The Sun.
London, England, 1850-09-10 00:00:00

LITERATURE.

I\IR. IIUDSON'S EVIDENCE AT YORK.
1. "A Revised and Complete Report of the Recent
Trial for Libel, Richardson v. Wodson, pub-
lisher of The Yorkshircman ;' with Preliminary
Observations, 6-c." London : C. Mitchell, 1850.
2. " Report of the Evidence of George Hudson, Esq ,
M.P., on the Trial of the Cause, Richardson
v. Wodson, York Summer Assizes, 1850.
Edital by a Barrister." London, John Hearne,
Strand, 1850.
[SECOND NOTICE.]
What would England be without Speculation ? If
the man who was possessed of capital,—like the timid
possessor of the talent who hid in a napkin the money
confided to his charge, end buried it in the earth,—
were to hoard his treasure, ins:end of boldly hazard-
ing it in a mercantile adventure, running the risk in-
deed of loss, but confident in his own experience,
foresight, sound calculation, and good fortune, what
w, uld become of trade ? The hope of profit is the
life and soul of that commerce which is the strength of
this nation, and where the spirit of speculative enter-
prise is regulated by prudence, it is productive cf
many important advanteges to the commonwealth—
circulating capital and multiplying employment. The
merchat t, who has experitnc( d the disasters of; and
who yet shudders at, the perils ( f the see, still courage-
ously charters a ship with a valuable cargo for a fo-
reign port :

