The exposure of Hudson's misdeeds elsewhere, and the renewed necessity to make the M&CR pay its way following the repudiation of Hudson's lease led to an investigation of the affairs of the M&C by a committee from which directors were excluded. The committee reported multiple failings of previous and current directors of the company, in some cases involving 'open disregard of the law': borrowing before the specified number of shares had been fully paid; misbooking of interest on working capital to capital rather than revenue; failure to identify and book outstanding liabilities against the revenue account; failure to make any allowance for depreciation; appointing company officers on the basis of nepotism, cronyism and patronage rather than fitness for the post; favouritism in the setting of rates for coal traffic (the wisdom of colliery owners being directors - and of allowing directors to influence specific negotiations - was questioned ); failure to state clearly the roles and responsibilities of company officers;division of Company legal work piecemeal between too many solicitors (with the result that "no one person seems to have had a full and accurate knowledge of ...transactions involving the Crown Street station")