Joint-stock enterprise in France, 1807-1867: from privileged company to modern corporation 0807896667, 9780807896662

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Jojnt-Stock Enter prise in Franc e

Fro111 Prh·ileged Co111pa11y to Modern Corporatio11

1807-1867

by Charles E. Freeden1an

nu~

UNl\'ERSll Y 01· NORTlf CAROLINA PRESS· f'IIAPEL lfll.L

Joint-Stock Enterprise in France. 1807- I 867

© 1979 The University of North Carolina Press All rights reserved Manufactured in the United States of America Library of Congress Catalog Card Number 78-26674 ISBN 0-8078-1359-1

library of Co11gress Catalogi11g in Publirntio11 D11ta Freedcman, Charles Eldon. 1926Joint-i.tock enterprise in France, 1807-1867. Bibliography: p. Includes index. I. Corporations-France-History. 2. Stock companiesFrance-History. I. Title. 338.T4 78-:?6674 HD2855.F73 ISBN 0-8078-1359-1

For Jorce

Contents Acknowledgments Introduction 1. The Beginnings of Joint-Stock Enterprise in France 2. The Rise of the Societe Anonyme. 1815-1833 Early ),·w·s. 1815 -1820 Tl1t• Socictc Anonymc, 1821-/833 R111111i11g rJ,,, Bun•m,cratic Gmmtlc•t

J. The Rise of the Soch;tl; en Co11mw11dite par Actions 4. The Socih£; A11011yme in the Railroad Age. 1834-1859 Tiu• C n111i11g of rJ,,, Rc,i/roacl, J834-1846 IJ,•prt·ssicm, R,Tol111io11. mul 800111, /847-1859

5. The Falt of the Soch;tl; eu Commaudite par Actions 6. The End of an Era Tiu· Lc,.u ),•c,rJ of Gcm•mmmt A111hori:.C11io11, I 860-/ 867 Authori:.aricm Policy i11 the Rc,i/roc,c/ Age•

7. The Triumph of Free Incorporation Appendix: Societes A11011y111es. 1808-1867

Notes Bibliography Index

lxi] jxiii] 13] 119]

I 19] 127] I34] 147] 166] 1661 180]

I IOO] I 1151

I 115 I j 123 I I 1321 1145]

I1991 1217] 12271

Tables 2.1 Companies Au1horiled. 181.5-1820 ., ., Forma1ion of Sol'ic•tc'.'i A/l(Jll_\'11/C'J. 1821-1833

[251 [27)

2.3 Soci,·rc.'iAmmymeJ. 1821-1833. by Seclor

[281

2.4 LargcCanalCompimics. 1821-1833

[29)

2.5 Large Metallurgical En1erpriscs, 1821-1833 2.6 Large Glassmaking Companies. 1821-1833 3. I Rcgi~tralion of Socic•tc·s e11 Cummcuu/ire par Actions. 1826-1837

I30]

3.2 Socic·tC's en Co11111wnc/itc• p"r Actio11s Registered al 1hc Commercial Tribunal of Lyon 3.3 Regis1ration of Socihe.,· ,.,, Co111111a11c/irc• par Acriom. France except Paris Arca. 1826-1837 3.4 Societes ,.,, Co111111c11u/itc• pc,r Actions. France excepl Paris Arca, 1826-1837. by Scclor 3.S Socictcs ,.,, Co111m,111c/irc• par ActicmJ Registered al 1he Commercial Tribunal of Paris in 1837. by Sec1or 4.1 Fonnalionof Soci,;u·sA11011_,·111,•.c;, 1834-1846

[33) 1.50] [51] [52) 1531 [54 J [67)

4.2 Sociercs AflOfl_\'llll'S, 1834-1846. by Scclor

168)

4.3 4.4 4.5 4.6

169) 171] [73) 181)

Railroad Comp:mics. 1834-1846 Insurance Companies. 1834-1846 Dcpanmcntal Banks. 1834-1846 Fonnationof Sol'ic•rc•sAmmymc•s. 1847-1859

4.7 Socictcst1mm_,·mes. 1847-1859. by Scr..:1or

[82)

4.8 R.iilroad, Au1horizcd. 1847-1859

183)

-"·" Bank_, Authori,cd. 1847-1859

[84) [94)

4.10 Large Metallurgical Companie!. Au1horilcd. 1847-1850 5.1 Rcgistnttion of Socic•tt·s ,.,, Commcuu/ire par Acrioll.'i. 1839-1849

I 1021

5. 2 Nominal Capi1alin11ion ofC0111111. Where they did exist 1hey were u,ually wi1hout real power. Most large companies (!hose wi1h capital of ,wer I million /frn•s) were formed in Paris. the only importanl capi1al markcl in France. and !heir dircc1ors and shareholders also mel !here. The number of shareholders was generally small: Anzin had onl) nine1een !>han:holdcrs in 1757 .23 Joint-s1ock enterprise!> 11:nded 10 he concentrated in a few sec1ors of lhc economy. Ordimiry partnerships and t'II commamlirt• partnership!> \\ere adcquale for 1he needs of domes1ic commerce, as long as the amoun1 of capital needed remained rela1ively small. Bui in sector!> when: large amoun1s of capital \\en: required. the 1radi1iom1l forms of orgnni1a1ion and the regulations go\'crning 1hem were clearly inade4u•,te. The tiN joint-slllck companies in France were over-;eas trading compcmie, chartered by 1he crown and enjoying exdu!->ive privileges. Appearing slighll) la1er were large manufac1uring concerns enjoying 1hc pa1rom111e of. .md ohen !->Ubsidi1ed by, 1he crown. The crown also cha.ncred ill fc" b.mks and public utili1ie!'>. Those joinH,lock companie!> chartered by 1he cnm n \\ ere by far 1hc largc!lil of the t111cit•11 rt;~imt•. l.!nregii.1ered comp;rnie, of shareholdcn. \\en: employed primarily for

[8)

Joint-Stock Enterprise in France, 1807-1867

mining and metallurgical enterprises. In port cities the commandite with shares was developed for outfitting merchant ships, usually for a single voyage. The nobility invested heavily in joint-stock enterprise. The commandite par actions and the unregistered company of shareholders afforded nobles an opportunity for investment that did not involve them directly in commerce, which they regarded as incompatible with their dignity, or subject them to any publicity. Those who invested were the influential court nobility, and nobles of recent origin whose fortunes had been made in business. 24 Investment by the nobility was particularly heavy in commandites par actions organized to outfit ships for trading voyages. 25 In time of war, nobles also invested in privateering ventures, organized as commandites par actions. operating out of Nantes, Saint Malo, and Marseille. 26 The nobles' closeness to the land led to heavy investment in mining and metallurgical enterprises organized as unregistered companies of shareholders. 27 This type of organization was typical of coal mines at the end of the ancien regime, though the number of stockholders was usually small. 28 The reappearance of bearer shares in the 1780s, after a long hiatus following the collapse of John Law's system, enabled nobles and other investors to conceal their identities more effectively. These shares were exempt from any formalities of transfer. though their holders ran the risk of loss and theft. In spite of their disadvantages-companies disliked them because they would not permit further calls on shareholders for capital-they were popular with the investing public. At the time of the reorganization of Le Creusot in 1787, Ignace de Wendel. after failing to get funds from the crown, noted that "only the public could provide the capital for a large scale enterprise and the only way to get public participation was to create bearer shares."29 De Wendel recognized the great advantage to shareholders of being able to recover their capital by selling their shares at any time. 30 Even Calonne, the minister of finance, found it expedient to float government loans by means of bearer securities. 31 Two great speculative booms in the shares of joint-stock companies occurred in the eighteenth century. Both involved the shares of privileged companies chartered by the crown. The first, part of a general speculative mania that was European in character and saw the South Sea bubble in England and the tulip mania in Holland, involved shares

Beginning!,

19]

in the bunk and trading companies founded by John Law. The collapse of this boom in I 720 left in its wake a re\"lll!>ion against banks of issue and joint-!>tock companies, ,, hich retarded the development of both of these instinnions in France. After unsucce_,sful attempts to !>Uppress !>peculation following the colh1psc of La\\ 's system. the Paris Bourse was founded in 1724. in pan to enable the go\'ernment to police transactions in government "ecurities and other shares. Before 1724 these functions had been performed by unlicensed intermediaries meeting on cenain streeti. or in cafes. such as the famed rue Quincampoix during the Law boom. Sixty licensed brokers were to handle all transactions in government securities and other shares. although the negotiation of bills of exchange did not require the use of intermediaries. Until its suppression during the Rcvolution. the Bourse was houi.ed in the Hotel de Nevers, the prcsent location of thc Bibliothcque nationalc. The si:cond great i.peculative boom occurred in the 1780s. This boom involved not only government securities but the shares of such quasi-public companies as the Caisse d'Escompte (founded in 1776). the Paris \\'aternorks Company ( 1784). the New Company of the Indies ( 1785). and a life insurance and two fire ini.urance companies ( 1786-88). The total issue of these companies amounted to over 76 million /frrc•s .32 Another company whose shares were heavily traded on the P.iris Bourse was the Bank of Saint Charles in Madrid, founded in 1782 and hcadcd by a French merchant, Fran,;ois Cabarrus. Some of thes-c companies were involved in government finance: some. in fact, were schemcs to enable the hard-pressed government to borrow money. Thc small number of speculators consisted of nobles. wealthy bourgeois. and fon:igners. 33 The techniques of speculation were sophi,ticated. including buying on margin and dealing in futures. Wellnrl-'hc~tnucd campaign, to depres, or raise the value of shares of cenain compunies \\erc a characteristic feature. The~e exec~~ contributed to the closing of the Bourse and the supprc!\~ion of all joint-i.tock comp.miei. during the Revolution. On 27 June 1793. the Con\'ention. under prc~sure from the P.irii. sections th•t blarned ,p,xulamrs for the depreciation of assig,wrs. decreed the dot.mg of the Bourse.:u On 24 Augu,t a law suppressed the Caisse d'E!llcompte. the life in .. ur.incc company. nnd all cnterpri!'.es .. whoi.e capital fund., \\ere in the form of bc.ircr sharci.. or nc¥otiablc i.harcs.

(10)

Joint-Stock Enterprise in France, 1807-1867

or by inscriptions on a book transferable at will." 3:; In the future only the legislature would be permitted to authorize the formation of jointstock companies. A variety of reasons contributed to this action: hostility of the Paris sans-culottes, corruption in the large companies. the depreciation of the assignats, for which the companies were partly blamed, and the belief that speculation in shares decreased the funds available for government borrowing. 36 Except for the large joint-stock companies chartered by the crown. whose shares had been traded on the Bourse, it seems unlikely that the Convention's prohibition had much effect. Although the Directory authorized the return of joint-stock companies (law of I November 1795 -30 Brumaire year IV), it did not provide any framework or impose any restrictions. Promoters were allowed free rein, but questions concerning the legal status of their creations remained unresolved. The early preoccupation of the Bank of France, created in 1800, with the liability of its administrators and shareholders illustrates the uncertainty over these matters. 37 The Consulate quickly took steps to remedy this uncertainty by providing a common framework for all joint-stock companies. In 1800, Vital-Roux, a merchant of Lyon, published De/' influence du gouvememem s1tr la prosperite du commerce. in which he called for the drafting of a commercial code. The new code, he said, should be drafted by merchants because of their experience ... The worker who runs the machine knows its faults better than the intellectual who describes it." 311 Vital-Roux's wish was granted the following year. when he was appointed to the commission charged with preparing the draft of a new code. This commission, appointed by the First Consul on 3 April 1801 ( 13 Germinal, year IX), numbered seven persons. most of whom possessed either legal or business backgrounds. 311 Within eight months the commission completed its draft. 40 In his report to the consuls, the minister of the interior, Jean Antoine Chaptal, claimed that, in the main, the new draft code merely reproduced the provisions of the ordinances of 1673 and 1681 . Chaptal added that what new provisions there were stemmed from experience and suggestions emanating from large commercial centers. 41 The commission possessed some knowledge of the Miromesnil reform project, but it is uncertain if its members had access to the final

lkginnings

11 I]

1c,1 of 1h1, draft code. The commission report admi11ed that some fragment, of the \\Ork or the Mirome,nil Commission had been communicated to them by a former member of that commis,ionY However. a compari,on or thl' l\\o dralh-in which there arc many similarities.ind the relati\'el~ short time in \\ hich the commission completed its \\Ori-.. strongl) ,uggc:-1 that the commi..-.ion may ha\'C had access to the final draft of :\1iromesnil's code. ~3 The dr,1f1 of the commi-;sion rccogni1ed only one type of joint stock company. the .wci,;re mro11_,·m,•. and required that this fom1 of business organization be authorized only by the go\'ernmenl. The text of the draft code was then ,ubmilled lo all the courts of appeal, tribunals of commerce. and chmnbcrs of commerce throughout the country for their ad\'ice. H The members of these institutions. primarily businessmen and jurists familiar with business practices and needs. gave c.ircful consideration 10 the draft; their observations fill three large ,olumesY• The pro\'ision rettuiring that all joint stock companies be amhori1cJ b~ the go\'cmment raised numerous objections. Although only the appeals courts of Brussels. Dijon. Caen. Abbeville. and Paris objected 10 the rettuiremem of m11horiza1ion of all sh.ire-issuing enterprises. the objections of commercial tribunals and chambers of commerce. both more representative of business opinion. were more numerou,. The commercial courts of Abbeville, Bayonne. Brussels, Dijon. Eu and Trcport. Geneva. H.tvre. Rochefort. Lyon. Marseille. Names. Saint-Brieuc. Saint-Malo, and Strasbourg raised objections. a.., ~ell a, the chambers of commerce of Lyon, Marseille. Nancy, Nantes. Rouen. Saint-Brieuc. Saint-Malo. and Strasbourg. Urged 10 do '>O by the government. many commercial courts and chambers delibcrnted together and issued joint opinions.°' 6 All contended that the rettuirement would be gra"ely injurious 10 commerce. Some noted that the rcttuiremenl was ju,1itied for b:rnks. for companies possessing ,m c,clu1.1'\"C privilege. such a~ the over!>eas trading companies of the a1tl"i,•11 r,•gime. or for large enterprise, bm not for ordinary business ,enture, ... uch a.s the ou11i11ing of ,hips and manufacturing enterprisei.. T~p,icnl of the respon!tes on thi-; point were the observations of the l·ommcrc1al tribunal of Uin re: Th\." au1honn11mn nf lh\!' G1l\cmm\!'nl. \\ h,..:h 1h" arudc n.•4u1rc-'>. " u11Jouh1\!'JI) nc..:c"ar~ lor large l'nl\!'rpr"'-"' "h1..:h 1111gh1 h~l\c ,ornc n1nncc1ion \\ i1h 1hc puhlii: 1n1cn:,1. ,uch .1, th\!' Bani,. of Franc\!' or nlhcr \!',&abli,hm\!'nl, of 1h,,

[ 12)

Joint-Stock Enterprise in France. I 807- I 867

type. and privileged companic!>, if they arc to be formed. But thi!t requirement ... must not be applied to individual enterprises which arc ordinarily formed with shareholders such as the outfitting vessels for commerce, privateer!I, manufacturing establishments. etc .. because these enterprises arc ordinary commercial operations which are regulated and must be regulated by contracts bet ween the interested panics. u

After taking into account the objections and suggestions of the courts and chambers of commerce. the commission revised its initial draft. The commission report, which accompanied the revised draft. denied any intention of subjecting share-issuing societes en comma11dite to governmental authorization, but it recognized that the objections were not without substance, as the original text contained no provision expressly permitting the division of the part of the comma11diraires into shares. 4 " The commission added a provision allowing the capital of a societe en commandite to be divided into shares. The draft was then transmitted to the Conseil d'Etat. where it was allowed to languish for several years until Napoleon ordered that its consideration be expedited. The economic crisis of 1805-6. bringing in its train a large number of business failures. appears to have convinced the emperor of the utility of uniform and precise regulations to govern commerce. 49 The draft was first revised by the section of the interior of the Conseil d'Etal, after which it was submitted to the Conseil's General Assembly. Altogether the General Assembly devoted more than sixty sessions to the Code de Commerce. four of which were presided over by the emperor himself. The General Assembly dealt with title 3 of the code, concerning business organization, during five sessions in January and February 1807. 50 During these sessions some key provisions of the draft code were challenged. Some members of the Conscil wished to eliminate the societe en commandite as a separate form of business organization. Merlin de Douai claimed that it resembled the societe a11011yme. an opinion that was ably refuted by Regnaud de Saint-Jean d'Angely, who argued that the societe en comma11dite constituted a distinctly different form of business organization. A more liberal provision regarding the formation of societes a11011ymes was suggested by Jean Baptiste Treilhard, one of the ablest members of the Conseil. He proposed that government authorization be required only for those corporations having some connection with public order or the state. He

Beginnings

k.,,

[ 1.3 J

c,cn ,ugge,1ed 1hc po:,,:,,1hilil) of ing 1hc dcci),ion on whc1her 1hc L'nrpnr.11ion rc4uircd au1hori1a1ion 10 1he shareholder-, 1hem:,,clves.:.i Thi, propos.rl w.r:,, a11ad,L·d h) ho1h Regmrud de S.1in1-Jc.m d' Angcly .md 1hc an:hch.mecllor. Jean fac4ue:,, Camhaccre:,,. "The public order." .icL·ording 10 Cambaccrc:,,, .. i:,, involved in every compm1y 1ha1 i"ue, share,. hccau,c far 100 olkn 1hese enlerprise:,, .ire only a 1rap sci up for l·rcdulous ci1i1cns.":, 2 Rcgnaud lk Saini-Jean d' Angcly reminded 1he memhcr:,, of lhL· excc,:,,c, of former companies and noled 1ha1. "i1hou1 L'arcoful ,ur\'eillancc hy 1he governmcni. fraud!, would be numcrou,.:,:i II "a, al,o poin1cd ou1 1ha1 1he emperor had already dcmon,1ra1cd hi, oppo:,,i1ion IO .,llowing .mci,•tt•.\· wumym,•s 10 he formed "i1hou1 g,nernmcnl pcrmi.,.,ion by ordering lhe minisler of 1he in1erior 10 rc4uire all Mich exi,1ing cn1crpri,es lo submil 1hcir charters for approv.11. C.rmhaL'CrC!'> a],o exprL'S:,,ed !,Ollle rescrValiOm, over lhe Wording lhe c.1pi1al of a .mcil'lt' en co111111a11ditt' lo be ing of 1hc art ide divided in10 ,hares. He feared ii mighl "allow a verilable .md,,,,; ,11101,ym,· 10 conceal i1,clf behind 1he fm.:adc of .a Jocihe ,,,, co11111umditt' 10 avoid ob1aining gowrnmen1 amhorilalion.'':;~ The code. once approved b) 1hc Com,cil d'E1a1. was passed by lhe docile Tribunal and Corp, Lcgisla1if wi1hou1 scrim,:-. difticully. The linal vo1c on ii look place on 15 Seplemhcr 1807. and ils provisions hcc1me cffct:1ive I hnuary 1808. The ne\\ Codt' dt• Commerce rccogni1cd 1hree form:-. of hu,inc:-.s organi1a1ion: (I) 1hc .wci,·t,• t'II 110111 co/1,•ctif. (2) 1hc .mcihe ,,,, commwulitt'. and (3) 1hc .wciit,· ww11yme. The socihe ,,,, 110111 col/t>ctif ".u. a regular partner,hip in "hich any partner could at:1 for 1hc 01hcr,:.:. and all p.,rtncr, were subjccl 10 unlimi1cd liahilily. Whereas 1he ordimuy partnership implied a number of individual!. all ac1ivcly engaged in the enterprise. 1hc .wcit•tt' en co111111tmtlitt' wm, a "limi1cd" (or "i.lccping" or ",ilen1") partncr,hip in which one or a number of .1L·1i,e p.rrtnen, (,:enmh) managed 1hc cntcrpri1,c, and one or a number of p11.ssi-..e or · 'li111i1cd' · partner, (commmulitairt•,\·) contributed capi1iil or otht!r asset, 10 1he cnlcrprise hu1 \\Crc denied participa1ion in mana~L·ment. under p.rin of lo,., of limited liability. The gfrm,t.\· of .i , mwuwultt,•. 111,,.c 1hc p.1rtncn of a .\oder,· ,.,, ,wm rollt'ctif. were ..uhJCL'I 10 uni imitcd I iahil i1y. The ,·0111m,111ditoir,•!i. dcst:rihL•d in the code 1,imply its lender, of capital (hailll'ur.\· dt•.\· fmu/.\·). pos1,cs1-cd limned li.1hili1) and \\ere 10 rcL·eive an ugrced-upon !1'.h.trc of the prof-

.,11,m

(14)

Joint-Stock Enterprise in France. I 807-1867

its. Article 38 of the code provided that the capital of the co111111amlite might be divided into shares, which in effect created two types of societe en commam/ite: the societe en co11111umdite simple and the societe en co111111andite par actions. The right to issue shares made the latter a type of joint-stock company. The societe en commandite, as conceived by the drafters of the code, was for a small or medium-sized enterprise. such as a pannership might engage in, but with added flexibility that the pannership did not possess. As we have already seen. this form of enterprise was widely used in coastal cities for trading ventures. It had permitted the nobility of the ancien regime to invest in business enterprises without fear of losing their titles. Early nineteenth-century glossators habitually described the commandite as a form admirably suited to the needs of inventors in search of capital. The drafters of the code did not foresee that allowing the capital of a commandite to be divided into shares would enable it later to serve for large enterprises. The form of business organization intended for large enterprises, then quite rare in France, was the societe mwnyme. A corporation in the modern sense. its organization was modeled after the privileged companies of the ancien regime. The capital of the societe anonyme was divided into shares that were easily transferable. All stockholders possessed limited liability. The societe anonyme was administered by agents, who were not necessarily stockholders themselves and who could be removed by the stockholders. Unlike the pannership and the societe en commandite, where the name of the enterprise was the name of one or more persons subject to unlimited liability, the anonyme was designated by the object of the enterprise. A societe anonyme could be formed only with the express permission of the government by means of a decree approved by the Conseil d'Etat and signed by the emperor. Regnaud de Saint-Jean d' Angely, in his expose des motifs before the Corps Legislatif on I September 1807. explained the purpose of a11011ymes and the reason for government authorization: Societes anonymes or associations of shareholders have. of necessity. also attracted the attention of the drafters of the code. These associations arc an effective means of encouraging large enterprises. of bringing foreign capital to France. of al.sociating small fonunes and almost the poor with the advantages of large speculations. of adding to the public credit and the circulating funds of commerce. But too often these associations. poorly organized from

Beginning:.

