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Laa diagrammes suivants iiluatrant la m^thoda. 1 2 3 4 5 6 S^T-^T ff til OF IriF, TO THE ^ABE Tins City Oounoil of London having crdered their Raiway Comiuittee to investigate the af- fitirs and management of the London and Fort Stanley Railway, we the Pirectors of the Kail- way hoartily concurred in their resolution, and placed before the Oommittd? ?<.ich documents and evidence as they required, presuming that the position occupied by the Comraitto in con- nexion with the standing of the Municipal Council of the city of London, was a guarantee that the iavestigation would be conducted im- partially and with an exact and diligent alten- tion to all thecircumatauoes. The report of the Railway Oorpn^Ut^epub- lished by order of the Municipal Orouucil of Loudon is, however, of such a character that we deam it necmsary in vindication ot our manage- ment to address you on the aevvral clauses of the report, and would request you in the peru- sal of th? repor< of the Railway Committee, to bear in mind that it is based upon statements we bad no opportunity of rebutting, and that in con- sequence, the statements are presumptions in- stead of facts. The directors beg to state that exertions have been made at different times to collect the amounts due on slock, the last resort, that of compulsion by law, is the only course which we hard not fully resorted to; many of the original subscriptions to stocks are entirely worthless; the president informed the Rail- way Committee that the stock collectable was between £1000 and £2000. The re ference to our giving notes to Ryno and Wellstead in payment of our stock " in ex. pectation of an inquiry into the afiairs of the Company" is mer» assertion, and not at all war- ranted by circumstanoes. On the 11th March the Directors who have giv6n thei^otes in payment of stock, finding that Messrs. Ryno and Wellslead had not been paidproportionably with the other contractors, felt bound to relieve them by the only means in their power ; that of pay- ing them the amount they were due the Com- pany for stock. In avoiding intor^t on stock, this Company have only followed the plan of tii» Great Western Railway. . The Directors have since the formation ot the Company been liable, individually, to t{ie banks, fbr from three to seven thousand pdffids and whilst bearing this individual responsibility, which they might be called upon to pay at ary time ; do not consider they are at all ^enayrable for not paying the instnlmentis on th?^^>ck as called in. T! e Directors having rnised money on their private leaponsibility lo a larger amount than could be collected from the private stock, nega- tives the assertion of the Committee "that with a view to securing through him the car con tract for Ryno & Wfllateuil. In July. 1856 (not 185.5 08 in the report of the Railway Corarailtee) the Company had on hand twenty-five tliousand pound.? in Debentures of the City of London, which at. tliat time were quite unsaleable ; a portion of these were given to Messrs. Pierson, Case A Co. at 25 per cent, discount. Mr. Leonard then contended that an amount should be granted to Ryno & Wellstead as they had not received any money on their contract for five months; the amount due them .it this time was £5,965 besides an amount due on turn tablet^ (not £2,915 15s. us entered on the Minute Book,) the sura making up the amount nothaving baeu posted in the ledger, as will be seen by reference to the statement annexed. We assert that no intimidation or threats of any kind were used by Mr. Leonard to obtain these Debentures. Had the Railway Committee published in the Appendix to their Report the amount due to Ryno k Wellstead on their contracts and ac- couBts for repairs, together with the amount due to Mr. Leonard ior land purchased from him in April, 1856, by the Company, amounting to £3,096, the prejudice which has been raised on certain points, we believe would have been obviated. While on the subject of the Report, in connexion with Mi. Leonard, we beg to state that of the 10 shares subscribed by Mr. Leonard, (60) were taken for the purpose of enabling the Company to organize on the day advertised ! thus saving three months' time — the mtentton being that on the recepticn of the stock books from St. Thomas and Pt. Stanley, the 50 shares should be transferroi^. from Mr. Leonard's name to the subscribers at St. Thomas and Port Stan- ley. The contracts for cars and turntables were closed in December. 