The Sun.
London, England, 1850-01-16 00:00:00

The CHAIRMAN reminded Mr. Crouch that the
Scotch system was so far profitable, that the Royal
Bank of Scotland only paid 5 per cent., but as the
directors proposed to take the question into their
further consideration, he would not answer the argu-
ment cf the Hon. Proprietor. With regard to the
suggestion of Mr. Maudesley, he begged to inform
him that a portion of the directors were constantly
in attendance at the bank.

Mr. KEMBLETON had had some experience in the
Scottish system, and he gave it as his decided opinion
that it was not applicable to this country. In Scot-
land bankers were allowed to circulate notes without
providing for them in specie, a privilege which did
not exist here, while, with regard to the profits of the
system, the lion. Gentleman, Mr. Crouch,
was labouring under a ,delusion. One bank alone
with which he was connected—the old Aber-
deen Bank—had merged with a loss of 200,0001., and
he had no doubt there were many establishments in
as bad a condition. The system, he allowed, had
worked well in Scotland, but they did not know one
another sufficiently in this huge metropolis to make it
safe to adopt in in this country.
Mr. MAUDSLEY wished to know if it was not a fiet
that the branches had made 22,0001. of the profits ?
The CHAIRMAN said that was so.

A PROPRIETOR inquired if the value of the banking
houses and branches were included in the surplus
profits.
The CHAIRMAN—O.', nP, it is a clear cash balance.
Mr. MAYIIEW—Is the surplus fund a guarantee
fund ?

The CIIAIRMAX—It certainly is.
Mr. MAYHEW-I have been told that the surplus
fund is a mixed fund, and strictly there is no gua-
rantee fund.

The CumamlN—Oh, yes, there is. We have a
reserved fund to meet losses and contingencies, and
keep the dividend steady.
Mr. MAYHEW was of opinion that it was highly
desirable that the accounts should be enlarged.

The CHAIRMAN was not aware that the mode of
stating the accounts had been complained of till to-
day, but if it was any satisfaction to the meeting he
would renew his promise that in future the ac-
counts should be given more in detail.

Mr. SMITH wished to have the opinion of the direc-
tors upon the system of allowing interest in current
balances.

The CHAIRMAN replied that the London Joint-
Stock Bank and the Union Bank had tested the plan,
and found that it would not succeed. The directors,
therefore, did not think it prudent to adopt the
practice.
The resolution for the adoption of the report was
then put and carried, after which the dividend was
declared and the retiring directors re-appointed.
Captain PORTER then mored—" That the remune-
ration of the directors be reduced from 4,500/. to
3,0001., and that as vacancies occur at the board the
number of directors be reduced from 15 to 13, with
the same remuneration." _

The motion having been seconded,
The CHAIRMAN said it was hopeless to expect first-
class men to join the direction if their remuneration
were reduced. The directors had heavy duties to
perform, and if the proprietors had their own interest
at heart they would allow things to remain as they
are.
Thanks were then voted to the chairman and di-
rectors, and the Chairman having acknowledged the
compliment, the meeting was about to terminate,
when
A vote of thanks was passed to Mr. Malcolm, the
manager, and the clerks of the bank.
A PROPRIETOR svggested that the income-tax,
which was generally deducted from the salaries of
their managers and clerks, should be refunded to
them.
The CHAIRMAN said the matter should be considered
before the next meeting.
Tne meeting then broke up.

AUDIT OF RAIL WAY ACCOUNTS

(THIS DAY.)
The adjourned meeting of the representatives of
railway companies was held at the King's Arms
Hotel, Bridge-street, Westminster, at one o'clock
this day.
Amongst the gentlemen 'present we noticed the
Earl of Lonsdale, Mr. E. B. Denison, M.P., Mr.
Glyn, M.P., Mr. C. Russell, M.P., Mr. Laing, ➢lr.
Stewart, the Secretary of the London and North-
Western Railway Company, and many other influen-
tial gentlemen connected with railways. •

