The Sun.
London, England, 1850-08-22 00:00:00

TILE SUN,

after having maturely considered it they are of opinion
that it is not for the interest of the prop: eters that they
should lease the working of their line. The directors
have, therefore, appointed Mr. John V. Gooch, in e or
the South-Western Railway, as superintendent of the
locomotive department. It is the painful duty of the
directors to report that, ow.ng to ce•cumstances whicn
arose on inquir ng into the payments formerly made
for land and other purposes, through Mr. Duncan,
the late solicitor to the company, they found it neces-
sary to direct the accountants strictly to examine all
those transactions; and the result of these inquiries, as
reported by Messrs. Quilter and Company, has been
that various sums of money, for which cheques had
been given to Mr. Duncan, were not paid by him for
the purposes intended; that other sums had been
charged and paid twice over; and that certain payments
reported to have been made, had not been made. Mr.
Duncan having delivered, and having been paid, his
Parliamentary acconet3 to a point, by the former direc-
tors, according to a scale of charges agreed upon, he has
since also demanded to have additional remuneration for
the same services, on the ground that the scale agreed
upon was below the usual charges, and that he has not
had the amount of business he was led to expect wt.en
the scale was fixed. A copy of the accountants' report
was given to Mr. Duncan, aed an explanation required.
The answer received contained an offer of resignation,
which the directors accepted; and they forthwith
sought the assistance cf Messrs. Creel der and Mae nerd,
who are at present acting as solicitors to the company,
and by whose advice they are and will be guided in any
proceedings which may take place. It will be remem-
bered that, at the time the present directors toe k office,
Mr. Duncan continued to conduct the law business of
the company, although he lad previously tendered his
resignation. The well known talent of Mr. Duncan, the
intimate knowledge he poste-Bed of all the company's
affairs, and the zeal and industry be displayed in their
r-ervice, during a period of transition, when there was
also much dispute and litigation, rendered it prudent
and necessary to request him to withdraw his resigna-
tion, and it was not until time and opportunity had been
found to search int) pest transaction-, that the present
directors could obtain knowledge of there errors. In
concluding this report, the directors ventute to state
their hope arid belief that, difficult and harrasaing as
their duties have been, and still are, they shall, if they
continue to possess the confidence and support of the
proprietors, be able substantially to improve the condi-
tion and prospects of the company, and to lessen the
working expenses. In so doing they would repeat their
resolution, more than once expressed, to endeavour, by
conciliatory means, and by co-operation with neighbeur-
ing railways, rather than by competition with them, to
secure to this company and to the great system of rail-
ways in the eastern division of England, the traffic and
revenue which they ought to possess and retain.
" EDWARD L. BETTS, Chairman."
The following is the Auditofs' report :
" 57, Coleman-street, Aug. 9, 1850.
" Gentlemen,—We regret that, notwithstanding the
utmost diligence and perseverance, we find ourselves still
unable to make a complete report of the result of our
investigation and analysis of the capital expenditure of
the Eastern Counties Railway Company.
" Ihe examination has a twofold object: namely, the
ascertainment of the integrity of the expenditure
charged; and the production of an accurate and lucid
statement of it, in order to the due exhibition, under
appropriate heads, of the cost of the various lines and
works executed.
" The extent and multifarious character of the trans-
' actions which constitute the subject-matter of investiga-
tion would alone render much time and gri at labour
necessary iu order to its satistactory completion; but the
difficulties we have met with in the conduct of our in-
quiries have not been simply those which necessarily
pertain to every operation of the like nature; we have
had to act upon contused, imperfect, and erroneous ac-
counts, only partially supported or explained by vouchers,
while the vouchers that could be found were ?roads-
couely heaped together without order or arrangement;
added to which there existed a general want of uni-
formity in the mode of treating various parts of the same
t r similar accounts at different periods.
" lii this state (f circumstances we found it itelispens-
ably necessary, in order to carry on the examination in-
telligibly ate' with certainty. to establish supplemental
beaks; and, in effect, to re form the entire accounts fir
a considerable period, opening a personal account with
each individual recipient of the company's cash, any al-
lowing no credits to such recipients in discharge of cash
paid to them, except upon the authority of bills, in-
voices, certificates, or other adequ .te vouchers.
" The deficiency of vouchers has thus proved a fruit-
ful source of difficulty and delay, leading unavoidably to
much corrospoedence and personal discussion with par-
ties, in order to ontain from them the information which
the vouchers would hare afforded.
" Although to the causes thus glanced at is to be
mainly referred the non-termination of this inquiry, it is
to be borne in mind, that in a idition to the continued
investigation of the capital expenditure, we have been
called upon daring the half year to perform certain
other special services connected with, or arising out
of, the accounts, such as extensive calculations to
det.-rmine the amount earned by the company's
traffic over each particular section of the. line, with a