1 866. (See Appen- dix A.) The arguments used in the Report to connect Mr. Leonard and Ryno & Wellstead, we feel may be safely lefl to your consideration in connexion with the facts we now place befoi e you. The opening of the tenders for cars by Mr. Bowman we believe was caused by his consider- ing it to be his duty, as the tenders were adver- tised for to be addressed to the Mechanical Su- perintendent — Mr. Bowman being informed that it was the order of the Directors that all tenders for the future should be opened in their presence, their wisbfs iiave Deen complied with. We are The office I'omroy & A gentlemen, citation oftl 'serve the ii iconseuted to I In selecti vacancy at t jof Mr. Bark iofthe Rail jstockbolderi pouc whose ,T)e of greate <rt Ourhavin ^(two <hou8ai ing Mr. Bow of the read, ;us on the 'iS the minuter complained so. Relying the two th< i September < engineer ws ing to contn That loss of tho railw beyond our tration witi: conduct of i of the fact; 1 to neglect o the commei gies have b" sacrifice of t part to proa ^ Mr. Barke 'fifty thousar •the Board, assertion, inc J&ct, Mr. Bai the Board, ai a state ofth: We regret t< been circulal chiefly to be 'm&de throug uels by that The prese; .introduced i .of seven hi nually. Dm aware that several members of the Executive ^ ^s that the t)ommittee, if not all, were consulted by Mr. Bowman and expressed their approval of his giving the construction of the turn tables to Ryno and Wellstead, saving by this letting £170, and one month in time ; this was explained to the Railway Committee by the President who for the pre although thi we find ihi able to pei fully iuipres my in the w^ Aft OF IriK, WIM S M "T* ^tHABEHOLOERS. gh liiin thoearcou In July. 1856 (not lailwny Corarailtee) veuty-flve thousand he City of London, [iiite unsaleable; a to Messrs. Pierson, It. discount. Mr. . an amount should ;ad as they had not r contract for five n3 ,)t this time was lue on turn tablet^ 1 the Minute Book,) int not having baen be seen by reference We assert that no r kind were used by Debentures, littee published in 't the amount due r contracts and ac- rith the amovmt due hased from him in tny, amounting to i has been raised ', would have been ject of the Report, ird, we beg to state )ed by Mr. Leonard, ose of enabling the i day advertised ! ,ime— the intention of the stock books nley, the 50 shares [r. Leonard's name nas and Port Stan- 's and turntables 36t). (See Appen- Keport to connect Istead, we feel may ation in connexion oefoi e you. irs for cars by Mr. ed by his consider- mders were adver- le Mechanical Su- eing informed that >rs that all tenders 1 in their presence, ed with. We are % The office of Auditors now tilled by Messrs. I'omroy & Adams was not sought for by these gentlemen, and it was only by the urgent soli citation of the Boarde, and we believ, a desire to serve the mterests of the fompany, that they consented to act. I In selecting Mr. Charles Hope to f^U the vacancy at the Board caused by the resignation jof Mr. Barker, we Lad in view the best interests jof the Railway, and consider that among the {Stockholders open to uB for choice, we can find pouc whose ability, position, and inflaence conld ,t)e of greater service to the Oompafly. Our liaving paid the Contractors nearly $2560 T(t»o 'houaand five hundred dollars) afler receiv- ing Mr. Bowman's report on the malconatruction of the read, was caused by Mr. Barnard assuring jus on the '22nd September, 18S6, as appears by ithe minutes, that he bad not accepted the work complained of, and tSat he did not intend to do 80. Relyiag ou Mr. Bamar^s assurance we paid the two thousand five hundred dollars on the i September estimate, in full confidence that the engineer was watching the construction accord- ing to contract. That losses have occurred iu the construction of tho railway, chiefly owing to ciicumstances beyond our control, we cannot doubt ; the arbi- tration with the Contractors, arising from the conduct of our late Engineer, is indeed evidence of the fact; but that