THE UNIVERSITY 
 
 OF ILLINOIS 
 
 LIBRARY 
 
 ■B8T6 
 V.9 

 
 DEFENCE 
 
 JOINT STOCK COMPANIES ; 
 
 BEIKG 
 
 ^.V ATTEMPT TO SHEW THEIR LEGJLITT, 
 EXPEDIENCY, 4ND PUBLIC BENEFIT, 
 
 BY HENRY DAY. 
 
 LONDON : 
 
 PRINTED FOR LONGMAN, BURST, REIS, AND ORMZ, PATlll* 
 
 IJOSTER ROW ; AND RICHARDIOif, 
 
 ROYAL EXCHANO*. 
 
 1808. 
 
 Price 2<t. 6d.
 
 IV. Pople, Printer, 
 32, OidBoswell Court, Strqnd.
 
 TO THE GENTLEMEN, 
 
 DIRECTORS OF THE 
 
 ERITISH ALE BREWERY 
 
 Gentlemen, 
 
 The opportunities I have had of observ- 
 ing the beneficial effects resulting to indi- 
 viduals and to the public from the Insti- 
 tution to which you have done me the 
 honor of appointing me Solicitor, have 
 naturally led me to a more particular 
 investigation of the principles on which 
 that Institution is founded, and have in- 
 duced a complete conviction of their 
 general utility and importance, both to 
 the government and to society. 
 
 Sincere, however, as this conviction is, 
 'it wilUfoar bevcry inadequately expressed
 
 iV 
 
 m the following pages ; and I must con- 
 fess, that I feel no small degree of alarm 
 in appealing to the tribunal of public judg- 
 ment ; certainly not from any defect in 
 the cause, but from the weakness of the 
 advocate. One consideration, however, 
 supports me in my anxiety, and will even 
 . console me in disappointment: and I shall 
 not, whatever be the result, entirely re- 
 pent of a temerit}' , which, though it may 
 have shewn that my zeal exceeds my judg- 
 ment, has at least afforded me the high 
 and sincere gratification of expressing to 
 you. Gentlemen, (for myself and Mr. 
 Hamerton) a grateful sense of that kind- 
 ness and indulgence with which; both col- 
 lectively and individually, you have al- 
 ways favored us, and of the very high 
 esteem with which I have the honor to be, 
 
 Gentlemen, 
 Your most obedient and much obliged 
 humble servant, 
 
 Henry Dxy. 
 
 ' CMilhm Street, Fenchurch Street,
 
 b E F E N C E 
 
 JrOINT STOCK COMPANIES, 
 
 The numerous attempts which have been 
 made to disparage Joint Sock Companies, 
 in the estimation of the pubHc, and which 
 have been followed up by a motion in the 
 Court of King's Bench, from the first law- 
 officer of the crown, (grounded upon an ob- 
 solete statute, which, if ever acted upon, was 
 at least never directed against institutions si- 
 milar to those which constitute the subject of the 
 present investigation;) must, necessarily, have 
 a tendency to alarm those numerous and re- 
 spectable individuals who have so large a share 
 of property at stake, and to excite the curio- 
 sity of the public at large, whose comfort and 
 
 B
 
 accommodation are the avowed objects of their 
 association. 
 
 When it is considered that property to the 
 vast amount of nearly one hundred and fifty 
 Tfiillions is involved in this contest, and that, 
 if the doctrine Insisted upon as the true con- 
 struction of' the 6th of George I. be cof^ 
 rect, (to say nothing of rendering some of the 
 first noblemen and commoners of the realm 
 subject to indictments,) not only the breweries 
 and the distilleries, than which perhaps no 
 other associations are more advantageous to the 
 public and beneficial to the revenue, will be 
 sacrificed to " avarice and monopoly ; but ail 
 the manufacturing and other companies, which 
 are organized merely by a deed of trust, al- 
 though they have been permitted by the legis- 
 lature \:<y grow to most productive maturity, 
 will be swept away in the general wreck. 
 
 \Vhen so much radical wealth, for such it 
 may truly be termed, is at stake; it, never can 
 be .supposed that the present Chancellor of the 
 ExcjiCqtier, who in his official capacity must 
 rave e:;perienced the aid which some of these 
 companies, particularly the breweries, afford to 
 the revenue, and wlu^se liberal principles of po- 
 litical economy are similar to those of the great-
 
 est statesmen that perhaps this or any other 
 country could ever boast, will lend his assistance 
 to destroy these companies, for no other reason 
 than because their advantage to the public has 
 been so conspicuously acknowledged, that mo- 
 nopoly trembles for its existence. 
 
 When therefore the attorney general has 
 moved for an information upon an obsolete 
 and solitary act of parliament, made in very 
 different times, and with very different views, 
 against companies so distinctly and diametri- 
 cally opposite to those " mischievous projects 
 and undertakings" which were then the objects 
 of legislative suppression; and when in conse- 
 quence of the interference of such high autho- 
 rity, all those companies which have no stronger 
 bond of union than simply a deed of trust, 
 are necessarily paralyzed and placed in a state 
 of anxious suspense, not only for their pro- 
 perty bnt their persons (this act inflicting cri- 
 minal punishments,) until the court shall de- 
 clare their construction of the act in question, — ' 
 the writer of these sheets, who otherwise would 
 have remained unknown, conceives that he can- 
 not more effectually discharge his duty to that 
 particuiaY company* for which he has the ho- 
 
 * Britrsh Ale Brevvcrv. 
 
 B 2 ^
 
 none to act, and from whose numerous and re- 
 spectable members, he has at all times receiv- 
 ed the most polite attention, than by laying 
 before them and the public at large, that infor- 
 mation which has been the result of close and la- 
 borious research ; discussing the great question 
 of Joint Stock Companies under all its bear- 
 ings ; investigating their legality according ta 
 existing acts of parliament ; examining, if legal, 
 how far they are expedient as being beneficial 
 to the public, and productive to the state : and 
 how far, by co-operating with the legislature, 
 they tend to check those frauds and abuses, 
 which monopoly is so incessantly anxious to 
 multiply and perpetuate. 
 
 In referring to Joint Stock Companies, the 
 writer wishes to be understood as speaking 
 g€7ierallif. It is by no means his intention 
 either to state or to insinuate thar the present 
 spirit of speculation might not have been in 
 some instances carried too far, and have possi- 
 bly in some degree approximated to those asso- 
 ciations which were formerly denounced by the 
 legislature; at the same time he hopes he shall 
 not be deemed guilty of being actuated by 
 any censurable partiality in maintaining, that 
 the principles > which organize the company to
 
 which he has the honour to belong, and those 
 associations which have been lonned ujon si- 
 milar principles, are not only in their construc- 
 tion the most invulnerable, but at the same 
 time the most beneficial in their objects. With 
 respect to the freedom of trade, genera ly con- 
 sidered, a more recent declaration of the legis- 
 lature, hostile to that act upon which his Ma- 
 jesty's attorney general appears to place his ge- 
 neral reliance, might be here quoted, together 
 with the opinion of the present lord chief jus- 
 tice of the King's Pench, and his excellent 
 arguments against all judicial interference with 
 commercial speculations; and similar declara- 
 tions of some of our greatest statesmen and 
 writers upon political economy, since the days 
 of Mr. Adam Smith. 
 
 That intelligent writer, whose principles were 
 adopted by our most enlightened statesmen, 
 (who, however opposite in Other points, were 
 perfectly agreed upon this) has asserted the dan- 
 ger of the legislature interfering in regulating 
 the price, or mode of sale of articles of general 
 consumption. We all know the disastrous 
 consequences of attempting to remedy the scar- 
 city of provisions in France, by establishing a 
 maximum : abuses might also be pointed out in
 
 the establishment of monopolies in Great Bri- 
 tain ; but it is much more expedient to let every 
 evil of this nature cure itself, than to enact 
 laws which may ultimately tend to deprive the 
 public and the country of thpse advantages 
 which must necessarily follow the well directed 
 efforts of laudable and spirited enterprizc. 
 
 If any of these companies infringe upon 
 charters, previously granted by his jNIajesty -y 
 if upon strict examination, they are contrary 
 to any particular act of parliament, the parties 
 aggrieved may easily obtain redress. But i'f, 
 on the other hand, it should be capable of 
 demonstration, that they are neither inju- 
 rious to the rights of individuals by an inva- 
 sion of their charters, nor directly adverse to 
 any positive act of parliament, they must 
 be legal ; and with lespect to associations 
 founded upon contrary principles, it would be 
 the . highest impoHcy in the legislature, by 
 any additional interference, to attempt to sup- 
 press institutions, which, from their inhereiit 
 and organic imperfections, carry within them- 
 selves the seeds of their certain destruction. 
 
 V^'hat then, it may here be enquired, are frau- 
 dulent speculations, or in other words, ** mis- 
 chievous and prejudicial attempts or projects,"
 
 started by swiiidling and kna7ish projectors 
 to entrap ignorant individuals, to pass with- 
 out any check from the legi'slature, which by 
 not instantly suppressing, may be conceived to 
 sanction them ? and shall not that legislature . 
 deal as heavily with these speculations, us with • 
 illegal insurance offices, gambling, and other 
 transactions^ which are no less contrary to sound 
 policy than genuine morality ? 
 
 The answer to this is as ready as the dis- 
 tinction is obvious. Projects commenced with- 
 out capital, or visionary speculations, in which 
 persons of rank and property embarked, and 
 became the dupes of crazy and interested pro- 
 jectors — Combinations of individuals of any 
 particular trade meeting together to adul- 
 terate any article of daily consumption, and 
 agreeing together not to sell but at a particular 
 price 5 endeavouring to monopolize the sale of 
 any particular article — Joint Stock Companies 
 and partnerships for the exclusive purpose of 
 adulteration", avarice, and monopoly ; — Soci- 
 eties, in a word, which combined all the op- 
 posite qualities of those of the present day, 
 were justly denounced by the legislature as 
 nuisances. Such, indeed, might truly be 
 termed ** extravagant projects and undertak-
 
 ings,*' not only mischievous and injurious to 
 great numbers of his Majesty's subjects in their 
 trade, but fraudulent combinations against 
 their rights and properties; and being so de- 
 structive to the aggregate population of these 
 realms, ought not to be tolerated. But asso- 
 ciations of respectable individuals, classed ac- 
 cording to the stake they have in the con- 
 cern — associated to destroy every other spe-^ 
 cies of monopoly than that which v/ill ever 
 be the reward of fair dealing with the pubr^ 
 lie, and to co-operate with the legislature in 
 correcting those frauds, adulterations, and 
 abuses, with respect to the more immediate 
 necessaries of life (regulations for the correc- 
 tion of which, whilst they remain a dead let- 
 ter, have nevertheless swelled our statute 
 book to a most unparalleled bulk) ;— asso- 
 ciations, whose very bond of union is excel- 
 lence in quality and fairness in price, organized 
 and linked together by express covenants in 
 trust deeds, drawn by the most experienced 
 conveyancers in the metropolis, and so conduct- 
 ed as to preclude the very idea of hazard to the 
 body at large; — so far from being the objects of 
 criminal prosecution, ought to be countenanced 
 an^ encouraged by that legislature, for the en-
 
 forcement of whose regulations they so vigi- 
 lantly and efficiently co-operate. 
 
 To illustrate the arguments intended to be 
 used in favour of Joint Stock Companies, 
 it will certainly be gratifying to the curio- 
 sity, if not of the public, at least of the 
 subscribers, to give some rapid, but progres- 
 sive sketches, not only of their origin, but 
 also of those fraudulent combinations, (for 
 such they may fairly be termed,) with which 
 attempts have been made to identify them 
 by a few interested individuals ; combinations 
 against which the acts of the legislature, par- 
 ticularly the 6th George I. have been directly 
 pointed. In prosecuting this disscussion, wc 
 ought particularly to keep in view the circum- 
 stances of the times ^ when the 6th of Geo. 1. 
 was enacted ; and this becomes the more neces- 
 sary, because in the distinguishing features 
 of those times, as combined with the nature 
 of the abuse, an intelligent expounder of 
 the laws looks for the meaning of the legis- 
 lature ; and with this intelligence, and assisted 
 by the preamble, which has justly been deemed 
 the key to the act, he may be enabled accurate- 
 ly to discriminate, and precisely to acertain the
 
 10 
 
 spirit of the law, and the abuses which it was 
 intended to remedy. 
 
