Part 4

But our law, unfortunately, instead of doing thus, has set heavy impediments in the way of co-operation; we might speak more strongly, and say, that it has prepared pitfalls, in which any person guilty of having joined in a co-operative scheme, may at once find himself overwhelmed, as a punishment for his offence. Invest part of your savings in a company in which you have reliance; assist a young man, of whose capacity and honesty you think well, by investing money in his business; and some day you may find yourself ruined for having done so.

Those readers who have turned any attention to this subject, will at once see that we refer to the law of unlimited responsibility in partnerships. Except when the company proceeds under an act of parliament, a charter, or patent, limiting the responsibility, every partner is responsible for the debts and obligations of the concern, to the last farthing he possesses. Very often, a young man of enterprise and ability, acting as manager, overseer, or in some other respectable capacity, receives a small share in the profits to encourage him to exertion: he has no control over the management: some leading man plunges, to serve himself, into dangerous speculations, and there is a bankruptcy. The young man has done nothing but good service all along to the partnership, and to its creditors, and all who have had dealings with it; yet, if he have saved a trifle, it is swept away with the effects of the real speculators. Take another case equally common: A young man commences business alone, or in company with others: they have intelligence, ability, and honesty, but little capital. A capitalist, who, perhaps, conducts some larger business of his own, might, ingrafting kindness on prudential considerations, be inclined to embark with them to a certain extent; but he finds, that instead of a prudential step, nothing could be more thoroughly imprudent. He will have to embark not only the small sum he destined for the purpose, but his whole fortune. Dealers who have transactions with the young partners, will know that a man of fortune is 'at their back,' as it is termed, and will give them credit and encouragement accordingly. Without being conscious of any dishonesty, the firm will be led to trade, not on the capital which their friend has advanced, but on the capital which he possesses. Of course, they do not intend that he should lose his fortune, any more than that they themselves should lose their business and pecuniary means. But these things happen against people's intentions and inclinations; and the friend who wished to aid them with a moderate and cautious advance, is ruined; while those who were giving reckless credit, and who encouraged dangerous speculations, are paid cent. per cent. It is the fear of such a consummation as this that generally makes the well-intending friend abstain from ultimately committing himself with those with whom he would have fain co-operated.

It is quite right that trading companies should not trade on false resources, and be able to laugh at their creditors by placing out of the reach of the law the funds with which they have speculated. Yet this can be done under the present system; and there is a class of men in the commercial world, banded together by peculiar ties and interests, who are said to accomplish it on a large and comprehensive scale. It is thus carried out: A penniless man starts in business, supplied with abundant capital by his friends: they may demand 6, 7, or 10 per cent. for the use of it; and if they manage, which they may, to avoid the residue of the law of usury, they are safe from the law of partnership. The new man, by his prompt payments and abundant command of capital, works himself into good credit. It is an understanding, that when he has been thus set afloat, the money advanced by his friends is to be gradually repaid. He is then left to swim or sink. If the former be his fate, it is well for all parties; if the latter, his friends will not be the sufferers: their capital is preserved, and they can play the same game over again, in some other place, with the hope of an equally happy result.

The same modifications of the law which would free partnership of its terrors would be only naturally accompanied with safeguards to protect the public against such schemes as these. In France, America, and many other countries, there is a system of partnership, with limited responsibility, known by the name of 'Partnership in _Commandite_.' Even with us, limited responsibility is by no means unknown. It is, however, granted capriciously and unsystematically, without those checks and regulations which, if there were a general system, would be adopted to make it safe and effective. 'I wish,' said Mr Duncan, a solicitor, when examined before the Select Committee on the Law of Partnership, 'to draw the attention of the committee first to this simple fact--that all the railway, gas, and water and dock companies, and all the telegraph companies, as a matter of course, have limited liability. It is impossible to trace why they have got it, but they have got it as a habit, and for any extent of capital they desire. Whether a project be to make a railway from one small place to another, or to provide gas to supply any town, great or small, all those companies, as a matter of course, come to the legislature and ask for, and obtain, limited liability. They are commercial companies, and one cannot trace the reason why they should have limited liability a bit more than any other company--but it is so.'

