358 APPENDIX. [No. XXXII. 



SIR, The observations made in tlie City article of the ' Times,' on the 

 hardship attending the delay in the distribution of the assets of share- 

 holders of banks with unlimited liability, apply with tenfold force to the 

 estates of shareholders of unlimited companies in liquidation. 



Insolvent companies are nominally wound up by the Court of Chan- 

 cery, but practically by accountants and lawyers, whose special object it is 

 to incur costs and procrastinate the liquidation. Some companies have 

 already been years in liquidation, and will remain so for years to come, 

 during which time no estate of a deceased shareholder can be divided. 



It is worthy of consideration whether the benefits of unlimited lia- 

 bility to creditors are not more than counterbalanced by the hardships 

 inflicted on the shareholders. By the Joint Stock Companies Act, any 

 pre-existing company was permitted either to register as a limited or 

 unlimited company ; but the Registrar holds, rightly or wrongly, that a 

 company, then having made its choice, is ever after prohibited from 

 changing its character. 



At the time when the Joint Stock Act was passed, the doctrine of 

 limited liability was novel, and shareholders of successful companies were 

 afraid to adopt it; but could the companies again be permitted to have 

 the choice, there are probably but few in this country which would not 

 assume a limited character, which, after all, is the only rational plan for 

 the conduct of a public company. 



(Signed) LIMITED LIABILITY. 



January 21, 1873. 



SIR, Experience fully confirms the observations in the City article of 

 the ' Times,' that there are high-minded accountants who do their duty by 

 the liquidation of companies ; nevertheless, there is a certain class of 

 lawyers who promote excessive litigation for the costs which they continue 

 to obtain. 



If any member of Parliament will move for the time occupied and the 

 costs incurred in the liquidation of unlimited companies, to say nothing of 

 the further cost which the contributories themselves are compelled to pay, 

 there will be such an amount of hardship and wrong-doing revealed that, 

 doubtless, some well-considered legislative enactment would be passed. 



In limited companies there is less temptation to incur these improper 

 costs, as there is only a certain amount of money to be spent, and the 

 creditors, as far as they can, take care that this undue waste does not 

 occur. 



January 29, 1873. (Signed) SHAREHOLDER. 



No. XXXII. 



ON THE UNSEAWORTHINESS OF SHIPS SENT TO SEA. 



SIR, The shareholders of marine companies express great satisfaction 

 at the 'Insurance Times' having noticed the scandalous frauds which 

 within the last few years have been perpetrated on the shareholders of 

 marine companies. I have the pleasure to inform your readers that a 



