The Sun.
London, England, 1866-10-12 00:00:00

London, Chatham, and Dover Railway.

ADJOURNED HALF-YEARLY MEETING.
(Tins DAY.)

The adjourned half-yearly meeting of the directors and
sht.reholders of the London, Chatham, and Dover Railway
Company was held to-day at St. James's Hall, Piccadilly,
for the purpose of receiving the report of the committee
of investigation appointed to inquire into the financial
position of the company. The report of the committee of
investigation, together with the directors' reply thereto,
have appeared in The Sun.

At twelve o'clock the Chair was taken by Lord S ondes,
and on either side of the director's table on the platform
"the investigation committee " and the "debenture holders'
committee" were conspicuously represented. At the com-
mencement of the meeting the hall was but half filled.
The CHAIRMAN said the meeting, as they were allaware,
was for the purpose of receiving the report of the commit-
tee of investigation, and therefore, as he thought, they
ought to take the lead in the discussion that day. He called
upon the chairman of the committee to make such state-
ments as he thought proper. (Hear, hear.)
Mr. HODOKINSON said he had, in the first instance, to
apologise for the delay that had taken place in the prepa-
ration and presentation of the report, tlut the amount of
facts and figures submitted to the committee rendered
their labours excessively difficult. At the outset he
would take the liberty of stating that, in answer to what
had been stated elsewhere, he did not think it was part
of the duty of the committee of investigation to put for-
ward a plan for the future or a panacea for the difficulty
under which the company laboured. The labours of the
committee tad been limited, and ho thought rightly
limited, to examine and fully realise the present position
of the company. The committee, with respect to the re-
port which they had felt it their duty to submit to the
shareholders, were compelled to make one which reflected
somewhat seriously on the personal management
of the company. The document, he regretted to say,
also disclosed facts which the committee felt were in the
highest degree reprehensible. (Hear, hear.) He had been
told since the report had been issued that the statements
contained therein did not contain anything so very extra-
ordinary or monstrous—(oh, oh) —and that if the position
of other companies could be investigated, the London
Chatham, andPover would not be considered so very bad;
but he did not deem two wrongs made a right. (Hear,
hear.) With respect to the issuing of preference shares,
when the company did that, the public thought there was
some capital behind to meet them, but what was the posi-
tion of affairs, why the amount of the debenture debt and
the amount raised by preference shares actually exceeded the
amount that had been expended on the whole line of railway.
(Shame.) The manner in which the debenture debt had
been incurred was highly reprehensible, as in some in-
stances only £75 was received for £lOO of debentures.
(Shame.) The directors had issued a reply to the report
of the investigation committee, but in that they had set
down their receipts on various lines to show a profit and
not a loss. The committee thought that the over-issue
of debentures was altogether unjustifiable, :but the di-
rectors did not think so, Another statement in the report
of investigation which was objected to was, that, with re-
spect to the contract price for their metropolitan extension
the committee state that, after the examination of Mr.
Joseph Cubitt, they were perfectly justified in making the
statement they did, that he did not know anything
of the prices until the directors had decided the
matter. The letter of Mr. Cubitt did not contradict one
statement made by the committee, and therefore the com-
mittee were perfectly justified in saying that no competi-
tion had been invited for the Metropolitan extension, and
all that Mr. Cubitt said was, that, taking into considera-
tion the circumstances of the company, lower prices could
not be obtained. (Oh, oh.)

A Shareholder said that he should like to know whether
the contractor got the difference between the £75 and the
£lOO debentures.

Mr. HODGKINSON—He could not say that, he took them
at that price, and he either could have sold them at a dis-
count or par. The committee, in the statement they had
made, had revealed the true position of the concern ; they
had concealed nothing, leaving the shareholders to draw
their own conclusions. The shareholders now knew the
full extent of the evil which beset them, and, knowing
that, they could set about something to improve the
state of affairs, and, although the prospect was rather
gloomy, whether they wore to have sunshine would de-
pend upon the future policy of the Company. They had
a splendid property which was as yet undeveloped, and if
their affairs were now conducted with patience and for
bearance, and the past was not repeated, the shareholders
might look for a bright, if not a brilliant future. He con-
cluded by moving the report.
Mr. Mixon seconded the motion, and said that if all
parties did not endeavour to pull the company to pieces,
but exercised patience and carried on their operations with
energy and honesty, all might yet be well.
Mr. S ITRGEY said all that was required to enable the
company to carry out all their obligations was confidence
and patience.
Mr. Alderman WlLsox asked Mr. Johnson, the secre-
tary, whether he would explain the matter connected with
the over-issue of the £128,000 of debentures. (Confusion).
The CHAIRMAN thought the question had better be
postponed. (Great confusion.)
Mr. JOHNSON, the oecrotary, said alter the suspension of

