The Sun.
London, England, 1846-04-24 00:00:00

I

I

cases. If he understood the proposition of the I cited where four-fifths of the holders not coming forward
Right Hon. Baronet, it was to the effect - that if the f shoWed en htimositiption their part to the Bill, hut they would
I have again au opportunity of petitioning against it; and it was
holders of one-fifth of the shares in a railway under-
sentepetent to the Cofmnittee afterwards to reject the lidi on
taking- ehould, at a meeting to be advertised. 'eenie t-,
a ffidte•ioeinsitognrounTdshebeitaisgsesnhtowonfwhoynethfieKhshowueldntcorrtilee tol
the conclusion that the Bill now before Parliament, to
length
authorise their projects should be withdrawn, the Bill of inducing them to entertain the Bill. When they consideredeg
should not then be allowed to be proceeded with ; that these resolutions would operate on every Bill, and that no
but take the case of the representatives of 900,0001. Bill in the present state of public feeling would be entertained
in a railway company, would it be just or without a compliance with them, he considered that the most
reasonable that the hoidens of 180,000 L, whiell aas the beneficial results would be the consequence. Various objet-
' fifth of that gum, should be allowed to decide the fate of tions were started, and one with regard to persons who had a
the undertaking. The Right Hon. Baronet had very right to interfere, but who, by these resolutions,
truly stated that the state of the law on this point would not be enabled to do so. It was only
was very oncertain and undefined, and the those who could show that they had really paid
oppressions that parties had been subjected to in their deposit who ought to have a voice in assent or dissent at
those meetings. It had been said that they ought not to take
consequence of that uncertainty had been very great.
invoting
In fact, he had a letter from one gentleman, whose away the right of the original shareholders• at
name he did not think proper to mention, who had ac- such meetings. He could by no morns agree to
that view of the case. If they hasi paid on their shares with
tions commenced against him which would involve the intention of becoming bona fide shareholders, if they had
him in expenses amounting to 90,0001. The llouse would taken up their scrip with the view of becoming investors in the
probably have read the account of the late action of undertaking, they would have stood by the schemes whether
Woolmer v. Toby—a new trial hod been moveil for and successful or not. The fact of many of thef originalhir
obtained, and the consequence would he that most shareholders, however,
probably, fix the next eighteen months or two
the scheme turned out a eneficial one, it was no
scrip, they had no interehsatvivonghahtevdeirstilare_odm thee Act their
years, the public would be left quite in the dark
as to the real state of the law oe this question
sotahflee.tmhealnf wrhoofitadLotlwdihthisatasnhdarinegs whheo wouldh a
had
signedr eceeiv e
the
ey sharedeed
Under these resolutions no Bill, either English, Irish, of the cpompany.—( Hear.). By parting wit his scrip
or Scotch, could pass. There would be power he had forfeited all interest in the undertaking.
enough to carry the second reading and the Bill He agreed with an Hon. Member, who had spoken this even-
ts; the Committee, and in that time suffi- ing, that it would not be safe at the present moment to go
6ex:it expenses might be incurred to ruin a great further than to apply the resolutions proposed by his Hon.
many people. Those were considerations which he Friend tot the Bills --1-J itawß Eb e fsaid the Parliament.
object of the resolutions was
would venture to throw out for the consideration of the Mr. LA".
twofold. First, to pass a Bill to regulate and amend the Bills
Right Hon. Gentleman, and he would suggest to him
under which railway Companies were constituted, and b'
the propriety of taking steps for facilitating the windin
which they were carried on ; and, secondly, to discuss'
tap of railway companies, as few of the Bills had reached the general question of railway speculation, to
their second reading. which he should shortly devote his attention.
The SOLICITOR-GENERAL rose to support the He heartily rejoiced that her Majesty's Government had turned
propositions which had been submitted by his Right Hon. their attention to a subject of such paramount importance.
