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

JOINT-STOOK COMPANIES.
FIRST REPORT. .
The Select Committee appointed to inquire into the
state of the Laws, respecting Joint-Stock Companies
(except Banking Companies), with a view to the
.greater Security of the public, and who were em-
powered to report their opinion thereupon, from
time to time, to the /louse, have made a progress in
the matters referred to them, and have agreed to the
• following Report and Resolutions:— -
YourCominittee have had laid before them the report
on th 6 law of partnership, which was prepared by Mr.
Bellenden, ICer,b)i the:-direetion ef, the Lords of the Com-
mitteer of Privy Council for Trade, and. presented to Par-
liamentl4 Abe year 1837.
This report. contains'the tividenee'of several eminent
merchantii, bankers, and lawyers, conversant with mer-
cantile transactions, upon which was founded the exist-
ing Letters Patent Act, 1 Vic." c. 73 (1837), by, which
her Majesty is. empowered to grant letters patent, or
charters of.a limited nature, to joint-stock,companies.
In .addition to ,the above mentioned evidence. your
Committee, in pursuance of the declared end of the re-
ference to them, viz., the better security of the public,
have received evidence of other persons conversant with
joint-stock companies as to their operation, and as to the
improvements which may be made in the legal and
equitable remedies at present available to companies, and
to their cy.t.ectors and shareholders.
In fipther pursuance of this object, your Committee
thougtit it desirable, notwithstanding the notoriety of the
eir!:Kunstances which had attended the concoction, pro-
gress, and termination of some bubble companies, to re-
:teive evidence df a few remarkable cases of miscarriage
or fraud, with s view to practical remedies to be, specifi-
cally directed to such eases. -
But as an inqitiry of that.kisd could not be satisfac-
-torily conducted. without involving the _eharacter and
conduct of a great number of persons, which would make
it necessary to give them an opportunity of being heard,
and that necessity would involve a course of investigation,
which, from its extent in point of time, as well as from
its complicated nature, must be beyond both the com-
petence of a Parliamentaryq. Committee, and the demands
of the occasion, your. Committee felt compelled, in
taking this course, totconfine.themselves, wichin, the nar-
rowest limits. -
Although these inqiiiries were so restricted, it was
.fOund impossible to conduct the without in aiwne nlea-
Mire implicating individuals by the necessarily :ex parte
statements of witnesses incidentally made 'before your
Committee. , '• -

making investments of ,this kind, to learn more easily
and more accurately the real nature of these companies;
so that, at least, the ignorant may not be so much mis-
led by the example of persons of weight and intelligence,
who have sometimes, with extraordinary recklessness,
connected themselves with companies, which, whether
the objects of the promoters, the nature of the enter-
prise, or the constitution of the company be considered,
must be regarded as of a questionable character.
The bubble companies, which were the immediate oc-
casion of this inquiry, being concerned in effecting as-
surances and granting annuities, the attention of your
Committee was naturally directed to companies and so-
cieties engaged in that most important class of-under-
takings. They believe that, generally, they are deserv-
ing of the highest credit on account, of the respectability
their managements and thesounaess of their schemes;
but instances of abuse which have occurred justify and
demand inquiry: Accordingly,' your Committee have
taken some evidence on the subject r and for the pur-
pose ofobtaining further and more complete information,
they issued at the close of the last session s. list al:merits,
in answer to which they have received returns from a
considerable number of those companies.

Your Committee propose, as soon as the information
to be supplied by the answers to these queries can be
properly collated, to prosecute their inquiries in this di..
rection, with a view, on the one hand, to suggest such
practical facilities and encouragements as ft may be in the
power of the Legislature to afford to these companies for
the furtherance of the 'system of Life Assuranee, sa im-
portant to the well-heing of the nation at large ; and, on
the other, to prescribe such reasonable precautions as may
be requisite to ensure the faithful observance, on the part
of such companies, of the extensive obligations into which
they enter with the public. •

Your Committee now proceed to aubmit the summary
to which reference has • been made. It shortly des-
scribes :-•;-• ;. • •• •
The cases examined, and the character of their objects,
concoetors •and managers. - •
The modes of deception adopted.