" rnox reficit rates
Quassas, inducilis pauperism pati."
One of that class of men described by Adam Smith
as those " whose trade is not to do anything, but to
observe everything," lives at Liverpool. Judging
by his experience and by his calculations, cotton in
a short time will advance rapidly in price. He has
the most accurate information as to stocks and crops;
the signs of the times (as he reads them) are brighten-
ing; there will be, he thinks, a few months hence,
an extraordinary expansion of trade, and cotton will
then be in demand. It is true that nobody, else thinks
so ;—the markets are flat and the prices are low,
and no one speaks or acts in anticipation of a rise.
But he is confident in his own judgment. Now
is the time to speculate He buys some thousand
bales of cotton at the market price ;—his friends are
anxious about him ;—jf prices fall he will suffer fear-
fully ;—but they rise ; he reaps the reward of his saga-
city, and realises a large profit I Another merchant
anticipates a scarcity of food; he contracts for a
supply of 10,000 quarters of wheat in London at the
current price; when the wheat arrives in port the price
has advanced 10s. a quarter. He sells it in the ship
at that advance, and reaps 5,0001. by merely signing
the bills of lading! A third capitalist invests largely
in the Three per Cents. at 91i, and gains a golden
harvest by their springing up to 96. None but a
sure-footed man of business, well and carefully
trained, of long experience, abundant caution, and
thorough acquaintance with the details of mercantile
matters, can safely enter upon such operations—
"A man of law that never sawe
The wayes to buy and sell,
Wenyng to ryse by merchandyse,
I pray God spede him well!''
No one dreams of questioning the right of the specu-
lator in cotton or the funds, or the adventurer in
foreign corn, to their profit ;—it is the reward of their
own intelligence, vigilance, and courage ; they ran the
risk,—they therefore enjoy the prize I
Now these ordinary rules of commercial justice are
all set aside in dealing with Mr. Hudson. One of
the most grievous of the charges on which he was
examined at York was that, whereas he had the
sagacity, in October, 1844, to foresee that in the
course of the next year the price of iron would be-
come very considerably enhanced in price all over
the kingdom—though no one else—no, not the iron-
masters, the ironmongers, nor the engineers them-
selves—could then discern the same probabilities of
any such general advance,—and then at his own sole
risk contracted for a supply of 20,000 tons of iron at
6/. 103., on his own account, the market price of
which on the 4th of March following had risen to
121. (when a railway with which he was connected,
then wanting a supply of iron, advertised for tenders),
he had taken the profit realised on 7,000 tons himself,
instead of making the shareholders in the said rail-
way a present of it I The author of the pamphlet
styled "A Revised and Complete Report of the
Recent Trial for Libel," calls Mr. Hudson's conduct
in this matter " robbery ;" there is a species of rob-
bery with which he himself seems but imperfectly
acquainted, which may be worthy of his study—
when a traducer "filches" from another "his good
came," and "robs him of his reputation." What
are the facts of this unparalleled charge ?
We shall allow Mr. Sergeant Wilkins, the counsel
for the Yorkshirernan, to state the accusation against
Mr. Hudson in his own words t—
" Gentlemen, I believe the real transaction was this:
—Messrs. Thompson and Forman had sold to Mr. Hud-
son 7,000 tons of iron, at 61. 10s. per ton. Some time
after this, a milts ay company, of which Mr. Hudson was
the chairman, and one of the trustees for that company,
purchased those 7,000 tons of iron nominally from
Messrs. Thompson and Forman (though that was merely
a blind: that was the blind they attempted), but virtu-
ally from sir. Hudson, at 12/. per ton; arid Mr. Hudson
made by that transaction nearly 40,000/. And if Mr.
Hudson did not feel that there was something to be
ashamed of—if he did not feel that the transaction would
not bear the light—if it was an honest and bond fide
transaction, why were the invoices made out in the name
of Messrs. Thompson and Forman, and not-in the name
of Mr. Hudson? Why, the company were led to believe
that they were not dealing with Mr. Hudson, but wits
Messrs. Thompson .nd Furman. The very fact of his
having recourse to this is proof positive to every thick-
iog man that Mr. Hudson telt he was deceiving the com-
pany, and d ting that against whic'i every railway Act
and every joint-stock cimpany's Act specially providethes—
making a private purse out of that company, when
whole 40,000/. that he put into his own pocket ought
to have gone into the coffers of the company to increase
the dividend of the shareholders."
No doubt it must be a very popular thing to tell
shareholders, in the year 1849, that there was a sum of
39,000/. or 40,0001. which Mr. Hudson ought to
divide amongst them ! Reaction, panic, the inevitable
result of reckless speculation, against which this very
Mr. Hudson so energetically cautioned the world as
early as 1844 ; wars, blockades, revolutions in
Europe ; the shock occasioned by a change in our
commercial system ; three successive famines in part
of the United Kingdom, followed by commercial
failures, have effected a change in the aspect of rail-
way property. Under such circumstances it would
be no difficult thing to persuade railway proprietors
that it would be a good thing to go shares with Mr.
Hudson—in his profits ! A goose, arraigned before a
jury of foxes would be about as likely to have a
fair trial, as a man who, by rumour,—which loves to
exaggerate and mistify everytbing,—was reputed to
have amassed a princely fortune, would to be dealt
fairly with by hungry scrip-holders I It has
been said that " corporations have no conscience"—
and probably experience will show that public com-
panies have neither conscience nor memory of past
cervices, for certain it is that men banded together in
joint-stock fraternity do things of which in their in-
dividual capacity they would be thoroughly ashamed.
Now let us request particular attention to the facts of
this case as disclosed by Mr. Hudson in his evidence
in answer to the searching questions of the Learned
Sergeant at the recent trial
" Q. When did you become Chairman of the York,
Newcastle, and Berwick Railway?
" A. At its formation in 1844.
" Q. You continued so until May, 1849?
" A. I did.
Q. Did you, on the 11th of January, 1845, enter
into any contract with Messrs. Thompson and Forman
for iron?
"A. I did enter into contract with those gentlemen

