§ MR. AYRTON, in rising to call the attention of the House to the losses sustained by British subjects in consequence of the acts of the Government of Portugal respecting the Union Mercantile Company, said, the subject, although directly referring only to individuals, yet had an interest for all who invested capital in foreign undertakings. About five years since the Minister of Public Works in Portugal addressed shipowners in this country, expressing the desire of the Portuguese Government to establish steam communication between Portugal and the Western Coast of Africa. It was represented that the Crown of Portugal had sanctioned the establishment of a company, that the Legislature had approved the project, and had guaranteed a dividend of 7 per cent. The English capitalists desired a further guarantee, and requested the Government to appoint Commissioners to watch over the proceedings of the directors. That further guarantee was obtained, and the English capitalists agreed to subscribe an amount exceeding one-half of the entire capital. No sooner had the directors obtained money than they began to indulge in the most lavish expenditure. Meetings were held of an illusory character, without proper notice being given to the shareholders. At length a crash came, and the Portuguese Government advanced money, accepting in return an assignment of all the property of the company, and thus 604 becoming, in short, the mortgagee of the concern. The directors next proceeded to vote money to a large extent for their own remuneration. At that time the English shareholders, who held the great proportion of the subscribed capital, called a meeting to consider the affairs of the company; but the directors actually used the unissued capital as a qualification for votes, and thus defeated them. All this was done with the knowledge and countenance of the Government Commissioners; and when the English shareholders threatened to proceed against the Government for redress, their dividends were withheld, unless they would waive all protest against the illegalities from which their property had suffered. The English shareholders were advised by Portuguese counsel that they were entitled to sue the Government for redress; but it soon became apparent that such a suit would be a mere mockery. The English Government had already expressed sympathy for these ill-used capitalists. It was of course a delicate task for them to interfere in regard to a small State like Portugal. They could not follow the example of the Emperor of the French, and send a man-of-war into the Tagus; but they might, by their remonstrances, teach the Government of Portugal that such a gross fraud—for it was nothing less—as had been perpetrated in this case was not to be glossed over. He understood that his Motion for papers could not now be put, but he hoped the Government would not refuse them.
§ MR. LAYARDsaid, he had already informed his hon. Friend that the Government were ready to lay on the table any papers connected with this question which he desired. This was a very complicated subject, and it was impossible for him to go into it. It appeared to him, however, from the perusal of the papers, that the English capitalists who had been induced to invest in the Company had been deceived. Although they might not be able to make out a technical claim against the Portuguese Government, their moral right was very great. Her Majesty's Government had very strongly pressed the claims of these persons on the Portuguese Government; but he regretted that their representations had not hitherto produced the desired effect. They would still continue to direct attention to the question, and he hoped the Portuguese Government would, for their own credit and interest, take care that justice was done. The English shareholders undoubtedly advanced this money on the 605 faith that the Portuguese Government had given their guarantee to the concern. An adverse decision had been given in the Portuguese courts; and although there was an appeal to the Crown, it was understood that was quite a hopeless proceeding. He hoped, however, that the Government of Portugal would for its own sake recognise these claims.