these losses are attributable to neglect on our part, we cannot admit Since the commencement of this Company our ener- gies have b"3n devoted to its service, and a great sacrifice of time and labor has been made on our part to promote its interests. ^ Mr. Barker's statement, that the Company tost ^ filly thousand pounds by the mismanagement of •the Board, Contractors, and Officers, is a mere a^-sertion, incaj/able of proof. And if such were the .fact, Mr. Barker is as culpable as any member of the Board, as he never made any eOort to remedy a state of things so disastrous to the Company. We regret to add, that the reports which have been circulated prejudicial to the Company, are chiefly to be attributed to the mis-statements 'm&de through the public press .and other chan- nels by that gentleman. The present management of the Road was .introduced for the purpose of saving the sum .of seven hundred and thirty-five pounds an- nually. Our experience thus far has satisfied of the Executive L^a that the staff now employed is sufiBcient consulted by Mr. r approval of hit iie turn tables to lathis letting £ no, was explained to e President who for the proper working of the Railway, and although the traffic has inci'eased considerably we find ihat the reduced staiT is efficient and able to perform the requirements. We are fully impressed with the recessity of econo- my in the working of. a short line of railway, ling stock and turntables, has been entirely .lis- interosted, acd governed solely by a dcHiro for the iu^orest of the railwiiy. I also fully concur with the atatenient of tJie Directors as to tho propriety of Mr. Leonard's conduct with respect to the contracts of tho par- ties with whom he is interested iu business, and I have no doubt those contracts were given and have been carried out iu good tailh for tho bene- fit of the Railway Company, who are now largely indebted to Mr. Leonard instead of l>i« being in arrear for Stock. I have always considered Mr. Leonard as one of the most useful and practical memborsof the Beard, andfelr, therefore, unwilling to part with him, when he proposed to retire, and I cannot but express my full ooiif' V ice in the honor atd uprightness of bis public conduct. I cannot agree with Mr. Barker that Lossea to such a large amount have been sustained Ijjr raisnanagement of the Directors ; — on the con- trary I assert that the Directors have devoted their energies to the best ,^f their ability, and that the losses that have occurred hava .iriHen {torn circumstances beyond their control. That the London and Port Stanley Railwtiy will ultimately pay well, is now beyond doubt ; and even under present circumstancea, I feel caaured that the benefits derived by the city and surrounding country has far exceeded any inconvenience that have been felt in raising the moans for its constniction. The business of the road Is constantly in- creasing, and its utility becoming more and more manifest, and it is to be regretted that it has been found necessary to raise an outcry and feeling which may have a temporary tendency to prejudice the public mind and retard its pro- gress, but from which I have no doubt it will rise in renewed strength and confidence. L. LAWRASON, President, L. A a. P 3.R. Co. London, 25th July, 1857. The following atatementa. A, B & C, shew in what proporlion the several Contractora were paid, evidencing that Wellateaa and Byno had NO preference over the other Contraotors -but the reverse , APPBNDia: A. TUB liONUOl AND POBT STAWI.KY RAILHOAH CO. UB,, Iff ACOOUfTT WITH WBJ.I.STKAH AIil> BTNO. Balance Amount Amuuut due Ry no ft IWO. of paid on WeUstcad K»tiiiiat«. Etitiiitaie. at end of each month. ■ ■■♦^-' £. s. d. &'. ». d. £. s. d. ^ Jau. KHtiinato 1447 17 8 1085 18 4 3<ll 19 4 Feb. do. 970 5 T07 4 6S0 1(> B Marcli do. 1078 8 B S«8 15 10 87B !