railway Clearing House was established in the middle of the last century to settle and adjust the receipts arising from railway traffic within, or partly within, the United Kingdom, and passing over more than one railway, booked or invoiced at throughout rates of fares. From a small beginning in 1842, when its staff consisted of only four clerks, its operations have so extended that it is now located in an immense building near Euston Station in London, and employs the services of over two thousand persons. Before its establishment, the traveller whose journey necessitated his pissing over different lines belonging to various companies, was required to take a fresh ticket in respect of each different line he passed over. To obviate this inconvenience, which also occurred in the case of consignment of goods, the companies began to book the public over the various lines with one booking, and endeavoured to safeguard their mutual interests by making these through bookings the subject of separate accounts against each other. This system failed, however, as the peculiar nature of the services which one company might render to another made it difficult to arrive at a basis for their representation in an agreed sum of money ; and beyond this, the principle and methods of keeping the accounts would differ in the case of each company. To meet this position was the Clearing House established, and it is now directed by a committee of delegates appointed by the com panies which are parties to the clearing system.
The whole of the accounts in respect of through bookings, and of mutual dealings of a like nature, are now made up for the purposes of clearance by the Clearing House itself, the main object, as in other clearing systems, being the elucidation of a balance as between the various companies. Should any dispute arise as to the accounts, the committee's decision is conclusive, and binding upon the companies concerned. The Clearing house also acts as a centre for the mutual consideration by the railway companies of any matters affecting their interests. Not only does it exist to settle accounts and disputes as between its members, but also to look after the interests and maintain the rights of railway companies generally. It supervises the arrangements for passenger traffic, classifies the goods traffic, deals with the rules and regulations for the working of railways, and most usefully to the public, has made itself, with its extensive machinery, the responsible means for the recovery of lost luggage.
Stock Exchange.—The operations of the Clearing house are confined in Stock Exchange business to transactions in certain stocks only, and limited also to bargains transacted with members of the Stock Exchange who use the Clearing House. Besides this limitation, the system is a purely volun tary one, and a broker or jobber may decline to avail himself of its advan tages. In practice the stocks most usually the subject of clearance are those of a speculative and active nature, the result being that probably the greatest proportion of Stock Exchange transactions pass through the Clearing House, as it is in such stocks that most dealings are effected. The principle
of Stock Exchange clearance is the same as that of clearance in banking and railways. The object is to obviate the necessity for multitudinous deliveries of stocks and shares and payments in respect thereof; and as all these deliveries and payments are to and by the members of a limited circle, the object is effected by taking an account of the transactions, striking a balance, and making the latter the subject for delivery or payment as the case may be. The Clearing House itself has no concern with the actual stocks or with money, it only deals with balance-sheets and tickets. The latter show the result of the balances, and the person who is found to be required to deliver stock is given a ticket showing the separate amounts of the stock into which his balance has been divided, and indicating the person or persons to whom delivery of the balance must be made. Those whose balance is in favour of their receiving stock, have given to them a corresponding ticket. Delivery of stock is accordingly in due course made, and payment passes therefor at the same time.
OLUB13.—Clubs are generally either "proprietary " or "members." In the former case the club premises and furnishing belongs to a proprietor who allows the members of the club to have the use thereof in return for their entrance fees and subscriptions ; in the latter case, the members are themselves the proprietors of the club. A club is merely a voluntary association, as distin guished from a partnership or joint-stock company ; it is, however, convenient in many cases to register the club as a joint-stock company with the liability of its members limited by guarantee—the capital of such a company is furnished by the entrance fees and subscriptions. We will here deal with voluntary clubs, those other than proprietary.
Generally.—As between the members, the rules of the club are binding upon them and furnish in fact the constitution of the club ; whether the acts of a managing body of a club, such as the committee, are w ithin the powers conferred upon it by the rules may be the subject of a decision of the Court, and if the acts are beyond its powers, the Court will restrain them. Every member, if affbrded reasonable opportunity to see the rules, will be presumed by the law to be acquainted with them. A member who is not in arrest with his subscriptions, and owes no duty to the club, may resign at any time, and it is immaterial whether or no his resignation is accepted. Should any part of the members of a club wrongfully possess themselves of its assets, any member may take proceedings against them in respect thereof on behalf of the members generally, and the other members need not join him as plaintiff's in the action.