for iron, in October, 1844.
" Q. That contract was completed in January, 1845?
"A. It was—there was a dispute between me and
Thompson and Forman, as to the quantity for which I
had contracted. This was finally settled in January.
" Q. I believe you purchased about 20,000 tons?
"A. I did. I contracted for that quantity. I made
the offer in Mr. Thompson's own house, but the offer was
not then accepted; it was accepted and the contract con-
cluded a short time after.
" Q. The dispute as to the quantity included in that
contract was settled by the quantity being reduced
10,000 tons?
"A. It was.
" Q. At the price of 61. 10s. a ton?
"A. Yes; 1 offered that price for 20,060 tons to Mr.
Thompson in his own house. It was accepted after-
wards. Some months after the completion of that con-
tract an agent—
" Mr. Sergeant Wilkins—Q. Answer my question, sir.
" Mr. Martin—Would it not be better for you to per-
mit Mr. Hudson to disclose the whole truth of this trans-
action?
" Mr. Hudson—A. The observation relates to the
contract for iron. I made the offer for it in Mr. Thom-
pson's own house, in the beginning of October. Three
weeks after that he accepted it, and some time—
" Mr. Justice Wightman—Q. Confine yourself to
answering the question. What you have asked, Brother
Wilkins, is the price?
" Mr. Sergeant Wilkins—A. Exactly so, my Lord.
" Mr. Hudson—A. I was anxious, my Lord, to ex-
' plain this, bec..use, among other imputations, it has been
said 1 took advantage of Mr. Thompson in his own
house. I made the tier to him in his own house—•
" Mr. Justice W ightman— Confine yourself to answer-
ing the question as ti the price.
" A. I k tic red him Cl. 10s. a tor, and three weeks af-
terwerds he accepted that offer.
" Q. Was there not on the 30th of January, 1845, a
meeting of the Provisional Committee of the York,
Newca.,t'e, and Bernick Railwa) ?
" /%. There was.
`• Q. You, Mr. Richardsor, and another person, were
present?
" A. I was certainly present.
" Q. Were there more persons present than those I
have named?

" A. I cannot say.
" Q. Was Mr. Richardson present?
" A. I t►eli ye he was.
" Q. Was it not at that meeting resolve .l to advertise
for 20,000 tcus of iron?

" A. It was.
" Q. Was your signature attach(d to the advertise-
ment which was in: ei ted in the lictiltcay Times?

" A. It was.
" Q. Wt.s there act another meeting held on the sth
of March, at which tenders were nceivcd?

" A. There was.
" Q. Did not Messrs. Tbompon, Forman, and Co.
send in a tender to supply 14,000 tons, at 14/. a ton?
"A. No. Their tender was at 12/. 10s. Messrs.
Guests tendered at 121. Messrs. Hill and Co.'s tender
vas at la There were some other tenders at 11/. 17s.
6d.; but the tenders at the latter price were for small
quantities. All at the lower price were accepted.
"Q. Was Thompson's tender accepted?
" A. It was finally accepted, after he bad agreed to se-
duce his price from 12/. 10s. to 121.
" Q. Was any of the 10,000 tons, for which you bad
bargained, supplied to the company at 121. per ton?
"A. This I cannot exactly say. I was to get from
Thompson and Forman 10,000 tons of iron at the price
of 61. 10s. When they sold to the railway company it
was agreed letween them and me that on 7,000 tons of
the quantity they sold the company I was to receive the
difference betw(in 6/. 10e. and 121 At the very same
time I bought from Messrs. Batley a large quantity of
iron for anotler railway at 12/. a ton, and just before I
left London I had been cferi d by Mr. Crawshay
50,0001. profit for my targain with Thompson, Forman,
and Co.
"Q. But, in point of fact, you benefited by that sale
38,000/.?
"A. I did, I think—about that extent.
" Mr. Martin—l must object to this general benefit.
Did you make one ball's( nny by the sole to the railway
more than to any one else ? Give the figures.
"Mr. Sergeant Wilkins--Well, to please my friend,
calculate it on paper.
" A. On paper it appears my profit was 38,500/."
In reply to Mr. Martin, Q.U., Mr. Hudson gave the
following further explanations—every word of which,
be it remarked, is omitted in the miscalled " revised
and complete report," got up at the Yorkshirenion

t,ffice :
"Q. Now as to the iron contract. I understood you
to say that you agreed with Thompson, Forman and Co.
to supply you with 20,C00 tons at 6I 10s. a ton ?
" A. Yes.
" Q. About which there was a dispute when the price
of iron rose, and you agreed to take 10,000 tons?

