Series 4 > Scottish industrial history

THE NORTH BRITISH RAILWAY INQUIRY I75
Then we were at the conference which you had with Mr.
Hodgson when the state of matters was brought under his
notice and he desired you to make the entries in the books so
as to pay the 2% per cent, dividend. Were the entries which I
have gone over in detail made by you under his instructions?
- Yes; or with his approval, - particularly the Line Renewals.
That was certainly a novelty of his.
You specially mention that as done under his instructions?-
Yes; he was very anxious that I should properly understand
that. The other entries were just left to my book-keeper.
In July 1865, January 1866, and July 1866, there was a continua¬
tion of the same system. In each of these half years was there a
similar conference between you and Mr. Hodgson, showing
the difficulties of your position, and that the accounts must be
cooked to bring out the dividend wanted? - That was always
the case.
Was that done on the same principle that had been adopted in
January 1865, and always under his specific instructions?-
Yes.
Did you receive specific notice to make in each half-year a
specific dividend? - Yes.
All the four half-years? - Yes.
And this half-year your orders were to make a three per cent,
dividend as before? - Yes.
At any of these half-years, were any of the other Directors, or
Mr. Rowbotham, specially made cognizant of the state of your
accounts, or with the changes that had been made, or was it
brought under the notice of the Auditors by you or any of
your subordinates? - No. I never brought anything under the
notice of the Auditors in the books. The books were there to
speak for themselves; and as regards any of the other Directors
being informed of the state of matters, I am not in a position to
speak to that.
Have the Annual Accounts as laid before the Shareholders been
systematically cooked, so as to mislead them as to the true
position of the Revenue and Expenditure of the Company,
and simply to exhibit an ability to pay the particular Dividend
desired by Mr. Hodgson, regardless of the free revenue of the