COMPANY, (Fr. compagnie, derived from the Latin ruin and panis,) means properly " an assemblage of se veral persons in the same place, or for the same purpose." In the sense in which it is generally taken, and in which it becomes an object of explanation in this article, it de notes an association of a number of merchants. We say a " number," because the word partners/0 is generally applied to a limited association. Company, besides, is currently understood as the designation of a body of men conducting trade, with particular privileges, or under specific exemptions ;—partnerships, on the other hand, have no particular privileges.
A branch of commerce carried on with an uncivilized people may require, particularly in the commencrnent, more protection than the circumstances of unconnected merchants can afford. In such cases, a fort and a gar rison may be neccssai y ; as well as a diplomatic agent, for the purpose of maintaining a good understanding with the government of their rude neighbours. These considerations, varying materially in different quarters, have given rise to mercantile associations of two kinds ; regulated companies, and joint stock companies. The former should hardly he called companies, according to the current acceptation of the word, as they arc obliged to admit any person properly qualified, who will pay a moderate fine, and submit to their regulations. Thi. done, the new member proceeds, like his predecessors, to trade on his individual capital, and at his own risk. A regulated company, therefore, bears a great resem blance to an incorporated trade in a town, the object in either case being the exclusion of all those persons who have not performed certain specific obligations. The fact, however, is, that improvements in commerce have so much facilitated the admission of merchants into our regulated companies, that little attention is paid by the public to the nature of their constitution. Their names even arc not familiar to mercantile men. The regulated companies in this country are five in number, and arc called the Hamburgh, the Russia, the Eastland, the Tur key, and the African company.
In looking back to former records, we are led to judge, from the complaints of manufacturers and others, that these companies possessed and exercised power in a manner very different from what we sec at present. The Turkey company, for example, enacted, by a bye law, that all British goods for that empire should be shipped in their vessels exclusively. Another. bye-law purported, that no persons who were not freemen of London should be allowed to become members of the company. The pretext for these regulations was, the necessity of excluding from the traffic individuals whose conduct might give offence to the Turks. The restric tions, however, were found very injurious, and abroga ted, in a great measure, by an act of parliament in 1753, which laid open the trade to persons out of London. In regard to the Eastland and the Russia Companies, the admission is now so easy as to be procured for a few pounds.
The latest institution in the shape of a regulated com pany was the African, established by act of parliament in 1750. The object of it was to provide for the main
tenance of certain forts and garrisons on the western coast of Africa. A sum, generally 13,0001., was an nually voted to them for that purpose by parliament ; but in spite of all the precautions taken in drawing up the charter, the directors of this association have been accused of neglecting the charge entrusted to them.
Joint stock companies come next to be considered, and will be found a more important and interesting sub ject. Their leading characteristics, as distinguished from private trading companies, are two ; exemption of the individual member from responsibility beyond a spe cific sum, and liberty to sell the share held in the capi tal whenever he thinks proper. This limitation of risk, coupled, as it generally is, with exemption from trouble, recommends joint stock companies to many persons, who, from situation, would not otherwise think of vesting mo ney in trade. These persons, however, must not flat ter themselves that any united company can long main tain a competition with the vigilance and activity of' private traders. The directors find themselves the ma nagers rather of other persons' property than of their own, and abuses infallibly creep in. We have seen un der the article COLONY, the failure of joint stock com• panics in one nation after another, in a kind of regular succession. Such has likewise been the lot of the Eng lish African companies, of whom we have had, from first to last, no less than four distinct associations. The South Sea company were exempt from one great article of expence, the maintenance of forts and garrisons, but their example is equally V.3 that of others. Thu it stock-joblAng projects belong to history, and are too legibly written in characters of national misfortune to require animadversions in this place. But thei• mer candle arrangements are less generally known. Aided by an exclusive privilege, they engaged to supply the Spanish West Indies w ith negroes, and were allowed, as a special advantage, to send an annual cargo of mer chandise to that far-famed market. Vet, of ten annual voyages of this description, one only was profitable to the company as a body, whatever may have been the individual gains of their servants. The result was, that the company petitioned and obtained leave from government, to treat with the court of Spain, for a con sideration, for the relinquishment of the privilege of importing this annual cargo. The Greenland trade being undertaken by this hopeful association, was con ducted in the same style ; and was wound up in 1730, with a loss, in the course of eight years, of 237,0001. As many persons are not apprised how South Sea stock continues a valuable property, after the total failure of the projects of the company, it is proper to add, that their capital (nearly thirty-four millions sterling, was lent to got eminent. In 1722, it was agreed that half this sum should be put on the same footing as other government stock, and exempt from the debts or losses attendant on mercantile adventure. In 1733, the same character was given to a farther portion of the stock, and in 1748 to the whole.