 Such a brief outhne of the leading circum- 
 stances of the period above alluded to, is im- 
 portant in another point of view ; since by- 
 contrasting that period, and, to use the lan- 
 guage of the legislature, those extravagant and 
 unwarrantable projects which accompanied the 
 South, Sea Bubble, with the present joint as- 
 sociations, we may form some idea how far the 
 legislature intended to interpose its authority ^ 
 and by proving that these latter associations, 
 having no other common feature ^f resem- 
 blance than that perhaps of Transfcrrability . 
 of Shares, cannot by such similarity alon.e be 
 considered within the act in question. 
 
 From an inquiry of the House of Com- 
 mons instituted in February 17^0, it appears 
 that this new mania of Bubbles or Projects 
 had been on foot for two or three years pre- 
 vious to the passing of act ; and by l^th 
 Com. Journ. 341, it ^appears that the prin- 
 cipal projects or schemes then afloat, were 22 
 in number, viz. 6 Fisheries. 3 Marine In- 
 surances. 3 Fire Insurances. 1 For purchas- 
 ing Government Securities. 1 For raising
 
 ii 
 
 Money to be emplo3^ed in Loans. 1 Forgnuif . 
 ing Annuities. 1 For raising Thames V^ater 
 in York T.ui'.d'ngs, 1 For preventing Tlob- 
 beries by Sea and Land 1 For building or buy- 
 ing Ships to let on Freiglit. . 1 For bringing 
 Coals from Newcastle. 1 For furnishing Fu- 
 nerals. 1 For carrying on trade to his Majesty's 
 German Dominions. 1 For raising the Growth 
 of Raw Silk. 
 
 Such were some of the principal schemes, 
 at the head of which were many persons of 
 high rank and dignity. l^.Ir. I^lacpherson 
 enumerates a vast number of others, some of 
 which .were truly romantic, as will be seen from 
 the following specimen, viz. 
 
 Projects for making salt water fresh — Hospi- 
 tals for Bastard Children — Oil Patent and Land 
 Security— Drying Malt with hot air — Improv- 
 ing Malt Liquors, (Capital four millions,) 
 — Supplying London with Sea Coal (Three 
 millions) — Raising Silk Worms — Transmuting 
 Quicksilver into a fine and malleable Metal — 
 Importing Spanish Jackasses for improving tlie 
 breed of Mules, (projected by a clergyman) — ■ 
 Trading in Human Hair — Fattening Hogs — 
 Project for a more inoffensive method o^ emp-
 
 12 
 
 tying N'ecessaries — Curing the Venereal Dis-. 
 ease — Making Pantiles — Furnishing Funerals 
 — A grand Dispensary (three millions,; — Wheels 
 ^nd Perpetual Motions, &c. 
 
 The following extracts from Mr. Macpher^ 
 son's History of Commerce will *, it it presum- 
 ed, be interesting, as delineating the mania 
 about the period of the South Sea Bubble ; 
 whose consequences were nearly as ruinous to 
 Great Britain, as the famous project proposed 
 by Mr. Law proved to France. 
 
 " South Sea Stock on the 2d of January, 
 1720, (Mr. Macpherson observes,) was at 890 
 percent, and on the 12th of August, 910 ; and 
 a new subscription was raised for o?ie thousand 
 perce?ii: and other Stocks were by this phrenzy 
 raised above their value, viz. East India Stock 
 445, Bank Stock 260 — which was partly occa- 
 sioned by the sale of the South Sea Stock, 
 and also out of the Biibbles (as they were justly 
 termed) or numerous lesser Stocks, at very 
 high prices, by persons who thought their money 
 safer in the stocks of these two great compa- 
 nies. The advanced prices of all these stocks, 
 greater or lesser, of every kind, were computed 
 
 * Vol. iii. p. 8-3.
 
 13 
 
 about midsummer 1720, to amount io ^five 
 hundred milUons sterling— ^y^re times as much as 
 the current cash of all Europe ; and, if the 
 yearly rent of lands and houses in Great Britain 
 do not exceed fourteen millions, and the ut- 
 most value thereof do not exceed sixteen years 
 purchase, on an average, or 224 millions of 
 money : then here was above double the value 
 of the fee-simple of all the immovable pro- 
 pcrtv of the nation^ in this chimerical traffic, 
 while the real and substantial traffic of many 
 of the dealers therein, was in a great measure 
 suspended." 
 
 After stating some of the manoeuvres of the 
 managers of the South Sea Company, to keep 
 up the delusion which the general mania had 
 occasioned, Mr. Macpherson enumerates seve- 
 ral of the projects which were then in agitation 
 • — such as a Grand Fishery Company, the peti- 
 tion for which was signed by seven Peers, and 
 several of the most opulent merchants and 
 gentlemen ; and many others which were of a 
 most extravagant description, which required 
 legislative interposition, and against which the 
 6th of George I. was expressly directed. 
 
 *' '1 he more to enforce this statute," re- 
 sumes Mr. Macpherson, " the King, on the
 
 14 
 
 very day he passed it, viz. 1 Ith June, 1720, 
 issued a Proclamation, strictly enjoining the 
 observation of the latter part of it, relating to 
 those projects vulgarly called Bubbles; whereby 
 it might have been expected that they would 
 all have shrunk to their original nothing in a 
 moment. 
 
 " For a few days, indeed, some check was 
 thereby given to this frantic traffic ; yet maugrc 
 all authority, it soon revived, and even in- 
 creased more than ever; and while they daily ad- 
 vanced in price, every one was a gainer, where- 
 by the lower classes fell into luxury and prodi- 
 gality as well as their betters. 
 
 " From morning to night the dealers therein, 
 as well as in South Sea Stock, appeared in con- 
 tinual crowds all over Exchange Alley, so as 
 to choke up the passages to it. Not a day 
 passed without fresh projects, recommended by 
 pompous advertisements in all the newspapers, 
 thereby swelled enormously, and inviting sub- 
 scribers to them — On some sixpence per cent' 
 was laid down, on others o?ie shillmg^ and 
 some came so low as one shilling per 1000/, at 
 the time of subscribing. Some of the obscure 
 keepers of these books of subcriptions, con- 
 tenting themselves with what they had got in
 
 15 
 
 the forenoon, by the subscribers of 07ic or tiCO 
 viilUoiiSy were not to be found in the afterncon 
 of the same day, the room they had hired/cr 
 a day being shut up, and they and their sub- 
 scription books never heard of more. 
 
 " On others ot these projects hco shilUiigs, 
 or two shillings and sixpence per cent, were 
 paid down, and on some few ten shillings per 
 tent, were deposited, being such as had some 
 one or more persons of known character to mid- 
 wife them into the Alley. Some were divided 
 into shares, instead of one hundred, and. one 
 thousand, upon each of which so much per 
 cent, was paid down ; and both for them and 
 the other kinds there were printed receipts 
 given, signed by persons utterly unknoivn. 
 
 " Persons of quality, of both sexes, were 
 daily engaged in many of them, avarice pre- 
 vaihng at this time over all considerations ei- 
 ther of dignity or equity ; the gentlemen com- 
 ing to taverns and coffee-houses to meet their 
 brokers, and the ladies to the shops of the mil- 
 liners and haberdashers for the same end. 
 
 ** Any impudent impostor, whilst the delu- 
 sion was at its greatest height, needed only hire 
 a room near the Alley for a few hours, and 
 open a subscription book for something relative
 
 16 
 
 to comfr%ce, manufactures, plantations, or 
 some supposed invention, either newly hatched 
 out of hilown brain, or else stolen from some 
 of the n-alv abortive projects of former reigns ; 
 and after ixSNiji^ advertised it, he might, in 
 a few hours, find subscribers for 07ie or two 
 millions, and in some cases more, of imaginary 
 stock. 
 
 ** So great was the wild confusion in the crowd 
 of Exchange Alley, that the same project, or 
 bubble, has been known to be sold at the same 
 instant of time for ten per cent, higher at one 
 end of the Alley, than at the other end. — 
 Amongst these many bubbles there were some 
 so barefaced and palpably gross, as not to have 
 so much as the shadow of any thing like feasi- 
 bility. The infatuation was at length so strong, 
 that a project was in the newspapers, advertis- 
 ing for subscribing two millions to a certain 
 promising, or profitable design, hereafter to be 
 promulgated!!!^' 
 
 After enumerating other instances of the 
 mania of these times, the author of the History 
 of Commerce proceeds to m^t^ncc globe permits^ 
 which were currently sold for sixty guineas y and 
 upwards; these were square pieces of paper 
 about the size of a playing card, on which was
 
 the impression of a seal in wax, repfesehtirig H 
 globe (the sign of the Globe Tavern, in the 
 neighbourhood), with the motto orMnscription 
 of Sail-cloth Manufactory Permits^ to which 
 no name was signed ; but the subscriber was to 
 be thereafter permitted to subscribe to a new 
 sail-cloth manufactory project, by a man who 
 was then known to be a man of fortune, though 
 afterwards involved in great calamities and 
 disgrace* 
 
 " This instance oiit of one hundred more 
 (continues the author above-mentioned), that 
 might be produced, is sufficient to display the 
 frenzy of the times : when taverns, coffee- 
 houses, and even victualling-houses, near the 
 Exchange, were constantly crowded, and there 
 was known to be much extravagance,'* 
 
 Such was the situation of the times, and the 
 popular mania, as described by the author 
 above quoted — and as from the words of the 
 statute, we may more distinctly trace the ob- 
 ject of the legislature, it is deemed indispensable 
 to state all the clauses of the act which have 
 any bearing upon the subject of discussion. 
 
 The 6th Geo. I. c. 18. is entitled, " An act 
 for better securing certain powers and privileges 
 intended to be granted by his majesty, by tw»
 
 15 
 
 charters, for insurance of shipping and mcr* 
 chandize at sea, and for suppressing several ex* 
 travagant and unwarrantable undertakings'^ 
 
 The preceding sections of this act relate to 
 the establishment and regulation of the ma- 
 rine insurance offices; but the following are 
 the enactments for suppressing the extravagant 
 and unzv arrant able undertakings pointed at iii 
 the act. 
 
