§ On the order of the day for the third reading of this bill,
§ 1 "Provided always, and be it enacted, that it shall not be lawful for any society or partnership, composed of more than six persons, from and after the passing of this act, to contract or agree for the insurance of any ship, or goods, or of any interest therein, until a memorial shall be enrolled on oath in the high Court of Chancery, containing the names and descriptions of the several members of such society or partnership; and that when a transfer is made of any share or shares of any member or members of and in the capital or stock of such partnership or society, a memorial thereof shall be enrolled in like manner within three months after such transfer, containing the names and description of the original member or members, and of the person to whom the shares or interest are transferred; or otherwise such transfer shall be null and void, and of no effect.
§ "2. Provided always, and be it also enacted, that any person or persons, a member or members of such partnership or society, whose name or names shall be expressed in any such enrolment as aforesaid, shall be, and shall continue liable in law and equity to all actions, suits, judgments, and executions for the performance of any contract, claim, or demand, made or arising whilst such person or persons was or were, members of such partnership or society as aforesaid, until a memorial or memorials of the transfer of the share or shares of such member or members shall have been enrolled in the high court of Chancery as aforesaid, and execution on any judgments or decree in any such action or suit obtained against any such member or members may be issued and 1471 carried into effect against any person or persons who was or were a member or members thereof, at the time the contract, claim, or demand was made, or arose, in respect of which such action or suit was brought, or against any member or members for the time being, of such partnership or society, any law or usage to the contrary notwithstanding.
§ "3. And whereas great difficulties may attend the effectually enforcing of just demands against such partnerships or societies as may be formed under the authority of this act, where the number of the members of such partnerships or societies is considerable; be it therefore enacted, that in all cases in which the number of members shall exceed and in which there shall be occasion to sue the persons forming such partnerships or societies, the plaintiff, in any action or suit in equity, shall not be obliged to make, as parties, defendants to any such action or suit, more than two persons whose names are so enrolled as aforesaid, and such two persons shall be deemed and taken in all courts of justice to represent the whole of the members of such partnership or society, for the purpose of carrying on effectually any such action or suit to a judgment or decree; and in case judgment or decree shall be obtained in such action or suit against any two persons, members of such partnership or society, it shall be competent for the person so obtaining judgment, to issue execution thereon, or to enforce the decree against all and each of the members of such partnership or society, in the same manner, and as fully and effectually, as if such members had been, together with the two other members, defendants in such action or suit.
§ "4. Provided always, and be it also enacted, that when any such partnership or society as aforesaid shall consist of more than six members, it shall be lawful for them to sue in law and equity by the secretary or any member thereof, on behalf of the partnership or society; and such suit shall be as effectual to all intents and purposes for the benefit of such partnership or society, as if the suit were carried on in the names of all the parties thereof: and the several members thereof shall, as well as such secretary or member in whose name such suit may be brought, be responsible to the defendant or defendants in such suit for costs, and in all other respects as if they had all been parties to such suit."
1472§ His lordship declared, that his first wish was, that these clauses should now be agreed to. If the sense of the House was against him he did not mean to press it; but he desired it might be distinctly understood, that he would, next session, bring forward a general measure to put all companies under the restrictions which these clauses imposed.
The Earl of Liverpoolsaid, that this was a bill to do away with the monopoly of two insurance companies, and unless there was any point of good faith or strong motive of policy, he did not see any objection to the measure. The House had heard counsel on the part of the companies, and had determined, that there was no such ground, and that it would be right to leave the law as to insurances as it stood under the common law before these charters were granted. When their lordships should have passed this act, the law would be as it was before any monopoly existed; if, therefore, his noble and learned friend thought proper to bring in such a general law as he had mentioned, he could see no objection to the proposed enactments, but he did object to their being attached to a bill which did not go to grant any new monopoly, but to do away with a monopoly which already existed. He did not think there would be time to discuss the clauses at this advanced period of the session; he hoped, therefore, that his noble and learned friend would bring them forward in the shape of a separate measure in the next session.
§ Lord Redesdalecontended, that the provisions of this bill, did, in effect, make a new law. He was convinced of the necessity of the clauses, and firmly believed, that if they were not attached to the bill, they never would be passed until the mischievous effects resulting from the want of such restrictions should be severely felt.
§ Lord Bexleycontended, that no inconvenience could arise from postponing the clauses to another session. He supported the bill, and said, that peace, when premiums were not high, was the proper time for throwing open Marine insurances.
The Lord Chancellorsaid, that if it were intended to establish any gigantic insurance company, the advice that a lawyer would have given to the parties would have been this—"Get these chartered companies demolished first, and then during the recess of parliament, you may establish your company wider what regu- 1473 lations you please: if you want to form an Atlas company, give me this little bill, and I will move the whole world." If, therefore, during the recess, any combinations of persons should arise to defeat the objects he had in view, he hoped to have the assistance of parliament to pass some measure; and if the parliament did its duty, they would be able, in spite of the whole of the monied men of the country, to do what was proper under the circumstances. He hoped he should be able to satisfy their lordships, as he was sure the public were satisfied, that without some restrictions such companies would be the most ruinous nuisance ever known. He should now merely move, that the clauses be read pro forma.
§ The clauses were accordingly read and withdrawn, and the bill passed.