The Sun.
London, England, 1867-04-24 00:00:00

Tim SUN, LONDON, WEDNESDAY EVENING, APRIL 24, 1867.

their most liberal donor in times of distress. Let
the city of New York tell, how they have used the
votes bestowed, the abundance offered, and the
liberty granted—by placing and maintaining in
power, the most corrupt municipality known among
great capitals ; by drunkenness and vice ; by dyeing
the pavement with the blood of the police ; by
filling the thoroughfares with the victims of their
lawless riots. They have imported into the
fields of Pennsylvanian industry the blunder-
busses, so fatal to Irish landlords and agents.
To avenge themselves on the grandsons of those
who inflicted wrongs on their forefathers, they have
made war on the inhabitants of a peaceful colony ;
they have used the political power which the liberal
institutions of the Stabs so generously bestows to
involve, if possible, the country which has sheltered
them in a fratricidal struggle, which, without pro-
ducing a single good result, could only impede for
decades the progress of the world. They invariably
combine fur a hostile purpose, never for any phi-
lanthropic object. It is always against something
they conceive to be an enemy ; it is never to elevate
or to forward a grand or humane design. When
an Irishman trails his coat along Donnybrook Fair
he means " fighting," and if he cannot get an
enemy, he will bring his shillelagh in contact with
the head of his friend. When organised and armed,
the patriot band means war ; and if their enemy is
not to be got at, we would rather not be the friend
in their neighbourhood. If the United States en-
courage, instead of suppressing such an organisation,
they must be prepared for one of two events—per-
haps for both—either to supply an enemy, or to
fight the organisation themselves. There are no
people who respect law and order less than the
Irish, and more, than the American. There are
no people who require more government than
the Irish, and there are none who require less
government than the Americans. The indivi-
dual liberty of the one, leads to chaos of the
other to the fullest development of his industrial
powers. The same laws, therefore, cannot be ap-
plied to both, unless society exercises a strong con-
trol. The immigrants should be scattered over the
Union, where they would be quickly absorbed by
its industry. These societies and military displays
should be sternly suppressed. There is, beyond
doubt, a danger, in the gathering and drilling of
armed men on American territory for objects not
American. These men are either American citizens
or Irish citizens. If American, they have nothing
to do with the wrongs of Ireland ; if Irish, they have
no right to carry on their filibustering proceedings
in America, and the quicker they return to their
native country the better. These constant parades
have a tendency to blunt the sense of the American
people to the unjustifiable shelter they give these
unholy schemes. Reverse the position, and let the
nation consider whether they are acting on the
Christian precept of doing to others, as you wish
they should do unto you. Suppose a Southern con-
spiracy openly organised in England, embracing
hundreds of thousands of Southern citizens—sup-
pose great gatherings and drills in Hyde Park—
meetings in Exeter Hall and Trafalgar-square—
deputations to the Premier—addresses to the Queen
—denunciations of Northern tyranny in the Cham-
ber of the Lords and of the Commons—a revolution
stirred up by emissaries, and resolutions introduced
into Parliament to grant belligerent rights. A
Republican would say that the South had no justice
in his cause. The Englishman might retort that
Ireland was the most equitably go'rerned country in
the world. The truth is, that the one case would
be as unjustifiable as the other. The North means
well by the South ; England means well by Ire-
land. English interference to create discontent
could only lead to injurious results, nor can Ameri-
can interference in the affairs of Ireland lead to
aught else. When people speak of the down-trod-
den Celtic population, they do not fairly consider
the position of the people in that island. For
instance, let them weigh this point alone. Suppose
that position to be as represented by the Fenians,
there is scarcely a man in Ireland who cannot
make America his home, if he wills it. The United
States is the finest and freest country on earth,
therefore his home may be in the finest and freest
country if he so pleases. Those, with such an
alternative, are not the objects of pity they repre-
sent. When the Irishman does avail himself of the
opportunity, he might at least leave his blunderbuss
at home, instead of carrying that forcible argument
nto the peiceful haunts of Pennsylvania.—Ánglo-
clnierican 7 imes.