■« April (Jo. Ma,T do. 2692 8 3407 18 r>40 IS 7 4017 10 7 June 'do. Ut » i 41D9 11 July do. 17(>4 ir, 7 OO&H 10 „ do. Meclia- a:oal do. )t> !H 1(1 .n nn<H III 4 7 fbr i'roni three to aeveH thouoand pdfKds atul whilst bearing this individual rosponaibility, which they might be called upon to pay at ary time ; do nut consider they are at all •agnHirable for not paying the inatahnel)l?i on th^^stpclc aa called in. T[ e Directors having raised money on tiicir private responsibility to a larger amount than could be collected from the private atoclc, nega- tives the asaertion of the Committee "that many who can ill aCord it will now b« called upon to pay a tax" in consequcucoof tho Direc- tors net having compelled those who were able to pay up their stock. Mr. K. Paul, one of «ur uumber, obtained per- mission last year to erect a store house on some land belonging to the Company at St. Thomas and thesuperintendant was instructed to survey the laud, advertise it and put it up to auction, thus giving parties an opportunity to procure •Itea for warehouses ; some legal obstacles then appeared, which hare since been dmoved, and Mr. Paul, is about receiving a lease of the land at a price to bs fixed by the Directors, the remaining lots, will be leased in the same man- ner ; if any feel injured by this action, we have Mr. Paulls authority lor stating that he will give up his interest in the lot to any person who will take the timber ofi' his hands at a valuation. Mr. Fuul has a contra account against the Company which we presume will overbalance the amount he is due for stock. Messrs Price, Thompson, and otiiora have contra accounts to u large amount against their stock ; these and other names were pointed out by the; President to the Railway Committee as entitled to credit on Stock List. "Wc now desire your attention to the strictures un Mr. Leonard's conduct in ccunexioii with liyno & "Wellatead, the Car Contractorc, and Mr. Bowman. Ou the 5th day of December, 1856, when the tenders for cars were placed before the Board by Mr. Bowman, Mr. Leonard dis- tinctly staled to the Directors present hid-^ posi- tion with RynoA Wellstead, then tendering, and withdrew froi the room whilst the tenders were under discussion ; on his return, the tender of Ryno & Wellatead having been pre- viously accepted, he repeated that be rented them his establiahment and had to fuiniah them with tools, materials and means to carry on the contract, and pressed his desire to retire from -the Board on account of his connexion with the Contractors. The Directors were unanimous in urgently expressing their wish that Mr. Leonard | should remain, and stating that they saw no | necessity for his vacating his seat. Mr. Barker j was not present — see minutes of Board. The first i employment of Mr. Bowman was by a resolution fiioved by Mr. Barker, seconded by Mr. Ander- ! son, 4th July, 1855, and his appointment aa i Superintendent was made iu the following Oc- | tober, the resolution being moved by Mr. Leo- ' nard, and seconded by Mr. Barker ; the Railway | Committee refer to the latter fact, and with you we leave it to judge whether it was at all pro- { bable that Mr. Leonard nominated Mr. Bowman j it was the order of the Directors that all tenders for the future should be opened in their presence, their wishf a have been complied with. We are aware that several mombers of the Executive tlommiMee, ii' not all, were consulted by Mr. Bowman and expressed their approval of hii giving the construction of the turn tables to Ryno and Wellstead, saving by this letting £1*70, and one month in time ; this was explained to the Railway Committee by the President who stated that he ordered Mr. Bowman to close the contract with Wellstead k Ryno, as tbo work would be executed in the city. The Railway Committee while referring to Mr. Bowman's report on the construction of the road, and censuring him for not having brought the subject at an earlier date before the Board, admit that he was not required to inter- fere with the works then under contract. The loss of Salt cannot justly be ascribed to Mr. Bowman, it was caused by a freshet of unusual character and by the blocking of ice which caused the water of the creek to rise to a height which has not been known for the last quarter of a century ; a considerable portion of the track was carried away at the strme time and exten- sive damage was done to private property and that of the Board of Works, which Mr. Bowman might as well be blamed for, as for the loss and damage to Salt. That Mr. Bowman has dismissed the servants ot the Companv without consulting the Board we admit but at the some time we assert that Mr. Bowman did so in the strict discharge of