The Sun.
London, England, 1857-08-26 00:00:00

temperature by which it was then surrounded produced,
as had been anticipated, a distinctly beneficial effect on
the electrical condition of the gutta percha. For a cable
of great length, necessarily limited to a single conductor,
we cannot suggest, on electrical or other grounds, any
improvement upon the form adopted by the company.
"We aro, gentlemen, ysurs faithfully,
" WILDMAN WHITEHOUSE, Electrician.
" *S. F. B. Moans, Company's Electrician on
board the United States' frigate Niagara.
" +W. THOMPSON."

To THE DIRECTORS OF THE ATLANTIC TELEGRAPH

COMPANY.

"Gentlemen,--Sharing as we do moat fully with your-
selves in the disapp-aintment produced by the recent check
experienced in the first attempt to lay the cable across
the Atlantic, we cannot, nevertheless, as Americans,
omit to leave in England some record of the many pleas-
ing recollections and feelings which have been evoked by
sojourning with our brethren on this side of the Atlantic.
"To yourselves we would express our admiration of
the earnestness of purpose and rectitude of intenti, n with
which you appear to us to be animated.
"Towards your countrymen. whose kindness and hos-
pitality during our stay in England has been so un-
bounded and so cordial as to win entirely the respect of
ourselves and the officers under our respective commands,
we entertain the warmest sentiment.., and ,we would de-
sire to convey ta them our best acknowledgments.
"We would especially also, and in the most hearty
manner, make mention of the very high esteem and.re-
gard which the constant and agreeal,le intercourse we
have had with Captain Wainwright, Ma ter-Commander
Noddall. Lientenant Dayman, and all the officers, of her
Majesty's navy engaged in this service has caused U 9 to
feel for them, and the great respect we feel in contem-
plating their talent and ability, and the never tiring
eaergy they have severally displayed in forwarding
_the work we have been engaged in. Their frank
and cordial co-operation has b, en greatly Metro-
intntal in making the endeavour to establish an Atlan-
tic telegraph that which it really should be—a great
international effort.
"In respect to Lieut. Dayman, it is due that in addi-
tion we should make special mention of the very great
advantage that has been derived to the enterprise by tie
careful and admirable manner in which his labour of
making the soundings and running the circle sailing line
across the Atlantic has been performed.
" We can only, in conclusion, express our most earnest
and cordial hope that your great work, the perfect pi ac-
ticability of which (in spite of the temporary check you
have experienced) is now fully established, will be com-
pletely successful whenever your next attempt is made.
—We remain, gentlemen, your obedient sfrvants,
"JOSHUA R. SANDS,
Captain of the United States' frigate Sw quehanna.
"WILLIAM L. HUDSON,

-
Captain of the United States' frigate. Niagara.
"Fenton's Hotel, London, Aug. 24."

* Inventor of the Morse system of telegraph so generally
used in Aumnioa and on the continent of Europe.)
1 Professor of Natural Philosophy, Glasgow College.

BAIL WAY INTELLIGENCE.

GREAT NIKITITERN.
The committee of shareholders appointed at the half-
yearly meeting of the company on the 12th of March
have issued their report. It is signed by Messrs. C. F.
Giesler, chairman, Wm. Maline, and' E. T. Waters.
They state that they had received every assistance which
the offisera of the company had it in their power to give,
both as regarded futnishing accounts and the straight-,
forward manner in which they gave their evidence.
These remarks apply not only to those connected with
King's-cross, but all the stations on the line visited by
the committee. The Redpath frauds are reported on
by the committee as follows :
" In consequence of the arrangement in 1846 for the
constitution of the Great Northern Railway Company, by
joining two projected companies fighting for the bill to
autkorise a line of railway from Loudon to York, it was
agreed that the secretaries of the two companies should be
retained ; that Mr. Mowatt should continuo the office of
secretary, and Mr. Clark should undertake that of regis-
trar. Shortly afterwards Leopold Redpath was engaged
as chief clerk in the registration deportment under Mr.
Clark. It appears from the examination of the registers
that the first frawl of 2031. was committed between Feb-
ruary and August, 1818. The amount increased half-
yearly, until in August, 1850, it had reached the sum
of 16,875/. At this period, the shares being all paid up
or forfeited for non-payment of calls the accountant ap-
plied to the registration department for a statement of the
capital to adjust the accounts. In answer to the applica-
tion, he received an answer from Redpath, fixing the
amount at 4,808,225/. ; and upon this he adjusted' his
account by the short memorandum furnished by Redpath,
without comparing his books with the registers. This
amount was increased in DecemberplBs2, by a trausCer of
212/. 109. preference stock to the original stock. linking
the amount 4,808,4351. 1P
!` If at this period, eillifso- ther subsequent date, the
vgisters had been compared with the accountant's books,
the frauds must have been discovered, inasmuch as the
register pre,.ented to the shareholders for sealing at the
half-yearly meotinga did not agree with the books of the
company, but this was never clone. As the capital in-
creased by the creation of the various preference stocks,
the frauds extended to them, and also to the guaranteed
East Lincolnshire stock ; baying thus increased half-yearly,
as is shown by the examination of the registration, until the
fraudulent stock issued by Redpath amounted to 219,1,32/.
10s. This loss has been increase Iby 21,299/. Gs. 9'. for
payment of the dividends on the fraudulent stock, making
a total of 240,9311. 16s. 91.
" In August, 1854, it appears that the warrants for divi-
dends which had been paid by the bankers exceeded in
amount the sum due on the various it )eks of the company.
This fact was communicated to the auditors by the ac-
countant, notwithstanding which the registers were not
checked, but a communication was male to Redpath on
the subject, who retorted upon the accountant that the
cause lay with him ; and still the auditors issued the half-
yearly certificate under their hands of the correctness of
the accounts, althougli thus warned that such was not the
case. The reason assigned by one of thorn was, he thought
it might create unnecessary alarm' if mentioned to the
shareholders. - _