view to the formation of a basis whereon to touted a re-
vision of the present system of rating rails ays for pa-
reale' purposes, she preparation of the voluminous re-
turn made to the House ut Lords in answer to the order
obtained by Lord Brougham and other matters.
" We may also mention that the examination of the
important stews of Lod purchases and compensation
nas been attended with peculiar difficulties; the course
ef our examination into these- matters in connexion with
the pecuniary transactions conducted through the agency
of the late solicitor to the company, made clear the ne-
cessity, in order to do justice to the interests of the
snarrholdere, of subjecting the whole of those transac-
tions ti a most rigorous scrutiny.
" The meagre and unsatisfactory state of the infor-
mation winch we teund existing in relation to this
branch of the inquiry had been an especial cause of
delay; but hating sire telt, made a report to you upon
it, we do not feet it to be necessary now to refer to
the subject, turther than to state that we are still pur-
suing it; and that since the date of the report atlsded
to, we have found further sums to be accounted for by
Mr. Duncan, which, together with those reported, make
a present totsl of about 30,0001. to be accounted for by
that gentleman. The items of which that total is com-
posed occur at various dates during the years 1845,
1846, 1847, aed 1848.
" Independently ut the advantages which must necei-
sarily result from this extensive examination, in the
sense of a welt informed conviction produced by it, of the
truthfulness of the accounts ahrn finally settled, and the
1 were intelligible sod comprehensive view which it will
have been the means of presenting of the character and
, location of the objects to which the company's capital
has been a; plied, it has already been productive of
direct pecuniary b, nefit in the discovery and setting
right of errors to the extent of upwards of 6,0001., ex-
clusive of the important result of a similar character
arising out of the examination of the transactions and
proceedings of the late solicitor.—We remain, gentle-
mere your most obedient servants,
" QUILTER, BALL, and Co.
" To the Chairman and Directors of the
Etertern Counties Railway."
The CHAIRMAN said in that room there was gene-
rally a great oiversity of opinion, and he trusted to-
day they should gain a better character for order than
they had hitherto obtained.—(llear, hear.) The very
great difficulties that the directors had experienced in
getting correct intormation of the company's affairs,
and the want of di,cipline they had found in every
iiepartment of their service, had rendered it almost
impossible to carry out those reforms which tbey all
telt to be necessary, end now more than ever.—(Hear,
hear) The must important point, which was now so
much before the public, and in which the shareholders
*ere all so deeply interested, was the locomotive de-
partment of their railway. This half year tenders
had been received from most substantial gentlemen
who were willing to take the working of the line. at
a very considerable saving to the shareholders. The
directors were satisfied their affairs were based on
correct date, and it had been found a difficult ques-
tion to decide how the proposed saving was to be
carried out. It bad been thought desirable by
the directors to advertise for a suitable locomotive
superintendent, and out of seventy or eighty appli-
cants they ha.l chosen Mr. John Goocb.—(Cheers and
hisst s.) That gentleman bad come to the directors
with the highest testimonials from every leading en-
gineer of this country ; and from the knowledge
they had of his private character and his professional
experience the directors were satisfied they bad
taken a right step in placing Mr. Gooch at the-head
of the locomotive department.—(Hear, hear, and
disapprobation.) With respect to the strike
among the engine-drivers, the drivers complained
that they were not f irly beard. The men
were asked to wait until the directors had ex-
amined into the causes of their complaints. He
(the Chairman) asked Mr. Goocb, with a view to that
inquiry, to state to aim all the fines that had been
imposed on the men. He did so ; but in the interim
every man of them resigned.—(Cries of " Hear,
hear,"
and " Shame.") Under the circum-
stances
the t he
resignation direer
sof th e men.consider He
considered it prudent to
accept
(the Chair-
man)every)
one
ed 0
fa ntohteh efirn
fines
t ht haet
hdai rde cbteoerns himadpeieneve,staiegatede
told the
Imi unposedee
be
i.t i nhge , a
whichr a.
)s a prac
oughtticalnot
de mat
batneo
e,
nthb a
the
eedt
bhee
wanter
ne d
wi
mhao -
n:tPsf
stad• fife(
discipline among the men at Stratford, that it had
resulted in the loss of almost the whole
dividend.—(Hear, hear.) The men were generally
fined for nut reporting instances of mischief which
they had done, whether they bad any control over
them or not. (The lion. Gentleman here related
several instances of misconduct on the part of the
mete) Another question bgd been mooted as to
whether these fines had been returned to the
men. The fact was, that when the men
came to be paid they gave the directors
to understand that they intended to test the
lega,ity of the fines which bad been imposed, :and
the directors, not wishing to insist on the fines, re-
mitted them.—(Hear, hear.) On Thursday last the
directors commenced with their new men on
the Norfolk district, and, with the exception
of a trifling shaking which one of the passenger
trains had, there had been no accident on the lines ;
and although a great number of strange men had been
brought together, they were keeping time better than
he (the Chairman) ever could have expected.—
(Cheers) the Honourable Gentleman then pro-
ceeded to detail several malicious acts on the part of