Sir M. Peto he fully believed that the debentures would
be returned to the company. In all he had done he had
only been actuated for the good of the company. He ad-
mitted that it was an act of indiscretion in not bringing
the matter forward, but he thought in doing so he was
acting for the best interests of the railway. (Cries of
" Oh, oh," "Kick him out," " Turn him out, and "Shame.")

A SHAREHOLDER wished to ask Sir M. Peto when he
guaranteed the 6 per cent. on the stock, if any legal docu-
ment had been signed, because if not, he believed his estate
would not be responsible for one iota of it. He also begged
to ask whether, when he received the money for the re-
turning of those debentures, whether he did so, because
if he did not he considered his conduct infamous and dis-
graceful, that ho had committed a breach of trust—a
fraud, in appropriating to his use £l2B,ooo'of debentures,
for which he ought to stand at the bar of the Old Bailey.
Sir M. PETO said he first became connected with the
company in 1863, when he was called in by the board for
his advice, under the peculiar state of affairs which then
existed. He found there was owing a million and a qqarter
of Lloyd's bonds. These bonds took precedence of every
other security, and it was of the greatest importance that
those bonds should be cleared off. A loan was negotiated
for that purpose, which he got taken up, and then in 1861
it decided to continue the loan rather than :sell the stock.
The loan remained at the request of the directors, and it
was in connection with that matter that his firm became
liable for a large amount. With respect to the over issue
of debentures, the great crisis came in May, and he denied
in whatever took place with regard to the debentures he
had received, he had ever acted in any other way than for
the benefit of the company. They were created for the
purposes of the company. They were handed over to the
firm under the sanction of their solicitor, and there
was nothing whatever irregular in the proceedings.
With respect to the question put to him by a shareholder
as to whether he had signed a legal document with respect
to the 6 per cent. guarantee, he had to say that he did sign
a legal document, and there was never the slightest inten-
tion to repudiate any engagement. With respect to ques-
tions that must arise between his firm and the present or
future board of directors, he could say this, that there was
no desire to deal but in le most straightforward manner,
and that there would be no objection on the part of his firm
to tlio arbitration of any number of honourable men.
(Hear, hear.) He desired that in all future dealings
nothing but fairness should be exercised towards him.

A SHAREHOLDER—Where is the £128,000 rodged ?
Sir M. PETO said they were lodged with a financial com-
pany, who hold valid securities, which had large transac-
tions with his firm, which would.leave a large surplus on
his side of the account overandabove the £128,000. (Hear,
hear, and cheers.)
A SHAREHOLDER wished to know who it was that first
incurred the liability of Lloyd's bonds, because Sir M. Peto
had stated, and it had not been denied, that when he was
first consulted the liability of Lloyd's bonds was still in
existence.

The CHAIRMAN then put the resolution for the reception
of the report of the investigation committee, which was
carried.
The CHAIRmAN'of the Debenture Holders, Committee then
addressed the meeting at some length, and concluded by
asking the bondholders to cease all individual litigation,
and leave the matter in the hands of the committee, who
would select one, two, or three cases for trial, and thus a
large sum of money would be saved from sacrifice.
Mr. H. P. PRICE condemned the system that had been
pursued with respect to the auditing the accounts. The
committee of investigation at page 22 said the accounts
had been inefficiently and imperfectly conducted for years,
and yet their auditors came before them year after year
and stated they were all correct. He should like to know
before the meeting terminated what the directors intended
to do for the future. As far as he could see it appeared
that the directors had been mere puppits, and he was
afraid that even the committee of investigation had. not
found out who pulled the strings.
A SHAREHOLDER asked who was responsible` for the
false half-yearly reports that had been 'submitted to
them for some time past ? (Confusion.)
The CHAIRMAN denied most positively that the reports
had been false.

