part ii

. (June 1897); _Returns to House of Commons_ (1843), No. 325; (1870), No. 326; (1874), No. 85; _Return of Landowners_ (1875); _Annual Reports of Inclosure Commission and Board of Agriculture_; Revised Statutes and Statutes at large. (R. H.*)

FOOTNOTES:

[1] For the commons (_communitates_) in a socio-political sense see REPRESENTATION and PARLIAMENT.

[2] There is an entry on the court rolls of the manor of Wimbledon of the division amongst the inhabitants of the vill of the crab-apples growing on the common.

COMMONWEALTH, a term generally synonymous with commonweal, i.e. public welfare, but more particularly signifying a form of government in which the general public have a direct voice. "The Commonwealth" is used in a special sense to denote the period in English history between the execution of Charles I. in 1649 and the Restoration in 1660. Commonwealth is also the official designation in America of the states of Massachusetts, Pennsylvania, Virginia and Kentucky. The Commonwealth of Australia is the title of the federation of Australian colonies carried out in 1900.

COMMUNE (Med. Lat. _communia_, Lat. _communis_, common), in its most general sense, a group of persons acting together for purposes of self-government, especially in towns. (See BOROUGH, and COMMUNE, MEDIEVAL, below.) "Commune" (Fr. _commune_, Ital. _comune_, Ger. _Gemeinde_, &c.) is now the term generally applied to the smallest administrative division in many European countries. (See the sections dealing with the administration of these countries under their several headings.) "The Commune" is the name given to the period of the history of Paris from March 18 to May 28, 1871, during which the commune of Paris attempted to set up its authority against the National Assembly at Versailles. It was a political movement, intended to replace the centralized national organization by one based on a federation of communes. Hence the "communists" were also called "federalists." It had nothing to do with the social theories of Communism (q.v.). (See FRANCE: _HISTORY_.)

COMMUNE, MEDIEVAL. Under this head it is proposed to give a short account of the rise and development of towns in central and western continental Europe since the downfall of the Roman Empire. All these, including also the British towns (for which, however, see BOROUGH), may be said to have formed one unity, inasmuch as all arose under similar conditions, economic, legal and political, irrespective of local peculiarities. Kindred economic conditions prevailed in all the former provinces of the Western empire, while new law concepts were everywhere introduced by the Germanic invaders. It is largely for the latter reason that it seems advisable to begin with an account of the German towns, the term German to correspond to the limits of the old kingdom of Germany, comprising the present empire, German Austria, German Switzerland, Holland and a large portion of Belgium. In their development the problem, as it were, worked out least tainted by foreign interference, showing at the same time a rich variety in detail; and it may also be said that their constitutional and economic history has been more thoroughly investigated than any other.

Like the others, the German towns should be considered from three points of view, viz. as jurisdictional units, as self-administrative units and as economic units. One of the chief distinguishing features of early as opposed to modern town-life is that each town formed a jurisdictional district distinct from the country around. Another trait, more in accordance with the conditions of to-day, is that local self-government was more fully developed and strongly marked in the towns than without. And, thirdly, each town in economic matters followed a policy as independent as possible of that of any other town or of the country in general. The problem is, how this state of things arose.

From this point of view the German towns may be divided into two main classes: those that gradually resuscitated on the ruins of former Roman cities in the Rhine and Danube countries, and those that were newly founded at a later date in the interior.[1] Foremost in importance among the former stand the episcopal cities. Most of these had never been entirely destroyed during the Germanic invasion. Roman civic institutions perished; but probably parts of the population survived, and small Christian congregations with their bishops in most cases seem to have weathered all storms. Much of the city walls presumably remained standing, and within them German communities soon settled.

In the 10th century it became the policy of the German emperors to hand over to the bishops full jurisdictional and administrative powers within their cities. The bishop henceforward directly or indirectly appointed all officers for the town's government. The chief of these was usually the _advocatus_ or _Vogt_, some neighbouring noble who served as the proctor of the church in all secular affairs. It was his business to preside three times a year over the chief law-court, the so-called _echte_ or _ungebotene Ding_, under the cognizance of which fell all cases relating to real property, personal freedom, bloodshed and robbery. For the rest of the legal business and as president of the ordinary court he appointed a _Schultheiss_, _centenarius_ or _causidicus_. Other officers were the _Burggraf_[2] or _praefectus_ for military matters, including the preservation of the town's defences, walls, moat, bridges and streets, to whom also appertained some jurisdiction over the craft-gilds in matters relating to their crafts; further the customs-officer or _teleonarius_ and the mint-master or _monetae magister_. It was not, however, the fact of their being placed under the bishop that constituted these towns as separate jurisdictional units. The chief feature rather is the existence within their walls of a special law, distinct in important points from that of the country at large. The towns enjoyed a special peace, as it was called, i.e. breaches of the peace were more severely punished if committed in a town than elsewhere. Besides, the inhabitants might be sued before the town court only, and to fugitives from the country who had taken refuge in the town belonged a similar privilege. This special legal status probably arose from the towns being considered in the first place as the king's fortresses[3] or burgs (see BOROUGH), and, therefore, as

## participating in the special peace enjoyed by the king's palace. Hence

the terms "burgh," "borough" in English, _baurgs_ in Gothic, the earliest Germanic designations for a town; "burgher," "burgess" for its inhabitants. What struck the townless early Germans most about the Roman towns was their mighty walls. Hence they applied to all fortified habitations the term in use for their own primitive fortifications; the walls remained with them the main feature distinguishing a town from a village; and the fact of the town being a fortified place, likewise necessitated the special provisions mentioned for maintaining the peace.

The new towns in the interior of Germany were founded on land belonging to the founder, some ecclesiastical or lay lord, and frequently adjoining the cathedral close of one of the new sees or the lord's castle, and they were laid out according to a regular plan. The most important feature was the market-square, often surrounded by arcades with stalls for the sale of the principal commodities, and with a number of straight streets leading thence to the city gates.[4] As for the fortifications, some time naturally passed before they were completed. Furthermore, the governmental machinery would be less complex than in the older towns. The legal peculiarities distinguishing town and country, on the other hand, may be said to have been conferred on the new towns in a more clearly defined form from the beginning.

An important difference lay in the mode of settlement. There is evidence that in the quondam Roman towns the German newcomers settled much as in a village, i.e. each full member of the community had a certain portion of arable land allotted to him and a share in the common. Their pursuits would at first be mainly agricultural. The new towns, on the other hand, general economic conditions having meanwhile begun to undergo a marked change, were founded with the intention of establishing centres of trade. Periodical markets, weekly or annual, had preceded them, which already enjoyed the special protection of the king's ban, acts of violence against traders visiting them or on their way towards them being subject to special punishment. The new towns may be regarded as markets made permanent. The settlers invited were merchants (_mercatores personati_) and handicraftsmen. The land now allotted to each member of the community was just large enough for a house and yard, stabling and perhaps a small garden (50 by 100 ft. at Freiburg, 60 by 100 ft. at Bern). These building plots were given as free property or, more frequently, at a merely nominal rent (_Wurtzins_) with the right of free disposal, the only obligation being that of building a house. All that might be required besides would be a common for the pasture of the burgesses' cattle.

The example thus set was readily followed in the older towns. The necessary land was placed at the disposal of new settlers, either by the members of the older agricultural community, or by the various churches. The immigrants were of widely differing status, many being serfs who came either with or without their lords' permission. The necessity of putting a stop to belated prosecutions on this account in the town court led to the acceptance of the rule that nobody who had lived in a town undisturbed for the term of a year and a day could any longer be claimed by a lord as his serf. But even those who had migrated into a town with their lords' consent could not very well for long continue in serfdom. When, on the other hand, certain bishops attempted to treat all new-comers to their city as serfs, the emperor Henry V. in charters for Spires and Worms proclaimed that in these towns all serf-like conditions should cease. This ruling found expression in the famous saying: _Stadtluft macht frei_, "town-air renders free." As may be imagined, this led to a rapid increase in population, mainly during the 11th to 13th centuries. There would be no difficulty for the immigrants to find a dwelling, or to make a living, since most of them would be versed in one or other of the crafts in practice among villagers.

The most important further step in the history of the towns was the establishment of an organ of self-government, the town-council (_Rat_, _consilium_, its members, _Ratmänner_, _consules_, less frequently _consiliarii_), with one, two or more burgomasters (_Bürgermeister_, _magistri civium_, _proconsules_) at its head. (It was only after the Renaissance that the town-council came to be styled _senate_, and the burgomasters in Latin documents, _consules_.) As _units of local government_ the towns must be considered as originally placed on the same legal basis as the villages, viz. as having the right of taking care of all common interests below the cognizance of the public courts or of those of their lord.[5] In the towns, however, this right was strengthened at an early date by the _jus negotiale_. At least as early as the beginning of the 11th century, but probably long before that date, mercantile communities claimed the right, confirmed by the emperors, of settling mercantile disputes according to a law of their own, to the horror of certain conservative-minded clerics.[6] Furthermore, in the rapidly developing towns, opportunities for the exercise of self-administrative functions constantly increased. The new self-governing body soon began to legislate in matters of local government, imposing fines for the breach of its by-laws. Thus it assumed a jurisdiction, partly concurrent with that of the lord, which it further extended to breaches of the peace. And, finally, it raised funds by means of an excise-duty, _Ungeld_ (cf. the English _malatolta_) or _Accise_, _Zeise_. In the older and larger towns it soon went beyond what the bishops thought proper to tolerate; conflicts ensued; and in the 13th century several bishops obtained decrees in the imperial court, either to suppress the _Rat_ altogether, or to make it subject to their nomination, and more particularly to abolish the _Ungeld_, as detrimental to episcopal finances. In the long run, however, these attempts proved of little avail.