The duration of the companies.. •
The amount and distribution of the plunder.
The circumstances of the victims.
The impunity of the offenders.
CASES EXAMINED, AND CIIARACTER pOF THEIR OBJECTS,
.CONCOCTORS, ANT) MANAGERS.
The examinations by which the condUct and character
of individifals are implicated, and which are therefore
excluded from the annexed"evidente, relate to ten com-
panies] fo! t `following ntrpoSes t--

_ .
_Tinder these circumstances, our Conitnittee have de , Seven insurance, annuity; and loan companies.
termined, at the risk, of . sacrificing some portion of the = Three mining and general:companies.; ,G- 'f': ~•:
weight which their recommendations would derive _from In eight of these cases the concern is represented to.have
'tlie pnbliCatiOn of this per; of the -evidence;-to state sum- •been founded by mere adventurers, and upon schemes
niarily the general results of it, and to give, at iength 'the evidently fraudulent, or greatly miscalculated.
remainder, to which objection does not apply. - In one of the remainder, the company': was bona ,fide
With regard, however* to ' one particular scheme, as imits object arid in its construction; but owing to the
the circumstances connected with it have been brought negligence of the directors in superintending, the ex-
frilly before the_ world.• in judicial
-investigations, your change of certificates of •sheres for scrip, aud•the can-
' Conanittee have mit thought it.ruseessary to ntaintain the ceiling of the scrip, one. of the 'officera was enabled! to
same degree of reserve. • ' ;.,. ,
~ . .'., ':, . ' possess:himself- of the• lattera.and. to deposit it its a col-
In perusing the evidence thus'eurtMlek rt.will• be ne.7 lateral-security for loans to himself, by which the shares
cessary.to bear in mind that the .intimations of the 'ens- became' nearly doubled in number:. This officer is' re-
rdetertstica of bubble' Ompanies mustneceisarilYbemore - presented-to have been the more easily enabled to prac-
faint., than if:the:eonriltijon in- life, circumitanees, and tine such a fraud, as the directors left the management
charaeter.bf the indiviihmls-concerned-in 'the COncoction in all its_ branches to him, as they considered him a very
2, and conduct of -them
_were stated in detail, with. the in-. superior man, beingn maxi of science, in an independent
eidenta wbictuilldielo, •On the one hand, the-eunningef station afire, and a-Government contractor. - •
a thefruniulent.premoter ; .and, on. the...ot6r; "the' gross The eese:appearato•be One 'net of general fraud in the
negligence and censurable acquiescence under, which in- concoction and monageinent; of a company, but'
of i?ier-
telligent and_ respectalsle persons"hare - aisrsted. to sup- confidence oil the pert of the directors in their ethOr, and
port such companies': by their names,. or by theft: contri- pf breach of_trust on his part.
butions.and liabilities, - .. .• , - - • • In the remaining ease the concern,' though. Of. a niulti-
_
Ilia probably thiawilinot be deemed of_4lollinPort- ' farlious•and-questionable character, was originally Zona
ance, . since, • generally speaking, the cirou.mstincea of ' Me, and conducted by or under the superintendence of
4aUd„andniiSinanagkment. in the conduct of such corn- a respectable- direction; but, subsequently the:parties to
I pigmies are so notorious alto have provided.the.least ob- the direction appear to have retired,, and left the can-
servantwith instances of the necessity for the suggestions cern tothe management of a single person, wnO,became
iviiiLdi yoni corataittee propose. - - - . Latterly, therefore, this. concern was, a a
,
Fromthe evidence .which has been taken n is, this head, fraudulent character, two; of the parties, by whom,there-.
it appears that bubble `companies. may be divided into cent Policies had been signed being hankinpts ' - . .
three classes_ :--s--: .. -.- '• • . ,••' ' • 'lt waS.A'grovision in the killearif the concern, 'Which was
- .Ist. Those which, being faulty in their nature, . inas- a benefit society as well as a joint stoCk company, that this
much 'as-
,they are 'founded on unsound calculations, officer was to. hold his office for life.; and it is to be pb-
caniof succeed by any, possibility. :. - . .... .' '. ~ . served, that incither cases of afrandulent kind-provisions
2dlyo-ThOse wnieh, let their objects be good` or bad, are made of a similar nature, securing to particulir in-
are,sq .111-coustitiited as to render it. .probable that the dividuali offices . for-.life, as Well:tie considerable tidvan-
-. miscarriages or fallures incident to mismanagementiv.iii-
tages,in.point of emolument- ni shares: Such a provision
att.4,l,theni -,... andla-, is to be found sometimes in concerns that prove to, be
' - -; -; . -••--.- -•.-, : .„ . .
