A second report has been made to the shareholders of
the York, Newcastle, and Berwick Railway Company, by the Committee of investigation appointed some months since: it reports further instances of breach of trust and falsifica- tion of accounts by Mr. Hudson, on a vaster scale than any yet laid before the public. The Committee state, that Mr. Hudson purchased 2,345 shares for him- self in the Sunderland Dock Company, and has paid for them with monies of the York, Newcastle, and Berwick Company, amounting at least to 62,6871.; but he transferred those shares to the credit of the latter company in February last, and brought the 62.687/. into their accounts: they recommend that the adoption of these shares be refused. Another transaction was Mr. Hudson's appropriation "for hi* own use from the Newcastle and Berwick Railway of the extraordinary number of 10,894 shares; while the number to which the resolutions of the Com- pany over which he presided entitled him was 9374 only." The profit realized by his sale of these shares, if he obtained the market prices at the times of his sales, must have been 145,7041.: the Committee recommend that Mr. Hudson be re- quired to account for these profits, and compelled to make restitution of these monies. By another transaction, Mr. Hudson secured an interest in a contract for supplying rails to the company: he purchased 10,000 tons of rails at 6/. 10s., and subsequently purchased them of himself for the company at 121. per ton; making a profit of 38,5001; "and he must have known that he was acting ille- gally in being interested in any such contract with a company of which he was chairman." Mr. Hadson has retained checks drawn by himself and another director for the company in favour of the Duke of Northumberland, the Earl of Tankerville, Earl Grey, Lady Mary Stanley, Sir Mathew White Ridley, and the Earl of Carlisle, for sums amounting to 81,0001.; and other checks in favour of other persona for sums amounting to 40,0001.: he had appropriated the proceeds of those checks to his own use; but has refunded the amounts to the company since the Committee was appointed, with interest from the time of their appro- priation, and with an explanation not accounted satisfactory.
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