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

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 Ato the Companies
Act, 1862 (25 and 26 Vict., 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, honesty, 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 understanding,
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 their own conclusions. Consols left off on
Wednesday at 904 f, for money, and at 904 for
the May account.