A SHAREHOLDER—The committee of investigation
stated that they were false.
Confusion and cries of " who prepared the reports,"
" Johnson," " Forbes," and hisses.
Lord HARRIS, the deputy-chairman, said the reports
were based on the statements submitted to them by the heads
of departments, and if those reports had been falsified the
directors wore as much deceived as the shareholders.
(Hear, hear.)
Some confusion here ensued, but eventually

Mr. SURGEY said he should move that six members of
the committee of investigation be appointed, the new
directors to act with the present board. The names of the
gentlemen he proposed were as follows :—Mr. G. Hodkin-
son, Mr. Hilliard, Mr. T. A. Hankey, Mr. F. Heritage, Mr.
A. T. Hotham, and Mr. G. C. Taylor.
Mr. HODG.SON, the chairman of the debenture-holders,
asked the meeting to pause before they swept away the
whole of the trustees. What he advised was, that the
dead wood should be looped off, and that the newly-con-
structed board might then work well ; but if they kept the
depressing spirit amongst them they would never surmount
the difficulty. •
Mr. JACKSON said it would be suicidal for the company
to get rid of their old directors before the parliamentary
campaign was over. Introduce fresh blood if they pleased,
but don't entirely get rid of the old element.
It was then decided, in order to be regular, that the
names of six gentlemen be elected and recommended to be
directors for seats at the board.

This was agreed to, and Mr, Grosvenor Hodgkinson,
Mr. Hilliard, and Mr. Hankey were elected.
On the name of Mr. Heritage being put, it was strongly
objected to, as he was solicitor to the Credit Foncier, and
that gentleman at once withdrew as a candidate.
Mr. Hotham and Mr. Taylor were then elected as
directors.

A SHAREHOLDER hoped that Lord Harris would consent
to remain at the board. He was one in whom the share-
holders had the greatest confidence, and therefore he had
great pleasure in nominating him for re-election as
director.
The proposition was carried with the most enthusiastic
applause.
Lord HARRIS, in rising to thank the meeting for the
kindness extended towards him, laboured under the
deepest emotion. He said, if deception had been practised,
he had been deceived like the shareholders. He had al-
ways done his utmost for the benefit of the company, and if
he remained at the board ho should work ten times harder
than he had hitherto done. (Cheers.)
Lord SONDES said he had done his best, but at the same
time he must say he had not been brought up to railway
business, especially finance. (Laughters and cheers.) He
should thankfully enter into retirement, and he hoped his
successor would meet with better fortune than he had
done. (Cries of " Not if you keep Johnson.")
A vote of thanks was then awarded to the committee of
investigation, and to Lord Sondes, and the proceedings
terminated, having lasted over five hours.)

LONDON GAZETTE.---This Evening.

WHITEHALL, OCT. 10.

The Queen has been pleased to appoint Stephen Tem-
ple, Esq., ono of her Majesty's Counsel, to be her Ma-
jesty's. Attorney-General of the County Palatine of Durham,
vacant by the death of William Mathewson Hindmarch,
Esq.
OCT. 11.

The Queen has been pleased to present the Rev. John
Dawson to the church and parish of Dunnichen, in the
presbytery and county of Forfar, vacant by the death of
the Rev. Alex. Ross.

OCT. 12.
The Queen has boon pleased to presont the Rev. Charles
Edward low, 8.A., to the Rectory of East Barnet, in the
county of Hertford, and diocese of Rochester, the same
being void by the death of the Rev. Thomas Henry
Elwin.

The Queen has also been pleased to nominate the Rev.
Robert Rosseter Hutton, M.A., to the Perpetual Curacy of
Chipping Barnet, in the same county and diocese, the
same being void by the death of the Rev. Thomas Henry
Elwin.

DOWNING-STREET, OCT. 11.
The Queen has been pleased to appoint Julian Paunce-
fote, Esq., to be Attprney-General for the Colony of Hong
Kong, and Henry Watson, Esq., to be Administrator-
General for the Colony of British Guiana.
WAR-OFFICE, PALL-MALL, OCT. 12.
Honourable Artillery Company of London—The Queen
has been pleased to approve of the appointment of Captain
and Brevet Lieutenant-Colonel, with the honorary rank of
Colonel, John Chas. Downie Morrison, on retired full-pay
Royal Marines, to be Adjutant, with the rank of Captain,
vice Capt. George Brinewood Potts, who resigns.

