The Sun.
London, England, 1855-08-01 00:00:00

THE 913+K LON'DO'N,_WEDNESDAY PYMNfiNvtl, AUGTYST 1 1868.

gentlemen who considered the subject were '
mite willing to risk their one or two hundrer
rounds each, simply experimentally, but would no
..isk ail their fortunes to a partnership ; and a:
inquiry was made whether for this purpose the
usual charges for a charter, 1,0001., would be re
initted. They received an official answer thai
nothing would be remitted, and the public were
deprived of the benefit, not only of what the pro
posed company might have done of itself, but of the
general reduction of the ironmongers' charges, which
would have been produced. To take another
illustration : some gentlemen having looked int(
the evidence in respect to the distribution of
sewage or town manures by steam power and
pipes, and, yet after the method adopted by Mr.
MECHI, saw sufficient evidence of the success and
of important results, to induce them to try it by
la small company for the application of the sewer-
age of a small town. But it was found that a
trial farm could be laid down on an adequate scale
for almost two thousand pounds, but the half-
dozen
persons must either subscribe the amount
as a gift, which would be beyond their inclina-
tions, or they must beyond the loss of the entire
sum risk in a partnership the loss of their
whole fortunes ;—or if they made a joint-stock
company affair of it, they must either get an Act
of Parliament or a Charter, which would costa at
least a thousand pounds, and would take by an-
ticipation a large share of the profits obtainable
by a moderate success. These are the examples
of a crowd of undertakings, which (even in their
first failures) are of the highest public advantage,
but to which the present state of the law presents
obstructions which in a great majerity of in-
stances are insuperable. In such instances as
those above cited, the most safe trials with a view
to observation and commercial success, would, in
the first instance, at least, be on such compara-
tively small scales as those stated ; but the state of
the law creates the temptation on the part
of the inventor to magnify the promises
of certainty, in order to attain the only legal
means of trial—those under limited liabilities—
by works of a magnitude to diminish the propor-
tionate cost of the privilege for undertaking them.
An outlay of five thousand pounds only in some
iostances would be provident, but the Board of
Trade's proposed limitation of the privilege to
enterprises for 25,0001. would have created the
necessity of a fivefold, and, in the first in-
stance, improvident, expenditure—increasing the
chances of misapplication and failure.
Mr. EDWARD STRUTT, and other large capital-
ists, declares that money is always to be found for
really provident undertakings ; but nothing in
their view is provident which is not on a scale for
great capitalists, to whom undertakings like those
cited, though wise and beneficial, and eventually
commercially productive, are beneath the dignity
of their attention or their comprehension. Not
one shilling has Mr. STRUTT, or such as he, given
in aid of any one of them, nor would they be
entertained in the " sweating-room" of the Messrs.
JONES LLOYD. But Mr. WILLIAM BROWN Should
know that the strikingly successful progress of
manufacturers in America, a progress reported
upon by Mr. WHITWORTH, and the other Com-
missioners of Inquiry at the Exposition of Ameri-
can Industry, as being in new and various direc-
tions, far in advance beyond Lancashire itsel
(which is only superior to America in textile
fabrics), are due to beginnings with small means,
readily and cheaply combined on the principle of
limited liability. The following statement is
cited by Mr. JOHN MILL on this question.
" According to Mr. CAREY, nowhere is associa-
tion so little trammelled by regulations as in New
England ; the consequence of which is, that it is
carried to a greater extent there, and particularly
in Massachussetts and Rhode Island, than in any
other part of the world. In these States the
soil is covered with compagnies anonymes—
chartered companies—for almost every conceiv-
able purpose. Every town is a corporation for
the management of its roads, bridges, and schools,
which are, therefore, under the direct control
of those who pay for them, and are conse-
quently well managed. Academies and churches,
Lyceums, and Libraries, Savings Fund Societies
and Trust Companies exist in numbers propor-
tionate to the wants of the people, and all are
corporations. Every district has its local bank,
of a size to suit its wants, the stock of which is
owned by the small capitalists of the neighbour-
hood, and managed by themselves ; the conse-
quence of which is, that in no part of the world
is the system of banking so perfect, so little liable
to vibration in the amount of loans—the necessary
effect of which is, that in none is the value of
property so little affected by changes in the amount
or value of the currency, resulting from the
movements of their own banking institutions."
"In the two States to which we have
particularly referred, they are almost 200 in num-
ber. Massachussetts alone offers to our view 53
insurance offices, of various forms, scattered
through the state, and all incorporated. Factories
are incorporated, and are owned in shares; and
every one that has any part in the management of
their concerns, from the purchase of the raw ma-
terial to the sale of the manufactured article, is a
part owner, while every one employed in them has
a prospect of becoming one by the use of pru-
dence, exertion, and economy. Charitable asso-
ciations exist in large numbers, and all are incor-
porated. Fishing vessels are owned in shares by
those who navigate them, and the sailors of a whal-
ing ship depend in a great degree, if not altoge-
ther, upon the success of the voyage for their com-
pensation."
Mr. CAREY adds :--" A careful examination of
the systems of the several states can scarcely, we
think, fail to convince the reader of the advantage
resulting from permitting men to determine
among themselves the terms upon which they will
associate, and allowing the associations that may
be formed to contract with the public as to the
terms upon which they will trade together,
whether of the limited or unlimited liability of
partners." "I concur in thinking," says Mr.
JOHN MILL, " that to this conclusion science and
legislation must ultimately come l"