, -

LONDON,

the drivers previously to le.ving the company's em-
ploy, such as pu•t:ng soap into the engine-boilers, of
which it was difficult To get rid, and tallow grease
and sand into the axle-boxes of the carriages
(A Voice—" Don't take them back.") lie (dab Chlir-

%--
Ina! ) held in his hand the character ofe very man
who had assisted the company on this occasion. He
had los,ked through every one of those characters,
and there Ives not a man on the line at this time
who was not equal to his duties ; there were seventy-
five of them, and eighteen more of a first-rate
character were now on their way to join
the Eastern Counties line, from the north and south.
The directors did not intend to reduce the wages of
the drivers.—(Hear, hear.) They were only de-
sirous of exercising such econonomy in the manage-
ment of the line as any man would wish to do
in his own private business.—(Loud cheers.)
With respect to the accounts, although the directors
had not been able to effect much saving, whet there
was was in the right direction. The receipts per
mile in the corresponding half-year with this
were 1,2361. ; this year they were 1,240/. ;
and while their working expenses of the
corresponding 1;310 ear were 6.221, this year they.
were 5981 (Hear, hear.)- With respect to the re-
newal fund the directors had thought it right to
being it down at once to the point at which
they thought it prudent to continue it. The
capital account stood exactly in the same posi-
tion as they placed it last half-year, one al-
though Mr. Duncatl's eefalcatione had occurred,
the directors had the great satisfaction of telling
the meeting the margin they then took was
still amply sufficient to cover them. and there would
be no increase on that account. The irregularities of
Mr. Duncan took place before the present board came
into office, and it was a matter over which they had no
control. The Norfolk estimate of this half-year was any -
thing but sati,factory.—(Hear, hear.) Tney had
upon the Eastern Union line an apparent loss of
revenue, compared with the corresponding half-year,
of 20,0001.—that was on the actual revenue on that
line, and there had been an increase in the mileage
which had been adopted, more fully to develepe
the resources of the district, and possibly that had
been a mistake. The Hon. Gentleman concluded,
atter some farther remarks, by moving the adoption
of the report and accounts.
Mr. Thomas WOODLEY, a grocer at Cambridge,
was grieved to say he stood there as the representa-
tive of a deceased friend, who had left him a very nice
legacy in the Eastern Union Reilway.— (Laughter.)
He would ask why, when the Cambridge people took
a day ticket from Cambridge to London for 153., they
should have Ig. 9.1. tacked to it? Where was the
justice or policy of such a charge ?—(Laughter.)
IVith respect to the combination among the drivers,
he thought some blame attached to the directors for
not having shown the men a little more courtesy.—
(Loud cries of " No, no.") The speaker proceeded
to recur to the grievance of "one and nioepence,"
but the proposition was received with bursts of
laughter.
The CHAIRMAN said if the gentleman would call at
1 the office, he would give him every satisfaction in re-
lation to his complaint.
Mr. W OODLEY, amid a scene of great confusion,
attempted still to dilate on his complaint. Loud
cries of "Turn him out" resounded from all parts of
the room ' • and Mr. Woodley eventually oat down
amid loud cheers.
Dr. RILEY, of Ware, had attended there at much
personal loss, and until he arrived in London he was
totally ignorant that the report of the directors was
in circulation. He contended that it was a great in-
convenience to the shareholders that they had not had
the report in their hands till just immediately before
the hour of meeting. He asked the directors to give
a reason for so bad an arrangement.— (Uproar.)
Mr. N..THAN complained that the directors had
raised their fares on the Colchester line, to the pre-
, judice of the Eastern Union line.
'Toe CHAIRMAN said the directors had endeavoured
to raise the fares at every point legitimately to the
highest limit, where there was not competition.
Mr. NATHAN asked if the directors were going to
bring the .I.\ orfu k line before Patliameut again ?
The CHAIRMAN was understood to reply in the ne-
gative, unless the shareholders should determine
otherwise.
Mr. NATHAN was proceeding, on the authority of
an anonymeus letter, to question some of the items
in the accounts, when
Mr. ELLIC E, a director, intimated that that was not
question which could come fairly before that meeting;
and asked Mr. Nathan if it was prudent to read an
anonymous letter to such a meeting as that ?
Mr. NATHAN, waiving the question, proceeded to
say that the directors ought to do their duty by their
men, but he would rather lose his dividend than see
any one of the drivers who had struck do an unjust
thing to the directors, or the directors do an unjust
thing to the men.—(Cheers.)
Mr. Cox, of the tiarrow-road, said he was on the
side—if he was on any side—of the engine-men,
because they were the weakest. It was highly im-
proper that any body of men should ever be in the
power of those who employed them. lie was sorry to
see in the Times—(lronical cries cf "Hear, hear")—
a leaning to the conspiracy on the part of the men.
The question for the meeting, however, was whether
the men were in the right or the wrong. He denied
the statement made by the men that the directors
had said that they might go about their business on
the following Monday morning.—(Hear, hear.) It
was the men who sent in their own resignations.—
(Hear, hear and cheers.) He contended that the
Times proprietors themselves would not tolerate such
a combination among their own men.—(Hear, hear.)
There was an example on record where, on such a
combination showing itself among the men at the
Times office, the paper was one morning, through the
address of the late Mr. Walters, printed by steam, to
the great amazement of them all.
The CHAIRMAN, in reply to a question put by the
preceding speaker, said the directors would not gain
by ehut:ing up the Enfield line, but they gained
very little by keeping it open.
Mr. Box asked under what agreement the Direc•
tors were acting with the Norfolk Company ?
The CHAIRMAN said there was no agreement of
amalgamation, but there was a working agreement
entered into in that room on the 2,1 May, 1848, under
seal and confirmed by the shareholders.
Mr. Box submitted that by reason of that amalga-,
mation the shareholders had sustained considerable
loss, and that but for it they would now have a divi-
dend of 4s. instead of 21. a share.—(Hear.)
Mr. HowEs attempted to show from the accounts
that a loss of something like 13,0001. during the last
year bad resulted from the continuation of the Nor-
fidk Amalgametion. He asked whether the agree-
ment with the Norfolk Company was of such a cha-
racter that they could, if they thought proper, repu-
diate it to-morrow ? (Cries of "No, nu.")
The CHAIRMAN said the agreement had been drawn
up by counsel, and the directors bad been advised by
Ales,,rs. Talbot and Hope that it could not be set

