The Sun.
London, England, 1850-01-09 00:00:00

submitting it to a general meeting of shareholders ;
but they were not the men to take such a step. He
would now state generally the terms of the agree-
ment, and then the document might be read in extenso
if they wished it.—(llear.) The indenture bore date
the 7th of January, 1850, between three of the direc-
tors of the company on the one part—Mr. Love, Mr.
M'Laren, and hiFnselt—and Mr. Hudson on the
other. It recited that the York, Newcastle, and
Berwick Company was formed in 1847, by the amal-
gamation of several companies; that Mr. Hudson
acted as chairman of the directors up to 1849 ; that in
May of that year a committee was appointed to
examine the accounts, and that they made
several reports, containing allegations that
mor:ey had been taken from the coffers of the
company, and applied to the purchase of 2,345
shares in the Sunderland Dock Company ; that other
moneys had been received by Mr. Hudson, produced
by the sale of certain shares and scrip—by the
purchase of iron rails; that Mr. Hudson disputed his
liability to account for these sums, and had not
accounted for them, and that bills in equity had been
filed accordingly. It then went on to say that nego-
tiations wers going into to compromise these matters ;
and that Mr. Hudson, to avoid litigation, but without
admitting his liability,had agreed to settle the matters
on the following terms :—That so soon as a resolution
confirming this deed was passed by a general meeting
of the shareholders, and a release was executed to
him, Mr. Hudson agreed to pay the SUM of 50,0001.
in full satisfaction of all claims against him by the
company, except as concerning the 2,365 shares in
the Sunderland Docks. With respect to this latter
question Mr_ Hudson' undertook to produce a receipt
from the Sunderland Dock Company for the
sum of 15,0001., which, with the 60,0001. already
paid, would be a payment in full for the 3,000
shares this company had consented to take in the
docks, and further to pay the sum of 26,0371. 10s. in
respect of 2,345 shares in the docks, which Mr. Hudson
had taken in the name of the committee without their
consent, and paid upon condition of these 2,345 shares
being transferred to him. It then went on to provide
that this company should consent that the bills in
equity should be dismissed on payment of the money.
The substance, therefore, of the agreement was this—
that in respect of all matters for which bills in equity
were to be filed this company should receive the sum
of 50,0001.; and the 41,000/. which had been paid
out of the funds of this company for 2,345 shares of
the Sunderland Docks was to be refunded to this
company, 15,0001. of it being taken to pay the last
instalment due on the 3,000 shares they had agreed
to take, and that the remaining 26,039/. 10s. be paid
to the company. In the meantime these shares, which
now stood in the name of Mr. Hudson and some of
his friends, were to be transferred to the directors as
security for the payment of the money; and in still
further security the directors were to have placed in
their hands the title-deeds of unencumbered property,
which together with the abates the directors
believed would secure to the company the
payment of the money. Besides these sums
there were other claims of the company on
Mr. Hudson, which were to be paid in full. There
was a note of hand which he owed the company
which was nearly due; there were calls due on
certain shares, all of which were to be paid up; and
the dividends which stood due to Mr. Hudson on a
great number of shares would be given up, and not
claimed; so that the shareholders would perceive the
amount of money now to be received from Mr.
Hudson exceeded the sum of 100,0001. He ought
also to remind the shareholders that during the past
year the labours of the two committees had brought
into the coffers of the company upwards of 90,0001.,
and the sums now to be received would exceed
100,000/. more.—(Hear, hear.) He thought he had
now stated all that was necessary to bring the matter
fairly under their notice, and he repeated that the
subject had occasioned the directors the greatest
anxiety and care ; and as the result of their delibera-
tions they laid before the shareholders this plan as one
which they could conscientiously recommend for their
adoption. He therefore proposed that this indenture
and deed be confirmed, and that the directors be
authorised to take all the necessary steps to carry out
its stipulations.
Mr. LoTE seconded the motion.
The CHAIRMAN said he had forgotten to add that
Mr. Hudson was to pay all expenses incurred in the
proceedings.
Mr. WYLIE thought it was unfair that the share-
wouldt
directors,To
ecn not
questionA be
ea
wt:iloAl:Nre i
xarld t je'3id, c
withoutuL generalpttot
upon
mu
himselfea eltii
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brother-ht-
that postponement were made, it would jeopardise
the whole proceedings.
