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ing might, with the work of Othello, have gone for|| chance. We think them, on the other hand, a beau

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tiful result of scheming punctually performed. The same system, we are confident, was displayed at the counter which eventuated in the representation of Sunderland. The theory is erroneous that supposes such men as Mr. Hudson to be devoid of imagination and genius. A bad general may sometimes make a great hit, but the man who is frequently successful is presum

men.

ever. A movement of this nature would necessarily alter and obscure the Hudsonian perspective; but men who count on every contingency never attain fame. Under any possible circumstances which may hereafter occur, Mr. Hudson will be accepted as the most appropriate illustration of the speculative and railway spirit in the current decennial period. The recent obscuration merely qualifies him better for this signaled to have military capacity and talent. The circumpreferment. The essay written once to prove the stantial evidence of success is deemed satisfactory. non-existence of Napoleon Bonaparte was a great "The battle of life" requires equal generalship with work-a mighty nothing-a big weed amongst the the fight of Goojerat. Many men dream well, who flowers of genius. Some temptation is indeed offered fail to act out their visions, but the men to be at present to prove the fabulous and entirely mythical dreaded or admired combine conception and percharacter of the man George Hudson; and if Joseph formauce in large and equal quantities. Mr. Hume, in whose existence we all believe, were not in Hudson is, unquestionably, one of these the world, with his remembrance of the white vest His aim may have been what the world deand the champagne dinners, at the large, ugly signates "selfish"-a low aim, but one requirhouse, near by the much-calumniated statue of the ing equal skill, with more generous efforts. The Duke of Wellington-the non-existence of Mr. Hud term "selfish" is not accurately applied in this inson, except as a name to use in print-as a "John stance. We are all "selfish." Self-satisfaction is Doe and Richard Roe”—or a general title for universally sought; but some men place their hopes railway chairmen, like Pharaoh amongst the Egyp-on a nobler object than others. Mr. Hudson detertians Cæsar amongst the heathen, and Pope mined to work out wealth, and he succeeded, with amongst the Christian Romans-might be satis- the aid of several adventitious circumstances, energefactorily demonstrated. The biography of George tically used. He abandoned the shop after it had Hudson would sell in thousands at the railway served his purpose, and, without a struggle, stepped stations; and the enterprise of the cheap pub. upon the vacant railway throne. His first victories lishing trade should not have allowed us to offer were achieved in the Midlands, a splendid line at one the idea first to the world at this late period || period, and now fast falling into ruin. His aid was in our hero's history. He was born-and where, our sought for new and for half-ruined adventures. Few information revealeth not, but the identical locality steps could have been more unwise than his acceptwill yet be established; only we trust never to see ance of the chairmanship of the Eastern Counties, "a house for Hudson" demanded on the title-page of on ordinary principles; but we do not see the inner a pamphlet, as we see to be the case in reference to machinery. The company was crippled. The shareShakspere. He was educated-to good purpose, holders were impatient. Their property had fallen whether at the academy of Mr. Squeers, or elsewhere, || in value. They seized on Mr. Hudson as a forlorn is a matter of absolutely no importance. He entered hope, and he accepted the chairmanship like a mer life in the software trade, and determined to rise. He cantile Don Quixote. Sober-minded men of business combined an energy with ideality in his character, must have seen the folly of expecting more dividends for the poetry of George Hudson takes most daring from a company because the chairman's name was flights, rivalling the verses of George Byron in the changed. They knew the improbability of Mr. intensity of their power. Its influence was magical Hudson devoting time to the details of their amongst the monied circles. He drew dividends affairs. They must have seen the number of enfrom imagination, and pictures of prosperity that gagements to which he was previously pledged. rivalled Eastlake's Hagar in the sweetness of their Men not conversant with matters of this description colouring. Greedy men hastened to throw their might have believed in the efficiency of a name to resilver into the crucible of this formidable necro- duce expenses and to increase business; but a large mancer that it might come out gold. He is the number of the shareholders must have preserved a author of many distinguished works, but chief different opinion. The shares, immediately on the amongst the numbers we place his "California accession of the "king's name," rose. His followers, at Home," in three bubbles. All his works sold who were drawn by the lustre of his deeds, hastened remarkably well. They experienced a run, and be- into the Eastern Counties. The brokers found the table came more popular than those of any rival schemer. turned, and orders to buy predominated over the orders History in these sentences is anticipated, and we to sell. The reckless prophet presided over the meetretrograde to the counter, and the draper's shop, in ings. In the wild and wilful glee of an ever-successful York, where all the noble dreams of future greatness man, he foretold success. High dividends were the originated, and York and Midlands were traced in orders of the day. High dividends were indispenblotting paper. Some audacious men believe the sable to the existence of a Hudsonian line. The trick fortunes of Hudson to have been a fabric done by of reaching them was better than Sir Robert Peel's