Friend. The first matter which they had to consider Any one who had the paid slightest attention to what had been
was. what were the evils which they were seeking to going on during the period of undue speculation must have
stemedy ? The first great evil was that which had been seen that the attention of the Government should be directed,
adluded to by his Honourable Friend who had just and the intervention of the Legislature asked, to put an end
addressed the House, that these companies were totally to a state of things which were extremely prejudicial
anew institutions—something which had not before to hadividuals, and not creditable to the com-
mercial character of the country. There was only one
c misted, and therefore the law respecting them was
m roointd
with this su to h he should venture
most complicated. The questions of law which arose vert ;reference namely,to what thebject Rightw Hon. Gentleman had'
s were most embarrassing and difficult, in conse- stateda with respect to reserved shares by directors of railways.
qtuence of the extent of the transactions, and the num- He confessed he was rather surprised at the innocence of the
leer of persons engaged in them. He found, Right Honourable Baronet on the subject, because he
from the statement which had been male to the House, thought the prevalence of the practice was a matter
that the railway Bills which had b( en passed the year of notoriety, and, he might add, scandalous notoo
before last, and last year, would, for their completion riety. This system of reserving shares on the
„rind carrying into effect, require upwards of one hundred part of the persons who, from their station and influence, he
millions. It was the general complaint of the eommer- thought would have been incapable of such a proceeding—this
t tial community of this country, that before these Bills could practice, had been carried to a very great extent, and had the
ji. ass into a law, and the greater proportion of capital called in, effect of completely deceiving the great body of the public
tl se locking up of the deposits would keep out of the circula- —those persons of small property who were inveigled
ttti on of the country a sum amounting to from ten to twelve in shoals into these railway projects. He repeated, that by
e millions of money. That would seriously interfere with the reserving these shares, which the parties either allotted to
cm timercial operations of the country, in every one of its themselves or their friends, they also .frequently came -,
braitches. They had heard this from the Noble Lord the off scot free themselves, and deceived those whom
Member for Liverpool, who had presented a petition contain-
they had induced to join them. lie did not know
- ' 'ing complaints from Manchester and other parts of the country. whether it was possible for the Legislature to check these
They heard the loud complaints in the City, and in Scotland, evils, but if the Government would, by the Bill
t - „that all commercial operations, large and small, from the they were about to introduce, remedy the abuses, he thought
they would be accomplishing a very great advantage. These
, . opulent banker to the small tradesman, were depressed to an
things, . - alarming degree by the want of that capital which constituted however, would be matter for discussion when the Bill
their means, and which was taken from their hands and from came before them, and he should confine the few observations
the country by the continued demands of further calls on these he hail to make to the present proposition of the
schemes. How was this to be remedied ? It had been sue-
Right Hon. Baronet. He had observed, with satisfaction, a
' gested and urged upon her Majesty's Government when this desire, on the part of the House, to give a general support to
. state of things was beginning to be felt, before the meeting of the proposition ; and, for himself, he was ready to say that he
Parliament, that some measures should be adopted for selecting concurred in the conclusion which the Right Hon. Baronet
from the numerous schemes brought under the attention of the had come to. He thought the course recommended by the
Legislature those which might seem most necessary and reason- Right Honaurable Baronet was the hest they possibly
able. He could not think that those who offered that suggestion had could adopt under existing circumstances.—(Hear.) He
properly considered the difficulties of selecting from 500 schemes did not mean to say, however, that it was not open to
those which ought to be submitted. When they censidered objection and inconvenience, but in the present stale of things
the numerous grounds and various ingredients which entered it was impossible to take a step which would not entail incon- '
into an inquiry of that kind, as, for instance, which of the veniences of a dangerous nature upon some patties. All the
projected lines was the moat direct, which passed through other suggestions he had heard spoken of were surrounded
. the most populous district, and other investigations with more objections than the recommendation of the Right
of that nature, it was impossible to go through all these in- Hon. Baronet; and on the whole he thought it was the
quiries without exercising all the functions delegated to Sub- best they could adopt. He must say, however, that he could
Committees. In fact, it was found impossible to make such a not agree with the opinion of the Right Honourable
selection. All the commercial men and others who Baronet that this was the legitimate and proper time for bringo
have given their attention to the subject were unable ing this measure forward, for he recollected a speech. which
to make any practical suggestions that the House could the Right Hon. Baronet himself made at the commencement
safely adopt. There were four distinct classes with whom of the session, which left an impression upon his mind
they.would have to deal. The first class was the provisional that the Government considered the subject, and
committee, or directors, or the governing body. The second had come to the conclusion that interference was
takes was the original subscribers, who had subscribed the necessary even at that time. That was the im-
deede bet had ceased to possess an interest in the project. pression on his mind, and he believed it was this
The third class was the holders of scrip ; and the impression which the public generally had after reading the
fourth class those who had given credit to the company, speech itself, but more particularly the speech made at the
and who were creditors in many cases to a large amount, same time by Lord Lincoln, and he thought it would have
They-now saw the state in which they were situated. It was been better had they taken more decided steps then.
better that a plan should be submitted which would allow He thought that in questions of this kind it was the duty of the
Parliament to select the best scheme, and this Bill would have Government to undertake the responsibility.—(Hear, hear.) .
that effect. As he said before, the promoters of many of those They ought not to wait until the public out of doors were in a
complete ferment in consequence of the uncertainty of the law.
