Volume Six - Pre-Victorian to the Present Day - Select Aspects - Acts and disputes . . .

When Messrs Smith & Knights own Rails were put up for sale at the Auction, Mr Tomlinson on behalf of the Taff Vale Co contended that these Rails had been bought out of Penarth Capital and that they therefore (under the lease) belonged to the Taff Vale Co. The Penarth Co replied that the Rails in question belonged absolutely to Messrs Smith & Knight and were not paid for out of the Penarth Capital, but were part of the "seizure" of Messrs Smith & Knight's Plant that was made by the Penarth Co I think in 1865 or 1864.

The money for which these Rails were sold viz £134:7:2d (c.£134.36p) remained undisposed for many years, but eventually on 2nd October 1883 it was deposited at the Brecon Old Bank Cardiff, in the names of Mr Inskip the then chairman of the T.V.R. and Lt Col Windsor Clive as Chairman of the Penarth Co. The Penarth Co proposed that this disputed sum should be divided between the two Companies but the offer was not accepted." [142]

During the 1880's numerous letters were exchanged between the Penarth Co. and the TVR, both parties maintaining their respective positions on the matter i.e. that the money was due to them. In 1883 the money was moved to a deposit account at the bank and interest began to accrue. All seemed to be forgotten until the 1890's when the matter was raised and once again the Board of Directors of each Company became entrenched and deadlock prevailed.

By April 1907 the secretary for the TVR, Mr. Edward Edwards wrote to Mr. L. G Williams of the Penarth Co. at his office, 32 Charles Street, Cardiff saying: "I have had the matter looked into but cannot find anything bearing on the case, and shall be glad if you will give me some further information to enable me to trace the transaction referred to."

Mr. Williams wrote back and enclosed a copy of a letter dated 15th August 1866 addressed; "To the Board of Directors of the Taff Vale Railway Company - Gentlemen, I consider it necessary to invite your attention to a question which in my opinion arises out of the proposed sale of Plant at Penarth.

I have reasons to believe that the cost of some of the articles to be sold are included and form part of that Capital upon which this Company are paying or must pay 4½ per cent on the amount realised at the sale, or in other words I contend that any article charged in their capital amount provided it is or will form a portion of that capital upon which this Company must pay the 4½ per cent every such article is the property of this Company and ought not to be sold. I am, Gentlemen, Your most Obedient Servant, George Fisher."