aside.
Mr. Howes was sorry to hear it. He hoped, how-
ever, that this amalgamation would not be continued
at a loss to the company any longer than could pos
sibly be avoided.—(llear.)
Mr. W. PRICE said any agreement, working agree-
ment or otherwise, which should alter the accounts of
the company, wi.hout having first been sanctioned by
Act of Parliament, was illegal, and could not be jus-
tified. He made his solemn protest against the faith-
fulness o f the printed accounts of the company, in
that they were not rendered precisely in the form re-
quired by the Act of Parliament.
The CHAIRMAN assured the meeting of the perfect
legality of the agreement.
Mr. MCLAURIN admitted that the accounts ren-
dered with respect to the Norfolk Railway Company
were correct, as far as those accounts went ; but he
contended theie should be no distinction made be-
tween the working expenses on the 'Norfolk lire and
those on the Eastern Ccunties line, which had been
made by Mr. Quilter in making up the accounts.
The CHAIRMAN said, everything that could be kept
separate had been kept separate cn the two lines.
Mr. MCLAURIN went in.() a statement of figurer,
from which he sought to deduce that the working
expenses of this line were unnecessary, extravagant,
and enormous—(Hear, hear)—and that it only re-
quired economical and prudent management on the
part of the directors to make this company one of the
finest and most remunerative of any in the
kingdom.—( Hear, hear.)
Mr. GILBERTS, of Hertford, said it gave him pain
'sheokri ne gr
to hear the acts of the directors questioned in the way
they were, without those gentlemen offering any de-
fence or explanation of themselves. lie complained
that there had been fictitious entries of shares in the
share list in several instances, and that that had been
done with the knowledge of some of the directors.
Mr. BeGsnew, M.P., defended the conduct of
the directors with reference to the Norfolk amalga-
mation, and the legality of the existing agreement.
ocaihnefyla:tsahri,
grieyruimfesbeetarcierecdtrnniy):: meeting
vitbhoei itenhhge
mightat l
accountant.
un nf
aitnr.
Mr. Goocu, of Birmingham, deprecated the time
and
be
dil
ye
companynsscwavi,:,,erad-s
oofutc
theirr ieros 21,
jaen(dt they
ccollectively,
ectoiNuel
ldy
,nct
and ofit ea;
necestaty, therefore, to delegate the tnamgement to
a smaller body of individuals. It was, however, the
duty of the shareholders to see that the directors, in
whom that trust was reposed, did their duty. They
must to a great extent repose confidence in their
directors, and assist them in carrying out the legiti-
mate purposes of the company, until they found out
that they were dishonest and incapahle.—(Cheers.)
The CHAIRMAN then put the resolution, which he
declared to be carried unanimously.
Mr. McLauatet moved that the abstract of the
Agreement existing between this company and the
Norfolk Railway Company, be made out by the soli-
, citors of this company, • and that the same be printed