Gossip in the First Decade of Victoria's Reign

Punch drew a harrowing picture, of the brokers being put into Windsor Castle, and of a paragraph which might appear in the Court Circular: “Yesterday, Her Gracious Majesty visited Prince Albert at her own Bench.” But matters did not go so far, for on 14 Jan. next following, the Prince vouchsafed an answer to the Vestry, in which he denied his liability in toto, acting on the advice of the Attorney and Solicitor General, and Sir Thomas Wilde; and, after crushing the poor vestry, the letter winds up thus: “And His Royal Highness feels himself at liberty to take the course which is most satisfactory to his own feelings, and to pay, as a voluntary contribution, a sum equal to the rate which would have been annually due, had the legal liability of His Royal Highness been established. It is also His Royal Highness’s intention that the payment of the sum referred to should commence from the year 1841.”

And so it has continued to the present day, if we may credit the authority quoted in the accompanying cutting from the Globe of 8 June, 1901: “How the King Pays Taxes. – It is not generally known (says the Free Lance) that the King pays taxes under protest – that is to say, His Majesty, like Queen Victoria, claims to be exempt from impost, and yet is willing to contribute, without prejudice, to the rates. For instance, part of the Windsor farm land lies within the radius of the borough. The municipal authority issues demand notes for the rates. The Royal officials respond by paying a sum just under the amount requested, and the collector is satisfied. There is no question of going to law, for how can the King be summoned in his own Courts?”

On 31 Oct. Lieut. Waghorn practically demonstrated the feasibility of his “Overland Route” to India. The regular Mail and his Express arrived at Suez by the same steamer on 19 Oct. The Express was given to a man on a dromedary, who, stopping nowhere, entered Alexandria on the 20th. The Express was delivered to Mr. Waghorn, who started at 11 o’clock. He had been waiting on board an Austrian steamer, which had remained in quarantine, so that he arrived at Trieste in free pratique. He landed, however, at Divina, twelve miles nearer London than Trieste, and hurried through Austria, Prussia, Baden, and Bavaria, with a passport ready viséd by the representatives of those countries. He reached Mannheim in 84 hours, proceeded by a steamer to Cologne, thence by special train to Ostend, by boat to Dover, to London by railway, and arrived at 4.30 in the morning of the 31st. The news from India thus brought, was published in all the London papers, which were in Paris before the Mail from Marseilles was on its way to London.

CHAPTER XXVI

The Railway Mania – Deposit of plans.

The accompanying illustration from Punch (18 Oct.) justly holds up to ridicule the Railway Mania, which might then be said to have been at its height. It is called “The March of Speculation. – ‘This is the young Gent, as takes my Business, Mem. I’m agoin’ into the Railway – Director Line myself.’”

As a proof of this Madness, see this paragraph: “Oct. 25. During the past week there were announced, in three newspapers, eighty-nine new schemes, with a capital of £84,055,000; during the month, there were 357 new schemes announced, with an aggregate capital of £332,000,000.”

On 17 Nov. the Times published a table of all the railway companies registered up to the 31st October, numbering 1,428, and involving an outlay of £701,243,208. “Take away,” it said, “£140,000,000 for railways completed, or in progress, exclude all the most extravagant schemes, and divide the remainder by ten, can we add, from our present resources, even a tenth of the vast remainder? Can we add £50,000,000 to the railway speculations we are irretrievably embarked in? We cannot, without the most ruinous, universal and desperate confusion.”

Here is a Parody on the situation, 1 Nov.:

“There was a sound, that ceased not day or night,Of speculation. London gathered thenUnwonted crowds, and moved by promise bright,To Capel Court rushed women, boys and men,All seeking railway shares and scrip; and whenThe market rose, how many a lad could tell   With joyous glance, and eyes that spake again,’Twas e’en more lucrative than marrying well; —When, hark, that warning voice strikes like a rising knell.Nay, it is nothing, empty as the wind,But a “bear” whisper down Throgmorton Street;Wild enterprise shall still be unconfined;No rest for us, when rising premiums greetThe morn, to pour their treasures at our feet; —When, hark! that solemn sound is heard once more,The gathering bears its echoes yet repeat —’Tis but too true, is now the general roar,The Bank has raised her rate, as she has done before.And then, and there were hurryings to and fro,And anxious thoughts, and signs of sad distress,Faces all pale, that, but an hour agoSmiled at the thought of their own craftiness;And there were sudden partings, such as pressThe coins from hungry pockets, mutual sighsOf brokers and their clients. Who can guessHow many a “stag” already panting flies,When upon times so bright, such awful panics rise?”

