The Sun.
London, England, 1866-11-02 00:00:00

COURT OF CI

COUNCIL.

Yesterday a special meeting of the Common
Council was convened at Guildhall, and as there
was a general understanding that the Lord Mayor,
than whom there has been no chief magistrate of
the City of London so popular since the late Mr.
Cubitt, would avail himself of the occasion to take
lea 7e of the Corporation prior to his relinquishing
office, there was a large attendance of members.
THE MAYORALTY.

The LORD MAYOR, on assuming the chair, after
the transaction of some routine business, said—
Gentlemen,—As this is the last occasion on which
I shall have the honour of presiding over this Court,
I cannot take leave without expressing my grateful
thanks to each and to every member for the great
courtesy and consideration I have received at your
hands. Gentlemen, I assnre you these are not
empty words. They are words uttered from a grate-
ful heart, for whatever may be the powers of any
man who occupies this chair, they would be as no-
thing unless he had the confidence and encourage-
ment of those over whom he presides. I confess
this was one of the duties which I approached with
great timidity. I have sat in this court for a period
of twenty years, and with all my knowledge of its
various workings, I little contemplated the grave
and onerous responsibilities of the chief magistrate
in presiding over this assembly. I have the satis-
faction of knowing that I have faithfully and con-
scientiously discharged my duties. (Cheers.) Gen-
tlemen, your uniform courtesy and kindness, your
generous forbearance and consideration, in the court
and out of it, lead me to hope and believe that you
ratify that expression.. (Renewed cheers.) I shall
retire from this office, by God's blessing, with health,
with strength, and with honour. (Cheers.) I shall
retire from it, not to lead an idle life, but to re-
turn into the midst of that Corporation
which has conferred upon me honours ever to be
cherished, never to be forgotten. (Cheers.) I owe
to the Corporation of London the proud position I
hold as its chief citizen, and but for this great and
important body I might still have lived in compara-
tive insignificance. It is a position to be coveted,
to be envied, to be fought for, and to be won. I
have had the good fortune during the past year to
spend many happy hours—hours the pleasant recol-
lection of which I shall carry into my retirement, and
which will inspire me with hope for the future. Gen-
tlemen, we are here members of a great and impor-
tant body, a body that has in past days done great
" suit and service" to the community, and which I
believe is destined to carry on great municipal duties
and functions and great improvements for the corn-
mon good, and to maintain unabated the freedom of
the citizens of London. (Cheers.) There may be
those, perhaps, who decry the Corporation. They
know nothing of its history and less of its working.
There may be those who throw stones at us ; but I
hope they will permit me to tell them that they
themselves live iu glass houses ; that we represent
here an old and valued institution—an institution
to be dearly prized, not only because it is at the
head of all the municipalities of the country, but
because it stands aloof from all political parties, and I
in every act and deed proclaims-the maintenance of
the liberty and independence of the people. I sin-
cerely hope it may flourish ad infonaut, and in tak-
ing my leave of this proud and noble position which
I have had the good fortune to win, I shall carry
with me the recollection of your friendship and en-
couragement, and I hope the Corporation may be in
the future, as it has been in the past, the bulwark of
liberty, and always identified with order and of pro-
gress. (Cheers.)
THE TAXING POWERS OF TILE METROPOLITAN BOARD.