Mr. STRUTT, vindicating the authority of Mr.
SAMUEL JONES LLOYD, now Lord OVERSTONE, in
his opposition to the application of the principle
of limited liability, asks what interest his Lord-
ship can have in the matter ? The reply is, an
moa sitehmtehbalotyi
or hfo
circumstances
interest of the most powerful description—so
powerful that the Noble Lord forgets what is due
tr:ei
bias
therefer r i addresses, when he omits to
pwie-oifietsrepouf
reputed
de interest-begottenrnstan ees
naturallyp rej utdeniedei.ngThte
tbua banking n gu
upwards
amr
dtso
owhichf
fifty h e belongedthousand
per annum. In his sight, or in the sight of
all such men, what can be more offensive
than to see joint-stock banks edging out
regular bankers by returning one part of such
profits to the customers in the shape of inte-
rest on their deposits, and another part in the
shape of dividends to the shareholders ? What
more threatening (to the State) than to see Joint-
Stock concerns increase on the principle of limited
liability ? Their concern, and the concern of that
man of lively and munificent benevolence, Mr.

-iTRUTT, is, forsooth, that such rivals will fail. In
;he political inquiry of Mr. M'Cura,ocll, such
concerns only are worthy of privilege which make
;mat fortunes, large houses, and peragos. Bat
',he system of Joint-Stock Companies which di-
vides masses of profit anaongit the many only
uakes small men, such as Mr. GILBART,
he manager of the London and West-
minster Bank, with an insignificant salary- of
one or two thousand a year, instead of mil-
lionnaires capable of giving large receptions. A
joint-stock system of banking, with unlimited
iability, which weakens responsibility for good
management by diffusing it over a number of
Directors with co-equal powers, may not in the
view of the larger individual capitalist be so
difficult to cope with, and may nor, be so very
objectionable in principle ; but a system of
limited liability, which takes the scattered
portions of responsibility from a number
of Directors, and concentrates it all
upon the Manager-gerant, which upon col-
lective means gives unity of manage-
ment and comparative unity of responsibility
—that is one which gentlemen who have little
faith in board management may join, and it is
one which is indeed, in the view of -large capi-
talists, dangerous to the State, and to be resisted
to the last.

Fortunately the description of interests involved
in the question, and the motives to the opposition,
are perceived by the House and the country, and
will be withstood. Lord PALMERSTON'S spirited
declaration of his intention to contend against
them is perhaps justly deemed the most popular
speech which he has made this session.

THE BALTIC FLBET.

OFF CRONSTADT, JUL/ 16.
The powerful naval Lrces of the aThes, which v.ithin
the pL=.st few days have been au,m3tited to 40 sail, coal-
prislng 16' line-of battle Oilp=, 2 steam-frigates, 4 small
steamers, 4 mortar vessels, and 14 gun-boats, after a
strict reconnaissance for a period exceeding three weeks
of the north shore of Cronstadt, weighed anchor at 7
a.m. of the 14th inst. Rumours of an early movement,
which had been prevalent for several days, were con-
firmed in the afternoon of the 13th by a general signal
being made to prepare for sailing ; and it was gene-
rally supposed that by far the greater portion of the
fleet would proceed down the Gulf of Finland, a
small squadron remaining off Cronstadt to watch the
movements of the enemy. But two hours had barely
elapsed after the anchors had been weighed on the
morning of the 14th before the three Admirals, Dundas,
Finland, and Seymour, parted company in their resnec-
tive ships, the Duke of Wellington, the Tourville, and
the Exmouth, with the Austerlitz and Merlin in attend-
wine, en route for Nargen. Euryalos had been sent
in advance at 4 a.m., with the four mortar-vessels, for
the same destination. The remainder of the allied
squadrons, having been placed under the orders of Rear-
Admiral Baynes, immediately after the departure of the
three senior flag-officers anchored about four miles
N.W. by W. of Tolboukin Lighthouse, where they are
to remain until further orders.