 Whereas it is notorious that several undertakings or pro- 
 jects of diifcrent kinds, have since the 24th day of J une, 17 1 8, 
 been pubhckly ' contrived and practised/ or attempted to be 
 practised within the city of London, and other parts of 
 this kino-dom, as also in Ireland, and otiier parts of his ma-- 
 jesty's dominions, which • manifestly tend to the common 
 grievance, prejudice, and inconvenience, of great numbers 
 of your majesty's subjects in their trade or commerce,' and 
 other their affairs, and the persons who contrive or attempt 
 such ' dangerous and mischievous ' undertakings or projects 
 
 * under false pretences of public good,' do presume accord- 
 in >^^'' ' to their- own devices and schemes, to open books' for 
 public subscriptions, and * draw in many unwary ' persons 
 to subscribe therein towards raising great sums of money, 
 whereupon the subscribers or claimants under them do pay 
 
 * small proportions' thereof, and such proportions in the 
 whole clo amount to *very large sums,' which 'dangerous 
 and mischievous' undertakings or projects do relate to seve- 
 ral * fisheries,' and other afi'airs wherein the trade, commerce, 
 find welfare of your majesty's subjects, or great numbers of 
 them are concerned or interested : and whereas in many 
 cases the said undertakers or subscribers have since the said 
 24th day of June, 1718, presumed to act ' as if they were 
 corporate bodies,' and have pretended to make 'their shares- 
 in stocks transferrable for so doing ; and in some cases thc" 
 undertakers or subscribers, since the said 24th day of June, 
 1718, have acted or pretended to net ' under some charter*' 
 or charters, formerly granted by the crown for some parti'i'
 
 19 
 
 Cuiar or special purposes therein expressed ; and have used 
 or endeavoured to use the same charters for raising joint 
 stocks, and for making transfers or assignments, or pre- 
 tended tranfers or assignments for ' their own private lucre/ 
 which were never intended or designed by the same charters 
 respectively ; and in some cases the undertakers or subscri»- 
 bers, since the said 24th day of June 1718, have acted un- 
 der some obsolete charter or charters although the same 
 became void or voidable by nonuser or abuser, or for want 
 of making lawful elections, which were necessary for the 
 continuance thereof; and many other ' unwarrantable prac- 
 tices, (too many to enumerate) have been and daily are, and 
 may hereafter be contrived, set on foot, or proceeded upon, 
 to the ' ruin and destruction' of many of your Majesty's good 
 subjects, if a timely remedy be not provided : And whereas 
 it is become absolutely necessary, that ' all publick under- 
 takings and attempts tending to the common grievance, pre- 
 judice, and inconvenience of your Majesty's subjects in gen- 
 eral, ' or great numbers' of them, in their trade, commerce, 
 or other lawful affairs, be effectually suppressed and re- 
 strained for the future, by suitable and ' adequate punish- 
 ments' for that purpose to be ascertained and established : 
 Now ' for suppressing such mischievous and dangerous 
 undertakings and attempts, and preventing the like for the 
 future, be it enacted. That from and after the 24th of June, 
 1720, all and every the undertakings and attempts ' tending 
 to the common grievance, prejudice, and inconvenience of his 
 Majesty's subjects, or great numbers of them, in their trader 
 commerce,' or other lawful affairs; and all publick subscrip- 
 tions, receipts, payments, assignments, transfers, pretend- 
 ed assignments and transfers, and all othet matters and things 
 whatsoever for furthering, countenancing, or proceeding ia 
 any • s UGH undertaking or attempt,' more particularly the act- 
 ing or presuming to act as a corporate body or bodies ; the rais- 
 ing or pretending to raise transfcrrable stock or stocks ; the 
 transferring, or pretending to transfer or assign any share 
 or shares in such stock or stocks, without legal authority 
 cither by act of parliament, or by any charter from the 
 crown, to warrant such acting as a body corporate, or to 
 raise such transferrable stock or stocks, or to transfer share* 
 therein ; and all acting or pretending to act under any char^ 
 ter formerly granted from the crown for particular or spc- 
 «ial purposes therein expressed, by persons who do or
 
 shall use of eftdeavour to use the same charters for raising- 
 a capital stock, or for making transfers or assignments, 
 6r pretended transfers or assignrtients of Such stock, not 
 intended or designed by such charter to be raised, or trans- 
 fered ; and all acting or pretending to act under any obso- 
 lete charter becotnc void or voidable by nonuser or abuser, 
 or for want of making lawful elections, which were neces- 
 sary to continue the corporation thereby intended ; shall as 
 to all or any such acts, matters, and things as shall be acted, 
 done, attempted, endeavoured, or preceded upon, after the 
 said 24th day of June, 1720, for ever be deemed to be 
 illegal, and void, and shall not be practised or in any 
 ■wise put in execution.— § 18. 
 
 From and after the said 24th day of June, 1720, all 
 such ' unlawful undertakings and attempts' so tending to 
 the common grievance, prejudice, and inconvenience of his 
 Majesty's subjects, or a great number of them, in their trade 
 commerce or other lawful affairs,* and the making or taking- 
 of any subscriptions ' for that purpose,' the ' receiving of 
 paying of any money,' upon such subscription^, the making 
 or accepting of any assignment or transfer, or pretended as- 
 signment or transfer of any share or shares, upon any such 
 sfnbscription, and all and every 'other matter and thing 
 whatsoever for farthering, countenancing, or proceeding' in 
 any ' such' ' unlawful undertaking' or attempt, and more 
 particularly the presuming or pretending to act as a cor- 
 porate bodjf , or to raise a transferrable stock or stocks, or to 
 nxike transfers or assignments of any share or shares there- 
 in, without such legal authority as aforesaid, and all acting 
 or pretending to act under any charter formerly granted from 
 the crovi-n, for any particular or special purposes therein,, 
 expressed by persons making or endeavouring to make use 
 of such charter, for any such other purpose not thereby 
 intended, and all acting or pretending to act under any such 
 obsolete charter as is before described, and every of them> 
 as to ail or any such acts, matters, or things, as shall be s» 
 acted, done, attempted, endeL:voured, or proceeded upon 
 after the said 24-th day of June, 1720, shall be deemed to be a 
 * public nuisance,' and the same, and all causes, matters, and 
 things relating thereto, and every of them, shall for ever 
 hereafter be examined, heard, tried, and determined as ' com- 
 mon nuisances,' are to be examined, heard, tried, and de-
 
 21 
 
 termined, by or according to the laws of the realm ; and 
 »H offenders therein being thereof lawfully convicted, upwri 
 information or indictments, in any of his Majesty's Courts 
 of Record at Westminster, or in Edinburgh, or in Dublin, 
 shall be liable to such fines, peniilties, and pimishments, 
 whcrcunto persons con^^cted (or ' common and public nui- 
 sances* ure by any of the laws and statutes of f'MS realm 
 subject and liable, and morover shall incur and su tain any 
 further pains, penalties, and forfeitures, as were ordained 
 and provided by the statute of provision, and * praemunire' 
 made in the 16th year of the reign of King Richard the 
 Second, — § 19. 
 
 If any merchant or trader, at any time after the said 
 twenty-fourth day of Tune, 1'2'), Miould suffer ' any par- 
 ticular damage* in his trade, commerce, or other lawful 
 affairs, by occasion, or means of any undertaking or attempt, 
 matter or tiling, by this act declared to be unlawful as a- 
 foresaid, and will sue to be relieved therein, then and in 
 every such case, such a merchant or trader shall and may 
 have his remedy for the same by any action, to be granted 
 upon this statute against the persons, societies, orpartnerships, 
 or any of them, who contrarj' to this act, shall be engaged 
 or interested in any such unlawful undertaking or attempt ; 
 and every such action shal! be heard and determined, in 
 any of his Majesty's Courts of Record aforesaid, and no more 
 than one imparlance shall be granted or allowed, and in 
 every such court he shall recover * treble damages ' and all 
 costs,— $ JO. 
 
 IP any broker or person acting as a broker, for himself, 
 or in behalf of any others, at any time or times alter the 
 said Gkh day of June 1720, shall bargain, sell, buy, or 
 purchase, or contract or agree for the bargaining, selling, 
 buying, or purchasing, of any share or interest in any or 
 the undertakings, by this act declaretl to be unlawful, or 
 in any stock or pretended stock of such undertakers, that 
 then, and in every such case, every such broker or |)erson 
 acting as such, sh.ill not only be disabled, and rendered inca- 
 pable to be, or act as a broker for the future, but shall also 
 forfeit and lose the sum of 5001. so to be recovered, to wit. 
 Cine moiety thereof to the use of the King's Majesty, his heirs 
 and successoxs, aad the other moiety thcrcgf, to the use of
 
 any person or persons who will inform or sue for the same 
 in any of his Majesty's said Courts of Record, as afore.- 
 »aid, with full costs of suit. — § 21. 
 
 By sections 22, 23, and 24, this act is not to extend to 
 undertakings before June 14-, 1718; to prejudice the 
 two corporations hereby erected ; nor the South Sea Com^ 
 pany. 
 
 By section 25, nothing in this act shall extend or be 
 construed to extend to prohibit or restrain, the carrying 
 on of any ' home or foreign trade in partnership', in such 
 manner as hath been hitherto usually, and ' may be legally 
 done,' according to the laws of this realm now in force;, 
 excepting only as to the * insuring' of ships and goods at 
 ?ea, or going to sea j and lending money upon bottomry. 
 
 It has been considered expedient to give thQ 
 particular clauses of this act more in detail, 
 as the act itself is oiit of print, and as these 
 clauses constitute the text upon which the 
 writer of these sheets begs permission to offer 
 the following comments. 
 
 The 6th of George I. had in view a two- 
 fold object. The one to establish the two 
 offices for Marine Insurance — on the principle 
 that a Joint Stock would not only be a greater 
 security to merchants of this country in cases 
 of loss i but that it might also induce foreign 
 merchants to make their insurances in London 
 ^-the act accordingly proceeds to frame provi-
 
 2S 
 
 sions, for establishing and regulating thes« 
 Marine Insurance Companies j giving them an 
 exclusive right (with some very' trifling excep- 
 tions), to act as a company to effect insurances, 
 and lend money on bottomry. The other ob- 
 ject of the act stated in the preamble was for 
 suppressing many extravagant and univarrant- 
 able undertakings. 
 
 It commences', as we have seen, with reciting 
 that it was notorious, that several undertak- 
 ings or projects of different kinds, had since 
 June 24, 171s, been publickly coK/7Vz;<?£/ and 
 practiced — which manifestly tended to t\\tcoin- 
 171071 grievance, prejudice, and inconvenience 
 of great numbers of his Majesty* s subjects in 
 their trade and commerce, and other their af- 
 fairs. 
 
 The mania for projects about this period, as 
 recorded by the historian, appears to have been 
 almost universal. No sooner had the ]\Iis€is- 
 sippi bubble projeded by Law, evaporated 
 in France, than the South Sea and all the 
 minor bubbles which attended it, were no less 
 extravagantly and ruinously prevalent in Eng- 
 land. 
 
 We have before tsaced in the preceding ex- 
 tracts, some of the leadijig s.ymptoms of this
 
 24 
 
 extravagant influenza, which was then at its 
 ftcme\ — that property to the amount oi five 
 millions was embarked, as Mr. Macpherson 
 observes " in this chimerical traffic^ whilst the 
 real and substantial traffic of many of the 
 dealers therein was for many months in a great 
 measure suspended;" that this mania was al- 
 most universal —infecting the rich who contri-. 
 buted to support it, and the poor with luxury 
 and prodigality ; that all the coffee-houses, ta-- 
 verns, and victualling houses in the neighbour- 
 hood of Change Alley were thronged by the 
 males and their brokers ; that the latter nego- 
 ciatcd their business with the females at the 
 shops of milliners and haberdashers ; t\\z.t from 
 morning to night, the dealers in bubbles ap- 
 peared in continual crowds all over Change 
 Alley, so as to choke up the passages through 
 it s that books were opened for subscriptions as 
 low as sixpence per cent. ; that the projectors 
 hired their rooms but for a few hours, and 
 afterwards were no more heard of ; that these 
 projects, some of which were, as has been before 
 stated, for Importing Jackasses— Ernptying 
 Necessaries — Wheels with Perpetual Motion — -. 
 Curing the Venereal Disease — Building Hospi- 
 tals for Bastards, &c. — were at once, if not
 
 ridiculous, at least wild and extravagant ; that 
 these nuisances had continued for nearly three 
 years. When all these abuses, with many 
 others which might be enumerated, are col- 
 lectively comidered, they may be truly termed, 
 in the emphatic language of the legislature, 
 extravagant and unwarrantable : — and accord- 
 ingly the preamble states, that these unwar- 
 rantable practices, which had been too many 
 to enumerate, had been and daily were, and 
 might be contrived, &c. to the ruin and de^ 
 struction ofhi<: Majestifs subjects, in generate 
 or great numbers of them, in their trade and 
 other affairs — and concludes with praying that 
 these abuses should be restrained and suppress- 
 ed, and that adequate punishments should be 
 for that purpose established. 
 
