, 1891-05-20
are two sons, the Younger of whom is mar.
Tied to Princess Militsa of Montenegro. .
Limited Liability in Demeraro
(Arqosu Is ApriO

their affairs into a Limited Liability Company
calls attention still further to the important
change that is rapidly taking place in the
conditions of proprietorship of sugar estates in
this colony. Instead Of estates being ~associat-
I'd with old familia" names that have been
known to the inhabitants. some Of them for
generations. they are fast losing their indi-
viduality. and coming to be regarded merely
as the integral parts of the assets of such and
such a Company. Already q very large nun.
Der of the sugar plantations are joint-stock
property, to wit, the estates of the Colonial
Company, Limited, the Daniels and Co.,
Limited, the Belair Co. Limited, the Schoon
Ord Co. Limited, the Blairmont Go. Limited,
the LUnion Co.. Limited, the Demerara Co,
Limited and it is rumoured, with every
probability of the rumour being verified, that
another large proprietary house owning q
long list of estates is contemplating a similar
change. So far as the welfare Of the colony
at large is concerned, it is too soon to say
definitely whether the change will work bene-
Totally towards it, or otherwise. The general
opinion for years past amongst those who were
giving the question any forethought, was that
the result Of the amalgamation system which
was coming into vogue would be the complete
humiliation of the individual proprietor, as
the financing Of q monster property with a
product like sugar, liable to such sudden and
extreme market vicissitudes would require the
purse of a heavy capitalist. AS a devourer Of
capital the sugar estate has few equals and
men who had had experience of small proper
ties,-when these, came to be amalgamated
into large ones, saw the expediency of taking
care that the total loss of their sugar estate,
should that ever happen, should not involve the
loss of the rest of what other property they
owned. The multiplication of individual
owners Of one estate is also o reason for resort
ing to the Limited Liability organisation. In
course Of long years an estate that belonged,
say to two brothers, has through a series of
legacies. gravitated into the hands Of their
heirs and their heirs heirs, who have divided
and sub-divided the estate into portions to
represent their shares until it has happened
that when the share of one of these owners has
had to be sold, the transport disclosed it to be
a 550th, a 672nd, q 963rd or other similar
fractional part. This was cumbrous and con-
fusing and required great trouble on the part
of all concerned to see that neither more nor
less than the owners true share was being
transported. 1t also had another serious
drawback, to the richer of the proprietors-
eve allude to the estates liabilities, for whicQ
the largest purse in the family connection bore
the greatest responsibility. Under the Limited
Liability act, a family can keep the shares
amongst themselves, or sell them, just as they
choose they are as equally handy for tesla
mentary purposes as for raising the wind, their
transference being a matter Of cheap and brief
forInality, very different from an elaborate
transport and the richest and the poorest Of
the shareholders are on an equality with
regard to the estates debts as long as their
shares are paid up in full. And in this ques-
ton of Limited Liability lies a point that will
not escape the consideration of the local
Banks and business men in general. Hitherto
certain sugar houses or sugar families, some of
the members Of which were known to be
possessed Of riches, have had almost unlimited
drawing privileges, their drafts being readily
saleable, either in the street or in the Bank
parlour. The Limited Liability act complete
ly changes the value Of these drafts we
mean drafts issued by the same houses but i'll
the name of the Limited Liability Company.
The Cresus of the fami ly is no longer liable
to meet the drafts when the estate they are
nominally drawn against has run short Of
produce, and in the event of drafts being pro-
tested and the estate sequestrated, he will be
a loser only to the extent of his shares in the
undertaking. How this limited" liability
will act during a severe monetary crisis or
prolonged crop failure, such as the colony has
frequently experienced in the past and is not
unlikely to experience again, may well give
us serious thought. But for the connection OF
a. - III :-J::I.o1 eo~o;l;oo ON ~