Meanwhile the tendency towards self-government spread even to the lower ranks of town society, resulting in the establishment of craft-gilds. From a very early period there is reason to believe merchants among themselves formed gilds for social and religious purposes, and for the furtherance of their economic interests. These gilds would, where they existed, no doubt also influence the management of town affairs; but nowhere has the _Rat_, as used to be thought, developed out of a gild, nor has the latter anywhere in Germany played a part at all similar in importance to that of the English gild merchant, the only exception being for a time the _Richerzeche_, or Gild of the Rich of Cologne, from early times by far the largest, the richest, and the most important trading centre among German cities, and therefore provided with an administration more complex, and in some respects more primitive, than any other. On the other hand, the most important commodities offered for sale in the market had been subject to official examination already in Carolingian times. Bakers', butchers', shoemakers' stalls were grouped together in the market-place to facilitate control, and with the same object in view a master was appointed for each craft as its responsible representative. By and by these crafts or "offices" claimed the right of electing their master and of assisting him in examining the goods, and even of framing by-laws regulating the quality of the wares and the process of their manufacture. The bishops at first resented these attempts at self-management, as they had done in the case of the town council, and imperial legislation in their interests was obtained. But each craft at the same time formed a society for social, beneficial and religious purposes, and, as these were entirely in accordance with the wishes of the clerical authorities, the other powers could not in the long run be withheld, including that of forcing all followers of any craft to join the gild (_Zunftzwang_). Thus the official inspection of markets, community of interests on the part of the craftsmen, and co-operation for social and religious ends, worked together in the formation of craft-gilds. It is not suggested that in each individual town the rise of the gilds was preceded by an organization of crafts on the part of the lord and his officers; but it is maintained that as a general thing voluntary organization could hardly have proceeded on such orderly lines as on the whole it did, unless the framework had in the first instance been laid down by the authorities: much as in modern times the working together in factories has practically been an indispensable preliminary to the formation of trade unions. Much less would the principle of forced entrance have found such ready acceptance both on the part of the authorities and on that of the men, unless it had previously been in full practice and recognition under the system of official market-control. The different names for the societies, viz. _fraternitas_, _Brüderschaft_, _officium_, _Amt_, _condictum_, _Zunft_, _unio_, _Innung_, do not signify different kinds of societies, but only different aspects of the same thing. The word _Gilde_ alone forms an exception, inasmuch as, generally speaking, it was used by merchant gilds only.[7]

From an early date the towns, more particularly the older episcopal cities, took a part in imperial politics. Legally the bishops were in their cities mere representatives of the imperial government. This fact found formal expression mainly in two ways. The _Vogt_, although appointed by the bishop, received the "ban," i.e. the power of having justice executed, which he passed on to the lesser officers, from the king or emperor direct. Secondly, whenever the emperor held a _curia generalis_ (or general assembly, or diet) in one of the episcopal cities, and for a week before and after, all jurisdictional and administrative power reverted to him and his immediate officers. The citizens on their part clung to this connexion and made use of it whenever their independence was threatened by their bishops, who strongly inclined to consider themselves lords of their cathedral cities, much as if these had been built on church-lands. As early as 1073, therefore, we find the citizens of Worms successfully rising against their bishop in order to provide the emperor Henry IV. with a refuge against the rebellious princes. Those of Cologne made a similar attempt in 1074. But a second class of imperial cities (_Reichsstädte_), much more numerous than the former, consisted of those founded on demesne-land belonging either to the Empire or to one of the families who rose to imperial rank. This class was largely reinforced, when after the extinction of the royal house of Hohenstaufen in the 13th century, a great number of towns founded by them on their demesne successfully claimed immediate subjection to the crown. About this time, during the interregnum, a federation of more than a hundred towns was formed, beginning on the Rhine, but spreading as far as Bremen in the north, Zürich in the south, and Regensburg in the east, with the object of helping to preserve the peace. After the death of King William in 1256, they resolved to recognize no king unless unanimously elected. This league was joined by a powerful group of princes and nobles and found recognition by the prince-electors of the Empire; but for want of leadership it did not stand the test, when Richard of Cornwall and Alphonso of Castile were elected rival kings in 1257.[8] In the following centuries the imperial cities in south Germany, where most of them were situated, repeatedly formed leagues to protect their interests against the power of the princes and the nobles, and destructive wars were waged; but no great political issue found solution, the relative position of the parties after each war remaining much what it had been before. On the part of the towns this was mainly due to lack of leadership and of unity of purpose. At the time of the Reformation the imperial towns, like most of the others, stood forward as champions of the new cause and did valuable service in upholding and defending it. After that, however, their political part was played out, mainly because they proved unable to keep up with modern conditions of warfare. It should be stated that seven among the episcopal cities, viz. Cologne, Mainz, Worms, Spires, Strassburg, Basel and Regensburg, claimed a privileged position as "Free Cities," but neither is the ground for this claim clearly established, nor its nature well defined. The general obligations of the imperial cities towards the Empire were the payment of an annual fixed tax and the furnishing of a number of armed men for imperial wars, and from these the above-named towns claimed some measure of exemption. Some of the imperial cities lost their independence at an early date, as unredeemed pledges to some prince who had advanced money to the emperor. Others seceded as members of the Swiss Confederation. But a considerable number survived until the reorganization of the Empire in 1803. At the peace in 1815, however, only four were spared, namely, Frankfort, Bremen, Hamburg and Lübeck, these being practically the only ones still in a sufficiently flourishing and economically independent position to warrant such preferential treatment. But finally Frankfort, having chosen the wrong side in the war of 1866, was annexed by Prussia, and only the three seaboard towns remain as full members of the new confederate Empire under the style of _Freie und Hansestädte_. But until modern times most of the larger _Landstädte_ or mesne-towns for all intents and purposes were as independent under their lords as the imperial cities were under the emperor. They even followed a foreign policy of their own, concluded treaties with foreign powers or made war upon them. Nearly all the _Hanseatic towns_ belonged to this category. With others like Bremen, Hamburg and Magdeburg, it was long in the balance which class they belonged to. All towns of any importance, however, were for a considerable time far ahead of the principalities in administration. It was largely this fact that gave them power. When, therefore, from about the 15th century the princely territories came to be better organized, much of the _raison d'être_ for the exceptional position held by the towns disappeared. The towns from an early date made it their policy to suppress the exercise of all handicrafts in the open country. On the other hand, they sought an increase of power by extending rights of citizenship to numerous individual inhabitants of the neighbouring villages (_Pfalbürger_, a term not satisfactorily explained). By this and other means, e.g. the purchase of estates by citizens, many towns gradually acquired a considerable territory. These tendencies both princes and lesser nobles naturally tried to thwart, and the mediate towns or _Landstädte_ were finally brought to stricter subjection, at least in the greater principalities such as Austria and Brandenburg. Besides, the less favourably situated towns suffered through the concentration of trade in the hands of their more fortunate sisters. But the economic decay and consequent loss of political influence among both imperial and territorial towns must be chiefly ascribed to inner causes.

Certain leading political economists, notably K. Bücher (_Die Bevölkerung von Frankfurt a. M. im 14ten und 15ten Jahrhundert_, i., Tübingen, 1886; _Die Entstehung der Volkswirtschaft_, 5th ed., Tübingen, 1906), and, in a modified form, W. Sombart (_Der moderne Kapitalismus_, 2 vols., Leipzig, 1902), have propounded the doctrine of one gradual progression from an agricultural state to modern capitalistic conditions. This theory, however, is nothing less than an outrage on history. As a matter of fact, as far as modern Europe is concerned, there has twice been a progression, separated by a period of retrogression, and it is to the latter that Bücher's picture of the agricultural and strictly protectionist town (the _geschlossene Stadtwirtschaft_) of the 14th and 15th centuries belongs, while Sombart's notion of an entire absence of a spirit of capitalistic enterprise before the middle of the 15th century in Europe north of the Alps, or the 14th century in Italy, is absolutely fantastic.[9] The period of the rise of cities till well on in the 13th century was naturally a period of expansion and of a considerable amount of freedom of trade. It was only afterwards that a protectionist spirit gained the upper hand, and each town made it its policy to restrict as far as possible the trade of strangers. In this revolution the rise of the lower strata of the population to power played an important part.

The craft-gilds had remained subordinate to the _Rat_, but by-and-by they claimed a share in the government of the towns. Originally any inhabitant holding a certain measure of land, freehold or subject to the mere nominal ground-rent above-mentioned, was a full citizen independently of his calling, the clergy and the lord's retainers and servants of whatever rank, who claimed exemption from scot and lot, to use the English formula, alone excepted. The majority of the artisans, however, were not in this happy position. Moreover, the town council, instead of being freely elected, filled up vacancies in its ranks by co-optation, with the result that all power became vested in a limited number of rich families. Against this state of things the crafts rebelled, alleging mismanagement, malversation and the withholding of justice. During the 14th and 15th centuries revolutions and counter-revolutions, sometimes accompanied by considerable slaughter, were frequent, and a great variety of more democratic constitutions were tried. Zürich, however, is the only German place where a kind of _tyrannis_, so frequent in Italy, came to be for a while established. On the whole it must be said that in those towns where the democratic party gained the upper hand an unruly policy abroad and a narrow-minded protection at home resulted. An inclination to hasty measures of war and an unwillingness to observe treaties among the democratic towns of Swabia were largely responsible for the disasters of the war of the Swabian League in the 14th century. At home, whereas at first markets had been free and open to any comer, a more and more protective policy set in, traders from other towns being subjected more and more to vexatious restrictions. It was also made increasingly difficult to obtain membership in the craft-gilds, high admission fees and so-called masterpieces being made a condition. Finally, the number of members became fixed, and none but members' sons and sons-in-law, or members' widows' husbands were received. The first result was the formation of a numerous proletariate of life-long assistants and of men and women forcibly excluded from following any honest trade; and the second consequence, the economic ruin of the town to the exclusive advantage of a limited number. From the end of the 15th century population in many towns decreased, and not only most of the smaller ones, but even some once important centres of trade, sank to the level almost of villages. Those cities, on the other hand, where the mercantile community remained in power, like Nuremberg and the seaboard towns, on the whole followed a more enlightened policy, although even they could not quite keep clear of the ever-growing protective tendencies of the time. Many even of the richer towns, notably Nuremberg, ran into debt irretrievably, owing

## partly to an exorbitant expenditure on magnificent public buildings and

extensive fortifications, calculated to resist modern instruments of destruction, partly to a faulty administration of the public debt. From the 13th century the towns had issued ("sold," as it was called) annuities, either for life or for perpetuity in ever-increasing number, until it was at last found impossible to raise the funds necessary to pay them.