and approval of the board, and a certificate duly

signed by them. Parliament ought to have
known, we repeat, that the sole object sought by
these plunderers of the public was the indemnity
attendant on this semblance of security ; they
knew they could gull the public ; make them
believe what did not exist, like that English writer

who has said somewhere—" Never believe what

does not suit, for it must not be, cannot be ; there]
fore why believe it." Such being, we regret to
say, the every-day logic of the public press of
England the public had nobody to open their
eyes. The WESTMINSTER GAZETTE was not in exist-
ence ; so four long years elapsed before anybody

understood the meaning of "Limited Liability"—
Overend and Gurney have explained the real
meaning' of those two words better than any
dictionary, and more effectually than any public
writer. Parliament, with that manly spirit which
directs the destinies of this country, no doubt
considered that any kind of restriction would
be contrary to those principles of free trade
which constitute the glory of our epoch. If
liberty is abused, it carries always with it its
own remedy in its punishment ; but when liberty
is made use of by the entire public press of
a country to gull the public, the remedy is
as awful, since the power to use it has been
longer without any control ; it produces fruit
that germinates before that fruit itself has
been destroyed. The seed in this case has pro-
duced a want of confidence and a distrust which
causes every Stock Exchange security to be looked
upon with suspicion, and in a Parliamentary sense
it has produced Fenianism, combinations, strikes,
insurbordination, and, the worst of all evils, a thirst
for power expressed by the word " Reform." The
word " Reform" is abused in the same manner as
the word limited, and both have served to make
many dupes. Let us hope that the eyes of the
country are now open to the danger of the fal-
lacy, and fortunately before the evil has grown up
and gained such strength that no remedy is left.
Railway shares continue to be greatly agitated,
prices are still falling, and capitalists cannot re-
commend them yet as an eligible speculation. The
public have at last begun to feel that it is time to
close capital accounts, to allow no further in-
crease of capital, and to pay every expense,
whatsoever, from revenue. This was illustrated
last week at the Wharncliffe meeting of the Great
Northern Railway Company called for the purpose
of considering and approving five bills now pend-
ing in Parliament. Little did the directors imagine
that any opposition would be made in the room ;
the old trick, of telling shareholders that the pur-
pose of the meeting was only a matter of order to
confirm resolutions already passed and agreed at
the annual meeting, was here practised upon them.
Directors forget that at the annual meetings, when
shareholders are tired out by some long discussion,
they tell them:—" Well, gentlemen, you will have
full time to discuss the merits of these bills when
we call you together for the Wharncliffe meeting."
This time, however, the shareholders were not in
a humour to accept such flimsy replies. They
boldly expressed their opinion, and the five bills
were lost by a show of hands. A poll was de-
manded, and, of course, the new schemes were
carried ; proxies had been sent in by unsuspecting
shareholders, unaware in what way they would
be used. With all respect to these amiable
proxy-signers, do they know the damage they in-
flict? Do they know that every pound added to
capital account requires a gross traffic receipt of
two shillings to pay 5 per cent. upon that pound
before they can receive one farthing dividend ?
Do any of them know the merits of the branch
line they are so anxious to secure, the nature of the
arrangements proposed, the interests at stake,
when they sign these innocent-looking proxy-
papers, sent out with such care by the directors,
and with every kind.,of instruction how to fill them
up ? A shareholder was simple enough to propose
that a full account of the meeting should be sent to
every shareholder before the proxies were used, so
that everybody might know what he was going to
vote about. "rillA was considered by one of llie
directors as most unreasonable, and, as an im-
putation on the intellect of the easy-going proxy-
signers, unworthy of a man of business. So the
case was decided in the dark, since in the
broad day-light of the room shareholders were
on that day so very unreasonable. It is, however,
a move in the right direction—a lesson which will
be very useful to many directors who have lost
their liberty by promises—by getting their friends
to subscribe to their branch lines, extensions, and
fascinated at the time by pine skilful en-
gineer, n eer or deceived by some plausible lawyer.
leases,Entangled in promises and recommendations, they
have no other resource left open to them than to
try to make of others as thorough dupes as them-
selves. However, the Great Northern Railway
can, perhaps, afford this last mistake, which may
not lessen the dividend more than a trifling per
tentage. They are, so far, better off than the
Great Western or the' Great Eastern, which can-
not raise money at 6 or even at 51- per cent. on
debentures, when as much as:£s,ooo is given for a
plan, which, for the sake of the Great Eastern
shareholders, it is hoped will not be paid for until
that plan has proved successful. But let not the
Great Northern shareholders be too much dazzled
by their present success. Let them not forget
that the last dividend was only earned by carrying
it 11c ,k 4
)5 6
to
Bsn.
e9tdr. (profit of the sale of non-issued
orevenue account, which ought, by
s
rights, to have been carried to capital account ;
that this half year the net profits will have to be
divided over an increased capital ; and after the
Ist day of July the capital stock of the company
will have to be increased by £979,936. So let
every railway shareholder be more and more care-
ful not to allow directors to increase the capital
stock, the preference shares, fixed charges, and
guarantees, for fear they should find themselves in
the same predicament as their unfortunate neigh-