I 151

1he tx•grnning ur p1~1rl) adrrnni,IL'red in 1heir 11pL·ra1wn,. ha,e Jeopan.li,eLI 1he l11nunl.', uf ,111d,h11ld...·r, and ;1dmini,1ra1or,. ahL'rL'd 11101111.'nlaril) 1he general L"rcd11. and 1mrx·nlcd puhliL' 1ranquilll). II hJ, hL·i:n rei:11gni1L'd 1ha1 a i:ump;in} of 1h1, I} pl.' can l.'\i,1 11111) a lier a kg.ii .1L'I. and Iha! 1hc 1111cnl.'nli11n nf lhe g1nL"mml.'nl i, lll'L'C,,,ir) 111 \'l.'rify Imm lhL' tx·grnning 11n ,,hal ha,i, 1hc 11pcr:11ion, of 1he L'ompan) \\ould rc,1. and ,, h;11 c11n,c4uen..:e, rl ,, ould ha, i: .-·,,;

A regulation of ,c,·en aniclcs is,ued by the minister of the interior on 21 December 1807 :.cl forth the proci:dure for ohtaining the au1hori1ation of a .wciC'lc' cmonymc• .''' Reque!.l~ for authorization were 10 he ,ubmilled tn the prefect of the dep.irtment. Each reque!.l was 10 include a de~cription of the object of the enterprise. the period of it~ duration. 1hi: name!. and addrc,scs of 1he ,tockholdcrs. the capital of the enterprise. the dmcs b) "hkh th«: capital was lo be paid up, the seal of the enterprise. the mode of its admini,tration. ,md its drnft chaner. If all the capital \\ as not subscribed. and the subscription was to be compkti:d alier governmental authorization. then at least one-fourth of the capital had 10 be paid in. The prefects were required to report on the ,1a1Us and character of the promoters and stockholders and to give 1heir opinion!. on 1he utility and chances for success of 1he enterprise. The request for .1uthorization. "'ith related document~. and the repon of the prefect would then be forwarded to the minister of the interior. After being examined b) the ministry. the rcquc~l would be tr.m"miucd 10 the Con"i:il d'Etat, which. after an examination of it!. o\\ n. di:cided to authori,e or reject. Authorization bcc.ime final after 1hc signature of the head of the "late. Once the enterprise w,ts authonLl'd, changes in it" charter h.id to be secured by the procedure re4uin:d for initial authoritation. This long and tnrtuou" process offered no guarantee for linal succe""· Existing sociC'les e1no11_,·mc'.'i were to rc4uc,1 au1hori1ation follo\\ ing the pre!.cribcd procedure within six month\ after I January 1808. The judgment, of modi:rn French hi'itorians on th«: code tend 10 he ncga1i,e. Thl· hacJ...\\ard-looking. restricti\'e, and repressive provision!. of the code arc held re,..pon!.ibk for retarding economil.: development and inhihiting 1hc gnmth of enterprise. In shon, the cmlc owed 100 1111.tiA:h to 1hc ordinance., of Colbert's time and did not i.ufliciently take into acrount cigh1ecnth-ccntul)· d«:\'clopmcnt, and future need!.. lti:ms in point arc it~ har,h prmi,ion, r«:gar company wa!'> refused aulhorizalion in t 808 on 1he grounds that ii!'> chancr pro\idcd for 1hc unlimi1cd liability of .,harcholders and for fu1ure calls on shareholder!. for :.1dditional capital. which the mini!.1ry of imerior ch:.iracteri1ed as conlrary to 1hc n:.nure of a societe a11011yme. ,,:i The mini!.lcr of 1hc interior informed the prefect of the Audc in 1809 thal lhc propo!.cd Compagnic de!> Salines d'Estarac did not fulfill lhe rcquircmcnl!'> for aulhorization as an societe m1011yme bccam,c neither the c:.,pital of the company nor the value of each share \\:1, fixed.,;~ The direclor!'> of the cenlllry-old Sain1-Gobain company. considering 1he company 10 be a soci,•u• c111011ym,•. applied for authorizaiion. The prefccl of police of Paris con!>uhed 1he Chamber of Commerce. which argued thal becau!.e 1he shareholders were !>ubjecl 10 unlimited liability. the company wa!'> actually a p:.1nncrship. The chamber recogni,ed 1ha1 partnershipi.. arc de!.igna1cd by the names of one or more of the purtner:.. bul though! lhal the Sain1-Gobain company which had al,"a)S been known a., 1he Manufacture (Royalc) des Glaces, could legal!) relain it!. old n:.une."5 The company was denied authorization, ahhou!h ii is not clear if the Con ... eil d'Ew1 accepled lhe arguments of 1he Ch.amber of Commerce of P.iris. Those companie!. 1h.a1 received au1hori1.ition were engaged in a "ide '1lrie1y of enterpri!'>e!'.. There were four forges or foundries, a coat mine. 21 canal. three !heater!'., a coach company..., bridge company, u \,rn,mill. a compan} to produce \'egctable dyes, a company lo manufac1urc ,ugar from bee!!'>, and a l>econd:iry school. Some of lhese emerpri,ee. were already in exi'itence in 1808 and. like 1he Saint-Gobain Comp.in}, applied for au1hori1.nion ii\ required by law. Their si1e also \'aricd. The c.ipilal of the Fonderie~ de Romilly. origin:.,lly founded dunng lhc ,111cic•11 regime•. wa., I. 760,CKX) franc!'. divided inlo 55 i..hare\

[ I 8]

Joint-Stock Enterprise in France. I 807-1867

of 32.000 francs. each share being subdivided into coupons of 8,000 francs. 66 The capital of a company for the construction and maintenance of a theater at Le Mans was 18,000 francs. divided into 120 shares of 150 francsY The capital of the company Culture de Pastel et la Fabrication de J'lndigo at Mulhouse consisted of 400 bearer shares at 100 francs. 6 H During the empire. the Conseil d'Etat permitted shares of widely varying nominal value. the subdivision of shares into coupons. the payment of interest on shares, and the issue of bearer shares. From the beginning, the Conseil d'Etat assumed great discretionary power in granting authorization. In its advisory opinion rejecting the authorization of the Manufacture de Draps des Hautcs-Alpes Embrun in 1809. which the minister of the interior had recommended authorizing. the Conseil noted that. · ·because socieres w1011ymes have no agent who is personally liable, in the best interest of commerce they cannot be authorized without the greatest caution." 6!1 Though the personnel and organization of the Conseil would change over the next sixty years, this remained a guiding principle.

a

2

The Rise of the Societe Ano11y111e,

1815-1833 Lfcr of shares substitutes new shareholder!'> for the origin:il one ... h is in the public interesl lhal. to continue. 1he enterpri!'>e be e.,pre,.,ly reau1hori1.cd al lhe end of ils lerm. and !'>ubmiucd again to 1he approval of 1he government. in order 1ha1 1hc government can refuse authori1a1ion if the new shareholders do not appear to be worthy of conlidence."" The draft chaner abo had lo specify lhat if a l'erlain portion of the c:1pital of the cnlerpri.,e w·erc losl. lhe cnlerprise was obliged lo dissol\e itself. The eslabfo,hmenl of :1 reserve fund. 10 be raised by laking a ponion of lhe annual prolil!'>, was re{luired. No dividends were 10 be p.iid if lhc ...:apilal of lhe enterpri'.'.e fell below its nominal figure. For the~e re(luiremenis to be enforced. :111 companies would have 10 submit balance !'>heel!'> every !'>ix month!'> to lhe local commercial 1ribun:1I. 10 the loc:11 l'hmnbcr of commerce. if any. and 10 lhe prefect. For fun her publicity. 1he ch:.1ners of all socit'I the C'on11ptttZnie d' A"uranec, Gcncrnlc. comprn,ed of 1hree companies for

[22)

Joint-Stock Enterprise in France, 1807-1867

marine insurance (22 April 1818), fire ( 14 February 18 I9), and life (22 December 18 I9). The Conseil also authorized the Phenix ( I September 1819) and the Compagnie Commerciale d · Assurances Maritime (22 April 1818). These were all large companies mainly organized and controlled by private Parisian bankers of the lwute ba11q11e. The founders of the Compagnie Royale group included the firms of Jacques Laffitte, James Rothschild, the Perier brothers. Jean Hottingucr. and Dominique Andre and Cottier. The Compagnie Royale group was also the largest: the capitalization was 30 million francs for the life insurance company, 10 and IO million each for the fire and marine insurance companies. Outside Paris. there were by 1820 a marine and a fire insurance company in Bordeaux and marine insurance companies in the port cities of Rouen and Nantes. In the 18 I 8 i11structio11. the Conseil d'Etat had decided that no insurance company that insured more than one type of risk would be authorized. 11 The Conseil considered marine insurance particularly risky-a well-founded opinion. as both the Compagnie Royal d'Assurances Maritimcs and the Compagnie Commerciale d' Assurances Maritimes disappeared within a few years. Mutual insurance companies for the purpose of indemnifying losses among their members also appeared. In 1809, the Conseil d'Etal ruled that such companies had to be authorized by the government. 12 Although. strictly speaking, they were not commercial companies within the meaning of the Code de Commerce. because they sought no profits. they were assimilated to the a11011y111e form. The first mutual company. for protection against fire. appeared in Paris in 1816. An additional 2 mutual fire insurance companies were founded in 18 I 8, 8 in 1819, and 8 in 1820. The first mutual life insurance company, founded in 1820. was apparently stillborn. and its authorization was revoked in 1827. In the sixty years after 1817. over 170 mutual companies were formed, including some for protection against hailstone damage to crops. animal mortality and epizooty, and conscription. The government authorized three regional banks of issue, one at Rouen in I 817 and the others at Nantes and Bordeaux in 1818. The motive of the founding of the Bank of Rouen was the suppression of the branch of the Bank of France there at the end of the empire. The primary function of all three was the discounting of commercial paper. Local private bankers, who did not welcome the competition, opposed

The Ri,e of the

Soci,·r,·

A11m1_,·111,•, 1815-18JJ

(2JJ

the founding of the hanJ.., of Borde:1u\ and Nante'>. 1=1 The Bordeaux h:1111-. \\a, the large,1. capi1.ili1ed at J million franc.,, folhmed hy Rouen at I million and Nante, al 600,000. The hank at Nante., L'\pcrienced di l'lit:ult) r.ii,ing it, capital and \\ a, not ahle to he gin open1t1on until I X22. 11 The nexl "·"e in the creation of departmental h.mJ.., did not hcgm until the mid-18.10,. The lin,t large mortgage hanJ... the Cai.,,e H) pmne time extended the opcrntion., ol the projcL·tcd i.:lllnpan} to include commen.:ial nedit and changed it, name to Banque Foncicrc ct Commerciale. In July the mini,tr} ,uhnutted the projcc1 to the Coi1'eil Gcncralc du Conunen.:c,I; compt,,ed of luminaric, of the lwllll' hmu111,· and commerL·c. whkh ra1,ed numcrou, ohjection, to 1hc entcrpri"~ and recommended that it he refo,ed authori,ation. The org:mi,cr, introduced further revi,ion., m it, drJft ch:1rtcr in October 1821 and reduced the capit:11 of the enterpri1,e 1t1 45 million franc,. Further change, were made in J:inuary 1822. all in ,ain. for the Con,eil d'Et:1t rejected the propo.,al in April 1822. 1 " The organi,tf' then founded the L'ompany a, a .wci,·r,• ,.,, co111111a11tl11,· Jlllr aawm to e,cape the nccc.....,ity for authori1:11ion. Al:mncd. the mml\ter of the interior queried the mini,ter of fin:mcc. Count de V1llcle. on pt,"1hlc legal ground., for ,topping the pron10tef'. Villcle L'ondudeion, or the Co,/,• ti,· Co111111an•. \\ hiL'h rcgul:1tc, thi, type of hu,ine.,, nrgani1at1lln, the ~mcrnment doc, not h,ne the right to interfere in their 01x~rat111n :tn) more thun tor other cnterpn"c founded on a ha.,i, either hcthtr or" or""c " 141 The mm1,tcr', \\ omc1> \\ ere needle", for the hanJ..

[24)

Joint-Stoek Enterprise in France. 1807-1867

was stillborn. Although the objections of many of the members of the Conseil General de Commerce could be auribulcd lo 1hc dislike of a possible rival. il is difficuh lo escape the conclusion lhal the project was poorly conceived. Another innovation of the restoration period was the establishment of savings banks (caisses d' eparg11es et dt' prhoya11ce ). aimed al inculcating lhe virtue of lhrifl among lhe poor. These banks invested their deposits in government re mes. the interest of which was credited lo lhe accounts of depositors. Benjamin Dclesscrl and other members of the Parisian luwtc• bwuJm' founded the first of these banks. lhc Caisse d'Epargne of Paris. in 1818. The organizers requested lhe a11011yme form because they "wished their association lo be subjected lo the formalities of commercial socieres ww11_,·11u•s lo insure confidence, although they ruled oul any idea of profil." 20 The patrons contributed government relltt's with an annual income of I .000 francs lo endow the Caisse of Paris. This initiative spread lo other dcparlmems. where lhc lead in founding misses was taken by prefects. chambers of commerce, and municipal councils. 21 By lhc end of 18.H. 27 caisses had been founded. But the mosl active period of foundation oceurred between 1834 and 1837, when 244 new caisses were organized.22 By lhe end of 1847 there were 354 rnissc's in operation. with 175 branch offices. 23 Among socihes t111011ymes authorized during the period 1815-20 were four in lhe mining and metallurgical sector: lwo coal mines (Decize and Monlrelais) and two metallurgical companies. the Mines de Fer de Saint Etienne, which proposed lo install coke-operated smelling furnaces. and the Forge du Bas Rhin. The report of lhe engineer who investigated the Monlrelais coal mine argued against lhe au1horiza1ion of any eoal mine as a socihe mw11yml' on the grounds lhal this form of organization lacked lhe spirit of conservation and foresight in ils mining methods. was incapable of prompt and concerted action, and was 1101 responsive lo official regulation lo the degree obtained when the concession was in the hands of the proprietors of the lopsoil.2~ The operation of a mine by a societe lmonyme would be "slow, incoherent, and without any guaranlees." 2:; He concluded thal these disadvantages outweighed lhe advamage of lhe larger capital lhal could be raised by an a11011y111e. 2'1 Another a11011yme authorized during lhc period 1815-20 was the

125 J

The R, .. c of the Socict,· A11011yme. 1815-1833

1mport:mt ~t:mufacturc .. de Glace .. ct de \'cm:" de Saint-Quirin. :m cntcrpri .. c dating back to the ,mci,•11 rt·gim,·. Thi" cntcrprbe. the tir ..1 amhori,cd under the re .. toration. \\ a.. \\ holl) O\\ ncd b) four indi, idu:,b \\ ho li,tcd :,., their moti\·c., for reque .. ting :1u1hori1:uion the .. dc .. ire to ., ...,urc the continued cxi .. 1c111.:e and ,ucce"" of their cnterpri .. e. to facil11a1c it" tr:m .. mi,.,ion to their heir-. and to mainrnin in .. ofor :,-. pth,iblc: the 0\\ ner.. hip :md admini .. 1ra1ion \\ ithin tht:ir familie ... to retain unit) or 111an.1gcmen1 and -.implit:it) of .idmini .. trntion. \\ hilc: a\ oidmg the danger, or a large number of ,1ockholder...... " 27 Another moti\C gi\en \\'as the dc .. irc of one of the (mncr... Baron Pierre Loub Rocdcrcr. a memhcr of the Napoleonic Scn:llc-the reque .. t for authori,ation w:1, in .. titutcd hcforc the fall of the empire-not to sec hi-. name imohed in litigation before the commcrl'ial tribun:11. 2 The 0\\ nen, took the chaner of the Fonderic!'> de Romilly. authorized in I 808. a, their modcl. 2!' The divi-.ion or the capital of thi .. enterprise \\a, indic:lli\e of the dc,irc to rct:1in family control. The capital of O\Cr 2 million franc!'> \\a" di\·ided into four .. h.irc:-.. each share being ,ubdi\·idcd into I\\Che ,·011po11J. Each co11po11 had a nomin:11 \·:,lue or .i2 ,000 franc:-.. Altogether. thiny-two rcgulm .wt'i,•tc•s """"·'·111,•.,·. twenty mutual m,unmcc of b.mkers gained conce:-,:-,ion, to :-,uppl) 1he c.ipi1.il on 1he ba:-,i:-, of competiti\'e bidding. 1he key fc.iture being the r.11e of m1ere!,l the com pan) \\ ould .iccepl. for example. 6 percent for the C.in:11 de ~lon:-,ieur and 5.1 perl·enl for 1he Burgundy Canal. 3 ~' The companie!, lhen tlo.ited bond!, 1ha1 entitled lhe holders lo fixed annual n:1urn ... and amor1i,a1ion in forty-li\·e year!>. In addition 10 1he bond:-,, 1he inili.11 :-,ub:-.criber:-, rcl·ei\·ed for each :-.hare a partieipa1ion !>hare (action dt• joui.ucmn•) 1ha1 en1i1led the holder:-, lo h,itr the net n:turm. from lhc can:1h for a number of ye.ir:-, (ninety-nine for lhe C.mal de Mon:-,ieur and fort) for 1he 01hers). to begin .ifler the bond:-, had been amortized. The bonds and th1..• participalion 'ihare!> were negotiated ,eparately on 1he Bour,e.:rn Work on 1he can.ib progre!>sed !>lowly. being lini,hed only in 1hc early I 84(h. The method of government con,trul·tion and pri\·,11e linanl·ing \\'a" critil·ized 1hen ,md later. on the one hand by tlw,e \\ ho .id\'ocated pri\·,11e l'On!>lruction and financing. and on the other by tho!>e \\ ho wanled slate con!>lruction and finanl·ing. Had the credit of the gO\·ernment been better. the hiller alternative alnW!>l l'ertainl) would have been adopted. Fran1.:e·, lir!>t three rnilrn.1d companie~ adopted the ammyme form. The tiN. in 1824. wai- for the 1wel\'e-milc line from Saint-Etienne to TABLE 2.4 Large Canal Companie!>. 1821-1833

Compcmy

Canal de Mon,icur ( Rhone to Rhine) Cunul from Arie!> to Bouc Burg,undy Canal Ardcnnc.., Canal Due d'Angoulcmc Canal (Somme) Comp11n) of Four Canali- (Loire Lait1i?n1l. Brimmy. Berry. and Ni\:crnai~ can.11!>)

Yt•ar

Initial Nominal Ct1pitt1li:.lllio11 ( Frtmt·s)

1821 1822 1822 1823 1823

10.000,000 5,500,000 25,000,000 8,000.000 6,600.000

1823

68.000,O

1301

Joi111-Strn:k Enh:rprise in France. 1807-1867

Andn:1.ieux on the Loire. capitali1.ed at I 111illio11 frmH:s. The line from Saint-Etienne to Lyon, authori1.cd in 1827. and two years later the Loire railroad connecting Andn:,ieux to Roanne were intially eapitali,.ed at 10 million franc:-. each. All three or these line:-. werL' industrial lines. primarily for hauling rnal. and locally raised capital provided most of the financing. Also organized as e11w11_,·11u•s were thirteen steamship eo111panies to provide for the transport or passenger:-. and men.:handisc on the rivers and coast or France. The government authori1.cd the lirst. 'lhmsports An:ch:rL'S par Eau. dc:-.igned to provide service hetween Paris and Le Havre. in 1822. The mortality rate among these companies was high. For one thing. the stea111hoat was still in an experimental stage. The ill-fated Compagnie de I:, Navigation du Rhirnc par la V:1pcur, orga11i1ed hy a merchant or Lyon, Gaillard-Malb.icux. was authorized

TABLE 2.5 Large Metallurgical Enterprises. 1821-18.D

Comp,my Fondcrics ct Forges de la Loire ct 1' lscre Forges d'Audineourt Hm1t:,; Fourneaux ct Forge:,; de Pont Kallcell ct Mines de Quimpcr Houillcrcs ct Fonderic de I' A vcyron Mine:,;, Forges ct Fondcric du Crcusot ct de Ch:ircnton Forges ct Fondcrics de lmphy Fondcrics ct Forges d'Alais

Datt' of A 11thori:ario11

/11itial Nomi,wl Capirali:.ario11 ( Fra11c.\')

1822 1824

1.200.000 4,500.000

1826

1,700,000

1826

1,800.000

1828

10,400,000

1829

4,000,0(X)

1830

6,000.000

The R1,c of the Sol'i,·t,· A11011_r111,·. I 815 I 833

j 31

J

m June I 8.:!6. In ~lan:h I 827 a hoilcr e,plo,ion dc,trnyed it, lir,t ,temmhip. /.,. Rlui11,·. on her maiden \o)agc. Guillard-Malc1icux, Jlong "ith the ,hip', dc,igner and the prim.:ipal ,tocl,.holder,. peri,hed m the di,a,ter.:i, Among mining and metallurgical cntcrpri,c,. 1110,1 of the largc,t iron-producing hrm, ,melting "ith coi..e adopted the mwm·m,• form Uahlc 2 .5 ). The capital n:4uin:mcn1 v. a, l,irgc. c,pccially hc in Limoges and Reims in 1831 to replace discount institutions that had dis.ippcarcd. Of the nine other such banks created. none employed the a11011yme form.'17 The Conseil d'Etat refused to authorize the Socictc Commanditairc de l'lndustric. the only important bank to be projected during this period. An investment bank. the Socictc Commanditairc was to promote industrialization by providing long-term capital for new enterprise. The founders. led by Jac4ues Laffitte. included prominent French and foreign bankers. industrialists. merchants, and influentiul politicians and nobles.~" Its proposed capital of I 00 million francs would have made it the largest enterprise in France. The first 50 million of its capital. divided into 5,000 registered shares of 5,000 francs and 25,000 bearer shares of 1,000 francs, had already been subscribed by the founders. and transactions in promises for future delivery of shares (promeJses d' actions) at a premium were already taking place:!!' Although Villcle. the chief minister, reputedly favored this enterprise, it evoked considerable apprehension among other government officials. According to a contemporary, M. A. Jullien. the Conseil denied authorization because of (I) the presence of foreign banker!'. among the promoters. including Baring of London. Hentsch of Geneva, and Bethmann of Frankfurt: (2) the large size of the capital; and (3) the potential degradation of the nobility involved (e.g .. Talleyrand and the Due de la Rochcfoucauld) through association with bunkers and industrialists. 50 Had the founders been willing to exclude the foreigners, reduce the capital to 25 million francs. and .accept two commissioners l.lppointed by the government. with the power to veto