One of the principal achievements of the towns lay in the field of _legislation_. Their law was founded originally on the general national (or provincial) law, on custom, and on special privilege. New foundations were regularly provided by their lord with a charter embodying the most important points of the special law of the town in question. This miniature code would thenceforth be developed by means of statutes passed by the town council. The codification of the law of Augsburg in 1276 already fills a moderate volume in print (ed. by Christian Meyer, Augsburg, 1872). Later foundations were frequently referred by their founders to the nearest existing town of importance, though that might belong to a different lord. Afterwards, if a question in law arose which the court of a younger town found itself unable to answer, the court next senior in affiliation was referred to, which in turn would apply to the court above, until at last that of the original mother town was reached, whose decision was final. This system was chiefly developed in the colonial east, where most towns were affiliated directly or indirectly either to Lübeck or to Magdeburg; but it was by no means unknown in the home country. A number of collections of such judgments (_Schöffensprüche_) have been published. It is also worth mentioning that it was usual to read the police by-laws of a town at regular intervals to the assembled citizens in a morning-speech (_Morgenspraehe_).[10]

To turn to _Italy_, the country for so many centuries in close political connexion with Germany, the foremost thing to be noted is that here the towns grew to even greater independence, many of them in the end acknowledging no overlord whatever after the yoke of the German kings had been shaken off. On the other hand, nearly all of them in the long run fell under the sway of some local tyrant-dynasty.

From Roman times the country had remained thickly studded with towns, each being the seat of a bishop. From this arose their most important peculiarity. For it was largely due to an identification of dioceses and municipal territories that the nobles of the surrounding country took up their headquarters in the cities, either voluntarily or because forced to do so by the citizens, who made it their policy thus to turn possible opponents into partisans and defenders. In Germany, on the other hand, nobles and knights were carefully shut out so long as the town's independence was at stake, the members of a princely garrison being required to take up their abode in the citadel, separated from the town proper by a wall. Only in the comparatively few cathedral cities this rule does not obtain. It will be seen that, in consequence of this, municipal life in Italy was from the first more complex, the main constituent parts of the population being the _capitani_, or greater nobles, the _valvassori_, or lesser nobles (knights) and the people (_popolo_). Furthermore, the bishops being in most cases the exponents of the imperial power, the struggle for freedom from the latter ended in a radical riddance from all temporal episcopal government as well. Foremost in this struggle stood the cities of Lombardy, most of which all through the barbarian invasions had kept their walls in repair and maintained some importance as economic centres, and whose _popolo_ largely consisted of merchants of some standing. As early as the 8th century the laws of the Langobard King Aistulf distinguished three classes of merchants (_negotiantes_), among whom the _majores et potentes_ were required to keep themselves provided with horse, lance, shield and a cuirass. The valley of the Po formed the main artery of trade between western Europe and the East, Milan being besides the point of convergence for all Alpine passes west of the Brenner (the St Gotthard, however, was not made accessible until early in the 13th century). Lombard merchants soon spread all over western Europe, a chief source of their ever-increasing wealth being their employment as bankers of the papal see.

The struggle against the bishops, in which a clamour for a reform of clerical life and a striving for local self-government were strangely interwoven, had raged for a couple of generations when King Henry V., great patron of municipal freedom as he was, legalized by a series of charters the _status quo_ (Cremona, 1114, Mantua, 1116). But under his weak successors the independence of the cities reached such a pitch as to be manifestly intolerable to an energetic monarch like Frederick I. Besides, the more powerful among them would subdue or destroy their weaker neighbours, and two parties were formed, one headed by Milan, the other by Cremona. Como and Lodi complained of the violence used to them by the former city. Therefore in 1158 a commission was appointed embracing four Roman legists as representatives of the emperor, as well as those of fourteen towns, to examine into the imperial and municipal rights. The claims of the imperial government, jurisdictional and other, were acknowledged, only such rights of self-government being admitted as could be shown to be grounded on imperial charters. But when it came to carrying into effect these Roncaglian decrees, a general rising resulted. Milan was besieged by the emperor and destroyed in 1162 in accordance with the verdict of her rivals. Nevertheless, after a defeat at Legnano in 1176, Frederick was forced to renounce all pretensions to interference with the government of the cities, merely retaining an overlordship that was not much more than formal (peace of Constance in 1183). All through this war the towns had been supported by Pope Alexander III. Similarly under Frederick II. the renewal of the struggle between emperor and pope dovetailed with a fresh outbreak of the war with the cities, who feared lest an imperial triumph over the church would likewise threaten their independence. The emperor's death finally decided the issue in their favour.

Constitutionally, municipal freedom was based on the formation of a commune headed by elected consuls, usually to the number of twelve, representing the three orders of _capitani_, _valvassori_ and _popolo_. Frequently, however, the number actually wielding power was much more restricted, and their position altogether may rather be likened to that of their Roman predecessors than to that of their German contemporaries. In all important matters they asked the advice and support of "wise men," _sapientes, discretiores, prudentes_, as a body called the _credenza_, while the popular assembly (_parlamentum, concio, consilium generale_) was the true sovereign. The consuls with the assistance of _judices_ also presided in the law-courts; but besides the consuls of the commune there were _consules de placitis_ specially appointed for jurisdictional purposes.

In spite of these multifarious safeguards, however, family factions early destroyed the fabric of liberty, especially as, just as there was an imperial, or Ghibelline, and a papal, or Guelph party among the cities as a whole, thus also within each town each faction would allege adherence to and claim support by one or other of the great world-powers. To get out of the dilemma of party-government, resort was thereupon had to the appointment as chief magistrate of a _podestà_ from among the nobles or knights of a different part of the country not mixed up with the local feuds. But the end was in most cases the establishment of the despotism of some leading family, such as the Visconti at Milan, the Gonzaga at Mantua, the della Scala in Verona and the Carrara in Padua.

In Tuscany, the historic rôle of the cities, with the exception of Pisa, begins at a later date, largely owing to the overlordship of the powerful margraves of the house of Canossa and their successors, who here represented the emperor. Pisa, however, together with Genoa, all through the 11th century distinguished itself by war waged in the western Mediterranean and its isles against the Saracens. Both cities, along with Venice, but especially the Genoese, also did excellent service in reducing the Syrian coast towns still in the hands of the Turks in the reigns of Kings Baldwin I. and Baldwin II. of Jerusalem, while more particularly Pisa with great constancy placed her fleet at the disposal of the Hohenstaufen emperors for warfare with Sicily.

Meanwhile communes with consuls at their head were formed in Tuscany much as elsewhere. On the other hand the Tuscan cities managed to prolong the reign of liberty to a much later epoch, no _podestà_ ever quite succeeding here in his attempts to establish the rule of his dynasty. Even when in the second half of the 15th century the Medici in Florence attained to power, the form at least of a republic was still maintained, and not till 1531 did one of them, supported by Charles V., assume the ducal title.

Long before the last stage, the rule of _signori_, was reached, however, the commune as originally constituted had everywhere undergone radical changes. As early as the 13th century the lower orders among the inhabitants formed an organization under officers of their own, side by side with that of the commune, which was controlled by the great and the rich; e.g. at Florence the people in 1250 rose against the turbulent nobles and chose a _capitano del popolo_ with twelve _anziani_, two from each of the six city-wards (_sestieri_), as his council. The _popolo_ itself was divided into twenty armed companies, each under a _gonfaloniere_. But later the _arti_ (craft-gilds), some of whom, however, can be shown to have existed under consuls of their own as early as 1203, attained supreme importance, and in 1282 the government was placed in the hands of their _priori_, under the name of the _signoria_. The Guelph nobles were at first admitted to a share in the government, on condition of their entering a gild, but in 1293 even this privilege was withdrawn. The _ordinamenti della giustizia_ of that year robbed the nobility of all political power. The lesser or lower _arti_, on the other hand, were conceded a full share in it, and a _gonfaloniere della giustizia_ was placed at the head of the militia. In the 14th century twelve _buoni uomini_ representing the wards (_sestieri_) were superadded, all these dignitaries holding office for two months only. And besides all these, there existed three competing chief justices and commanders of the forces called in from abroad and holding office for six months, viz. the _podestà_, the _capitano del popolo_, and the _esecutore della giustizia_. In spite of all this complicated machinery of checks and balances, revolution followed upon revolution, nor could an occasional reign of terror be prevented like that of the Signore Gauthier de Brienne, duke of Athens (1342-1343). It was not till after a rising of the lowest order of all, the industrial labourers, had been suppressed in 1378 (_tumulto dei Ciompi_, the wool-combers), that quieter times ensued under the wise leadership, first of the Albizzi and finally of the Medici.

The history of the other Tuscan towns was equally tumultuous, all of them save Lucca, after many fitful changes finally passing under the sway of Florence, or the grand-duchy of Tuscany, as the state was now called. Pisa, one time the mightiest, had been crushed between its inland neighbour and its maritime rival Genoa (battle of Meloria, 1282).

