The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1849-08-09


his secretary, his auditors. and his n rth lders,
strike one Nth the idea t novelty and orr iality
as IT We bad not seen tn, like b., fore and could
not quite conceive it. We wish to deal equal ius-
tice between all the actors in this wonderful story
| Though The play of F" Hamlet" without the prince
himstlt would be very Imperfect. yet the prince
| alone, without anybody else, would be equally So
George Hudson may be the chief parsonage in this
| Drama, yet he is not the only one and he cannot
be appreciated without giving the Others their due.
Three years ago the "York, Newcastle and
| Darlington Company" as il was then called re-
solved, at Mr.. Hudsons suggestion, and apparently
on suihcient grounds, to purchase shares in the
| Sunderland Docks to the amount of SIS 900
From varlons causes, though the shares have been
bought, Parliamentary powers are still wanting for
| the operation In the interval, however, and par
!icuary about two years since, Mr.. Hudson, be-
| ing chairman, made further Purchases OF shares
So as to double the amount. He now saddles the
secoud purchase on the company, as well as the
hrst, and the question who the shares belong to
happens 10 be OF grave import TO the possessor.
Tbs committee repudlates them, and calls on Mr..
Hudson TO refund the purchase money, which he
has paid from the funds Ut the company We are
not gong into the question OF Mr.. Hudson's ai-
thoiliy or intentions In purchasing the dock shares
by Tar The most important feature IN the cass IS
the way In which business is done by great rail-
way company. Last November Mr.. Close, the Sc
cretary OF the company, made certain accounts,
In which Gl2o0O0 was inserted as on account
OF the Sunderland Docks, and part of a SUN
total OF 81, S69,22S. On The 18th of that month
that sum total was adopted by a minute
of the directors, and published next day
in printed statement, which expressly men-
toned The subscription TO Sunderland DOCKS as
one OF the items included In the sum, and which
was confirmed by general board on December
ii. Thus the secretary, the directors, and the
general board, all adopted sum total which in
volved the purchase Of the dock shares, and as
sumed the question now In dispute Last February
70, special general meeting of shareholders, sum
moned by advertisement, was held for the purpose
OF considering and approving inter ala, :" bill tor
enabling the York, Newcastle, and Berwick Rail
way Company 10 make certain branches In the
counties of Northumberland and Newcastle upon
Tyne, and tor other purposes" All the proper
parliamentary notices of this bill had been gwen
by repeated advertisements Ia numerous prOvin-
cia papers. AT the meeting bill submitted
to the approval OF the shareholders. Its preamble
stated, "And, whereas, II would be attended with
local and public advantage, If (amongst various
objects namely power were given TO the said COM
paDy to subs cribe TO the Sunderland docks, au-
thorlsed to be made the Sunderland dock act,
1916; and the York, Newcastle, and Berwick
Railway company are willing to execute the
SAID proposed new works, and to subscribe
to the said Sunderland docks" And the 42d
section enacted that II should be lawful for the
company to subscribe sum not exceeding the
of .El50,000. The bill was adopted and therefore,
SO far as regards that meeting, Mr.. Hudson was
thenceioith fully authorized 10 purchase the
cond batch of dock shares he was the first. Yet
all this time, and for several months after, IL ap-
pears that only Mr.. Close aud a director or two
had the least inkllng Of the fact that Mr.. Hudson
had increased the company's interest In the docks
from E75,000 TO cl50, 900, and that the purchases
were not on his own private account. The COM
mttee OF directors, the general board Of directors,
the auditors, and special general meeting Of
shareholders, had all considered and approved
counts, statements, and bill belor. Parliament,
containing something Of which the general board
Of directors and the shareholders at large en-
tIrely ignorant, and which they now vehemently
repudiate. Though they approved the bull, they
had not the least idea OF Its contents, and did not
even ask 10 see the preambl', or to have it read.
We have only space at present TO notice one
other charge against Mr. Hudson. IL Is one In
which apprehend public opinion will be far
more unanimous and severe in his condemnation
than IN the last mentioned instance. In the sum
mer Of 1915, the company having created and al.
lotted u quantity of shares, had certain limited
remainder, OF which u gave 80 many TO Mr. Had
ton. On one ground or another he became entl-
tied 10 937a shares lie sold them at a very large
premium. But what did he sell f! Only the 9Sfk
which were his due No such thing. lie sold on
his own account-that is, as IT they were hts own,
1854 shares! He sold not only more than he had
TO sell, but more even than the company had 10
dispose of. Such was thu premium, that this
one Transaction lac made profit oi Giij.70i. There
was really nothing 10 sell, but hr went on selling
that 10, pockctlng premiums, ca mhnltum. NO
wonder AZ Mr. lludson's fabulous wealth. IL was
fabulous indeed, tor II consisted IN receiving large
premiums tor promises which he had not the least
power 10 fulfil. But what incredible state Of
accounts which could allow such a transaction to
sleep LOT TOUR yearS-Nr. hudson all the ufnc
quietly enjoying the proceeds la order 10 make
for this abnormal Issue Of shares, the register
Of shareholders has been privately increased from
i2,0C0 TO 5000. The suueptitious shares were
not entered, OF course, in Mr.. Hudson's own name,
but under the names Of numerous railway officials
or private friends; the ri0dps opCrandf uniformly
being that Mr. Hudson directed the secretary 10
issuc so many shares 10 such a name; aud the see
ieary did so without any demur, though not with.
out occasional mitgvng and surprise. We are
only describing the process, having little desire to
speak out at present on Its motives. Mr. Hudson,
who, for forms sake, had executed the company $
subs cption contract To the amount OF 5000 shares
and who found everybody leaning upon h'm for as
sistapce and advice, who also found that every
thing he touched turned to gold doubtless thought
il HE fate Ia make shares aud sell hem. HIS office
was plenpoteniiary; so long as everything ms
rg II would always be 10 his power to rectify any
irregularities. lie was the company himself, and
really does not seem 10 have known whether It
was for himsel or the company that he paid re-
ceived; excepting that, AZ commonly happens in
such cases, he found himstlf-quite without know
ing it OF course-paying ON the companys behalf,
and receiving on his own.