The Sun.
London, England, 1850-01-22 00:00:00

TO the SHAREHOLDERS of the YORK,
.___.
-a- NEWCASTLE, and BERWICK RAILWAY COMP Y
tlentlemen,-So long as the questions existing eetween to Corn-
-11.413' and myself were pending for decision by the legal tribunals of
the cow.
-17, I felt that I had no alternative but patient submission
thno,- re emputations cast on me, and that I must wait till thetrans-
-4,..e.011-1 ving rise to these. questio. hs could be calmly and irnpar-
e__"uor discussed, and a judicial decision pronounced-upon them. The
wareehaent which has now been come to for the settlement
.ofthose.
Matters having decision ; rendered such a discussion and such a im
Ilracticable, it may be permitted to me to make a few remarks on the
Pwhleh roceedings which have been instituted against me, and on those
have been threatened.
ih`
t me had relation to shares
actually taken against the Proceedings'
Junction Railway and in the leewcastle and
Berwick
he
Railway.
The proceedings, contemplated had reference to
shares in the Sunderland Docks (beyond t e 3,000 shares sanctioned
hY
Comp the
en3,Company), and to a cniantity ef. iron rails purchased by the
And ft tion shares. At a public
teeori rst, as to the handling
ng of the Company, held oil the.74.tinhee'f
d me. No opposition
February, 1845, it was
proposedL„l that these shares should be given 1 , was accordingly
redeeSs Made to the proposition : and a test:ant/on ears, with the
, ieaVirig the shafes to tile disposal of the Dire... that they
stinct anderstending on the part of eitly One preeent . ore
lesete, h
4,4 ee presented to me. They were accordingly e
rMany of them were subsequently given by me to parties ^711:
oslstance had been valuable to the Company. It is,
otfhemounopiniocn of
the shareholders
fOr hie to teconnt the services which, in
shareholders, were so important as to render such an applica-
- 441'1l of the shares due to me ; but I may remark, that I canna perd-
u why discredit should attach to me for receiving shares place
w the a,
am, -spout of the Directors, with the expressed intention of re-
"'ng services previously rendered, and then thought to hare been
►alliable. I l=ever imagined that four years afterwards the Company
lit°nl, raise questiohs of a mere technical character as to the manner
that S loch
". their intentions had been carried out. I hd considered
the cry shareholder would have fat himself called upon to sustain
Vecision of the public meeting of the Company.-
P
14Y, right to the shares in the Newcastle and Berwick Railway I
ee 4flaghled to be eually free fro n doubt or question.. They
.‘gettglhal shares in the Company of which I was the originator -
,Y did not exceed the number for which I had executed the sub-
coetract-they were the shares for which, before the pass-
h gesief the Act , f Parliament for the formaticn of the Company, I
myself responsible, and Which I could have been com-
rn,_,d to t .ke had a loss resulted. My getting them in no way di.
le',e_shed the number to which it had been publicly stated the other
oweleholders were 10 be entitled, and which shares every one of
e,„ln received. It occurred nor, therefore, to me that by reedy--
i4rtill^Bo shares it would be imputed to me that I violited any
Wei; °ligation :• and I cannot but perceive that had, the shares
cooshi I received remained in the coffers of
the Compare,•, it
hoe have been far more easy for the Committee of Investiga-
xi,i, to have recAnmended the adoption of measures for the parti-
te be to 11-Telling Inc to take them up, than they have found
kr " e,lll uon me to acceunt for the proceeds of shares in respect
nice had. lncline d all the responsibility. I will
willnotcnlarge_ veil
the powerful opposition which was encountered, nor I
uty di the manner in which, and the sacrifices by w hich, under
h,re eellon, and by my unceasing ex erllons, the Newcastle and
all m:" 15 tailway ED w passe
I as carried through Parliament : when pass
terea led the labour I had undergone-the anxiety I bad suffered
torn- saethlees I had made. I executed the identical subscription
and /4k.ii_`.l,o/ which the name; of die other shareholders were affixed ;
r: Censidered theeepos,rightesas defined by that contract.
the 1144/las beArt cleideeleeelie,ettiliteformed the second branch of
Weeenolllll hieolved.