Apart in its constitutional development from all other towns in Italy, and it might be added, in Europe, stands Venice. Almost alone among Italian cities its origin does not go back to Roman times. It was not till the invasions of Hun and Langobard that fugitives from the Venetian mainland took refuge among the poor fishermen on the small islands in the lagoons and on the _lido_--the narrow stretch of coast-line which separates the lagoons from the Adriatic--some at Grado, some at Malamocco, others on Rialto. A number of small communities was formed under elected tribunes, acknowledging as their sovereign the emperor at Constantinople. Treaties of commerce were concluded with the Langobard kings, thus assuring a market for the sale of imports from the East and for the purchase of agricultural produce. Just before or after A.D. 700 the young republic seems to have thrown off the rule of the Byzantine _dux Histriae et Venetiae_ and elected a duke (_doge_) of its own, in whom was vested the executive power, the right to convoke the popular assembly (_concio_) and appoint tribunes and justices. Political unity was thus established, but it was not till after another century of civil war that Rialto was definitely chosen the seat of government and thus the foundation of the present city laid. After a number of attempts to establish a hereditary dukedom, Duke Domenico Flabianico in 1032 passed a law providing that no duke was to appoint his successor or procure him to be elected during his own lifetime. Besides this two councils were appointed without whose consent nothing of importance was to be done. After the murder by the people of Duke Vitale Michiel in 1172, who had suffered naval defeat, it was deemed necessary to introduce a stricter constitutional order. According to the orthodox account, some details of which have, however, recently been impugned,[11] the irregular popular meeting was replaced by a great council of from 450 to 480 members elected annually by special appointed electors in equal proportion from each of the six wards. One of the functions of this body was to appoint most of the state officials or their electors. There was also an executive council of six, one from each ward. Besides these, the duke, who was henceforward elected by a body of eleven electors from among the aristocracy, would invite persons of prominence (the _pregadi_) in order to secure their assent and co-operation, whenever a measure of importance was to be placed before the great council. Only under extraordinary circumstances the _concio_ was still to be called. The tenure of the duke's office was for life. The general tendency of constitutional development in Venice henceforward ran in an exactly opposite direction to that of all other Italian cities towards a growing restriction of popular rights, until in 1296 the great council was for all future time closed to all but the descendants of a limited number of noble families, whose names were in that year entered in the Golden Book. It still remained to appoint a board to superintend the executive power. These were the _avvogadori di commune_, and, since Tiepolo's conspiracy in 1310, the _Consiglio dei Dieci_, the Council of Ten, which controlled the whole of the state, and out of which there developed in the 16th century the state inquisition.

While in all prominent Italian cities the leading classes of the community were largely made up of merchants, in Venice the nobility was entirely commercial. The marked steadiness in the evolution of the Venetian constitution is no doubt largely due to this fact. Elsewhere the presence of large numbers of turbulent country nobles furnished the first germ for the unending dissensions which ruined such promising beginnings. In Venice, on the contrary, its businesslike habits of mind led the ruling class to make what concessions might seem needful, while both the masses and the head of the state were kept in due subjection to the laws. Too much stability, however, finally changed into stagnation, and decay followed. The foreign policy of Venice was likewise mainly dictated by commercial motives, the chief objectives being commercial privilege in the Byzantine empire and in the Frankish states in the East, domination of the Adriatic, occupation of a sufficient hinterland on the _terra firma_, non-sufferance of the rivalry of Genoa, and, finally, maintenance of trade-supremacy in the eastern Mediterranean through a series of alternating wars and treaties with Turkey, the lasting monument of which was the destruction of the Parthenon in 1685 by a Venetian bomb. At last the proud republic surrendered to Napoleon without a stroke.

The cities of southern Italy do not here call for special attention. Several of them developed a certain amount of independence and free institutions, and took an important part in trade with the East, notably so Amalfi. But after incorporation in the Norman kingdom all individual history for them came to an end.

Rome, finally, derived its importance from being the capital of the popes and from its proud past. From time to time spasmodic attempts were made to revive the forms of the ancient republic, as under Arnold of Brescia in the 12th and by Niccolò di Rienzo in the 14th century; but there was no body of stalwart, self-reliant citizens to support such measures: nothing but turbulent nobles on the one hand and a rabble on the other.

In no country is there such a clear grouping of the towns on geographical lines as in _France_, these geographical lines, of course, having in the first instance been drawn by historical causes. Another feature is the extent to which, in the unruly times preceding the civic movement, serfdom had spread among the inhabitants even of the towns throughout the greater part of the country, and the application of feudal ideas to town government. In some other respects the constitution of the cities in the south of France, as will be seen, has more in common with that of the Italian communes, and that of the northern French towns with those of Germany, than the constitutions of the various groups of French towns have among each other.

In the group of the _villes consulaires_, comprising all important towns in the south, the executive was, as in Italy, in the hands of a body of _consules_, whose number in most cases rose to twelve. They were elected for the term of one year and re-eligible only after an interval, and they were supported by a municipal council (_commune consilium, consilium magnum_ or _secretum_ or _generale_, or _colloquium_) and a general assembly (_parlamentum, concio, commune consilium, commune, universitas civium_), which, however, as a rule was far from comprising the whole body of citizens. Another feature which these southern towns had in common with their Italian neighbours was the prominent part played by the native nobility. The relations with the clergy were generally of a more friendly character than in the north, and in some cases the bishop or archbishop even retained a considerable influence in the management of the town's affairs. Dissensions among the citizens, or between the nobles and the bourgeois, frequently ended in the adoption of a _podestat_. And in several cities of the Languedoc, each of the two classes composing the population retained its separate laws and customs. It is matter of dispute whether vestiges of Roman institutions had survived in these parts down to the time when the new constitutions sprang into being; but all investigators are pretty well agreed that in no case did such remnants prove of any practical importance. Roman law, however, was never quite superseded by Germanic law, as appears from the _statuts municipaux_. In the improvement and expansion of these statutes a remarkable activity was displayed by means of an annual _correctio statutorum_ carried out by specially appointed _statutores_. In the north, on the other hand, the _carta communiae_, forming as it were the basis of the commune's existence, seems to have been considered almost as something sacred and unchangeable.

The constitutional history of the communes in northern France in a number of points widely differed from that of these _villes consulaires_. First of all the movement for their establishment in most cases was to a far greater degree of a revolutionary character. These revolutions were in the first place directed against the bishops; but the position both of the higher clergy and of the nobility was here of a nature distinctly more hostile to the aspirations of the citizens than it was in the south. As a result the clergy and the nobles were excluded from all membership of the commune, except inasmuch as that those residing in the town might be required to swear not to conspire against it. The commune (_communia, communa, communio, communitas, conjuratio, confoederatio_) was formed by an oath of mutual help (_sacramentum, juramentum communiae_). The members were described as _jurati_ (also _burgenses, vicini, amici_), although in some communes that term was reserved for the members of the governing body. None but men of free and legitimate birth, and free from debt and contagious or incurable disease were received. The members of the governing body were styled _jurés_ (_jurati_), _pairs_ (_pares_) or _échevins_ (_scabini_). The last was, however, as in Germany, more properly the title of the jurors in the court of justice, which in many cases remained in the hands of the lord. In some cases the town council developed out of this body; but in the larger cities, like Rouen, several councils worked and all these names were employed side by side. The number of the members of the governing body proper varies from twelve to a hundred, and its functions were both judicial and administrative. There was also known an arrangement corresponding to the German _alte und sitzende Rat_, viz. of retired members who could be called in to lend assistance on important occasions. The most striking distinction, however, as against the _villes consulaires_ was the elevation of the president of the body to the position of _maire_ or _mayeur_ (sometimes also called _prévôt_, _praepositus_). As elsewhere, at first none but the civic aristocracy were admitted to take part in the management of the town's affairs; but from the end of the 13th century a share had to be conceded to representatives of the crafts. Dissatisfaction, however, was not easily allayed; the lower orders applied for the intervention of the king; and that effectively put an end to political freedom. This tendency of calling in state help marks a most striking difference as against the policy followed by the German towns, where all classes appear to have been always far too jealous of local independence. The result for the nation was in the one case despotism, equality and order, in the other individual liberty and an inability to move as a whole. At an earlier stage the king had frequently come to the assistance of the communes in their struggle with their lords. By-and-by the king's confirmation came to be considered necessary for their lawful existence. This proved a powerful lever for the extension of the king's authority. It may seem strange that in France the towns never had recourse to those interurban leagues which played so important a part in Italian and in German history.

These two varieties, the _communes_ and the _villes consulaires_ together form the group of _villes libres_. As opposed to these stand the _villes franches_, also called _villes prévotales_ after the chief officer, _villes de bourgeoisie_ or _villes soumises_. They make up by far the majority of French towns, comprising all those situated in the centre of the kingdom, and also a large number in the north and the south. They are called _villes franches_ on account of their possessing a franchise, a charter limiting the services due by the citizens to their lord, but political status they had little or none. According to the varying extent of the liberties conceded them, there may be distinguished towns governed by an elective body and more or less fully authorized to exercise jurisdiction; towns possessing some sort of municipal organization, but no rights of jurisdiction, except that of simple police; and, thirdly, those governed entirely by seignorial officers. To this last class belong some of the most important cities in France, wherever the king had power enough to withhold liberties deemed dangerous and unnecessary. On the other hand, towns of the first category often come close to the _villes libres_. A strict line of demarcation, however, remains in the mutual oath which forms the basis of the civic community in both varieties of the latter, and in the fact that the _ville libre_ stands to its lord in the relation of vassal and not in that of an immediate possession. But however _complètement assujettie_ Paris might be, its organization, naturally, was immensely more complex than that of hundreds of smaller places which, formally, might stand in an identical relationship to their lords. Like other _villes franches_ under the king, Paris was governed by a _prévôt_ (provost), but certain functions of self-government for the city were delegated to the company of the _marchands de l'eau, mercatores aquae_, also called _mercatores ansati_, that is, the gild of merchants whose business lay down the river Seine, in other words, a body naturally exclusive, not, however, to the citizens as such. At their head stood a _prévôt des marchands_ and four _eschevins de la marchandise_. Other _prud'hommes_ were occasionally called in, and from 1296 _prévôt_ and _échevins_, appointed twenty-four councillors to form with themselves a _parloir aux bourgeois_. The crafts of Paris were organized in _métiers_, whose masters were appointed, some by the _prévôt de Paris_, and some by certain great officers of the court. In the tax rolls of A.D. 1292 to 1300 no fewer than 448 names of crafts occur, while the _Livre des métiers_ written in 1268 by Étienne de Boileau, then _prévôt de Paris_, enumerates 101 organized bodies of tradesmen or women and artisans. Among the duties of these bodies, as elsewhere, was the _guet_ or night-watch, which necessitated a military organization under _quartiniers, cinquantainiers_ and _dixainiers_. This gave them a certain power. But both their revolutions, under the _prévôt des marchands_, Étienne Marcel, after the battle of Maupertuis, and again in 1382, were extremely short-lived, and the only tangible result was a stricter subjection to the king and his officers.