Bills Were placed in great difficulty, for there was now no means
of diaso/ving these schemes without the sanction of the original —(Hear, hear.) And he therefore could not quite agree
shareholders, many of whom had parted with their scrip. If with the Right Hon. Gentleman, that he had been very
there were no means of dissolving those schemes; what would felicitous in introducing his measure at this particular period.
be the consequence of companies dissolving themselves? If However, as it had been proposed at last, he was prepared
there With a company—and he was sure a great majority of them to give it his cordial support. There was one inconvenience
Were so—in which the great majority, of the directius were honest, which would probably result from this measure—he alluded to
and &great majority of the shareholders were honest, where they the new companies which had lately been projected as
would be willing to dissolve, they were under this difficulty, rivals to the great independent railway companies already
that they were not legally able to do so, for they were bound in existence. This' measure would' most probably have the
by their contract deed to carry out such works. They could effect of bringing these projects to an end, and the
mot dissolve, they must proceed with the object of those deeds public would consequently be deprived of the interests
or they might be proceeded against by actions in Chancery. which they must have received had those companies
they being bound by the various covenants into which they had succeeded as rivals to the already existing companies,
entered.. He could state on his own knowledge, there were and he thought that the Government should have taken that
many' companies who were willing to give up, but for being point into their grave consideration. This, he confessed,
so bound; and they were thus compelled to go into was a very wide subject, and he would not
.say whether
Committee and incur - great expense by employ- it was an evil or a good; but he would say that it was the duty
wig engineers and witnesses in the inquiry. of the Government, in these matters, to protect the public
During the prevalence of the wild mania of speculation, coin- interests. No doubt her Majesty's Government had taken the
-panics which were supposed to have immense sums of money, advice of competent parties before they had ventured to propose
were projected, the unfortunate speculators in w hied', by yen- the present measure, and must be better informed
Using to purchase shares, and by paying the deposits, rendered than any Honourable Gentleman who might offer
themselies liable for the expenses, and if the Bills should pass his suggestions across the table to the Members of the Govern-
into law to subsequent calls hereafter, and possibly to. the full meat. At the same time he would venture- to make one
amount •of the company, or that portion ,of it 'for or two suggestions - upon- this subject ; one of'- those
which - they had subscribed their names. . In some suggestions was this—whether it would not be
150,000'., and one company, he knew 200,000/, were paid in possible to propose as an alternative to the scripowners, that.
to the Accountant-General, and there was locked up not they should have the power of expressing their wishes and opi-
only from general circulation, but beyond the reach, as the nions as to the desirableness, or otherwise, of proceeding
law now stood, of those unfortunate persons who had subscribed with their Bills by written communication, instead of
it, who had no power to abolish the company, so that their being compelled to attend at those meetings.
money was for ever away from their hands, and was subject It was not stated when the meeting of the scripholders- was to
to the Act of Parliament being obtained. But it was take place. An Irish railway company might be summoned
evident that three out of four of the Bills before to meet in London. With regard to the suggestion of.
Parliament could not, on any reasonable foundation, hope to his Hon. Friend, the Member for Weymouth, to
receive the sanction of Parliament. Even if they were well postpone all railway business, to avoid subjecting
advised to stop they were unable to do so, or to the parties to any inconvenience or expense, until
obtain their money from the Accountant-General, this Bill should be passed, he doubted whether anyhenefi-
and in the meantime the provisional directors, who cial object could be effected by such a course: The
alone. had any control over the fund so deposited, people would know the persons connected with these
were obliged to continue their exertions in the chance of ob- companies, and would judge whether there was any
taming the Bill. Then,' again, it was not the rejection of the Prespect of the shareholders of the . company persisting
Bill that would enable the company to dissolve itself, and in desiring to pass the Bill ; and he took it for granted that thef,
obtain the money from the Accountant-General for would in most cases avoid passing the Bill through unnecessoOy.