" The accountant had been aware of a discrepancy in '
August 1854, but it was not until April, 1.855, that it was
made known to the secretary, although he signed and
isssued the dividend warrants to the shareholders.
" The mode of proceeding was this :—" The warrants
having been prepared in the registrar's department were
sant to the Reeretary in bundles, without a list or certi.i-
cate, who signed them without any:examination by himself
or any of his staff, and without noting even the amount,
so that had he been required to state on the following day
what sums he had drawn from the banker there was no
record to give the information. The accountant states
that there were no moans of discovering an o7er-issne, as
there was no check until the draughts we paid and returned
by the banker. The auditors declare that it was no part
of their duty to audit either the registers or the dividend
warrants until the latter were paid and came back to the

accountant's office.
The manner of issuing transfers was as follows :--
" It was the duty of the registrar to prepare the transfer
and sign the same, bnt this was not valid until counter-
signed by the secretary. For this purpose a stamp was
adopted, but it appears that this stamp was not kept under
the control of the secretary, although it represented his
signature, and the deed was of no value until this was
applied. The stamp was placed in the registration office,
and was used by any of the clerks as a mere matter of course,
the secretary knowing nothing of the matter, although it
represented his signature, and was evidently intended as a
check on the registrar; and thus this vast property was
loft at the mercy of the man who bet: eyed his trust.
" Thus it appears that--
"1. No committee of directors bad any supervision
over this important department, nor did they (the direc-
tors), individually or otherwise, examine or cause any ex-
amination to insure thatthe proper checks were maintained.
" When Podpath became registrar the whole duties of
the office were loft to him and his clerks, without super-
vision or check of any kind.
"3. The -auditors, although they were aware in 1854
that payments were made in accordance with the amoun's
due on dividends, continued to sign the accounts issued to
the shareholders, declaring them to bo correct.
"The secretary signed warrants for payments for large
sums, not knowing even the amount for which ho was
issuing those warrants, and without instituting any ex-
amination or check of any description ; nor was the
amount upon which dividends were issued over compared
with the authorised capital upon which they were due.
" 5. As the accountant had no list of the warrants issued
ho only knew the amount of those which had been paid by
the bankers, either by the pass-book or the cancelled
warrants returned after payment."
With regard to the balance sheet for the half-year ending
December 31, 1856, the committee state they believe
that it exhibits a sound financial position, that the large
amount of cash in hand bearing interest will be viewed
with satisfaction, that the debts of the company are good,
and that the over-payments of dividend, amounting to
9,3621., are to be written off. A loss would accrue of
15,8451. if the shares held by the company in other lines
were realized at the market value. In the examination
of the disbursements on capital account it was found
that many items placed to capital account appealed to
belong to revenue, the number being considerable, and
many of them small in amount. In objecting to a half-
year's account of the engineer's department, amounting
to 10,6031 , the committee found items to the amount of
6,845 f. which they consider as belonging to revenue.
They state that sufficient has been seen to prove that so
long as the capital account is lett open items of every
description are carried to it at the option of the directors
nominally, but really by the servants of the company ;
this swells the apparent profits, and thus the shareholders
are kept in ignorance of the real amount of the revenue
of the company. As a general rule the committee are
of opinion that on all completed lines the capital account
should be closed, and every expenditure on those lines
should be borne by revenue.
The committee consider that the passenger traffic is
well managed on the Great Northern, and that theftets
sre as good as on other lines, and generally s ffio
The committee recommend that a
ervill the fund
as
finance
of the
company should be under the sup two
f
t
committee, and all checks be signed by wo°directors.