Mr. WYLIE said he must then denounce this as the
most atrocious proceeding that had ever emanated
from any board of directors.—(Hear, hear.) He
compromisewondr
withat they should dare
amanwhom
they toad
all
stigmatised
as the most dishonest man in the country. He had
state d that this matter had occupied much of their
time and attention. And were the shareholders to
have no time for consideration whatever? Why,
what was.this but the old system of railway dicta-
tion come back again ?—(Loud cries of "Hear,
hear," from Mr. Ramsay.) It appeared from this
agreement that they were to receive from Mr. Hud-
son the sum of 50,000/. on behalf of all the subjects,
hut the Sunderland Dock Company. Why all the
subjects were not enumerated. He believed that in

the case of the Newcastle and Berwick Company
alone, Mr. Hudson had carried off about 140,000/. of
ill gotten gain, and he remembered,Ewhen summing
them up some time ago, he made the whole money of
which they had been defrauded something above
200,0001.—(Hear.) He wished to know from the
directors how much they claimed from Mr. Hudson
altogether.
Mr. RAMSAY—Hear, hear—Tell us what we claim
against him.
The CHAIRMAN said they did not know the exact
sum. Mr. Wylie called upon him to explain how
much he received, but he had not yet put in his
answers.
Mr. WYLIE—Then you compound for an uncer-
tain by taking a certain sum. He thought this was
almost compounding a felony.
Mr. RAMSEY—Compounding a felony Yes, that's
what it is.—(Laughter and cheers.)
Mr. WYLIE was determined to move a special
amendment for a committee of investigation to inquire
into the agreement.
The CHAIRMAN—What! a committee of investi-
gation. Are your directors not to have credit for
honesty of purpose ? We have not investigated the
matter, and surely you will give us credit for honesty
and sincerity of purpose.—(Cheers.)
Mr. WYLIE required the chairman's protection,
net his interruption. He thought a committee was
the only course to be adopted, and if he had not been
one of the auditors he would have moved that it be
refs rred to them. The directors declared that they
were not at liberty to enter into all the particulars of
this compromise. Well, that was just a reason for
its being referred to a special committee.—(Hear,
hear.) He would certainly move that the matter be
postponed to the next meeting, and if the matter were
carried against him, he pledged himself that the mat-
ter should not rest there. He would sign a requisition
for another general meeting to re•consider the matter,
and he was prepared to sign a petition to the House
of Commons for them to investigate the matter, and
praying that, if Mr. Hudson were found guilty, he
might be expelled from the House.
Mr. RAMSEY—Hear, hear, and I'll sign it.
Mr. STACK seconded the amendment. The very
fact that they had squeezed 90,000/. out of such a
hard-fisted fellow as George Hudson, only showed
that, by a little more pressure, they could get a great
deal more. lie pathetically pat it the Chairman
whether, in this inclement weather, and with such a
small body of shareholders, they ought to decide upon
a question so vitally affecting their interests.
Mr. M`Lertim said the directors did not claim to
themselves any merit for the money recovered during
the past year, but the Chairman had stated it as a
matter of fact that it was recovered. As to the pro-
posed agreement, though the matter had been so
clearly put by the Chairman, it did not seem to be
quite understood. The substance of it was this—
that 50,0001. was to be paid out and out by Mr.
Hudson, and as he had taken 41,0001. out of the
funds of this company to pay for dock shares, the
agreement was, that 41,0001. should be restored by a
payment in cash of 26,0001. and by a receipt for
15,0001., which he was to produce from the Dock
Commissioners, in payment of the full instalments on
the 3,000 shares which this company had agreed to
take in the docks. With respect to the appointment
of a special committee to consider this matter, he
might state that the effect of Mr. Wylie's suggestion
had been already met, because the first thing the new
directors did was, to appoint four members of the
committee of investigation and their secretary, now
chairman of the company,-to take all the steps necessary
in the negotiation. Now that committee had been
specially appointed by the shareholders for the purpose
of conducting the investigation, and they bad carried
it on up to within these few days. In fact the nego-
tiation was only brought before the bOard of directors
last night, when they were not quite completed, but
1 leaky so; aad in point of feet low of the minor