Here we have at least a precedent, which is of importance in a country like this, so truly conservative in the sense of adhering to anything that is fixed law or matter of traditional business routine. Now, in these concerns, where there is often so much wild speculation and mismanagement, no one is responsible beyond the subscribed stock; yet while we hear enough of the stockholders themselves losing their property, we seldom, scarcely ever, hear of the creditors who deal with them, in contracting for their works or otherwise, losing. The reason is, because the extent to which they can pay is known, and the people who deal with the company calculate accordingly. Unlimited liability existing in some indefinite parties, while it too often ruins these parties themselves, is a bait for that indefinite credit which produces their ruin, and sometimes leaves the careless creditor unpaid, even when he has taken the last farthing from the unfortunate partner.

In the commandite partnerships, however, the restriction of liability does not apply to all the shareholders, as in the case of our great joint-stock companies. Full responsibility alights only on those partners who take it upon them, who have an interest in the profits measured by their responsibility, and who are known to the world to be so responsible. With regard to those whose responsibility is said to be limited, it would be more accurate to say, that they have no responsibility at all: there is a fixed sum which they have invested in the concern--they may lose it, but it is there already; and there is nothing for which they have, properly speaking, to be responsible. The method adopted in France may be described thus:--There is a private act or contract, in which are given the names of the partners, and the sums contributed by them. The names of the _gérants_, or those who, as ostensible conductors of the business, are to be responsible to the whole extent of their property, are then published. With regard to those who put in money without incurring farther responsibility, it is only necessary to publish the sums contributed by them: no farther information regarding them would be of any use, unless to their fellow-partners, who would perhaps like to know if the concern is patronised by men of sense, and they may satisfy themselves by looking at the deed of partnership. Now, there is perfect fairness in all this. The public know the persons who agree to take the full responsibility; they know also the amount of money put into their hands by other parties. In deciding whether they shall deal or not with this body, they are not perplexed by mysterious visions of possible rich unknowns who may be brought in for the company's obligations. We cannot see that such an arrangement is in the least unfair, and we are convinced that it would be productive of great good. The subscribers with limited responsibility, or _commanditaires_, as they are called, are not cut off from all control over the management of their funds: it is their own fault if they join a commandite company where they are not allowed to inspect the books, and check rashness or extravagance.

It seems to be frequently the case, that a set of able workmen, in the kind of artistic manufactures for which France is celebrated, become the _gérants_ of such companies. This, we believe, is a form in which whatever element of good may happen to lie in the co-operative theories of a recent school of Socialists will be found. The commercial witnesses before the select committee, spoke of ribbons and other ornamental manufactures, which were only produced in perfection in establishments where the energies of the designers were roused by the possession of a share in the business, and in its management, as _gérants_. Coinciding with these practical witnesses, the theorists on political economy who were consulted on the occasion--such as Mr Babbage and Mr J.S. Mill--held that many inventions that might be patented and used, and many ingenious discoveries made by men of the operative class, were lost to the world by the defective state of the law. They would often get those who, richer than themselves, have reliance on their judgment, to aid them in carrying out their inventions or improvements, were it not for the law of unlimited responsibility.

We can even anticipate, from anything that will facilitate fruitful investment by the working-classes, a still wider--we might say, a political effect. The chief defect in our otherwise sound social system, is the want of fusion between the class of employers and employed. As some other countries are subject to the more serious evil of being without a middle-class between the aristocracy and the common people, so we want a sub-grade, as it were, between the middle and the working classes. It is too much the practice to consider them as separated from each other by interests, tastes, and feelings. It is, on the contrary, the real truth that their interests are indissolubly united; but if there were a less broad line separating them from each other, this would be more apparent. The true way to fill up the gap happily for all parties, is not for the middle-class to descend, but the working-class to rise. Nothing could better accomplish this, than imparting to them facilities for entering into business on a small scale on their own account. The hopelessness with which the workman looks at the position of the employer, as that of a great capitalist, would then be turned into hope and endeavour.

It is often said, that the operative classes shew an unfortunate indisposition to advance onwards, and abandon their uniform routine of toil: the answer to this is--try them. They have adopted the means at their command in other countries. Mr Davis, an American gentleman, gave the select committee an animated view of the ambitious workmen of the New England states, where, he said, 'nobody is contented with his present condition--everybody is struggling for something better.' Now, to be discontented with one's condition, in the shape of folding the arms, and abusing the fate that has not sent chance prosperity, is a bad thing; but the discontent--if such it can be justly called--which incites a man to rise in the world by honest exertions, is in every way a good thing. Mr Davis said, he has been told that, in Lowell, some of the young women hold stock in the mills in which they work. Imagine a factory-girl holding stock in a mill!