An exceptional position among the cities of France is taken up by those of _Flanders_, more particularly the three "Great Towns," Bruges, Ghent and Ypres, whose population was Flemish, i.e. German. They sprang up at the foot of the count's castles and rose in close conjunction with his power. On the accession of a new house they made their power felt as early as 1128. Afterwards the counts of the house of Dampierre fell into financial dependence on the burghers, and therefore allied themselves with the rising artisans, led by the weavers. These, however, proved far more unruly, bloody conflicts ensued, and for a considerable period the three great cities ruled the whole of Flanders with a high hand. Their influence in the foreign relations of the country was likewise great, it being in their interest to keep up friendly relations with England, on whose wool the flourishing state of the staple industry of Flanders depended. It is a remarkable fact that the historical position taken up by these cities, which politically belonged to France, is much more akin to the part played by the German towns, whereas Cambrai, whose population was French, is the only city politically situated in Germany, where a commune came to be established.

In the _Spanish peninsula_, the chief importance of the numerous small towns lay in the part they played as fortresses during the unceasing wars with the Moors. The kings therefore extended special privileges (_fueros_) to the inhabitants, and they were even at an early date admitted to representation in the Cortes (parliament). Of greater individual importance than all the rest was Barcelona. Already in 1068 Count Berengarius gave the city a special law (_usatici_) based on its ancient usages, and from the 14th century its commercial code (_libro del consolat del mar_) became influential all over southern Europe.

The constitutions of the _Scandinavian_ towns were largely modelled on those of Germany, but the towns never attained anything like the same independence. Their dependence on the royal government most strongly comes out in the fact of their being uniformly regulated by royal law in each of the three kingdoms. In Sweden particularly, German merchants by law took an equal share in the government of the towns. In Denmark their influence was also great, and only in Norway did they remain in the position of foreigners in spite of their famous settlement at Bergen. The details, as well as those of the German settlement at Wisby and on the east coast of the Baltic, belong rather to the history of the Hanseatic League (q.v.). Denmark appears to be the only one of the three kingdoms where gilds at an early date played a part of importance.

BIBLIOGRAPHY.--The only book dealing with the subject in general, viz. K. D. Hüllmann, _Städtewesen des Mittelalters_ (4 vols., Bonn, 1826-1828), is quite antiquated. For Germany it is best to consult Richard Schröder, _Lehrbruch der deutschen Rechtsgeschichte_ (5th ed., Leipzig, 1907), §§ 51 and 56, where a bibliography as complete as need be is given, both of monographs dealing with various aspects of the question, and of works on the history of individual towns. The latter alone covers two large octavo pages of small print. As a sort of complement to Schröder's chapters may be considered, F. Keutgen, _Urkunden zur städtischen Verfassungsgeschichte_ (Berlin, 1901 = _Ausgewählte Urkunden zur deutschen Verfassungsgeschichte_, by G. von Below and F. Keutgen, vol. i.), a collection of 437 select charters and other documents, with a very full index. The great work of G. L. von Maurer, _Geschichte der Städteverfassung von Deutschland_ (4 thick vols., Erlangen, 1869-1871), contains an enormous mass of information not always treated quite so critically as the present age requires. There is an excellent succinct account for general readers by Georg von Below, "Das ältere deutsche Städtewesen und Bürgertum," _Monographien zur Weltgeschichte_, vol. vi. (Bielefeld and Leipzig, 1898, illustrated). A number of the most important recent monographs have been mentioned above. As fpr Italy, the most valuable general work for the early times is still Carl Hegel, _Geschichte der Städteverfassung von Italien seit der Zeit der römischen Herrschaft bis zum Ausgang des zwölften Jahrhunderts_ (2 small vols., Leipzig, 1847, price second-hand, M. 40), in which it was for the first time fully proved that there is no connexion between Roman and modern municipal constitutions. For the period from the 13th century it will perhaps be best to consult W. Assmann, _Geschichte des Mittelalters_, 3rd ed., by L. Viereck, dritte Abteilung, _Die letzten beiden Jahrhunderts des Mittelalters: Deutschland, die Schweiz, und Italien_, by R. Fischer, R. Scheppig and L. Viereck (Brunswick, 1906). In this volume, pp. 679-943 contain an excellent account of the various Italian states and cities during that period, with a full bibliography for each. Among recent critical contributions to the history of individual towns, the following works deserve to be specially mentioned: Robert Davidsohn, _Geschichte von Florenz_ (Berlin, 1896-1908); down to the beginning of the 14th century; the same, _Forschungen zur Geschichte von Florenz_ (vols. i.-iv., Berlin, 1896-1908); Heinrich Kretschmayr, _Geschichte von Venedig_ (vol. i., Gotha, 1905, to 1205). For France, there are the works by Achille Luchaire, _Les Communes françaises à l'époque des Capétiens directs_ (Paris, 1890), and Paul Viollet, "Les Communes françaises au moyen âge," _Mémoires de l'Académie des Inscriptions et Belles-lettres_, tome xxxvi. (Paris, 1900). There are, of course, also accounts in the great works on French institutions by Flach, Glasson, Viollet, Luchaire, but perhaps the one in Luchaire's _Manuel des institutions françaises, période des Capétiens directs_ (Paris, 1892) deserves special recommendation. Another valuable account for France north of the Loire is that contained in the great work by Karl Hegel, _Städte und Gilden der germanischen Völker im Mittelaller_ (2 vols., Leipzig, 1891; see _English Historical Review_, viii. 120-127). Of course, there are also numerous monographs, among which the following may be mentioned: Édouard Bonvalot, _Le Tiers État d'après la charte de Beaumont et ses filiales_ (Paris, 1884); and A. Giry, _Les Êtablissements de Rouen_ (2 vols., Paris, 1883-1885); also a collection of documents by Gustave Fagniez, _Documents relatifs à l'histoire de l'industrie et du commerce en France_ (2 vols., Paris, 1898, 1900). Some valuable works on the commercial history of southern Europe should still be mentioned, such as W. Heyd, _Geschichte des Levantehandels im Mittelalter_ (2 vols., Stuttgart, 1879; French edition by Furcy Raynaud, 2 vols., Paris, 1885 seq., improved by the author), recognized as a standard work; Adolf Schaube, _Handelsgeschichte der romanischen Völker des Mittelmeergebietes bis zum Ende der Kreuzzüge_ (Munich and Berlin, 1906); Aloys Schulte, _Geschichte des mittelalterlichen Handels und Verkehrs zwischen Westdeutschland und Italien mit Ausschluss Venedigs_ (2 vols., Leipzig, 1900); L. Goldschmidt, _Universalgesdiichte des Handelsrechts_ (vol. i., Stuttgart, 1891). As for the Scandinavian towns, the best guide is perhaps the book by K. Hegel, _Städte und Gilden der germanischen Völker_, already mentioned; but see also Dietrich Schäfer, "Der Stand der Geschichtswissenschaft im skandinavischen Norden," _Internationale Wochenschrift_, November 16, 1907. (F. K.)

FOOTNOTES:

[1] As to the former, see S. Rietschel, _Die Civitas auf deutschem Boden bis zum Ausgange der Karolingerzeit_ (Leipzig, 1894); and, for the newly founded towns, the same author, _Markt und Stadt in ihrem rechtlichen Verhältnis_ (Leipzig, 1897).

[2] About the _Burggraf_, see S. Rietschel, _Das Burggrafenamt und die hohe Gerichtsbarkeit in den deutschen Bischofsstädten während des früheren Mittelalters_ (Leipzig, 1905).

[3] As to the towns as fortresses, see also F. Keutgen, _Untersuchungen über den Ursprung der deutschen Stadtverfassung_ (Leipzig, 1895); and "Der Ursprung der deutschen Stadtverfassung" (_Neue Jahrbücher für das klassische Altertum_, &c, N.F. vol. v.).

[4] See S. Rietschel, _Markt und Stadt_, and J. Fritz, _Deutsche Stadtanlagen_ (Strassburg, 1894).

[5] G. von Below, _Die Entstehung der deutschen Stadtgemeinde_ (Düsseldorf, 1889); and _Der Ursprung der deutschen Stadtverfassung_ (Düsseldorf, 1892).

[6] F. Keutgen, _Urkunden zur städtischen Verfassungsgeschichte_, No. 74 and No. 75 (Berlin, 1901).

[7] F. Keutgen, _Ämter und Zünfte_ (Jena, 1903).

[8] J. Weizsäcker, _Der rheinische Bund_ (Tübingen, 1879).

[9] G. v. Below, _Der Untergang der mittelalterlichen Stadtwirtschaft; Über Theorien der wirtschaftlichen Entwicklung der Völker_; F. Keutgen, "Hansische Handelsgesellschaften, vornehmlich des 14ten Jahrhunderts," in _Vierteljahrsschrift für Sozial- und Wirtschaftsgeschichte_, vol. iv. (1906).

[10] On this whole subject see Richard Schröder, _Lehrbuch der deutschen Rechtsgeschichte_ (5th ed., Leipzig, 1907), § 56, "Die Stadtrechte." Also Charles Gross, _The Gild Merchant_ (Oxford, 1890), vol. i. Appendix E, "Affiliation of Medieval Boroughs."

[11] H. Kretschmayr, _Geschichte von Venedig_, vol. i. (Gotha, 1905).

COMMUNISM, the name loosely given to schemes of social organizations depending on the abolition of private property and its absorption into the property of a community as such. It is a form of what is now generally called socialism (q.v.), the terminology of which has varied a good deal according to time and place; but the expression "communism" may be conveniently used, as opposed to "socialism" in its wider political sense, or to the political and municipal varieties known as "collectivism," "state socialism," &c., in order to indicate more

## particularly the historical schemes propounded or put into practice for

establishing certain ideally arranged communities composed of individuals living and working on the basis of holding their property in common. It has nothing, of course, to do with the Paris Commune, overthrown in May 1871, which was a political and not an economic movement. Communistic schemes have been advocated in almost every age and country, and have to be distinguished from mere anarchism or from the selfish desire to transfer other people's property into one's own pockets. The opinion that a communist is merely a man who has no property to lose, and therefore advocates a redistribution of wealth, is contrary to the established facts as to those who have historically supported the theory of communism. The Corn-law Rhymer's lines on this subject are amusing, but only apply to the baser sort:--

"What is a Communist! One that hath yearnings For equal division of unequal earnings. Idler or bungler, or both, he is willing To fork out his penny and pocket your shilling."