Mr. Francis, in his History of the English Railway, says: “The daily press was thoroughly deluged with advertisements; double sheets did not supply space enough for them; double doubles were resorted to, and, then, frequently, insertions were delayed. It has been estimated that the receipts of the leading journals averaged, at one period £12,000 and £14,000 a week, from this source. The railway papers, on some occasions, contained advertisements that must have netted £700 to £800 on each publication. The printer, the lithographer, and the stationer, with the preparation of prospectuses, the execution of maps, and the supply of other requisites, also made a considerable harvest.

“The leading engineers were, necessarily, at a great premium. Mr. Brunel was said to be connected with fourteen lines, Mr. Robert Stephenson with thirty-four, Mr. Locke with thirty-one, Mr. Rastrick with seventeen, and other engineers with one hundred and thirteen.

“The novelist has appropriated this peculiar portion of commercial history, and, describing it, says gravely and graphically: ‘A colony of solicitors, engineers and seedy accountants, settled in the purlieus of Threadneedle Street. Every town and parish in the Kingdom blazed out in zinc plates over the doorways. From the cellar to the roof, every fragment of a room held its committee. The darkest cupboard on the stairs contained a secretary, or a clerk. Men, who were never seen east of Temple Bar before, or since, were, now, as familiar to the pavement of Moorgate Street, 21 as the stockbrokers; ladies of title, lords, Members of Parliament, and fashionable loungers thronged the noisy passages, and were jostled by adventurers, by gamblers, rogues and imposters.’

“The advantages of competition were pointed out, with the choicest phraseology. Lines which passed by barren districts, and by waste heaths, the termini of which were in uninhabitable places, reached a high premium. The shares of one company rose 2,400 per cent. Everything was to pay a large dividend; everything was to yield a large profit. One railway was to cross the entire Principality without a single curve.

“The shares of another were issued, the company formed, and the directors appointed, with only the terminal points surveyed. In the Ely railway, not one person connected with the country through which it was to pass, subscribed the title deed.

“The engineers who were examined in favour of particular lines, promised all and everything in their evidence. It was humourously said of them, ‘they plunge through the bowels of mountains; they undertake to drain lakes; they bridge valleys with viaducts; their steepest gradients are gentle undulations; their curves are lines of beauty; they interrupt no traffic; they touch no prejudice.’

“Labour of all kinds increased in demand. The price of iron rose from sixty-eight shillings to one-hundred-and-twenty per ton. Money remained abundant. Promoters received their tens and twenties of thousands. Rumours of sudden fortunes were very plentiful. Estates were purchased by those who were content with their gains; and, to crown the whole, a grave report was circulated, that Northumberland House, with its princely reminiscences, and palatial grandeur, was to be bought by the South Western. Many of the railways attained prices which staggered reasonable men. The more worthless the article, the greater seemed the struggle to obtain it. Premiums of £5 and £6 were matters of course, even where there were four or five competitors for the road. One company, which contained a clause to lease it at three-and-a-half per Cent., for 999 years, rose to twenty premium, so mad were the many to speculate.

