The Sun.
London, England, 1866-10-13 00:00:00

UNITED STATES REVENUE.

Subjoined is an official statement of the revenue and ex-
penditure of the United States for the three months ending
the 30th June. It will be seen that receipts from customs,
internal revenue, &c., exceeded the expenditure by more
than fifty-six million dollars, which was applied to the re-

demption of outstanding obligations. Since June the
amounts received show a considerable increase so that by
the end of the current year the Secretary of the Treasury
will be enabled materially to reduce the Government in-
debtedness. The revenue derivable in gold from customs
now reaches quite $200,000,000 per annum, while the
amount of interest on the national debt, which is payable
in gold, is only about seventy-five million dollars.
Receipts

Customs 546,175,151.39
Sale of public lauds
Direct tax . • ..... 488,636.07
Internal revenue
Incidental and miscellaneous 18,342,516.66

Total receipts exclusive of loans 5129,010,762.67
Receipts froth loans, &c., postage and other
stamps, act of July 17, 1866
Fractional currency, act March 3, 1863
Certificates of gold deposits
Six per cent. twenty-year bonds, act, of
July 17, 1831 13,156.00
Temporary loans, acts February 25, and
March, 17, 1862 106,146,819.25
Certificates of indebtedness, acts of March
1 and 17, 1862
Five-Twenty-year bonds, act of March 3,
1864 182,000.00
Do. do. do. 1865 192,390,330.00

Total receipts 5321,433,092.67

Expenditures.
Civil, foreign, intercourse, and miscellaneous $11,853,339.55
Interior, Pensions, and Indian
War 12,744,022.69
Navy
Interest on public debt, including treasury
notes • 36,155,280.89

Total expenditures, exclusive of prin-
cipal of public debt
Redemption of Texican indemnity stock,
per act September 9th, 1850
Payment of Treasury notes per act March
2, 1861 400.00'
Redemption of Treasury notes per Act July
17, 1861
Redemption of seven 3-10 three-year coupon
bonds per act July 17, 1861 548,900.00
Reimbursement of temporary loan per acts
February 25, and March 17, 1862 100,613,448.34
Redemption of certificates of indebtedness
per acts of March 1 and 17, 1862
Redemption of treasury notes per act Feb-
ruary 25, 1862
Redemption of postage and other stamps per
act July 17, 1862 857,542.31
Redemption of fractional currency, act
March 3,1863 4,574,300.52
Redemption of gold certificates, act March
3, 1862 • • 51,454,920.00
Redemption of two years' 5 per cent. inte-
rest bearing Treasury notes, per act
March 3, 1863
Redemption of three years' 6 per cent. com-
pound interest notes, per act of March 3,
1863 . 13,000,000.00
Redemption of three years' seven 3-10
Treasury notes, per acts of June 30, 1864,
and March 5, 1864
Premium in the purchase of the same

Total expenditures 5322,442,701.42

There has been renewed activity in American Securities
in the London Market during the past week. In United
States 5-20's there has been a fair amount of business
transacted at steadily advancing prices, the approaching
payment of interest bringing in numerous buyers on con-
tinental account ; the last quotation 711 to I indicates a
rise on the week of fully one and a half per cent.
Illinois Central Shares have been well supported
(closing 781 and 1), but Eries, after touching 52, have de-
clined on sales to realise profits, and lower quotations by
telegraph from Now York to 471 to 48. Atlantic and Great
Western Consolidated Bonds have been more offered, and
Certificates of Debenture close 641 to 651, about a half per
cent. under the price of this day week.

London, Chatham, and Dover Railway.

The following appeared in our Third Edition of last
evening:—
The adjourned half-yearly meeting of the directors and
shareholders 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 Sondes,
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 thereforer 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. HODGKINSON 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, but 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 had been limited, and he 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 bo investigated, the London
Chatham, andlDover 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 theyhad 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 ho could have sold them either 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, p.nd, although the prospect was rather
gloomy, whether they were 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. Ho con-
cluded by moving the report.

Mr. HILLIER 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. SURGEY said all that was required to'enable the
company to carry out all their obligations was confidence
and patience.

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

A SHAREHOLDER wished to ask Sir M. Peto when ho
guaranteed the 6 per cent. on the stook 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 he had committed a breach of trust—a
fraud, in appropriating to his use £128,000 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 18G3, when ho 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 quarter
of Lloyd's bonds. These bonds took precedence of evory

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 1864
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 inteu-
tionto 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 the most straightforward manner,
and that there would be no objection on the part of his firm
to the arbitration of any number of honourable meth
(Hear, hear.) Ho desired that in all future dealings
nothing but fairness should be exercised towards him.

A SIIAREHOLDER—Where is the £128,000 lodged ?
Sir M. PETO said they were lodged with a financial com-
pany, who held valid securities, which had large transac-
tions with his firm, which would leave a large surplus 00
his side of the account over and above the £128,000. (Heart
hear, and cheers.)
A SHAREHOLDER wished to know who it was that first
incurred the liability of Lloyd's bonds, because Sir M. Pet°
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 CRAIRmANof 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, wile
would select one, two, or three cases for trial, and thus $
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 ho 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 W
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 were 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 nevi
directors to act with the present board. The names of the
gentlemen he proposed were as follows: Mr. G. Hodgkin'
son Mr. Hilliard, Mr. T. A. Hankey, Mr. F. Heritage, Mt'
A. T. Hotham, and Mr. G. C. Taylor.
Mr. Honasos, the chairman of the debenture-holderal
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-No'
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 pleasect
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 Hodgkinsor4
Mr. Hilliard, and Mr. Hankey were elected.
On the name of Mr. Heritage being put, it was strongly
i
objected to, as he was solicitor to the Credit ' Foncier,
that gentleman at once withdrew as a candidate.
Mr. Hotham and Mr. Taylor were then elected a°
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 se
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 tbe
deepest emotion. He said, if deception had been practised,
he had been deceived like the shareholders. He had
ways done his utmost for the benefit of the company, and I.`.
he remained at the board he should work ten times bode'
than he had hitherto done. (Cheers.)
Lord SONDES said he had done his best, but at the snO'
time he must say he had not been brought up to railsvaie
business, especially finance. (Laughters and cheers.) 11.0
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.