 Accordingly, for suppressing such mischiev- 
 ous ind dangerous attempts, &c. and preventing 
 the like in future, the 1 8th clause enacts, that 
 all undertakings and attempts, tending to the 
 common grievance, prejudice^ and inconvenience 
 of his Majesty's subjects, or great numbers of 
 them, in their trade, commerce, or other lawful 
 affairs ; and all public subscriptions, receipts, 
 payments, assignwents, transfers, S<c. and all 
 other matters or things whatsoever, for further-
 
 ing, countenancing, or proceeding, in any sucli 
 undertakings or attempts — ^(viz. such unlaw^ 
 fill undertakings and attempts^ tending to the 
 common grievance and inconvenience of his 
 Majesty's subjects, or great numbers of them, 
 in their trade commerce, or other lawful af- 
 fairs ; and which had been termed mischievous 
 0nd ruifivus undertakijigsj more particularly 
 the acting as a corporate body ; raising trans^ 
 ferrable stock ; or acting under any obsolete 
 charter, become void or voidable, (still keep- 
 ing in view according to the subject matter, 
 and express object of the act — raising such 
 transferrable stock for the express purpose of 
 carrying on such dangerous and mischievous 
 undertakings y as described in the preamble 
 to this part of the enacting clauses), should 
 be deemed illegal and void j and not be prac- 
 tised, or in any wise put in execution. 
 
 By the 19th section, all such unlawfid at- 
 tempts or undertakings, tending to the com" 
 mon grievance, prejudice, or inconvenience, &c. 
 as in the preceding clause, or taking of any 
 subscriptions for that purpose, or receiving, or 
 paying any money upon such subscriptions, or 
 making or accepting of any assignment or 
 transfer of any share, &;c. and every other mat-
 
 S7 
 
 tcr and thing whatsoever, ror furthering, counte- 
 nancing, or proceeding, in any such undertak- 
 ing, (viz. such inisciiievoiis and ruinous under- 
 taking, tending to thecommon grievance asabove 
 described) or acting under any obsolete charter, 
 for pro.notihg suca misclnevous and ruinous 
 undertakings, should be deemed to be a public 
 nuisance^ and be examined, heard, tried, and 
 determined as a common nuisance^ and the per- 
 sons convicted should be liable to all the fines 
 and penalties inflicted by any statute, upon per- 
 sons convicted for common or pubhc nuisances, 
 and also to the penalties and forfeitures of a 
 premunire. 
 
 It is necessary here to observe, that the im- 
 mense crowds which clioked up Change Alley 
 from morning till night, drawing away in- 
 dustrious tradesmen from the regular profits 
 of industry, m their regular trade, to speculate 
 in this chimerical traffic — t\\t sixpenni^ subscrip- 
 tion books, for such unwarrantable and extra- 
 vagant projects (such as have been before men- 
 tioned, viz. importmg Spanish Jackasses — mak- 
 ing Quicissilver malleable, &c.; — l)y swindlers 
 who were here to-day but had absconded by 
 the morrow, could only be characterised in 
 legislative language, as a common or public iiui-
 
 «8 
 
 sance; and all the parties so contributing to 
 such common nuisance, were justly subjected 
 to the same species of punishment, and the 
 projectors, or more properly swindlers, who 
 availed tbemselvcs of the mania of the times 
 to take advantage of the public credulity, by 
 opening their subscription books, were as justly 
 deemed guilty of a premunire. 
 
 By the 20th section, merchants or trades- 
 men who might suffer any particular damage 
 in consequence of any undertaking by this act 
 deemed unlawful, were empowered to bring 
 their actions upon this act, against any of the 
 persons, societies, or partnerships engaged in 
 any such undertaking, and upon verdict were 
 to recover treble damages and all costs. 
 
 By the 21st section, every broker, or person 
 acting as such, transferring any stock, in any 
 such undertaking, &c. (viz. such mischievous 
 and unwarrantable undertaking, and tending 
 to the common grievance, &:c. was to be in- 
 capacitated from acting as a broker, and liable 
 to a penalty of 500/. 
 
 Two other statutes have been quoted against 
 Joint Stock Companies, viz. the 6th of Ann, 
 c, 22, and 7th Ann. c. 7 s but these are as 
 expressly confined to the Banking Trade, as the
 
 i9 
 
 6th of Geo. I. is to Marine Insurance. By these 
 statutes every association or partnership con- 
 sisting of more than six persons, for the carrying 
 on the Banking Trade, and acting as an associ- 
 ation or partnership for JMarine Insurance, is 
 declared illegal. 
 
 By another act also of the present king, 18tli 
 Geo. III. for preventing combinations in the 
 Coal Trade, it is enacted, " That any persons 
 exceeding the number of six, associated toge- 
 ther for purchasing coals for sale, shall be 
 deemed an unlawful combination to increase 
 the price of coals." 
 
 These are all the acts which specifically re- 
 gulate partnerships; but not one of them will 
 in the present instance apply — they are all penal 
 acts, and must be construed in the strictest 
 letter — they all specifically define their object, 
 and the precise line of demarcation is at 
 once definitively, explicitly, and unequivocally 
 drawn. 
 
 With the exception then of Marine Insur- 
 ance, Banking, and the Coal Trade, associa- 
 tions are not declared illegal by any positive 
 act which can be found upon the statute book. 
 
 A doctrine of this description is as absurd as
 
 50 
 
 it would otherwise be dangcrdus.--rfT5 it for t 
 moment to be contended that those numerous 
 public companies — at once respectable to them- 
 selves and beneficial to others, which originated 
 long previous to the present Joint Stock Com- 
 panies — and which have been suffered to con- 
 tinue so long unmolested — Companies, which 
 in common with the present Joint Stock Com- 
 panies, have no other bond of union than a trust 
 deed ;— are therefore illegal ? — ^Those persons 
 who contend that the acts above alluded to ap- 
 ply to Breweries, Distilleries, and other Com- 
 panies not mentioned in the act, involve them- 
 selves in the absurdity of inferring a general 
 firom a particular negative. 
 
 Are all these Companies to be now considered 
 as illegal, by one act, because consisting of more 
 than six — or are they to be deemed by another, 
 projects or undertakings, mischievous and pre- 
 judicial to his Majesty's subjects ? 
 
 Why have these Companies been suffered to 
 exist so long ? Why have they not been pro- 
 secuted as nuisances ? — Why not call forth 
 the powers of the first criminal officer of the 
 crown, to annihilate these Companies in their 
 formation ?-^Why not brand cacljr individual
 
 t5l 
 
 subscriber with the penalties of a preminure ? — » 
 Is it from mercy that these Companies have been 
 so long suffered to exist unmolested — or from 
 a consciousness that they were invulnerable to 
 the attack of any act to be found in the statute 
 book ? 
 
 It would be ridiculous to talk of the freedom 
 of trade in a country, which owes its present 
 aggrandizement to trade, if we were to be told 
 that any sums, however large, might not b© 
 raised for legal speculations, by any number of 
 subscribers, and that the whole might not di- 
 vide the profits in proportion to their respective 
 contributions ! 
 
 . It is indeed true, that in large pecuniary 
 speculations, it is frequently deemed expedient 
 to apply for acts of incorporation j but it is con- 
 ceived that the advantages to be derived, may 
 be obtained as well without such acts of incor- 
 poration as with them. ; 
 
 For if, as in the present Joint Stock Compa- 
 nies, the subscribers at large authorise and 
 appoint a certain number of their own mem- 
 bers, nominally, ostensibly, and responsibly, 
 for the joint benefit of all, to conduct the whole 
 concern, such individuals so nominated, would
 
 it is conceived, possess as much legal and ne- 
 cessary power, to act for the benefit of such 
 concern, as they could possibly derive even 
 from the exclusive sanction of an act of par- 
 liament. 
 
 Thus any Joint Stock Company would de- 
 rive as much benefit from their agents, so 
 chosen, under whatever denomination the^ 
 may be appointed to act, whether as governors, 
 directors, trustees, &c. ; as if such persons were 
 Vested with their functions under the sanction 
 of the legislature. 
 
 In the Golden Lane Brewery, for instance, 
 the subscribers amount to several hundreds ; 
 but relying upon the competency of Messrs^^ 
 Brown and Parry, they have assigned the whole 
 powers of management to these gentlemen j 
 and as a proof of the judgment of the electors, 
 and the competent eligibility of the persons so 
 nominated, the subscription shares, which were 
 originally only 501. have within the space of 
 two years, risen nearly to 100/. — the Market 
 price within one year and half being 94/. 
 
 Other institutions proceed upon similar prin- 
 ciples, with little other difference than per- 
 haps that of their objects — ^how these can bo.
 
 deemed mischievous attempts or projects, it is 
 difficult to determine. 
 
 If the names of the Brewers be admitted, 
 and regularly entered at the Excise, his Majes- 
 ty has sufficient security for the duties ; and the 
 Brewers may be prosecuted for any violations 
 of the Revenue Laws. At the same time it is 
 essential to observe, that from the large and 
 respectable guarantee which they are required 
 to give, there seems little danger to be ap- 
 prehended on that account. 
 
 There is no necessity that the names of all 
 the Proprietors should be known to support 
 any action ; consequently individuals have no 
 more difficulty in obtaining redress for any 
 civil injury from the ostensible persons acting 
 as agents for any of the Joint Stock Companies, 
 than they would have in proceeding against any 
 chartered company whatever. 
 
 Another attempt has been made to intimi- 
 date the individuals embarked, or intending to 
 embark in Joint Stock Companies, by asserting, 
 that they could in no instance whatever ex- 
 onerate themselves, or their property, from the 
 responsibility of a partnership, after they had 
 once signed the deed, although they had re-
 
 34 
 
 gulaiiy assigned their shares, and had no longer 
 any connection with the concern — such an as- 
 sertion is too ridiculous to impose even upon 
 the most implicit credulity. 
 
 As, however, such an opinion has gone abroad, 
 and has been said even to have been sanctioned 
 by counsel ; — let us examine a little into the 
 doctrine of the law of partnership, and see 
 how it applies to the point in question. 
 
 In every partnership, it is well known that the 
 property of every individual, in case of the de- 
 ficiency of any of the rest of the partners, stands 
 responsible for the debts of the firm ; nor can 
 the partners by any engagement amongst them- 
 selves, whether by deed or otherwise, exonerate 
 themselves from such responsibility. 
 
 Any contract therefore which provides that 
 rjo partner shall be responsible beyond the ex- 
 tent of his property in the firm, however bind- 
 ing upon the contracting parties composing 
 thaffirm, would nevertheless be void with re- 
 spect to the public. 
 
 It is certainly true, that until due notice of 
 an alteration in the firm, or a dissolution, to all 
 the former creditors and correspondents of the 
 house, that not only the joint and several shares
 
 in the capital employed, but the joint and se- 
 veral pFOperty of all the partners not employed 
 in trade, would be made responsible. 
 
 Hence it becomes necessary in case of dissolu- 
 tion, to give notice in the Gazette; but proba- 
 bly even this notice would not be sufficient, if 
 the party subsequently giving such credit had 
 never had such notice — but if, on the contrary, 
 notice were so publicly given, and understood, 
 of one partner disposing of his share or interest 
 in the concern to another, it would surely be 
 too preposterous to assert, that such partner, 
 so transferring his share, should be responsible 
 for debts contracted subsequent to his having 
 formally relinquished, and completely abandon- 
 ed every connection with the concern. — Such 
 a proposition would carry the doctrine of part- 
 nership responsibility to a most monstrous and 
 dangerous extent. 
 
 But it may perhaps be objected, that there 
 is no parity of reasoning whatever between part- . 
 nerships, consisting of a few individuals, as cus- 
 tomarily carried on, and Joint Stock Compa- 
 nies, which are sui generis, and in their nature 
 anomalous. 
 