“Every branch of commerce participated in the advantages of an increased circulation. The chief articles of trade met with large returns; profits were regular; and all luxuries which suited an affluent community, procured an augmented sale. Banking credit remained facile; interest still kept low; money, speaking as they of the City speak, could be had for next to nothing. It was advanced on everything which bore a value, whether readily convertible, or not. Bill brokers would only allow one-and-a-half per cent. for cash; and what is one-and-a-half to men who revelled in the thought of two hundred? The exchanges remained remarkably steady. The employment of the labourer on the new lines, of the operative in the factory, of the skilled artisan in the workshop, of the clerk at the desk, tended to add to the delusive feeling, and was one of the forms in which, for a time, the population was benefitted. But, when the strength of the Kingdom is wasted in gambling, temporary, indeed, is the good, compared with the cost. Many, whose money was safely invested, sold at any price, to enter the share market. Servants withdrew their hoards from the savings banks. The tradesman crippled his business. The legitimate love of money became a fierce lust. The peer came from his club to his brokers; the clergyman came from his pulpit to the mart; the country gentleman forsook the calmness of his rural domain for the feverish excitement of Threadneedle Street. Voluptuous tastes were indulged in by those who were previously starving. The new men vied with the old, in the luxurious adornments of their houses. Everyone smiled with contentment; every face wore a pleased expression. Some, who, by virtue of their unabashed impudence, became provisional committee-men, supported the dignity of their position in a style which raised the mirth of many, and moved the envy of more. Trustees, who had no money of their own, or who had lost it, used that which was confided to them; brothers speculated with the money of sisters; sons gambled with the money of their widowed mothers; children risked their patrimony; and it is no exaggeration to say, that the funds of hundreds were surreptitiously endangered by those in whose control they were placed.”

But Railways had been projected, and, in order to carry them through, the plans must, by law, be deposited with the Board of Trade, before, or on 30 Nov.; and, on this occasion, there was a scene, which is very well told in the Annual Register:

“An extraordinary scene occurred at the office of the Railway Department of the Board of Trade on this day (Sunday, 30 Nov.), being the last day on which the plans of the new projects could be deposited with the Railway Board, in order to enable Bills to authorise them to be brought before Parliament, in compliance with the Standing Orders.

“Last year, the number of projects, in respect of which plans were lodged with the Board of Trade, was 248; the number, this year, is stated to be 815. The projectors of the Scotch lines were mostly in advance, and had their plans duly lodged on Saturday. The Irish projectors, too, and the old-established companies, seeking powers to construct branches, were among the more punctual. But upwards of 600 plans remained to be deposited. Towards the last, the utmost exertions were made to forward them. The efforts of the lithographic draughtsmen and printers in London were excessive; people remained at work, night after night, snatching a hasty repose for a couple of hours, on lockers, benches, or the floor. Some found it impossible to execute their contracts; others did their work imperfectly. One of the most eminent was compelled to bring over four hundred lithographers from Belgium, and failed, nevertheless, with this reinforcement, in completing some of his plans. Post horses and express trains, to bring to town plans prepared in the country, were sought in all parts. Horses were engaged days before, and kept, by persons specially appointed, under lock and key. Some railway companies exercised their power of refusing express trains for rival projects, and clerks were obliged to make sudden and embarrassing changes of route, in order to travel by less hostile ways. A large establishment of clerks were in attendance to register the deposits; and this arrangement went on very well, until eleven o’clock, when the delivery grew so rapid, that the clerks were quite unable to keep pace with the arrivals. The entrance hall soon became inconveniently crowded, considerable anxiety being expressed lest twelve o’clock should arrive ’ere the requisite formalities should have been gone through. This anxiety was allayed by the assurance that admission into the hall before that hour, would be sufficient to warrant the reception of the documents.

“As the clock struck twelve, the doors of the office were about to be closed, when a gentleman with the plans of one of the Surrey railways arrived, and, with the greatest difficulty, succeeded in obtaining admission. A lull of a few minutes here occurred; but, just before the expiration of the first quarter of an hour, a post chaise, with reeking horses, drove up, in hot haste, to the entrance. In a moment, its occupants (three gentlemen) alighted, and rushed down the passage, towards the office door, each bearing a plan of Brobdingnagian dimensions. On reaching the door, and finding it closed, the countenances of all drooped; but one of them, more valorous than the rest, and prompted by the bystanders, gave a loud pull at the bell. It was answered by Inspector Otway, who informed the ringer it was now too late, and that his plans could not be received. The agents did not wait for the conclusion of the unpleasant communication, but took advantage of the door being opened, and threw in their papers, which broke the passage lamp in their fall. They were thrown back into the street. When the door was again opened, again went in the plans, only to meet a similar fate.