distribution amongst the shareholders. The Bill might stages, if it was not their intention ultimately to proceed
be rejected, and, although introduced into successive with it. He would not trouble the House with any further obs
Parliaments, might not stand the slightest chance of success, servations. He should only state that he heartily'rejoiced that
but yet in the face of all this the promoters must go on with her Majesty's Government had directed their attention to this
the project in the endeavour to get the Bill in a future session. important subject ; and he thought that their proposed
pro-
Still the money was locked up, expenses increased, and there ceedings would give satisfaction to the country.
was no means of putting an end to them. ' The law, as his Mr. HUDSON said that he fully agreed with her Ma-
Hon. Friend stated, gave them no power to dissolve. jesty's Government in the time which they had chosen for this
In the existing state of things they would have managing corn- measure, for the present time was almost the only one in which
raittee-men bringing actions against allottees and subscribers, they could act effectually in this matter. He believed that if
and allottees and subscribers against committee-men; but in' the Government had brought forward this measure at an
the preaent state of the law it was impossible to say whether earlier period of the session, it would not have met
these actions would be .maintainable or not. There could with the public support which it would meet with on this
be no doubt, however, that these parties would. go on bringing occasion. The measure would be placed on a sound, solid
actions against each other, the one relying upon thhdecision,of basis,_ for parties would seriously consider the position in which
Wilmer and Tobin, which he contended was ne decision at all, they had placed themselves, and the consequence was that by
for the learned judge pronounced no opinion upon it, and what the meetings that would take place under this measure
he did say was incorrectly reported in the newspapers, and little trouble would be given to Parliament to decide on theie
the consequence was that upon the faith of the verdict in the cases. He did not deny that during a short time there had
case, 300 actions were commenced by three companies alone, been an excitement in the railway world, and it had arisen from
thetf existinga companies. Every erson
and ihe other relying upon the decision of Walstead and Spot- the successful
tisworlOt Thus speculation having ended in railway shares who had consideredragrepresent uloiect
companies,fors aw
thatitld be
othersthe
the par ties commenced. . speculating ;
.n actions at law; effect of the success of the
and reallY in his opinion there would be no end to wouldattempt anwd°
'' d mischief. That all these evils could be the like success, at the time when the parties
the litigati on an re- who had been toiling in the field for a long time began tive •
measures it wah 'in to reap
moved by Legisla vain to the harvest of their endeavours. He
to entertain a had not been unfaithful
hope, but he ventured strong expect
hereafter adoptedthe ' to the public on that occasion. He held in h•
ishand a long
tation that; if parliament_ Bill paper, in which he had
to them b Gover taken the trouble of collecting the
which would be submitted
Itts y th nment, numerous observations made by him
at meetings which he had
and in the meantime the present reso u roan
a,_a_ ea evils them- attended, and in which he had cautioned them against these
selves m'eht not indeed altogether be blih d, but they wild speculations and their
most salutary check.---( Hear n results.—( Hear, hear.) It was of
would at all events receive a . . . , o use ; and had her Majesty's
? Without going into the that
hear.) Now, what wortld this Bill be time, it would have been said they were interfering House of the sub- with
details, he might in a fex words possess the measures for the benefit of the
first place power would be of no use to tell them country. It would have been
staritial parts of the Bill.. In the
f shares ,between u CI h that their works should
number o . . n t t ey had got certain not commence
given to the holders of some small
d and the obtaining Had her Majest ' G sums of money to execute them.
the time of signing the itubscription 4:e !
the managing that they ment interfered then, he was satisfied
of the Act of Parliament, through
to allowit
would not have interfered successfully, and it better
committee, to call a iteeeting of shareholchtt's to
kn
The
measotroerun on until a stagnation of public opinion was
sider the propriety of proceeding with the unde:ta mg.
-11. He owned thats Tr proposed would have a salutar e occurred.fi.ect
It was proposed, that when the meeting should be convene, .
nication, andt ere
7'"
great advant ' 1 y .
e in rai way commu-
that proper machinery should be provided for taking by proxy,
an , that it was of essential importance to the country,
or personally, the votes of the shareholders, and if they sobut excess of speculation might be injurious. There
had been
choose they might come to the resolution to dissolve the coin- a statement made in that House, on the. authority
pany at once, the number required to vote for that resolution person from whom, however eminent or distinguishe mlghat
being at least three- fifths of the whole. Proper provisions would be, he (Mr. Hudson) felt bound, in justice to Parliament and
also be made to enable trustees and all persons of an official dm_ to the country, to differ. The statement was, that the expense
ratter to vote at such meetings, and if the required majority came of railways
thathad increased 50 per cent. He did
to a determination at once i'o wind their affairs, their concern not agreeh with sttoateTlent, and he thought that nothing
than
would be brought to a termination in the same manner as all could worsee
He woulda referow such an opinion to go forth to
partnership concerns were winend up. The directors would the country.