ADMIRALTY, OCT. 11.
The undermentioned Officers have this day been pro-
moted to the rank of Staff Commander in her Majesty's
Fleet, viz.:—George Frederick McDougall, Esq. ; John
Hilary Allard, Esq.

COURSE OF EXCHANGE—This Evening.

Amsterdam gliert. 11 16 11 17
Ditto 3 Months. 11 19i 11 19i
• 2 0

Rotterdam - 1-
Antwerp
25 55
25 50
Brussels
25 50
13
Hamburg — 13 81 25 30
Short 25 20 25 47i
Paris g.,
Ditto 3 Months. 25 421 25 50
_ _

Marseilles - 120
Frankfort on the Maine —119 k 20
Vienna — 13 10 13 20
Trieste — 13 10 20-:
Petersburgn
Berlin
471 471-
471
Madrid
Cadiz
27 10 27 20
Leghorn
Milan
Genoa .............. . ..... .
..... 27 10 - 27 20
Naples .................. .
Palermo .....................
...... 27 10 27 20
Messina .................. ..
..... 51i 511
Lisbon ............ .• •. -•• t blf

..... 51
......

Oporto

SkIIPPLNG LIGENCE—This Day.

BY ELECTRIC TELEGRAPH.
GRAVESEND, Friday Morning.
Arrived, Oct. 12—Waterloo, steamer, from Rotterdam ;
Italia, steamer, from Patras ; Triton, steamer, from Bou-
logne.
Sailad—Laura, for Lisbon ; Darra, for Port Phillip; Sir
R. Peel, steamer, for Dunkirk.

DEAL, Friday Morning.
Passed, Oct. 11.—Arthur Pardew, for tho Cape of Good
Hope; Star of Ceylon, for Gallo; Zeal, for Lagos—all
from London.
Anchored.—Prata, from Penang, for London.
A bark has been run down and sunk by a steamer off St .
Margaret'sßay; name unknown.

Governor Hincks, C. 13., and Major Longley
have arrived at the Alexandra Hotel, Hyde-park-corner.
The marriage of Captain Culme Seymour (Royal
Navy), eldest son of Sir John Culme Seymour, Bart., to
Miss Watson, daughter of the late Hon. Richardson Wet..
son, of Rockingham Castle, will take place on Tuesday
next, the 16th inst.

IT.ARKETS.:—This Day.

LNE.
Tho supply of EnglishMAßE wheatAon sale at our market to-
day was very moderate. There was a quietness in the
trade for all descriptions, and sales progressed slowly at
the rates current on Monday last.
The market was moderately supplied with foreign wheat.
A fair amount of business was transacted, and prices ruled
tolerably firm as regards good and fine dry wheats.
Floating:cargoes of grain moved off steadily at full cur-

roncies.
Barley was in moderate supply. Good and fine malting
produce moves off steadily at full prices : otherwise, the
trade was dull.
Malt sold slowly at late rates.
Oats were in moderate supply and slow request at about
Monday's currency.

Beans and peas were steady at late prices. The market
was but moderately supplied.
There was a fair demand for flour at late currencies.

ISE/IP ARRIVALS THIS WEEK.
Wheat. Barley. Malt. Oats. Flour.
English and Scotch 580 810 490 70 1,170
Irish
Foreign 15,340 2,860 31,810 1,420 As.
brls.

NEWGATE AND LEADENIIALL
These markets are moderately supplied with meat.
Generally speaking, there is a good demand at about late
rates.

Per 81b by the carcase.
s d d
inferior beef 3 4 3 8
Middling do. 3 10 4 0
Prime large do 4 2 4 4
Prime small do I 4 4 8
Veal 4 0 5 4
Lamb. Os 0

sd sd
Interior mutton.... 3 8 4 4
Middling zuutton..4 6 5 0
Prime do .......... 5 2 5 6
Large pork ........ 4 0 4 8
Small pork. ........ 4 10 5 0
td to Os Od

BOROUGH HOP.

Owing to the great deficiency in the yield the trade for
new hops is very firm, anctiully late rates have been paid
for all qualities. Yearlings and old hops have been freely
operated in at quite previous quotations.

Mid and East Keats 160 s to 220 s per cwt
Weald of Keats 140 s to 175 „
Sussex 140 s to 168 s „
Yearlings