" A. Yes.
" Q. Now la me ask you on whose account was that
contract made:
" A. Entirely on my own private account ; the railway
company was not in exidence when I entered into it. When
I entered into it I proposed to several friends to join me
in it.
" Q. You sold that Mr. Cambay made you an offer
in regard to that contract ?
" A. lie offered to give me 50,0001. fur my bargain.
" Q. Was that before the tender by Thompson and
Forman to the railway was accepttd?

" A. It a iv.
" Q. Was that iron supplied to the company at the
fair market price of the day?
"A. Most certainly. Thompson and Forman's tender
was at 121. 10s. I took part in beating them down to
124 That was rather a low price. The transaction was
perfectly straightforward. The railway purchasing from
Thompson could make no difference to me.
" Q. Then the price of iron had risen from the pre-
vious October, when you entered into the contract?
"A. It had nearly doubled. The purchase was a
profitable one to me. I mentioned that I was offered
50,0001. for my bargain by persons unconnected with the
railway. I might have realized that sum."
Here is the truth, the whole truth, and nothing but
the truth, respecting this—one of the greatest of Mr.
Hudson's imaginary " frauds." We ask an impartial
public what they think of it .? Does it justify the vili-
fication poured upon him ? In the latter end of 1844
the project of making a line of railway from New-
castle to Edinburgh was very much discussed, both in
the north of England and in Scotland ; the object to
be secured was a complete line of communication be-
tween the Scottish capital and the metropolis, via York.
Two rival lines were proposed,—each was supported
by numerous partizans and powerful in-
terests. Mr. Hudson proposed the Newcastle
and Berwick line, and he had to encounter
the most determined opposition. Everybody will re-
collect his conflicts with Lord Howick, and his appeals
to the landowners of Northumberland. In October,
1844, the date of the transaction before us, the New-
castle and Berwick Railway was a mere project in
posse. It was nothing more than a candidate for
popular support, which had to make its way in public
favour, before it could venture to go to Parliament.
On the 22nd October Mr. Hudson wrote a letter to
the landowners of Northumberland on the merits of
the competing schemes. On the 21st December,
1844, there was a public meeting in the Town-hall of
Morpeth, when the claims of the two lines were pub-
licly discussed. On the 11th January, 1845, we find
Mr. Hudson negotiating with the Corporation of
Newcastle, and promising the accomplishment
of that stupendous high level bridge over the Tyne,
which will remain as a monument of his extraordi-
nary enterprise when his detractors will have slum-
bered in forgetfulness ! On the 27th January the
inhabitants of Alnwick held a public meeting,
threatening to oppose every line that did not embrace
their town, and about the same date the Duke of
Northumberland and Sir George Grey, without whose
concurrence it would have been impossible to have
formed the Newcastle and B -rwick line, gave in their
adhesion to Mr. Hudson's plan l On the 12:h Oc-
tober, 1844, we find it publicly ask-d what is the oc
casion of the delay in issuing the scrip in the proposed
company, and on the 14:h December we find the
scrip quoted in the share list for the first time. The
promoters of the line went to Parliament, and the
following statement will show the progress.of the Bill
empowering the company to construct the railway :
The petition was presented February 11, 1845. The
Bill was read a first time March 4. It was read a second
time March 10. It was read a third time June 11,
and received the Royal assent to the Bill July 31.
How then can any one, with any regard to truth,
venture to say that Mr. Hudson's contract with Messrs.
Thompson, in Oct., 1844, could have been for and on ac-
count of the York, Newcastle, and Berwick Railway P
It was, as yet, a mere project, which might or might
not find favour,—it was not certain of the support
of either the towns or of the landowners, much less was