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plan of making the two ends of the revenue meet. || to examine particular cases in detail. The ex-Premier had no other expedient than a new time was fully occupied, and they could neither income-tax, large enough for the work, and the pub-institute a search for the unfortunate, nor delic believed in his cleverness and financial talent. vise means for their relief if they had discovered The ex-King improved on the ex-Premier. The former also put on high fares-an additional incometax; and he kept the accounts open so, that charges

which should have been deducted from revenue were placed against capital, and the present rejoiced at the cost, and over the sorrows of futurity. Not one amongst a thousand shareholders ever examined the accounts closely. They took their six and seven per cents, and grumbled. Eight, nine, or ten, were received with thanks to the talented directors, and the worthy chairman. The issue of new shares, on which an immediate bonus was obtained, that went like hard cash, right into the possession of the old shareholders, rendered the chairman and directors still more popular. The affairs of the various companies fell further into confusion; but while the capital account continued to receive additions, while new bills for new branches, and new amalgamations were obtained, the evil remained unchecked.

The general progress of many railways was involved in these dark dilemmas and bad accounting. The evil customs were not confined to the Hudsonian lines, and we do not know that they existed in them to an unusually great extent. They had even the substantial advantage of high fares; inflicted often, we think, by a mistaken policy, but still likely to be more effective in railway than in other business. They produced good dividends, sold at an excellent premium, and made many little fortunes, at the cost of the public, or by the ruin of individuals.

A strange phenomenon occurred at last amongst the children of Mammon. By that title we beg leave not to designate railway proprietors generally, but only railway speculators who invested merely for the day, to sell again to-morrow, if the market rose. This class became suddenly generous. They resolved to subscribe for a crown to the king. Many ill-earned testimonials had been presented in this land of testifying by tea and buns, dinners and port, with the aid of silver plate or gold. This testimonial to a man, because he had made a collossal fortune, was, however, unique. Men with at least equal abilities, but devoted to the work of human improvement, went without acknowledgment or reward. The diseased parts of large cities contained, amid a vast amount of wrong-doing, many who struggled for the means to live against a crushing adversity. The lonely widow sighed unhelped, and none sought to aid her weary steps. The unbefriended fatherless strove to pick a living off the streets, and few cared to show them a more profitable and better way. In paths removed from absolute misery, and yet where honest virtue hardly could breathe, there were thousands to whom time was a wilderness; while, on their right and left, to others it seemed to be a long stretch of the ancient happy paradise, where riches and honours came unsought, and dropped their pleasant fruit at pilgrims' feet, which ever only trode on flowers. Busy men of the world could scarcely be expected

them. But the best institutions were weakened

for the want of funds. Busy men had a thousand channels open, through which they could say to mercy's ministers, "Go forth and bless the world." They were carefully guarded against imposture by the unworthy, or the misapplication of their funds. All these means were partially neglected. Charitable societies were never too rich. The field of the world was never fully tilled by the benevolent. Now, indeed, we are only learning our responsibilities, and the extent of our labours. The testimonial to Mr. Hudson, in these circumstances, was a work of supererogation. It was, however, proposed, and we have no doubt that it prospered admirably; although a testimonial to Mr. Gladstone, or any other man who had made himself a millionaire, would have been equally becoming and graceful.