pocket, which bore some° raeeraepner which he had in
have power of possessing themse:ves of the funds of the corn-
his
been connected with railways for aee°
series
of
matter.
and
pany, which they would have to dispose of, in the first place, in He had
amount of capital entrusted to him of ayeara,
the discharge of all liabilities into which they had entered ; had thelargestthe country, but he would be ashamed of privateao a
and, in the second place, they would have to pay the surplus in individual inhe declined to come forward and give such inforrna-
a fair proportion to such as were bona fide holders position if
in reference to this subject. With
of shares in the company ; and he had hopes that tion as he could supply
the price of iron was 10/.
Midland Company,
there would be large surpluses in most cases. The pro- respect to the Mid
its construction. The sleepers were 7s.
posal of the Right Hon. Baronet would create no new liabili- per ton at the time of ,
mg else in proportion. The
and everything ties, it would onl -relief hdesirous to • e and land,
y give to each as were re- a thee , from 4s.
t iron at W. the ton, and sleepers
lieve themselves from the which they had entered other day he bough
in general were not
into in a time of engagementshear.) to ss. Land also was cheaper, and prices,
great excitement.—(Hear,
He had a few further observations to
The present proposal would involve no new difficulties ; so excessive as in 1841. .
of every company
its only object was to prevent the waste and useless ex- make. He was quite sure that the directors .
derine
penditure of the money of the public in foolish
.undertakings. would give an opportunity to the shareholders of consi
.. e ,
It was obvious that time under the circumstances. With 1
some must elapse before this Bill the course proper to pursue .
and he
could pass, and what
lway with which he was connected,
was to be done with the three or four respect to one rat
hundred railway Bills o others would be similarly circumstanced,
weeks that must elapsenbewf before Parliament, during the few was sure that many
of 300/ owing to the ex.
To let these Bills go on wiLe this Bill could pass into a law. every 50/. share rose to the value • , .
the evil to go on at th tit any cheek, would be allowing trtions of a few individuals, and himself among the number,
e period of time when it was most who strongly supported- it He had great pleasure in support-
pressing ; but, on the other hand
suggested by his Hon. Friend ? , Tieuireltihey to take the course ing the resolutions.
that they should do more than classify 0, on.
,Friend suggested Mr. MARK PHILIPS begged to say a few words on a
that they should at once suspend ' eel; Bills he proposed question that involved so much public interest. He could
progress, until some reasonabe
these. Bills from say it was his wish, as some interference had taken place be-
furtherelapse for the passing of this Bill._ (gear,
should fore now upon this subject. At an early period of the session he
It would be better to allow these me eon's to be(ear, hear.) was inclined to submit a motion to the House for taking the
and the Bills to be stopped. In the 'first calledplace at once, matter into consideration. lie thought the House would of
petitions could be framed, it was necessary to have efore the itself have taken the matter up, and that they would have
serious operations, which were certainly attended recoursewith some to
come to a resolution of not taking any lines of railway this
difficulty. Most extensive interests were a° °i°
session which were of a competing character. That was his
in many of these schemes, arid the involvedview of the case ; but he was told, that if he were to bring it
in some cases, would be compelled to' d. proprietors, forward, he would most undoubtedly fail. He was certain that
their vrojects without having had any opportunity of express-
much capital had been absorbed in railway speculation which
ing their assent or dissent... It would, perhaps, be advisablexire should have been laid out in manufacturing districts. He was of
to postpone the consideration of some of these Bills t opinion that the development of the railway principle was
future period, when sufficient time might be had for the o a of great public benefit ; and those who had studied
pro- that principle were persons who would
prietors to decide on the coue
se most prudent to be pursued. It in the carrying
of - h ave reflec•.ed honour
was proposed by these resolutions, in case the company hear.) They iacstu adniyedg trheeat
s mercantile principle_t fleet.,
intended to be incorporaled, that such meeting beneficial result, and they had
conferredstem, and they had found a
as constituted of persons' producing scrip of this good on their country. It was importantt
to
a large amount of
wsee that ton much
company representing one -third -part of the capital proposed to capital was not directed from the legitimate commercial trans-
be raised under this Bill, ,and it would appear, unless one-fifth actions of the country ;
should signify their assent, they would be overborne by the course would not interfere with the full an - • - d fair development
remaining shareholders. l 3ut then the Hen. Gentleman (Mr. of the railway principle, which he looked upon as one of the
Bernal) asked, would they proceed on the assent of so small a greatest blessings of the country, he trusted it would check the
mumber e To that he woui d reply, that by these resolutions evils resulting from undue speculation. On these grounds,' he
an opportunity would be giv. to to all the scripholders to come gave his most cordial support to the resolutions proposed.
