The Sun.
London, England, 1844-04-29 00:00:00

THE CIRCUMSTANCES OF THE VICTIMS.

But the extent of the-evil is to be measured rather by
the circumstances of the victims than by the amount of
the plunder. They are usually persons of very limited
means, Who invest their savings in order to obtain the
tempting returns which are offered.' Annuity companies
have proved the most dangerous in this respect. Old
people, governesses, servant's.' and persoris of that de-
scription, are teMpted to-invest their little all, and when
the concern stops, they are ruined. - Sometimes persons
of more property and better intelligence are tempted, but
the greater number of the sufferers areof the fir.lt-named
descriptions. .

In One ease, a person who had effected an insurance
in one of these offices fell into impaired health, arid on
its breaking up; he could no succeed in renewing the in-
surance in any other office.
In , one case the victims were the ordinary specula-
tors in companies, some of them merchants and men a
business. s • • ' •

By one' itness, a solicitor, it was stated that metian-.
tile men:of great sagacity neglect in such cases the most
ordinary precautions r that they-lake more cure in dis:-
counting a small bill than in forming% connexion, with
such companies, by which their fortunei may be, wholly
lost ; and this neglect.has been attributed to the fear of
its being known•that they are seeking. an exorbitant re-
torn, or that they are embarking Inundertakings of
questionable character. • - _
THE I4PUNITY OF THE OFFENDERS.
The cOac-octari of .conipaniesi, however fraudulent, and
however largely, they have despoiled. the :public, are
practically unamenable to any judicature; Civil: or
criminal:—

I. Parties -affected by these fraudulent contracts' can-
-not discover of whom' the company consists.
2.- If the discovery be made. they are generally so im-
poverished by, thelrlosses as not to be able to parses the
offender, or so ashamed of being involved in the transac-
tion, as to be indisposed to submit to expose themselves
.by so doing.' '
-
3. They fear to lose their chance of recovering a por-
tion of their loss. ,
4. If able and willing to prosecute the offender's, the
legal proceedings are so cumbrous as to be alniost
im-
practicable.
5. If proceedings be taken in Chancery, each -party is
entitled to proceed by separate answers, so that such
proceedings are impracticable. •
6. And it is difficult to sustain criminal procedure by
the necessary evidence.

In one instance,:where a manager of a company failed,
hundreds attempted, to prone their claims ; but it was
held by the Oommisiioner of Bankrupts, before whom lie
was heard, that they were not entitled to prove against
his separate estate.

This person was managing 'director -and trustee, anti
had passed the money through his private bankees. No
other director or trustree could be found sufficiently
solvent to be prosecuted.. In many cases it is difficult to
prove the partnership..
Under these circumstance, the same parties, or parties
of the same description, baffled in one concern, availing
themselves of the general impersonal designation of coai-
panics, start others equally objectionable, Without there
being any possibility of apprising the public of the iden-
tity of.the company.
'rids is shown by two or three instances of companies
of n questionable kind brought before your Committee.
Your Committee have agreed to the folldwing resolii-
tiona, and, hare embodied. in them their views of the
principal provisions of which they are now prepared to
recommend{ the adoption for the' imprOvment of the

RESOLUTIONS. . .
1. That in order, to prevent the establishment of
fraudulent companies, and to protect the interest.; Of the
shareholders. and of the public, it is expedient that all
,joint-stock companies (other than banking companies)
for commercial -purposes; whether' future or already
formed, be registered in an office to be appointed for that
, , ,
purpose. -

2: That the registration of future bompanies-bei made
—(1.) Rrovisionally berore the public announcement of
the company, or the doing of any public act by it; and
(2.) Absolutely or completely,. on the, full, formation
thereof. ,

•3. That on spch proyisional.registration, such. futuie
companies do register the principal particulars Unreel,
such as— •

The name' and business or purpose of, the company
Its place of busineSs, and every branch officepragendy
appointed'er conteniplateth ,
The natnea and addresses of its promoters t'ina alas,
as the case may be, the names and addresses of its pio-
visiobat directo7g, its' provisional officers, and of its
subscribers : • . •-

And any prospectus or circular issued or intended to
be issued. .

And so from time to time, until complete registration,
any addition to, or change in such particulars.
And that if any such company intend to seek for in-
corpration by Act of Parliament, or by Charter Other-
wise than under the Letters. Patent ACt, the promoters
tbereof do upon.provisional registration make kdeclant-
don tel that effect; Wand 'that they do also register su4h
notices of the intention to apply to Parliament ,f be an
Act of Incorporation, as are required by the Standing
Orders-or either House of Parliament *to be inserted in
the Landon Gazette, or other newspaper, such registra-
tion being made Ator,within- the period prescribed for
such- insertion by sub order's. * ,
And that if.a.company be intended: to be established
by letters: patent, or charter, in pursuance of tha Letters
Patent Act, it do alsD register a reference to the London
Gciz#te, in which the application, for letters patent for
chrter is announced. .

4. That on the absohtte or complete registration; such
future companies (except companies incorporated by Act
of Parliament, or by charter otherwise than under the
Letters Patent Act)-do register the particulars
thereof; such as—
A. copy, of every prospectus or circular -addressed to
the public: : , •,: , , .
A copy .of the, deed of settlement, sabsetiption con-
tract, or 011r:suck instrument: . •
rhe biisieess or purpose: of the corepatthmittits place
of business
The amount of its nominal capital, and the-
'p operun
paid up:
The total number df sharea, and the 'amount of each
share: •
Thenaines, addresses, and occupations of its metnberF,
with the shares held by each: -•- •
The names of directors, trustees; patrons, suditBrs,
and all:other offices a the company, with their. °Coupe-
thuie and• addresses, and a written consent of acceptance
of office by each:.
.5 .
And sttch other. like particulars. as may upop consi-
deration appear 6 be requisite.
Anti:that if a company be eatablished by letters pa-
tent, or charter; in 'persuance of the Letters Patent "Act,_
it do also register a copy of such letters patentor charter.
And that, provision be. made for the return of any
changes in the particulars so required for such 'complete
registration::: •
..s:lThat in respect of such,registrations, wittFtlier pro-
visienal or absolute, a certain ctrarge he_tnadO .and that
in respect of•other registrations; the charge bkvistle, by
way of fee; propostienate to the,tXpense cemputed to be
otcasioned, t4rehl to the office, such fees being from
time to time appointed by the Treasur7„
6. That for eptbrelne,c, bitch regia*uon, iris expedient
to prOvide..that any future corapanWat registered shall
nbt be lawful. • "
7.' Thaeiri order 6:Prevent jobbing:in:shires of non-
registered companiei auk: other-cdmpiinies in an imma-
ture state, no allotment of shares Iteee anyiegal effect
till the company . be provisionally registered; and all
sales or, transfers of shares be' prohibited till the corn-
pauy.be completely registered.., •
8...1:114 due provision be made for defining and de-
daring the duties of the severalofficere of the, o*pany,
to such eitent,.at least, as is usually 'prOvided by. Acts of
Parliament and charters for the, mporporation of Com-
panies; that the remedies of shareholders against direc-
tors, for abuse and excess of their functions, be declared
and facilitated; and' that generally the legal and 'e4uitable
remedies available to iota-stock companies, and to their
directors, officers and shareholders, inter se be facilitated
and igaprdted....
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