 It has been elsewhere observed, that tli«
 
 $6 
 
 objects the legislature had in view, were to 
 guard the public from impositions, and at 
 the same time to protect the rights of indi* 
 viduals. 
 
 Let us examine whether these points are not 
 sufficiently attended to, at least in two or three 
 of the Institutions, the articles of which have 
 come more particularly within my own know- 
 ledge. In those it is stiuplated that the be- 
 verage brewed, shall be from Malt and Hops 
 only, and that the brewers, if required, shall 
 once every month take an oath before some 
 magistrate, to verify that fact. 
 
 This regulation, it is presumed, will not be 
 considered as " a mischievous project, injurious 
 to his Majesty's subjects," although the present 
 ale brewers, or perhaps the druggists, may 
 have some cause to complain of it — these gen- 
 tlemen however are probably better advised 
 than to pray in aid of the attorney-general, 
 armed with the two-edged sword of the 18th 
 Geo. I. 
 
 Let us examine how far the subscribers can 
 be injured, or to speak in the language of the 
 enemies of these institutions, how far can 
 they possibly become the dupes of interested 
 projectors.
 
 37 
 
 In the first place, the object of the institu* 
 tion is known — the regulations by which it is 
 organized, have been assented to and approved 
 - — the shares have been limited to a reasonably 
 number — the sums paid upon subscription, 
 and the instalments, are easy — the subscribers 
 have all the power of transferring their shares, 
 under, nevertheless, some few necessary qualifi- 
 cations, whenever they think proper, and which 
 they will probably do at a premium — the sums 
 subscribed are all paid into the hands of a re- 
 spectable banker — the accounts of the concern 
 are audited every quarter, by a distinct body 
 of gentlemen of the highest respectability, 
 and a committee meets every week for the pur- 
 pose of providing for the incidental expences 
 of the preceding week, and settling the accounts 
 of the concern ; and such committee has 
 the power of ordering drafts for monies in 
 the hands of the bankers, either for making 
 the necessary advances, on account of the 
 concern, or drawing to make dividends to 
 the proprietors ; and the trustees issue drafts 
 accordingly to the persons who are to receive the 
 money — such drafts to be made in committees 
 assembled, and attested by the secretary.
 
 The acting committee have also power to dis- 
 miss the brewers — to require from them any 
 reasonable security for the integrity of their con- 
 duct — to quit the concern without interruption 
 when discharged from office, and to pay over 
 and transfer any balance of money, books, and 
 vouchers in their hands. 
 
 There are some other very important regula- 
 tions, which have a double tendency to guard 
 the public, and to guarantee the subscribers 
 against any ruinous responsibility ; viz. as 
 That no debts, except for wages of servants 
 hired for certain periods, shall be contracted 
 by the concern ; but all Malt, Hops, &c. are 
 to be paid for on delivery. Thus by a funda- 
 mental article in this institution,' no debts can 
 be contracted, and consequently no hazard can 
 accrue to the public in their dealings with a 
 company of this description. 
 
 Neither can any of the subscribers be injured 
 — all the shares are either paid up, or in course 
 of payment ; the money is vested in the hands 
 of respectable bankers -, and such judicious 
 checks are established with respect to drawing 
 it out, as to render fraud next to impossible. 
 
 So little enveloped in mystery are the trans-
 
 actions of the directors, that every individual 
 member may have access to their proceedings: 
 in a word, the proceedings of the whole concern, 
 either are, or may be known, to every individual 
 composing it. 
 
 Surely a society so organized, cannot be deem- 
 ed a nuisance, like the sixpenny subscriptions, 
 before cited from Macpherson — where the pro- 
 jectors hired a room fora few hours, opened their 
 books, and absconded with the money ; nor is it 
 an ' extravagant or unwarrantable undertaking,* 
 to restore to the people of England their whole- 
 some beverage, composed of genuine malt and 
 hops, notwithstanding any clamour of the brew- 
 ers, or the druggists ; whose profits may be 
 thereby in no small degree injured. 
 
 With respect to the distilleries also, it would 
 not be deemed, it is presumed, an extrava- 
 gant or unwarrantable undertaking, to substi- 
 tute juniper for turpentine, and produce a more 
 excellent spirit by that measure which can alone 
 effect so desirable an object, viz. by establish- 
 ing that competition which will inevitably pro- 
 duce so advantageous a change. 
 
 Any prosecution therefore against these com- 
 panies, must come with a very bad grace from 
 those overgrown capitalists who have so long as-
 
 40 
 
 sumed art exclusive right to monopolize an arti- 
 cle of general consumption, and deal it out to the 
 public, at any price, and of any quality they may 
 fix amongst themselves. 
 
 Little cause indeed have the brewers or dis- 
 tillers, to originate a prosecution, which by 
 sanctioning competition must destroy monopoly 
 — little cause have the gentlemen to talk as injur- 
 ed individuals, on account of the aggregate capi- 
 tal of a company, whose capital for the benefit of 
 the public does not amount to one fourth part 
 of those capitals, which have enabled them to 
 raise the price and regulate the quality, without 
 having hitherto found any power to control theii 
 dictates : whose avaricious gains are much more 
 their object than any advantage to the Public. 
 The price of gin has several times been raised, 
 whilst malt has rather decreased than other- 
 wise. 
 
 The immense capitals of the distillers indivi- 
 dually," is upbn an average considerably more 
 than that of some of the Joint Stock Compa- 
 nies; and by establishing the price and quality of 
 the article, the whole aggregate of their im- 
 mense capital, is not only to the disadvantage 
 of the public, but to the revenue ; an Cvil that 
 could only be counteracted by that competition.
 
 41 
 
 which would result from the establishment of 
 other distilleries. 
 
 With respect to one part of the act, which 
 perhaps is to be perverted from its sound con- 
 struction, and which will be treated upon here- 
 after, viz. — " unwarrantable and extravagant 
 projects, injurious to great numbers of his Ma- 
 jesty's subjects, in their trade and other affairs" 
 • — in the first place, as it will be more minutely 
 shewn, this act has no reference to any particu- 
 lar trade, except in the clause which gives aii 
 action with treble costs, &c. 
 
 But it is not true, that these associations 
 can do any serious mischief to individuals 
 in the vast state of population of this me- 
 tropolis ; estimating in comparative proportion 
 the small number of Joint Stock Companies, the 
 interest of the individual fair trader can never 
 be injured j some overgrown capitalists, perhaps, 
 may indeed divide less profits than they have 
 heretofore accumulated, but of this they have 
 no reason to complain. Instead of imitating 
 the conduct of the foolish countryman, who 
 prayed to Hercules to assist him, let them 
 diminish or annihilate competition by produc- 
 ing a better article. 
 
 No doubt can be entertained, that Joint
 
 42 
 
 Stock Companies, or associated companies of 
 any description, can only exist whilst they ad- 
 here to their original principles; the moment 
 they deviate from these, they will read their 
 fault in their punishment, and must either 
 return to their origirxai principles, or they wili 
 dwindle into oblivion. 
 
 There is then no danger either to the public 
 or to individuals to be apprehended from these 
 Joint Stock Companies : absurd it is therefore 
 to call in the aid of the legislature to abolish 
 them. 
 
 For however extensive the power^ however 
 large their avowed capital, and capable of con- 
 cealed increase, yet is there little apprehen- 
 sion of injury to individual fair traders, from 
 such a company, even if they were to attempt it. 
 
 In speaking of a company, even though in- 
 corporated by parliament — the London Flour 
 and Bread Company — in an excellent pamphlet, 
 published in defence of persons concerned in the 
 Corn Trade, (supposed to have been written by 
 Sir Thomas Turton) the argument relative to 
 the superior advantages which individual trades 
 would have over companies, are at once so co- 
 gent and so applicable, that the following ex- 
 tract, as bearing directly upon the subject in
 
 question, will, it Is conceived, require no apolo- 
 gy. " The numerous disadvantages (says the 
 Author) which such a company (the London 
 Flour Company) would have to encounter, 
 would amply guarantee the public against any- 
 injurious consequences. 
 
 " In the first place, the articles they deal 
 in will not admit of monopoly: — it is true in- 
 deed, that in a market scantily supplied, the 
 purchases of such a company might have 
 some effect ; but the moment the demand was 
 known, the supply wouJd regulate itself accord- 
 ingly. 
 
 ** The perlshableness of the commodity ; the 
 great loss on the smallest diminution of the 
 price; the heavy expence of warehouse room; 
 the loss of interest on the money sunk ; the im- 
 mense sums which in times of scarcity (the 
 only times when monopoly can be dangerous), 
 are necessary to be taken out of their trade, 
 for the purpose of speculation ; the almost 
 certain combination which they would run the 
 hazard of exciting against them, from the whole 
 trade, who with an eye of the most scrupulous 
 jealously would watch their proceedings, and 
 that fear of public antipathy and resentment, 
 which they would naturally feel, all these would
 
 44, 
 
 combine together as ample sectintics to ther 
 public against any danger of monopoly.*' 
 
 The moment any of these companies deviate- 
 from their principles — if the respectable subscri- 
 bers should once find, as the opponents of these 
 companies have boldly asserted, with a degree of 
 calumny which carries with it its own refutation, 
 that instead of following the fair principles with 
 which they started, instead of the spirit of bene- 
 volence and public good being generally ex- 
 tended through the concern, they have become 
 the dupes of designing projectors j — the mo- 
 ment even such a suspicion should operate upon 
 the minds of some of the most timid, although 
 not perhaps the least respectable, it would either 
 drive them from the Institution at once, or oc- 
 casion them to watch the conduct of their col- 
 leagues, with a degree of distrust and jealousy, 
 which would damp all spirit, and depress that 
 energy and unanimity so essential for carrying 
 on an extensive and important concern. 
 
 It has before been observed, that from the 
 difficulties which companies have to encounter, 
 they can form no just ground for individual 
 jealousy ; it is equally capable of demonstration, 
 that the public cannot possibly sustain any in- 
 jury from such establishments.
 
 45 
 
 Whilst it is well-known that nefaTious com- 
 binations have taken place amongst individuals 
 to adulterate and extort, pregnant with frauds 
 and abuses, which have long eluded the vigi- 
 Lincc of the legislature j a generous rivalship, on 
 the contrary, will spring up between Companies, 
 and the struggle will be, which shall produce 
 the most excellent article at the most reasonable 
 price ; and even in the case of monopoly, much 
 less danger is to be apprehended from Compa- 
 nies formed like the present, than from that 
 which arises from a combination of interested 
 individuals. 
 
 These may indeed combine : actuated alone 
 by avarice, they may entirely lose sight of that 
 laudable rivalship, which should ever actuate 
 the fair dealing tradesman ; that liberal emula- 
 tion and fair competition, which secured in 
 foreign markets the preference to British ma 
 nufactures, and which by increasing consump- 
 tion, occasioned its own reward. Individuals 
 with large capitals, and unconnected establish- 
 ments, possessing the most extensive, not to 
 say oppressive influence, with the almost ex- 
 clusive command of the market, have, we know, 
 combined, and but for some of these now per- 
 secuted Joint Stock Companies, might have
 
 46 
 
 broke the back of the public with all the weight 
 of accumulated monopoly. 
 
 It has been estimated (and if the calculation 
 be true it demands instantaneous legislative in- 
 terposition) that of 50,000 Public Houses, 
 which is the amount estimated by Mr Colqu- 
 houn, considerably more than 07ie half in the 
 metropolis, and 7iine tenths in the country, arc 
 held under Brewer's Leases — in most cities and 
 corporate towns, the very magistrates are known 
 to be Brewers, some of v/hom do not confine 
 themselves to beer alone, but extend their 
 dealings to coals and spirits, and are at once 
 Brewers, Distillers, and Coal Merchants ; when 
 it is considered that the unfortunate tenant is 
 in most cases compelled to take any trash 
 which his landlord may think proper to deal 
 out to hims when the legislature has in so 
 many repeated enactments proscribed the use of 
 grains of paradise, coriander seeds, cocculus 
 Indicus, quassia, liquorice, molasses, tobacco, 
 copperas, alum, alkali, thyme, salt, glue or 
 white leather size, orpiment, opium*, &c. and 
 prohibitively excluded all other articles, but 
 
 • The above are said to have been published by authority 
 as ingredients used in the brewing ot Porter. See Monthly 
 Magazine, for December, I8O7.
 