The adversity which swept over all interests troubled lightly for a season the Hudson lines. All railways have suffered more in the relapse than in the fever of national trial and mercantile calamity. When old and long-established houses were snapping fast and numerously, the railways still retained their traffic, and pronounced their dividends. In the storm men stopped not to count the outlay on petty and travelling expenses; but when they came to gather up and to reform those crumbs left from the struggle, they began to economise even in railway tickets. The necessary catastrophes were hastened by these circumstances. Dividends were naturally reduced. The per centage of bakers and brewers from their business was lessened, but railway proprietors considered themselves above contingencies. Tradesmen of all grades experienced a decrease in profits, but railway proprietors protested against the common lot. The Spring meetings of 1849 have, therefore, been unruly and quarrelsome. The Caledonian Company proprietors were offended because they had only three per cent. of dividend, although many of them did not take one per cent. from their ordinary business during the same term. Three per cent. is a wonderful dividend from the Caledonian. The line is oppressed with guarantees and preferential stock, in which the original proprietors generally participate. It is run through one of the most unproductive hundred miles in Scotland. From Carlisle to the eastern terminus at Edinburgh it does not pass a single town with a population of ten thousand. From the former town to the western terminus at Glasgow it is equally deficient of feeders, until it reaches the iron districts, within fifteen miles of the western city. One-half of its route is through treeless and almost houseless hills and moors, which have yet to be rendered productive by the aid of this great trunk line. We have heard shrewd men say that they would not expect the Caledonian, with its Our own heavy guarantees, to pay one per cent. opinion is in favour of ten per cent., ten years hence, if the directors can really afford to pay three per cent. now.

The railway calamities produced a panic regard- || payment of £100, not accounted for. The two

secretary, and, probably, two or three clerks, by whom the odds and ends of business-brokerage and travelling expenses-are, doubtless, charged.

say that the two last charges, whether right or wrong, cannot, from their amount and character, be taken to implicate Mr. Hudson in any fraudulent design to benefit himself and injure the company. The committee allege that Mr. Hudson acted in the capacity of trustee for the company that he

purchased the shares in the Great North of England a few days only previous to his transfer of them to the York Company, and that the latter transaction should have been done at prime cost, and not the market value.

ing the state of accounts in the various com- last charges are rubbish. Mr. Hudson's misapplipanies-a demand for statements, investigations, cation of sixpence belonging to the company would and committees. Many of these statements have be erroneous and culpable; but it is not probable not been of a gratifying character. We gave in the that he wilfully misapplied £100. The charge last number a tabular list of eighteen railway com- for brokerage appears to have been customary, panies, whose half-yearly meetings had occurred although the company had a special arrangeduring the preceding month, and on whose shares, ment with their broker; but it is obvious that if sold at present prices, a loss of thirty millions such entries might have been often made without sterling would be incurred. Reasons exist, there- the immediate consent or active concurrence of fore, for the bad humour of the shareholders;|| Mr. Hudson. This gentleman must employ a although these reasons have been partially created by their own necessities or timidity. The meeting of the York, Newcastle, and Berwick line occurred in February last. The shareholding mind of Eng-In strict justice and impartiality, we are bound to land was, ere then, tinged with suspicion. Dividends, prospects, and reports, were never absolutely satisfactory. The monarch of railways who presided was attacked on his throne. A committee was appointed to inquire into the proceedings of the directors. This committee called witnesses, examined them, and published a report, which is not cha-was instructed to deal as their buyer: that he racterised by apparent good-will towards their chairman and his cabinet of directors, yet the report | itself is not nearly so bad as the rumours by which it was preceded. The charges alleged against Mr. Hudson relate to the purchase by him of Great North of England stock, and its subsequent sale to the company, at a profit over the current market price or quotations at the day of sale. The stock sold by Mr. Hudson to the company was valued at £130,597. The overcharge made is said to be £7,185; of which £2,874 has been subsequently repaid, on the discovery by Mr. Hudson that the account was erroneousy drawn. The balance claimed by the committee is, therefore, £4,311-a small sum upon a transaction of this magnitude. The York, Newcastle, and Berwick Railway arranged to purchase the stock of the Great North of England line, at £250 per £100 | of paid capital; and the smaller shares-for the shares consisted of three classes-at corresponding prices. The transaction is an example of the great profits occasionally made by railway companies, at the public cost. The general understanding on the concession of railway bills by Parliament was, that the dividends should not exceed 10 per cent.; but when they went over that sum the public were, in some way, to obtain a benefit by the increase. The Government and the Legislature, with far more culpable neglect of the public interests than Mr. Hudson has shown towards those of the York, Newcastle, and Berwick line, adopted no proper precau-vantageous to the company. The transaction aptions against the cleverness of companies in expending money, and their theory has been universally evaded. The York, Newcastle, and Berwick may never divide ten per cent. on their outlay; but more than ten per cent. on the original cost is probable. The shareholders of companies are at present excited and quarrelsome on the topic of their dividends, but they may be assured that the non-shareholding public are the aggrieved parties, and the latter may yet deem their committee necessary. The anti-Hudson committee of the York Company also discovered a charge of £984 for brokerage, which they consider erroneous, and a