3dly. •Tho.se which are faulty ;or fraudulent in their bona fide and successful; but it is probably a common
objeot;being started for no other purpose than tocreate . characteristic of the worst kind of cases, and is ,always
aharas:.for. .thePerpose -Of jobbing in them' or to create, liable to the .disadvantage of inducinekwent, etcareaind
Under pretence. of .carrying on alegitiinatebusiness, the attention on' the port of the. persons in whoSe'faveur.
opportu-nity and means of raising fondsto.beaharect by it is Made: In another case auditors Were appointed
the adventureta who start the company; •
,-- . - ' for life.• .' - ' • ' - ' • 1 •`: • - .. '
All the cOrapanies, of the last class el. course 044.0 ' . One of the seheines to which 'alltisiOn`waa gig Made.
far as possible, the outward characteristic common to' was founded !by the enterprise of ,e,' faMily of swindlers,'
those of the best kink ~I,;hpy exhibit an array of direct- one of whom changed his name and became a trustee and
tors,.and officer,-announce ,a• large capital—adopt the chief manager.of the cearipany. ,He was apersonWithont
itite and title•of it•cetnpanyissue pleusiblestatements means, but succeeded .in inducing several Memberi of
,intiisia4ink eipellent purposes—ieclare. that "theY are Parliament and other persons of station to act int he ca-
-sanctioned Or- empowered by Act of, Parliainentiise
,parity of directors and -trustees, upon,- the . persuasion
some conspicuous place offinsiness,,in; a reSpectabie si- that it , would do good, and on the understanding . that
tuatieria,and,eniptoytnrougheitt tbe country respectable their names were to be user, but that they were ilpit to be
agenis'and bankers. .. .'•• . - liable; and these gentlemen appear to haVe•censidered
.
• Batniany or, those characteristics are fictitious. : The that they were
.trierely.dein,,4 an' act of kindness to. the
DirciterS .haVe either not.
_sanctioned the'. use
.tif !their individual" who was Meatier promoter "of .the Company,
naines, or they are not the persons they are supposed to and, not to be sensible that' it inflicted injury upon the
be..": tfot tally. is there no Capital; but neithersubscribers public, and: upon. the 'parties. Whopliced'undue ctinfi-
nordeed of .settlement: .The style of the cempanynaoy. . denee in a concern supported by their -names:',-One of
be true,' because any company • *may adopt 'such style ; -them, it trustee, held that helves only respOnsible,for the
but tligir purp4ses.llintigh,pUusible, are 'often. founded , moneys which came into his hands, and that h'ewas net
on calculations which do not admit of sucee-sa,-• and they bound to see that the moneys-of the convert" Caine to
have not only not received the-sanction or authority of him. In fact,. he received nothing ;, while the company
Parliament, or 'of thetrown, but" the verykatnteti which had the advantage of the credit which was given to it on
are cited as conferring the authority, will be found to account' of the respectability-of the. names:under which
havna very different object: •; .'' • " .., . it was announced. , , ' • .. • .'' • .