Mr. LOWMAN TAYLOR, having obtained the leave
of the Court to bring forward a matter of great
importance, said it behoved him, as one of the
representatives of the city at the Metropolitan
Board of Works to show the Court and his fellow-
citizens the position they stood in with regard to the
all-important subject of taxation. The citizens of
London, he continued, did not shrink from any lia-
bility, but they did not care to pay more than they
had a right to pay, and he could assure the Court
that an inspection of a document just issued by the
Metropolitan Board of Works would show that, not
only was the city unjustly dealt with in other re-
spects, but that it would have to pay far more than
it ought to be called upon to pay. The rating for
the Metropolitan Board was based upon the county
rates, but as there was no county rate in the city
of London, the Metropolitan Board had previously
taken the rate in the city upon what was the nearest
approximation to the county-rate—namely, the
sewers'-rate, and upon this basis the city had been
taxed for the purpases of the Metropolitan Board.
But there had been a new Act of Parliament, known
as the Union Assessment Act, and under that Act
another body which had been empowered to revalue
the city, had, in the exercise of its powers, raised
the rating of the city to an enormous extent. As he
had anticipated, the Metropolitan Board had seized
this re-assessment as a basis for its rating. In Sep-
tember last, on the report of the ratings being
brought forward, the rating of the City of London,
based on the sewers'-rate of of £14,909, was shown
to produce £18,507. The report, as the Metropo-
litan Board was always anxious to have the largest
possible amount from the City of London, was re-
ferred back to have the Union Assessment rating
substituted for the sewers'-rating, and in October a
report was brought forward recommending that the
sheu l
City of London, instead of beingrated
on
£1,500,000, to speak in round figures, d
rated on £2,109,135, and instead of the city having
to pay £lB,OOO, it would have to pay upwards of
V 6,000, being an excess of nearly £9,000.
To
show one instance of the injustice pursued towards
the city, he would point out that while Middlesex and
Surrey only had re-assessment at long distances of
time, the city had been in the habit of annually add_
ing to its rates, and from 1856 to 1866 it had added
no less than £90,000, and this while Surrey had
only had one re-assessment since the constitution
of the Board. Now, if the Metropolitan Board
did not see that the city was unjustly treated,
then the city itself should take steps to place itself
on a right basis. (Cheers.) There was another
question connected with this matter which was of
importance to the city. Seeing that great works
could not be carried out without money the money
to be spent ought to be represented at the board ;
but this was far from being the case. There were
small places around the metropolis, as St. Luke's
(Middlesex) Holborn, Rotherhithe, and other places,
sending in the whole a large number of members,
while the amount paid by those places was less in
whole than was paid by the city of London, which
on its part only had three representatives. Sir Ben-
jamin Hall, when he brought in the bill which con- I
stituted the Metropolitan Board, could not have

been very favourable to the city, for whereas he only
allowed three members to the 98 parishes—and more

than 98 parishes—for there were unions in the num-
ber—of the city, he allowed the borough of South-
wark to have foui members. The city of London

out not to rest satisfied until it had at least six

members—(cheers)—and he would move that the
dc'euments he produced should be referred to the
Local Government and Taxation Committee, with
instructions to confer with the Sewers Committee,
and report forthwith.
Mr. 11131:1ix seconded the motion.
Mr. Deputy 'BONE asked Mr. Taylor if he was
aware that the Chamberlain had received a precept
for £26,000 to be paid ?
Mr. TAYLOR replied that he had little doubt of
such being the fact.

The motion was carried „1
tiirnously.
Tn
THE SLAUGHTER-HOUSES AT ECATTLE-MARKET.
Mr. Deputy CHAPLIN brought before the notice
n
of the chairman of the Markets' Committee an ad-
vertisement in the City Press, stating that occupants
ofthe slaughter-houses at the Cattle-marketeu- anto,
-
had
ceived notice to quit, and were without an
y hopes
re_
of receiving compensation. The advertisement Was
signed " One who Suffers."
Mr. RI:DEIN, in reply, said the slaughter-houses
were let upon an engagement that certain sanitary
regulations should be carried out by the occupants,
and that the tenancy would expire on six months
notice being given. Certain occupants had not
carried out the engagements of their covenants, and
by their neglect the slaughter-houses had become a
nuisance. More than that, when the rinderpest was

raging these occupants were ordered not to slaughter
diseased cattle ; but, instead of following the in-
struction, they actually sought out such cattle, and
when the cattle which they had received, contrary
both to the orders in Council and to ihe orders of
the Court, were destroyed, the slaughterers had the
effrontery to ask for compensation. (Laughter.)
They had also put the Corporation to the expense
of providing a new system of drains—an expense of
£44o—as it was found that carcases they wished to
conceal were dropped down the drains, half a calf
and half a sheep being actually taken out. This
statement, he conceived, was quite sufficient to show
that the commitee was justified in giving the tenants
notice to quit. (Hear.)