bours.
The Rio Improvements Company is an example
that, although railway shareholders have at last
opened their eyes, there still exists a class of
shareholders yet labouring under a fond delusion
fatal to their dearest interests. The intellect of
that company has been overpowered by the re-
gularity with which the 7 per cent. dividend
warrants have been paid during the construction)
of the works. They have never examined from
what source those
.interest-warrants have been
taken. They have never inquired whether the
sum put down in the original prospectus has
been sufficient to pay
for the 15,000 houses to be
drained, and to pay the interest-warrants like-
wise. They have been misled by a report so
confused that the only item in it they can read
is—" That the directors cannot promise a higher
dividend than 7i per cent. per annum." This
shuts their eyes, so that they are unable to look into
the accounts, or study the ground upon which the
directors make out this 7i per cent. If they will
read the accounts they will find that £44,653 is 5d
have been paid out of capital over and above the
sum put down in the original prospectus. If
they would only reflect upon what the chairman
told them at the meeting
: That the rental from
14,612 houses will be £87,000 from which, after
deducting for keeping up the works £1,400, for
office expenses £6,000, for the interest upon the
debenture stock £4,500, for a sinking fund in
ninety years £3OO, making together £24,800,
there will remain, with £2,500 to be paid by the
municipality of Rio, £65,300 for dividend, or over
7i per cent. upon the original capita] of £850,000.
Have the shareholders examined into the correct-
ness of these items of expenditure '? Will they
not probably all have to be increased in the same
proportion that office expenses, put down in the
original prospectus at £5,000, have been increased
to £6,000 ? Are they aware that after the meet-
ing a gentleman in the room who had accepted
some of the 6 per cent. debentures in payment of
his claim, said that they were given to him with
the understanding that they were to be paid off
in five years ? If that be true, it will be neces-
sary to deduct from the sum of net profit £65,300,
the sum of £15,000 during five years to pay off
the debentures, which will leave only £50,300 for
dividend. This will not pay 6 per cent. The
shareholders cannot be aware of this, otherwise
_ they would have gupported the propositiog made,

