COMPANY, in a commercial sense, is a society of merchants, mechanics, or other traders, joined together in one common interest. The word is formed of the French compagnie, and that of compagnie, or compagnies, which Chifflet observes, are found in the Salique law, tit. 66. and are properly military words, understood of soldiers, who, according to the modern phrase, are comrades or mess-mates, i. e. lodge together, eat together, &c. of the Latin cum "with," and panis "bread." It may be added, that in some Greek authors, under the western empire, the word Κοιτανία occurs in the sense of society; but it is more probable that the Greeks borrowed it from the French or Italians.
When there are only two or three joined in this manner, it is called a partnership; the term company being restrained to societies consisting of a considerable number of members, associated together by a charter obtained from the prince.
The mechanics of all corporations, or towns incorporated, are thus erected into companies, which have charters of privileges and large immunities.
We shall here give some account of the principal companies of merchants, some of which trade with joint stocks, and all of them enjoy by charter many exclusive privileges. For, however injurious these companies may, at this time of day, be reckoned to the nation in general, yet it is certain, that they were the original parents of all our foreign commerce; private traders upon their own bottom being discouraged from hazarding their fortunes in foreign countries, till the methods of traffic had been settled by joint-stock companies: and from this very principle it is, that we find several nations at present endeavouring to extend their trade by the same means. The most ancient trading company, in Britain, is the Hamburgh company, originally called merchants of the staple, and afterwards merchant adventurers: they were incorporated by king Edward IV. from which time they traded with success till the reign of queen Elisabeth, who, for a farther encouragement of their industry, not only confirmed, but enlarged their privileges. However, it ought to be observed, that this trade is now open to private merchants, upon paying a very small sum to the company. The company of this kind, next
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incorporated, was that of the Russia-merchants; who having improved their trade and commerce in those remote parts, were incorporated by Edward VI. greatly encouraged by queen Mary, and had their confirmation, with an enlargement of their privileges, from Elisabeth. This company is not very considerable at present; the trade of those parts being mostly carried on by private merchants, on paying the sum of 5 l. to the company.
The Eastland company, formerly called merchants of Elbin, were incorporated by queen Elisabeth, and by her greatly encouraged; but, like the former company, it is now become inconsiderable, the trade of Norway and Sweden being laid open by act of parliament.
The Turkey, or Levant company, was likewise incorporated by the same princess, and its charter confirmed and enlarged by king James I. who empowered them to trade to the Levant, or eastern parts of the Mediterranean; particularly to Smyrna, Aleppo, Alexandria, Grand-Cairo, and the other parts of the Turkish dominions. But this trade is now also laid open to private merchants, upon paying a small consideration.
The next in order is the East-India company, first incorporated in the year 1600, and empowered to trade to all countries lying eastward of the cape of Good Hope. Towards the end of king William's reign, an act of parliament passed, granting all private merchants, who should raise a certain sum for the supply of the government, the privilege of trading to these parts. Accordingly, a great many subscribed, and were called the New East-India company; which soon found it necessary to unite with the old one, and trade with one joint stock: since which time, they have been styled the united East-India company; and are at present in a flourishing condition, and in possession of many considerable forts and factories on the coast of Malabar, the Coromandel-coast, the bay of Bengal, &c.
The royal African company was first erected in the year 1661, with an exclusive privilege to trade from cape Blanc, on the coast of Africa, in 20° N. Lat. as far as the cape of Good Hope. But this trade is now laid open by act of parliament.
The Eastland company, the Greenland company, the Hudson's-bay company, the South-sea company, have likewise their several charters and privileges for trading to the places from which they take their denominations.
These are the principal trading companies belonging to the crown of Great Britain; and of a similar nature are the Dutch East and West India companies, the French East and West India companies, &c.
Concerning these companies, it may be proper to remark, that however necessary they might be in the infancy of trade, they are now looked upon by most men in the light of monopolies: hence it is, that their privileges have from time to time been lessened, in order to establish an absolutely free and general trade; and experience hath shewn, that the trade of the nation has advanced in proportion as monopolies have been laid aside. Indeed, to carry on trade with distant countries, where forces and forts are to be maintained, a company with a joint stock seems necessary;
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or, at least, certain duties ought to be paid by all who trade thither, towards defraying the said expences: for not to speak of the East-India, Hudson's-bay, &c. companies, the expence of maintaining whole forts must be very considerable, even the Turkey, Hamburg, Moscow, and Eastland companies, which do not trade with a joint stock, are nevertheless obliged to be at considerable charges, in making presents to the grand signior and his ministers, maintaining consuls, &c. It would therefore be injustice that any should trade to the places within their charters, without paying the same duties toward's the company's charge, as the present adventurers pay; but then there appears to be no reason why any of the king's subjects should be barred from trading to those places, or forced to pay a great fine for admission, that are willing to pay the company's duties, and submit to their regulations and orders in other respects.
On the whole, as all restrictions of trade are found to be hurtful, nothing can be more evident than that no company whatsoever, whether they trade in a joint stock, or only under regulation, can be for the public good, except it may be easy for all or any of his majesty's subjects to be admitted into all or any of the
said companies, at any time, and for a very inconsiderable fine.