary,
Great Northern Railway Company.

The Great Northern Railway Secretary's Office,
King's-cross Station, London, Dec. 4, 1856.
Gentlemen,—Your letter of the 3d inst. to me, intro-
duclng Mr. Deloitte as the gentleman entrusted with the
examination of the books and documents of the regis•
tration-office, was brought here yesterday by Mr. De-
loitte, but as I was absent at the police-office he left it
for me. This morning I had a lengthened sitting with
Mr. Deloitte, and afterwards introduced him to the
registration-office, with full authority to act as he thought
fit in carrying out your instructions, assuring him at the
same time that he should receive every assistance or
explanation it was in the power of this establishment to
afford. I sent a copy of your letter of yesterday to the
chairman.
Your letter, dated the 2d inst., in return to the minute
of the board of the 25th ult., was received this morning,
and shall be laid before the directors.--I am, gentlemen,
your obedient humble servant,
(Signed) J. R. MOWATT, Secretary.
John Chapman, Esq., and John Cattley, Esq.