The House of Commons on Wednesday passed the third reading
of the Directors' Liability Bill by 224 to 50. This Bill is the heaviest blow yet struck at the modern brigand, the fraudulent promoter. Its principle is that if there is any misrepresentation in a prospectus, the directors who issue it shall be pecuniarily responsible to those who have suffered loss. They are, in fact, compelled to use caution in their inquiries, before they lend their names on which the public subscribes. It is urged that men of capital will not under- take such a responsibility, and that henceforward only men of straw will accept directorships ; but that is not found to be the case in France. It is believed that the Law Lords in the Upper House will make important alterations in the Bill ; but we trust they will leave its main principle alone, only adding such provisions as will check demands for purposes of extortion. City men who invest can take care of themselves very well ; but the Bill is intended to protect the humble folk who subscribe their hundreds on the faith of prospectuses which are substantially frauds for the benefit of some " vendor " behind the scenes, who is as often as not a mere agent of some director. The Bill punishes nobody criminally, and if Members of Parlia- ment or others will sell their names, and therefore their influence, to commercial concerns of which they know nothing, they ought to pay any loss such a reckless practice may cause. The only danger is bogus suits by small shareholders intent on "compromise "—that is, a bribe for giving the suit up—and the Peers ought to be able to make that too dangerous.
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