'forward to expfths of thet a ress their sentiments on the subject. If, Mr. NEWDIGATE said it was a general impreolo, that
however, four-fifths
held back, and only one- the resolutions proposed by the Right Hon. Baronet were not
tufth came forward, that - c ircumstance proved that it his own. He (Mr. Newdigate) however concurred in what
:Ras ti. fit Bill to be enterte 1. No doubt cases might be .
PIO had fallen from the Hon. Member for Manchester res •
pecting

Stine evils of • speculation. The Right Hon. Baronet appeared
to •him -to • have trusted too much _to the _operation of .his
Bill of ,1844 to check this speculation. 1 t had operated
no d..ulit with a heavy bent in interfering with speculation
but that had not been sufficient, for it appeared that by the
requirements of deposits they bad given scrip a character,
which slid not belong to other kinds of commercial paper. It
had been made to assume the character of money, and ex-
tensively employed in that capacity. He could see no due
means of limiting railway speculation, unless all shares issued
were registered. and to afford the means of access to the books
"
in which they werereoistered—in fact, to make a similar measure
for the registration of scrip as had been done with respect to
the money weekly issued by bankers, for it was evident that
scrip partook of the nature of money, and ought to be sub-
jected to a similar provision.
Mr. WARD agreed with his Hon. Friend (Mr. Mark
Philips) that no speculation like that with respect to railways
had existed in this city since the South Sea bubble and the
Mississippi scheme. He also agreed with him that it had
diverted capital from its proper channels. Persons of
small means entered into this speculation to an almost
incalculable extent, regardless of the consequences, and
without any previous inquiry as to the feasibility of the pro-
jects in which they hazarded their capital—no one ii•quired
where a railway went to_( Laughter)—or whether it was
required in the district through which it was pro-
jected. He was sorry to say that he himself had
taken a quantity, particularly in new lines. In one
line with which he was connected he took a particular interest,
and a number of shares, because he believed it would be remu-
nerative, but the very reverse had been the result. He had
no objection, and hebelieved that none was to be found, in these
resolutions. His impression, indeed, was that one-third of the
shareholders would pledge themselves to move for no alteration,
and that that measure would give them general satisfaction ;
and this impression might not be the less from the circum-
stance that the success of several of the schemes had laid
down a rule of the expenses which they ought to bear. Yet,
at the same time, it must be recollected that the companies as
they now stood were unable to divest themselves of the ex-
penses to which they were subjected. They could not divest
themselves of the expenses of the inquiry, of the employment
of counsel, and of all the other incidents which were neces-
sary to take the means for carrying out the project, and for the
institution of such further experiments as were necessary to
confirm the validity of the project. Then as to the third
resolution, he felt it necessary to ask its meaning.
His impression was, that those who were in possession of the
scrip ought to be considered the boncifide proprietors. It was
necessary to ascertain this point, because he believed that
nine-tenths of the proprietors of the double schemes now in
existence were quite ready to dissolve their companies since
the commencement of the panic, and he would guarantee. his
Hon. Friend, the Member for Taunton, that no attempt would
be made to reiterate the schemes of the last few years. He
was no friend to partial legislation, but he believed that for
the next twenty years such a lesson had been read as would
be a sufficient guard for the time to come. On these accounts
he was quite ready to assent to the words of the resolution.