The Ri,e of the S0cit 1t• A11011y111t·. 18 I 5- I 8JJ 1

IJJ I

an) opcrnllon. 11 appear, lil,,.cl~ th.it au1hori1.11ion \\tmld ha,·e been granted in I 826. Uut b) then. "' Bertrand Gille ,ugge,1,. the depres,ion that h.id begun al the end of I 1'25 had undoubtedly rnoled the ardor of the promoter,.:,i The rdus:1110 authorite thi, bold innovation. a gener:11io11 before the creation of the Credit l\tohilier. ,1mngly support, tho,e ,, ho ha,e argued that the Conseil eil d'Etat. In some in,tances the mini,tf)' simply rejected .a rcque!>I ,vithout further proce.,.,ing. on the grounds that the proposal did not meet the major n:quircmem, for a .wci,•re ,11w11y111,•. Or the drnft charter might be returned to the promoters '" ith specific sugge!>lions on revision 10 meet the requirement, for authoriwtion. Another cour!>e \\ as !>Ubmission 10 the Con,eil d'Etal of the rel. along with the report of the c/uf cit• lmrc•,111 (ra1111or1 ,111 111i11i\11·,·) ,ugge,ting '" 1ml changes ought lo be required in the charter. The ministry's suggestion, could be either ignored or adopted by the Conscil and enforced upon the promoter-.. The rnini,1ry did 1101 ah, ay, pa,,i\"CI) confine it,clf lo applying the criteri.i laid dov, n by the Com,eil. h could .md did ,ugge!>I new dcp.arture,. v,hich. if accepted by the Con,cil. hccame pan of the udmini,tr..lli\-c "jun,prudem:e." On one impor1:1111 occ.r,ion it ~uc~·e~!>fully

°'"

[36)

Joint-Stock Enterprise in France, 1807-1867

opposed the attempt of the Conseil to limit the use of the a11011yme form to large enterprises of .. public utility." Had the ministry not been successful, there might have been far fewer a11011ymes. On the application for authorization of the Compagnie de la Verreries de Thuison, whose capital of 210,000 francs was represented by twenty-one shares of I 0,000 francs, divided among six shareholders. the Conseil d' Etat attempted to limit further the use of the societe a11011yme. In its advisory opinion of 5 August I 825, the Conseil concluded: It would greatly extend the privilege of the soc·it;te mw11y111e to apply it to associations whose object!> were commercial operations on a limited scale or whose capital requirements were small: the authorization of the crown is required to establish them: public officials sec that they observe the terms of their charters; the stockholdcri; of these companies are assured that the capital represented by their shares is the only guarantee afforded to third parties in commercial operations. whereas all other types of business organization offer more extensive guarantees and the po!>sibility of suits by a creditor against the debtor. All these considerations have led to the conclusion that the government must reserve the privilege of societes c111011y111es for companies that have as their objc1:ts the creation of establishmenti; of public utility and that require the amassing of large sums of money: thus, the exploitation of mines, the opening of canals. and the founding of other companies whose public utility is demonstrated. which require the raising or large sums. attracting funds from persons unconnected with business and attracting erstwhile unproductive funds to industry. appear to attain the object of the law for the founding of .wcicifcis a11011ymes better than the operation of a faetory or a glm,sworks. 5n

Then, taking note of the small number of shareholders. the modest capital and limited operations of the enterprise, the Conseil concluded that these appeared to be sufficient reasons ··to require the enterprise to assume one of the ordinary forms of business organization which confer a greater liability on the associates for their acts." The ministry objected that the Conseil's proposal ··contained divergent principles from those that have been followed until now"; and on the orders of the minister. Count de Corbicre. the ministry submitted the matter to the Conseil General du Commerce for its opinion. 57 The Conseil General du Commerce came to the aid of the ministry, unanimously rejecting the contentions of the Conseil d'Etat: The proposed limitations arc not precise. To explain the concept of c•stablishmellfs of public uti'lity, the author of the proposal limits himself to citing

The Ri~eof1heSocit•u•A11011ym. onl'. llll1'1 ,·,ir) acl·ord111g lo lhl' loc;llil): a ,um lhal ,q1uld appl.'.'ar :-.m;1II for Pari:-. ,, mild he l.1rgl' m lht: dl.'.'partml.'.'nh ,,ht:ri: ind11,1r) ,,a, ll':-., ,,ell Jl•wloped. Bui. l'\l'll m P,m,. 11 ,,ould hc l.'.llll\t:nil'nl oflen lo aulhorill' :1 .mcic•t,· ,1111111_\ me• foundl•d ,, i1h a ,mall cap11:il. If. f,ir t:\.1111ple. ii invoh c, allcmpling ,1 n.:,, prtll''-'"· ... ,,ould lht: promolcr, he fon:cd 10 form a .wcic•te en , 11111111,111,li1,··.1 Thi, ,,ould changc lht:ir ,1a1u:-.; 10 forcc lhl'm lo conlinc 1hcm,chc, 10 a ,·,1111mm1ditc ,,ould rl',1ric1 1hcm from all p:irticip,uion in lhc d1rl'1:t11in of lhc l'nlcrpri,c and a, a rc,uh could c:m,c lhl'm 10 rcnouncc it. Thi.'.' propo,al dc,1gn.11c, a, .i 11ri1·ilt',~t' lhl' au1hon1a1ion giwn lo a .wcic•tc• ,1111111_\IIIC'. Thl•rc \\Ould hc a ,,ri,·il,·ge onl) in lhl' c,c111 of an l'xdu,i,·c concc,,,on of a hram.:h of indu,lr). Thi, lhc gO\crnllll'nl of thl' King will a .... urcdl) nol granl. If thc ,hJrcholdcr, of a .wt'iC'tC' ,mo11_\'lm' ;1rc Iiahlc onl) for the \';ilue of 1he1r ,hare,, ii ,, lhc ,amc for lhc co111111,1111/itain•.\ of a .mcic•te c•n ,·0111111,1111/it,·. II i., trut: 1hat lhl' co111111,111clitc ha, unlimill.'.'d liahilil). bul the soci,•tt' ,1110,n-,,,,• ofk·r, 111 1hird p.irtie, a guarantee lad.ing in all 01hcr form, of hu,inc" 11rg,m11a11on. 1h;11 of 1hc puhlicil) of i1, a1:coun1, and of i1, opcr.11ion,. In lkt:1dmg on rc4uc,1, fur authori1;1tion of .wwit·tC'.\ 1111011_\·mc•.t. 1hc go\'Crll· mcnl lun1:11oni. a., a JUr). 11 dcl'idc, according 10 1hc partil'ular circum,1:incc, ol ca..:h rc4uc,1 and no gcncrJI mlc can he c,tahli,hcd 10 ,en l' :1, a t'la,e for 1ho'l' dcl."1,1on,. ·••

In 1hi, contlit:1. 1he minis1ry wn, p:inl} vic1oriou.,, The Compagnie de l:i Verrcrici. de Thui,on wa~ au1horized. hu1 capilal wa., raised lo 400,000 franci..:. 11 Allhough 1he Con.,cil d'E1.i1 g.ive way. ii did nol renounce 1he \ icw, ii had ,c1 forlh. II con1inued 10 rcg.ird incorporn11011 a~ a prfrih•g,·; i1 com inucd IO apply.•11 lea~, impliei1ly. 1he concepl of p11hlit' utility; and ii generally \'iewed wi1h a jaundiced eye any enlerpri"'e \\ ho--c c.ipi1al wa., ~mall. Funhermore. 1he Con.,eil rcg.irdcd wnh 11u,picion all promolcr. \\ ho were 1101 well-known or well-e~lahli.,hed member., of 1he hu,inc.,1, communi1y. In 1828. 1he Con~eil d E1:i1 C\prc.,.,cd ,imilar ..en1imen1~ in ii~ opinmn on a re4uc ..1 IO au1hori1c 1hc Moulin de., Tuilcrie~ of Toulou!le, ca.pi1al11...cd al 240.(X)O franc,. Thi, \H1, ~1 p:irtncr~hip who,e proprie-

i,.,

0

138)

Joint-Stock Enterprise in France, 1807-1867

tors wanted the mw11yme form to facilitate the transmission of their enterprise to their heirs. The Conseil d'Etat, noting that it was not a new or large enterprise and needed no additional capital. that other organizational alternatives existed. and that "the legislator. in permitting the creation of enterprises enjoying such great advantages, aimed 10 encourage. in the public interest. large industrial enterprise requiring the amassing of large amounts of capital and requiring to some extent the gathering of funds from the public." rejected the request.'"' According to the Conseil. it was for the government "lo judge in each particular case the necessity, or at least the utility. of employing this form of business organization." 111 Although the Conseil d'Etat and the ministry subjected each request 10 a careful and detailed considerntion, the role of the prefect in the authorization process tended to be proforma. Required hy the i11structi011 of I 8 I 7 10 render an opinion on the utility of the enterprise and the character and substance of the promoters and shareholders. the prefect usually discharged his duty in a perfunctory manner.r. 2 Rarely was the prefect's report unfavorable. More often. the prefect strongly advocated the authorization of the enterprise and frequently, particularly outside Paris, inquired on behalf of the promoters about the status of the project during the long process leading to authorization. It can be assumed that the prefect was often on friendly terms with the promoters. His duties as the government's electoral agent required him to be interested in how they voted, and it was only logical that he should become an advocate of their interests. However. the prefect was forbidden from holding shares or participating in any way in enterprises organized within his jurisdiction. Because they tended to be pro forma, the prefect's recommendations were not given much weight either within the ministry or by the Conseil d'Etal. The prefect served primarily as an intermediary. channeling documents and information between the founders on the one hand and the ministry and the Conseil d' Etat on the other. Until the 1820s. it appears that chambers of commerce were consulted frequently on requests for authorization. The minister of the interior wrote the Chamber of Commerce of Paris in I 8 I 8 that the ministry valued its opinion on projected enterprises and that the advice of the chamber would continue to he solicited. as in the past. Therefore. he regarded as superfluous any provision requiring the adminis-

The Ri,e of the Soci,•r,• A11011y111e. I 8 I 5- I 8J3

IJIJ J

lralhlll tocon,uh the diamher.';:i In ,pile of thi-. a,,uram:c. con,uh:1tion of chamhcrs of l'Olllmen:c on rcque,t, for authorit:llion occurred ks!. frequent!). \\'hen the) were l'Oll!o.Uheterial imTnll'Tion of 1818 concerning the duration of :111 enterpri,e. m:mt shares i!'>sued by Pari!'> companies were hearer sh.ires. ,, hich were more popular in Paris than el-.e,,here. The ,.imc r;.mgc of par value!'> for !'>hares prevailed in the re_,1 of France. These figure!'> com:erning co111111wuli1,•.\· f'tll" actions arc for registration ... ; it should not he assumed that all of them became operating cn1crprise". ~1any were Millhorn because of failure!'> to raise suflicien1 rn('ital to ~gin opcra1inn. Some double counting is involved. for ,ome comJlnnics were rcgi,tercd al more th.in one commercial tribumd. The Jlr committee than for the lawyer-dominated go\'emment commi .... ion. The l·ommittee began b) deciding that the co111111,111clirc• par acrio11s \\21~ not only u,cful but nece .... ary for the development of French indu,tl") and that. "ithout gra\'e incon\'enience ... its place could not be taken by the sociere ,111011.,wC'. According to the committee. the !>trength of the co111111a11clire par acrio11s lay in it'> freedom of foundation. the e,clu .. i\e pm\er of the g,;rallf to admini'>ter the enterpri'>e. and the pcr..onal liabilit) of the gera11r. The!o>e qualitie~ were not to be found in a soC'it•te a11on_nm': The socit·tt• w11mrn1t' doc, not ha,e unit> of direction. pcr,onal liabilit}, ,ind direct and pcr-,onal intac,t in it1,, admini,tration. It ha, been ,aid. "ith rea\tm, that the bu,inc" of e,cr)one "the hu,ine" of no one: com,equentl), II ha, not been unu,ual for ,omc entcrpri1ie11. "hich combined all thc nccc,,ar) rc4u1remcn1, tor ,uc.:ce". to ha,e tailed hccau,c of the ,ice, inhcrcnt in the l/1(

lt'lt' ""'"'·'"'"''.

If an cntcrpn,e i, ,uhJcct to unforc,ecn accidcnh. to the apf)\!arance of frc4ucn1 d1ftic.:ul11e, that re4uire prompt dcci~ion,. and if thi, enterpri.,e i, hmdcred in e \Cl) m,tam:c h> the nccc.,.,it> for and 1,,lm, nc,!> of di,cu,,ion. it 1, doubtful 1f ,uch an cnterpr1'e c.:an pro,pcr. 1 "

Then. knowingly or um\ ittingly. the committee repon echoed the famou .. pa.. ,age in Adam Smith on the limitation of joint--.tock compamc,: The 1ont·t,· tm,111.nPlt' ,, ,uited onl> for "mple opcrauon,. tn\lll\ ing a ,ingle bu,me ..., that. om:e e,tabh,hed, ..:an operate ca,il> and "ithout diflicu It). It ,, atll,,c a.II ,u11ed to large cntcrpn,e, ol public utihty. ,uch a, hr1dgc,. canal,. r:i+~rnttth. etc: . \\h1c.:h call for million, for their e,crntmn. long )C,ar, to he completed. and ~k. a., the price for their cnormou, out la>, concc,,ion, la,ting '-0 or 100 )Can,, h1r thc,c cohh1,,al cnterpri,e,. II \\ould he d1ffic.:ult ltl lind a IMil,f1 nt.h cnuu~h to ofter 11 ,enou, pcc.:un1a11 hJb1ht) and bold enough to

uAJcnae

11

On the other hand. for a f11..:tor). a nldnufactunng concern. a commercial or 1Atiu,1nal c,tabh,.hmcnt. "h1ch facca. mce,.i,ant compc111mn. frunful and r,tfilld den,1on, arc re4mrl.'d _ For all operation, rc4umng ,pontancit) of actmn J•Ad freedom of 1110,emt.'nl, 11 1, to tht.· (t1111m,m,li1,• that one w 111 tum b) prctcrcncc ~

(62)

Joint-Stock Enterprise in France, 1807-1867

It was necessary. the committee argued, for commercial law to take account of social attitudes and institutional arrangements peculiar to France. The joint-stock company was more important for France than for England, where large fortunes were concentrated in the hands of a landed aristocracy, and where fortunes accumulated in industry remained invested there. In contrast, French landholdings were small and fortunes accumulated in business were diverted to acquisition of land. In England one or a small number of individuals would put up the capital for an enterprise; in France, recourse to a large number of persons was necessary. 40 The committee agreed with the government that grave abuses existed in the commandite: What is taking place before our eyes? The promoter of a company alone, or with a small number of associates, drafts the charter. He evaluate!> his contribution at an exaggerated figure. He stipulates in the charter excessive privileges for his own profit. All the shares arc subscribed by his creatures. He carefully picks a well-known banker for the enterprise. placing it, to all appearances. under the bank's patronage. He publishes the prospectus and numerous advertisements. Talk and publicity at any price are essential. for they produce a handsome return. The seduced shareholder comes running to subscribe, only to find all the shares taken, but he is allowed to acquire some at a 25 percent premium. Ask him what he has bought, the name of the gerallt, the type and nature of the enterprise, and he doesn't know. He knows only the market quotation and dreams only of what that quotation will be tomorrow. In this manner a contract. which is collective in nature. comes into being without examination, discussion, or challenge. 41

The committee proposed to remedy these and other abuses by restrictive legislation. 42 In order to prevent the fraudulent promotion of commandites by gerants without substance, the gera,u would have to furnish at least 10 percent of the capital to be represented by inalienable shares. The shareholders were also to be given a role in determining the provisions of the charter. Before the company could be formed, the shareholders were to meet and deliberate on the definitive draft of the company's charter. The services of a notary were to be required. A council of surveillance was to be mandatory for every commandite par actions. This council, chosen by the stockholders, would verify the accounts of the enterprise (though it was enjoined from participating in management of the enterprise); the council also possessed the power

The Rise of the Socit'lt' t'll Comnumditt' par At·tio11.\·

I63 J

to convoke a !ooh'k:kholdcr!oo · meeting for the purpose of dissol\'ing the enterprise. Bearer shares and !ooharcs of small dcnominationll were to be prohibited. SharC!oo had to be in dcnomination!oo of at least 500 francs for companies with capital of 100.000 francs or more. and 100 francs for comp~mics whose capital was under 100.000 franc!oo. No di,·idend!'t could be paid except from \'erificd prolit!oo, a provision that the bill also extended to sociites c111011ymt•s. Finally. penal sanctions were provided for violation of the bill's provisions. As could be expected, both the government and the committee bills provoked considerable public reaction. Funhcr to confirm oftkial fears. the trial of the promoters of the Compagnic des Minell de Saint-Bcrnin ct de Saint-Leger in the summer of 1838 dramatically exposed to public attention some of the typical abU!o.CS in the co111111mulitt• par llctio11s. ~:, The company was organized in July and August 1837 by Auguste Cleemann. a Parisian banker who was interested in a number of other .wcietis t'll commmu/itt' par actions, mostly Paris publishing companies, and by David Samuel Blum. an iromm1ster from Dijon. The names of neither Cleemann nor Blum appeared in the by-laws of the company. although Cleemann's younger brother Loub was designated the sole gh-a11t of the enterprise. u Blum acquired the mines in 1835 for 800.000 francs and claimed to have invested .347 .000 francs in improvement!i, undoubtedly an exaggerated ligure. (The propeny had changed hands in 1828 for 110.000 fr,rncs. though it was claimed again that l!Cveral hundred thousand francs of capital improvements had been made between I 828 and 1835.) The mines ,,ere turned over to the commcuulitt• in exchange for 3,500 !!hares having a nominal value of 3,500,000 francs. a value that the plaintiffs claimed to be exaggerated. These shares were divided equa.lly bcl\\cen Auguste Clecmann and Blum. The company was capitaliL.Cd at 4,500,000 fomcll. rcpre!icntcd by 4.500 !'.hares with a nominal v3luc of 1.000 fram.·s.~·'> Because the gira11t. Louil! Cleemann, hsd ~ub~cribcd 100 shares. the prospcctU!oo and ad\'cniscments claimed thet only 900 shares ,.,ere offered for public subscription: in fal·t. hm,e,er. Auguste Clccmann sold I, 150 of hi, I. 750 shares and Blum all or most of hi,. Publicity for the promotion was placed in the hands of a M. Jm,tin, 1 pioneering advcnii-ing mun who!tC service~ eventually cost the com-

(64 I Joint-Stock Enterprise in France. 1807-186 7 pany about 40,000 francs. Justin located for Cleemann a mining engineer, Theodore Virlet, who journeyed to the site of the mines in Saone-et-Loire and wrote a highly favorable report on the prospects of the mine. for which he received 500 francs; he received one share in the enterprise in addition. for the right to publish his report. which enjoyed a wide circulation. He also became the chief engineer of the mine at an annual salary of 6,000 francs. Justin's publicity campaign was well organized: advertisements appeared in the major Paris newspapers and throughout France, excepting only the area in which the mines were located. These ads often carried Virlet' s entire report and the ubiquitous rosy view of the present state and future prospects of the enterprise. To Justin we owe the slogan "La houille est la pain de l'industrie." The prospective shareholders were told that the coal was of superior quality (it was not} and that a production of 3,000 to 4,000 hectolitres a day was assured within a short time. Production costs were estimated as assuring a profit of forty centimes per hectolitre: further. the mine was placed advantageously close to the Canal du Centre. The prospectus. of which 2.400 copies were printed, contained an illustration of smoking chimneys and a railroad. which actually depicted the nearby mines of Blanzy. The campaign netted about 2.000 shareholders. mostly small investors holding one or two shares, at whom the subscription campaign was obviously aimed. As an added inducement, the shares were to bear interest of 5 percent:rn Auguste Cleemann. representing himself as personally disinterested. wrote to potential shareholders claiming that extraction was 2,000 hecolitres a day (it was actually around 400). To a Nimes banker, he estimated that the shares would yield 8 to 10 percent a year. In fact, the main pits of the company. those of Saint Charles. either were threatened with cave-in or had begun to cave in while the shares were being sold. Whatever might be said about these practices, were they illegal'? The Tribunal Correctionnel of Paris decided that though the lies and exaggerations of the prospectus were immoral. they were not illegal. The court applied this same judgment to the other actions of the promoters. who were acquitted. Only some of the original plaintiffs appealed to the Cour Royale of Paris (the plaintiffs had had to bear the costs of the first trial. plus expensive lawyer fees), which. after a

The Ri~e of the Soci£'h' £'II Commmulite par Actions

[65 J

lengthy trial. decided on 22 Augu~t 1838 that Blum and Auguste Cleemann were guilt) of ~windling. ~entenced each 10 three ye.irs impri!,onment and finei. of 3.000 francs. and ordered restitution to the plaintiff!, of 324,000 francs plus 32.450 francs interest. The two men !led before the) could be taken into c.:ui.tody. They were unfor1um11e in that they were tried in the i.upercharged atmosphere of 1838 when abui.ei. in the £'0111111mufite had aroused so much interest. In calmer time,. they might well ha\'e been acqui11ed. In fact. they had done no more th.m many .mother promoter. Opponents of the co11mu11u/iu•. ho\\ e,·er. foiled to profit from this confirmation of their dire pronouncements. The 1838 i.e!,sion of the legislature ended. while the Saint-Bcrain ca~e wai. ~,ill being tried. without the two bills being considered. Under the circumi.tances. this neglect might appear surprising. It has been as,ened that the hrn,tility of the bu!,iness community inside and outside the Ch.1mber 10 both bill!. caused them 10 be droppcd.47 Another explanation ad\'anced is that the pass.1gc of either bill \vould ha\'e necessitated liberali1ing the fom1ation of societc•s c111011yme.\-. 4K Neither of these explanations is satisfactory. The busine~s community wu~ not united. and a \'ersion of the comminee bill easily could have been p.ii.sed. The real explanation wm, that the session of 1838 was mar"-ed by biner political quarrels between Count Mole. head of the go,·ernment, and the leaders of the opposition, Adolphe Thiers. FranlrtJLlurei. with pri\ ate companie, laying the rail,. providing the l11u11not1\C of the concession of the ParisLe Havre Company. au1hori1.ed in 1838. \\ere quite unfavorable: the compan} surrendered its concession in 1839 after failing 10 raise its capital of 90 million franes. 2 The depression that began in 1839 greatly reduced the availability of capital. James de Rothschild apparently declined 10 accept the stringent conditions for the construction of the !'!ord R~1ilroad in 1843. delaying the beginning of that line for two }ears. 3 Only in 1845 did the requirements of the government and the expec1.11ions of promoter, combine 10 produce the authorization of eleven companie., capi1ali1.cd al over 500 million francs (table 4.3). The gigantic sums involved transfonned the nature and scope of the French !'>ecuritie., market. Thousands of new invc!'>lon,. who had never before owned a share of stock. joined in the rush for railroad shares. The Nord Railroad Company. finally formed in 1845 under the aegis of Jame-. de Rothschild. wa .. capitali1.ed al 200 million francs, which made it the large~! joint-stock company ever created in France. The