“In the whole, upwards of 600 plans were duly deposited.”

CHAPTER XXVII

Collapse of the Railway Mania – Sheriff’s Officers – Hudson, the Railway King – First “Ethiopian Serenaders” – The Nigger Minstrel Craze – Commencement of Irish Famine – “The Battle of the Gauges” – Railway Surveyors – Suicide of Haydon, the painter.

Although the collapse of the Railway Mania really began in 1845, its effects were not fully felt until the commencement of this year, when 10 per cent. on Railway Capital had to be lodged with the Accountant General, within seven days from the assembling of Parliament, which in this case meant the 29th Jan. It really received its first serious wound when the Bank of England rose its rate of discount on 16 Oct., but it was only when the calls had to be paid, that it was found how rotten the whole concern was, as the Marquis of Clanricarde, in a speech, plainly exposed. Said he: “One of the names to the deed, to which he was anxious to direct their attention, was that of a gentleman, said to reside in Finsbury Square, who had subscribed to the amount of £25,000; he was informed no such person was known at that address. There was, also, in the Contract deed, the name of an individual who had figured in the Dublin and Galway Railway Case, who was down for £5,000, and who was understood to be a half-pay officer, in the receipt of £54 a year, but who appeared as a subscriber in different railway schemes to the amount of £41,500. The address of another, whose name was down for £12,200, was stated to be in Watling Street, but it appeared he did not reside there. In the case of another individual down for £12,500, a false address was found to have been given. Another individual, whom he would not name, was a curate in the parish in Kent; he might be worth all the money for which he appeared responsible in various railway schemes, but his name appeared for £25,000 in different projects, and stood for £10,000 in this line. Another individual, who was down for £25,000, was represented to be in poor circumstances. A clerk in a public company was down for upwards of £50,000. There were several more cases of the same kind, but he trusted he had stated enough to establish the necessity of referring the matter to a Committee. There were, also, two brothers, sons of a charwoman, living in a garret, one of whom had signed for £12,500, and the other for £25,000; these two brothers, excellent persons, no doubt, but who were receiving about a guinea and a half between them, were down for £37,000.”

The story of the collapse is so admirably told by Mr. Francis, that I prefer giving his version than writing of it myself:

“Money was scarce, the price of stock and scrip lowered; the confidence of the people was shaken, and a vision of a dark future on every face. Advertisements were suddenly withdrawn from the papers, men of note were seen no more as provisional committeemen; distrust followed the merchant to the mart and the jobber to the Exchange. The new schemes ceased to be regarded; applications ceased to be forwarded; premiums were either lowered, or ceased to exist. Bankers looked anxiously to the accounts of their customers; bill brokers scrutinised their securities; and every man was suspicious of his neighbour.

“But the distrust was not confined to projected lines. Established railways felt the shock, and were reduced in value. Consols fell one and a half per cent.; Exchequer bills declined in price, and other markets sympathised. The people had awoke from their dream, and trembled. It was a national alarm.

“Words are weak to express the fears and feelings which prevailed. There was no village too remote to escape the shock, and there was, probably, no house in town some occupant of which did not shrink from the morrow. The Statesman started to find his new Bank Charter so sadly and so suddenly tried; the peer, who had so thoughtlessly invested, saw ruin opening to his view. Men hurried with bated breath to their brokers; the allottee was uneasy and suspicious, the provisional committeeman grew pale at his fearful responsibility; directors ceased to boast their blushing honours, and promoters saw their expected profits evaporate. Shares which, the previous week, were a fortune, were, the next, a fatality, to their owners. The reputed shareholders were not found when they were wanted; provisional committeemen were not more easy of access.

“One Railway advertised the names and addresses of thirty – none of whom were to be heard of at the residences ascribed to them. Letters were returned to the Post Office day after day. Nor is this to be wondered at, when it is said that, on one projected line, only £60 was received for deposits, which should have yielded £700,000.

“It was proved in the Committee of the House of Commons, that one subscription list was formed of ‘lame ducks of the Alley’; and that, in another, several of the Directors, including the Chairman, had, also, altered their several subscriptions to the amount of £100,000, the very evening on which the list was deposited, and that five shillings a man was given to anyone who would sign for a certain number of shares.