to the effect that all sums which have been paid

out of capital, over and above the sum put down in
the original prospectus to pay Mr. Brassy for the
drainage of 15,000 houses, be restored to capital
account before any future dividend be declared.
Let that honest shareholder stand firm on the
ground he has taken up. It is more than pro-
bable that after reading this article all the share-
holders who have any respect for their interests,
and who ought to be now aware how often the
best affairs are brought to ruin by paying dividends
out of capital, will support him. Let them learn
wisdom and take a lesson from what has been pub-
lished after the meeting of the independent
Brighton shareholders. Let them be upon their
guard against the specious calculations of their '
directors, and they will find a thousand good
reasons why the best policy is not to pay divi-
dends out of capital. Let that honest share-
holder not be afraid to go to law to bring the di-
rectors to their right senses ; let him consult an
honest lawyer ; he will, no doubt, advise him to file
a bill in Chancery to restrain the directors from
paying dividends out of capital ; let that lawyer
consult the law. In table A to the Companies
Act, 1862 (25 and 26 Viet., c. 89), the 73rd clause
says :—" No dividend shall be paid except out of
the profits arising from the business of the com-
pany," and in the case of Burnes v. Pennell, two
House of Lords' cases, 521, it is said that :—" It is
a fraud in the directors, punishable, perhaps, cri-
minally as well as civilly, to declare a dividend
when no profits have been made without ex-
pressly bringing under the attention of the share-
holders the then state of affairs." The lawyer will,
no doubt, be able to find other cases to the point.
So let that same shareholder go on in confidence,
as success in the end must crown his efforts ; and
when the Rio Improvement shareholders find that
in 1868, and ever after, they will have dividends to
receive at the rate of 8 per cent. and more, instead
of waiting five long years with their dividend
reduced under 6 per cent., they will one and all
vote him thanks and wonder why they did not all
support his amendment at the annual meeting on
the 27th March, 1867. •
The Metropolitan gas companies are still
labouring under the adversity naturally resulting
from the bill in Parliament brought forward by
the Metropolitan Board of Works, and the price
of their shares is greatly depressed. The
further consideration of the bill has been
postponed ' till after the recess and hopes are
entertained that members will, in the meantime,
see the great injustice contemplated against the
vested interests protected by Act of Parliament.
The water companies, the railway companies, in a
word, all companies registered under Act of Parlia-
ment have very naturally taken the alarm. The
anti-Catholic prejudices taught in all our universi-:
ties, colleges, and schools, must leave, to a certain
extent, a stain on the intellect, and make itless open
to truth, hopesty, and sincerity. But there is hope
that Parliament may recover itself from that state
of morbid prejudice and indifference against the
interest of those who have invested their property
on the faith of existing Acts of Parliament. Many
members are, doubtless, prejudiced by the spe-
cious views taken by the Metropolitan Board of
Works, and also by petitions drawn up by schem-
ers, who go round from door to door petitioning
signatures, by promising those who sign that they
will get their gas at half the price they are pay-
ing. Let Parliament consider the large amount of
capital sunk in these great commercial undertak-
ings, the great increase in the price of labour, and
of every raw material used in the manufacture of
gas. Let them throw off those prejudices taught
their first education, in and open their eyes to the
grievous wrong contemplated ; hold in their hands
the balance of justice and equity, and not
allow themselves to be tampered with by such
monstrous propositions, such unjust enactments, as
those submitted to them for approval. Should
they allow such a bill to pass, it will be another
standing proof of the necessity of Reform to
bring into Parliament less prejudiced and more
enlightened men—men capable of understandint:
that the prosperity of a country is not to be ob-
tained by the ruin: of every commercial and
industrial enterprise. Is not the present great
prosperity of France mainly to be attributed to
a policy just the opposite of the one proposed to
be carried out here ? By extending the conces-
sions of the railway companies from 50 to 90 years;
by granting a monopoly to the gas companies in
Paris, by which all have been united into one
great company, paying to their fortunate share-
holders 15 to 20 per cent., money has been put
into every pocket and purse, the workman and
shopkeeper are better paid. Paris looks like a
city of palaces, magnificent boulevards are every
day opening out. What a contrast with the slow
work going on on Holborn-hill, where money is
spent with that parsimony which is to be traced
to the improvidence of late Acts of Parliament.
Is it not time for Parliament to see the folly of
ruining every enterprize in this country ? Let
them throw off those prejudices of education
which weaken intelligence, adopt at once a policy
of conservation, extend the privileges of public
companies instead of restricting them ; in one
word, allow that fair and honest remuneration to
which every capitalist is so justly entitled when
he risks his all for the great benefit of the com-
munity. Fears of war have but little subsided
this week. A few days have, however, given time
for reflection, so let us draw up the balance
sheet. On one side we see that France has not an
ally in Europe ; that the scheme to make friends
by the union of nationalities, like all bad concocted
schemes, ends in disappointment ; that the Great
Exhibition upon which so much was built in the
Emperor's speech in his answer to the foreign am-
bassadors on New Year's Day is a complete fail-
ure ; that the army is disorganized for the want of
a general having the confidence of the men, the
fruit of sending in 1852 such men as Lamoriciere,
Bedeau, and others into exile. This left a blank
in the military art which was shown before Sebas-
topol, and the same result can be expected as at
the battle of Trafalgar, when all the old French
admirals were in exile ; that a remnant of popu-
larity is only kept up by keeping the mouth of
Parliament shut ; that the decay in the bones, if
we are to believe the .Lancet, of the Emperor's
son leaves little hope of a cure ; that the Chasse-
pot rifles are not yet out of the hands of the
makers. There are many other items which might
be put to this account, such as the public purse.
But it is time to think of the other side of the
account. Something must be done quickly to
regain popularity, or else we may expect to see
the special constable walking again the streets of
London. The public must furnish the other items,
and draw theirown conclusions. Consols left off on
Wednesday at 904 for money, and at 904 for
the May account.