THE Temuka Leader. TUESDAY, APRIL 10, 1894. PUBLIC COMPANIES.

Temuka Leader, Issue 2644, 10 April 1894, Page 2

THE Temuka Leader. TUESDAY, APRIL 10, 1894. PUBLIC COMPANIES.

Barefaced wholesale dishonesty and falsehood seems to be the leading characteristic of the age, and public financial companies appear to partake more of the nature of conspiracies to defraud than of honest enterprises. The past year has been eventful in this respect. Wherever one turned in Australia, England, Europe, America, or Canada it was all the same. Public companies were conspicuous for dishonesty. The case of Walsh v. the Queen, which has just been decided by the Privy Council, affords an instance. Walsh, the manager of the Union Mortgage and Agency Company, Limited, in making out his returns for taxation purposes made a solemn declaration, which is the same as taking an oath, that his company was only liable for a tax on £22,000, but subsequent inquiry discovered that it had £1,000,000 invested in the colony. A lawsuit resulted and a penalty of £SOO was inflicted, but the company must uphold its dignity : it must endeavor to show that it honestly believed itself right, and so to throw dust in the people’s eyes the case is taken to the Court of Appeal. There the company is still found guilty, but it still finds it necessary to make people believe in its innocence, and so it goes to the Privy Council, where it is further condemned. Now, is it not a terrible scandal that a wealthy corporation should be guilty of such meannees as to make a false declaration in order to avoid payment of its fair share of taxation 1 But when we remember how public com panics are sometimes got up and the rascals who very often comprise the Board of Directors, nothing in connection with them ought to surprise us. There are in London many men in the highest grade of society who make a good income out of assisting to float companies. These are called guinea-pigs, and their functions are to deceive the public. A guinea-pig must be a titled personage, or a public man of some kind who is well known, and whose name is likely to inspire confidence. When a company is to be formed these guinea-pigs, for a consideration, allow their names to appear on the prospectus, so as to give the enterprise a standing, and, of course, when the public sea lords and earls, members of Parliament, and so on, attached to it, they naturally conclude that it is genuine. They little know that these titled rascals are guinea-pigs, who are paid to deceive them. Now that is the way many companies are started, and that is how many are swindled out of their money, and yet the law seems still inadequate to punish them. One fact appears pertain, and it is that Governments must take decided action ' J . , ( ;-*rd to these companies. The ... re °',- „ serious now j too much evil is g g caused by them, misery and ruin nas oeen . . and an absolute necessity for p, teccmg the public from such a far-reaching danger has been suflicieutly made apparent by what has happened during the last couple of years. They must be brought under Government inspection and audite, and the strictest watch kept on all their actions They have shown themselves dishonest, and they must be treated as such, although no doubt it is difficult to do it. Much is said about sending men with a stake in the country to Parliament, but wo regret to say that, judging by what lias lately transpired, they are the dangerous ropresentalivos we oould select, as in most instances they are connected with these institutions. Of course wo are not referring to this colony, but to the whole world. We are, iu fact, singularly free, so far as is known, from anything resembling what we have referred to above in this colony, but at the same time we think wo ought to take time by the forelock, and place public companies under proper control.