The Sun.
London, England, 1844-04-20 00:00:00

investigation of a Committee of the House
of Commons than the mode in which such as-
sociations are concocted, organised, brought out,
financed, conducted, and wound up ! Such seems
to be the skeleton-history of those more epheme-
ral companies, to the cases of which the labo-
rious attention of the Select Committee was
more particularly directed. The details and
particulars, and " filling up," as the artists
call it, are to be found skilfully traced,
and vividly coloured, in the evidence appended to the,
Report. Of that Report we can spare room, to-day,
for little more than a very succinct compendiuin ; but
this will be found to embrace matters, the importance
and interest of which it would not be easy to exagge-
rate. They well deserve the most serious attention
of every reader; and on Monday we hope to publish
this document in full. The evidence and appendix,
occupying 350 folio pages, will be of course too volu-
minous for any purposes of abstract.
This "Report," after .stating that the Committee
had perused the Report prepared by Mr. BELLENDEN
KEIL 011 the Law of Partnership (presented to Parlia-
ment in 1837), and on which was founded the existing
Letters Patent Act, 1 Vie., c. 37, adverts to the de-
positions
they had taken of "other persons conversant
with joint-stock companies as to their operation and
the improvements that may be made in the
legal and equitable remedies at present available to
them, and their directors and shareholders ;" and to
the evidence they had received, " in connexion with
certain bubble companies, touching a few remark-
able cases of miscarriage or fraud." In order to
confine their inquiries within practicable limits, the
Committee divide bubble companies into three classes;
namely, 1. Those which, being faulty in their nature
(founded on unsound calculations), cannot possibly
succeed : 2. Those which, whether with good objects
or bad, are so ill constituted as to render it probable
that the miscarriages or failures incident to mis-
management must attend them : 3. Those which are
faulty or fraudulent in their object, being started
only to create shares for the purpose of jobbing in
_ _

them, or to create, under pretence of a legitimate
business, the opportunity and means of raising
funds to be shared by the adventurers who start the
company. All the companies of this last kind,
adopt, to the utmost practical extent, all the charac-
teristics of the best companies : an array of directors
and officers—a large capital announced—plausible
statements issued propounding excellent purposes ;
intimating that they are sanctioned by Act of Parlia-
ment—publishing their addresses in some conspicuous
places of business respectably situated, and employing
throughout the country respectable agents and bankers.
These pretences, of course, are, many of them ficti-
tious. To remedy the evils of this class of projects
in future, the Committee deem an easy affair—
" Publication of the directors, of the share-
holders, of the deed of settlement, of amount of capital,
and whether subscribed or not subscribed, nominal
or real, would baffle every such case." The
class of companies, No. 2 in the above reca-
pitulation, the Committee anticipates more diffi-
culty in dealing with; and the class No. 1, " faulty
in their nature," it deems to be " beyond certain
cure by the Legislature." The general remedy it
proposes, in respect of the other classes, is.the regis-
tration of new companies' prospectuses, circulars,
&c. The bubble companies, which were the imme••
diate occasion of the inquiry, having been con-
cerned in effecting assurances and granting annui-
ties, the Committee's attention was naturally directed

