The Sun.
London, England, 1866-11-07 00:00:00

1241 4

RAILWAY INTELLIGENCE.

NOIiTIi BIUTISII.

At an adjourned meeting of the Board of
in the
of this company, held on Thursday, the
Board-room, Edinburgh, Mr. Balfour in the chair,
It was moved by Mr. J. Ona EWING and seconded
by Mr. W. P. ADAM, M.P., "That the Boardpav-
ing had under consideration the report of the com-
mittee of investigation, deem it proper to record that
they cannot agree to the paragraphs contained in
pages 11 and 22 of the report, imputing blame to
the directors generally, as they are not aware to
what these observations apply, and do not find in
the report any facts stated which justify such re-
marks. Further, as it appears from the report that
the chairman has for years systematically in-
duced certain officers of the company secretly to
prepare deceptive accounts, which, being docketed
by the auditors, were issued by the Board to the
shareholders, the conduct of the chairman so dis-
closed is calculated to forfeit the confidence of the
public in the company, is injurious to its credit, and
in its results ruinous to the interests of the share-
holders." It was resolved--

1. That it is the duty of the Board to support
the committee of investigation in carrying into effect
the suggestions made in their report as to their re-
construction of the board of direction, and sug-
gest to the shareholders that they should support the
recommendation of the committee accordingly."
Mr. CRAVEN dissented.

"2. That this resolution be communicated to the
committee of investigation."

It was further resolved—

"That the foregoing resolutions be communicated
to the shareholders, and that proxies be asked to be
intrusted to the following directors to support the
committeeviz., Messrs. Beaumont, Orr Ewing,
Balfour, and Ronald."

Mr. Hodgson, to whom a copy of the minute was
sent, wrote to the secretary as follows :
" I contend that there has been no falsification of
accounts. What has been done was to postpone and
place in suspense, until dealt with by the share-
holders, a portion of expenditure during a period of
constant struggle of enormous proportions, aggra-
vated and prolonged by an unjust defence to the
Chancery suit, which but for me would have been
compromised on very inadequate terms, and unless
the shareholders reverse their decision of Sept. 28,
the transactions will be ratified by them, and the
postponed expenditure charged to capital. The na-
tural consequence will be that the dividends, though
deferred, will be eventually paid ; for I cannot be-
lieve that the doctrines of the committee of investi-
gation with respect to the balance sheet of revenue
for the past half-year will be accepted. All the prin-
cipal items depending on the divisions of the half-
years into unequal periods, the interest on unpro-
ductive capital, the charge for deficiency in the Ed-
inburgh and Glasgow rolling stock, and the balances
of revenue from the clearing house and the previous
half-year, and allocation of parliamentary expenses,
have been without dissent adopted by both directors
and shareholders. With respect to the future, I would
submit that it lies with the proprietary to choose in
whom they will confide the conduct of their interests;
but for myself I say without hesitation that no mere
majority of votes would induce me to retain a seat
at the board. Nothing but an unmistakeable expres-
sion of opinion on the part of the great body of
shareholders that my services were needful would
persuade me to encounter the difficult and, in
some degree, painful task that continuance in office
would impose."