his duty, and in our opinion would have been censureable had he allowed the parties to re- main in the service of the Company ; one of the cases was explained to the i?ailway Com- mittee and the expression of approval at Mr. Bowman's action appeared unanimous. The Superintendent is allowed the po\?er of dismiss- ing and employing servants as he deems neces- sary for the working and interest of the Rail- way ; but the dismissals and appointments are orly made subject to our approval, a full report of the circumstances being made to us at each monthly meeting j persons dismissed can at all times bring their cases before the Board; an appeal has only been made on one occasion and iu this instance Mr. Bowman's conduct was fully approved. We are aware tliat Long Point iron was used ^in the construction of car wheels, but Ryno and Wellstead having guaranteed them for twelve months it appears improbable that they would use iron of inferior quality ; such car wheels as failed have been replaced by them at their ex- pense. The rec'Oiiuncudation by Mr. Bowman of parties to till situations on the Railway was made at the request of several of the Direc- tors ; we were aware that Mr. Bowman had more experience and knowledge of persons quali- fied for the several situations than we had, and it \vor( r.oni ,1 ilesiro to provide an efficient stnfT, that Mr. Bowman was requested to be prepared with nan es. introduced f .of seven hu nually. Our ^^8 that the for the pro; although the we find tha able to perl fully impress my in the wc and while a agement, ha^ seven hundn matter ot it officers has th aider beside practical bene We refer v that since the of importance that the runn accurate in tii The suggei way Oommitt as far as consi to the Compai In conclusic Railway Com report upon a of individual giving parties planation, and each Director actions referre E. PA A. HO S. PR] K. LEi The above by the Directi called for the < Committee of state that, alt Board in regs system of man statements, I f I regret to Council have • a copy of the i adopted in Ju rejected repor thereby havinj public with ti has been ac chasged. The main ol been to report ment of the ro ment. With respec man, I have m eonfidRucB in h intendent and believe that hi and superinten Printed at the Oft'oe of tho Daily Free Press, Nort rs tliat all tenders in their presence, 5d with. We are of the Executive »DsuIted by Mr. approval of hii e turn tables to this letting £1*70, waa explaiued to ) President who Bowman to close & Ryno, as tho 3 city. hile referring to I construction of for not having ier date before the required to inter- ir contract. The ascribed to Mr. eshet of unusual Qg of ice which 9 rise to a height the last quarter irtion of the track lime and exten- ute property and lich Mr. Bowman 8 for the loss and Issed the servants ilticg the Board we assert that trict discharge of rould have been e parties to re- "cmpany ; one of i^ailway Corn- approval at Mr. naninioup. The )o\?er of dismiss- he deems neces- est of the Rail- appointments are )val, a full report de to us at each missed can at all the Board; an one occasion and I's conduct was ut iron was used Is, but Ryuo and hem for twelve that they would ich car wheels as aera at their ex- Ir. Bowman of le Railway was »l of the Direc- r. Bowman had of persons quali- an we had, and an efficient staff, d to be prepared introduced for tho purpose of saving the aura .of seven hundred and thirty-flve pounds an- nually. Our experience thus far has satisfied ^^s that the staff now employed is sufiBcicnt for the proper working of the Railway, and although the traffic has increased considerably we find that the reduced stafl' is efficient and able to perform the requirements. We are fully impressed with the recessity of econo- my in the working of a short line of railway, and while securing u due efficiency of man- agement, have looked to the yearly saving of ■even hundred and thirty-five pounds as a matter of importance ; the combination of officers has thus far worked well, and we con- sider beside being a saving of expense is u practical benefit to the railway. We refer with much satisfaction to the facf. that since the opening of the road, no accident of importance has occurred, and the circumstance that the