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Mr. Hudson's answer strikes us as satisfactory. He denies the trusteeship, and the understanding that he was to buy for the company, of which no minute exists. He states that he voluntarily resigned, in favour of the York Company, an annual income of far higher value than the sum disputed. He reminds the shareholders that the agreement to buy the Great North of England stock was wellknown to the public, and the terms specified in an act of parliament, obtained in July 1846, and four months previously to his sale of shares. acknowledges the existence of an agreement at the York Company's Board to purchase stock if it could be done on terms which would be advantageous to them. They were bound, by July, 1851, to take all the stock of the Great North of England at a stated, and, as we think, a high price. They could easily reckon the value of the stock to them at any previous date, and, deducting interest, ascertain what advantage, if any, would remain to them from purchases. They had the figures cast, and scales fixed, at which they might buy with profit from time to time. They did not, apparently, pay Mr. Hudson more than this fixed price, which still left the process ad

pears to have been perfected, not with Mr. Hudson alone, but with that gentleman and other parties. He appears, indeed, to have been connected in what may be styled a share-jobbing business with partners; and a stricter commercial || morality than the rule with railway dealers hitherto would alone prevent himself and partners from dealing in the stock of a company which he served in the capacity of director or chairman. A high sense of honour may seem to require some such arrangement as the self-denying clause imposed upon their members, by Scotch Town Councils and Poor-law Boards occasionally; but it would render

payable on the previous 30th of that month. The committee allege that this dividend was adopted even without the knowledge of the current halfyear's revenue, for the period only closed upon the 10th of January, whereas the dividend was decided on the 22d of December, and advertised on the 4th of January.

We are astonished to find intelligent proprietors in the company, who should have been perfectly conversant with the dates on the receipt of this dividend, only professing now to discover an irregu

the aid of directors personally conversant with || tised on the previous 4th January, and had made railways difficult to obtain. If Mr. Hudson was appointed buyer to the Company, he should have been paid for his services; but the shareholders appear not to have considered that point. If he was not appointed in that capacity, he was justified in purchasing for himself, and in selling again to the company, if the directors were willing to buy, at prices not exceeding the fixed value to their constituents. Mr. Hudson and his friends could readily have arranged to retain the shares until the date when the company, by their Act of Parliament, were compelled to purchase and||larity for which all the directors were responsible, pay them. They are said to have been charged and all the shareholders more or less liable. The above the prices quoted in the share lists, but the rapid increase, from 3s. to 9s., might have raised circumstance, even if correctly stated, is uncon- suspicion, and directed attention to the circumnected with the question. The price quoted on The price quoted on stances; and the date at which the half-year's acthe share list was obviously nominal, if complete count expired should have been known to all the reliance can be placed on the engagements of large shareholders; but they were glad to take the the company, bound by statute to purchase at a money, asking no questions, and would have asked fixed price in two years; for nobody would sell a none, if the same policy had been pursued and the stock in these circumstances, since the necessary || payments had been continued. advances could easily be obtained on its security; but if complete reliance could not be placed on the York, Newcastle, and Berwick Company, then Mr. Hudson was not less entitled than any other person to a small profit on the risk he adopted; and the profit paid was not a large per centage. It is stated, indeed, that he had a cheque for £80,000,|| while he had only advanced a common deposit on the shares; but he had evidently to pay a much larger sum within a few days from the receipt of the cheque and long before his claim was finally settled.