THE JUDGE OF THE SHERIFFS' COURT.
It was moved by Mr. CARRITT, the chairman of
Law, Parliamentary, and City Courts Committee,
that the bye-laws of the Court should be suspended
in order to allow a report of the committee, in refe-
rence to the Judge of the Sheriffs' Court, to be
brought forward. To this several amendments were
proposed, the chief objection to the motion being that
the subject should be entered upon at that sitting.
The amendments were, one after another, rejected,
but the minority, holding their ground and calling
for a division after each amendment, succeeded in
driving off any business for upwards of three hours.
The question at length seemed upon the point of
being settled by the agreement that the report should
be read, but not discussed, when a motion that the
report should not be read under any circumstances
still kept the Court from proceeding. At length
The LORD MAYOR asked the Court not to tax his
powers longer in his then state of weak health, as he
had already sat many hours, and
The Court adjourned.

RAILWAY AND OTHER COMPANIES.

NORTH BRITISH.

The committee of investigation appointed at the
meeting of this company on the 28th of September
have just issued their report. It states that the
company, as now constituted, was a combination
of numerous independent undertakings. Incorpo-
rated in the year 1844 with a main line 58 miles
in length, and an authorised share and loan
capital of £1,000,066, it now comprehended within
its system 781 miles open to traffic, 147 miles
authorised by Parliament, and partly under
construction, an authorised share and loan capital
of £22,210,713, and a gross annual revenue ex-
ceeding £1,250,000. The capital hitherto created
amounted to £15,414,625, the borrowing powers
amounted £5,799,507, the ordinary share capital
was £4,771,230, the participating preference (Edin-
burgh and Glasgow ordinary) capital entitled to a
minimum dividend of 4, per cent. was £2,422,485,
and the other preference stocks of the company re-
present £8,220,910, the priorities of which preference
and participating preference stocks were determined
by the Amalgamation Act of 1865. The lines leased
by the company were the Peebles, Port Carlisle,
Carlisle and Silloth, and Edinburgh and Batligate,
and those worked by the company for payment of a
percentage on their gross traffic receipts were the
St. Andrew's, the Leslie, the Devon Valley, the
Berwickshire, and the Milngavie Railways. He had
satisfaction in reporting the assurance given by their
professional assistants that the borrowing powers of
the company had not been exceeded, but were at
the 31st of July last still available to the extent of
£95,551. They were also certified that the nominal
share capital of the company, so far as issued, was
not in excess of the amount authorised and received
by the company in respect of it. The capital ac-
count had been unduly increased by carrying to it,
directly as well indirectly, sums of large amount on
various accounts. With regard to the revenue, the
accountants had prepared an adjusted account for
the half-year ending 31st of July last, exhibiting
the charges that, according to correct practice and
the usage of other railway companies, should be
placed against revenue. The result was that, after
paying debenture interest due at Whitsunday last,
a free revenue of only £113,591 appeared available
for the payment of the preferential dividends, ac-
cording to their priority, amounting to £208,441.
The additicns to the expenditure entered in the ad-
justed revenue statement consisted of £17,752 roll-
ing stock, £23,558 wages from the 18th to the 31st
of July, £5,073 boilers to ferry steamer, £l,OOO
citadel station at Carlisle, £16,3C0 Parliamentary
expenses, and £22,758 interest on unproductive
works and bank balances, making together
£86,440. The accountants specify,butdo not include
in the expenditure, £39,022 on account of line
renewals. The committee had no hesitation in
expressing their opinion that the large and, in the
case of two half-years, improper accumulation to
" suspense" of relaying expenditure could not
be justified, more particularly when it was noticed
that from 1858 to 1864 the ordinary requirements
of the line had either been imprudently overlooked
or insufficiently attended to. During those years
the total sum expended was £18,125, of which there
was charged against revenue during those five half-
years only £6,000. At July, 1864, the re-laying