I have good reasons for stating that the separation of
the three Admirals from the main bulk of the fleet is
merely temporary, and has occurred in consequence of
Rear• Admiral Penaud having conceived a, plan for an
attack on Revel, the practicability of which Roar-Ad-
mirals Dundas and Seymour have gone to ascertain by
personal observation. If the result should be sufficiently
satisfactory to justify the bombardment of that port it
will be made by the entire fleet, with the exception of
such portion thereof as may he necssa,ry to watch the
proceedings of the Russians off this and other places in
the Gulf of Finland.

The defences of Cronstadt and Sweaborg have been
so considerably augmented by the enemy in all respects
during the last 12 months that they are unassailable by
the present maritime forces of the Allies, and, however
much it is to be regretted that during the lapse of time
between this and the previous campaign the naval autho-
rities at home have not devised the means of furnishing
a proper class of vessels of war to insure a successful at-
tack on these strongholds, it must be acknowledged that
it is now too late to attempt it. Hence these, the two
most important possessions of Russia in the Baltic, are
enabled, at least for the present campaign, to bid de-
fiance to all hostile operations of the Allied fleets.
During the present week there has been but little
of interest connected with the proceedings of the fleet.
Their movements, &c., have been as follows

JULY 9, 9 P.DL—The Pelter weighed by signal, stood
towards the land, and captured a small boat containing
two Russians. In towing the boat towards the fleet it
was swamped and went down. The prisoners were fisher-
men, who are detained for the present on board the
Cressy.

JULY 10.—The chartered steam-transport Isabella
Napier arrived with live bullocks and vegetables for the
fleet. The Russian fleet was observed making frequent
telegraphic signals oa board the men-of-war and at the
shore batteries.

JULY 11 . —The entire fleet of gun-boats weighed,
formed in two linen, and wera exercised in various ma-
noeuvres.

JULY 12.—The Tourmente, French gun-boat, was em-
ployed cruising along the north coast of the Bay of St.
Petersburg. The Imperieuse, 50, Captain R. Watson,
rejoined the fleet, in 15 days from Spithead. She brought
supernumeraries and parcels, but no letters or news-
papers.
JULY 13.—General signal made to prepare for sea.
A large conflagration was observed in the first watch at
St. Petersburg.
. . . .

JULY 14.—At 4 inithe morning the Euryalus and Vul-
ture got up steam, and left for Nargen, the former with
four mortar-vessels in tow, the latter with two colliers.
At 7 a.m. the entire fleet weighed anchor, the Duke of
Wellington, Tourville, Exmouth, Austerlitz, and Mer-
lin proceeding to the weAward, leaving the bulk of the
fleet under the orders of Rear-Admiral Baynes. They
came to at 10.30 a.m., about four miles to the north-
west of Tolboukin Lighthouse.

Almost as soon as the ships had tripped their an-
chors the Orion ran into the stern of the Duke of Wel-
lington, damaging the Admiral's boat and carrying
away her own flying jib-boom, and one whisker. The
collision was caused by the Orion not answering her helm,
which was put " hard a-starboard" for the purpose of
passing the flagship.

. JULi 16.—The Dapper, tender to the Colossus, cap-
tured another fishing-boat with its crew, but they were
not detained.

JULY 16 TO 23, AT NOON.
The opinion entertained and expressed, that nothing
on a large scale will be attempted during the present
year, is being daily confirmed. The Horatio, whose
heavy armament, according to common rep..rt, was to
have smashed to atoms the granite batteries of Cronstadt
and Sweaborg, will not arrive in the Baltic this cam-
paign, in consequence of Nasmyth's guns not being likely
to be ready for s hipmentfor some time to come. The power-
ful naval forces can effect little else than keep the Rus-
sians under cover of their forts, owing to the shallow-
ness of the water, submarine piling, and other impedi-
ments which render it impossible for the shore to be
approached nearer than a distance of 4,000 yards, or any
point of Cronstadt where an attack may be deemed
desirable. Doubtless the Commander-in Chief is in-
vested with full powers, which he appears to exercise
with much discretion, in not attacking stone batteries
with the ships at present under his command, some of
which might get aground, and the risk of their destruc-
tion and a great sacrifice of life be thereby incurred.
Since the departure for Narg,en of the three principal
flagships the proceedings of the division of the fleet off
Cronstadt have been of an ordinary nature.
JULY 18.—The heat is very oppressive. Thermome-
ter in the .shade, 79 deg. ; in the sun, 94 deg. ; baro-
meter, 29680.