Though their place of basinesi may haVe all the inch- It appeared that on thebreaking "up of•the concern
cations of respectability, the persons employed there will there Were feW bii;th fide shirehOlcters; and seine .of them
not always be found' toots of ti' corresponding charetter; ' 'had beConi,esuch
.by compulsion,- It being 'made part itf
and though good ag:mtgare employed; it will be found the terms :Upon which they 'Were fasatured' with :dig
that they'have-been tricked into . accepting the agenda- connts; 'in order that they might not be able to take
partly "by the other indicetiunS.of rjspcptabilityomployed- proceedings! 'against the company. of which they were
by these companies, and partly. bytemptingcorntaissions;. members -Others were minors,. married women, le-
arid the banketls are no Nether parties thrth- that, in,the ;bourers, and smell tradesmen. • : -
.• • •
ordinary Course of business; they have permitted'the con-, : Another company incorporated byAct of Parliament,
cern*: te,open
,ate account with thein.. = .•.,':, .- • was established for an object not inite nature pe,stion-
, IY,itli this el-ass the ilmedy IS! easy; ptintidation"Of the able, biitTthe-scheineWas based.on fraeduient represent*-
lirectora, of the shareholders, of ilia deed -priettliinient, • tiOns;. ' Several-prospectuses were issued,, each differing
of theartiountof the Cipital; 'atid'athether subscribed or 'in some 'important particular from the other, •and the
nokaiit'Seribed,notniaill or mat-would-baffle every. case list of- shit?ehoiderS' slili filled up hy '.a a'tilcurcanvais
of fraud which has come under the notice:Of .YCnir Com- Pri-Vately.eonduCteds the 'nand-method! of Proceeding by
anittee;,...,- Ther.public vrout 1 ;WVe- the means of knowing-, Adfeitisethent hot being 4d6pted in, ilts' case 1 - 1
Wi th"yaioni they deal; and agents and blinkers would be After the 'establishnient of -the company ,air Act of,
enabled; to avoid participating in the. discredit:Of...such , Parliament was obtainedf. a board-of directors thereby
caiticerna, py giVing the,satiction. of their slittnest' to! noes - appointed, to '
remain , in-. office for three years and- up--
tionable undertakings. • . -
Thet..difficidly is greater with the second class of coin- • the managing director._ Ow,ing to, the.want of power to
paniga-A)r waist. objeCts but ill-OCitistitutecl.. Coinpanies inspect the.books endpaper% of .the company, and
,to call
of the third class, which are fraudulent in • th,eir objeCts, a meeting,
_ , the. shareholders were .unable, to -,remote.
are Commonly. shirt-lived';` -birctirnstanc(lo- of ,suspicicin their' 'directhis On discovering - the mismanagement of
soon
,arise, which
,I4dcloc, the precautions" already .men- the concern., , .. -,
tinned,-; would avail. ;to ' coUnteract the _-projeCtora„ : ' Injunctions were obtained'- &bat 'the Court of; Chart-
but . 'the chaincter • and. - credit :of -the- pertiOnS ' en- ' Cery-toViStrale their. proceedings; and Sub,`seqtiently the
gaged. in companies a .this,._ secor4 -clasa,'ll'all.'suti- • Legislature passed atiot!tCr Act , giving the shareholders•pieiert. =,The '.directers :.themselVes are often. *Life- the necessary powers to remove the Directors .'- • ;
rent', age
•.careless, triustliiret -too! mucli• -to ' their- of: . The other companies have not been the subject of di-
' ficers a ,ahareholders.purchase on;.the strength hf their'- red erainination, hut were incidentally meetioned. ..
- names, withont due inquiry, and thus cOnferlactitions • An'ininranee-ofilee was established by an individual
support' ''; so that one set of persons relying uPprianatt er ' tipen - the terms.'of receiving, '• in - the-eapacity • of taa-
set, the delusion is sustained for a longer space of time: 2nager - and' cenCoctor; 1,090 C per- annutitt; under the
• • Publication' bf thedircetpraind.shateholdera' •of deeds ' directien.of men 'cif the highest charecter and res-pee
of setiterrient,-and of flae-,eapital;•Will nor:met vthip:class liability,' but left to' the conduct of ;that indiriefuel-Who'
of cases ; but it • may-be met by the periodical holding ' dartiuded them. •. •• •' ' ' ' - ' '' . .
i.