TABLE 4.3 Railroad Companies. 1834-1846

)ear

N11111b,·r

Initial Nominal Capilllli:.a1io11 ( Francs)

1843 1845 1846

11 3

6,000,000 19.250.000 180,000,000 36,000,000 6,000,000 40,000,000 554,500,000 370,000.000

Total

27

1.211. 750.000

1835 1837 1838 1840

3 5 I

UUI

2

[70)

Joint-Stock Enterprise in France, 1807-1867

Paris-Lyon Company, authorized the following year, was also capitalized at 200 million francs. The advent of the railroad age produced some liberalization in authorization requirements, although the Conseil d'Etat initially attempted to force railroads to meet the stringent conditions required of other anonymes. In considering the charters of the Paris-Orleans and ParisLe Havre companies in 1838, the committee of commerce of the Conseil d'Etat rejected the provision that the shares of the companies be negotiable after 25 percent of their value had been paid in. The committee voted to require that the shares could not be negotiated upon the Bourse until fully paid up. The companies apparently convinced the minister of commerce, Martin du Nord, that negotiability of shares after 25 percent had been called was essential to the successful promotion of the companies. When the charters of these companies came before the General Assembly of the Conscil d'Etat for final action, the minister personally presided. But in spite of the minister's hope for a reversal, the General Assembly voted to uphold the decision of the committee, which conformed to the established jurisprudence of the Conseil. Much to the Conseil's surprise. its decision was overruled by the Council of Ministers, and the authorizing ordinance signed by the king gave the companies what they wanted:1 Reversing a decision of the Conseil was a rare occurrence, and the action had the effect of establishing a precedent to be followed by the Conseil for the shares of future railroad companies. The government also overruled the Conseil by allowing interest of 3 percent to be paid upon shares of the Paris-Roucn Company, authorized in 1840, during the period of construction. 5 Because this interest would have to be paid from the company's capital, it was contrary to one of the Conseil's most cherished precedents. According to A. G. Aube, one of the rare businessmen ever to serve on the Conseil, it was difficult to convince the Conseil that the companies could not be successfully promoted with0ut these provisions. 11 The normally omnipotent Conseil discovered that, in face of the railroad interests, its jurisprudence had to give way to the realities of the marketplace. The insurance sector also grew rapidly during the period 1834-46. Sixty-six companies were authorized, most of them during the boom years 1836-38 and 1843-45 (table 4.4). Thirty-eight companies, capitalized at 47 .2 million francs, speeial-

The Socit•ft• A11011ymt• in the Railroad Age

171

J

iLed 111 marine in,urance. Half \\ere founded in P~1ri!'I, "· ith Le Ha,·re (nine) ind Bordeaux (sewn) accounting for mo!'lt of the other!'.. Many \\ere , were gread}' expanded hy a provb.ion in it!-. chaner allowing it lo issue longterm bond, up to 600 million franc!,. However. when the Percirc5 decided to talc .idvuntaie of thii; provi!-.ion in 1855, the government, hn"'rni to ho,tile critici!-.lll, forced them ln cancel their plans. Even "ithom thi, re,ourcc. the Credit l\lohilicr. during the founeen years of u.,. e~...rence under the Pereires. enjoyed a meteoric career hefore

(86)

Joint-Stock Enterprise in France. 1807-1867

succumbing to the blows of its political and banking enemiesY The Comptoir d'Escompte de Paris, authorized in 1854. was the lineal descendant of the semiofficial Comptoir National d'Escompte created in Paris, in the wake of the depression and Revolution in 1848, to restore commercial credit gravely compromised by the disappearance of a number of discount banks and by the restrictive discount policies followed by those that survived. The comptoir was only one of many created under the terms of the provisional government's decree of 7 March 1848. This decree provided that a third of the capital of these banks was to be subscribed in specie by individuals. one-third by the city where the comptoir was located. and a third by the state, with the shares of the city and state in the form of municipal and state bonds. Only two signatures were required for discount (or one signature and a warehouse receipt, in the case of tangible goods), rather than the three required by the Bank of France. The Comptoir of Paris was founded the same day the decree was issued. Others quickly followed. By the end of May there were forty-four of them: eventually more than sixty were created. 48 These comptoirs played an important role during a difficult time. but most of them disappeared when the crisis was over. When the guarantee of the state and municipalities was withdrawn, the Comptoir of Paris reconstituted itself as an independent enterprise in 1854, dropping the appellation ··National" from its name. 49 It soon ranged beyond discount activities, engaging in a wide variety of promotional ventures in France and abroad and also in the government loan business. 50 The Credit lndustriel et Commercial-the victim both of bad timing connected with the downturn of the business cycle and of the hostility of the bureaucracy-was authorized only after several unsuccessful attempts. Originally projected in 1855 by a group of English bankers headed by William Gladstone, an Englishman who had been interested in French railroads since the 1840s, and Armand Donon, a French banker, the bank was to have been modeled on the English joint-stock banks. It was planned as a commercial bank specializing in interestbearing deposits, checking accounts, the discounting of commercial paper, and short-term loans on the security of merchandise or negotiable securities. 51 The project was well advanced when it received its first setback with the government's decision in March 1856 to authorize no new joint-stock enterprise for the rest of I 856. 52

The Sodt·tc A11,111ym,· in the Railroad Age

187)

B) the end of 1856. a ,econd projel·t. under the title of Srn:ictc lmpcri.ilc de Credit Commercial. ,, a, elaborated. but ,, ith the !'>l'ope of it, operation, extendl·d 10 indude promotional activity. The Con!'>eil d'E1.11 rejel·ted thi!-. propo\.il on the ground\ thm the b.111k combined too man) imprecise operntions. The Conseil also refused to con,idcr for au1hnri1a1ion an inwstmc111 b.mk projected by the h,1111,, bcmq11C'. the Comptoir Imperial des Trn\.1u:-.. Publics du Commerce ct de l"lndu,tric. dedaring its founding untimel).:,:i \\'hen Gladstorn: and Domm protested the Conseil"s .1ction. it reaftirmed it\ position. adding that if the Socictc Imperial were m1thori1ed. there ,,ould be no ground on ,, hich the Comptoir Imperial could be refused.:.~ This might ha\'c been :-.ufficient 10 discourage the promoters. but the ptrncrful Count de Morny \\ as in\'ol\'cd in their project. and the promoter!'> were as,urcd of the benc\'olcnt altitude. if not yet the active ,upport. of Napoleon Ill. A third project. for a Socictc Internationale de Credit Commercial. was immediately elaborated. but it:. operations ,,ere to be limited to tho,c cn\'isioned by the fir~t project. in order to ,ati,fy the criticism of the Conscil d"Etal concerning the bro.id :-.cope of operations. To Donon and the English bankers were added additional French intcre,ts. p.1rticularly the Saim-Simonian Frnm~·oi:. Barthelemy Arlc:\-Dufour. and a group of German banker... Half the l'apital of I W million fr.me, had bel·n !-.Ub:-.cribed. one-third by ead1 of the Engli,h. French. and German founders. For rea:-.ons that arc not clear. thi, project rested in abeyance for about eighteen months. lo be rc\-i\'cd at the end of 1858 when the emperor ordered that authori,allon be expedited_:,:; In vain did Mini .. 1cr of Commerce Rouher .1ddress a conlidentiul le11er to Napoleon Ill. mternpting to pcn,u.1de him to ,, ithdra,, hi, support. on !'>C\'er.11 grounds but p.1rticularly because of the prominent role of Morny in the affair. Because Rouher refused to ,ubmit the do,.".ier 10 the Conseil d'Etat. the minister of finance. Pierre Mt1f!ne. submitted it, a.i.l,,.ing for quick action a,; ordered hy the cm~ror. Under th,, pre,,un: the Con,eil acted swiftly. But before ,ubmining the draft charter to the Conseil d'Etat, the ministries forced the Credit lndu.. triel ct Commercial, as it was to be 1MM11cd. to accept many umH~lcome re,1rictiono1, tcrs. Hb \l;1Jc,t) h11, decided tha1 fur1hcr considcr.11ion e and the measure!> ;uh1pted ,, ith regard 10 other tin:mcial enterprises projected for the same ohJe1.·1. notahl) the Comp:ignie t'Omnium at L)on .•mJ at P;iri!> the Comp,1gnie Financii:rc ct lndu,1ricllc projec1cd h) !\l!\I. Jc fapclclil, Calvct Rogniat. D,illfu,. Koenigs,,arter and a,!>ociate,. If. in the pa!>I, it h:is ,1ppe.ircJ po!>),,ihlc 10 ,ti mu late hLhincss ,, hen it \\els Jcpre!>scd hy political crises. to :illrnct capllal and channel ii into indu,tr) h) :iuthoriting the crc:ition of l:1rgc h:mkmg and credit C!>t;ihlishment, in 1he ,111011.,·m,• form. thc!>e re:1sons Jo not exist toda). B) muh1pl) mg unnece"aril) the numhcr of the,e C!>tahlishmenb, \\e ,hall arrl\c at the most unfortun;ite rc!>uh, of Jc,cloping a type of go\'crnmental gu,mlian,hip in large industrial center,. and of !>limul:11ing the I.Isle for 'fl\.'culation :ind gamhling on the Boursc 10 1hc detriment of h:gitimatc commerc1.•. Con,e4ucntl). I C'annot hcgin 1he proce!>sing of your project. 70

The Cais!'le ct Journal des Chcmins de Fer remained a .wcieu; ,,,. commmulire and \\',IS even forced to postpone the raising of its capital from 12 to 50 million frnncs. The emperor's note of 9 March 1856 dechucd that no ne\\ enterprises giving rise to new capit.il issues "ould be authori,ed for the rest of the year. Although the business wus a co11111tc111dir,• and not subject to this prohibition. the minister or finance w;rs able. through the Bourse. to block the new issue. 71 On a more exalted level. the luminmics of the hawe '"""I"''. includm~ Roth!.child. propn!.ed to establish the Comptoir Imperial des Trnvaux Publics du Commerce ct de l'lndustrie in 1856, but the Conscil 'IIOl 3i)idc the project as "untimely." Unlike ~tires 's rnis.'ie, the Cnmptnir lmp.:ri:11 wa,; not rcjel'.led out of hand: the project was processed 1hrou11h the Con11cil d'Ernt. The scruples cxprc~scd by the minister of commerce in hi1. letter to Mires apparently did not apply in this case. Although the financial ~lilt us and politic,11 influence of the founders w;1s of the highc,1 order. the same w,t, true of the oppo,ition. This proJcctcd ba,i1k \..,a, the forerunner or the Socictc Gcncnrlc pour Fuvori,cr

(92)

Joint-Stock Enterprise in France, 1807-1867

le Devdoppement du Commerce et lndustrie en France. authorized in

1864. Another co111111a11dite par actions. the Union Financiere et lndustricl of A. C. Calley de Saint-Paul, requested authorization the following year. Its nominal capital was 120 million francs. but it issued only 100,000 of its shares, on which 250 francs had been called, reducing its realized capital to 25 million francs. 72 Its request suffered the same fate as did that of Mires's caisse. The Union Financiere continued as a co111ma11dite for three more years before disappearing. 73 If the concept of investment banking as a necessary evil was gaining grudging acceptance in governmental circles. the authorizing of institutions with the novel idea of eliminating transactions in specie failed to win suppon. In 1853 the ministry considered the request for authorization of the Societe de Credit lndustriel et Agricole projected in Paris by Louis Goupy. This institution, capitalized at 25 million francs divided into shares of I 00 francs. planned to serve as an intermediary and to collect a commission on the exchange of goods and services. The exchange would take place either directly or by means of receipts for the deposit of merchandise or notes promising to provide a service (bons d' echange). The promoter claimed that operating without employing specie as a means of payment would help avert depressions such as those France had recently experienced. 74 The major argument for the viability and social utility of such an institution was the success of the Banque d'Echange, a societe en commmandite established in Marseille in 1849 by C. Bonnard. Organized initially with a capital of 7,825 francs divided into shares of 25 francs. the Banque d'Echange was an undeniable success. In its first year of operation it handled almost 500.000 francs· worth of transactions, rising to over three and one-half million in 1852. The annual dividends on its 25-franc shares averaged almost 20 francs a share during the first four years of its operation. Encouraged by this success. Bonnard founded branches in Lyon and Strasbourg and finally. in I 853. founded in Paris the Comptoir Central. a societe en commandite nominally capitalized at 100 million francs (its realized capital had reached 11 million francs by 1856). Bonnard requested authorization for the Comptoir Central in 1854. but the ministry of commerce had already reached a decision on the projected Societe de Credit lndustriel et Agricole. which also doomed Bonnard's request. 7a Consulted by the ministry on Goupy's bank, the Chamber of Com-

The Soci,·1,• A11011_nm• in lhe Railro.u.l Age

j93 J

merce of Paris raised numerous objeclions. slressing lhe large capirnl and ltm ,·alue of I 00 francs for lhe share, of lhe emeqnise. ;ll The minillh!r of finance. Jean M.inial Bineau. ,,·as worried more aboul lhe economi1.: and social consequences should im,1i1u1ions of chis 1ype prO\e successful lh,m aboul lhc possibili1y of !heir failure: "A con,iderablc deprecia1ion of precious melals would occur al .i lime "'hen lhc disco\'Crie, of Au.;.1ralia and California 1hrea1en already 10 damage our monernry syslcm . . . . Secondly. 1hc success of 1he cnlerprisc. and 1he founders ha,e 1101 concealed 1hcir 1hough1 in chis rcgmd. \\ ould lead 10 lhe ruin of relail business. . .. · ·n Bineau advised againsl au1hori1a1ion. and 1he minislcr of commerce concurred wilh his opinion. Some requesls coming 10 lhe minislry emanaled from promolen, \\ilhoul sub,umce or from cranks. In this lauer category was Alexandre Crcienier. "'ho a11emp1ed 10 found the Socicic des Fils PeigncsCrclcnier in 1842 .ts a .wcisi\·cly !->lated what the hill would accompli!->h: ""\\'hat will the new law do'? It pre\'cnts fraud: it stop!-> the lllO!->I U!->ual types of fraud: it oblige!'> the founder!'> of enterprise!'> to he "i,e and hone!'>t: it ask!-> shareholder, to in\"e!'>tigate and he prudent: it protect!'> !'>mall in\'e,tor!'I: it diminishe!-> and represse!'I speculation: it end!-> the illicit di\'idends: it forms a barrier to the creation of fraudulent cnterpri!'>C!'>: it in,titutc!'> an cffecth·c !->Urveillance: it attempts. insofar as po,!->ihle. to replace deceit and lies with truth and fairne!'>s."W The hill. "hich paso;ed without change. mandated !'>hares of at least 100 francs for enterpri!'>es with capital of under 200.000 francs: for enterprises with capital of over 200.000 franc!'>, the !'>hares could be no le" than .500 francs. All sh~1re!> had to he subscribed and at least a 4uaner of the capital had to he paid in on each share before the company could he definitively constituted. Share!> were to he 1wmi11arfrt•.r-that is. registered in the name of their owner-until entirely paid up. and the original !>Uhscriher was ultimately liable for all call!-> in the e\'ent sub!->e4uent !>hareholders defaulted. Although the shares could he negotiated after t\,·o-fifths of their capital had been paid in. the re,pcrihers for all calls rendered thi!-> pro\·ision illusory. In contra,t to the comminee bill of 1838. hearer '>hares were permitted if the shares were fully paid up. Before the company could he definiti\'ely constituted. a !>pedal ,toc1'holden, • meeting had to he held to review the evaluation of the a...,e11, contributed by the gt'rmlf and any advant:.ges !>tipulated on his helualf in the by-la\\,. Thi, pro\'i!->ion aimed at preventing the gt'ra111 from o\·en·atuing his contribution and providing exorbitant privileges for hi,melf. In adopting thi.s pnwi!'>ion. the committee rejected several propo•t and affect the basis of the fusion. In this situation, thousands of workers. in both Paris and Marseille, will find themselves temporarily unemployed, as the works in progress are coming to an end. If the authorization of the combination is delayed until April, the new company will not be able to begin new works in time for the coming electoral campaign, and a large number of workers will be idle at the time of elections. If authorization comes during March, two months will be sufficient for the company for preparation. and the great operations it will undertake in Paris and Marseille will be well underway at the time of the elections. Therefore it is urgent that the Conseil d'Etat immediately begin processing the mailer without waiting for the decision of the courts. It would also be useful. in view of the importance of this question, if the Court of First Instance was called upon to make its decision quickly. rn

However, Rouher was not to be stampeded by pressure from the promoters. He wrote to the prefect at Marseille that normal procedures would be followed: .. In addition, I cannot admit for a single instant that the matter of authorization can be linked to the question of continuing operations. All the companies and M. Em. Pereire personally have contracted individually certain obligations. These obligations must be fulfilled within the time set whatever the outcome of the authorization process.' ' 20 The dossier was sent to the Conseil d'Etat but was held up there awaiting the report of the appraisers. Meanwhile, the dissident stockholders withdrew their suit. 21 The Conseil rendered its opinion on 20 May, just ten days before the 1863 legislative elections. In addition to excluding the Compagnie des Entrepots et Magasins Generaux de Paris from the merger, the Conseil wanted to change the stock apportionment in the new enterprise in accordance with the appraisals, which showed the assets of the Compagnie Immobilicre to be overvalued by more than 4.5 million francs and those of the Ports de Marseille to be undervalued by 3 million francs. A meeting of Pereire with Rouher resolved these and other difficulties. The demand of the Conseil d'Etat in regard to stock reapportionment, which Rouher had originally favored, was dropped. The company was finally authorized on 13 June. The appraisals ordered by Rouher were to become an issue later in a stockholders' suit to dissolve the company. Although

The End of an Em

( 123 J

1hi!o> !o>Uil wa!o> broughl in 1869. af1cr go\'crnmcnt authoriza1ion had bc:cn ended. C\'en by 1863 some government official!\ were bc:ginning 10 sec the advanlages of free incorporn1ion. A111lwri:atio11 Policy i11

tilt'

Railroad Ag,•

By 1hc 1830s an established !>Cl of principle!> go\'crned authori,ation. ~fo!>l of 1hese continued 10 be enforced without diange until go\'crnmcnt authorization came to an end in I 867. Others were strengthened or \\Cakencd as circum!>lances required. and !>Orne new policies ernl\'cd. Although i1 sometimes did not get it!> own way. the Conscil d'E1a1 continued 10 dominate the formulation of authoriza1ion policy. The Conscil d'Erat underwent imponan1 changes in organization. power!\, and personnel artcr 1814. \Vholc!o>alc turnovers in personnel occurred in 1830. 1848, and I 852. but afier each upheaval a core of experienced perl',onncl remained to provide continuity. The gradual creation of 1he Conseil's administrative jurisprudence regarding the aulhorization of .\·ocih,:.\. mw11.m1es was vinually unaffec1ed by revolu1ions. coups d'e1at. and personnel purge!>. The oullook. background. and education of 1hc Conseil's personnel did undergo some change but with no perceptible cflcc1 on the Conscil's unsympathetic view of the business \\Orld. Herc legitimis1s ,md republicans saw eye to eye. The social amd psychological gulf between mcmbcn, of the Con sci I and the new breed of company promoters remained unbridgeable. The Conseil conceived its role as that of the guardian of business probi1y. Though prolesting frcquen1ly that authorization was not an oflici;al guaramcc. it acted as if lhc oppo!o>ile were true. Even 1he language of il!o> ads often belied 1he disclaimers. Members of the Con.,ccil. panicularly member!> of 1hc !>CClion of agricullurc. public \\Orks. and commerce. \\ere likely 10 know if. and when. mnhori,ation would occur. Under ccnain circum!o>Ulllccs this was valuable infonnation. It i, impthsiblc to know 10 whal cx1ent members. direc1ly or indircc1ly. engaged in speculation or pa~!\ed along information to friends and relaliv~~- h appears th1111 1hcir con,cn·a1ive outlook extended 10 lhc+r invc~tment!I., \\ hich were merwhclmingly in go\'ernmcnt rc•m,·.\· aAd hmded pmpcny.z: The other imporlant molder!\ of au1horiLa1ion policy were the minish:r.. a-nd the burcaucral!\ \\ i1hin lhe mini!>lrics. panicularly lho!o>C of

[ I 24 J Joint-Stock Enterprise in France, 1807-1867 commerce, public works. and finance. Ministers came and went, but changes were less frequent than during the Third Republic. The professional cadres within the ministries, usually willing to serve any regime, changed less frequently. though political upheaval, death, and retirement took their inevitable tolls. Insofar as their collective outlook was concerned, these professionals were a little less conservative on authorization policy than the Conseil d'Etal, the difference arising from a slightly greater political and economic awareness. Although the Conseil and the ministries were generally in accord, conflicts between them over authorization policy did occur. As in the earlier period, the Conseil d'Etal continued its attempt lo limit the anonyme form to large enterprises of public utility. In 1836, the Conseil refused to authorize the Manufacture de St. Clement, an old firm engaged in the manufacture of faience, principally on the grounds that there was •·no motive of Public interest," as there were only ten stockholders, all members of four families. The Conseil also objected to provisions mandating unlimited calls on shares lo maintain their value al 700 francs and restrictions on the right lo sell shares to outsiders. 23 In the same year the Conseil also refused to authorize the Berlines Mantaises Accelerees because of the small size of its capital (20,000 francs). 24 The minister of commerce ordered that the request be returned to the Conseil for recom,ideration. The ministry argued that precedents existed, a number of a11011ymes with small capital, varying from 15,000 to 66,000 francs, having been authorized previously. 25 The ministry also invoked the opinion issued by the Conseil Gencrale du Commerce in 1825 when the Conseil d'Etal had refused to authorize the Verrerie de Thuison for similar reasons. 26 Not to authorize small enterprises, the ministry argued, "would be lo create a restriction that the law has not established." 27 The request was resubmitted to the Cons'eil in April 1837, and it is not clear why the enterprise was not authorized. That the ministry was partly successful, however, is evident from the subsequent authorization of a small sugar refinery. The authorization of the Sucrerie de Bergerac. capitalized al I00,000 francs divided into twenty shares of S,000 francs each, with only ten shareholders, was refused by the Conseil d'Etal in June 1837 on the grounds of its small capital and few shareholders. The Conseil observed that the

