Volume Six - Pre-Victorian to the Present Day - Select Aspects - The Penarth Harbour, Dock & Railway Co. dispute with Messrs. Smith, Knight & Co. . .

Messrs. Smith and Knight have made a joint claim against the Penarth Harbour Dock and Railway Company in respect of work done by them, and of plant and materials belonging to them seized by the company, and of stone quarried by the company from certain quarries seized or taken possession of by the company, the aggregate of such claim exclusive of interest, being £137,163 2s. 7¼d.

Messrs. Smith and Knight may also be entitled to a further claim against the company, in respect of the work comprised within their contract and done by the company after they took possession ; but this cannot be ascertained for want of an account of the expenditure, which has not been furnished by the company, and by reason of the measurements of the works not having been yet completed. The company have recently (the 15th inst.) sent in a statement of a counter claim against Messrs. Smith and Knight, without giving any details or particulars, but claiming an excess of £118,216 7s. 8d. This claim is wholly repudiated by Messrs. Smith and Knight.

Messrs. Smith and Knight are under joint liability to an amount of upwards of £30,000, but for the purposes of the present arrangement their joint liabilities are agreed to be taken at that sum which is to be treated as a fixed and ascertained amount. Messrs. Smith and Knight intend to prosecute their claim against the company, and it is proposed that they shall take the first £35,000 of what may be recovered or received from the company, and shall pay and discharge all their joint liabilities and also all the cost and expenses of any action, suit, or other proceeding against the Penarth Harbour Dock and Railway company to obtain a settlement of their claim. That Smith, Knight, and Co. (Limited) shall then be entitled to receive £10,000 out of what may be recovered, and that any surplus beyond that sum shall be equally divided between Smith, Knight, and Company (Limited), and Messrs. Smith and Knight.

In consideration of this Smith, Knight and Company (Limited) are forthwith to release Mr. Smith and Mr. Knight respectively from all debts, claims, or demands in respect of the calls made on the 20,000 shares or otherwise, and to indemnify them respectively from all future calls in respect of the 20,000 shares. Messrs. Smith and Knight to have full power to refer their claims against the Penarth Harbour, Dock and Railway Company to arbitration, and also to compromise and settle the same without arbitration upon such terms and in such manner as they may in their judgement consider most advantageous and desirable.