This is the communist of hostile criticism--a criticism, no doubt, ultimately based on certain fundamental facts in human nature, which have usually wrecked communistic schemes of a purely altruistic type in conception. But the great communists, like Plato, More, Saint-Simon, Robert Owen, were the very reverse of selfish or idle in their aims; and communism as a force in the historical evolution of economic and social opinion must be regarded on its ideal side, and not merely in its lapses, however natural the latter may be in operation, owing to the defects of human character. As a theory it has inspired not only some of the finest characters in history, but also much of the gradual evolution of economic organization--especially in the case of co-operation (q.v.); and its opportunities have naturally varied according to the state of social organization in particular countries. The communism of the early Christians, for instance, was rather a voluntary sharing of private property than any abnegation of property as such. The Essenes and the Therapeutae, however, in Palestine, had a stricter form of communism, and the former required the surrender of individual property; and in the middle ages various religious sects, followed by the monastic orders, were based on the communistic principle.

Communistic schemes have found advocates in almost every age and in many different countries. The one thing that is shared by all communists, whether speculative or practical, is deep dissatisfaction with the economic conditions by which they are surrounded. In Plato's _Republic_ the dissatisfaction is not limited to merely economic conditions. In his examination of the body politic there is hardly any part which he can pronounce to be healthy. He would alter the life of the citizens of his state from the very moment of birth. Children are to be taken away from their parents and nurtured under the supervision of the state. The old nursery tales, "the blasphemous nonsense with which mothers fool the manhood out of their children," are to be suppressed. Dramatic and imitative poetry are not to be allowed. Education, marriage, the number of births, the occupations of the citizens are to be controlled by the guardians or heads of the state. The most perfect equality of conditions and careers is to be preserved; the women are to have similar training with the men, no careers and no ambition are to be forbidden to them; the inequalities and rivalries between rich and poor are to cease, because all will be provided for by the state. Other cities are divided against themselves. "Any ordinary city, however small, is in fact two cities, one the city of the poor, the other of the rich, at war with one another" (_Republic_, bk. iv. p. 249, Jowett's translation). But this ideal state is to be a perfect unit; although the citizens are divided into classes according to their capacity and ability, there is none of the exclusiveness of birth, and no inequality is to break the accord which binds all the citizens, both male and female, together into one harmonious whole. The marvellous comprehensiveness of the scheme for the government of this ideal state makes it belong as much to the modern as to the ancient world. Many of the social problems to which Plato draws attention are yet unsolved, and some are in process of solution in the direction indicated by him. He is not appalled by the immensity of the task which he has sketched out for himself and his followers. He admits that there are difficulties to be overcome, but he says in a sort of parenthesis, "Nothing great is easy." He refuses to be satisfied with half measures and patchwork reforms. "Enough, my friend! but what is enough while anything remains wanting?" These sentences indicate the spirit in which philosophical as distinguished from practical communists from the time of Plato till to-day have undertaken to reconstruct human society.

Sir Thomas More's _Utopia_ has very many of the characteristics of _The Republic_. There is in it the same wonderful power of shaking off the prejudices of the place and time in which it was written. The government of Utopia is described as founded on popular election; community of goods prevailed, the magistrates distributed the instruments of production among the inhabitants, and the wealth resulting from their industry was shared by all. The use of money and all outward ostentation of wealth were forbidden. All meals were taken in common, and they were rendered attractive by the accompaniment of sweet strains of music, while the air was filled by the scent of the most delicate perfumes. More's ideal state differs in one important respect from Plato's. There was no community of wives in Utopia. The sacredness of the family relation and fidelity to the marriage contract were recognized by More as indispensable to the well-being of modern society. Plato, notwithstanding all the extraordinary originality with which he advocated the emancipation of women, was not able to free himself from the theory and practice of regarding the wife as part and parcel of the property of her husband. The fact, therefore, that he advocated community of property led him also to advocate community of wives. He speaks of "the _possession and use_ of women and children," and proceeds to show how this possession and use must be regulated in his ideal state. Monogamy was to him mere exclusive possession on the part of one man of a piece of property which ought to be for the benefit of the public. The circumstance that he could not think of wives otherwise than as the property of their husbands only makes it the more remarkable that he claimed for women absolute equality of training and careers. The circumstance that communists have so frequently wrecked their projects by attacking marriage and advocating promiscuous intercourse between the sexes may probably be traced to the notion which regards a wife as being a mere item among the goods and chattels of her husband. It is not difficult to find evidence of the survival of this ancient habit of mind. "I will be master of what is mine own," says Petruchio. "She is my goods, my chattels."

The Perfectionists of Oneida, on the other hand, held that there was "no intrinsic difference between property in persons and property in things; and that the same spirit which abolished exclusiveness in regard to money would abolish, if circumstances allowed full scope to it, exclusiveness in regard to women and children" (Nordhoff's _Communistic Societies of the United States_). It is this notion of a wife as property that is responsible for the wild opinions communists have often held in favour of a community of wives and the break-up of family relations. If they could shake off this notion and take hold of the conception of marriage as a contract, there is no reason why their views on the community of property should lead them to think that this contract should not include mutual fidelity and remain in force during the life of the contracting parties. It was probably not this conception of the marriage relation so much as the influence of Christianity which led More to discountenance community of wives in Utopia. It is strange that the same influence did not make him include the absence of slavery as one of the characteristics of his ideal state. On the contrary, however, we find in Utopia the anomaly of slavery existing side by side with institutions which otherwise embody the most absolute personal, political and religious freedom. The presence of slaves in Utopia is made use of to get rid of one of the practical difficulties of communism, viz. the performance of disagreeable work. In a society where one man is as good as another, and the means of subsistence are guaranteed to all alike, it is easy to imagine that it would be difficult to ensure the performance of the more laborious, dangerous and offensive kinds of labour. In Utopia, therefore, we are expressly told that "all the uneasy and sordid services" are performed by slaves. The institution of slavery was also made supplementary to the criminal system of Utopia, as the slaves were for the most part men who had been convicted of crime; slavery for life was made a substitute for capital punishment.

In many respects, however, More's views on the labour question were vastly in advance of his own time. He repeats the indignant protest of the _Republic_ that existing society is a warfare between rich and poor. "The rich," he says, "desire every means by which they may in the first place secure to themselves what they have amassed by wrong, and then take to their own use and profit, at the lowest possible price, the work and labour of the poor. And so soon as the rich decide on adopting these devices in the name of the public, then they become law." One might imagine these words had been quoted from the programme of The International (q.v.), so completely is their tone in sympathy with the hardships of the poor in all ages. More shared to the full the keen sympathy with the hopeless misery of the poor which has been the strong motive power of nearly all speculative communism. The life of the poor as he saw it was so wretched that he said, "Even a beast's life seems enviable!" Besides community of goods and equality of conditions, More advocated other means of ameliorating the condition of the people. Although the hours of labour were limited to six a day there was no scarcity, for in Utopia every one worked; there was no idle class, no idle individual even. The importance of this from an economic point of view is insisted on by More in a passage remarkable for the importance which he attaches to the industrial condition of women. "And this you will easily apprehend," he says, "if you consider how great a part of all other nations is quite idle. First, women generally do little, who are the half of mankind." Translated into modern language his proposals comprise universal compulsory education, a reduction of the hours of labour to six a day, the most modern principles of sanitary reform, a complete revision of criminal legislation, and the most absolute religious toleration. The romantic form which Sir Thomas More gave to his dream of a new social order found many imitators. The _Utopia_ may be regarded as the prototype of Campanella's _City of the Sun_, Harrington's _Oceana_, Bacon's _Nova Atlantis_, Defoe's _Essay on Projects_, Fénelon's _Voyage dans l'Île des Plaisirs_, and other works of minor importance.

All communists have made a great point of the importance of universal education. All ideal communes have been provided by their authors with a perfect machinery for securing the education of every child. One of the first things done in every attempt to carry communistic theories into practice has been to establish a good school and guarantee education to every child. The first impulse to national education in the 19th century probably sprang from the very marked success of Robert Owen's schools in connexion with the cotton mills at New Lanark. Compulsory education, free trade, and law reform, the various movements connected with the improvement of the condition of women, have found their earliest advocates among theoretical and practical communists. The communists denounce the evils of the present state of society; the hopeless poverty of the poor, side by side with the self-regarding luxury of the rich, seems to them to cry aloud to Heaven for the creation of a new social organization. They proclaim the necessity of sweeping away the institution of private property, and insist that this great revolution, accompanied by universal education, free trade, a perfect administration of justice, and a due limitation of the numbers of the community, would put an end to half the self-made distress of humanity.

The various communistic experiments in America are the most interesting in modern times, opportunities being naturally greater there for such deviations from the normal forms of regulations as compared with the closely organized states of Europe, and particularly in the means of obtaining land cheaply for social settlements with peculiar views. They have been classified by Morris Hillquit (_History of Socialism in the United States_, 1903) as (1) sectarian, (2) Owenite, (3) Fourieristic, (4) Icarian.

1. The oldest of the sectarian group was the society of the Shakers (q.v.), whose first settlement at Watervliet was founded in 1776. The Harmony Society or Rappist Community was introduced into Pennsylvania by George Rapp (1770-1847) from Württemberg in 1804, and in 1815 they moved to a settlement (New Harmony) in Indiana, returning to Pennsylvania again in 1824, and founding the village of Economy, from which they were also known as Economites. Emigrants from Württemberg also founded the community of Zoar in Ohio in 1817, being incorporated in 1832 as the Society of Separatists of Zoar; it was dissolved in 1898. The Amana (q.v.) community, the strongest of all American communistic societies, originated in Germany in the early part of the 18th century as "the True Inspiration Society," and some 600 members removed to America in 1842-1844. The Bethel (Missouri) and Aurora (Oregon) sister communities were founded by Dr Keil (1812-1877) in 1844 and 1856 respectively, and were dissolved in 1880 and 1881. The Oneida Community (q.v.), created by John Humphrey Noyes (1811-1886), the author of a famous _History of American Socialisms_ (1870), was established in 1848 as a settlement for the Society of Perfectionists. All these bodies had a religious basis, and were formed with the object of enjoying the free exercise of their beliefs, and though communistic in character they had no political or strictly economic doctrine to propagate.