of rneetingsr,.-by, the' perindicalr balancing, audit and Another insurance-office s wits' • eiteblished by one or
-pagination :of . ,accounts,, and by. inakieg7the -clirec- .tivOpersOns,-'one anuncertificated'hankftipt, upan. terms
. : ters:.and ,offieers
.more ,immediately"
-responsible ,to highly • adVantageOtis -to hiinself is resident-tnanigir
, '. the,aiharehOlders, ••, which .• May > --probably ..be:. ac- and shareholder of 100 'shares,' but which; oivini`ti.ilfs'
' . eoinpliShett -'-: by . ; facilitating r-- and • ! impinvinga • the '-pines among the partieO, was diSsolved,- after `effecting
remedies available to, joint-stn-Corapaalets--antt-their' insiireneei•to a considerable extent. 1' ' . - -''
shareholders; Mier' ;e: ::Ppiiiidieit 'accounts, if honestly. ':--Os hehatfrif the company;- t 1 piOspecttit '4FiiiiSsued,•
icsai:aa fairly audited; cannot fail to orate attention to containinghighly.respectable names'. It' hPpeared, from.
' kafe..of a concern; and. ,by meatiS, :of iniprOved
~SOrse legal ptoceedingiclhatilte ntithbei.of Shitiebolders
the retil
relnasdisis, parties to mismanagement maybe, toads more.: 'Was -ontar:ele,4id; Nih&Weereill direeters. -. '-''' .-".7 ' ''. •
.stmnable. for acts of fruit art-d:'illegality.l :: .: ' ' ' ' . Koid•e of. the'parties•:Wthe list concern' Were. fiiund.
The only. class which is. 44014 certain care. byrthe 'again' eatiblishing;anether'insbraricesPifice under a W.:.
• Legislature isahe first class--co mpanieS folks? in their ferentl' *tame,' and aliO anbther 'society :tor it, different'
,nature., 'No antecedent' o*k:wilt avail ;,,ink :authOtity i pnepoit;,•which'latia failed. ' 'T.': • ~.-... ,-' , . ..:., ..: ,
.
&ppm • ted to act as censor would be as liable -to. bo, de- .• :
..; ,s'in' atrtnia • Or, DiezPito,AtiOrrEt; ' -', '' '- I -
coi.vedas.the'Prmnoters of ti.4'.lsPherriestainti.' it might' 1. :These-cOneerns continued.' to accoMilliah- tli7eliffrauds
sometimes sanction tivi;axid •14, paler times`.-PWargrit good by the'olhiwing•inisclei of deeeption, from same of which
eehethea:-. • . . .
~
~ ,
.._
~
.. , good concerns, are, not- itholly -free,' and 36'4r-they
‘. , ._ .
tration,. :sanction the adoPtion of: thorn by the -.woriti;4o:--ite-.
. rig early ;publicatidn, •.`r,Oniting. 7 fro 4! rdigis'-
Wili.dopbtlesi be- •ciistoriftlin. public not to regard-014'st; a typo
,or tOt ;of
- 'Of...thar prospectuses And.eirculars,
Miley lir,controlling sitcji undertakings a; 'their.outset-,- 'dishonesty; •.'--` . - - • - , , i ,• ', •!,..-
.. • . .:
- '-py.rtheuseofthenatner'of PersOnahavingn,o e*iStenCe:
I..it,r Wall ether catrs4 orfaii44:r6:-lesstgdtf'.44.!-,P of
i• -thie ethos 7wilt, in all probability, strike ate :attention i. -Bythetise`Orthe. names of distinguishql,persona,:and
'ilioretAarril'hithe etpoittreptfailing emapitniri..pUblie
.1:06.00. ofrcsisectabili ty 44,144.1 th, w,ithoolheliattti‘o-
opiatOn isidastibliaeonilise.iosi tlaiihead may liclftiproved. •rity: •.! .• - ; •-*-- - ' ' - • , 'l'- , -,. - , • -,' ~
Its itOcordan,be with tisete views your -Pthritaiiteelieve: :' 'By the use .of ' the names of such PetUriS witiairoils
pea4eir ainidry reablistiarti;t:llliited to thiplijet ta.ilho've rand' lientirery. ctreeters;With''their''consent; While:. s:iiilli
indieased,;. if. it shall bO,---'fositictlereafter.t.ll.444.QXPe- personalia'oe.beenignorant:Of the nature-of 04
.ColiCern
AktptYierehy,contemnlatri do Apt meerthiS tuilleiont arid' of its trenaactionsand have*ercised do` Control
Px-Wttkl,;,.they revtA4.ls-ji:',344 estibliihto4-,;(:Cthe ' ovett•its..tho4Agemetit: • -.:,..- - - -- - • :., , ,
propetted'-plau of registraitionOlie Legisktiarti may Eds- :' By the issue of prOspectutes itn&edy.ertisemblay &in.
