The Sun.
London, England, 1859-03-25 00:00:00

SECOND READINGS.

On the motion of Lord REDESDALE, the Leominster
and I[ington Railway, and the Swansea Vale Railway
bills were read a second time.
THIRD READINGS.

The following bills were read a third time and passed :
Purdy's Liabilities Removal, Belfast and Londonderry
Junction Railway, Londonderry and Lough Swilly Rail-
way, Tralee and. Killarney Railway, and Bury St. Ed-
munds Gas.
Lord CRANWORTH presented a petition from Bir-
mingham, praying the house not to pass a bill at present
before Parliament, in which charitable institutions would
be excluded from the exemption they at present enjoyed
from local assessment.
CONSOLIDATED FUND BILL.

On the motion of the Earl of DERBY, this bill was
read a third time and passed.
TRADING COMPANIES WINDING-UP BILL.

In answer to Earl GREY,

The Earl of DONOUGHMORE was afraid he should
not bo able to give the noble earl all the information he de-
sired, but having consulted the returns he found that the
number of companies registered with limited liability was
1,098, with a nominal capital of £75,442,887. Of these 68,
with a nominal capital of £7,459,240, had been dissolved.
This left £1,030, with a nominal capital of £68,003,647.
Many of these had ceased to trade, for 207 of them, with a
nominal capital of £15,181,634, were in arrear with the re-
turns required from them, but, assuming that these had
ceased to trade, a nominal capital of £54,828,000 was loft.
As to how those companies were working it was impossible
to give any idea. A great many of the companies had been
dissolved by the voluntary action of the shareholder. As to
the companies without limited liability, 361 companies of
this kind had been formed previously to the act, and were
trading before it. Nor did these figures include all com-
panies trading with unlimited liability. And since the
passing of the act 14 companies had been formed without
limited liability, and 16 had been dissolved. This left 352
companies, with a capital of £8,500,000, trading under the
act without limited liability. As to banking companies, 11
had been registered under the act, with a nominal capital
of £1,500,000. Of these companies two were registered for
the purpose of dissolution. The number working under the
act was nine, with a capital of little more than £3,000,000.

Lord OVERSTONE was of opinion that the limited
liability bill was founded on dishonest principles as between
debtor and creditor, and he should be glad to learn how
much of the capital of the different companies established
under the act had been paid up. The noble lord then
detailed to the house the proceedings that had taken place
in the Bankruptcy Court, in connection with various com-
panies founded on the limited liability principle, numbers
of which, he said, rightly had been called limited, as they
had only remained in operation a few weeks. The trans-
actions that had taken place under limited liability
proved that unlimited responsibility was most calculated to
ensure safety in all commercial transactions.
Lord STANLEY of ALDERLEY reminded their lord-
ships that all the arguments used by the noble lord who
spoke last had been urged three years ago when the bill for
limiting liability was introduced, and that although a few
cases of fraud might have occurred since the passing of the
act there had been nothing to justify the prognostics of the
noble lord. Had they, he asked, heard of any gigantic frauds
committed upon shareholders under the new law at all simi-
lar to those which had been committed by private individuals
and by joint-stock companies with unlimited liability? Look
at the frauds which had been committed by the Western
Bank of Scotland, the Royal British Bank in London,
and by individuals such as Dean Paul, Strachan, and
Co. He could not see the evils which had been anti-
cipated from the change in the law, and on the whole be
considered it had worked in a satisfactory manner.

Earl GREY took a directly opposite view of the case and
expressed his conviction that the noble lord (Lord Over-
stone) had detailed quite sufficient to indicato danger from
the future operation of the limited liability principl. In his
(Earl Grey's) opinion it tended to rash speculation, and
would entail grievous loss upon individuals. Why, then,
stimulate a desire for speculation, and give facilities for de-
luding the unwary to enter upon such transactions? It had
been shown that business was already carried on by com-
panies with limited liability which ought to be entrusted to
individuals. He was, however, in hope that what had
passed that evening in their lordships' house would not be
without somo effect in preventing the evil effects of the pre-
sent law, and that it would be a caution to people not to en-
trust one shilling to a company with limited liability. He
himself would never have anything to say to them, and no
cheques on a company with limited liability should ever
come into his hands, as he would not hold them sufficiently
long to present them for payment. (Hear.)
The Marquis of CLANRICARDE called attention to the
fact that although the noble lord (Lord Overstone) and the
noble earl who spoke last had dwelt on the evils of limited
liability, they had not said a single word upon the advan•
tages which had accrued from the introduction of the prin-
ciple. (Hear, hear.) Those companies had conferred great
benefits, although those benefits had not been apparent to
every eye; but he admitted they.were not looked upon with
great favour by large capitalists, upon whom they imposed
a wholesome check.

The house then resolved itself into committee upon the
Trading Companies' Winding-up Act.
The rest of the clauses were agreed to; but on the motion
of

The LORD CHANCELLOR the title of the act was
altered to that of the " Companies' Act, 1859."
The bill was then reported, with amendments, and the
house resumed.

MEDICAL ACT (1858) BILL.
This bill passed through committee.

EVIDENCE BY COMMISSION BILL.
This bill was read a second time.

INDICTABLE OFFENCES (METROPOLITAN
DISTRICTS) BILL.
This bill 'was reported, with amendments.

OATHS ACT AMENDMENT BILL.
This bill was read a second time.

MANOR COURTS, &c. (IRELAND) BILL.
This bill was read a third time, and passed.
Their lordships adjourned at seven o'clock.

HOUSE OF COMMONS.—(YESTERDAY.)
The SPEAKER took the chair at four o'clock.
PRIVATE BUSINESS.

The following bills were read a third time and passed :
Caledonian Railway; Glasgow Corporation Water; King's
Lynn Waterwerks, Markets, and Borough Improvement;
Llanidloes and Newton Railway • and Londonderry Bridge
(verbal amendments to be proposed).
The amendments to the London and North-Western
Railway (Edge Hill to Garston) Bill, changed from " Liver-
pool Stations Junction Railway (No. 2)," wore considered
and agreed to. The bill was ordered for second reading.
The Atlantic Telegraph Company's Bill went through
committee, and was ordered for third reading.

PETITIONS.
Several petitions were presented against the paper duties ;
against the Government Reform Bill; for the exemption of
charitable institutions from local taxes ; against the High-
way Rates Bill; for the admission of Dissenters to
the same privileges as those enjoyed by members of
the Church of England in regard to charitable trusts ;
in favour of vote by ballot ; for the introduction of a Reform
Bill, extending the franchise in conformity with the re-
quirements of the increased intelligence of the community;
from clerks and others employed in provincial post-offices,
praying to be placed on the same footing as those in Lon-
don, &c.
LOCAL ASSESSMENT BILL.

Mr. S. ESTCOURT gave notice that, on the order of
the day for the socond reading of this bill to-morrow, he
would move the postponement of the further progress of
the bill till the 4th of May, in order to give chazitable in-
stitutions time to adopt measures with reference to it.