its passage through Parliament, where it subsequently
encountered a powerful and protracted opposition
up to the 11th June, certain ;—and it is nonsen-
sical to suppose that a provisional company, without
any power or authority to take such a step, would, at
such a period, have authorised a contract for iron. It
is not pretended either that the shareholders or com-
pany ever gave 111 r. Hudson authority to make
that contract, or ever subsequently ratified it!
On the 30th of January, 1845, the committee
of this inchoate company resolve to advertise for ten-
ders for 20,000 tons of iron, the tenders to be deli-
vered on the 4th of March,—quite early enough,
seeing that the Bill was only fixed to be read a first
time on that day ; and it is sufficiently plain that the
object in advertising for tenders at such an early date
Has to create a public impression that the promoters
of the Newcastle and Berwick line felt sure that they
would be able to win the Parliamentary battle, the
fortune of which was then exceedingly doubtful. It
was altogether bin Hudson's own venture;—his con-
tract with Messrs. Thompson in the previous October
was entirely on his own account,—on his own
undivided responsibility. Let us ask those
who would come forward now and lay a claim to Mr.
Hudson's profit on that adventure, if there had been
a Loss, instead of a profit, would they have held them-
selves responsible for it Q Justice must be " even-
handed ;" let them ask their own consciences, and then
let them tell the world honestly and frankly, would
they have been willing to have participated in the loss, if
loss there had been, as they now claim to share the pro-
fit ? Reverse the picture : If Mr. Hudson bad
bought iron at 101. a ton in October, 1844, and
the price had fallen to 61. 10s. in March, 1845, when
the company received tenders for iron, —if
instead of an advance in price there had been a
fall,—will any one in his senses believe that these ra-
pacious harpies would have offered to take the iron
off Mr. Hudson's hands at a loss? Oh, no; they
would have said, " Mr. Hudson, you have thought
proper to speculate in iron—your speculation has
not answered ;—we cannot help that. In October,
1844, this company was not on its legs; its scrip was
not in the market till December ; the provisional
body had no power to give you authority to purchase
the iron; and as a matter of fact they gave you no
such authority you cannot produce it,
you cannot say that they did. We wanted
no iron, till April, 1845, at the earliest, and then we
were willing to buy it, like any other company, at the
current market price !" Or, again, let us ask if Mr.
Hudson had rued of his bargain and had refused to
complete the purchase—could Messrs. Thompson
have sued the shareholders or the Provisional Com-
mittee on the contract ? Certainly not—Mr. Hud-
son was legally and morally responsible,:and he only,
—it was his own adventure, his own speculation, at
his own risk and peril ; and the shareholders of the
York, Newcastle, and Berwick Railway had no more
right to participate in the profits than they had in
the profits of any independent speculator on the
London Stock-Exchange.
On what conceivable grounds could they claim a
share in that profit? They wanted a supply of iron
in April, 1845—they wet e not in a position to require
it earlier,— on what ground had they a right to ex-
pect it below the market price,—thescurrent rate that
all others were then giving for it ? If the profit aid
not go into Mr. Hudson's pocket it would have gone
of necessity into the pockets of the ironmasters ; it
never would have gone into the Newcastle and Ber-
wick coffers ; for they authorised a purchase of iron
in March, 1845—not in October, 1844.
Now we have gone through all the particulars
of this case, and we do not hesitate for a moment in
saying, that never was a transaction more com-
pletely misrepresented than this matter has been
by the York print, and by -those who take
their cue from the prompter behind the scenes
there, where the farce of Love, Law, and Physic
is so often represented,—and never in all the annals
of slander did such an accumulation of imputa-