The Earl of LONSDALN was called to the chair, in
taking which he said—At the end of last session of
Parliament the opinion seemed to be very general
against Government interference in the auditing of
railway accounts. They had a meeting in the be-
ginning of November, which came to certain reso •
lutions as to the ground-work of a Bill to be
introduced into Parliament on this question, and
they were to meet again in December to take
the opinions of the shareholders and directors
of all the different companies. In December, how-
ever, they had received very few returns to the cir-
culars which had been sent to the shareholders with
a view of eliciting their opinions as to the proposed
Bill for the audit of railway accounts, and they
thought it expedient to defer the meeting until this
day. Ile was sorry to say that those returns had not
very much increased at this time. The representa-
tives of railway companies, therefore, considered that
they could only be Justified in introducing a Bill
into Parliament by having an overpowering majority
of shareholders to support them. They had not got
such a measure of support from the shareholders to
warrant them in bringing forward such a Bill, and he
considered that they had no business to introduce it
into Parliament, supported as it was by compara-
tively few shareholders. Few of the share-
holders whose opinions had been taken had expressed
themselves in favour of a Government audit ; but a
great proportion had not expressed any opinion at
all, and before the proposed Bill could be brought
before Parliament, he and the gentlemen with whom
he acted thought they should be backed by
the zealous and cordial co-operation of a
large number of shareholders. That not being the
case, he feared they must, in a certain degree,
withdraw, and leave the matter in the hands of the
shareholders, who would meet next month, when,
perhaps, a clearer and more decided opinion on the
question might be given. Under ordinary cir-
cumstances he should not have thought it necessary
to call a meeting on the present occasioe ;
but he considered it necessary, from the circumstance
of his motives and views on this subject having been
misrepresented. He had heard it said that he had
changed his opinion on this question, and that he now
thought a Government railway
audit was necessary.
He had now to say that the more he considered this
subject the more was he convinced that it was unne-
cessary f.sr the Government to have the superintend-
ence and auditing of railway accounts.—(Hear.) He
was glad to take this opportunity of stating that his
opinion on this subject remained unchanged. The
complaint against railroads two years ago was, that
the shareholders were incapable of managing their own
affairs. Recent investigations of different companies
which it was unnecessary to mention, showed, he
thought, that there was intelligence, vigour, and
perseverance enough among shareholders to unravel
and probe even the most intricate accounts to the
bottom; and thertfore he considered the supervision
of railway accounts ought to be more properly left to
the shareholders than any other party. The Noble
Earl concluded by submitting the following resolu-
tions to the meeting :--
" The Secretary having laid on the table the draft
of a Bill proposed by him, in accordance with his
view of the resolutions adopted at the last meeting—
" Resolved—That ti'though there still appears to be
the strew t feeling amongst railway proprietors gene-
rally against the
principle of any Government audit,
y. t as th. re kas not been found to he the needful una-
nimity of opinion, even amongst the hoards of directors,
as to the provisions of this Bill or the propriety of tie
resolutions formerly adopted, it is not expedient to in-
troduce the Bill into Parliament.
" T
becoming in, d
ohatiintnoloniregertrs t
appears
trstike anyobet p
the dutyro of, or to
be bw
hien t
part
upon the question cf audit, since it would seem to be
now viewed, though most erroneously, by a portion of
the shareholders in some of the companies, rather as a
question between the board and their c.nstituents than
between the) body of shareholders and tt e Government.
" That it therefore be left to the shareholders them-
stives to take her( after such course with regard to the
question as they think fit, each board communicating to
its constituents this resolutior, prior to the ensuing ge-
neral meeting, in such way as may be deemed right."
Mr. GLYN, in seconding the resolution, said, the
result of the inquiry which had been made since the
last meeting is November, had brought him to the
conviction, that the resolution passed at that meeting
had not met with such a general assent from
the main body of railway proprietors as to warrant
their proceeding further ,with the Bill. So far as
concerned the London and North Mestern Company,
he could state that the returns made to the circulars
submitted to the shareholders on this question, showed
that:a large body of the:proprietors were against any Go-
vernmental interference in the audit ef railway accounts.
lie might make the same remark with respect to the
shareholders dof other companies, with whom he
had had comtnuriication, althougl; the majority was
not so decidedly overpowering. He hoped it would
not go forth to the world that there had been the least
alteration of feeling with respect to this question among
those who had had the administration of the affairs of
railways. Ile entirely acquiesced in the views ex-
pressed by Lord Lonsdale, because he thought the
public in general had taken an erroneous view as to
the proceedings of the directors on this ques-
tion. He had always said this was a pro-
prietors' and not a directors' question ; and
he would leave the question in the shareholders' hands,
confident that it would be much better dealt with by I