to such associations. Its " summary," includes-
1. The cases examined, and the character of their
objects, concoctors, and managers ; 2. The modes of
deception adopted ; 3. The duration of the compa-
nies ; 4. The amount and distribution of the
plunder ; 5. The circumstances of the victims ;
6. The impunity of the offenders. " Exami-
nations by which the character and conduct of
individuals were implicated, and which are therefore
excluded from the evidence annexed," relate to ten
companies, viz., seven insurance, annuity, and loan
companies, three mining and general ditto. In
eight of these the concern was represented to have
been founded by mere adventurers, on schemes evi-
dently fraudulent.
The history of some of these companies, and the
processes of fraud by which dishonest managers,
directors, &c., realised large sums, will be perused
with astonishment. We can quote at present only a
passage or two from this portion of the Report. An
insurance office was established by one or two per-
sons, one an uncertificated bankrupt, on terms highly
advantageous to himself as resident manager, and
shareholder of 100 shares : but which, owing to dis-
putes among the parties, was dissolved after effecting
insurances to a considerable extent. "On behalf of
this company a prospectus was issued, containing
highly respectable names. It appeared from some
legal proceedings that the number of shareholders
was only eleven—who: were all directors." Under
" Direction of Companies " we meet with this anec-
tote :—" Another company existed for four years,
the manager having deluded the directors by flourish-
ing statements of accounts, until some of them be-
came suspicious, and, on examination, found they had
no funds. They were obliged to pay the manager
.)7 • 000/ to induce him to remove, there being, in the
*
Teed of settlement, a provision that he was to have
1,0001. a year." And under " The Amount and Dis.
tribution of the Plunder," we have this :—" One of
the least creditable of these concerns obtained, in the
course of two or three years, from about 120,0001.
to 150,000/.7 and another at least 100,0001. By
another, the shareholders lost about 100,000/. ; by
another, 80,0001. were lost in London, and 10,0001.
in Edinburgh. In two cases, where the chief actors
had been bankrupts, no books or accounts were forth-
coming. In another, the clue was, the enrolment of
annuities." Here, for the present, we must close.

if any credit could be given to their
Madrid journals, of the 12th instant, have been re-
ceived, e
the BRAVO Ministry increases in public
fu
strength every day. They have the entire
statements,c
a vvo dr ,
aa nn
confidence of Queen CHRISTINA, who is virtually
Regent. Some changes were anticipated relative to
the Church. The Minister of Justice had interviews
with several Archbishops and Bishops, who were on
their return to their dioceses, and the latter were
stated to have retired from the interview highly
satisfied with the views of the Government. The
Church and martial.law are to be the main springs of
the Government under the new system.
The Three per Cents. were done at 351 for cash,
and 36i at 60 days ; the Four per Cents. at 22 for
the 6th of June; the Five per Cents. at 22i for cash,
and 23k at 60 days.

The Paris papers of Thursday bring the conclusion
of the debate in the Chamber of Peers, the result of
which we have already given. Great preparations
are in progress for a combined attack on the " Man
of Ghent" by the Right and Left of the Chamber—
the Liberal (if any party in France can be called
Liberal), and the Tory parties. One of the organs of
the former section states that the Deputies of M.
()DILLON BARROT'S party held a meeting on Wed-
nesday, to deliberate on the re-election of M. CHAS.
LAFFITTE, and the questions to be put to Ministers on
the Otaheite affair. It was decided that the annul-
ment of the election should be insisted upon, but no
determination was come to as regards the part to be
taken by these Deputies in the debate about to be
entered on as to the disavowal of the measure taken by
Admiral DUPETIT Tuouaus. It is confidently ex-
pected that M. THIERS will take part in the discus-
sion. It is affirmed that they have resolved to call
upon the Government to produce all_ the papers trans-
mitted from different officers in the Pacific, and
in case of refusal (of which there can be no doubt),
they would protest against such policy, and, pro-
bably, move a vote of censure. The Legitimatists,
under the guidance of Al. BBRRYER, had concurred
in these plans. In reference to the Otaheite affair
M. THIERS' paper makes these sarcastic remarks
" It is announced that numerous promotions are about to
take place in the navy. For the first time the nomination of
a Lieutenant de Vaisseau to the grade of Captain de Corvette
has become a Cabinet question. It is M. yeine who gives
the importance of an affair of State to a simple question of
promotion. If this officer shall consent to leave M. Dupetit
Thouars, under imputations which the Ministers have cast
upon him ; if he preserve a silence which a proper sense of
duty does not impose upon him ; if lieconsent to sacrifice his
superior and friend, M. Rein° will be Capitaine de Corvette,
etshdeaYl4th ult., according to states that accounts
have h e
been Journal
and perhaps be made an officer of the Legion of Honour ;
'
otherwise he will not."
rrnecaelidveudiffraotinTe
Haytiofl\r )
e ctlnf
which the disturbances in that country have assumed a still
more serious aspect. All the army and the National Guards
were preparing to march against the insurgents, and a de-
cisive affair was expected. The Government appeared con-
fident cf being able to put down the revolt.
A letter from Rio Janeiro anuetuues that the frigate