The End of an Era

f 125 J

enterprise could be formed ea),ily a), .1 partner),hip. 2 " The minii.1er immediatd) ordered the requei.1 10 be returned to the Com,eil for recon),idcra1ion. The mini),1ry noted that the Berlines de Chateau Thierry. a smaller company (capital 60,000). had been .iu1hori1ed in February and 1ha1 the Bcrlines :\fant.1iscl> Accclcrccs had been resubmined in April. 2!' Thl' Conseil rc\'crsed itl>elf .md authorized the Sucrerie de Bergerac in NO\cmbcr. In September I 8J7. the Conseil d'Etnt approved the authorization of the Forge), ct Fondcries d' Axat (Aude). capitalized at 420,000 franc),, re,·crl>ing the deci),ion of its own comminee. Three members of the l'omminee \'Olcd againl>t au1hori1a1ion in December I 8J6 because of·· l>eriou), objcc1ionl>." the most serious of which was that the company had only three stockholder,;: and two member!> voted for au1horiLation on the grounds that .. a sufficient reason to refuse authorization doel> not cxiM.":m The delay between the action of the committee and final authoriLation l>Uggests that the minister may have intervened in the c.ise: if the General Assembly had immediately overruled the commi11ee. au1hori1ation should have occurred earlier. Probably the ministry's insistence at thil> time that small enterpril>el> and enterprises ,, ith a ),mall number of l>hareholders should be permined to employ the mw11yme form was not unrelated to the effort to secure legislative rcstric1iom, on the formation of .wcit•te.\· e11 commmulite par actio11s. During the 18-lOl>, Mnne Mnall enterprises continued to be mllhori,ed. In 1842. l'Union. Mesl>agericl> d'Alen of an enterpri!lle C:\i,1ed. the chaner ,,ould include a provision rcquir-

a

(130)

Joint-Stock Enterprise in France, 1807-1867

ing the appointment of government commissioners to exercise surveillance over its operations. In the case of some banks, the government went even further, reserving the right to appoint, or approve the appointment, of the chief executive. Actually, government commissioners did little. Their reports usually consisted of summaries of the annual stockholders' meetings, containing no more information than could be found in the financial press. The commissioners were paid by the enterprises on which they were supposed to inform. The four government commissioners of the Credit Foncier each received 6,000 francs annually, not bad pay for what was essentially a sinecure. In 1855, the report to the committee of the Conseil d' Etat that was considering the request for authorization of the Mines de Houille de la Mayenne et de la Sarthe called government commissioners an '· illusory guarantee" against abuse. 52 Fears existed about the future pricing policies of the company, which possessed fourteen of the sixteen mining concessions in the area (and five of the six mines actually being exploited). Other safeguards were no more effective. Requiring the submission of the firm's balance sheet to the ministry, the local commercial tribunal, and the local chamber of commerce every six months was originally intended to serve as a means of official surveillance. That many firms were not complying with this requirement became evident in 1838 when concern over joint-stock enterprise was at a peak. The ministry directed the prefects to remind all anonymes of their obligations. Some of the balance sheets submitted testify to a woeful state of accounting practice. A few firms did not know what a balance sheet was. After being forcefully reminded of their obligations, a11011ymes submitted these reports with greater regularity, but from time to time the ministry had to mount a new campaign to remind those in default.53 There is almost no evidence that the administration put these records, once in their possession, to any use. s.a But if the reports did not serve the regulatory purpose originally intended, their publicity function came to be recognized as essential. Government authorization by the end of the 1850s was being subjected to increasing attack. The old catalogue of complaints continued unabated: excessively stringent conditions, long delays, and the "privilege" conferred by authorization. Further, the demise of the commandite par actions as a vehicle for large-scale enterprise, attrib-

The End llf an Era

I 131 J

u1cd lo 1hc re!>lriclt\ c la\\ of I S56. rcmo\·cd a\ iabk allcmali\'e 10 1he llt1011_vme. Lillc:rali1a1ion of incorporalion l.t\\~ .1broad. \\hich .1tkc1ed 1hc compelili\e J)(l!>ililln of French firms. comribu1ed 10 1hc demand!> for refom1. Fin.ill). gn)\\ ing !>enlimenl held 1ha1 go\'cmmem in\'Ol\emcnl \\a~ bo1h inappropriale .md unncccssar). \\'ha1 remained 10 be ~cen \,as hO\\ 1he problem would be sol\'ed.

7

The Triumph of Free Incorporation

Une Joi ne s'invente pas, el/e se dccouvre.

P. J. Proudhon

The triumph of free incorporation in France was closely intertwined with events abroad. Though the French in 1856 passed legislation restricting the co111111w1dite par actions. in the same year the British liberalized their corporate law. Until then, French corporate law had been generally more liberal than the British. Although the British law of 1844 recognized the principle of free incorporation, it did not grant limited liability. In the early 1850s. many favored importing the commandite par actions into Britain to secure limited liability for shareholders. 1 But rather than imitate the French. the British created, by the Company Act of 1856, the limited liability company, a corporation with a minimum of seven persons. conferring limited liability on shareholders and requiring certain formalities of registration. Prior to the enactment of this law, English promoters often crossed the channel to found companies that operated in Britain with wholly British capital. In 1852-53. twenty English companies were founded as co111ma11dites par actio,is. each renting office space in France and hiring a French geralll • 'who did nothing but give a power of attorney to one of the company's English directors." 2 The cost of founding and maintaining English companies in France was one of the arguments used in favor of liberalizing English law. According lo the vicepresident of the Board of Trade, Edward Pleydell-Bouverie, in June 1855: So grca1 is 1hc demand for limi1ed liabili1y. 1hm companies arc frcqucn1ly cons1i1u1cd in Paris and 1hc Uni1ed S1n1cs, in order 1ha1 1hey may ob1ain 1hc securi1y which in 1his respect 1he laws of 1hosc coun1ries afford. When 1hese companies arc formed in Paris, 1hey pay a heavy du1y 10 1he French govcrnmcnl. The duly assc!>sed upon one company of which my firm were 1hc solici1ors amounicd to £750.... All 1his expense is incurred simply 10 ge1

r1321

The Triumph of Free Incorporation

I I.B)

the bcnchr of the hcnch l;I\\ nl lim11cd hahilit). and II amuunt, gcncrall) It) L .mo 11r L 51KI a )C:ir I ha\C rca,on rn bchc\C rhar one compan) ·, c,pcn,c, incurred in P,m, rn ohtain rhc hcnclir of rhi, l:m amounrcd to ncarl) £4,000. I wuhin rhc mark in ,a)ing that dunng the la,r l\\O )Car, ar ka,t l\,cnry compa111c, ha\c been formed in Fr:mcc ,old) for the ,amc purpo\c,. They Jrc. in truth. 1:ngh,h companic,. hnth a, to capir:il and dirccr(1r\, and all thi, nix-nd1tun: ,, Ju,t ,o much mnnc) taken from rhi, country and paid to France a, a con ...dcra11nn fnr rhc u,c of her la\\\, 3

.,m

The Briti,h act and the French lav.: of 1856 reversed the migration. Engfo,h companie, that had been founded in Paris recrossed the channel to become limited liability companie, and escape the rigors of the French law on co111111a11cli1es. A number of purely French companies found it convenient to become limited liability companie, under British law. The migration of Fn:nch t·ompanies ,,·as facilitated when the French go,·emrnent explicitly recogniled the right of foreign corporations to operate in France. This \\ a, the re,ult of a series of e\'enls that began ..,. hen Belgian couns. during the 1840s. rendered contradictory deci,ion, on the rights or Frenrh societc•s c111011_m1es lo exist as legal per,on, under Belgian la..,.·. Thi, incom,i!>lenl jurisprudence was finally ended in 1849 \\ hen the Coun of Ca,!>alion at Brusseb. decided that French socic•te.\ a11011_\.,,,es could not exist as legal persons under Belgian la\\.~ Numerous complaints from French chambers of commerce followed this decision. The Chamber of Commerce of Valencienne!-. pointed out lo the French minister of commerce that French sol'il'lc;.\. t.age of the Belgian law of 14 March 1855. Bcrau,e the con,ention requin:d reciprocity. the French were obliged lo introduce lci!i,lation that led 10 the enactment or the law or 30 May 1857. Although the French Coun of Ca,,ation hHd con~i,1en1ly upheld the ri11h1 or foreign companie, 10 operate in Fnmce. they had hccn ,ubjectcd lo \,,Ofne harr.1~,rnen1 by the French go,·ernmenl. 11 The French 141w of 1857 pcm1i11cd all Belgian comp:mic1, 10 opernle in France and

[134)

Joint-Stock Enterprise in France, 1807-1867

provided that the government could extend this privilege to any other country by a decree in the Conseil d'Etat. After the passage of this law, French courts reversed their previous jurisprudence and refused to admit the legality of any foreign corporations except the Belgian. 7 In the following decade the French government extended full rights to the companies of almost all European states. For companies of the few countries not covered, of which Prussia was one. permission to operate in France was obtained on an individual basis. The treaty of 30 April 1862 established general reciprocity with Britain. The liberalization of British company law with the creation of the limited liability company in 1856 and the right of British and other foreign companies to operate freely in France helped speed the liberalization of French law. Other important determinants were the harsh criticism to which the French law of 1856 on the commandites was subjected and the movement of the government after 1860 toward freer trade and toward political liberalization. In 1861, two high officials of the judiciary joined the chorus favoring reform. Guillaume Deniere, president of the commercial tribunal of the Seine, advocated a new law establishing the English limited liability company in France. 8 A few months later, Antoine Blanche, avocat general of the Court of Cassation. echoed the need for reform. noting that there were two defects in the commandite par actions: the omnipotence of the geratll and the prohibition of stockholders from participating in management. 9 He pointed out that the law of 1856 had not been successful in diminishing fraud and proposed that stockholders be given the right "to oversee the action of the geratll, to direct and limit it, without exposing them to the rigorous consequences [unlimited liability] of Article 28 of the Code de Commerce." 10 Recent decisions of the Court of Cassation, Blanche noted, already permitted the stockholders some control over the actions of the gera,u. 11 These ideas and others were discussed by Adolphe Blaise in a series of articles in the Journal des travaux publics, later published as a book. Blaise, like Deniere, proposed introducing the English limited liability company into France. 12 The proposals of Deniere, Blanche, and Blaise were discussed in the press, and many other proposals were forthcoming, some for removing the restrictions placed on the commandite by the law of 1856, others for allowing the a11011yme to be formed without government authorization. 13

The Triumph of Free lncorpornlion

[ 135 I

Shonly afler lhe proposah. of Denicre and Blanche. the Corps Lcgisla1if in ils reply 10 1hc emperor's speech from 1he 1hrone in 1862 called a11en1ion 10 lhe need for "1he reform of '-·,main commercial laws ... [and) 1hc suppression of obslacks 1ha1 cxcessi,·e rcgula1ion opposc:-s lo 1he producti,·e forces of the countr)." 14 The go\'cmmcnt v.-as willing 10 consider reform. An appoin1cd commission. headed by Minislcr of Commen.:c Eugene Rouher. recommended in1roducing 1he Engli!.,h limiled liabili1y company imo France. Ahhough 1he go\'emment's bill. prepared by the Conseil d'Etat. \\ as wckomcd as a forward slep. many expressed rc!.ervalion!. o\'er the rcs1riction!I ii con1.1ined. 1l The commillcc of 1hc legisla1urc succeeded in :-.ecuring !1Ubsequen1 amelioralion!. from 1hc Conseil d'E1a1. some of which o\\ed much 10 ad,·ersc public commenl. Foremosl ~mong 1he cri1ics Wa!. Adolphe Blai!.e, who subjccled lhe go\'ernmcni'~ bill 10 a minule cri1ici:rn1. 1i; He accused go,·ernment bureaucra1s of bclraying lhc c:-mpc:-mr's desire:- for reform: T~y thin!,. onl~ 11f thi: 1raJi11on, of thi: past . . . . onl) of prc,cn ing ,·cstcJ mh:rc,t, anJ prolonging the kgnl warJship of citizc-m, . . . . They Ji,trust C"nmin.·rcl" anJ mJu,111·. anJ try Ill prc,l·nc themsclH·, from anl contact \\ ith the,c inferior proks,ion,. of" hose cu,toms anJ neeJs the~ arc ignorant. This aC"count, for the gcnerJI attitude of thl' Con,cil d'Etal. "hich. nn questions of rl'form anJ cnmmcrl·ial lcgt,lation. secs in the business \\Orld onl} Jupcs In be protel·tcd. charlatani. to be rc,traincJ. and :ihu,cs to tx· anticipated and pre\cnted ... All thci.l' prclll:l'Upations and contraJictions arl' to be found in the bill on the .,oci1·tr 1i rt'lprmsahili11; limit('(', which begin, "ith a pmdmnallon or emanc1pa11on . . . . .,.. ho,c application the remainder or the bill paralFe, anJ hmJcr,. "hl·n it Joe, not n:nder it complc1cl} impossible. 1'

Blai.!rc·~ cri1ici•m1., helped 10 secure some imponan1 changes. such as 1he rcduc1ion of 1he number of associale!!I required 10 found a sociere ,i n•s1m11s"bilite limitfr from 1en 10 ~e\'en and 1he increa!.e of 1he maximum capi1ali7..alion from 10 10 20 million franc!>. 1" Michel Chevalier. liberal economi,1 and !!lemuor. poimcd ou1 1hc di!>pari1y bc1wccn 1he Engli,h ht\\ and 1he re,1ric1ion, of 1he go\'crnmenl' s bill and added his ,w-i~ll,1 10 tho!'le prc"it>in!! 1he lcgi,lflilllre 10 liberalize 1he bill. m The 110,·emmcn1's bill \\a-t. ~cnl 10 1hc Corps Lcgisla1if on 16 M:t) 18,62. anJ in June a commince \\a., appoin1ed 10 sludy 1hc bill. 20 The committee'!!. deci~ion to obtain 1he ad,·icc of commercial 1ribum1l, and cbamhen, of commerce. no doub1 mo1i, a1cd by .i desire 10 i::ain suppon

1136)

Joint-Stock Enterprise in France, 1807-1867

for amendments, delayed the reporting of the bill until 1863. The character of the sociere a responsabiUte Umitee (SARL). the French translation of the English .. limited liability company," was described in the committee's reports as follows: "It is, in reality, a sodere anonyme without the authorization of the government and in which the inherent guarantees of authorization are replaced by a set of require· ments destined to protect shareholders and third panies . . . . This new form offers all the features of security that can be found in a regular sociere a11011yme and at the same time avoids the slowness and difficul· tics of government authorization." 21 The SARL also overcame one of the main problems of the commandite par actions: lack of stockholder control over the enterprise. In reply to criticism that the advantages of the SARL would lead to unfair competition with proprietorships and panncrships, the committee gave a stock nineteenth·century answer: '' Businessmen whose entire credit and fortune are at stake usually will retain a superiority and advantage in the struggle against administra· tors having only a partial interest in the business that they run. " 22 Another motive for the bill, emphasized by the committee, was the necessity of providing French businessmen with "equal anns" to compete with English companies. especially because the Cobden· Chevalier Treaty of 1860 and the Commercial Treaty of 1862 had stimulated commercial relations. 23 The bill that emerged from the committee was less restrictive than the government's bill, for the committee was successful in persuading the Conseil d'Etat to accept some ameliorations. 2-1 The committee wanted to change the title to sociere anonyme libre, but this move was rejected by the Conscil. The committee did succeed, however, in reducing the minimum number of associates from ten to seven, which was the minimum number in England. The effort of the committee to remove the restriction of a maximum allowable capital failed, but the Conseil did agree to raise the maximum from IO to 20 million francs and to eliminate a 200,000.franc minimum. Many of the restrictions imposed on the commandite par actions by the law of 1856 were incorporated to prevent fraud, to assure the reality of the capital, to curb overvaluation of contributions by the promoters, and to restrain the stipulation of excessive advantages for the founders in the by.Jaws. Shares were to be negotiable only after at least two.fifths had been paid in, and they were nominatfres until

The Triumph of Free Incorporation

11.37)

compktel) paid up. The minimum par value of shan:s wm, fixed at 500 francs for comp:mies with capital of owr 200,000 francs and I00 franc\ for companies with c:1pit.1I below 200,000 francs. All capital had to he subscribed before a company could be formed, and at kast one-fourth h.id to be paid in. All these restrictions were taken from the 1856 la,\, but an important innovation required that the administrators pt1sse!'>s at leust one-twentieth of the total capital in inalienable sh:ires. a disposition suggested by the commercial tribunal of the Seine. The bill prO\ ided for commissioners. to be chosen by the stockholders. ,, ho were to \'erify the accounts and watch over the actions of the admini!'>trators: they rel>embled the irn,pectors provided by the Britil>h act of 1856. Some of the commercial tribunals criticized this provision a\ likely to breed controversy within the enterprise. 2:; The question of the dissolution of the enterprise had to be l>Ubmitted to the stockholders if three-quarters of the capital were lost. a provision also taken from the Englil>h l:1". 2" A mandatory reserve was to be created to which 5 percent of the annual profits were to go until it equalled 10 percent of the enterprbe'!'> capitalization ( 10 percent and 25 percent. respectively. in the go\'ernment' s bill). To prevent conflict!'> of interest, administraton ,, ere forbidden to do business with or to have interests in firms ful in preventing fr,1ud, and ignored the inhibiting effect., of the law on company formation. Attenuation., in the re.,trictinn., of the law of 1856 were justilied by the \'irtual di ... appearnnl·e offrnuduknt prnctices and the increasing maturit) of ime.,ton,. E\'cn with the changes, the co11111w11di1e par ac1io11J \\ ~,s far from pm,.,es.,ing the freedom it enjoyed before 1856: although lcssenc:d. the restrictions were not removed. The committee wa., ... uccessful in persuading the Conseil d'Etm to rcmo,e the prO\bion that required the directors of a .wciete t111,111.,·111,· to pmse.,., 5 percent of the enterprise\, capital in inalienable share!>, to a 111aximum of 1.5 million francs. This pro\'ision had been borrowed from the SARL. and the committee thought it too restrictive. It was replaced by a pro, ision allo\\ ing the charter to !'>pecify the number of im1lienable sh.ires the directors mu,t possess as a guarantee of their administration. The pnl\ i,ions of the bill were !'>harply criticized both in!>ide and oubidc the chamber. Within a few days after the submis!>ion of the committee'!> report. members of the Corps Lcgislatif offered more than lifty amendment!>. Except for a few minor changes in the bill. the committee ,ystematically rejected all the amendments:H Two economi!>ts. J. G. Courcellc-Scneuil and Gustave de Molinari. criticized the re!>trictivcness of the bill in long articles that appeared in the Joumal des ecmwmistes.":, In the Joumal des c/1emi11:. de fer. A. Larrieu refuted the go\'ernment and the committee on the allegedly beneficial effech of the law of 1856: Sm"·e I X5h the e,tr.iortlinar) pro,pent} or the economy h.i., been tlecim:itctl Jntl a manclou, intlu,tnal tle\·elnpment .,,oppctl !>hon. The mo\'l:mcnl of l.'apnal ha, been di, cn"·tl ahrnatl into enterpri,c~ 1h:it h,I\ e ruined stod,holtlcn, anti hnm.lhnltler,- Thn:e h1llion, ha,'-' Ileen lo,t. ,, hile the soil or France contain, much une,ploitctl ,,eallh. . . If lhe 1,1\\ of I 856 ha, pre\'cn1etl pc,i.,1hk t.lM1,ter, h) Mr X or Mr. Z. ,, oultl-hc gamul· of unformed enterpn,e,. 11 1, necc"ar~ to compare thi, ,, 1th the desolation or man) fomilies bc1mmn~ ,, 1th 1he '-'ollap,e of Spam,h railroad, :mt.I ending wilh those in It.al). \\luch pw,e, tha11he French co111111,m,lm· ",till preferable hl the foreign ,,,,,.,,,,,,,. ,\t lea,1 1hc mone) doc, not lea, c the count!)'. 111

JlN:ph Gamier. the editor of the Jour,w/ d,•s ,·co110111is1,•s. would have preferred the complete abolition of the pro\'b,iom, of the Code d,·

[142)

Joint-Stock Enterprise in France, 1807-1867

Commerce and the laws on business organization, which abolition would allow complete liberty to company promoters. 47 But he recognized that this solution had no chance of success: "Unhappily the spirit of preventive regulation has dominated the authors of the bill. the Conseil d'Etat, and the committee," he wrote; "it dominates the legislature and will result in a very imperfect law, which it will be necessary to change before long." 48 The debates on the bill were long and, except for the intrusion of current political concerns, of a remarkably high order; altogether. thirteen meetings of the legislature were devoted to the bill. The debates afforded the opposition an opportunity to attack the empire. In a free-swinging attack on the government, Ernest Picard, a member of the republican opposition, claimed that with the aid of French commercial legislation a veritable "industrial feudalism" had been created, "whose representatives were as powerful as they were few, and who, with government authorization, possess in incalculable proportions the greatest portion of the patrimony and riches of the country." 49 Picard cited the case of an unnamed financier who, with the assistance of friends in the government to obtain authorization for a11onymes, had become the director of twelve or fifteen companies with a total capital of 3,740,000.000 francs. The interests of individuals such as these were promoted by their control of the press: "Behind each financial institution, there is a newspaper." 50 Picard argued that they had drained into their own pockets the prosperity of the empire, a prosperity in which workers had not shared, for prices had risen faster than wages. 51 Another opposition leader, Emile Ollivier, who had been a member of the committee. presented a complete counterproposal to the bill. Ollivier's bill, which was similar to the suggestion of Joseph Garnier, would have abrogated the laws of 1856 and 1863 and Articles 18 through 64 of the Code de Commerce. It contained only brief definitions of the pannership, the comma11dite, and the a11011yme, definitions sanctioned by commercial custom, and, subject to safeguards of adequate publicity, would have allowed a rather complete liberty for promoters and investors to shape their own partnership agreements or company chaners. 52 The minister of commerce, de Forcade de la Roquette, while emphasizing the liberalization provided in the government and committee bills, attacked the almost complete liberty provided by Ollivier's bill as being dangerous to public order. 53 Echo-

The Triumph of Fm: Incorporation

I 143)

ing the opinion of Napoleon l's archl-·hanccllor. Cambacc:ri:s. a member of the Conscil d'Etat \\ ho had panicipated in the elaboration of the Cm/,• ti,· Cm11111t•rct•-"The public order is inrnl,·ed in all joint-stod. companic,. because in this type of enterprise public credulity is easily dupc:d b) speculators· ·:,~-the minister pointed out that shan:s of tiw francs \\ere possible under Olli\"ier's bill. The boom of the 1850s had alrcad) seen shares selling for as little as one franc: "They \\ere not capital sh.m:s. but simply lottery tickets:·:;;; Ollivicr's proposal \\'m, doomed to fail. but it nevertheless rallied 44 fa,·orable ,·otes to 154 against.:,,; The ging nrnjority of 223 to 7 .111 It recei,·ed no wcnou~ debtl'le in the Sena·te and became la\\ on 24 July 1867. Ten )l.~ later. Charlc1' Lel'>cm:ur. noting that the corporate law of England »nd Bel,ium \Wla less rcl'ttricti, e. accurate!)' l'>Ummari1ed liberal objec-

r144]

Joint-Stock Enterprise in France, I 807-1867

tions to the law: ··By attempting to regulate everything to the last details, in determining a priori the conditions by which a company must be constituted and function, without leaving anything for the unexpected, without taking into account the circumstances and varied needs which can arise, in claiming to force all efforts of large companies into two inflexible molds, more benefits are sacrificed than abuses avoided." 62 But the majority view on the law was probably expre5sed by the Chamber of Commerce of Paris, which in I 882 judged it favorably as "a well-made law which has given excellent results and permitted the creation of large and useful financial and industrial enterprises.' ' 63 The law opened the way for a large increase in the fonnation of societes anonymes; 191 anonymes were formed in 1868 and 200 in 1869. 64 In the Paris area alone, 798 anonymes were formed between 1868 and 1876,65 more than for the whole of France during the entire sixty-year period of government authorization. In the single year 1881. 976 anonymes were founded in France. 66 With free incorporation of the anonyme, there existed little need for the commandite par actions, which ceased to be an important form of business organization. Other European countries shortly followed the lead of France and England in providing free incorporation: Spain in 1869; Germany (North German Confederation) in 1870; Belgium in 1873, and Italy in 1883. The French law of 1867, which was to remain the fundamental charter for corporate enterprise for almost a century, marked an end as well as a beginning. During the sixty years following the promulgation of the Code de Commerce, the corporation, at first virtually unknown and regarded with suspicion and hostility, had emerged in large numbers and had acquired a legitimacy in the public eye. A regular external structure and a system of internal governance had been added to the bare framework of the code. Corporate securities had become an important and accepted form of wealth, and a national securities market had come into being. fueled by middle-class investors. 67 A new class of corporate promoters and managers had come into existence. And finally, the emergence of France into a new era of industrial capitalism, with all its benefits and problems. had been achieved.