 47 
 
 malt and hops ; when the wharfs of the Excise 
 have been loaded with casks of deleterious 
 ingredients, seized by the officers of the re- 
 venue, upon the premises of the Brewers ; when 
 notwithstanding the execrable qualit}^ of * this 
 broth decocted from drugs and water, with the 
 addition perhaps of a small proportion of JXfalt 
 and Hops,' an attempt v»'as made to raise its 
 price ; when all these are properly appreciated, 
 it surely becomes a meritorious act in any in- 
 dividuals, separately or collectively, to second 
 the efforts of the legislature, and to rescue the 
 public from that overgrown Aristocracy of Ca- 
 pitalists, by which it has so long been oppressed; 
 and the only mode of remedying this griev- 
 ance, has been effectually demonstrated by the 
 establishment of Subscription Breweries. 
 
 The Golden Lane Brewery was then a neces- 
 sary establishment which was loudly called for, 
 and combining the powerful and generally suc- 
 cessful influence of property and capital, it re- 
 lieved the public, and in some degree reformed 
 those who had abused them. 
 
 Kor has the adulteration been confined to this 
 country only •, — some few months ago, a Brewer 
 in Edinburgh was detected with having in his 
 possession a package of the weight o{' three httfi*
 
 48 
 
 ired pounds^ aiid upwards, consisting of nine 
 different sorts of drugs, and was in consequence 
 fined two hundred pounds, in the Court of Ex- 
 chequer. 
 
 An injunction also, it is believed, is now pend- 
 ing in the above Court, between a Publican and 
 a Brewer, under a covenant for taking beer un- 
 til the Brewer can swear, that such beer was 
 made of Malt and Hops, and contained no 
 Nux Vomica. 
 
 But the instances of abuse and adulteration 
 are too frequent and too notorious to require 
 any argument to prove them. Seizures of adul- 
 terating ingredients have been repeatedly made, 
 but the matter has been hushed up, and the 
 names of the parties have seldom been made 
 public -y those, however, who doubt the fact, 
 might have gone to the wharf at the Ex- 
 cise Office, where from the initials Cut upon 
 the casks, the names of the delinquents might 
 easily have been made out. 
 
 Abuses of this nature, however, can only be 
 practised by individuals — with Companies they 
 are impossible. Secrecy is the very soul of every 
 nefarious combination to adulterate or extort; 
 but with Companies there can be no combina- 
 tion, for they are so organized that all their
 
 4P 
 
 proceedings are open to the inspection of every 
 subscriber — in a word, every transaction is of 
 so public a nature, that' any attempt at fraud, 
 irregularity, or abuse, would not only be absurd, 
 but abortive, and the blast of public indigna- 
 tion, would at once annihilate the company 
 and the abuse. From these circumstances, and 
 many others which might be adduced, it may 
 be fairly inferred that the public derive the great- 
 est benefit from companies, and that from the 
 very essence of their principles, the basis of 
 their pretensions, and the publicity of their 
 conduct, less danger is to be apprehended from 
 them than from individuals. 
 
 It has been conceived expedient to expatiate 
 upon this subject, because it has been advan- 
 ced by some, that Joint Stock Companies are 
 unnecessary, and that things ought to proceed 
 in their usual course. This assertion is perfectly 
 consistent with the disposition of those who 
 have so long assumed the exclusive right to 
 physic, if not to poison the public j the sub- 
 stitution of malt and hops for those pernicious 
 nostrumsso copiously introduced, being certainly 
 to these gentlemen a serious evil •, but it is not 
 very consistent for them to deprecate Compa- 
 nies, which their own abuses have rendered 
 
 £
 
 50 
 
 necessary, and which have now been proved to 
 be the only means of rescuing the public from 
 that avarice and' extortion, which have so long 
 tyrannized over and abused it. 
 
 Subscription Breweries therefore became the 
 only remedy for the adulteration of malt liquors: 
 the Golden Lane Brewery has commenced and 
 continued its career successfully, and its ex- 
 ample has been foUow^ed by the British Ale 
 and other Breweries, which must solely depend 
 for support upon the opinion of the public, 
 who will naturally select and encourage that 
 article, which has the most general claim to 
 excellence. 
 
 Let it not be said that Joint Stock Com- 
 panies are unnecessary. These establishments 
 have already proved themselves adequate to res- 
 cue the public from extortion and monopoly, 
 which will necessarily diminish in proportion, 
 as these establishments multiply and promote 
 competition. 
 
 With respect to the Brewd'ries, this fact is 
 established; but there is another monopoly 
 if possible more gross, and necessary to be 
 checked, more particularly because the strong 
 arm of the law has been attempted to be brought 
 forward to support it, by attacking the only
 
 51 
 
 institution which can stand any chance of de- 
 stroying it. 
 
 The monopoly alluded to is that of the Malt 
 Distilleries of which there are only ten in this 
 country. That ten persons of enormous ca- 
 pital, should so long have manufactured their 
 spirits from any ingredients, and sold them at 
 any price they thought proper, is no le^s singular 
 than that the public spirit of individuals should 
 so long have delayed those rival establishments, 
 by which alone these abuses could be remedied : 
 but the oppression has so long been patiently 
 endured that these gentlemen begin to think 
 that they have absolutely acquired a right, to 
 substitute turpentine for juniper j and to raise the 
 price of their spirits as often as they think proper. 
 Next to a public Brewery, then, a public 
 Distillery, (or perhaps three or four, for the 
 market is sufficiently wide,) becomes absolutely 
 necessary ; these Distilleries require an exten- 
 sive capital ; which honestly exerted, in oppo-* 
 sition to that overgrown aristocracy of capi- 
 talists, which once are said to have had the im- 
 pudence even to attempt to dictate to the State, 
 would at once annihilate the abuse and be high- 
 ly beneficial to the public. 
 
 In short Breweries and Distilleries, so farfr^rtt 
 E 2
 
 52 
 
 being classed as extravagant and unwarrantable 
 attempts or projects, may, on the contrary, be 
 proved to be salutary, reasonable, and necessary 
 coadjutors to the legislature in counteracting 
 fraud, abuse, and extortion. , 
 
 Why then in concerns where extensive capital 
 is requisite, should itjbe deemed illegal for indi- 
 viduals to form that aggregate sum, which is so 
 essential to counteract that monopoly, which 
 extensive individual capitals, and illegal combi- 
 nations originally obtained, and have so long 
 attempted to perpetuate. 
 
 Some other Companies also might be enu- 
 merated, which might be beneficial to the pub- 
 lic ; such as the Fire Insurance Companies, se- 
 veral of which are upon the point of being 
 established in many counties, promoted and 
 established by noblemen and gentlemen of the 
 jfirst distinction. Are these also to be deemed 
 extravagant and unwarrantable projects or at- 
 tempts, and are their rllustrious and public spi- 
 rited patrons to be subject to indictments, or 
 to incur the penalties of a premunire } 
 
 The Wine Company may also be considered 
 as a laudable undertaking, particularly as it con- 
 sists of publicans who are principally dealers in 
 the article, and is advantageous in a double
 
 S3 
 
 sense, viz. First as it affects the consumer who 
 might expect the article genuine and at a 
 more reasonable rate, and secondly, as far as 
 relates to a very numerous class of individuals, 
 the publicans, who have so long been subjected 
 to the mercy of the Brewers and Distillers — by 
 rendering them more independant ; and although 
 it has been asserted, that there is an act which 
 prohibits publicans as retailers, from having any 
 share in Distilleries ; it would nevertheless be 
 -highly advantageous to the publicans and be- 
 neficial to the public, to establish a Distillery, 
 which from the certain consumption such an 
 establishment would necessarily insure, would 
 enable them to produce a more genuine article, 
 at a price not fluctuating according to the ar- 
 bitrary dictates of a few monopolizing indivi- 
 duals. 
 
 There can be no doubt, that when the publi- 
 can can draw his own beer, distil his own spirits, 
 and import his own wine, he will not only give 
 more satisfaction to his customers, but in a 
 great degree be relieved from that state of op- 
 pression and dependance under which he has 
 so long laboured. 
 
 Various acts of parliament have been passed 
 inflicting severe penalties upon the adulteration
 
 of beer, spirits, tea, coffee, tobacco, &c. but 
 there are frauds in another article, and that of 
 the first necessity, which might be remedied 
 by a Joint Stock Company. The Coal Trade, 
 it is well known, is one continued scene of abuse, 
 from the pit to the consumer. 
 
 But although by a specific act of parlia- 
 ment, as has before been observed, a greater 
 number of persons than six are restricted from 
 purchasing coals for sale ; yet this act it is pre- 
 sumed might be repealed, and a company incor- 
 porated for the express purpose of a more regular 
 supply of fuel at a more reasonable rate. 
 
 That there is a monopoly in this market 
 notwithstanding that voluminous act, which, 
 (whatever the framer of it might have in view), has 
 in its operation no other effect than that of ad- 
 vancing the emoluments of the meter, and un- 
 necessarily increasing the price to the consumer, 
 is beyond a doubt ; when it is thoroughly ascer- 
 tained that this market, which by the act ought 
 to be free, is monopolized by a few individuals 
 perhaps not'exceeding/o77j/, through whose hands 
 the fuel consumed by this immense metropolis, 
 and within a circuit of twenty-five miles, must 
 necessarily pass. How then must these mono- 
 polies be counteracted ? How are these abuses
 
 S3 
 
 tobe effectually remedied ? the answer is too ob- 
 vious to require an argument — by establishing 
 competition, and by counter associations. Com- 
 petition has always been the successful opponent 
 of monopoly, and such it has always been 
 considered by the legislature. 
 
 Several meetings have recently been called, 
 against a combination for raising the price of 
 posting, from fifteen to eighteen pence per mile, 
 and resolutions have been entered into for en- 
 couraging only such post masters as would run 
 at the old prices. This has been wisely considered 
 by the noblemen and gentlemen associated for 
 that purpose, as the most efficient mode of ac- 
 complishing their object, and it will probably 
 be as successful as a former one, upon a similar 
 occasion, which kept the price to its level. 
 
 The Golden Lane Brewery has, it is well 
 known, kept down the price, and improved 
 the quality of malt liquor ; a Public Distillery 
 would have the same effect on spirits ; a Coal 
 Company would reduce the price and prevent 
 those frauds which the legislature is inadequate 
 by any other mode to suppress, and which 
 that very legislature most unequivocally de- 
 clared its opinion, would be most effectually
 
 56 
 
 suppressed by establishing a Joint Stock Coin- 
 pany. 
 
 Some years ago, it will be recollected, that in 
 a time of real scarcity, which was most falsely at- 
 tributed to monopoly, (for monopoly was prov- 
 ed not to have existed) ; and when the price of 
 bread was exorbitantly high, the attention of 
 the legislature w^s particularly occupied in con- 
 sidering what was the most effectual remedy 
 against this alledged monopoly, and what mea- 
 sures would tend to insure a more regular sup- 
 ply of the market. 
 
 And what was the only mode which the le- 
 gislature in its wisdom conceived the most ef- 
 fectual for suppressing such monopoly, and in- 
 suring a more regular supply ? The establish- 
 ment of a Joint Stock Company. 
 
 Accordingly, by the 39th and 40th of the 
 King, c. 97, a company consisting of several 
 noblemen, merchants, gentleman, &c. in both 
 Houses of Parliament, was incorporated, un- 
 der the denomination of the London Flour and 
 Bread Company^ with a capital of 150,0001. 
 divided into shares similar to the Joint Stock 
 Companies, with a chartered monopoly of 
 1 '20,000 sacks of flour per annum, being om<^
 
 57 
 
 tenth part of the whole produce of the metro- 
 polis. 
 