2. The Owenite communities rose under the influence of Robert Owen's work at New Lanark, and his propaganda in America from 1824 onwards, the principal being New Harmony (acquired from the Rappists in 1825); Yellow Springs, near Cincinnati, 1824; Nashoba, Tennessee, 1825; Haverstraw, New York, 1826; its short-lived successors, Coxsackie, New York, and the Kendal Community, Canton, Ohio, 1826. All these had more or less short existences, and were founded on Owen's theories of labour and economics.

3. The Fourierist communities similarly were due to the Utopian teachings of the Frenchman Charles Fourier (q.v.), introduced into America by his disciple Albert Brisbane (1809-1890), author of _The Social Destiny of Man_ (1840), who was efficiently helped by Horace Greeley, George Ripley and others. The North American Phalanx, in New Jersey, was started in 1843 and lasted till 1855. Brook Farm (q.v.) was started as a Fourierist Phalanx in 1844, after three years' independent career, and became the centre of Fourierist propaganda, lasting till 1847. The Wisconsin Phalanx, or Ceresco, was organized in 1844, and lasted till 1850. In Pennsylvania seven communities were established between 1843 and 1845, the chief of which were the Sylvania Association, the Peace Union Settlement, the Social Reform Unity, and the Leraysville Phalanx. In New York state the chief were the Clarkson Phalanx, the Sodus Bay Phalanx, the Bloomfield Association, and the Ontario Union. In Ohio the principal were the Trumbull Phalanx, the Ohio Phalanx, the Clermont Phalanx, the Integral Phalanx, and the Columbian Phalanx; and of the remainder the Alphadelphia Phalanx, in Michigan, was the best-known. It is pointed out by Morris Hillquit that while only two Fourierist Phalanxes were established in France, over forty were started in the United States.

4. The Icarian communities were due to the communistic teachings of another Frenchman, Étienne Cabet (q.v.) (1788-1856), the name being derived from his social romance, _Voyage en Icarie_ (1840), sketching the advantages of an imaginary country called Icaria, with a co-operative system, and criticizing the existing social organization. It was his idea, in fact, of a Utopia. Robert Owen advised him to establish his followers, already numerous, in Texas, and thither about 1500 went in 1848. But disappointment resulted, and their numbers dwindled to less than 500 in 1849; some 280 went to Nauvoo, Illinois; after a schism in 1856 some formed a new colony (1858) at Cheltenham, near St Louis; others went to Iowa, others to California. The last branch was dissolved in 1895.

See also the articles SOCIALISM; OWEN; SAINT-SIMON; FOURIER, &c.; and the bibliography to SOCIALISM. The whole subject is admirably covered in Morris Hillquit's work, referred to above; and see also Noyes's _History of American Socialisms_ (1870); Charles Nordhoff's _Communistic Societies of the United States_ (1875); and W. A. Hinds's _American Communities_ (1878; 2nd edition, 1902), a very complete account.

COMMUTATION (from Lat. _commutare_, to change), a process of exchanging one thing for another, particularly of one method of payment for another, such as payment in money for payment in kind or by service, or of payment of a lump sum for periodical payments; for various kinds of such substitution see ANNUITY; COPYHOLD and TITHES. The word is also used similarly of the substitution of a lesser sentence on a criminal for a greater. In electrical engineering, the word is applied to the reversal of the course of an electric current, the contrivance for so doing being known as a "commutator" (see DYNAMO). In America, a "commutation ticket" on a railway is one which allows a person to travel at a lower rate over a particular route for a certain time or for a certain number of times; the person holding such a ticket is known as a "commuter."

COMNENUS, the name of a Byzantine family which from 1081 to 1185 occupied the throne of Constantinople. It claimed a Roman origin, but its earliest representatives appear as landed proprietors in the district of Castamon (mod. _Kastamuni_) in Paphlagonia. Its first member known in Byzantine history is Manuel Eroticus Comnenus, an able general who rendered great services to Basil II. (976-1025) in the East. At his death he left his two sons Isaac and John in the care of Basil, who gave them a careful education and advanced them to high official positions. The increasing unpopularity of the Macedonian dynasty culminated in a revolt of the nobles and the soldiery of Asia against its feeble representative Michael VI. Stratioticus, who abdicated after a brief resistance. Isaac was declared emperor, and crowned in St Sophia on the 2nd of September 1057. For the rulers of this dynasty see ROMAN EMPIRE, LATER, and separate articles.

With Andronicus I. (1183-1185) the rule of the Comneni proper at Constantinople came to an end. A younger line of the original house, after the establishment of the Latins at Constantinople in 1204, secured possession of a fragment of the empire in Asia Minor, and founded the empire of Trebizond (q.v.), which lasted till 1461, when David Comnenus, the last emperor, was deposed by Mahommed II.

For a general account of the family and its alleged survivors see article "Komnenen," by G. F. Hertzberg, in Ersch and Gruber's _Allgemeine Encyklopädie_, and an anonymous monograph, _Précis historique de la maison impériale des Comnènes_ (Amsterdam, 1784); and, for the history of the period, the works referred to under ROMAN EMPIRE, LATER.

COMO (anc. _Comum_), a city and episcopal see of Lombardy, Italy, the capital of the province of Como, situated at the S. end of the W. branch of the Lake of Como, 30 m. by rail N. by W. of Milan. Pop. (1881) 25,560; (1905) 34,272 (town), 41,124 (commune). The city lies in a valley enclosed by mountains, the slopes of which command fine views of the lake. The old town, which preserves its rectangular plan from Roman times, is enclosed by walls, with towers constructed in the 12th century. The cathedral, built entirely of marble, occupies the site of an earlier church, and was begun in 1396, from which period the nave dates: the façade belongs to 1457-1486, while the east of the exterior was altered into the Renaissance style, and richly decorated with sculptures by Tommaso Rodari in 1487-1526. The dome is an unsuitable addition of 1731 by the Sicilian architect Filippo Juvara (1685-1735), and its baroque decorations spoil the effect of the fine Gothic interior. It contains some good pictures and fine tapestries. In the same line as the façade of the cathedral are the Broletto (in black and white marble), dating from 1215, the seat of the original rulers of the commune, and the massive clock-tower. The Romanesque church of S. Abondio outside the town was founded in 1013 and consecrated in 1095; it has two fine campanili, placed at the ends of the aisles close to the apse. It occupies the site of the 5th-century church of SS. Peter and Paul. Near it is the Romanesque church of S. Carpoforo. Above it is the ruined castle of Baradello. The churches of S. Giacomo (1095-1117) and S. Fedele (12th century), both in the town, are also Romanesque, and the apses have external galleries. The Palazzo Giovio contains the Museo Civico. Como is a considerable tourist resort, and the steamboat traffic on the lake is largely for travellers. A climate station is established on the hill of Brunate (2350 ft.) above the town to the E., reached by a funicular railway. The Milanese possess many villas here. Como is an industrial town, having large silk factories and other industries (see LOMBARDY). It is connected with Milan by two lines of railway, one via Monza (the main line, which goes on to Chiasso--Swiss frontier--and the St Gotthard), the other via Saronno and also with Lecco and Varese.

Of the Roman Comum little remains above ground; a portion of its S.E. wall was discovered and may be seen in the garden of the Liceo Volta, 88 ft. within the later walls: later fortifications (but previous to 1127), largely constructed with Roman inscribed sepulchral urns and other fragments, had been superimposed on it. Thermae have also been discovered (see V. Barelli in _Notizie degli scavi_, 1880, 333; 1881, 333; 1882, 285). The inscriptions, on the other hand, are numerous, and give an idea of its importance. The statements as to the tribe which originally possessed it are various. It belonged to Gallia Cisalpina, and first came into contact with Rome in 196 B.C., when M. Claudius Marcellus conquered the Insubres and the Comenses. In 89 B.C., having suffered damage from the Raetians, it was restored by Cn. Pompeius Strabo, and given Latin rights with the rest of Gallia Transpadana. Shortly after this 3000 colonists seem to have been sent there; 5000 were certainly sent by Caesar in 59 B.C., and the place received the name Novum Comum. It appears in the imperial period as a _municipium_, and is generally spoken of as Comum simply. The place was prosperous; it had an important iron industry; and the banks of the lake were, as now, dotted with villas. It was also important as the starting-point for the journey across the lake in connexion with the Splugen and Septimer passes (see CHIAVENNA). It was the birthplace of both the elder and the younger Pliny, the latter of whom founded baths and a library here and gave money for the support of orphan children. There was a _praefectus classis Comensis_ under the late empire, and it was regarded as a strong fortress. See Ch. Hulsen in Pauly-Wissowa, _Realencyclopädie_, Suppl. Heft i. (Stuttgart, 1903), 326.

Como suffered considerably from the early barbarian invasions, many of the inhabitants taking refuge on the Isola Comacina off Sala, but recovered in Lombard times. It was from that period that the _magistri Comacini_ formed a privileged corporation of architects and sculptors, who were employed in other parts of Italy also, until, at the end of the 11th century, individuals began to come more to the front (G. T. Rivoira, _Origini del l'architettura Lombarda_, Rome, 1901, i. 127 f.). Como then became subject to the archbishops of Milan, but gained its freedom towards the end of the 11th century. At the beginning of the 12th century war broke out between Como and Milan, and after a ten years' war Como was taken and its fortifications dismantled in 1127. In 1154, however, it took advantage of the arrival of Barbarossa, and remained faithful to him throughout the whole war of the Lombard League. After frequent struggles with Milan, it fell under the power of the Visconti in 1335. In 1535, like the rest of Lombardy, it fell under Spanish dominion, and in 1714 under Austrian. Thenceforth it shared the fortunes of Milan, becoming in the Napoleonic period the chief town of the department of the Lario. Its silk industry and its position at the entrance to the Alpine passes gave it some importance even then. It bore a considerable part in the national risings of 1848-1859 against Austrian rule. (T. As.)