The meeting of the Eastern Counties occurred after that of the York, Newcastle, and Berwick. Mr. Hudson resigned, by letter, his office as chairman, and his station, necessarily, as director; but he did not appear at the meeting, although telegraphed for by his partner in the management, Mr. Waddington. The dividend to be proposed was far beneath the baffled monarch's promises and prophecies. He foresaw the coming storm, and, for once, he saw correctly into futurity; but he had|| not courage to meet the doom, even like such a king as Charles Albert, but made a commercial imitation of the late Emperor of Austria, and shut himself up in his Olmutz.

The committee of the Eastern Counties have now reported, and the report assumes a most unfavourable tone towards their late chairman; yet the errors committed by him, though unjustifiable, are common, we fear, in similar accounts. These errors are shared with the other directors, and some of them with all the shareholders. The previous directory, in August, 1845, paid a dividend of 3s. per share. The proprietary were dissatisfied, and pressed Mr. Hudson into their service. Mr. Hudson entered the company, and, along with Mr. Waddington, appears to have taken almost the exclusive management of their affairs. At the subsequent half-yearly meeting to that mentioned, namely, in February, 1846, the shareholders had merely to express themselves grateful for a dividend of 9s. per share, which the directors had determined on the previous 22d December, had adver

VOL. XVI.-NO. CLXXXV.

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The Committee, in their report, say farther, that since Mr. Hudson's acceptance of the office of chairman, the dividends have been invariably made higher than the revenue fairly permitted. The amount of what may be termed payments, in advance of revenue, is £115,278 8s. 5d. The impropriety of this course is clear, although it cannot be deemed fraudulent, and yet may be made subservient to fraud. The shareholders have got the money, and, in this respect, can have no complaint to make. In another, they have been systematically deceived regarding the value of their property, and may have been induced by the deception to abstain from reductions and measures that were necessary. It involved notoriously bad book-keeping, to which honest men should not have submitted. second charge is still more serious, for it appears that a sum of £205,294 7s. has been paid in dividends, which should have been charged on current expenses, instead of on the permanent capital accounts. The shareholders, during the period named, have received in dividends, £545,714 8s. 4d., while they should only have been paid £225,141 12s. 6d. A third charge is that a sum of £7,606 17s. 6d. is debited as parliamentary expenses, for which no vouchers are produced, because their appearance is considered to be inconvenient. The directors had, in other words, a secret-service-money fund, of which the shareholders obtain no explanation. Did they bribe Members of Parliament or how was the money, averaging very nearly £2,000 per annum, expended? A sum of £2,000, under the eccentric head "extensions," has been paid to Mr. Waddington, the chairman of the traffic committee, for extraordinary duties. This payment bears some relation to what is termed "good service money," and is voted, possibly, by the recipient to the receiver. The third charge does not affect Mr. Hudson particularly, as the payments seem to have been made by Messrs. Waddington and Duncan, for whatever purpose the first sum of £7,606 17s. 6d. was expended.

The misplacement of debits, in the second, and the drafts on future revenue, in the first charge,

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were made at Mr. Hudson's request. We have reason to fear similar complaints in other companies; and, although they are caused by erroneous conduct, yet it is possible that this course may have been dictated by a desire to promote the interests of the shareholders. The country was passing over a period of depression, and the directors may have expected, subsequently, to make good the over-drafts on revenue; and even the misplacement of debits-although the latter may be an error committed in carelessness or ignorance. This plan may have been adopted to preserve the price of their stock from undue depression. It is an unwise eating into capital that becomes sometimes a necessary evil, in the case of a private trader, but never should be followed by a public company without full and clear explanation, and is an evil in every possible case.