could evidently no longer be postponed, and the
following amounts were actually expended, although
in July, 1865, and January, 1866, much more was
debited to the renewal account—January 31, 1865,
£19,594 ; July 31, 1865, £22,582 ; January 31,
1866, £45,227 ; and July 31, 1866, £49,3l4—to-
gether, £136,718. During those half-years there
was charged to revenue only £64,500, but it prac-
tically included £17,418 and £29,256 over debited,
which was in reality ordinary maintenance, making
£46,674 ; so that only £17,826, or less than £4,500
each half-year, had been actually paid out of re-
venue. The above sums do not include £22,342 of
renewal suspense, transferred from the Edinburgh
and Glasgow Company's books at the amalgama-
tion, forming part of the £153,358 at the credit of
the general balance account in July last. At the
general meeting in March, 1865, it was arranged
that
£15,000 should be charged to revenue half-
yearly towards the line renewals then in progress.
At that time the system embraced 485 miles of rail-
way, while it now extended to 781 miles. The
rolling stock had also been unwarrantably relieved
of £17,752. The accountants
(Messrs.
V
Macken-
zie and J. W. Guild) had preparedalsta.
statement
tof
the sums placed to capital or suspense accounts, in-
stead of to revenue, in the 7 half years ending Jan.
31 last. These consisted of amount carried to sur-
plus property, &c., £269,286, and to capital and
other accounts, £80,048, together £349,334 ; deduct
balances prior to July 31, 1862, £45,198, making
the total amount short charged £304,136. This large
accumulation of revenue expenditure, not provided
for, and now disclosed for the first time, formed
one of the chief sources of the financial difficulties
in which the company was placed. The amounts
thus kept out of revenue expenditure had been paid
away in dividends not earned, and the deficiency
thus occasioned bad necessarily been provided for
by advances from bankers and other temporary,
loans, which swelled the present pressing obliga-
tions of the company. An important item of the
company's obligations consisted of preliminary and
parliamentary expenses incurred,2w6hi3oh27duriongf
thisthe
last four years amounted to £0 , .
sum £79,000 was still unpaid, £69,643 was carried
to preliminary and parliamentary expenses, and
£64,070 to construction. The amount incurred
during the last session of Parliament was about
£64,000, of which £32,600 was stated as the cost of
promoting unsuccessful and opposing rival schemes.
Of the latter amount, the accountants, in their ad-
justed revenue account for the last half-year, had
placed one-half, or £16,300, against revenue, which
the committee approved. They state that compli-
cated and elaborated exertions had been made to I
conceal a large amount of expenditure under the
head of suspense accounts, consisting of " line re-
newals," " line suspense," "surplus property,"
octohuenrtwlisser,37,stponed expenditure, " locomotive sus-
pense," " suspense account No. 2," " suspense ac-
more than ready and " contingent account." All these
accounts were in a greater or less degree nothing
provide for chargaesild
carried nor charges
convenient outlets created to
alimaboiulintiteesdotfothzel
,8e75
pant' according
The shouldp present
seproperly
a n d postponedhave
according to the report,
£95,551 unexercised borrowing
pany, and the power to issue
prpeofwereernse:f
stthoeckcoarnmi

'ICI i E SUN, LOLN

share capital, which it had not been found possible
to make available. The large and increasing work-
ing expenses would require the instant attention of
the directors, otherwise any increase of traffic would
be more than absorbed by the increase of expendi-
ture. With regard to the responsibility of the exe-
cutive, the committee state that the system which
the accountants employed by them traced in the
company's books " was not merely one of general
deception of the shareholders, and misrepresentation
of the company's affairs; it was not merely deliberate
falsification of the accounts from year to year, so
as to show to the shareholders and divide among
them a revenue which was not in existence, and was
known not to have been earned ; but it was a
careful and most ingenious fabrication of imaginary
accounts, begun and carried on from time to time
for the purpose of supporting the falsified half yearly
statements of revenue and the general misrepresen-
tation of affairs."

