The Sun.
London, England, 1856-03-01 00:00:00

ROYAL SWEDISH.

A numerous meeting took place yesterday at the London
Tavern of persons interested in the Royal Swedish Railway
Company, Mr. J. Rhodes presiding, to consider the unautho-
rised issue of shares and obligations by the late chairman,
Mr. Sadleir. It was stated that no suspicion of any irregu-
larity was aroused until about the Fitt' of the present month,
and that Mr. Sadleir, ewhen appealed to on Saturday, the
16th, promised the secretary he would prepare a full state-
ment and present it on the following Monday. His death
having meanwhile occurred, there was ne alternative but
to announce the fact and to adopt precautionary mea-
sures. Some of the principal sharehold,rs having been
consulted, it was determined to call in the aid of Messrs.
Broom and Bagshewe, the accountants, by whom a preliminary
investigation was made, the result of which is embodied in
the following figures. It was explained that the committee
temesrarily appolutod entertained no desire to continue
in office, and that they had only assumed the responsibility
of instituting au initiatory proceeding to bring the question
under the ceusideration of the proprietors, who were recom-
mended to appoint a new and enlarged body to carry out a
thorough inquiry into the situation of the comeany. For
this purpose the necessity of a calm and impartial discussion
was suggested, since, serious as the prospect is, it may bo
greatly aggravated by precipitate litigation or the enforce•
mont of pressing claims. The project was stated to be inher-
ently sound, and it was else observed that if plans can be
devised for organising its management, the Swedish Govern-
ment may be inclined to anrd further facilities for its com-
pletion. The debate that ensued principally related to the
situation of the holders of the unauthorised shares and obli-
gations, but this, it was urged, could not be decided till
a further report was presented. The general feeling
was favourable to tits formation of a new commit-
toe, giving them power to make a searching investigation
preparatory to any proposals for arrangement, the directors
pledging themselves to be bound by the advice and instruc-
tions of its members until their labours are completed.
Eventually a committee of seven, including Mr. Chaplin and
Mr. Tuttle, the Swedish Consul, was appointed, but somo of
the shareholders were dissatisfied at the exclusion of particular
names, and protested against the manner iu which the votes
had been taken.

Subjoined are the statements submitted by the committee
of investigation. From the fact that Mr. Sadleir seems to
have issued shares irregularly not only for his own purposes,
but also for those of the company, and that the transactions
iu this respect have been almost indiscriminate, it is ditlieult
to ascertain at present the actual amount of his delinquencies
on personal account. It will be seen that the total over-issue
of 51. shares beyond the 83,334 which were authorised as the
capital of the company is 16,291, the nominal value of which
is 81,4551., and that the over-issue of obligations of 41. each
beyond the 25,000 authorised is 18,752, of an aggregate value
of 75,128/. As a large proportion, however, of the original
amount of shares and obligations had never been issued to the
public, but ere retained by the company until Mr. Sadleir
Inisappropriated them, his fraud will probably be found much
larger than the two sums thus represented of 81,4551. and
75,128/. Together they make 156,5831. ; but it is possible
that the total issue appropriated by himself may prove
to have been 250,000/. Until the exact nature of his ac-
counts with the company shall have been ascertained there will
be no practicability of determining this point. Everything
seems to indicate that his brother directors allowed him to act
without control of any kind, leaving him to borrow money
for the company on any terms or pretences he pleased, and
to help himself to its assets whenever the pressure of
his own affairs impelled him to that course. A more extra-
ordinary instance of neglect and infatuation on the part of a
public board has never transpired, and the culpability of
those who -have thus betrayed the interests of their cousti-
tuonts is without mitigation, except such as is afforded by
the belief that their disregard of duty was not accompanied
by any intentional dishonesty. Under the circumstances,
the grand point of inquiry will now be as to the method in
which the undertaking may meet its difficulties, and prevent
the money already out, and which by the balance-sheet aa.
pears to have been about 300,0001., from remaining unpro-
ductive. Any attempt to repudiate the over-issued shares
is apparently out of the question. T, ey aro understood to
be free from the slightest taint of forgery or irregularity
which could threw any onus upon the holders or exo-
nerate the company from liability upon them, and it
may be hoped, for the honour of London, that,
unless facts should transpire wholly different from
anything at present known, the disgrace will not be in-
curred even of contemplating such a course. It is true that
in the instance of Mr. Schuyler and the New York axd NOW
Haven Railway, which perhaps gave Mr. Sadleir the first idea
of this mode of plunder, the original shareholders are endea-
vouring, to contest the claims of the holders of the stock he
over-issued ; hut this course has drawn upon them tho une-
quivocal condemnation of the commercial public, end has been
cited in Europe as another example of American laxity. In
the present case, moreover, all the circumstances in favour of
the holders are believed to be still stronger and clearer than in
that instance :

STATEMENT ACCOUNTING FOR 83,334 SHARES, TAB AUTIIORISED
SHARE CAPITAL OF TIIE COMPANY.
The number of shares printed was
There have been issued 29,669
Mr. Sadleir appears to have taken
the following shares to secure
himself for advances made by
him to the Company, &e. 38,605
Mr. Sadloir has also taken for other
alleged purposes ...... f),r)4o

45,243
There have been sont to Swoien 2,011

Supposed total
Shares destroyed
tinaceouuted for
At the dices of tho company 3,309
83,334