Appendix: Societes A11011v111es. 1808-1867 .,

Th1' app,..•nd1\ •~ a complete h,1 of all .wci,·1,•s ,111011_,·111,•s .1uthor11cd hcl\\ccn 1807 and 1867. c,c.:cpl for 1hrce l)PC" of cnlerpri ... c tha1 100k 1hc t1111111_rn1t• form hu1 \\Crc 1101 .... 1ri ..·1l) ... peaking. t111m1_,·111,•.L hcing in ... 1cad ch:1ri· tJhlc. or nonprolil. or qua,1·oftkial cnh:rpri"c". The three 1ypc ... excluded arc ,.,, ing ... hank,. mu1ual in,urnncc companic,. anJ 1hc di ...cnunl hank" 1ha1 \\CfC founded a, a tcmJ)llrnr) c,pcllicni foll(m ing 1hc Re, olu1ion or 18-48. E.ich h,1ing l·on1am, 1hc n:11m: or 1hc "·ompany. from "hid1 llll· prelix compt1i:11i,·. wci,·t,·. or .\twi,·1,• t111t11n-111,· u,u:111) ha" hccn omilled. followed h) lhl· official ,e:11 of 1hc "·,1mp:111) .i, dc ... ign:11cd in it" charter. The dale of au1hnr11a1ion i, gl\cn. and then 1hc inilial nominal c.ipitalitation of the enier· pn,e. ii 11 i, kn1mn. In ,ome in ...1:mce" \\here the "·api1ali1a1ion i" unknown. 1hc num~·r 1lf ,hare, j,..,ucd h) the cnterpri,c j,.. giwn. Some change, in cap11.ih1ation ha,c hc"·n nollxi. a ... ,,ell :1, d,, ... olution ... and merger.... hu1 1hi ... information 1, far from hcing l·nmplcle. hnall). reference ... to malcriab in 1hc 1· 12 and F' 1 ,cm:, in the :--.:a1ional An.:hi,c, ha,e hccn gi\'cn. Somi: of the ... e d1h!,icr, arc fairl) "·omprchcn ... i,c: other" l·nn1ain onl) an ilcm or 1wo. BL lllullt-1i11 ti,·\ loi.\ I reference, arc for 1hc comp:mic ... · charier,. 10 which arc annc,cd. 111 nllhl ca,c,. li,i... of ini1ial !-.lodholder.... I. f."111«·rpriH' G,·11,•ra/,• ti,•.\ M,•ut1g,•ri,•1 Pari, :! Jul) 1808 1.000.()(MIF (:!.

JI. A.nurtlllt'l'J Mariti1111•.f nmtre /1•.f Ri.{q1tt'J ti,• Gu,•rn• 111 Aug. IXIX J.tMMl,lXlOF (di,,ol\'cd 1820) BL. 7th ,er.. IX IX. 2d !'>cm .. J54-76 J2. 1'0111 d1• la D0rdog11t· Bordeau\ 11 Sept. IXIX 2,JOO,t)(KlF pz6747; BL. 7th !>Cr.. IXIX. 2d ,cm .. 411-25 JJ. /lm1q11e d,• /lortkmu Bordc:1u, 2J ~m. IXIX J.tK)O,CKK)F IJL, 7th \Cr.. 1108, 2d !.Cm .. 7Z5-60

)4. Auunm,·,·s n111tre /' /11n·11di1• Par" 14 Fch. IX Ill 2.CK)(J,()()()F BL. 7th \Cr.. 1819, i..1 ,cm .. 217-J5

Pari!'>

[ 148)

Appendix: Societes A11011ymes. I 808-1867

35. Sa/inl's et Prm/uits Chl'111iq11c• du Plan tf'Arcu Paris 7 July 18 I9 1.200.000F 2 P 6728; BL. 7th ser.. 1819. 2,·11,·11,/1111,·1·.,· 11 l\foy IK2K KOO,l)(IIIF F1~ti7•11: Ill., Klh ~l'I'., IK2K, I,

1111.

( 'h:1lon~·~lll'·Sai'i11l'

251 hi~. I 20

11) 12 F h7JK; Ill., K1h Sl'I'., IX.?X, II, no. 2·15 his, 5-2·1 11 1J. n,111.,,,,,,.,J ,:1111 ,,. H11,,.,,,. ,., rnhl·ur 2·1 Jmll' I K:?K I Jll,tKIOP F1~t1771: Bl .. Xlh s1.•r.. IK.?K, II, 1111, 25,1 his. I· 11

,,,II"

u,,,,,.,, ,., R,.,,,,,,.

th ,er .• l!O I. Ill. .5-1-'-.5:!

Rimognc

1.54 ,•h.\lcrm,n•., ,W11ri111111•., Ila, re 14 Mar. IMJ:? I .OS6.CltKIF BL. '>th ,er .. I XJ:?. PS. I. ll}.'\-:?O:? I.5Ci, Soc in,· /•11ri.rn•11111· d11 Cim,•111 1/nlrcmliqm· de• l'm,ilf,· 'J ~Iii} I SJ.:? 1.50.000f: 1 1· :(17.:?X; BL. '>th ,er. UD:?. PS. I• .51:?-:?I

Pari,

1.56 f•m,t de· Clmrac Bordeau, 11 June I x.,2 :?7.5.CK)OF 1~i:67-llJ; BL. lJth ,er. IXJ.2. PS. I. 67.5-X:? 1.57 /'11,w d,· /'bl,· llmwlwrd l'l,lc Bouch:ird tlndrc ct Loire) h Jul} IX':? :?.511.lll)OF Fu!C!J.:!: AL. lJth :.er.. l!C\4, PS. VI. 174-81 17:'i. A .\\llrtmc,·\ ,\laritim,·., ,111 Globt> Roucn IO Sept. 1104 700.t>l>OF BL. lJ1h ,er.• IX.l4. PS. \'1. .llX-.lO 176. Cwwl ,I,• Jo11c111111 "" la S11111hrc" /'01.H· Pari, .:!O O~t. 110-4 11.:'iSO.t)()()F: p:674:'i; BL. lJth ,er .. IX.l4. PS. \'1. 654 -6-4 177. Pont ,It• .\111r,•1 Toulou,e 'l Nm. I X.l4 I :'i:'i .(>IIOF p:6748; BL. lJth ,er .. IX.l4. PS. VI. 740-50 178. A.\.\1/rtmces nmtn• la Grc"/1· po11r I,· lJt'f'I. d11 Nord 21 Jan. 18.l:'i I .£X>l>.l>t>llF BL. 9th ,er.. 18.l:'i. PS. VII. 74-85

Lille

17'1. Compagnit• d,•s Tmi.f C,1111111.t P.iw, J Mar. 18.l:'i 17,6()(),()()(IF (merger of nm,. 67. 68, and 100) 1 P 674t1: BL. lJth ,er.. 18.l:'i. PS. VII. 66lJ-71h

,I,·

180. /'0111 U,1111110111 Bordeau, I :H>.t>l>tlF I IJ Mar. I !O:'i p:'1748: BL. lJth ,er.. IX.l:'i. PS. \'II, h.lX-48 181 / 1,mt ,I,• Sa1111-J,•a11 d,· /lla.i:nac Borde,1u, JO Ma) 110:'i .240.()()(lf' p:67:'ih: BL. lJth ,er.. IX.l:'i. PS. VII. lJ4:'i-5.2 18.:! /l,11u111,· d,· l._wn L)nn ,2lJ June I Sl:'i .2,()()(),()()0F BL. lJth ,er. IX.l5. 2d pt .. XI. h.l-71 18 l l',,111 ,Ir 1'11/,·""" Toulou,e JO June IXl:'i 170,lll)OF l·i:(J7-l8. BL. lJ1h ,er. IXJ:'i. PS. \'II. IOX-17

I 1.59J

[ I 60]

Appendix: Societes A11011ymes, 1808-1867

184. Paquebots a Vapeur sur la Seine Havre 15 July 1835 300.000F F1 26764; BL. 9th ser .. 1835. PS, VIII. 177-205 185. Papeterie Mecc111iq11e de M011tfo11rat Bordeaux 13 Sept. 1835 800.000F 2 F1 6736: BL. 9th ser.. 1835. PS, VIII, 454-65 186. Po111 de Condrieu Condricu (Rhone) 19 Sept. 1835 214.500F F1 2 6748: BL. 9th ser.. 1835, PS, VIII, 498-504 187. Banque de Marseille Marseille 27 Sept. 1835 4.000.000F BL. 9th ser.. 1835. 2d pt.. XI, 316-27 188. Chemin de Fer de Paris a Saint-Germain 4 Nov. 1835 6.000.000F BL, 9th ser.. 1835. PS, VIII. 845-54

Paris

189. Trois Pollts s11r le Lot Bordeaux 11 Nov. 1835 500,000F F1 2 6750: BL. 9th ser.. 1835, PS. VIII. 861-73 190. Polll de C11b::.ac sur la Dordogne Bordeaux 17 Dec. 1835 2. 900.000F F12 6750: BL. 9th ser.. 1835. PS. VIII. 954-80 191. La Securite, Assurances Maritimes Paris IO Apr. 1836 I .500.000F BL. 9th ser.. 1836. PS. IX, 313-27 192. L' /11demnite, Assurcmces Maritimes Paris 27 May 1836 1.000,000F BL. 9th·ser.. 1836. PS. IX, 507-14 193. Assurances Maritimes de la Pair Havre 27 May 1836 1.000.000F BL, 9th ser., 1836, PS. IX. 517-31 194. L' Union des Ports, Assurances Maritimes 27 May 1836 5.000.000F BL. 9th ser.. 1836. PS. IX. 565-80

Paris

195. Assurances Maritimes Hm·raise et Parisie1111e 3 June I 836 1,200,000F BL. 9th ser.• 1836. PS. IX. 597-620 196. Banque de Lille Lille 29 June 1836 2.000.000F BL. 9th ser., 1836. 2d pt., XIII, 229-37

Havre

App~ndix: Socit•tt•s A11011ymcs. 1808-1867 I ll7. l',1q11,·b,,tJ a l',11'1'1tr ,·111n· It· limn• ,·r la l/11/la111fr 29 Junt: 1106 ..tOO,(l()(IF p:h7CH: BL. 1>1h ~a .. 1!06. PS. IX. 810-17

Ha Ht:

IIJl'i. Pont de l'a/cm·,· L)on 19 Jul) IXJ6 569.S67F p:t,7SO; BL. l/1h ,t:r.. I 8J6. PS. X . ..tl/-S8 I11l/. A.uurann• l:'lbt'lll"i1•m11· (/namlit•) Elht:uf 6 Aug. I !06 :! ,()()(l,()(lOF BL. lJth ,er .. 18Jti. PS. X. IJ2-..t."\ 2110. falmc,1111111 ,/11 S11crt' dt• llt-11am·t• ~tdun 7 Aug. I 8J6 200,()()(IF ( Ji"oh eJ I 8JIJ I F'~67JI: BL. 9th ,er .. l8J6. PS. X. 1-45-52 :!O I . Tmi., Pmlll .rnr C lwrt•11tt'. /' !Jft,. t'I Dordogm• 2S Aug. I 8J6 7 JO.l)()(JF F' 2 6750; BL. 9th !ooer.. I 8J6. PS. X. 257-71

Bordeaux

202. 1',1111 dt· H,•,mrt•g,ml ~k!oo,illl) (Aini 2S Aug. I 8J6 1· 1:67SO: BL. 9th ,er .. 18J6, PS. X. 29..t-JOI :!OJ. Edairagc JJtlr It• Ga:. ll_nlmg,•111• pour It· l'i/1,• dt Lyo11 2-t O.:t. I8J6 75..t.()()(IF BL. 9th ,er .. 18Jti. PS. X. 8..tlJ-59 1

20..t. Che111111 tit• Fer de Mo111bri.mn Cl Momrmul ."\I Jan. 18J7 250,lX)(IF BL. 11th ,er .. I 8J7. I'S. XI. 81-9..t

Lyon

Montbri!ooon (Loire)

205. llali11t'J ti,· Cl11itt•t11,-Tl1ierry Chateau-Thicr() XFeb. 18J7 60,()()()F l-' 2 ti75 1>: BL. '1th ,er.. 18J7. PS. XI, 9..t-106 IO .I )()(J. ()()( >F 27 Feb. 1837 BL. 9th ~r .. IXJ7. PS. XI. 225-JX

207 1./oytl I r,mrm,. AH11r,111n•., Maritim,·., 16 ~ tar. un 7 6.< )()0.()()()F HL. lJth ,er. 18)7, PS. XI. 27J-8J

Pari,

20~. /'11111 ,/,• /.fr,mg

Orl~an, J20.l)()(IF 21 ~1Jr. 18)7 1· 1:6752: BL. 9th ,er.. 18."\7, PS, XI. 28lJ-IJ5

21lll l.'Amc/111ra111111 ,•r /'/:dm 11111111

d,•, Ch,·,m,., ti,• L,u,• de R,,,.,.

I· r,m\ mi,· Pan, 21J .MJr 18J7 ..tlK),lKXII· HI., 11th ,er .. 18J7. PS. XI. J21 "\I

116 I)

[162]

Appendix: Societes Anonymes. 1808-1867

210. L'Ocea11, Assurances Maritimes Paris 29 Mar. 1837 1,000,000F BL. 9th ser.. 1837, PS, XI. 417-28 211. Raffmerie Alsacienne Strasbourg 28 Apr. 1837 300,000F F' 26731; BL. 9th scr.. 1837. PS. XI. 600-607 212. Compagnie Hm·raise pour Bats et Concerts Havre 8 May 1837 154,000F F' 2 6794: BL, 9th ser.. 1837. PS. XI. 593-99 213. Pont du Carrousel Paris 20 May 1837 F' 2 6751: BL. 9th ser.. 1837. PS. XI, 609-16 214. Paquebots a Vapeur entre Hm·re et Londres Havre 21 May 1837 600.000F F' 2 6764; BL. 9th ser., 1837. PS, XI, 6 I6-26 215. Pont de Sai11t-Thiba11lt Saint-Thibault (Cher) 27 May 1837 446,000F F' 26751: BL. 9th scr.• 1837, PS. XI, 633-49 216. Paquebots a Vapeur emre le Ha,·re et le Porwgal 9 June 1837 502.000F F' 2 6764: BL. 9th ser., 1837, PS, XI, 649-59

Havre

217. Paquebots a Vapeur e,ure le Hai·re et Caen Havre 25 June 1837 250,000F 2 F' 6774; BL. 9th ser., 1837, PS, XI, 672-82 218. Pollt d'Avig11011 sur la Durance Lyon 2 July 1837 F' 2 6751; BL. 9th ser.. 1837, PS, XII, 402-10 219. Paquebots a Vapeur cle Bordeaux au Ha,·re Bordeaux 6 July 1837 350,000F F' 2 6765; BL. 9th ser.. 1837, PS, XII, 471-77 220. Forges de Framollt Framont (Vosges) 1,600,000F 7 July 1837 F'"8233; BL, 9th ser.. 1837, PS, XII, 454-63 221. Banque de Havre Havre 25 Aug. 1837 4,000,000F BL. 9th scr.. 1837. 2d pt.. XV, 5!0-16 222. Chemi11 de Fer de Paris. Meudon, Se,·res, et Versailles (Rfre Gauche) Paris 25 Aug. 1837 8,000,000F BL, 9th ser.. 1837, PS, XII. 613-24

App~ndi\: Socic·tt'S A1w11ymc.,. 1808-1867 ::!:!J p,,,,, ii,· lk1111n11n· Borde:1u, JI Aut!. I X-'7 F':h751; BL. lJ1h ,er .. 18J7. PS. \II. h.25---Ul ::!:!-I C,111111ag111e· R11111·111111iJ1' pour le R1·11111r1111t1gt' c/e·.1· Nai1T1'.I' 7 Sep1. I tl.'\7 J:!5.000F p:h765; BL. l}[h ,er.. 18J7. PS. \II. 661-67

Roucn

:!:!5 Cl111111bre• 11' A.1.rnr1111n·J Mariti1111'.I' Pari, 16 Sep1. I 8J7 J.000.lklOF BL. lJ1h ,er.. 18J7. PS. XII. 789 98 :!:?6 Forge·., ct F1111dcrie•.1 1/'A.rnr ,\\al (Audc) Ill Scpl. I SJ 7 -1:!0,000F P~X:!:! 1J; BL. lJ1h ,er .. 18J7. PS. XII. 10-IJ--llJ :!:!7. /krl111e•.1 d1• Cac11 a l'11ri.1 Caen IJ (kt. IXJ7 100.lkKlF F':6758; BL. lJ1h ,er .. llU7. PS. XII. H:!-1-JI :?:!X S11aa1e· efr lfrrg1•r1ll' B'-•rgeral· IllO,IKltlF I:! :"l:o,. 1H.'\7 1 1· :6731; HL. lJ1h ,er.. IXJ7. PS. XII. 858-62 :!:!'}. /'11111 di• Fe•r tit• R11111•11 Roul'll I:! :'l,:m. 18.17 F':6751; BL. lJ1h ,er .. 18J7. PS. XII. IJJJ--11 2.10. Ch,•111111 dt· Fa tie l'ari.l' a S11i111 Clmul 1•1 1'n.will,•s 21 :'l,:m. I HJ 7 I I ,()(Kl.lklOF BL. 91h ,er .. IH.17, PS. XII. 1H7-:!.'.'i

( Rive Droil l

:!J). c,,,,,,,11.i:11ie· ,\'e•11.,rrie•1111e· flOllr It•.\ l'aq11t'lwt.\ 1•ntre· 1/11\'rt' l/m1jl,·11r lfinre :?H Nm. I HJ 7 J(Kl,IKlOF (-100,llOOF. I HJ 1}) F'z6 76.'.'i; BL. 1J1h ''-'r.. I HJ 7. PS. XII. 1JM- 7 J :! l:! Cl,e·m111 de· Fa 1/c- /lordc•,111.\ a /11 Tt:111• :!5 Fell. I HJH 5.arl', 19 Mil) 18-'I 12.Cr .• 184:?. PS. XXI. 51 1)-.l.5

Pari,

r /11n·1111i1· Pari~

248. IA· Drag1111, A.1.rnrimn·s ,\t,,n·r,·1111·., Puri, 8 !\la) I 842 I ,400,(l(KIF BL. 9th ,i:r .• 1842. PS. XXI. .541-5J c/1· .\'1•11M,111s Di,k (Jur:1) 14 !\la) 184:? p:6754: BL. lJ1h ,er .. 1842. PS, XXI. 5.56-62

2lJIJ 1'11111

J(XI. ,\t,,11•.1 d1• D1•ci;:1•

!\h:11

17 !\la) 184:? 41)(1 ~hare, 1 P~8::!.J::!.: BL. J1h ,er.. 184:?. PS, XXI. 655-67 JOI. M111n di• /{11111111· c/'A;:i11cmm Anichl' (Nord) JI Jul) 184::!. 1.5()() ,harl'~ F"S::!J::!; BL. 1J1h ,l·r., 1842. PS, XXII. 73-lJO JO:?. 1-."dmrog,• 1/1• /11 l'i/11• ti,· Tour., /Wr /1• Ga;: JI Jul) 184:? 3110,()()()F BL. 91h ,l·r .. I !U:?. PS. XXII. 1Xl-lO::!