JULY 19.--The Cossack, Captain Fanshawe, arrived
at 10 a.m., with despatches for Rear-Admiral Baynes.
Rear-Admirals Dundas, Penaud, and Seymour, with
nine sail of the line, several steamers, mortar.vessels,
and gun-boats, were at anchor off Nargen, superintend-
ing a series of experiments with the mortars, the greatest
range of which had not exceeded 4,200 yards. The
Cossack having taken on board letters and parcels for
the Arrogant and Magicienne, employed in cruising off
Wiber.r, sailed at 6 p.m. Tne Bulldog was despatched
towards Cronstadt, wider a flag of truce, for the pur-
pose of landing two prisoners—fishermen. She was
met by a Russian steamer of war, the captain of which
stated that a few nights since an extensive fire had
broken out at St. Petersburg, whereby several houses
and much valuable property had been destroyed. A
violent storm, which continued upwards of as hour,
passel over Cronstadt and the bay of St. Petersburg.
The rain fell in torrents. The fhshes of lightning were
of the most vivid description, followed by loud peals of
thunder. After the storm had ceased the oppressive
feeling of the atmosphere was abated and a cool refresh-
ing breeze set in. At 9 p.m. the Bulldog was ordered
to keep in readiness for night service.
JULY 20.—Tnis morning a min was observed on the
top of Tolboukin Lightheuse making some signal to the
fleet. Two of the gun-boats, in charge of Capt on G. R.
Mundy, of the Nile, were immediately despatched to-
wards the lighthouse ; sent b thereto, and brought
the prisoner off to the Retribution. He is a de.;erter
from the enemy, an offic-r of inferior rank ie the Russian
service. One of the steamers came out of the harbour to
intercept the gun-boats, but, oa the Bulldog going to her
assistance, immediately put back.

NARGEN, OFF REVEL, JULY 24.

One day here is so like another that I find some diffi-
culty in " spinning a yarn" worth sending you. We are
all in high hopes, however, that this monotony is nearly
at an end, and I fully expect to send you by next some
gratifying news of more active work. On the 17th the
Commander-in-Chief, accompanied by Admiral Penaud,
Admiral Seymair, and Commodore the Hon. F. F. Pel-
ham, proceeded in the Merlin to reconnoitre Sweaborg
and Helsingfors ; they were also attended by two gun-
boats and a French steamer. When about 3,000 yards
from the batteries several infernal machines were ex-
ploded by means of galvanic wires connecting them
with the shore ; but they seem more useless than those
which explode by being struck, for it is next to an im-
possibility for any one on shore to ascertain by taking
angles or any other means, when a ship is so exactly
over one of the machines that the explosion would da-
mage her ; this was proved by the experience of the
16th. for none exploded nearer than 50 or 70 yards of
the ships. To be effective the machine should touch the
ship's bottom, for if it exploded with two feet dis-
tance between them the shock would be diffused
over such a large surface as to be harmless. Two
line-of-battle ships have been sunk in the Western
Channel. The Amphion saw them go down. One
heeled over as she sank, and remains on her side ; the
other has her bulwarks just above the water. Only two
ships and a few small vessels could be seen in the har-
bour but the crest of every hill and small island now
bristles with cannon. No less than 17 new batteries
and earthworks have been erected since we pointed out
their weak places last year. Having satisfied themselves
the Admirals returned to the fleet about 6 p.m.
JULY 18.—The Ivanhoe hired transport left for Eng-
land. The fleet is so well stocked with provisions that,
though she has been more than two months in the Bal-
tic, t- he has been unable to discharge her cargo until now.
At 8.15 the Lightning arrived from Ledsund. She
brings some explanation of the Driver's boat's mishap I
mentioned in my last. It seems she was cruising off a
town called Rautno, a little to the south of Nystadt.
The burgomaster of the town came on board, and offered
to deliver up all the Government property, provided
they would spare the town, which they readily assented
to. He told them there were several Government ves-
sels, but their masts and sails were stowed away in a
storehouse up a small creek, and that they must go up
that and fetch them. The boats were accordingly sent
away manned and armed, but the moment they got into
the small creek mentioned a murderous fire was opened
upon them from both sides of it, and they were obliged
to retreat with the loss of five killed and eight wounded.
This is another piece of treachery we will have a reckon-
ing for before long.
JULY 19. We continue to have the most beautiful
weather—rather hot in the middle of the day, when the
wind lulls, but the mornings and evenings are deheiously
cool and fresh.

JULY 20.—The Dragon arrived from cruising near
Helsingfors where she left the Amphion. All the mor-
tar-vessels (15) and gun-boats have been painted of a
greyish colour, which makes them scarcely distinguish-
able at a distance of 3,000 or 4,000 yards. The Hon.
Mr. Hobart, senior lieutenant of the flag-ship, has been
placed in command of all the mortar-vessels.