Iseteg es„pect tiithe Sunderland Docks I may remark, that their
the to‘,4lvaal projected to fore I hail any connexion whatever with
p°rtana of Su elerlend : that their completion was of essential un-
e4111,,, te, not merely to the town ef Sunaerland, but to the railway
111,41 Y, Possessing as it does all the lines of communication with
I,e ee'e?eks. It is unnecessary for me to point out how much
cks-Tar*" are likely to be benefited by the formation ef the
their .2"la the extent to which thei, traffic will be extended and
lil,rat'.cr(ulue improved by their construction, as these con-
hee ,ens Must* present themselves to the minds of every one.
becetne connected with Sunderland I subscribed 2,500/.
the sum' docks
these dks °la my individual account, that being
Proi.er , Which my connexion with the town seemed' to render
Drogeess him Railway Compary subscribed for 3,000 shares. lit he
the works it appeared evident to me that to ensure their
p,,,and enectual completion a further interest must be taken by
te‘e-r,lellY
topeComny and it seemed also that it was the true policy
"the ii?rnneeY m'ourae the rapid completion of ha works, for
eert,'!'leaY Company the increased traffic on their line afford. ed
I'on te"'lllY of a return, independent of any dividend to be received
°Melo"alone , but consulted two of the Directors, present with me at
Lihe% e, and the step w took had their entire concurrence. The pur-
oin, et 2,345 aellinoLl shares was the result of these deliberc-
Le'ectoar2d the shares were registered in the names of three
eset of of the Railway Company. To me there was DO p
lara daect or indirect beneff my colleagues and myself had
nbe PIIY to the interests of the Comany. this it is not
"(It / ~en'ed that we exceeded the legal anthority reposed in us ;
aY be allowed to say that we hid acted in this way in
theekiele,nals cases when we considered it important that delay
telll,l -„eelteolded -Parliamentary sanction no doubt was requisite,
they ele'" fonlier cases was obtained-the result being that many
h• .antageous arrangements w.re carried through, which (had
nesters
this
shrun fro a surning eipti n of res
',est ,„"sser wouldk havem been effected atdes ad.r The purchasensof
iie
even (anoxia' shares would have been legalised had not the apple-
ee tete") Fenian],
itt on. • e for that purpose been postponed, with a view
Pense by embracing other objects in the sameapp_liest_-
thsY oora"se are the circumstances under which it is that the Rail
PanY have refused to recomilse these additional shares, and
Ittie theeYliold me accountable for them, and this too, at the very
te.„ll'vey Csl),,ePeany have ratified the phrchase of some West Durham
alreen""es taken by me in a similar manner, and. with the
Ike teou ee of authority, the only eifference befog that it has now
tierres. ',gilt advantageous. for the Company to retain these latter
,r heel egany speaking, the responsibility in respect of these Sun-
eipl• Be„,ete Shares may perhaps be cast upon me, but, if this be so,
e set ellokier must feel that I have been guilty of no dishonour-
he ' arid tht
ere
supwit4 Bapliwire et he
he positi
circumstances under which the iron n. rails_
thennenele to the Railway Company, the only other suoject of
line 'Plated proceedings. In the month of October, 1844,
ke was low in price, I thought a speculation in rails likely
flea • I,:eshil, and made a contract for a large quantity with
teel,lvere „aiehaPsell and rorman, of ondon. Shares in this specula-
feeirered by me to several private friends, all of whom de-
ki°ll, ree„eg anwilli g to incur the chance of loss, and the specu-
,ee-W4S' ,„--,„l4ed rny own. at this period the Newcastle and Berwick
C„;,`"lhleY did not exist. The price of iron afterwards ad-
teiPa hees I, like an other man, was surely entitled to the en-
(leZers of my any
iron. In the month of March, 1845,
teL''Psny, Were Publiely invited for the supply of iron rails to your
)11aZe, fe' ",,nd they were accordingly made by some of the first
trade, including Messrs. Thompson and For-
-440, a i',"lSibeel the contract at the price of the day. They
client)ve oile quantity comprehended in their contract, partly by the
th thtir own rails, and partly by the delivery of the rails
f
'Y
held
ita cusi my account. This transaction is complained of
hetrell. e etroPriety and perfect I, gality I never entertained any
nee preeee,tained no more than the market price for my own
ekl,'Srlse .eiY the rate which Messrs. Thompson and Forman
Sie'S'ltel by theirs.' If 'not one single toa had t een
Cvercd? Isle, what would have been the conse-
tler'essrs. Thompson and Forman would have de-
so.„ Dairy Whole quantity. out of their own stock, and the
I:oehlbeee ,e Paid pincisely the price for the iron which it has
htleOhy, f was in no way benefited by the transaction with the
It Is I could have procured from other parties the same
ke,;leeeeys no doubt-said that it was illegal in me to supply iron to
kich elflvllleh I was a eirector ;
invalid,o not believe that even
etri;re htve a`ransation could be held forAll that the Legis •
treet °lle is to vacate the office of a director concerned in
tlecetor 1, With the Company. My case, however, occurred before
tter 44 e,,arllatlient was passed, and its previsions, therefore moth-
i le te '`'re shown them to be, have clearly no application what-
ett e
this at ter.