iiiipeti4e! sintepents.ar'to the authority wider which
44":3141prte atArs,_ of 4 .;;FttetwOrtl4 chat:icier ithiell.reilt ta.
.`lds'Ear ePlucted, afid -rosy pr'4,4(l with ructre` confidence- it exist;, as to aMOUnt ireit.pit4 of tb,,,,conve,ny or
to-aupplythetprovisioist whit:ll4olAl' be fonnds-siranting. . as to the period or its -_eitablistunenti ' as.,Well Ms to the
sop,,t4oo:rick zotxiinmendtkti,os—tAleitall. ljah
,a,Aregi" Itratioint_of i directors; .lic•-', above-mentioned ,'. • , ' . '
_ Pfflues,eyour tiammi tee are swollen by, ' getting.
of 'Wired meetings, •
•' • . 'i , ..py.' reports Re p. • 144, , sift"
' 111,t ellirl bf -idok*tiv ivory" person ciensulted or ex-. t lefatiie thereto,,,lnserfed inthicfneWipaperra;
.:-
amine .9Y,- r• Bolkudeenrass wellji:,4ltbivit-- By pfosPeCtitse4 fraudulently varied fiorntitne to.time time:
nessea gene!'alily wh§,hliielieili-ixamined bircu.i.coni,:. : By the ethploytnent throughout the.donntryl-On very
mittesa' •.,
;,. - !- 1 . a- - :I
'':; '"' ' -,- -' ' ' ' tempting 'Mies of commission, of- resPectrible agents
Ori-atlio.- labSidiattilePtiltifilalie evideneal4"4 a se whose- aniracter hits Chiaked 'the want: of resp.' OtOility
geniial ; .-but 1n re,fere,nee
bad 'regard tolhe prOtiatenVianienV*
to ti your Cestuntitieelay 'of 'thilebiniany • 'ln- one' Pi' two remarkable:CaSeS this
aft ,to the inst ' •
ithßeleet toe.'
.14Peari-to have .b•,erf' the-Meat -efficient Wearia.'6fsUecess;
the incorporated comp:mei'.
business at 'a distance, 'where inbiiiries
whielffirov ,e(ime uncle?' *hair deice, and'alrieli9.4bu"' ,could-4 procured
iir • `tl' ' - . -'• ' -'h ' . ''' f, th
tia'tliah' tt) -*c-ill. 14 ' '4tsqtEgail °Pait#o9t4Prappear
.n t.:
..e.lig
s!ij
.the, 9 , ri.Ft.q.:?, i e
• . ---
„...,, , ,
roe of - 41incertt: •' - 1 - -
prevention and .... ______
ilkolien-bitnitiitg_tia4t6tkrifts the Bhilk' of :Wend
On the suggas,t4:4.4livr taitn,proveinent of the live'. 'Mid Othelleipectable bankt:. .-' ' ' - ..- ' ... '
partttersinp, • and to pgattAt44.4,47t. --
crftentinialigaUtt°e,'Pupriovntiohle
ferh.sitlintenr2e.n, vaKluearb,sW.
rtvgleit,nce.,his' -4tlL);:iu4P4 rn Tor rOils‘PP-iie*cia:tttailinerltll siti'l,i°.'7'',ii and
;an opintoN-...bee.au.e,:, pease, etitertaining-
bee4,4o4ed: bY: .1 , . .. . your • .-By the. cor4octors and managers living: atgrearex-
. Foilvatt..hteigehlfwbeoarrt.hy,too.feApress.
their neighboats 'and :thereby entlea
.-nsideration, thOe'ithiects 40. 'routine to f<,rtif,..,h i.- ... . ~ -..