 The Preamble to this act begins as follows. 
 
 *' Whereas the establishment of a manufac- 
 tory for Flour and Bread in London or its neigh- 
 bourhood, would be of considerable benefit and 
 utility, and would greatly tend to insure to the 
 Metropolis and its neighbourhood, a more re- 
 gular supply of Flour, Meal, and Bread, at 
 more reasonable prices — " 
 
 Here then is the opinion of the legislature, 
 most unequivocally and precisely expressed, 
 that Joint Stock Companies are of considera- 
 ble benefit and utility; and there can be no 
 doubt, but had the monopoly really existed, that 
 this Company would as effectually have checked 
 it, as the establishment of the Golden Lane 
 Brewery checked the intended advance upon 
 Porter, and at the same time increased its 
 .quality by insuring to the public a more regular 
 supply of Malt and Hops*. 
 
 * !t has been ?tatf>d hy Mr. Colquhoun, in his Treatise 
 f)H Indigence, " that in the year 1806 the total quantity of 
 Porter, Ale, and Beer, brewed for sale in the Metropolis, 
 according to the returns from the ILxcise Olhce, amounted 
 to 1,454,1.92 barrels, exclusive of 441,320 barrels of Small 
 Bfccr : from which deducting about 254,192 barrels for ex-
 
 58 
 
 The monopoly however against which the 
 act before mentioned was directed, did not ex- 
 ist, nay it was proved that it could not exist ; 
 but this act will cut both ways upon this occa- 
 sion; whilst in the first instance it demon- 
 strates the opinion of the legislature in favour 
 of Joint Stock Companies, for insuring a more 
 regular supply at more reasonable prices, it 
 
 portation and Country Sale, there remains 1 ,200,000 bar- 
 rels, or 168,000,000 pots of Portar and Ale, for the con- 
 sumption of the Metropolis, which at the present price of 
 five pence per pot amounts to 3,500,000 per annum." 
 
 The same gentleman estimates the Malt Liquor consum- 
 ed in Public Houses in England and Wales, to amount to 
 a.bout twelve millions — consequently there never was any 
 complaint of the scarcity of those doctored compositions, 
 sold under the name of Porter, Ale, and Amber — but so 
 generally were the public disgusted at this beverage, which 
 Was unanimously found so unwholesome and unpalatable, 
 particularly in the Metropolis, that the Brewers were com- 
 pelled to pray in aid of the Magistrates, to force its con- 
 sumption : a resolution was accordingly entered into by 
 the Magistrates of Middlesex, not to licence any Houses, 
 but those which could prove a proportionate consumption of 
 the Brewers Intire to that of Spirit. 
 
 This resolution, which was upon the face of it however ille- 
 gal, would have been completely ineffectual, had not the 
 establishment of the Golden Lane Brewery compelled the 
 PorteV Brewers to render their Beverage a little more pa- 
 latable.
 
 S9 
 
 at the same time proves that individual fair 
 traders can sustain no injury from these esta- 
 blishments. 
 
 For here was a Company consisting of per- 
 sons of the first rank and opulence j incorpo- 
 rated by act of parliament, with a chartered 
 monopoly of o?ie tenth part of the consump- 
 tion of the Metropolis, trading in an article of 
 the first necessity : yet the Factors, Millers, 
 !MeaImen, &c. against whom it was expressly- 
 directed, sustained as little injury, as this Com- 
 pany obtained advantage. 
 
 In fact Companies derive no such vast advan- 
 tages, as to excite the alarm of any individual 
 traders, excepting such whose Bond of Union 
 js Monopoly, and who consequently dread com- 
 petition. Vi^t never heard that the London 
 Flour Company ; the Albion Mills Company j 
 the Birmingham Bread Company, &c. derived 
 any great emoluments by their association, 
 nor probably would the Milk Company ; the 
 Pipe Company; the Taylors Company; the 
 Pawnbrokers Company, &c. do much injury 
 to those particular trades which they are in- 
 tended to oppose. 
 
 From past experience therefore of projects 
 which have gradually mouldered away, per-
 
 60 
 
 haps it might be more prudent in the legis- 
 lature to let these follow their predecessors, 
 by those seeds of dissolution, which will be 
 daily growing into strength, than to make any 
 restrictive enactments, which by attacking the 
 principle, might blend in indiscriminate cen- 
 sure, companies of sterling utility and public 
 estimation. 
 
 It is scarcely considered necessary to answer, 
 or even to notice the calumnies and scurrili- 
 ties which have been thrown out against these 
 infant Institutions, which have been stigma- 
 tized merely as projects to impose upon credu- 
 lity, similar to the bubbles of the year 1720, 
 and the parties propagating them have been 
 accused of making the public good, which they 
 so speciously profess, a mere pretext, to secure 
 a good job to the directors, &c. 
 
 The object of this publication is rather to de- 
 fend Public Companies upon the strict princi- 
 ples of law and expediency, than to reply to 
 calumnies which carry their own refutation i 
 or to answer observations which do not at least 
 wear the aspect of an argument. In all the 
 publications which the writer of this has perused 
 upon the subject, he has found only misera- 
 ble attempts at wit, or anticipated censures
 
 51 
 
 pointed by malevolence. It is true that these 
 associations in all cases profess the accommoda- 
 tion of the public, and certainly this represen- 
 tation is the most appropriate to acquire that 
 support, but for the attainment of which they 
 would never have associated, and without which 
 they must necessarily cease to be : in this, 
 there can be no quackery : to instance more 
 particularly in the Beer, or Ale Breweries, it 
 is not in the power of 3, or 4000 persons as- 
 sociated for the purpose of furnishing the pub- 
 lic with genuine Malt Liquor, in three or four 
 distinct associations, to compel that public to 
 drink an inferior or adulterated article; three or 
 four of these Breweries, as has been elsewhere ob- 
 served, will enter intocompetition with each other 
 — enterprising individuals will enter into com- 
 petition with tJiemy and the party who brews the 
 best article, whether an individual or a company, 
 will command a consumption in spite of every 
 effort of monopoly ; in such case the shares of the 
 defective company will fall in value, and pro- 
 bably continue falling, until by some alteration 
 or amendment of the commodity, (although 
 the public opinion once forfeited is seldom re- 
 gained) they can equal or surpass that article 
 by which they have been excelled. 
 
 If then the public do not find their advan-
 
 62 
 
 tage in supporting these Companies, they wilJ 
 not deal with them — the advantage of the pub- 
 lic therefore, is very properly professed, and thi^ 
 pledge must be made good, or the company 
 instead of having to count their gains, will 
 soon have to proportion their losses. 
 
 With respect to the emolument appropriated 
 to the directors, and those persons appointed 
 to act for the Company in superintending and 
 organizing the concern ; it is conceived, that 
 the expenditure is at least as economical as that 
 of any other Individual, or Company, with a 
 similar capital, and a similar object ; but sure- 
 ly it is not necessary to insist, that persons 
 deemed competent to execute the anxious func- 
 tions of superintendance : upon whose vigilance 
 and exertions the interest of the society at large, 
 in a great measure depend : must necessari- 
 ly consume a considerable portion of that time 
 which might otherwise be occupied in more ad- 
 vantageous pursuits of individual interest. 
 
 Persons who dedicate their services to the 
 interest of a general body, ought to receive from 
 that body a renumeration in some degree com- 
 mensurate with those services : few people of 
 competent understanding and responsibility 
 would stand forward to execute functions, which
 
 63 
 
 however beneficial to others, might materially 
 injure themselves j besides, associations so re- 
 spectable and numerous, at once combine con- 
 sequence with economjs by allowing liberal re- 
 muneration for honorable service. 
 
 But it is not perhaps the slightest inference 
 in favor of these Institutions, that the oppo- 
 nents conscious of their being invulnerable by 
 argument, have been reduced to those scurri- 
 lities with which they have so copiously as- 
 sailed them. The best refutation of these is to 
 appeal to the conduct of these institutions; and 
 here, (for some at least,) the writer of this can 
 triumphantly appeal, that the wise and salutary 
 principles, by which they were originally creat- 
 ed and individually cemented together ; the 
 laws which regulate their agency ; the utility 
 of their object, and their approved honor in 
 their engagements, with the public ; have hi- 
 therto stamped them of sterling value, and ren- 
 dered them alike invulnerable to the impotent 
 anger of monopoly, the malevolence of avarice, 
 or the sneers of scurrility. 
 
 Passing over other arguments which might be 
 urged upon the expediency of these companies, 
 which have hitherto been but slightly touched 
 upon ; let hs return to anticipate some of those
 
 64 
 
 defensive arguments, which may be success-^ 
 fully introduced by the counsel employed to 
 shew cause against the motion of the attor- 
 ney-general J if, (which is extremely doubtful,) 
 he should ever move to make his rule abso- 
 lute. 
 
 The cause of such long delay, or why this 
 rule, like the sword of Damocles, should be still 
 kept hanging over these companies, perhaps it 
 may not be very diiljcult to conjecture ; con- 
 sultations upon consult-Ill lis have been held by 
 the counsel for the civvn upon this subject, 
 which have already been considerably expensive, 
 although' certainly very inadequate to the in- 
 terest which the parties concerned have in the 
 decisions and certainly trifling to those opulent 
 capitalists, who affect to keep themselves in 
 the back ground upon this occasion. 
 
 If the distillers have really had any meetings 
 or made a joint purse for this prosecution, they 
 would have appeared to greater advantage be- 
 fore the public, had they boldly avowed their 
 object ; instead of keeping behind the curtain 
 and making a mere stalking horse of any inform- 
 er, who surely would never at his own indivi- 
 dual risk have incurred such vast expence, off 
 hazarded so desperate an experiment.
 
 65 
 
 But why has this notion been so long defer- 
 red ? Perhaps the attorney-general, who is uni- 
 versally acknowledged as a lawyer of the most 
 acute and penetrating mind, is clearly convinq- 
 cd of the extreme difficulty, not to say the im- 
 possibility, of so distorting the present compa- 
 nies, by the extremest effort of human ingenui- 
 ty, as to bring them within the meaning of the 
 act of George I. 
 
 For example, the Breweries and intended Dis- 
 tilleries. The act of Geo. I. as has before been 
 mentioned, is directed against extravagant and 
 umv arrant able projects or under takings y such 
 as we have before observed were at that time 
 notorious. Is it an extravagant and unwarrant- 
 able undertaking, to substitute malt and hops 
 for quassia, cocculus Inuicus, &c. or turpentine 
 for juniper? Is it an unwarrantable and ex« 
 tragant undertaking to nip extortion in its 
 bud, by destroying an illegal combination ta 
 raise the price of porter ? Yet the alhrmative 
 of these propositions must be clearly demon* 
 strated to bring these companies within the act. 
 These companies then are neither ' unwarrant- 
 able nor extravagant attempts or projects,' and 
 consequently fall in the leading feature of those 
 projects and undertakings, which <he legisla-
 
 66 
 
 ture had then in view, and which have been 
 mentioned in the preceding extracts. 
 
 These companies then are self acquitted, even 
 from the very preamble to the enacting clauses. 
 
 Let us attempt to mark some other features 
 of those bubbles, in which every thing that 
 legal ingenuity might torture into the remotest 
 - resemblance j will vanish nevertheless, in pro- 
 portion as we progressively advance and become 
 more conversant with the spirit of the act. 
 
 The attempts or projects within the pur- 
 view of the legislature must not only be eiira- 
 vagant and unwarrantable^ but they must fur- 
 ther be injurious to his Majesty's subjects j or 
 great numbers of themy in their trade and other 
 affairs. 
 
