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I THE RAILWAY CRISIS AT RUTHIN.

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THE RAILWAY CRISIS AT RUTHIN. MEETING OF SHAREHOLDERS. GRAVE CHARGES AGAINST THE CON- TRACTOR AND THE ENGINEER. (FROM Ont REPORTER. On Tuesday, at noon, an ordinary general meeting of the shareholders of the Ruthin and Cerrig-y-druidicn Railway was held at the Castle Hotel, for the general purposes of the undertak ng, and for the following further purposes, viz :—For the election of five Directors in the place of the existing Directors. For the election of an auditor in the place of H. P. Jones, who goes out of office by rotation. To recieve from the Directors- a statement as to the position of the Company with lefcrence to the existing contract for the construction of the line, and to consider and if thought fit, confirm the course which the Directors have taken in reference thereto, and to decide upon the further course to be pursued w^tk reference to the si;id contract and construction of the line, and in particular whether the said contract and all engagements connected there- with and binding on the Company should be determined, and stepis be taken to recover such shares, bonds, and moneys of the Company as have been issued, given, or paid in respect of work under the said contract, and upon what terms and whether any and what proceedings should be taken on the part of the Company, and against whom for the purpose of protecting the Company against loss in the matter of the said contract, or otherwise in respect of acts or defaults in con- nection therewith, and to empower the Directors to take the necessary steps for the above mentioned purposes or such of them as the Company shall see fit to approve, and for the completion of the line under a new contract, and for protecting the interest of the Company in the meantime. There were present Mr Charles Main- waring, Mr E. Tumour, Mr Wm. Lloyd, solicitor Mr James Black, Mr J. B. Fryer, Mr Wm. Simon, ftirJohn Jones, draper; Mr Wm. Green, Mr H. P. Joues, Mr J. J. Bancroft, Mr Bowlings (Lord Bagot's solicitor), Mr A. H. Davies, Mr Thomas Davies, Mr Isaac Williams, Mr John Morris, Mr Samuel Owen, Dr J. R. Jenkins, Mr J. LI. Thomas, Mr LJ. Adams, etc. Mr E. Tumour proposed, and Mr Wm. Lloyd seconded, that Mr Charles Mainwaring take the chair. Mr William Lloyd proposed, and Mr H. B. Jones seconded, that Mr John Jones, draper, be elected a director in place of John Simon, re- signed. Mr Adams read the following letter he had re- ceived from Mr Cornwallis West:- "It is with great regret that I find myself un- able to attend the meeting of shareholders of the Cerrig-y-druidion Railway Company. In common with my brother directors I lament the very un- satisfactory condition in which the Company is placed by the acts of persons in whom confidence had been placed, and had I been able to attend I should have strongly urged the meeting to agree to the recommendations to be laid before them in order that fresh arrangements may be made, likely to lead to a satisfactory solution of our present difficulties. The shareholders are no doubt fully alive to the many obstacles with which we have had to contend in consequence of the peculiar character of the original contract, the full force of which was I think hardly realised when agreed to last year. If, however, as may be hoped, this contract can be put an end to, owing to circumstances which have since arisen, I still think it possible that other means may be forth- coming at 1".0 distant day to carry on the work begun, and complete the line." Mr Adams then read the Directors' report, of which we extract the following :—" Your Directors regret that they are unable to report favourably upon the progress of the works, which has been arrested by circumstances which could not be foreseen or controlled. Soon after the commence- ment of the works differences arose between the contractor and the financial agent to whom he had given authority to receive all payments in his (the contractor's) account for work executed under the certificates of the Company's engineer, and the matter assumed such complications that, even now, supposing the contractor's claim to be a just one, it is not certain to whom the payment should be made. The amount of this claim is £3851, and it would, under ordinary circumstances, have appeared as a debt owing by the Company in the statement of accounts now presented to the meeting. Unfortunately, however, there arose strong reasons for doubt as to the accuracy of the certificates in question, and it was resolved that a competent engineer should be engaged to make a survey, and a report upon the works executed up to the 1st November last. With respect to this report your Directors regret to state that in comparison to the figures therein, shown with those of the engineer's certificates, exhibits dis- crepancies of so grave a character, that, in your interests, they feel bound to request your sanc- tion to take such steps, and make such arrange- ments, as they may be advised with reference to the contract." Mr Adams explained that in con- sequence of so few shareholders attending their past meetings, these meetings, under the act, were informal. It required the 1 -20th part of the share capital of the Company to be iepresented by 20 persons, who had paid all the calls on their shares, to constitute a legal meeting. However, by passing a resolution endorsing the proceedings of those meetings, ail past informalities would be made good. Mr William Lloyd: I have great pleasure in proposing that this meeting confirms all the past acts and proceedings of the Directors (hear, hear). The motion was carried unanimously. In rising to move the adoption of the Directors' report, the Chairman, who was received with ap- plause, said that he wished they had met under happier circumstances. That time last year they were full or buoyant hope that the line would do good to town and country (hear, hear). He was sorry to say these Hopes had been dispelled. With regard to the report they had just heard read, he suggested that it would be advisable for the Direc- tors to co-operate with two or three gentlemen representing the shareholders to take the matter in hand, and thoroughly investigate it. There were only two possibilities before them of getting the line made, and one was to spend as little of their money as possible. He begged to move the adoption of the report (applause). 