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

YORK, NEWCASTLE, AND BE R WICK.
COMPROMISE WITH MR. HUDSON.
YORK, TUESDAY.-4 special general meeting of
this company was held to-day in the De Grey Rooms,
York, called by the directors, to consider two ques-
tions, both of them vitally affecting the interests of
the company. The first was an arrangement with
the directors of the Great North of England Com-
pany, extending the time for payment of the purchase
money of that line; the second was an agreement or
compromise between the new directors and Mr.
Hudson, by which all legal proceedings taken against
that gentleman were to be abandoned on his paying a
stipulated sum to the company. The meeting, though
called on a rather short notice, was pretty numerously
attended, though not equal to the crowded meetings
of the same company which were held in the course of
last summer, when the charges against Mr. Hudson
were fresh, and every meeting was expected to reveal
some new defalCation.
At twelve o'clock Mr. Leeman, the new chairman,
entered the room, followed by the other directors.
Mr. Leeman having taken the chair, and the secre-
tary, Mr. Close, having read the advertisement calling
the meeting:,
Tan CHAIRMAN said—Before proceeding to the
more immediate business of the meeting, perhaps they
would indulge him fora moment on this, the first
• • .ortunity he had of referring to the re-
• • and onerous .Ktsition in which his co-direc-
to . . plaCed. him as their chairman. They were
aware that, for the greater part of the past year he
had been professionally engaged as solicitor to the
committee of investigation, which necessarily made
him acquainted with the details and intricacies of
this vast and complicated concern. At the last meet-
ing of the directors they did him the honour to elect
him as one of the directors of the company, and the
other directors had since elected him their chairman,
and he could assure the meeting that he bad not
taken upon himself this position without feeling
deeply the obligations thus laid upon him.—(Cheers.)
With these preliminary observations, he would call
their attention to the business for which they had
been convened. That business was twofold—first,
with reference to the present arrangement between
this company and the Great North of England Com-
pany ; and second, with reference to a pro-
posed compromise of the disputes between
this company and Mr. Hudson. He would
first call their attention to the Great North
of England purchase, and he would now state
to them the precise nature of the question which they
had to discuss. The shareholders were aware that
this company bad entered into an arrangement with
the Great North of England to lease their line at a
rent of 140 odd thousand pounds per annum, but also
stipulating for power to purchase the line on the lst
of July, 1850, for the sum of 3,547,5001., together
with the payment of some debts owing by the Great
North of England, and which were scheduled in the
deed. In the third report of the committee of in-
vestigation they recommended, as a modification of
these terms, that the Great North of England should
postpone their claim on the purchase-money for six
years, this company giving bonds to pay their debt at
the end of that time, and bearing interest in the mean-
time at four per cent., and that the shares which were
created at six per cent. to pay the purchase-money,
should take dividend with the general stock ; and that
the six per cent. guarantee should cease. That re-
commendation was, after some discussion, agreed to
by the shareholders at the first meeting
of the company, and the committee of in-
vestigation accordingly placed themselves in
communication with the directors of the Great
North of England. In the fifth report of the com-
mittee the shareholders were informed of the result
of the negotiation which took place with the direc-
tors of the Great North of England Company.
They made a counter proposition that one-third of
the purchase-money should be paid in July, 1850,
that one-third should be raised by debentures, to be
paid three years afterwards, and that the remainder
should be paid five years after that, bearing interest
meantime at 6f per cent. That proposition was,
on the advice of the committee, rejected by the share-
holders, and the committee again entered into a nego-
tiation with the directors of the Great North of
England line. Those directors appointed a committee
of influential shareholders, of whom Mr. Hubbard,
of the Bank of England, was chairman, to confer
tobit place al..ki'eNvetisc.;,
arrangement was come to, to which he now invited
their attention. He then read the following heads of
agreement :
" Memorandum of articles agreed this 23d day of No-
Nv ezbcears,
ale!, tg,
and betweenßrißerwick
theilai rectors oarasd oaf
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ohme
miYiour
eke,
(consisting of directors and shareholders) appointed 1
by an extraordinary general meeting of the Great
North of England Railway Company, to arrange
terms for the payment of the sum of 3,547,5001., or
thereabouts, due from the York; Newcastle, and Bet.- ,
wick Railway Company, to the Great North of
England Company, on the Ist of July, 1850, in sub-
stitution for such sum when due on the said Ist day
of July, 1850.