We believe that unlimited responsibility was really founded on the old prejudices against usury or interest; and as these prejudices are fast disappearing, we may hope speedily to see this relic of their operation removed. Towards this end, let the operatives everywhere meet to consider this question, so important to their interests; and, as we believe they will generally see the propriety of furthering a law to establish commandite partnerships, let them petition the House of Commons accordingly. Whether the classes with capital will move in the matter, is doubtful; for they are not the parties to be chiefly benefited. The best way is not to trust to them on the subject; but for the working-classes to take the thing into their own hands, and spare no exertion to procure an act of parliament of the kind we speak of. We feel assured, that such an act would do more to inspire hope among artisans, and to put them in the way of fortune, than any other law that could be mentioned.

RECENT FIRE-PANICS.

The panic created by a cry of fire in theatres, churches, and other public buildings, may be said to cause a considerably greater number of deaths than the flames themselves. Few persons, indeed, are burnt to death, means of escape from conflagration being usually found; whereas, the number suffocated and bruised to death by mere panic, is lamentably large. The following is the account of a most disastrous fire-panic, which we gather from a paper in an American Journal of Education.

In the city of New York there is a school, known as the 'Ninth Ward School-house,' Greenwich Avenue. The house is built of brick, and consists of several floors, access to which is obtained by a spiral staircase. The bottom of the staircase is paved with stone, and ten feet square in extent. Standing in the centre of this landing-place, we look up a circular well, as it may be called, round which the stair winds with its balustrade. The school is attended by boys and girls, in different departments, under their respective teachers. It was in this extensive establishment, numbering at the time 1233 boys and 600 girls, that the panic occurred, and it broke out in a singular and unexpected way.

One day last December, Miss Harrison, a teacher in the female department, who had been for some days indisposed, was suddenly, and while performing her duties in the school, seized with a paralysis of the tongue. The spectacle of their teacher in this distressing condition, naturally suggested to the children that she was faint, and required water. At all events, the word _water_ was uttered. It was repeated. It became a cry; and the cry excited the idea of fire. A notion sprang up that the school was on fire. That was enough. The floor was in an uproar; and the noise so created in one department was communicated to the others. The whole school was seized with panic! Now commenced a rush towards the various doors. Out of each poured a flood of children, dashing wildly to the staircase. The torrent jammed up, and unable to find outlet by the stair, burst the balustrades, and down like a cataract poured the maddened throng into the central well, falling on the paved lobby beneath. The scene was appalling. 'Before the current could be arrested, the well was filled with the bodies of children to the depth of about eight feet. At this juncture, the alarm reached the Ninth Ward Station-house, the fire-bell was rung, and a detachment of the police hurried to the scene. Here a new difficulty presented itself. The afternoon session of the school having commenced, the main outer-doors, which open upon the foot of the stairs, had been closed. Against these the affrighted children were wedged in masses, and as the doors open inward, it was some time before relief could be given them. The police fortunately effected an entrance by a rear-door, but for which timely help, many more of the children would probably have been suffocated.