sleihr,ntee r's detail it is necessary that I should explain why I have
!tit-' -aePar a sum of money to tile Company. When these
4r„" orst agitated I submitted the whole of the
ee ;Are (Braila ti to most eminent counsel, by whom I
lietsessesfi'iscigaal°cninim could be established against me. . I
teri. a tho strowe„ _
LToe •,• epposed to any compromise whatever, feeling
+ egli invest' ation of the facts must remove much of the
hr "ase i'n" had been excited again,t ram I was infore.ned, however,
:;lilte'verw„4l°,,lll I Placed confidence, that the questions raised by
`-"thisany would involve me in yews of litigation, and
to th'iy,it Its
cause of enormous expense and endless annoyance and
adYfeed that legal and technical questions, foreign
seethSeel ; „r 4 the case Might effluence the decision to be -
hi fa could not' hut feel that, when even my title to the
Unctioushareswas questioned, though it rested upon
solel elf record
sgniBci ea vote of the shareholders, it would be idle in
Sielaltre, 'rohl Myself that the proceedings throughout would
, a spidt.
ed
litit," Mech.e these considerations, I have ascent to the arrange-
-111,14%, ''iriOas been co:Le to, and I have also thought it right to
sea 3,,,tif the enre response ility of the Sunderl and Dock
relieve my colleagues horn all liability in respect o ttte
f lanother charge which, although it does not involve
,eseonsibilit should still be adverted to. I would not Silt4hle°e, 'de scrutiny to which the accounts have been subjected,
op ch en'el.lellr with which they have been examined, neither do I
sn,TrdliS into details, for I should then have to discuss the
rool edit .unsettled question of what charges really
4llssel'et oeearried to the capital and what to the revenue accounts,
spiwhich no two men think precisely alike. Every item
N la
it k seas aye been improperly carried to capital would, in fact,
'rate
in
atcl that in thetiaggregate, aggregate, 107,3711. Fs. 10d. has been
eilehttre gainst
le up , capital, which ought to have been chat god against
elit ,he to the close ot the year nd it is added that,
lte,leer 14,eeire Period, the traffic has beenover reported to the ex-
-198. 7d. Of the former sum, 17,9581.0ccurs
„4t, of Interest paid on Debentures • and when I men-
k`reiis in inS'ihg the whole eriod of the formation of the railroad,
1,4110 lete-ap,flehes,This is tine only sum which, in the shape of de-
-4ti.r4,,i.einoltt;i_lttes been carried t,., the debit of the capital account,
uh emmot he requisite for those who have regard to
esee„"Proe„ ,ol the operations of the Company, and to the extent
,SeteeSniee Ze'lsie Works Another portion of the sum which is
not contists I;9 8111 14s. ed. arising from the late Di-
'l:77,4t:lllbselirenear°gmeinterest Which, although it might be
act ally paid, and net having charged some
'l\s„; of eoi , afterwards collected by public advertisement, and
c 4 ben, he at that tima been seen by those Directors, cou:d
rkVer. la opprellellded.in their flnancial statements.
ITSevivee balance of 29,6011. Os. 9d. to be accounted for, spread
tto e:e-Yerrs, much of it depending upon the propriety of
41tily 111 g jt:Pltati the cost of repairing the engiaes and stock of the
litirto eahellon, and of other Railways, deivered to the Corn-
e.o!tate of repair, and which it was necessary to improve
„lelled,.be used on the lines of the Company. There may
apoe~veeprS'yt are-some errors in the published accounts ; and
ttetlert ~,-*'lllY hope that the report of the late Committee of
s'int eke ees'S'aY be examined with more indulgence in this re-
1016214:ernnageen extended to the former Directors. In the report
et '
ands .1,14ee the Railway Company is charged with the sum of
erre,4*, as still due for the moveable stock of the Hartlepool
'Me t 44 ef waY, although it had been paid for some time before-
tryt n°ll4 in nnst ak magnitude, and yet one which, I freely admit,
e.
'esttrnatEd traffic, 3 797/. arose from an over-estimate
4
evek Supt' tor'.
_ for the convance of tho mails, the accounts re-
iShate, "-aa not ithen been settled with the Post-office. This
t4,*eot le he °f10,755/. 10a. 6d., in respect of which I would ob-
Ileln, 141 trgs, always been the custom of the Company to report
tolieee_heeerzie,', 11P to and ducludingSaturday; and thus it is, that
eeil„Sa tee es of the railway every published account has cons-
/44..t 4„3.,ear.4,,e11e11111 Part of a week properly applicable to the
th,,t4Cgcl !Ave, oenever the year closed on a Saturday the ac-
-40,, v,Ot (1411; corrected itself, and thus all cavil have ceased.