 To support the former term of this disjunctive 
 proposition it be would insulting the under- 
 standing of the most unintelligent reader to in- 
 sist, that genuine malt liquor, and genuine spi- 
 rits, can be injurious to his Majesty's subjects. 
 Let us penetrate the meaning of the latter term, 
 viz. " undertakings injurious to great numbers 
 of his Majesty's subjects in their trade and 
 other affairs'' 
 
 Itis here perhaps, although, (as will be prov- 
 ed,) without the least ground whatever, that the
 
 67 
 
 Wand is intended to be made, and the battery 
 is to be opened against these companies. 
 
 If it be contended that these companies must 
 rtecessarily divide a large share of those profits, 
 the whole of which from the most unfair, but 
 extensive influence, some particular persons con- 
 ceived they had a prescriptive right to monopo- 
 lize J If fair and honorable competition can be 
 deemed an injury ; these companies plead guilty 
 to the allegation ; — they have indeed injured the 
 brewers, by the difference between ^fivepence 
 and sixpence^ per pot ; which they have kept 
 in the pockets of the public; they hdve also 
 injured the brewers, by introducing them more 
 frequently to theMalstermid the Hop Merchant; 
 in this also they have further injured not indeed 
 great numbers, but nevertheless, not a few — 
 the Druggists. The Distilleries also may proba- 
 bly injure in the same degree, not great numbers^ 
 but at the same time ten very great characters, 
 who have ever been considered as in themselves a 
 host ; — but surely it will not be contended, that 
 these gentlemen arc to have slich an exclusive 
 monopoly, that like the ancient Dutch magistra- 
 cy, their trade should always be confined to a. fa- 
 mily, descending in hereditary orcolldteral sue. 
 cession. Every man by the law of England has a 
 right tocxcrcise his calling, with the exception of 
 
 F '2
 
 68 
 
 corporate towns, and to appropriate his pro- 
 perty in any manner he may think proper ; and 
 with as much propriety might the linen dra- 
 pers, bakers, butchers, &c. in any market town, 
 complain of any enterprizing individual of a 
 similar trade, who might diminish their pro- 
 fits by selling a better article at a smaller price ; 
 as the brewers, or distillers, complain of any 
 persons who by fair competition might reduce 
 their profits. 
 
 Whether this be the part of the act that is to 
 be insisted upon, or not, is immaterial, for it 
 is certain, beyond the possibility of refutation, 
 that the legislature by the expression gi^eat num- 
 bers (using the plural number) of his Majesty's 
 subjects in their tj^ade and other affairs, had 
 not the remotest allusion whatever to any indi- 
 vidual trade, else wherefore by the twenty-first 
 section of the act, did it make that special pro- 
 vision for protecting persons of this description, 
 by giving treble costs to any merchant or trades- 
 man, &c. who might be injured by any of 
 these unwarrantable undertakings ? A clause 
 upon which the Brewers might have tried the 
 experiment upon the Golden Lane Brewery, as 
 they could have proved specific damages, not 
 only for the injury sustained by the quan-
 
 69 
 
 tity of beer brewed by this concern, but for 
 the greater quantity of malt and hops which they 
 were thereby compelled to consume ; they how» 
 ever acted more wisely ; they were confident that 
 the Golden Lane Brewery was not an unwarrant- 
 able undertaking; they at first indeed affected to 
 call it extravagant, and attempted to discoun- 
 tenance by ridicule, what they knew they could 
 no more oppose by reason than they could de- 
 stroy by law. 
 
 Such then in the strict principles of Law — 
 such in clear logical deduction, is the true con- 
 struction of the statute"; and precisely to this 
 effect will doubtless be the opinion of those 
 sages of the bench, by whom this question (if 
 indeed it be intended to be brought forward) 
 is to be determined. 
 
 So strongly indeed is this marked, that in 
 every feature of that hideous abuse, which the 
 law has so accurately described, it has at the 
 same time pointed its penalties, and in the very 
 nature of the punishment it has inflicted, it 
 has most unequivocally described the nature of 
 the object. 
 
 Those who suppose that the object of the 
 law was to damp every species of commercial 
 enterprize or mechanical invention, not only in-
 
 70 
 
 suit their own understanding, but most gross- 
 ly libel the legislature ; and those who con- 
 tend that merely making shares transferrable 
 is the criterion of the legality or illegality of 
 any commercial association or mechanical pro- 
 ject, would thereby destroy all the efforts of 
 genius struggling with poverty, or public spi- 
 rited associations, contending with adulteration 
 or monopoly. 
 
 Supposing an instance, and that of no uncom- 
 jnon occurrence, where an ingenious mechanic 
 had invented some advantageous contrivance for 
 facilitating any manufacturing process, or sav- 
 ing expence by simplifying and diminishing la- 
 bour ; but who being from poverty unable to 
 obtain a patent, or to establish his improvement, 
 so as to render it as productive to himself and fa- 
 mily as its intrinsic excellence, and its utility to 
 the public, warranted him to expect. — Thus cir- 
 cumstanced, ingenious, but friendless, he is ne- 
 cessarily induced to pray in aid of persons of pro- 
 perty to assist him h supposing this poor, but in- 
 genious inventor, were to put an advertisement 
 in the newspapers, stating his invention, and the 
 sum required to work it, either under the sanc- 
 tion of a patent, or without, and were to divide 
 such sum so to be advanced into 20 or 30 shares^
 
 71 
 
 which by a trust deed should be made transfer- 
 rable ? Is it for a moment to be contended, 
 that such an undertaking, which might be de- 
 monstrated to be highly consistent and gener- 
 ally beneficial, is suddenly to be metamorphos- 
 ed into an extravagant and unwarrantable un- 
 dertaking i to be deemed a nuisance ^ and sub- 
 ject to all the marking punishments which so 
 peculiarly distinguish the 6'th of George I. ? 
 
 Is the ingenious mechanic above alluded to 
 be stigmatised as a crafty projector, or a cheat, 
 contriving by false pretences and pompous ad- 
 vertisments, to defraud people of their money ? 
 Are those public spirited persons who come for- 
 ward to assist genius strugghng with poverty, 
 to be subjected to heavy punishment, or per- 
 sons having shares in such an association to be 
 subject to the penalties of a premunire, for no 
 other reason whatever than that they have the 
 privilege of transferring their shares ? 
 
 Such a proposition is surely most monstrous 
 and absurd ; and yet the enemies to Joint Stock 
 Companies, are bound to go the length of sup- 
 porting it. 
 
 Various other arguments might be advanc- 
 ed in favour of these Companies, which the 
 professional avocations of the writer, will 
 ot permit him to enlarge upon ; he might
 
 7^ . 
 
 otherwise particularly observe, that by enabling 
 individuals to render small capitals productive, 
 these establishments promote the increase of 
 national wealth, and that, without depressing 
 the laudable exerdons of individual industry, 
 which, estimating the comparatively small num- 
 ber of persons embarked in these Companies 
 to the vast population of these realms, and 
 those increased difficulties which these bodies 
 have to encounter, cannot as far as relates to 
 fair transactions, possibly be injured. An ex- 
 tensive field for discussion is also before him, 
 upon the principles of political economy ; — 
 blocked out as we are from every port in 
 the continent^ whilst commerce, which has so 
 Jong supported this fr.ee country, is gasping for 
 breath, how essential must it be to promote 
 internally an enterprising spirit in trade and 
 manufactures, which may now be truly deem- 
 ed, the " life blood of the state." 
 
 . This spirit of industrious enterprize should 
 at this crisis peculiarly be encouraged ; it is 
 now the main-spring which keeps in motion 
 the wheels of the revenue, and every thing 
 -tending to damp this spirit, injures the revenue 
 and thereby endangers the state. 
 
 Is then such a mass of property incessantly
 
 7:^ 
 
 and accumulatively productive, extending 
 through ten thousand remote ramifications, 
 refreshing and invigorating the whole system, 
 when deprived of all other resources, to be at 
 once annihilated, or sacrificed to the mono- 
 poly of individuals oppressing the public in 
 such dangerous combination as absolutely to 
 force the birth of that very scourge of which 
 they now so bitterly complain ? 
 
 These subjects the writer leaves to persons 
 more competent : not accustomed to arrange 
 his ideas for the inspection of the public^ 
 he has snatched a few moments from profes- 
 sional pursuits, and has hastily, and he fears, 
 in some degree, crudely, offered his arguments 
 in a legal point of view; from these circum- 
 stances, with the motives in which this publica- 
 tion originated, he relies upon the candour of 
 liberal criticism to exonerate him from existing 
 errors, or supposed prolixity. 
 
 To those gentlemen who compose some of 
 the most useful and necessary Joint Stock 
 Companies, more particularly to those be- 
 longing to that institution to which the best 
 services of the author will be at all times 
 devoted, and who are necessarily anxious with 
 respect to the question now pending, he has.
 
 74 
 
 deemed it more satisfactory to speak intelligi- 
 bly, and to incur the charge of repetition, ra- 
 ther than hazard that of being obscure 5 for 
 their benefit he has examined this question 
 linder all its bearings, and has demonstrated^ 
 at least to his own satisfaction, how little they 
 have to apprehend from the 6th of George I. 
 even although its penalties are directed against 
 them by the first criminal officer of the state. 
 
 He has attempted to demonstrate that 
 the present Joint Stock Companies have no 
 resemblance, no affinity whatever with those 
 projects, or rather bubbles^ which the 6th 
 of George I. denounces as extravagant and 
 nnwarrantablc ; that the mere fact of act- 
 ing as a Joint Stock Cotnpany, and making 
 shares transferrable, is not within the penal- 
 ties of that act, unless such associations and 
 such transfers be for promoting such extra- 
 vagant and unwarrantable under iak hi gs^ as 
 the act brands with the most pointed epi- 
 thets, as mischievous and ruijious, and stigma- 
 tises as nulsanc.s. 
 
 He has attempted to prove that these asso- 
 ciations ate not dnly justifiable, but have been 
 rendered absolutely necessary to counteract 
 that adulteration, fraud, and monopoly, which
 
 ts 
 
 the legislature so repeatedly denounces, but Which 
 have hitherto eluded the law, and which have 
 only been checked by these counter associations, 
 which in strict retributive justice have proved 
 themselves the bane and antidote to those very 
 frauds which originally produced them. 
 
 "With respect to the principles which con- 
 stitute Joint Stock Companies, the rules which 
 regulate their conduct, and their object, it is 
 now shewn, that (some of these at least), instead 
 of being extravagant and unwarrantable under- 
 takings, have received the most unequivocal 
 sanction, as being consistent and highly bene- 
 ficial ; and the best answer to their calumniators 
 i> to refer to their conduct, which will amply 
 demonstrate, that as far as relates to the public 
 collectively, and to the subscribers relative- 
 ly, every thing is organized and conducted 
 upon the strictest principles of honor and re- 
 sponsibility, affording to all parties every secu- 
 rity which human wisdom can devise, or legaj 
 ingenuity execute. 
 
 The attorney general therefore, instead of 
 moving to make his rule absolute in the ensu- 
 ing term, will in all probability adjourn the 
 consideration of tlie subject, sir^c die.
 
 16: 
 
 That distinguished lawyer knows perfectly 
 w6ll, that unless he can prove the substitution 
 of malt and hops for drugs, and juniper for 
 turpentine, to be an * unwarrantable and extra.- 
 vagant undertaking,' and injurious to the public; 
 in fact, a public nuisance — little success can be 
 expected from his application to the court of 
 King's Bench. If however, as a legislator, he 
 would introduce such improving regulations as 
 would, whilst separating rhose which are excep- 
 tionable, protect and encourage institutions 
 of sterling utility, he would justly merit the 
 thanks of individuals associating for laudable 
 objects, and the gratitude of the country at 
 large for the benefits derived from such esta- 
 blishments. 
 
 THE ENr>. 
 
 ff' Poplty Printer, 
 3-J, Old BottveU Court, Strand-

 
 ^i^t v>^^^