The report of the committee concludes with the
following, under the head " Remedial Measures."

" The systematic concealment thus practised on
the shareholders, and the crisis which has ensued,
renders it absolutely necessary that the management
of the affairs of the company should, without delay,
be placed in the hands of a board possessing the
confidence of the shareholders and the public, so
that such measures may be devised and carried out
as shall restore the character and position of the
company, and insure that its affairs shall in future
be conducted with integrity. As it has been offi-
cially communicated to the committee that the board,
at a meeting held on Oct. 23, resolved to place their
seats individually in the hands of the shareholders,
for the purpose of a new board being elected at the
meeting to be held at Edinburgh on Nov. 14, for
considering this wort, the shareholders will then
have an opportunity of nominating the parties into
whose hands they are prepared to commit their pro-
perty and the future management of the company.
The committee have anxiously considered the best
means of restoring the credit of the company, and
promoting its future success, but the subject is so
beset with delicate and important questions, that it
appears to them the consideration of the subject
should be left to the reconstituted Board of Direc-
tors, and as parliamentary powers for accomplishing
this may be necessary, they recommend that the re-
quisite notices should at once be given, the terms of
which should be so comprehensive as to embrace any
scheme that may be devised and approved by the
shareholders. The committee, while they cannot
but attach blame to the Board for the position of the
company's affairs, leave no hesitation in expressing
their conviction that the conduct of the chairman
has been so unjustifiable as to preclude the possibi-
lity of his being allowed to retain any official position
in the company. They, however, are of opinion
that the services of some of the present directors
may, with advantage, be made available to the com-
pany, should they be willing to act in the present
emergency. The committee consider that the
manager and accountant ought to have communi-
cated to the Board the irregularities carried out in
their department, and ought not to have been par-
ties to the improper entries made in the books, and
that they should at once have taken care that all the
directors were made cognizant of the irregularities
suggested by the chairman. They feel it due to
Mr. Walker, the secretary, to say that the share-
holders are greatly indebted to him for the straight-
forward and independent manner in which he has
acted throughout for the interest of the company.
In conclusion, the Committee desire to express their
sincere sympathy with the shareholders, many of
whom, they are aware, must be greatly incon-
venienced at not receiving their usual dividends,
and disappointed at the results brought out in this
report. Bearing in mind, however, that the present
exceptional and untoward state of matters is attri-
butable to gross mismanagement, which it is hoped
may never again occur, and not to any normal con-
dition of the railway property, the Committee feel
assured that,—relieved from the promotion and
construction of new lines and works under which the
company has laboured for the last few years, exer-
cising strict economy in the expenses of mainten-
ance and management in all departments, a watch-
ful care overtire cultivation of traffic at remunerative
rates, and with unanimity of action on the part of
the shareholders and executive,—the large and
valuable property of the company will be so fos-
tered, and its inherent powers developed, as to prove
that, although some of the shareholders may for a
time be deprived of the return which they calculated
upon from their investment, they are possessed of a
property of great and increasing value, which will
ultimately surmount the difficulties with which it is
at present unfortunately surrounded. The Com-
mittee cannot conclude without exnressing the
obligations they are under to Messrs. Mac-
kenzie and Guild, the accountants employed in
the investigation, without whose valuable assistance,
given at much personal inconvenience, they could
not, within so limited a period, have presented to
the shareholders so complete an exposition of the
company's affairs.

" James White, chairman; G. Graham Mont-
gomery, Peter Clouston, George Harrison,
John Irving, Alex. C. Matthew, George
Robertson, Robert Young."