Dried net lie:, this part of the subject without adverting to the
ieSs
3"tfl the en oeen advanced against me, of having swollen the
keti,teL,aees, 4.llllahrs receipts, with the view of advancing the
t5hi11et744114---e Zereashle the rate of dividend, and of adding to
lathe rQbt?earge of unquestienable importance, but, fortu-
-1,,e4;11 "ed to ;fig upon no solid foundation. During the period
tejteSs't;visinee aecouut, the receipts of the Company from
httellepor•lls. as published by the Committee, have been thee:, to It'd teef'S,_ a surn in comparison with which the alleged
41,7Seci itsitY eeti'l";° of 14,5e2L. 19s. 7d. sinks into utter insignia-
e7l, erotite ehg of its being far more than covered by the uu-
S:oieSe.7e.' pillaged, on the same authority, to amount to
tteleters.any h„ 11 addition, I may observe that the accounts of
Irks titehtet on eve hot been credited with lhe very large item due I
eotecoleurrrirdedmitt.thte: tltaradebsebeanr
de4llB anew although they had been debited with
t, itaenedierdcutmosptuanb ce nmottivaeteryd
11:11,40t
v,-,788 over unnoticed the depreciation which has taken
leOr
4et
eet ;intlree'o'sia of the shares of the Company, and which has been
(14414 ,° o
eleacrt :egret. On referringtothe former value and
t„ e ne the other great lines of railway, it will be
I„,4iereeS lesree'nenelen has in all enses but one been greater, anti
-'''°,2lllluch larger than has occurred in the shares of
tof lit,,Say
oils to be ascribed not to the conduct pursued by
oklinsetiiiele other
~iudividual, but to causes affecting not one only
g lieeSa° existine railway- It is owing to the formation
elFll44'l'elscltilnlll%6e[iL,4l,l%vaY- the undue weight attached by the Le-
-411,44%n ablitqun: JellBlll, regardless of enhanced capital-the
ett by 1, 'tit of branch lines-and the insufficiency of the
Pot Chat 4,4 to seaerlterneut whenever the competition ot parties
liere es, eyst7,_4lllt,
,q(*l',4ltot'qUencji°, I exerted , myself to the utmost. I pointed
riee Wm, e oat would result from it, but I was unheeded.
dl, help Arnett at b t
14ittlt,nettickits,,111eees, Y e specious outcry for co.rapetition,
eee r„ oneap tares; and myself and o.hers com-
e, R e41,14t. nm adopt to some extent the objerei enable Byg-
one e„ntn„llese nea,tts'lleth to iesist. It is something to reflect
htet4h be,e ete
auTowartl circumstances, the lines which have
ellisellee ~,`" °I a Iran Use arrangements which have beck made,
teize:hte estlneestiaracr to receive the eondemnation of the 1e r • ablieeet ',1:10n, and that the system of management
-lee, eked "as not been found capable of substantial
tin hie , for ,e
414;t1? a'n"disa_tate of things is, I hope, to be found in the
glienn'tC.osfn noPulation of the country -in the diminished
lisVc'es teeerheet on railways-in the greotter economy of
e o-"ritithi‘ sehen.„'hich experience may suegest, and iu the ab-
-14,,
tkr, en
w_ ier their extension.
.111'tZneenaeodi:viejoiulnalrh observe that I am aware that transactions
c.elie-isi,!_shistaintleh to to be regretted, but •in respect to which it
top eh
tiTeeteii_iat peoih to reflect that the Company have in no
tlePileriet:Y an arcs
wieees'SrY loss. Allow me to ask you to review
the, , clan
of
rernembrtulce of the excited period in
tete Petei to ellrect,,f e InultiPlieity of concerns which I had to
o®towetitt letposistbape brief orportunitiea I had for mike-
t 8 'lnd pej 3 " rnY giving sufficient attention
~to
that
en,.t ,erivi:;i've °f thls
tot Der4kevats
,rnatters which then claimed ray
painful subject. Ido so with the
14'1444 arelosaedi 11 ‘n
°f the
h awn scantiness of the undertaking in which
te.toe ope for continue to retain a large interest, and
littleeZllras thos "
disclaiml a foal-
s% name nrys e who have she
hz, Gent, elf, nen% me the least coashiera-
,
434111t'fit litgar Very Obedient servant,
- GEORGE LIUDI3ON.