"The said terms of arrangement to be subject to the
confirmation of the shareholders of the respective com-
panies.
" Art. I.—That three-tenths of the aforesaid sum, due
to the Great North of England Railway Company, shall
be payable by the delivery of debentures, falling due on
the Ist of July, 1853, and bearing interest at the rate of
four per cent. per annum.
" Art. 2.—That four-tenths of the aforesaid sum shall
be payable by debentures, falling due on the Ist of
January, 1855, bearing interest at the rate of four per
cent. per annum.
" Art. 3.—That three-tenths of the aforesaid sum be
payable by debentures, falling due on the Ist July, 1856,
bearing interest at the rate of four per cent. per annum.
" Art. 4.—The provisions of the preceding articles shall
be embodied in a separate Act of Parliament, to be pro-
moted by the York, Newcastle, and Berwick Railway
Company, and to be approved and assented to by the
Great North of England Railway Company, and the
said Act shall convey to the shareholders of the Great
North of England Railway, in guarantee for the pay-
ment, when due, of the debentures aforementioned, all
the security which the property`ot the York, Newcastle,
and Berwick Railway Company can, as on this day, be
made to confer, after allowing fur the borrowing powers
of the York, Newcastle, and Berwick Railway Company
on the present line, to the extent of 1,300,0001., inclusive
of their existing debentures.
" GEo. LEEMAN, Chairman of the York, Newcastle,
and Berwick Railway Company.
" J. G. HUBBARD, Chairman of the Committee of
the Great North of England Railway
Company."
The difference between that and the first proposition
was—that instead of the whole sum being paid in
July, 1850, with no interim paymeets, the committee
of the Great North of England urged upon them the
justice of their receiving payment to some amount in
July, 1850. The directors having maturely consi-
dered the position of this company, and the state
of its financial affairs, could not recommend the
shareholders to agree to such a proposition. A mo-
dification was, therefore, come to, which was in sub-
stance this—that instead of the shareholders paying
the whole sum at the end of six years, three-tenths
should be paid at the expiration of three years from
1850 ; the next four-tenths in eighteen months after
that, or zlf years after 1850; and the remaining
three-tenths eighteen months after that again ; thus
throwing the entire payment over six years, but
making the first instalment due in three. This was
the arrangement; and he spoke the unanimous
opinion of his brother directors, when he strongly
urgedwould
onlythe
add meeting
that
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aa
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Parliamentary-office, and every step had hear.)
been taken
ehne
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bymosvhi arnge hold ldr e s
reso-
lution adopting the agreement which he had read.
Mr. CHArTOR (of Darlington) asked if this re-
solution embraced the position of the purchase shares.
The CHAIRMAN said it did not alter or affect in
any way the position of the purchase shares.
Mr. CUATTOR asked if there could be any objection
to his now moving the appointment of a committee
to inquire into the position of these preference
shares ?

The CRAIRMAN said he apprehended this meeting
was called for a special purpose, and not for the set-
tlement of any question affecting what he might call
the internal affairs of this company ; but, if the meet-
ing wished, the directors had no objection to make
the next half•yearly meeting special, to consider the
propriety of appointing a committee.
Mr. Love seconded the motion put by the
chairman.
Mr. WYT IE said he would not occupy much of
their time, but there were some points to which he
wished to draw their attention. He differed from
the principle on which the agreement was proposed,
and though that principle had been affirmed at former
meetings, he thought the question was still open for
further discussion. He wished to call their atten-
tion to the question whether they would affirm the
purchase or not. He feared it was a hopeless task
to do so, as be saw so many gentlemen present who
were holders of Great North of England shares. As
a matter of delicacy, perhaps, these gentlemen ought
not to vote at all; but he must leave it to them whe-
ther they would or not. The negotiation was one of
Mr. Hudson's job schemes, and -,*is there was no one
transaction of tbat gentleman which be did not look