of the refer e Which-: .- 'ItY ale ma- k_i
hat_ iiiettiois,e4ieusaaugi:ihmisaL4t sus
otipiiitcnic:ll6.ii
.not'apPear to fall vathiathfit spope
. to - d
• , ~,,,•
has betin. made to them: • . , ~ ,
,_I.- • ,-,:. •••; ..,, te,iv..6..tY.e., d,K§tbrilaikt• theSharehOldeta • which' been
7 '•.11011:i 6,k/once of 44 Parke§ on? 0,..f,7,- e',,wi.atita, sses-.l.faci,,,ll,tated..aota,
eijr4B:lifiliette''ebtints "tikte'irirriT aU'dited,
ezaiiiis,ed. by. oury GoturiaitiOs will " ii.;i ::'!";)f7ln'F' i .(3..Y11!.g.:.?Ppt.11,0*.Pz14*; a"nipi,Vinsinan OF:thi,Ma-
curOana:. as
,:to--,the,;" e;:c ten 4,, a_ , 'hose i 1.1,;'_ f;111K.,1..F.,ii, i "tll,O-01.y. Diirti.,,,,,40„-nt.,in "44._
_,.,_,
,- information'.
N,Fl24,ms 'of specabiti.4o; which would: seera,.. So recur..l;use „concern. 7
~ 1.,7 ' "..7.- 77'"17,0";.• ..!' •A"
Th -
pital Oa •false tepte-
pert really. e causes Of such aroxyants. forbid the i •:13y dec)atinidixhienill.. ,•-- • .- , .i._:.. -_ . .
hong
.af wholly preventing the rkPurol!o- Of rthern, but .sen tations'ef 'profits, rear • out °C.e.
toed:: ' • • .
._ , • :, : ' .
the sha.rtindlUcrs, Mid falsifying • 41;4 :' becks Vo-tai. rail.
yclitir,g9tnaiiiftee trust the adoption of `l,4OSe recoms _ I y.,.g the oaraes.br, pieirennotirrihgetthi et meeting.
inendattniii.which .are directed to .prevent the use of i
• •
t„,, onateatock companies., as , mere, instrtkEngnte. of share transfers!of- shares ;.' 14-the creation - "
m ems o 011-ot.tio• thel ' ' •
holders. : . , , ,
.. ~, • • '. ';
:its llintigi and to putiisti. parties . guilty; of. .illegFlL' or . as 61- 5"•..6: tII-
-•'. .:'f- '.
. e!t. 0A- ,- ama)74e share-
i
_tent- Conduct, ,iill-riiiroW the 'range of mischief
B' the use of
.the names of
.7.respict4lite. aisjoil:Oisi..aiia.
ias:Pi..'o,'-c .conduct,
these_pertetYarria.' Yeur Committee also.en- .
.• • nodrkthe
_1160,, that, .by recording the instances .of , counsel attached to tii, prospectuses and cireal-tirsi-air, the
,---,--asts• • de-
: "thififre,.with the c'iiil.se thered,' and by the 'exposure of : cgolPgq; .V..vihich mercantile and,,Oth,'.- a
c42,16.,9r-fri'l4 the'inferitiation `thus obtained and dis- rOPOcI Into a belief of thc' -Be". fide :eblia°Cer 4: the
aerP/r*kO 'will Serve: to ,counteract; in 'seine thensure, ' undertaking. - . , ;,-,. ~ , , , ~ . ',.. .. ;. .• .•.. '
the. ausceptibility. of,f . Giant 'non be deluded b -
2 . fralidulent schetnes. - pe ,a to y
.Tuit piobawy.tbsi greatest ben sgt• ." . ; Tll inTATios og coMPANIgS.: •: , _ •
~.. inAbis,direotion-will .be produced. y enabling .the.share-:, sn." •
' 4ine ;insurance 1 company lasted . two: or three. tiiis,
another. ;loan :coopany:. three years. Both -were,
brokers, and other. persona!professionaly4,4loo4 in itopped,ly-Itiki,xetuirk*:4fitll4 Pre" ° but'''°2"°°i4.