making a particular railway, has been dealt with as though it were a proprietary contract for making railways! Not only have directors thus misinterpreted it, and not only have shareholders allowed it to be thus misinterpreted, but legislators have so little understood their duties as to have endorsed the misinterpretation. To this simple cause has been owing most of our railway-companies’ disasters. Abnormal facilities for getting capital have caused reckless competition in extension-making and branch-making, and in needless opposition lines, got up to be purchased by the companies they threatened. Had each new scheme been {157} executed by an independent body of shareholders, without any guarantee from another company—without any capital raised by preference shares—there would have been little or none of the ruinous expenditure we have seen. Something like a hundred millions of money would have been saved, and thousands of families preserved from misery, had the proprietary-contract been enforced according to the dictates of pure equity. These cases go far to justify our position. The general reasons we gave for thinking that the ethics of immediate experience must be enlightened by abstract ethics, to ensure correct guidance, are strongly enforced by these instances of the gigantic errors which are made when the dictates of abstract ethics are ignored. The complex estimates of relative expediency, cannot do without the clue furnished by the simple deductions of absolute expediency. * * * * * We propose to study the treatment of criminals from this point of view. And first, let us set down those temporary requirements which have hitherto prevented, and do still, in part, prevent the establishment of a just system.