'Much commendation is due to the teachers for their presence of mind. Miss M'Farland, one of the assistants in the primary department, finding the children of her department becoming alarmed, placed herself in the doorway, and exerted her utmost strength to arrest them as they endeavoured to rush from the room; and although several times thrown down and trampled upon, she still persisted in her efforts, until, finally, she was so much injured, as to be compelled to relinquish the post. So impetuous was the rush, however, that five of the teachers were forced over the balusters, and fell with the children into the well. The sterner discipline exercised over the boys' departments prevented them generally from joining in the rush. Only three of the pupils in the upper male department were among the killed. Some of the boys jumped out of the windows, and one of them had his neck broken by the fall. As soon as they gained admittance, the police took possession of the premises, and commenced handing out the children from their perilous position. Those that were on the top were but slightly injured; but as soon as these had been removed, the most heart-rending spectacle presented itself. Some among the policemen were fathers, whose own children were there. They worked manfully, and body after body was taken out: many of them lifeless at first, came to when they once more breathed the fresh air; but many were beyond aid, and death was too plainly marked upon their pallid features. Some were injured by the fall, and lay writhing in agony; some moaned; while others shrieked with pain; and others, again, when released, started off for home, apparently unconscious of the awful scene through which they had passed. The bodies of the dead and wounded were mostly taken to the Ninth Ward Station-house, which is near the school. In a few minutes, news of the accident spread through the neighbourhood, and mothers came rushing to the scene by scores. Occasionally, a mother would recognise the lifeless form of a child as it was lifted from the mass, and then the piercing cry of agony that would rend the air! One after another, the bodies of the dead were removed; and at length litters were provided, and the wounded were carried away also. Nearly one hundred families either mourned the loss of children, or watched anxiously over the forms of the wounded.'

The coroner's jury which sat on this case of wholesale destruction of life, decided that no blame could be imputed to any of the teachers in the school, and that the deaths were a result of accident. At the same time, they strongly condemned the construction of the stair, and the unfitness of the balustrades to withstand pressure. The whole case suggests the impolicy of giving spiral staircases to buildings of this class: in all such establishments, the stairs should be broad and square, with numerous landing-places.

Strangely enough, the sensation caused by the above catastrophe had not subsided, when another case of destruction of life occurred in New York from a similarly groundless fear of fire. This second disaster is noticed as follows in the newspapers:

'Monday night (January 12), between the hours of nine and ten o'clock, a frightful calamity occurred at 140 Centre Street, in a rear building owned by the Commissioners of Emigration, for the reception of the newly-arrived emigrants. The building is five storeys high, and each floor appropriated for the emigrants--the upper rooms principally for the women, and the lower part for the men. In this place, six human lives were lost, and perhaps as many more may yet die from the injuries sustained. It seems that between nine and ten o'clock, the City Hall bell rang an alarm of fire in the fifth district, and some of the women on the upper floors called out "fire," which instantly created a panic of alarm on each floor among them, and a general rush was made for the stairway, which being very contracted, they fell one on the top of each other, creating an awful state of confusion. So terrified were some, that they broke out the second and third storey windows, and sprang out, falling with deadly violence in the yard below. The screams and cries of the affrighted women and children soon called the aid of the police; and Captain Brennen, aided by his efficient officers, rendered every assistance in his power, and succeeded, as quickly as possible, in extricating the injured as well as the dead from the scene of calamity. Six dead bodies were conveyed to the station-house, and eight persons were conveyed to the city hospital with broken arms and bodily injuries, some of whom are not expected to survive. Many others were injured, more or less, but not deemed sufficiently so to be sent to the hospital. Those killed are all children, except one, who is a young woman about twenty years of age. They were all suffocated by the number of persons crowded on them. The scene at the Sixth Ward Station-house presented a woful sight, the mothers of the deceased children bewailing over them in the most pitiful manner. At the time the alarm was given, there were about 480 emigrants in the building, the larger proportion women and children, who were up stairs; and in forcing their way down stairs, the balusters gave way, thus precipitating them down in a very similar manner to the unfortunate children at the Ninth Ward School-house. There was, it seems, no cause for the alarm of fire any more than the bells rang an alarm; which alarm did not refer to that district, but was misconstrued by the emigrants to be in their building. Alderman Barr was quickly on the spot, rendering every assistance in his power to alleviate the sufferings of the poor unfortunate emigrants.'

The details of these two calamities arising from sheer panic will not be useless, if they serve to shew the extreme danger and folly of giving way to a terror of fire in crowded buildings. Let us impress upon all the necessity for so disciplining their nerves, that on hearing a call of fire in a church, theatre, or other place of assemblage, they may act with calmness and common sense; those nearest the door going out, and the others quietly following. It is in the highest degree improbable--not to say impossible--that in such places fire, before its discovery, can gain such a height as to cut off, unaided by panic, the escape of a single man, woman, or child in the house. We should remember, that not merely on the first discovery of fire, but when the building is actually in flames, the firemen are at work within the walls; and that these men are protected by no immunity but that arising from their own courage and self-possession.

THINGS TALKED OF IN LONDON.

_February 1852._