Tour~

JOJ. J1111m11I Ii· Courricr de Lyon Lyon 6 Aug. 184:? J:? ,()(IOF BL. 1>1h !>Cr .• 1842. PS. X\11, 121-24

,,,,r

l()4 l:clmw,,:,Ii· Ga;: ,I,· S11im C/111111m1tl 20 Aug. 1842 1.50 ,hare, BL. lJth ,er.. I84:?. PS. XXII. :?4.5-.5J

Saint Chamnnd

J05 T/11•1itr1• er Smm Am11111I Saini Amand (Cheri I J Oi:t. 184:? JlUXHIF p:t,7tJ4: BL. lJ1h ,er .. 184:?. PS. X\11. J77-8.5 lO(i Pam d,· /'1111illy L)on 12 NO\. 184::! J20 ,hare, p:t,7.5J. UL. 1J1h ,er .• 1842. PS. XXII. 41J-21 l07 _ ,\.tm,/111 11 I 'c1p,·1ir ii,· /'awe/,,• L) on ~ (kc. I84 2 2411 ,hare, p:t,72~; BL. lJ1h ~r. IX42, PS. XXII . .5:?lJ--0

[ I 69J

[ 170]

Appendix: Socieres A11011ymes, 1808-1867

308. Chemin de Fer de Rouen au Hm·re Paris 29 Jan. 1843 20.000,000F BL, 9th ser.. 1843. PS. XXIII. 161-82 309. Societe de Culture de la Dombe Montluel (Ain) 31 Jan. 1843 830.000F F1 2 6787; BL. 9th ser., 1843, PS. XXIII. 193-200 310. Compagnie Bordelaise d"As.mrcmces Maritimes 22 Feb. 1843 1,000,000F BL. 9th ser.. 1843, PS. XXIII. 353-68

Bordeaux

311. La Fortune, Assurances Maritimes Le Havre 17 Apr. 1843 600,000F BL, 9th ser., 1843, PS, XXIII. 645-55 312. La France, Assurances i, Primes sur la Vie I 8 May 1843 3,000,000F BL, 9th ser., 1843, PS, XXIII. 759-79

Paris

313. L'Aigle, Assurances colltre /'lncendie Paris 18 May 1843 2,000,000F BL. 9th ser., 1843, PS. XXIII. 865-75 314. La Reparatrice, Assurances i, Primes contre /'lncendie 23 May 1843 2,500,000F BL, 9th ser., 1843, PS. XXIII, 875-95 315. Comptoir Parisien d'Assurances Maritimes 15 July 1843 500.000F BL, 9th ser.. 1843, PS. XXIV. 49-58

Paris

Paris

316. Chemin de Fer de Marseille i, A,•ignon Marseille 29 Aug. 1843 20,000.000F BL. 9th ser.• 1843, PS. XXIV. 169-97 317. L' Union, Bateaux i, Vape11r emre Ro11en et la 8011ille 14 Sept. 1843 240,000F F12 6766; BL, 9th ser., 1843. PS, XXIV. 388-95

Rouen

318. La Patemel/e, Assurances i, Primes colltre /' lncendie 2 Oct. I 843 3,000,000F (6.000,000F, 1856) BL, 9th ser.• 1843, PS, XXIV. 395-409

Paris

319. Ho11illeres de la Cha:otte et du Tre11il Reimis Paris 27 Oct. 1843 3.500 shares F14 823 I; BL, 9th ser., 1843, PS, XXIV, 543-58 320. La Gironde, Assurances Maritimes Bordeaux 25 Jan. 1844 1,500.000F BL, 9th ser., 1844, PS. XXV. 253-72

ApP'!nLlh.: Sod.tKK)F Bl.. 9th ,c:r. HU-t. PS. XX\'I, 2-tl-51

112. /,., /lmtHol,•. A1.rnrt111a1 ,\foritim,·'i llaHc :?t, Au~. 18.l.t I ,(U).(KIOF Bl.. 'hh ,er. IX-4-l. PS. XX\'I. :?51-61

ti,·., Soci,•tt'.'i

( 172)

Appendix: Societes Anonymes. 1808-1867

333. Le's De11x M011d,•s, Asrnra11n•s Maritimes 26 Aug. 1844 600,000F BL. 9th scr., 1844, PS. XXVI. 262-74

Havre

334. Pont dt• Vnwriq11e Toulouse IO Sept. 1844 F12 6753: BL. 9th scr., I 844, PS, XXVI. 306-14 335. Compagnie d'Oursrnmp Paris IO Sepe. 1844 850.000F F12 6733: BL. 9th scr .. 1844, PS, XXVI. 314-25 336. la Co11fiance, As.rnrances a Primes co11tre /' lnandie 16 Sept. 1844 2.000.000F BL. 9th ser .. 1844, PS. XXVI, 372-86 337. la Prol'ide11n•, Assurances sur la Vie H11111ai11e 6 Nov. 1844 3.000,000F BL, 9th scr.. 1844. PS. XXVI, 529-64

Paris

Paris

338. Pofll de Vfroin Vivoin (Sarthc) 8 Nov. 1844 200 shares F12 6753: BL. 9th !>er., 1844. PS. XXVI. 565-72 339. Pout ti' frry Paris 8 Dec. 1844 F12 6756: BL. 9th scr.. 1844. PS. XXVI, 845-57 340. Compag11ie t/11 Rlt(me, Sen·it·e dt• Bateaux ii Vape11r 25 Dec. 1844 540.000F (640.000F. 1846) 12 F 6770: BL, 9th !>Cr., 1844, PS, XXVI. 864-72 341. L' Urbaim•, As.mranc£'l' sur la Vie Humaine 10 Feb. 1845 5,000.000F BL, 9th ser., 1845. PS, XXVII, 148-66

Lyon

Paris

342. Clte111i11 de Fer de Paris i1 Sceaux Paris 23 Feb. 1845 3,000.000F BL. 9th ser.. 1845. PS, XXVII. 177-94 343. Bie11fai.wmte, Assura11ces ,'i Pri11u·s nmtr ,han:, 1· 1267hll. 67hl: BL. I Ith ,er .. 1855. PS. V. 3--'lJ 61 -t 1J:? . .\11111·., d1• Sl'I 1•1 S11li111•., ,/,· Rosia,·., 1•1 I'aw1g1•1·ill1· 15 :i.1.ir. 1855 imo ,hare, 11 f 8:!J2; BL. I Ith ,t·r .. 1855. PS.\'. 71J-:!5

Nan\."y

-tlJJ. C111111111i:m1• G1•111•ra/1• .\lariti1111• (C111111111gni1· G1•11a11/c• Trnm111/1111th1111·. /Sf>/ I P,iri, :! ~la) I X55 JO.l)()().()(l()F F'::6772. 677J; BL. I Ith ,er .. 1855. PS.\'. 87lJ-9J --''J-t L1· R1•w1i11n. ,h.\ura111·.,· M11riti1111·.\

Pari,

b.0()(1.()(IIIF 6 June I X55 BL. I l1h ,er .. 1855. PS. VI. JJ--t-t -t 1J5. Ch1'111i11., d1• Fad,· /"0111•st P:iri, 16 June 1855 150.IMM).()()Of (mergt'r or no,. 188. 2:!2. 2.,0. 268. J08. J65. -t27. :ml.I -tJ7) BL. I Ith M.'r.. 1855. PS.\'. 11:!I J-t -tlJb. J:"d11irag1• par

It• Ga::. de le, Viii,· tfAlt,is 22 June I855 8--'ll ,hare, BL. I llh ,er .. 1855. PS. VI. -44-SJ

L)on

--''J1.

Ch1·111i11 d,· Fa t/1• Mm11h1r11n 11 ,\1o11/i11.,·

Pari,

B June I855

22.()()().()()()f BL. 111h ,er .. 1855. PS. VI. 81-lJ-t

-t1J8. /:A/1111111,r 1/1• lkmff11i.t Be,1u\.ii, :!7 June 1855 I ."lO.()(IOF (Jiw,heJ I867) P 2 6788; BL. I l1h ,er.. 1855. PS. VI. lt,4-73 -t 1N. M111n d,· Ch11rh1111 Minaai d1• /11 M11ynm1• et d1• /11 Sart/11· IJ.:?()(I ,hare, 4 Jul) 1855 F"8:!J--': BL. I llh ,er .. 1855. PS. VI. l9J-208

L,1,al

51)(1 Ch1•111i111/1• Fer 1/1•, Art/1•11111•.t t't tit• /'Oi.H· (Cl11'llli11.,· d,• Fa d1•.t tlrd,•11111•.\. /c'i57J Pan, 11 Jul) I 855 21.IM>.IM>OF 16J.()()().IM>F. 1857; --':!.l>8, BL. I Ith ,er. 1855. PS. \'I, J8-t-lJ-t

P11,111d1111\ 11

[186)

Appendix: Societes A11011ymes. 1808-1867

503. £aux du Hal're Havre 4 Aug. 1855 1,500,000F F' 2 6785: BL, 111h ser.. 1855, PS. YI. 394-407 504. Chemin de Fer de Bess,•ges a Ala is Paris 16 Aug. 1855 4,000.000F (6,000,000F. 1857) BL. I llh ser .. 1855, PS. VI, 517-30 505. l' Eole, Assurances co11tre h•s Risq11es de Nal'igatio11 Maritime et /111erieure Paris 29 Aug. 1855 1,000,000F (2,000,000F. 1863) BL. I llh ser.. 1855. PS. YI. 565-74 506. Tattersale Fra11raise. Co111pag11ie pour le Ve/lie des Cltemux et Voimres Paris 19 Sepl. 1855 1,400 shares BL. I llh ser.. 1855, PS. YI. 625-33 507. Mines de la Grwu/'Comb,• Paris 3 Oct. 1855 24,000 shares F' 4 8230; BL. I llh ser.. 1855, PS. YI. 662-72 508. Compaguie Parisie1111e d' Eclairage et de Clwuffrage par le Ga::. 22 Dec. 1855 I I0,000 shares BL. I llh ser.. 1855, PS, YI. 1166-1201 509. Eclairage par le Ga::. de la Ville de Sai111-Q11e11ti11 13 Feb. 1856 I ,000 shares BL. I llh ser.. 1856, PS. VII. 193-203

Paris

Saint-Qucnlin

510. l' /11de11111ire. Assura11as co111re Jes Risqul's de Nal'igatio11 Maritime er /111erieur£' Paris 7 May 1856 2.000.000F BL. I llh ser .. 1856. PS. VII. 792-802 511. Verreries de Plaim·-de-Valscl, £'I de Va/Jerysrlwl Yalleryslhal (Meurthc) 7 May 1856 1.000.000F F' 26738: BL. I llh ser.. 1856. PS. VII. 818-30 512. D0rgog11e, Assura11as courre /es Risques tie Navigation Maritime er lmerieure Bordeaux 7 May 1856 1.200,000F BL. I llh ser.. 1856, PS. VII. 864-76 513. Verreries d'Epiuac Lyon 14 May 1856 400.0ClOF (500,000F. 1858) F' 2 67 41; BL. I llh ser.. 1856, PS. VII. 886-98 514. l' Abeille Bourguig1101111e, As.mra11ces i1 Primes co111re la Grefe Dijon 25 June 1856 1,000.000F (3.000.000F. 1857; 6.000.000F. 1858) BL. I llh ser.. 1856. PS. VIII, 49-61

ApJ)\:nJi,; S0cic1t·J

A11011y111,·.\·.

515 Cl,, 111111 clc I- a , t /),,,I..\ cl,• S,11111-011,·11 11 Jul~ 11\)(i 211,11(111 ,h:m:, BL. I Ith ,i:r. IX56, PS. \'Ill. 2tJlJ 20

1808-1867

j 187 I

P.iri,

'I ti C,,11111c1i:111c ,\/ar.\1·1/1111\I'. ,·h.\ll/'11111·1•.\ ;\111r1111111•.\ 2 Aug I X5h 500.000I· BL. I Ith 'l'r. IX5h. PS. \'Ill. 321-JI

7'. lar,1.'ilk

, 17 />,1111 cl,· la /"1111,·-Cl1t1111c er Ang,.,-.\ Pan, It, .1>F F1:fl778: HL. 11th ,er.. 18:'ilJ. PS . .\Ill. 968-HJ :'i-ll. /'on, ti,· .Wan,•1/11• P.tri, l:'i.(KK).()()(lF (111.:rgi:d \\ilh no. -l90 lfl Aug. 185lJ p:t-,7SI; BL. I Ith ,.:r .. 1S:'i 1J. PS. XIV ..182-92

Pan~

IO

form no. :'i8S)

5~J. ,•h.u1r11111 ·,· 1 ,\f11rit11111•.1 ti,· llortl,·wn Rordcau, 16 Aug. I 8.S4 1.F HL. I I th !>l:'r.. I 85lJ, PS. XI\'. 392--lO-l :'i-l~ L· S,·p1111u·. Au1m111a.1 .\111ri1i111t·.1 11.ari, l .lKX),lX>OF 14 Si:pt. 1859 BL. I Ith ,er.. 18:W. PS. XI\'. 590-601

5-l5. Moga.\111 G,·11aal ,fr.1 S111t'.\ ti,· L_,·1111 Mt1,,,:1/\III.\ ,fr.I SOit'.\, / ,W,3) 1.S5ll.1l1X>F llJ Ot:1. I 85 1J

L}on (S0,·1,·1t· L_,·0111111iw ti,•

BL. I Ith i.cr.. 185\J, PS. XIV. 8X2-% 5~6 Co1111111,,,:111,·

/1111-rtll.H'

,It· Mt1g,ui11.1" / 1 11blic.1· 1•1 ,It· ,\ftl,,,:t1si11s

Jfa, re I .500.IXX)f ( J,()()(l,OOOF. 1861: -l.500.lXX>F. I 8flJ) I 85 1J BL. I Ith ,a., Di5lJ, PS. \:I\', lll7J-S-l

Gr111•rt111.1 I .l

~tll\.

,I,·

Mmw11.1-.,11r-S1•1111• "~7 C11mpt1,,:111,· d1•1 1;·1111.1 2511,()()(l(5 l.k·l'.'. 185 11

P.iri,

l-l'Zt,784, BL. I Ith ,er. IS:'ill, PS. XIV, 1182-% "~S C111111111,,:1111• Gr111•n1fr ,k 0111111/m., ,Ii· ll1ml1·111n I. lOb ~harc1, 7 JJn I Stl4l l-':ll75lJ: BL. I Ith ,er .. l! :!IApr.1860 F' 4 8233: BL. I Ith ~er.. 1860. PS. X\'. 794-803 551. Le Circle Commercial. Assurances .\/aririmes .:?5 June 1860 2 .000.000F BL. I Ith ~er.. 1860. PS. X\'. 1136~4

552. Chemin de Fer de Lyon a la Croix-Rousse 2.000.0-77

f

h-l 1 .\/11110111· a /11111 .,•fon /u·

Pan,

X June 18h7 J.()(MI.IMKIF l-':67XJ, BL. I Ith ,er .. 1Xfi7. PS. :'\XIX. l-lh0-61>

()42 C/11·111111 ,/1• I· er ,I1.-r1t1l1m11 d,·., 1r1/111111111.t d,• c11.11,11w11 ,., 1/' tlf'f't'I, tll'.I 1rih1111wu 1•1 co/lJl'il.1 di' •. Onl) hricf fragment.., of the Ji'cu"wn, JrC' rcl"incJ m thc,c \ olumc .... ,; I lh1d . I: 1.i two !>eparate companies. one for marine insurance, the other for fire (BL. 7th ser.• 1820, Ist sem .. 738-39). 12. Emile Vincens. £xpositio11 raiso1111ee de la lrgislatio11 co111merciC1le, I :245-46. 13. Bertrand Gille. la Banque et le credit en Frcmce cle I 8/ 5 i, I 8-18, pp. 89-91. 14. Ibid. 15. Ibid., pp. 129-31. 16. F' 2 6825. 17. A large advisory body attached 10 the ministry of commerce, the Conseil General de Commerce was composed of prominent businessmen. Twenty of its members were appointed by the crown, and each chamber of commerce, of which there were thirty-one in 1821. named one member. In 1821 there were six vacancies in the first group and four in the second (Almanac!, royal. /821. pp. 161-62). 18. F1 26825. 19. Ibid., min. of fin. to min. of int., 19 Oct. 1822. 20. BL. 7th ser., 1818. 2d sem .. 278. 21. Fernand Lepelletier. Les Caisses cl' epargnes. p. 22. 22. Robert Bigo, Les Ba11q11esfra11raises a11 co11rs de X/Xe siecle, pp. 203-4. 23. Ministere de !'agriculture et du commerce, Rc1pport c111 Presitlem de /Cl Republiqlle sur /es caisses c/'epargnes. A1111ee /8-17. pp. vii-viii. 24. F1 4 8232. Rapport du ingenieur en chef du Corp Royal des Mines (de Mattieu). 16 Dec. 1816. The implication is that an anonyme would be cost conscious in its mining methods and more interested in immediate profits than in a rational exploitation aimed at extracting all the coal. 25. Ibid. 26. Ibid. 27. F1 26739. These motives appear a!> an introduction 10 the company's draft charter. 28. Ibid. 29. Ibid., letter from Desrousseaux to Count Chaplal. 3 Apr. 1815. 30. BL, 7th ser.. 1818. Isl sem .. 177-99. The sixty-four bearer i.hares could be !,Ubdivided into coupons of 2,500 francs. 31 . Banque de Bordeaux: BL. 7th scr.. 1818. 2d sem .• 725-60. The 3,000 shares of the bank were divided among 160 shareholders. The smallest holding was 5 shares. the largest 25. Pont de la Dordogne: BL. 7th ser.• 1818. 2d sem., 411-25. Pont de Bordeaux: BL, 7th ser.. 1818. I !>I sem .. 289-98.

'2 HI.. "7th ,.:r . I 1'I I,. 2J ,,:m . '"J 7h ln1t1JII). l·,11.:h 111 thl' 11ragm;1I ,h;ird111IJ.:r, ,ut,..,n1'1',•J h•r t\\,1 1'1'.•.m:r ,hJn:, h•r ,:,,:~ r.:g1,1.:r.:J ,har.: rh,·r.: ,,a.: I '5 ,hJr.:· h,•IJ.:r, ' ' Th,• 10.·,,mpkt.: r.:..:11rd, ,,1 th.: 1111111,tn.:, 1,1 ..:11111111.:r,·,· anJ pubh,· "or~, ..:onlJIO "'m,: 1nh,rmJt11111 ,,n at...•ut ,l\t) .:111,·rpn,.:, tlut J1J 11111 r.:..-.:1,,: .n11h,•r11a1111n 'J Gill.:.,.. , /111111111,· ,., rc,/11. pp '"' 29. '" 111.:rr.: J PriiuJh,in. \la11111·I ,/11 .\('l'l 1111111•1,r a la bn11T.11·. p. 271 '" I h.: pJni.ipJllon ,hJr.:, ,,.:r.: ,·,.:ntuJII) pur..:h;a,,·J b) th.: !!ll\.:rnm.:nt Jurmg 1h.: t:Jrl) )t:Jr, ,,r th.: S.:.. ,nJ I· mp1r.: n p:t,771. l·.:h, Rl\t:I. '·" ,\1111i:,111011 II '"l' l- 14 S:?.l.l. Rapport au Con~1I General Jc, ~tinci.. 11 Dec. 18::?::?. 11(1. F' 4 X:?.U. A\I, Ju Con,c1I Gcncral Jc, Minci.. JI Dec. 18::?::?. 91 F14 8:?.H. RapJl'lrl au Cnn,cil Gcncr.il Jci. :-.line,.::?.'\ Apr. IH::?7. '>:!. lb1J •n. P 4 X:!l.l, ""' Ju Cnn,e1I Gcncral Jc, Mine,. JO :-.lay IHJI. 114 1· 14 X:!.l.l, RapJl',n au Con,cil General Jc, \lmc,. 14 Ma) 183::?. 115 lb1J 'lb f.11q11,;1r 11,r l,•1 /u.t ,fr /8:!8 (Pan,. llC111. 4un1cJ in HcnranJ Gille. u, S11lu11ri:1r fr,111~·,mr 1111 .'(/.'(r 111·1·/e, p. ww11.,. 13 Aug. 1837, p. 1()08. 47. Gcorgel, Ripen, Asp,·,·ts j11ridiq111•s c/11 c·a11ita/is11w 111od,·r111•, p. 58. 4K. Andre Cochut, "I.a Politique du libre cch:mge," p ..H2.

111,,,,,,,..