Very harsh language had been used with regard to the conduct
of the proviaional committees and directors, but it was ad-
mitted on all hands that the late railway enterprise had been
most useful, and that it was desirable for the interests of this
. country that that speculation should he carried on. The rail-
way directors had, to the best of their power, endeavoured to
ascertain the best projects in which the money of themselves
and the public could he invested, and he could not conceive
how Hon. Members could justly cry them down, although he
must certainly admit that during the late railway mania there
had been some exceptionable transactions. He could assure
the Right Hon. Baronet that he laboured under an error when
he conceived it to be his duty to attack the practice of reserving
shares. There might have been cases in which those shares
were reserved for the purpose of fraud, but he could assure him
that the number of applications in railway projects had been
so exceedingly large that it was found necessary by the direc-
tors to reserve the shares in the manner which they had. Out
of the 500,000 applications for shares, he was sure that the
Right Hon.:Baronet would, had he been engaged in these rail-
way undertakings, have found very great difficulty in allotting
shares with safety to the 40,000 that had applied. The di-
reetors-had experienced the greatest difficulty in the. proper
exercise of their duties. He could assure the Right Hon.
Baronet that the greatest schemes had been used for the pur-
pose of deceiving the provisional committees. Forged names
and false residences had been made use of is the applications
for the purpose of deceiving the directors. He was perfectly
new in the affair himself, and he had not the least doubt that a
very great many errors had been committed in the allotment
of shares in the company with which he was connected, but he
certainly did, in his character of chairman of the provisional
directors, reserve at least one-tenth of the shares of the com-
pany. Several Honourable Members of that House had found
themselves involved in this railway speculation, from a desire,
in common with people out of doors, to profit by it.—(Hear,
hear, and laughter.) For his own part, he thought it was
highly creditable for men to be concerned as directors in a re-
spectable railway undertaking. And of this he was confident,
that these projects had had the effect of furthering the prospe-
rity of the country. He had no doubt that the share-
holders, in those companies that ought to be dissolved,
would take the earliest opportunity of availing them-
selves of the advantage held out to them by the
resolutions of the Right Honourable Baronet, at least
to proceed with their original intentions. After what they
had heard, and very truly heard, of railway speculations in the
course of the summer, this proposition was only making an
appeal from Philip drunk to Philip sober, and giving them an
opportunity of recording their opinions. He felt that there
were some objections of a smaller character, but they were
doubtless considered by the framers of the Bill. He would
give his support to the proposition.
Mr. F. W. BARING, who was very indistinctly heard in
bis opening remarks, said that not the slightest objection
could be urged to the proposition of the Right Hon. Baronet.
It was in reality an appeal to the promoters of these schemes—
it was giving them an opportunity of reconsidering their con-
dition—it was asking them indeed whether they were prepared.
Hehimself would gladly give his vote for the dissolution, of
the company of which he was chairman. He, like several
other railway directors, had been put to much expense and
trouble, fur which they expected no thanks. That was the
benefit- connected with these railway undertakings.—( Hear.)
Mr. B. DENISON confessed that he originally thought
that some steps ought to have been taken to pat an end" to the
mad . speculations which were convulsing • the country, and
which -were withdrawing capital from their wholsome and
natural channels. It had the effect of locking up capital,
which otherwise would have been freely circulated throughout
the country; but, however, he thought it was better now to
interfere than not to interfere at all, and he certainly should
give his hearty concurrence to the proposition of the Right
Honourable Baronet. Some Honourable Gentlemen had com-
plained that the contingent expenses attending the committal
and second reading of the Bill would be still increased, but he
for one could not see how they could be. Parties might avail
themselves of the resolutions within ton days from the present
time, and if they did not meet with sufficient en-
couragement they might abandon the Bill alto-
gether.. There was another point to which he wished to call
the attention of the Right Hon. Baronet, who, in the course of
his speech made an allusion to a recent statement made by Mr.
Brunel, as to the cost of making railways. The Hon. Member
for Sunderland had answered that statement, but had he not,
he should have felt it to be his &Ay to state, that he had put
himself in communication with parties who were in the habit
of contracting for the construction of railways, who told him
that "Mr. Brunel's statement was a most extravagant and in-
cautious one. He believed there was no doubt that a railway
coald be made at very little additional cost to what it
would have taken lately.--( Hear.) The Right Hen. Baronet,
hi the course of his speech, referred to a letter relating to the
London and York Railway, and seemed to do so with a view
of convincing the House that the directors of the company
were disposed to break up the company.
Sir ROBERT PEEL—No, no.
Mr. BECKET T DENISON said he knew instances in
which competing companies were- buying up shares of the
rival lines, for the purpose of obtaining a majority in the
meetings proposed to be held under the provisions of the pro-
posed Act. It was in the case of the London and York Rail-
way. The Eastern Counties Company, of which the Hon.