“Nothing more decidedly marked the crisis which had arrived, than the fact that everyone hastened to disown railways. Gentlemen who had been buried in prospectuses, whose names and descriptions had been published under every variation that could fascinate the public, who had figured as Committeemen, and received the precious guineas for their attendance, were eager to assure the world that they were ignorant of this great transgression. Men who, a month before, had boasted of the large sums they had made by scrip, sent advertisements to papers denying their responsibility, or appealed to the Lord Mayor to protect their characters. Members of Parliament who had remained quiet under the infliction, while it was somewhat respectable, fell back upon their privileges, when they saw their purses in danger. There is no doubt that an unauthorised use of names was one feature of fraudulent companies, and that, amidst a list of common names, it was thought a distinguished one might pass unnoticed. The complaints, therefore, of those who were thus unceremoniously treated, were just; but the great mass of denials emanated from persons who, knowingly, encountered the risk, and, meanly, shrunk from the danger.

“It is the conviction of those who were best informed, that no other panic was ever so fatal to the middle class. It reached every hearth, it saddened every heart in the metropolis. Entire families were ruined. There was scarcely an important town in England but what beheld some wretched suicide. Daughters, delicately nurtured, went out to seek their bread; sons were recalled from academies; households were separated, homes were desecrated by the emissaries of the law. There was a disruption of every social tie. The debtors’ jails were peopled with promoters; Whitecross Street was filled with speculators; and the Queen’s Bench was full to overflowing. Men, who had lived comfortably and independently, found themselves suddenly responsible for sums they had no means of paying. In some cases, they yielded their all, and began the world anew; in others, they left the country for the continent, laughed at their creditors, and defied pursuit. One gentleman was served with four hundred writs; a peer, when similarly pressed, when offered to be relieved from all liabilities for £15,000, betook himself to his yacht, and forgot, in the beauties of the Mediterranean, the difficulties which had surrounded him. Another gentleman who, having nothing to lose, surrendered himself to his creditors, was a director of more than twenty lines. A third was Provisional Committeeman to fifteen. A fourth, who commenced life as a printer, who became insolvent in 1832 and a bankrupt in 1837, who had negotiated partnerships, who had arranged embarrassed affairs, who had collected debts, and turned his attention to anything, did not disdain, also, to be a Railway promoter, a Railway director, or to spell his name in a dozen different ways.”

The Sheriff’s Officers had a busy time of it, and Punch, in “Going Out Arresting,” gives the following colloquy between two of the fraternity:

“‘Vell, Aaron, my tear, have yer ’ad any sport?’

“‘Pretty vell, I’ve bagged four Allottees, and two Provisionals!’”

But a notice of the Railway Mania would be very incomplete without a mention of George Hudson, the Railway King. He was born at Howsham, a village near York, in March, 1800; was apprenticed to a draper in York; and, subsequently, became principal in the business; thus, early in life, becoming well off, besides having £30,000 left him by a distant relative. In 1837, he was Lord Mayor of York; and, the same year, was made Chairman of the York and North Midland Railway, which was opened in 1839. In 1841, he was elected Chairman of the Great North of England Company; and, afterwards, held the same position in the Midland Railway Company. He speculated largely in railways, and, in the Parliamentary return, already alluded to, his subscriptions appear as £319,835.

He came to London, and inhabited the house at Albert Gate, Knightsbridge (now the French Embassy), where he entertained the Prince Consort, and the aristocracy generally. He was elected M.P. for Sunderland in Aug., 1845, and again served as Lord Mayor of York in 1846. The Railway smash came; and, year by year, things went worse with him, until, early in the year 1849, he had to resign the Chairmanship of the Eastern Central (now Great Eastern), Midland, York, Newcastle and Berwick, and the York and North Midland Railway Companies. He went abroad, where he lived for some time, and tried, unavailingly, to retrieve his fortune. In July, 1865, he was committed to York Castle for Contempt of the Court of Exchequer, in not paying a large debt, and was there incarcerated till the following October.