4•1 l'Jul I h1m.-.111 l>;m~m. /11,,,,,,,. ,I,· I,, /111· ,/,· J1111/,•1, \ 2 lK 4 I; ~l.1n:l'I ~IJn,•n. /In,,,,,,. 1111,111,-1,·rc· .t,· 111 /-,,,,,,.. d,·1•11n l7l'i, 'i: 17 11 xt,, l.1111k l.,:\,1,":11r. llntoirr ,I,, ""'""•'" •· ,/,· l,1 /-r,11111·. 2. l'/11 The.- ild,:,11, 111\oh,:J th,: lll'll"on lor th,: "1J,,,._, ,11 Ci,:nl·ral l>Jmr.:111on1 rn h·hru,ir). th.: n:1.:d111111•I .111 1111port;1111 r,11lro,1d h1ll 111 :'-1.i), .mJ th,: P•""1~,: ol ,1 d.:hc l"Oll\l'r,1,,n hill O\l'r thl' l,?O\l'rllllll'III", oppo,111011 tll,\IFIIR4 I lhl· 111,11n l'il-111,:nh ol tlw IX42 l,t\\ \\l'rl' pl.mn,:il h} an ,:,tr.iparhaml'lll,ir) u1111 lllllll'l' rn l,11,: IX N .11111 l',irl) I K411. Sl"l' kan-l'aul ,\ilJm. lm1c111n111m1 ,/,· I,, ,,,.1111,1m· ,In, l1,·1111m ,I,• 1,·r •• ,, I· r.m, ,·. :iml Allr.:d P1l;ml. I.•·• Cl1c·111111., ,I,· /1·, /rnurm.,. \ol I. 2 Arthur 1.oui, 1>1111hJlll, /"Ir,• l11,/11ur111I R,·1·11111111111111 l·r,111,·,·. 181.'i IX.JS. p. h.:! .l lh1J . pp 76 77 4 H1hho1hc1.fUl' J,: 1'111,111111 ill' l·ranl·,:, l'apr.:r, C.ir,:111:. MS 47.'.'il. A G 1\11h,:, "SoU\l'nlr, 1111 p,1,..,.,g,: dl' IK 11101, ,111 C'on,,:11 J'L1;11," pp til t1.l. 'i lh1J , p '"' ,, lh1J 7 lkrtrJnJ Gille.'"' /11111,1111• ,., I,·, /-r,1111 ,. ,/,• 181 'i 11 /,'1,.J8, pp. l'J2 •J.\. K '"' C,·111,·11,1,r,· ,I,· /'( 11111111, (',,,,,,,,,g1111• ,/'A\\ltflllll I'.\ " " /11 V11· //11111,1111,·. IX2 1) /IJ.:!IJ,p 17 ll On the n,c ,mil 1kd111c of h1111m.:, Junng th.: I K411,. ,cc V Senn, /.4•_,. 01·1.i:11w, ,/n , 0111p11_,:111,·, ,I' ,n ""'"" c•, /0111/1•1•1 ,·11 /- ,,,,,,.,. 1/1·111111 I,· XJ'//1• u,•1·/1• 111.11111· 11 1111., J«mn. pp ll l l'i Man} nwmhcr, ol the C'on,e1I il'l·.lal \\l'rl' ,l,:p111.:al ;1hou1 hinl111e,. The mailer hr,1 l"Jllll' hc1'11n• thl' C'on,cil m IKlK, 'Ahl'n lhl' Roy:1lc hie i:11111pany rc1.fuc,1cJ 1"1Cn11 ...,1on h• aJ111rnr,1.:r tontml'' Onl) thrcl' 111.:rnhcr, of lhl' 1."0111111111cc ol llllllllll'rl'e \Oll'J m 111\or To a 111a1onl} ol the l·omrnncc,:, con11nc~ n:,cmhkJ lonen.:, anJ hl·ni:e 'Al"rc rmmorJI Th,, Jcl·,,..on "'"' rl'\cr,l•J h) th,: General A,~cmhl} ol thl· Coll'l'll J'I.CJI h) a lllJJllrll} "' uni} onl' \Oil'. B1hh111hc1.jUC de l'hl\111111 d,: 1-ralll'C, l'ap1cr, C.ircllc, MS 47.'.'i I, ,\u~. "SouH·nir,," pp ll .\2. l"hl· l!rll'AIOl,l pop11l,m1y ol 111n1111,·, r.:,uh,:J rn Che I\\Ul' 111 ii rl'l,?Ul.ilor) unhn,tnl'C on I~ June I K42. IO IL C r111r11111rc· de· /' l 111011, p I K. 11 On Jcpartmcntal hanl,. ,,:,: Grill', '"' /1111111111· ,., /,· ,·r,·1/11, pp. K'J 1114, ,.:c BcnranJ (iillc', / ...a /111111111r 1·11 /-"r,11111· 1111 XIX,· pp. IK-7.'.'i, for J,:1,111~ on th.: l11unJrn11111 lhl· h.tnl, ,,f 11.rHl', I.ilk. l.}on. and ~t;ir.,...,llc. I~ lcn p.-r..,,n,, c.i.:h 1al1111,? ~IKI ,h:1rc,. ,uh,enhcJ Chi.:' cnc1rc l·:1p11al of lhc It.ml.. ol L) on IHI., •Jth "4.'r I KVi. ~J pc, -..1. fr'i I Th.: l·:1p11.il 111 lhc Banl or l.1llc "JJo ,uh,a1hc1I h) ch1nl·cn p.-N111, 1111.. •Jch ..._.r • I Klh . .:!J pl, \ Ill, 2 l 1). Thl' ,h.rrc, of Che Bani.. 111 Lille "'ere d"1nhu1.:J a11111n1,? 127 ,h;1rch11IJcr, h) l·chruar} I K.lK; ll'n )C:tr, lacer lhl·rc 'Al"rc ll I ,han·holJl·r, 1G1lle. /..11 /11111,1111• 1·1 I,· ,-r,•1/11. p. 1J'iJ. 1 l R,,nJo t'.1111.:ron cl al , /1,1111..111.i: 111 1/11· l .. 11rl\- .'it11.i:1•\ ,,j /111/101r111h:11111111. p 1114 14 G11hncl Ramon, l/n1111rr ,Ir /11 /111,111111• ,/,• /· rnm 1•, pp. l'JK-'JIJ , .. lh1J • pp ~23- ll I h 'flu, lll!Urc ,, hai,cJ upon the mlomplctc J11i,,1cr, rn I hl· ArduH, Na11011al.:,. I 11 t,K2 1J. t,X lO, anJ hK l I 17 One 111 Che.,... 'Aa, thl' C.iu,'C' Jc, Crl•J11 \iu1uch. prnJcl·tcJ h} I hpp11l)ll' Gan· nl·ron and prn1111nen1 h,111ler, of l'.u" 111 I Klll The proJCl I 'A a. app;ircntl} ahanJ,,ncJ hclorc hcm11 ,uhmmcJ co the Cnn'l:11 J'l-1a1 (1· 12 hK2 1JJ. Iii I' GJtdllcr 111 mrn ,,f l1ll1111-.·ri:c. I l Jun,· IK4'i, rch1me 10 thl' Uam1ul' ,\~nl"nlc I l•uhX1 1J I I'' ~llllll' ol 1ti.....• prnJl'l-lCJ h.inh arc J...._u,.,...J III Gille,'"' /111nq11r ,., Ir, r,·,111, pp 117 111 Mk.I I ~1 Jli

,,.,1,, •.,,

.u,·d,·.

1208)

Notes to Pages 76-86

20. Thi~ ligure is based on the liM of eleven in Benrand Gille. La Siderurgie franraise 1111 X/Xe siec/e, p. 166. I have counted Chatillon-Commentry as one firm. rather than two. The exceptions were Boigues frcrc~ at Fourchambauh. de Wendel of Hayangc and Moycuvrc. and Dietrich et fib in Alsace. 21. FH8229. 22. In fact. the reque!>l failed to clear the preliminary hurdles and wa!> not considered by either the Conseil General des Mine!> or the Conscil d'Etat. 23. FH8229. min. of pub. work!> to min. of commerce, 15 Dec. 1847. Most of the information in the minister's letter was drawn from the repon of Baudin. engineer in chief (Allier). 4 Oct. 1847. 24. F11 8229. min. of commerce to min. of pub. works. 23 Feb. 1847. 25. Pierre Guillaume. La Compagnie ful in obtaining the quotation of its share~ on the Bourse in 1849. 29. Ibid .. pp. 161-62. 30. The dossier of the company. fl 2 6729. contains a large amount of literature, hoth pro and con. 31. Guillaume, La Compagnie des Milles cle Ill Loire, p. 198. 32. Ibid .. p. 208. 33. Ibid., p. 209. 34. Ibid .. p. 185. 35. Family control was facilitated by the provision in its original charter giving the board of directors the right to preempt the purchase of shares sold to outsiders. The company was permitted to retain this provision in 1841, even though the Conseil d'Etat had come to oppose such clauses. 36. Some excellent analytical essays on various aspects of the depression arc to be found in Ernest Labrousse, ed., Aspects de l ICI clepression, I 8./6-1851. 37. Leland H. Jenks. The Migration of British Capital to 1875. p. 148. 38. Louis Girard. La Po/itiq11e .58): I I :l. ____ . 1-·rm1n· 1111d 1l1t• /:'cmwmic O,·r,·lo111m•111 ,~( E11rop1•, /800-/9/./. Prml·c:ton. 1961. Capdigu,:. J. B. 1/utmn• tit's gramlt•.\ 11pa111im1.\ Ji111111ci,•rt·s. 4 vol,. Parb. 1855-60. /..1• C,·111,·11mrc ti,• f" U11io11. C11mp11g11i,· ,f"AHllrtll/1'1'.\ .rnr /11 Vi,· H11nwi11,·. J.''2')-/929 P.im. IIJ::!lJ. Chi:\:alicr. Mu:hcl. ··1n1roduction." RapportJ tics memhrt•s ti,· It• .H•1·1iom jr,mrau,• "" )110' it11,•m111i111111/ .\1/r,. ('//.\('II/"'(' ti,• r l'.\f'O.\itio11. 6 ,01,. Puri,. 186::!. Clou!_!h, Shl•pard H. Frat1n•: ti 1/i.,wry· 11/ Satimwl t·nmomi,·.,. 1789-/939. :,.le\\ Ynrl. ltJ.W. Cod1-174. - - - · "L:1 Sohlc:.,e de France ct le, ,ocii:ti:, par action:. la lin du XVlllc .,,ii:c k ... R,·11w ,J'lmtoirt• ,·,·111111111iq11,• ,., .wcialt• 40 ( I IJ62 ):484-523. R1p,.-n. George, A.,p,·cn 111ri,l1tf1tt'.\ du n1pitali.\1,u• mmlt•m,•. P:iri,. 19~6. R1,et. Fell\ /..1.1 ,\'111"igati1111 (/ l'tl/1('11r .\llr las(/(;,,,. Rluim·. /783-/8()3. Pan,. 1962. R,,,.~re. I hppol) IC Ferrcol. Cmnm,•llfmrt• ,It• la Joi ,,,, 2-1 juill,•t I ,W,7 .\/Ir It•,\ 111,·1,·r,•, Pan,. I XllX. - - - · I:'''"""'"" d,• la Joi du 17 Jttill,·t I 856 rt'lt1ti1',· mn .ml'i,·tt·s ,.,, com111,111,/111•\ i"'r '" 11011c P:im,. 1857. Robert. Adolphe; Uourloton. Edgar; :md Cougn). Ga,ton. ell,. /)inim111,11r,· tlt'l /J,m,. ISOO. \ 11u. ,\ ugu,ll'. G111d,· ji11,1111·i,•r, n•11,·rt11ir,· g,•11,·n1/ ti,•., n,!t·w·., Ji1w11,·il'rt·., ,•r 111d11.,rn,•II,·,. Parh. I S6-L \ uhra. ,\. /11.\fmrt• ti,· la tll'ttl' 1111h/i,111,· ,.,, Fr,111,·,·. 2 "'''· Pari,. 1886. \\'ulcl\""'· Lou,,. .wci,·1t·.\ ,,,,,. a,·riom. Pari'.,. 18J8. \\ right. \'i111.·1.·111 /.,• Com,·il ,/' Erm w11., It' S,•co11,J Empirt'. Pari,. l'J72. 0

D,·,

Index

A ,\c1cr11: n.: ll'rl'. :!.l Han,1uc l·onl·1i.-rc Ji: !\l;1r,c11li:. S4 IJ;m,1uc h111l·1~·ri: Jl· P:m,. S4. Su al.w CrcJ11 F,,n,ll'r Jc l·ranl'O.: B.mng 111 Lo11J,,n. hanl..:r, .l:! lfaro.:hc. Juk,. :!06 (n. 4.11 Hamn. OJ1lo11. 50. 65, 7S lk,nhc. Fdl\, ~X-54 Ba1.:au, i1 \'apcur p1•ur la Na, 1gat1lln Ju Rhim.:. -0 lk,1un1cr. mining l"ngmccr. 46. 205 (n.%1 Rc,hcl-Dl·thoma,. C':fr,~i:. 114 lkh1c. Annand. I.W lkn.irJ. TN .. 112 lkrllnc, Jc C'hatcau Thier!). 125 Herline, !\l;mtai~.:, Al'Cl;kn:.:,. 124, I :!5 Hcl'f). Dul·hc"c Jc. 20~ (n. XI I lklT)cr. An1omc. 206 tn. 4J) lk1hmann ol Franl.fun. h:ml.cr. ):! Hmc;1u. kan !l.lanial. lJJ B1,.:holhhc1111. hanker. XlJ BN1n11nc. Sociclc pour le C'onuncrl'C Jc B,,ul·hcnc. 21J (n. JXI Bl,11,c, Adolphe. IJ4-J5 Bl.mchc. Antoine. IJ4-J5 Rla114111. J. A .. 74 Blum, Da\1J Samuel. '13. 65 H11n;ip;1nc. Loui, :'l:apokon. X5. X7, 111. •Jl, 118. 11 X B11n;1p;1r1c. :'l:apokon. IO. 12. 14.l H,,nd,. X.l BonnarJ. C'.. 112, 210 (n. 74) Bordeau,. Du.: Ji:. 20.5 (n. XI l Boucher. 1'1cm:. :!OO (n 310 Houl;mgl'flC Mcl·am4uc Jc l.1lk ..l'I. 40 H1111n1·. l-'1, coml'd), IOX """"''. '-'' · rcn11J1.:al. ,1\4 Bnur,c "' l~1m. t,. 11. :?t,. 57. 711. 72. 7S. XO Hrc,... m. J.1.:4uc,. 55. HNI Bml~c i:0111pan1c,. 14. 7~. 11'1 Hr11d1a111 Jc \'11l1cr,. mmm~ cngmcl'r. 41. 41\

1227)

[228]

Index

Burgundy Canal, 29 Butler, Nicholai. Murray, xiii

C Cabam1i.. Franc;oii,, 9 Caisse Centralc de~ Societe~ de Credit Mutucl, 89 Caisi.c d'Economic ct d'Accumulation. avcc Assurances dei, Capitaux. 203 (n. 46) Caii.i.e d'Economie et d'Accumulation. de Garantie et d'Amortissemcnt de~ Delles. 203 (11. 46) Caisse d' Epargnc of Paris, 24 Caisse d'facomptc, 9 Caii.i.c de Travaux Publics de~ Entrepreneurs. 213 (n. 8) Caisse de~ Actions Reunis. 90 Caisi.c des Association~ Cooperatives. 118 Caisse de~ Credit Mutuels. 207 (n. 17) Caisse ct Journal des Chemini. de Fer. 91 Caisse Generalc des Chcmins de Fer, 90, I04, 111 Caisse Generale dci; Hallei. ct Marches, 213 (n. 8) Caisi.c Generale du Commerce ct de l'lndustrie, 55, 114 Caisse Hypothccairc. 23. 26 Caisscs d'epargnes, 24 Calley de Saint-P.iul. A. C .. 92. 137. 210 (n. 73) Calonne, Charles Alexandre de. 8 Cambaccres, Jean Jacques, 3. 13. 143. 206 (n. 26) Cameron, Rondo, 208 (n. 47) Canal Aries to Bouc, 29 Canal de Monsieur, 29 Canals, 28-29, 66 Chamber of commerce, 11, 38-39, 130, 202 (n. 64); of P.iris, 16. 17, 38-39, 89, 92-93, I00-101. 144. 209 (n. 62): consultation on authorization of .wcieres ,111011y111es, 38-39, 204 (n. 63): and halance sheets, 204 (n. 68): of Saint-Etienne, 78: of Lyon, 90, 209 (n. 67): of Valcncicnncs. 133 Chamber of Deputies, 67. 78: bill to reform cmt1111a11clires par acrior,s, 58-63, 65, 101

Chambre Con!-.ultatif dci. Arts ct Manufacture~ of Nc\'Cr~. 76 Chambre d'A~l,urancc~ Maritimes, 71 Chaptal. Jean Antoine. 10 Charles X, 42,204 (n. 78), 205 (n. 81) Chatillon-Commcntry. 76-77. 96. I 1920, 128 Chemin de Fer de la Loire. 30 Chemin de Fer de Lyon Avignon, 80 Chemin de Fer de Paris Le Havre, 69, 70 Chemin de Fer de Parii. Orleans, 68. 70 Chemin de Fer de P.lris Lyon, 70 Chemin de i:cr de Paris a Rouen. 67. 70 Chemin de Fer de P..iris Versailles (ri"e droit). 69 Chemin de Fer de Paris a Versailles (rive gauche), 69 Chemin de Fer de Saint-Etienne la Loire, 29-30 Chemin de Fer de Saint-Etienne Lyon.

a a a a a

a a

JO Chemin de Fer du Nord, 69 Chemin de Fer et Docks de Saint-Oui:n. 99 Chevalier. Michel, I 35 Cleemann, Auguste, 63-65 Cleemann, Louis, 63 Coches de la Haute Seine, 204 (n. 69) Cochut. Andre. 100 CC1de cle Commerce, xv, 15, 58, 60, 134, 139, 144, 199 (n. 4): elaboration or, I0-15: and soder,•s en co111111a11clire pc,r c,crions, 12-14, 47-48: and soC"ieres ,mo11_\wes. 14-16; rcvbion of. 141-43 Colbert, Jean Baptiste, 3 Commandirairc•, 3, 4, 13. 48 Commanditairc de l'lndustrie et du Commerce, 93 Commandite par ,1e·ticms. See Societe en

CC1m111a11dite par c,c·ticms Commercial Code. Sec Cocle de CC1111·

merce Commercial tribunal. Sc'I.:, dl' l.i Ru,: Jc: RrH•h C-1•mpagn1c l",m'll'OOl'. •-N C-ompa~nii: R1>}Jk J',\"urani:i:, .:ontri: l'ln.:cndrl', .:!.:!, :!ti, 71 Compa~Oll" Rn} ak J",\"urJOO:l'' M1m11111e, . .:! I .:!:! . .:!6 CompJgnrc Ro}alc J'A"uranl·c, ,ur la \ IC. :!2, :!ti. 71 . .:!(17 (n. 1}) C-,,mr,anrc,, Ln~h,h. lounJi:J m 1-r,rnl·.:, I 1.:! l l Cumrun~ ol l·our CanJh, :!•J C11mp1ri:ri:. l't•unt Jc:, .lti Corp, L.:i1,.l.111L and L;m ol 17 Jul) IX5t,, IOX· 10; and L.iv. 111".:!.l ~1.r) 1Xt,J, IJ5-JX; .ind L.i\\ of 2-i Jul) IXt,7, 1.1 1l-.i4 l"o1110:r. 1-r,m,oi,. 22 l'iiun.:il, nr ,ur\l·illanO:l', 49, IOIJ 10, IL! IJ Courcclk,Scncu1I. J. G .. 141.215111. 4~1 c,,11rr11·r cl,· /.yon. 711 C,mn of C-a,.,;uion. lklg1u111. 1.,.l Court 111" Ca,.,.itron. Fran.:,:. 1.1.l, I .l4 Coun, Ro)al, or P.Jri", ~O. 5•>. tM t,5 Courto"· Alph11n,c. 111 Coun\ of appeal. 11 C-r.:J11 A!!ncok. I It,, 117, I IX Cr.:J11 C-010111:rl. 11 t,, 11 X CrcJ11 h,n.:rcr dl· hanl'C, 84, 85. 88. I It,, l.lO l'rcJ11 hmcicr Jc Nc\cr~. 84 l'n•J11 lnJu,mcl cl Airrcok, 'I:!, :!10 (n. 741 C-riJn lnJu,1ncl Cl Commcro:1al. 86-XX, I lb, 117. :!OIJ (nn 55, ~ti.~·,,. :!14 (n 5111 Crl•J11 lnJu,ml'I cl J,: lxpt·'" Ju 11:orJ, I It,, 11 X Cn:J1t L)'onn.ir,. 11 "i, 1lX. N Crcdll Mohrlrcr. l.1, K5 - X(1, XX. K•J, •JO, •17, •,x. I I ti l'rc1111ctl\, Adolpho:. :?lit, (n 411 Crelcml'r, ,\le,11nJrc, 11.l Crl'U"11, Ll', X. lO, ll, 55, 76, lib. 114 Cuhurc dl· l'"J,1i:I cl la l·at>rrcJlll•n Jc l'lndrgo. IX, 201 In tiKI 111.1rrn.r1,111\

or.

[230)

Index

Cunin-Gridainc. Laurent. 77. 95, 103. 128. 129. 213 (n. 15)

D Decaen freres, 55 Decree of 7 Mar. 1848, for establishing cmnptoirs d'escompte, 86 Delangle. Claude Alphonse, 102. 206 (nn. 43, 45). 211 (n. 11) Delessert, Benjamin, 24 Deniere, Guillaume, 134-35 Dessechemenl de!. Marais de Bourgoin et d'Estrac, 17 Devaux, lawyer, 50 Directory. 10 Docks el Entrepols de Marseille, 99 Donon, Annand, 86-87 Doudeauville, Due de, 42 Due d'Angouleme Canal. 29 Duchene, Georges. 216 (n. 50) Dumas fils. Alexandre, 212 (n. 22) Dunham, Arthur Louis, 199 (n. I) Dupin. A. M. J. J.. 49 Dupin, Philippe, 50, 206 (n. 43) E

East India Company. 4, 5 Eichlhal. d'. banker. 89 Enlrepot General de la Villeue. 99 Enlrepols el Magasins Gcncraux de P..iris. 121-22 Entreprise General de Messageriei.. 16 Entreprise Gencrale de Omnibus. 98 Europe, Paquebol Vapeur entre le Havre et la Russie, 75

a

F Filature de Danlol, 125 Fils Peignes-Crctenier. 93 Fohlen, Claude, 34. 203 (n. 55) Fondcries de Romilly. 17-18. 25 Fondcries et Forges d'Alais. 30. 31 Fonderies et Forges de la Loire el l'hcre, 30,31 Fonderies et Forges de l'Horme, 94-95 Forge el Fonderics d'Axat, 125 Forges d'Audincourt, 30, 31. 45 Forges, de la Marine. 97 Forges et Acieries d'Assilly. 97 Forges et Fonderies de Bourges. 127, 213 (n. 40)

Forges el Fonderies de lmphy, 30 Forges el Hauls Foumeaux de Viermn. 97 Fortune Jiiestz et Compagnie, 55 Fould, Achille,99, 115.117 Fould. Benoit. 89 Fourchambaull. 96. 114 France. lncendie. 72 Francoii., Agenor Adolphe. 54 Fremery, A .. IOI G

Gaillard-Malczieux.. company promoter. 30-31 Galland, D .. 105 Ganneron. Hippolyte. 60,207 (n. 17) Gamier. Joseph. 110. 141. 142. 216 (n. 47) Gas companies, 99 Gaz Hydrogene pour l'Eclairage el Chaurfage dani, la Ville de Havre. 106 Gt1:.eue des Trib1111a11x. 59 Geranl.61.94. IOI, 103. 120.132.134: powers of, 48-49: abuses by. 56-57. 60. 62. 106-8: reslriclioni. placed on, 109-12 Gille. Bertrand, 33. I 16 Gladi.tone. William. 86-87 Glassmaking companies. 33-34. 99 Glover. Joshua. 44 Goupy, Louis, 92 Government commi!',!.ioners. 130 Guide Financier. 114 Guizot. Fran~ois, 65 H Haussmann, Georges, 85 Hautebanque. 22. 23. 24. 56. 87, 91 Hauts Foumeaux de Maubcuie, 94. 96 Hauts Foumeaux de Montlu~on. 94. 96 Hauts Foumeaux el Forgei. de Dcnain el d'An1.in. 94. 95 Hauls Foumeaux et Forgei. de Pont Kallecq. 30. 31 Hauls Foumeaux, Forges el Acieries de la Marine et des Chemins de Fer. 97 Hentsch. banker. 32 HorM>n. jurist, 101 Hotel de Saint Jean aTouloui.e. -43. 205 (n. 85) Hotel el des lmmeubles de la Rue de Rivoli,98.121.125.128

lmkx 11,,ttmgucr. kan. :!:! llou,llcrc, Jl· CJmlJU\, I l'l l1,,u1llcrc, cl hinJcnc Jc l'A \C} r11n. 'I llumann. George,. 45

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