running of trains has been regular and accurate in time. The suggestions and the report of the Rail- way Committee will receive our attention, and as far as cotisidrred practicable, and ol service to the Company, will be adopted. In conclusion we express our regret that the Railway Committee should have framed their report upon evidence reflecting on the conduct of individual members of this Board, without giving parties interested an opportunity of ex- planation, and wilbout having ascertained from each Director Lis opinion on the various trans' actions referred to. E. PAUL, A. HOWARD, S. PRICE, R LEONARD, M. ANDERSON, S. S. POMROY, 3. MORRILL, E. ADAMS, 0. J. HOPE. The above statement having been adopted by the Directors, at a meeting of the Board, called for the consideration of the Report of (ho Committee of the City Council, J feel bound to state that, although I cannot agree with the Board in regard to its approval of the present system of management, yet, in most of ^lle other statements, I fully concur. I regret to find that tho Committee of the Council have omitted, in their appendix, to give a copy of the report furnished them, which was adopted in July, 1856, in lieu of the proposed rejected report whic'i they have published, thereby having' failed to furnish the Council and public with tuo system upon which the Board has been actually managed until recently cliasged. The main object of the Committee should liavo been to report the former and present manage- ment of the road, with a view to its impiove- ment. With respect to tlie charges agaiust Mr. Bow- man, I have no hesitation in expressing my full confidRucB in his integrity and ability as Super, intendent and Mechanical Engineer ; and I believe that bis conduct in "'ivin™ the cor^trocfp and superintending the construction of the rol- IWMl. Jan. Feb. Marcl April Ma,T June July Kutiinate Jo. do. i)o. ilo 'do. do. .. di). Mecha nicai do, Sept. 1. Paid b.v debentiifPd Oct. 28, Cash Nov. 1, Turntable K»timateit I)rc. l«t. Fiual E« timate on Car Contract. 1857. I'eb. 26, Paid oti arrount Freight on t»o cars April 1, Tntil ba lance due to Mechanical Ac- count per certl flcste April 30, Bills re- ceived for Stock Aaioiitit of I'lNtimate. £. H. d. 1447 17 970 1078 8 ri40 IS 14t -t 17(M 16 -10 18 10 1K!7 la 2 mil I 4 AUKIUIlt paid on Estimate. *. ». d. I08S 18 :07 4 .S«< 15 10 87C() ;«M» Bulunce ducBynoA WetlBtcad at end of (mch month. a. R. d. »0l 10 4 630 1(1 B 87n lis 3407 »8 4017 10 7 41C9 11 aam Hi G0<14 Hi 4 2214 It, 4 1914 lb 4 28»<a 7 6 Total [MiiS. 041 18 to 12732 2 11376 14 1 SOS 7 8 i*D«13 8 4aK) 0, IQi;i 8 10 12 10 Oi tnOO 18 10 awa 17 8 (187 10 (tl ];t|>t> t n.-WO 14 ft * Balance due, January 1, £6513 88. lOd. £1385 7s. 8d. due Messrs. Ryno A Wo)tate«d ©»cUi- siveofinternst, Tiondon, O.W., July, 1867 -♦•< APPENDIX B. TUB LOMUON AND PORT 8TANLET BAILHOAB IN AOCOUNT WITH MESSES. CRAIG & CAMPBBU,. Balance 1858. Monthly Monthly Payments. due end of Estimates. oachmouth £. .1*. d. *. s. d. £. 8. d. Aug., July Kstim. nxi in 300 833 16 Sept., Aug. do. 1157 I 3 1772 5 218 11 3 Oct., Sept. do. Nov., Bill recelvo- 142fi It 800 845 6 3 able for Stock •288 l 4 f>67 11 Deo. 15, Final Est 2187 1 10 .'1041. 2 1857. Feb.2, For Freight due Cimpany 40 3004 5 Fob. 26, Cash paid „ Stations Fit 2327 H 7 070 14 a tings n« 5 10 733 J imp 2, (lo. fi!) ;? fl| UK) 703 3 6 6330 1 5' 5627 17 11 6627 17 ll| 702 3 el £7«-i 3j. fid. *otaI balance? due Messrs Oraig fr exclusive of interest. London, O.W., July, 1S.57. Co., APPENDIX O. THH U)MI>0.>l AND POUT St'A.NLEr RAII.UO.VJ) CO., IH ACCOUNT WITH MESSRS. PBAHSON, CASE, & CO, Cash 1 HM Monthly Amount Due Coii- E.'<tini!Vte. Monthly trnctors. Payment. £. H. d. .e. s. d. .1'. s, d. Jan. lilstiniate .iOO'.", 14 « 2100 10 1 Ftb. do. "';i 18 2066 7 Marcl 1 do. . U 8 2680 1 h April do. ,Vt08 15 12.=;0 ( 11 ■-V) 14 n iMa:' do. 36!ti» 4 1 .3725 11 .-■ June do. aUS 2 6 22.W I.". 11 "\H 1 6 July do. 3490 4 i( 1000 224.3 r, Aug, do. ,3051 12 .'i ■1100 I'.) 1 cm 13 2 Sept. do. Sh7 8 'J 021 i 1 (;(* (3 2 Cash, Balance due Coutra(-tor, Sept., IS08, tCOSlSsatl. ;iOpiT cent of total ostimitt-s to ho paid in Uonds. ((/Wtified copies. J. BENSON, AcM'Ouiidi.it. lioiidun, C. VV., July, 18,-)7. •tho Daily Free Press, Nort.h Stn^ct, London, O.W,