Member for Sheffield was one of the directors, were doing so
at the present moment; and he thought that was conduct
which one company should not pursue towards another. For
his own part he would not do so; he did not possess much in-
terest in that railway—he held but twenty shares in it—he
supported it upon public grounds, and with a desire to obtain
the best mode of communication between London and York ;
he had no fear as to the ultimate success of that line,
in spite of all that opposition.—( Hear, hear.) He thought
the proposed Bill would give to competing lines advantages
which might be unfairly used against rival companies, and
enable them to burke their competitors. Existing companies
would have a very decided advantage over those who were
mere promoters of lines, and he considered that no person
should he allowed to vote at these meetings who was not a
holder of scrip on the 4th of April last, which was the time
when the first notice was given of their intentions. The
House was aware that when a motion was on the paper which
was not agreeable to parties, those opposing it refused to come
into the House in order that there might be an adjournment.
This would be precisely the mode adored by those opposing
a line or wishing for its dissolution. If he would permit the
meeting to consist of one-fifth of the whole shareholders in
the first instance, instead of three-fifths of the amount as pro-
posed, it would be a simpler arrangement, and collect
the opinions of the shareholders much more effectively.
Parliament, if it could set its face against this undue specula-
tion, it ought to do so. He was applied to repeatedly to be-
come a provisional committee-man, but he invariably refused
to do so. During the whole course of the autumn, when the
railway mania prevailed to its greatest extent, he actually
trembled at the extent of this speculation, and en account of
its consequences ; and he advised his friends to abstain from
speculating in railways.
The CHANCELLOR of the EXCHEQUER said there
seemed so general a concurrence in the resolutions proposed by
the Government, that it would be unnecessary for him to ad-
dress the House at any length with respect to them ;
but as certain objections had been taken as to the course of
the Government, he should make one or two observations in
reply to them. It had been, in the first instance, stated that
the Government might have interfered at an earlier period with
respect to those projects, and more directly than they had-now
dsvoarisec. a r rEi evderwy aosn
ine wi
thsoe had apdr
pregnant
watched
we d theth progressconsiderable
c u-
c o r taege snp
Jation in railways, must be aware that the extent to which it
tofotshee
on w countryhom;
he
ned
thought placed
he
et hhewsii taanay-
tion in which he was, he certainly did use all the means he
the commercial
t odiva; h
influence from embarking,' in those speculations, or giving
their countenance to them ; but it p peered to him that it
would reach to an extent which Parliamenta
could not "possibly
foresee. It is true they might, by the adoption of
arbitrary"
measures, have materially reduced this speculation, by only al-
lowing the introduction of Bills required by the wants of the
country ; but then the difficulty of selecting those which should
be proceeded with and those which should be withdrawn.
The difficulty of this was foreseen by the Hon. Member for
Manchest,'r ( Mr. Mark Philips), who suggested the with-
drawal of all competing lines from Parliament ; but that was
attended With enormous difficulties, on account of the selection
of the course. This opinion was
Klan expressed by the
tur
Hon.
n
Member for Sunderland ( Mr.
Hudson), which was no douht, in the recollection of the House.
•t advisable to pursue, was
The only course which they thought .
to allow the public mind to cool a little, and that there should
be some souse in the public mind of the danger of these spe-
culations. That period at length arrived, and the public now
saw the danger of these speculations and the responsibility
attached to them. They had, by the delay in bringingi for-
ward this motion, gained the concurrence of the Hon. Mem-
ber for Sunderland. which, if they had brought forward such
a Bill before now, they would not have gained. It was sid
that they had done wrong by not having legislated for this
before such Bills as these went into Committee, and saved
such parties expense. But this could not have been done,
There had been a Bill progressing in the other House which
effected the whole question. If the assent was given to the
third reading of the Bill by the proper constituency, there
would be no further interposition between the third reading of
the Bill. His Hon. Friend behind him had said that a check
should be put upon those who had purchased scrip on these
inchoate railways, because if that was not allowed, those great
railway companies, whose interests might be furthered
by the dissolution of several of the present railway pro-
jects, might, before the proposed meetings were called, purchase
shares in those companies, for the express purpoie of
enabling them to vote for their dissolution, and thus removing
rival companies out of their way; but his Hon. Friend shoUld
recollect that it was impossible to impose such a check, because
they could not ascertain at what period those scrips were issued