AFRICAN COMPANIES, RECENT. It would appear from a review of historical facts that in periods when a number of different civilised nations have been actively competing for the possession or settlement of an unallotted region, the favourite method of occupation has been the quasi-national company. The recent allotment of a great portion of the African continent amongst chartered companies is on a par with the early settlement of North America and the West Indies.
Putting aside the Congo Free State, which in some respects is analogous to a chartered company, we have in order of time the Royal Niger Company (chartered as the National African Company in 1888) dominating the basin of the river Niger on the west, the Imperial British East African Company (1888) on the Somali coast to the east, and the British South African Company (1889) between the Zambesi and the British colonies to the south. All these are British companies, and all hold a royal charter. A German South-West African Company has been at work for some years with indifferent success, and does not seem to enjoy any privileged position. The German East African Company, which is chartered, was formed in 1888 by a coalition of the private Commandite Company and Karl Peters and Co., to compete with the British company in the Somali and Zanzibar districts.
An amalgamation of powerful houses in West Africa is at this time moving to obtain a charter as the Oil Rivers Company. The African Lakes Company is unchartered and is likely to become merged with the British South African Company. The Congo Company is an ordinary one, with its seat of operations in the Congo Free State. The " United African Company" of 1879 was the parent of the "National African Company," now the Royal Niger Company ; it successfully competed with and eventually absorbed two French companies which received considerable support from their government.
The new British companies differ from the last of the old Sierra Leone Company (See AFRICAN COMPANIES, EARLY) in being avowedly commercial As explained in the article on CoLomas, Government by Companies (q.v.)—they are similar in conception and aim to the old Royal African and Guinea Companies. Governments, however strong, have usually shrunk from the responsibility of administering a large unknown tract of territory, but have been willing to encourage the hazards sad adopt the successes of a company. In the first blush of African development Bechuanaland was annexed as a proteotorate under the immediate care of the British crown, but this policy was too severely criticised by the timid to encourage its repetition in dealing with African territories. When the movement went on and in various parts of Africa a number of ordinary commercial companies had secured valuable concessions or established the nucleus of a trade, their present security and the future establishment of a colonial dependency was assured by their consolidation into large associations under boards of directors of recognised substance, with wide powers over considerable extents of territory, and enjoying the prestige of a royal charter.
The charters of the existing companies are all very similar. That of the South African Company has a special colouring, in that two or three of its provisions (Clauses 10, 17, 18) appear to contemplate the future transfer of its powers to a crown colony ; for instance it may make " ordinances " subject to confirmation by the secretary of state. All through the
charters modem caution and modern philanthropy are conspicuous. The control of the orown through one of the secretaries of state is secured at every point, especially as regards any foreign relations. In the case of the Royal Niger and Imperial British East African Companies this control is exercised through the foreign office ; in the case of the British South African Company through the colonial office. The difference of the controlling department was determined solely by the fact that in the case of the first two companies their immediate contact was with foreign states, in that of the British South African Company it was with British colonies and protectorates. The stipulations in respect of the slave trade and liquor traffic with the natives are the offspring of a humanitarian age. Subject to these limitations the companies have wide powers, not only of carrying on commerce and industries on their own account, but of granting concessions and powers to individuals for every sort of undertaking. They have all the attributes of large joint-stock companies with some of those of independent states. But they cannot enjoy or create any monopoly of trade.
The Imperial British East African Company has at present (1892) less individuality than the others ; part of its sphere is within the territory of the sultan of Zanzibar and there it is bound to use the sultan's flag and conform to the sultan's trade restrictions. Herein the different genius of the British and German companies (see COLONIES, Government by Companies) was well illustrated. Both had their sphere of operations in the territory of the sultan ; the British company, as just mentioned, was carefully kept by the British government subservient to their ally ; the German company everywhere hoisted the German flag and displayed its nationality ; it was, in fact, the German government working through the company for paramount influence.
The sphere of influence dominated by Germany through its East African Company lies between those of the Imperial British East African Company and the British South African Company, stretching from the east coast inland to Lake Tanganyika and the Congo Free State. It thus covers some of the richest country in the Continent, the object of considerable jealousy to English traders.
The commercial success of the Royal Niger Company has, on the whole, been considerable ; that of the South African Company is described in its Annual Reports.
[The charters of the three companies are to be found in the London Gazette of 13th July 1886 (Niger),-7th Sept. 1888 (East African),-20th Dec. 1889 (South African),—and an account of the first and last in the Colonial Office List for 1890. The Royal Niger Company and British South African Companyhave printed interesting accounts of their development for private circulation. For history since 1892 see Annual Reports of the British South African Company,—of the Administrator of East Africa,—and on Northern and Southern Nigeria ; also Précis of Information concerning the British East Africa Protectorate.] 0. A. H.