$54 
To the Editor of the Monthly Magazine. 
SIR, 
AVING read in your Magazine 
(No. 162,) some strictures “ on the 
bad Effects of Public Companies;” and 
as these associations, (to the principles 
and formation of which [ have devoted a 
considerable portion of time and atten- 
tion) are daily increasing in number 
and consequence, I trust that few re- 
marks from me, by way of reply a the 
arguments of your Correspondent, wili 
not be deemed uninteresting. 
I as perfectly admit some of the pre- 
mises of ‘“ Observatur,” as I fee] myself 
compelled to deny hisconclusions. I ad- 
mit that ‘ the utility of public companies 
in trade depends upon the object of their 
association,” and “ Observator” allows, 
that, if this be some measure of pub- 
lic improvement, or the carrying on a 
business too extensive and requiring too 
great a capital for an individual, or ¢o re- 
cover an important branch of trade out of 
the grasp of private monopoly, in such 
cases public companies are found beneti- 
cial to commercial society. 
“ Observator” further admits, that the 
country has been in many instances much 
and extensively benefited by the nume- 
rous public companies formed within the 
last twenty years; but suggests, that, 
whilst they are liable to be perverted into 
machines of injurious aggrandizement, 
they should be regarded with a due de- 
gree of careful and jealous apprehen- 
sl0n. . 
In the instance to which “ Observator” 
principally alludes, namely, the copper 
company (in which shares originally con- 
fined to consumers were passed into the 
hands of persons not consumers), he di- 
rects his objections chiefly against incor- 
porated, or chartered companies, to which 
alone such objections can apply; for, 
where any company can monopolize or 
exclusively command any article of ne- 
cessary consumption, and, by legislating 
for itself, keep the sole controu! of the 
market, no bounds can be prescribed to 
restrain its encroachments, As, howe- 
ver, ‘* Chservator,” in the conclusion of 
hus remarks, throws a general obloquy on 
associations for brewing (and as I have the 
honour to be connected with onc whese 
principles stand deservedly high in the 
public estimation, and which bids fair to 
be a most useful and sticcessful establish- 
ment), I shall subjoin a few observations 
_0n their nature and object, and attempt 
to demonstrate their beneficial effects, 
4A ay 
Remarks on Public Companies. 
[Jan. I; 
not only to individuals, but to the public; 
and, at the same time, I hope to prove, 
that they have essentially inherent in their 
constitution a remedy against those bane- 
ful consequences anticipated by “ Obser- 
vator,” and, therefore, ought, generally, to 
be encouraged. 
It is, perhaps a maxim not confined ex- 
clasively to political economy; but, if £ 
may be ‘allowed the term, a maxim of 
“¢ commercial philosophy,” that every evil 
carries along with itits own antidote. fe 
would,then,be wiser in the legislature to let 
every thing find its level, rather than, by 
injudicious and impolitic imterference, 
excited too often, no doubt, by interested 
individuals, seek to destroy associations, 
which must continue a source of advan- 
tage to the public, as long as they are 
conducted upon just and honourable prin- 
ciples. 
‘The same causes will uniformly pre- 
duce the same effects. Grasping mono-= 
poly, exorbitant prices, and, above all de- 
leterious ingredients, have necessarily led 
to the many associations which are daily 
springing up around us; and it follows, 
upon the simplest reasoning, that, as long 
as these associations adhere to the prm- 
ciple upon which they are established, 
they must, of necessity, be beneficial to 
society, without affecting the more hum- 
ble and confined exertions of indivi- 
duals, by destroying competition in the 
market. 
I deny, Sir, that it is possible for any 
of the associations now formed, to injure 
individuals, or to destroy competition in. 
the market; the quality and cheapness 
of any article will always secure its con- 
sumption, and that consumption will be, 
the truest criterion ofits excellence. 
IT entertain no doubt, that, in the 
brewing associations, if the quality of the 
article should be found inferior, and the 
price disproportionage, their object would 
be defeated by th® more judicious and 
honest exertions of a simple individzal 
bent upon supplying: the public with. an 
article superior in quality, and at the 
same time more reasonable in price. 
It isan erroneous position, that, where 
an article is open to the purchase of 
every description of people, an extensive 
company of publicans can force a trade; 
they may, indeed, agree to draw no other 
liguor but thatof which they are the pzo- 
prietors, but they haveunot, I believe, any. 
clause in any of the deeds of their estab- 
lishments, which can compel their cus- 
tomers to drink it; and if, as I before ob- 
) served 
