The Sun. — 1868-12-18 (London, England)

SHAREHOLDERS' PROTECTION SOCIETY.  On Thursday afternoon a meeting of shareholders in railways and other joint-stock companies was held at the London Tavern, for the purpose of considering what steps ought to be taken to protect them in the present state of commercial affairs. Mr. W. BROOKS, on being called to the chair, said there were thousands of shareholders suffering extreme distress, not only in the metropolis, but in all parts of the country, on account of the liabilities they bad incurred in connection with joint-Mock companies. He had received many representations and many suggestions and sehemes for the relief of the present distress. Some persons had suggested a philanthropic system, such as the Society for Protecting Young Women. He did not think there was much sympathy for shareholders out of doors, and much esprit de corps among their own body. When companies were started, shareholders implicitly followed the directors, and at length they found that their confidence had been abused, and they fell an easy prey to the lawyers. In time past lawyers were a plague, but liquidators were a great deal worse, and he knew cases in which liquidators had most shamefully squandered the property. A lawyer went up to a court and received his 6s. Bd. or 13s. 4d., but a liquidator received twelve guineas a day for his attendance. No wonder, therefore, that the assets of companies mysteriously disappeared. At present the law was in a most disgraceful state, and frauds of the grossest and most abominable character were perpetrated, concocted by men in -what were called respectable mercantile positions. Shareholders were plundered, and the ill-gotten gains were appropriated to the purchase of estates, or to obtaining a seat in Parliament. Such men were received into society because they were successful, and the plundered shareholders had no remedy. There had only been three or four prosecutions in connection with these frauds, only three convictions. Of these two had received her Majesty's free pardon. In one case her Majesty's late Secretary of State had released the person connected with the frauds on the Leeds Bank because confinement did not agree with him, and because within twelve months he had lost a few Pounds of flesh. During that time there had been twentyseven premature deaths among the plundered shareholders, seven of them being suicides. He thought that attempts should be made to obtain an alteration of the law,particularly in the matter of winding up. The chairman concluded by suggesting that a protective association should be formed, expressing his conviction that there were persons at the Board of Trade who would give valuable assistance in carrying out the scheme. Dr. Tnom, after giving some startling facts in reference to practices in various joint-stock companies, and suggesting remedies, proposed that an association should be formed to' be called " The Shareholders' Protection Society." Mr. H. N. NASH, in seconding the resolution, expressed .hope that the association should embrace all companies. Several gentlemen expressed a fear that the shareholders  would scarcely be found to join a common association, preferring to act together in individual cases of failing companies. On the other hand, it was strongly urged that it would be very desirable to make the experiment, inasmuch as no very serious risks coald be incurred. The Chairman then put the resolution, and it was carried, it being arranged that any person paying two guineas a year should be a member of the society.  The society was then declared formed, and Mr. Brooks was elected chairman.  Dr. Thom, Mr. James Beal, and Mr. J. L. Nash were appointed a committee to carry out the arrangements,  The nominations of the new Ministers will take place at the beginning of next week, and so far no opposition is threatened in any case. On Monday Mr. Gladstone will be nominated at Greenwich, Mr. Bright at Birmingham, the Chancellor of the Exchequer for the University of London, Mr. Goschen in the City, Mr. Forster at Bradford, Mr. Stansfeld at Halifax, the Attorney-General at Plymouth, and the Solicitor-General at Exeter. Mr. Cardwell will be returned for the city of Oxford on Tuesday.