The rapid revulsion of feeling towards Mr. Hudson by his former flatterers, slaves, and worshippers, illustrates old maxims, and revolts common sense. Lord Stanley is said to have turned the cold shoulder towards his future official. York, Newcastle, and Berwick threaten to make the coming Government weaker, by a man with a good name. Lord Stanley's pride has come to aid his honour in this instance. He hates the heads of young houses. Even Mr D'Israeli will scarcely be safe, with all his Arabic descent, from the haughty blood of Derby. Mr. Hudson is No. 1 of his family;|| and Lord Stanley wants no members of the House of Commons short of No. 3, and that is very low. One of his qualifications regards the standing in the world of a man's grandfather. "To be come of honest forbears" will not satisfy the petted Master of Stanley, for he prefers a little dishonesty, or robbery even, in ones ancestors to the want of notoriety. Sir James Graham passes muster, because, doubtless, the gallant Grahams slaughtered men and "drove cattle" in abundance. Sir Robert Peel is hardly to be borne; for the Peels, we fear, were Saxon serfs.

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House of Commons since these investigations began; evincing his own feelings of honour in the matter, or his belief that they were to yield grave and overwhelming results.

His conduct has been violently attacked in the Times, and other newspapers. Even his commercial credit has been assailed. "The bubble," it was said, "had burst." These censures and assaults during an investigation are intolerably unjust; and the equanimity with which they have been apparently met, proves a conviction of either great weakness or great strength; for a man who, in Mincinglane phraseology, would be described as "fair meddling," must have resented them.

We can suppose a fraudulent solution of all the statements in the Eastern Counties report. Mr Hudson had friends with whom he acted. They may have bought on his and their account shares at the low figures before he went into the company or its chair; but when the negotiations for that arrangement were in progress, he may have erroneously sustained the dividends for the present, at the cost of the future; until their speculation turned round and the profits were in cash.

This is the most uncharitable supposition which can be made. The case admits nothing worse. But a man is not to be treated as guilty until the crime be established. Strong reasons exist for disowning the suspicion, and the alternative is merely that Mr. Hudson was not a better man of business than thousands who are pleased to condemn his conduct. The commercial events of the last seven years have yet to be elaborately examined. They will display a history with which the nation has little reason to be gratified. The transactions in shares and in other stocks have not been calculated to improve mercantile morality or precision in accounts. Mr. Hudson has been probably a fair example of successful speculation in his time, but he should not be immeasurably condemned for taking the common path; and still less, by the thousands who accompanied or preceded him to ruin or for

Mr. Hudson has not, we believe, attended the tune, "step by step."

THE SPIRIT'S FLIGHT.

SUGGESTED BY THE DEATH OF A VERY BEAUTIFUL AND VERY PIOUS YOUNG LADY.

WE may not grieve the spirit's flight
From darkness to unclouded light!

We cannot wish that it had stayed

Of earth-blights-earth-damps-sore afraid;
And yet, we're human-life-love, how human!
Earthy, how earthy!-strong man, frail woman—--
Clinging ever to this dull, narrow sphere,
Mocking all higher hopes, we grovel here.

We have a hope-a blessed hope!--
With sun and death 'twere fit to cope
If linked to faith-oh, fearless faith!
That in the unfathomed sea of death,
Leaps boldly from the giant rock of time,
Which it long and weary years to climb-
Floating away-away to eternity--
Breathing the blissful air of infinity!

Her's was that hope, and her's that faith

Which lulls the stormy waves of death.
Oh! how she wished to be away-

Away from night to lasting day;

From its love and hate-its joy and sorrow-
Now she knows no night-fears no to-morrow.
Eternal! eternal!-changeless--for ever

Is the joy of believers-" fading never!"

Cease to repine--she is happier far

Than ye e'er could have made her than ye are.
Wherefore be downcast ?-strive to be with her:-
When ye leave this pilgrim-world for ever!
Grace is abounding!-Heaven without limit!-
Struggle on!--still on!-till ye are in it!
And that hope never flees from the faith-girt soul,
But illumines the path to the spirit-goal!

COLIN RAE BROWN.

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