0 This was carried unanimously, after which Mr Adams proceeded to read Mr Henry Robertson's report on the line, which stated in the first place that the contractor had taken no cross sections of the ground, as was usual. He was at a loss to understand how the engineer could have certified for 13,000 yards of rock cuttings, as a most careful examination of the ground only enabled him to certify for 580 yards. The total difference between the amount claimed by the contractor, and that shown by the report is about £8000, and among the items or discrepancy we may instance the following :-Earth.work, S8254 (according to Mr Robertson, orly £ 3519) accommodation, £ 140 (Mr Robertson, nil) viaducts, S50 (Mr Robert- son, nil) culverts and drains, £520 (Mr Robert- son, JE150) breast walls, tllO (Mr Robertson, X50) level crossings, X60 (Mr Rober tson, nil); sleepers, £ 200 \(Mr Robertson, nil); ballast, JE150 (Mr Robertson, nil) fencing, 6{ miles, £1147 (Mr Robertson, 3 miles, 12 chains, £577); superinten- dence, £820(Mr Robertson, 250). The total amount between the contractor's claim and the payments made was X3851. Mr Adams then read some correspondence be- tween himself and Mr Smith, the engineer, in which the former wrote: 'I am directed to en- close you a copy of Mr Henry Robertson's report, and to inform you that the charges against you are of so grave a character that the Directors have determined to suspend you." Mr Adams said he received no reply whatever to that letter, but shortly afterwards Messrs Louis and Edwards wroto to him stating that it was Mr Smith's intention to bring an action against the Company for salary due, and also for the reckless charges they had made against him. Mr H. P. Jones, as one of the auditors, said he found the Company's books perfectly straight. He advocated speedy action in the matter. Why leave things as they stood? Mr William Edwards hid heard the last "I" speaKer Diamea by the shareholders for signing the reports as auditor, but it must be borne in mind he did not sanction the reckless expenditure of money on the line. It Mr Smith proceeded with his action against them, they should prose- cute him in return for having done them out of £ 570 with the fencing. The posts were simply pruned branches, and the wire had not yet been filled in many places, but was lying on the ground. He would not give £100 for the whole lot (laugh- ter and applause). Mr J. B. Fryer: Mr Robertson's statement is entirely wrong. Why not have employed a thoroughly independent man to make the measurements? It is the most extraordinary statement I ever heard, and I am surprised I was not made aware of it before. Mr William Edwards called upon Mr David Humphreys, contractor, to say a few words about the 1300 yards of rock cuttings (laughter). Mr Humphreys I don't believe there is a single yard of solid rock from one end of the line to the other, and I should only like to have half the price for doing the work (applause). Mr Turnour was in favour of forming a com- mittee of the shareholders to work with the directors, and to set about investigating the charges against Mr Fryer and Mr Smith at once. Mr H. P. Jones having been re-elected auditor, Mr William Lloyd rose and proposed that the Committee of Shareholders should be formed of Dr Jenkins, Mr Bancroft, Mr William Green, Mr H. P. Jones, and Mr William Edwards. The first three gentlemen however declined, and the committee of investigation was finally made up of Mr William Edwards, Mr H. P. Jones, Mr Ed- ward Humphreys, Mr John Morris, and Mr A. Davies Mr Fryer said he would like to explain away the false impression about the rock that Mr Smith had measured. If they referred to the specifica- tions they would find two items, rock and soft earth." He asked Mr Humphreys Was it soft earth or not P" Mr Wiliiam Edwards: How many pounds of gun-powder were used, Mr Fryer? (loud laughter). Mr Humphreys It is certainly not hard rock. Mr Fryer I have only two items in my contract and it comes under the denomination of soft soil. Mr H. P. Jones: I know something about railway business, having been in it since I was 18 years of age, both in making and working, but of all the work I've ever seen this beats all (loud laughter). Mr Turnour: Well, gentlemen, the committee having been appointed to act in co-operation with the directors, I propose that they take such steps as they may consider desirable in the interests of the company, both as regards the contractor and the engineer (hear, hear). Mr John Morris contended that, as the works had only been in operation about six calendar months (and say 50 men were employed at £1 per week-and many of them were not paid that) the total cost of the line, so far, ought not to exceed £1300. Mr Mainwaring As we pad to make the line by schedule the cost was greater than if we had paid cash. The contractor was only paid JE10,000 in cash—the rest was paper. A discussion followed on the Statement of Accounts," which was presented to the meeting, after which Mr John Morris asked what was meant by a "permanent way?" He would refer the question to Mr Humphries. Mr Humphries I call it a road permanently laid down. Mr Mainwaring: That permanent way only exists in the fertile imagination of Mr Smith (laughter). Mr H. P. Jones: I ask Mr Fryer are there any rails laid down on any part of the line P There is some imitation of ballasting and sleepers-but I have never seen them (hear, hear). Mr Mainwaring referred to Mr Ex-Tumour's resolution that a committee of shareholders should be formed to take such steps as may be considered desirable in the interests of the company to in. vestigate the charges brought against the con- tractor and the engineer. This was seconded by Mr Samuel Owen, and carried unanimously. Mr Simon hoped the committee would see that less money was spent, and more work done before the next call. Mr Fryer May I ask who ordered Mr Robert- son to make this report, and what he was paid ? Mr Adams I may tell you, Mr Fryer, he was employed by the directors, as the original engineer of the works. Mr Fryer: And as regards the money he was paid-it is simply a matter of curiosity. Mr Adams: The amount we paid him was £ 85. Mr Fryer Any other promises in kind ? Mr Adams None whatever. Mr Fryer Any promises of omce ? Mr Adams None whatever. Mr Ex-Turnour: Really, gentlemen, I don't think it fair that the contractor should get up and make these gross insinuations. He is setting a thief to catch a thief." He apparently means to impute that tfle directors are guilty of so mean and contemplible an action as to bribe Mr Robert- son to make a false report (loud applause). We have always striven to do our duty by you, and to act honestly and fairly, and I don't think this meeting will sanction what Mr Fryer has said (loud applause), The meeting afterwards concluded with a vote of thanks to Mr Mainwaring for presiding.

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