COMO, Lake of (the _Lacus Larius_ of the Romans, and so sometimes called Lario to the present day, though in the 4th century it is already termed _Lacus Comacinus_), one of the most celebrated lakes in Lombardy, Northern Italy. It lies due N. of Milan and is formed by the Adda that flows through the Valtelline to the north end of the lake (here falls in the Maira or Mera, coming from the Val Bregaglia) and flows out of it at its south-eastern extremity, on the way to join the Po. Its area is 55½ sq. m., it is about 43 m. from end to end (about 30½ m. from the north end of Bellagio), it is from 1 to 2½ m. in breadth, its surface is 653 ft. above the sea, and its greatest depth is 1365 ft. A railway line now runs along its eastern shore from Colico to Lecco (24½ m.), while on its western shore Menaggio is reached by a steam tramway from Porlezza on the Lake of Lugano (8 m.). Colico, at the northern extremity, is by rail 17 m. from Chiavenna and 42 m. from Tirano, while at its southern end Como (on the St Gotthard line) is 32 m. from Milan, and Lecco about the same distance. The lake fills a remarkable depression which has been cut through the limestone ranges that enclose it, and once doubtless extended as far as Chiavenna, the Lake of Mezzola being a surviving witness of its ancient bed. Towards the south the promontory of Bellagio divides the lake into two arms. That to the south-east ends at Lecco and is the true outlet, for the south-western arm, ending at Como, is an enclosed bay. During the morning the _Tivano_ wind blows from the north, while in the afternoon the _Breva_ wind blows from the south. But, like other Alpine lakes, the Lake of Como is exposed to sudden violent storms. Its beauties have been sung by Virgil and Claudian, while the two Plinys are among the celebrities associated with the lake. The shores are bordered by splendid villas, while perhaps the most lovely spot on it is Bellagio, built in an unrivalled position. Among the other villages that line the lake, the best-known are Varenna (E.) and Menaggio (W.), nearly opposite one another, while Cadenabbia (W.) faces Bellagio. (W. A. B. C.)

COMONFORT, IGNACIO (1812-1863), a Mexican soldier and politician, who, after occupying a variety of civil and military posts, was in December 1855 made provisional president by Alvarez, and from December 1857 was for a few weeks constitutional president. (See MEXICO.)

COMORIN, CAPE, a headland in the state of Travancore, forming the extreme southern point of the peninsula of India. It is situated in 8° 4' 20" N., 77° 35' 35" E., and is the terminating point of the western Ghats. The village of Comorin, with the temple of Kanniyambal, the "virgin goddess," on the coast at the apex of the headland, is a frequented place of pilgrimage.

COMORO ISLANDS, a group of volcanic islands belonging to France, in the Indian Ocean, at the northern entrance of the Mozambique Channel midway between Madagascar and the African continent. The following table of the area and population of the four largest islands gives one of the sets of figures offered by various authorities:--

+-------------------+-------------+--------------+ | | Area sq. m. | Population. | +-------------------+-------------+--------------+ | Great Comor | 385 | 50,000 | | Anjuan or Johanna | 145 | 12,000 | | Mayotte | 140 | 11,000 | | Moheli | 90 | 9,000 | | +-------------+--------------+ | Total | 760 | 82,000 | +-------------------+-------------+--------------+

There are besides a large number of islets of coral formation.

## Particulars of the four islands named follow.

1. Great Comoro, or Angazia, the largest and most westerly, has a length of about 38 m., with a width of about 12 m. Near its southern extremity it rises into a fine dome-shaped volcanic mountain, Kartola (Karthala), which is over 8500 ft. high, and is visible for more than 100 m. Up to about 6000 ft. it is clothed with dense vegetation. Eruptions are recorded for the years 1830, 1855 and 1858; and another eruption occurred in 1904. In the north the ground rises gradually to a plateau some 2000 ft. above the sea; from this plateau many regularly shaped truncated cones rise another 2000 ft. The centre of the island consists of a desert field of lava streams, about 1600 ft. high. The chief towns are Maroni (pop. about 2000), Itzanda and Mitsamuli; the first, situated at the head of a bay in 11° 40' S., being the seat of the French administrator.

2. Anjuan, or Johanna, next in size, lies E. by S. of Comoro. It is some 30 m. long by 20 at its greatest breadth. The land rises in a succession of richly wooded heights till it culminates in a central peak, upwards of 5000 ft. above the sea, in 12° 14' S., 44° 27' E. The former capital, Mossamondu, on the N.W. coast, is substantially built of stone, surrounded by a wall, and commanded by a dilapidated citadel; it is the residence of the sultan and of the French administrator. There is a small but safe anchorage at Pomony, on the S. side, formerly used as a coal depot by ships of the British navy.

3. Mayotte, about 21 m. long by 6 or 7 m. broad, is surrounded by an extensive and dangerous coral reef. The principal heights on its extremely irregular surface are: Mavegani Mountain, which rises in two peaks to a maximum of 2164 ft., and Uchongin, 2100 ft. The French headquarters are on the islet of Zaudzi, which lies within the reef in 12° 46' S., 45° 20' E. There are substantial government buildings and store-houses. On the mainland opposite Zaudzi is Msapéré, the chief centre of trade. Mayotte was devastated in 1898 by a cyclone of great severity.

4. Moheli or Mohilla lies S. of and between Anjuan and Grand Comoro. It is 15 m. long and 7 or 8 m. at its maximum breadth. Unlike the other three it has no peaks, but rises gradually to a central ridge about 1900 ft. in height. Fomboni (pop. about 2000) in the N.W. and Numa Choa in the S.W. are the chief towns.

All the islands possess a very fertile soil; there are forests of coco-nut palms, and among the products are rice, maize, sweet-potatoes, yams, coffee, cotton, vanilla and various tropical fruits, the papaw tree being abundant. The fauna is allied to that of Madagascar rather than to the mainland of Africa; it includes some land birds and a species of lemur peculiar to the islands. Large numbers of cattle and sheep, the former similar to the small species at Aden, are reared as well as, in Great Comoro, the zebra. Turtles are caught in abundance along the coasts, and form an article of export. The climate is in general warm, but not torrid nor unsuitable for Europeans. The dry season lasts from May to the end of October, the rest of the year being rainy. The natives are of mixed Malagasy, Negro and Arab blood. The majority are Mahommedans. The European inhabitants, mostly French, number about 600. There are some 200 British Indians, traders, in the islands. The external trade of the islands has developed since the annexation of Madagascar to France, and is of the value of about £100,000 a year. Sugar refineries, distilleries of rum, and sawmills are worked in Mayotte by French settlers. Cane sugar and vanilla are the chief exports. The islands are regularly visited by vessels of the Messageries Maritimes fleet, and a coaling station for the French navy has been established.

The islands were first visited by Europeans in the 16th century; they are marked on the map of Diego Ribero made in 1527. At that time, and for long afterwards, the dominant influence in, and the civilization of, the islands was Arab. According to tradition the islands were first peopled by Arab voyagers driven thither by tempests. The petty sultans who exercised authority were notorious slave traders. A Sakalava chief who had been driven from Madagascar by the Hovas took refuge in Mayotte _c._ 1830, and, with the aid of the sultan of Johanna, conquered the island, which for a century had been given over to civil war. French naval officers having reported on the strategic value of Mayotte, Admiral de Hell, governor of Réunion, sent an officer there in 1841, and a treaty was negotiated ceding the island to France. Possession was taken in 1843, the sultan of Johanna renouncing his claims in the same year. In 1886 the sultans of the other three islands were placed under French protection, France fearing that otherwise the islands would be taken by Germany. The French experienced some difficulty with the natives, but by 1892 had established their position. The islands, as regulated by the decree of the 9th of April 1908, are under the supreme authority of the governor-general of Madagascar. The local administration is in the hands of an official who himself governs Mayotte but is represented in the other islands by administrators. On the council which assists the governor are two nominated native notables. In 1910 the sultan of Great Comoro ceded his sovereign rights to France. In Anjuan the native government is continued under French supervision. The budgets of the four islands in 1904 came to some £30,000, that of Mayotte being about half the total. The chief sources of revenue are poll and house taxes, and, in Mayotte, a land tax.

The _Iles Glorieuses_, three islets 160 m. N.E. of Mayotte, with a population of some 20 souls engaged in the collection of guano and the capture of turtles, were in 1892 annexed to France and placed under the control of the administrator of Mayotte.

See _Notice sur Mayotte et les Comores_, by Emile Vienne, one of the memoirs on the French colonies prepared for the Paris Exhibition of 1900; _Le Sultanat d'Anjouan_, by Jules Repiquet (Paris, 1901), a systematic account of the geography, ethnology and history of Johanna; _Les colonies françaises_ (Paris, 1900), vol. ii. pp. 179-197, in which the story of the archipelago is set forth by various writers; an account of the islands by A. Voeltzkow in the _Zeitschrift_ of the Berlin Geog. Soc. (No. 9, 1906), and _Carte des Iles Comores_, by A. Meunier (Paris, 1904).

COMPANION (through the O. Fr. _compaignon_ or _compagnon_, from the Late Lat. _companio_,--_cum_, with, and _panis_, bread,--one who shares meals with another; the word has been wrongly derived from the Late Lat. _compagnus_, one of the same _pagus_ or district), a mess-mate or "comrade" (a term which itself has a similar origin, meaning one who shares the same _camera_ or room). "Companion" is particularly used of soldiers, as in the expression "companion in arms," and so is the title of the lowest rank in a military or other order of knighthood; the word is also used of a person who lives with another in a paid position for the sake of company, and is looked on rather as a friend than a servant; and of a pair or match, as of pictures and the like. Similar in ultimate origin but directly adapted from the Fr. _chambre de la compagne_, and Ital. _camera della compagna_, the storeroom for provisions on board ship, is the use of "companion" for the framed windows over a hatchway on the deck of a ship, and also for the hooded entrance-stairs to the captain's cabin.

COMPANY, one of a number of words like "partnership," "union," "gild," "society," "corporation," denoting--each with its special shade of meaning--the association of individuals in pursuit of some common object. The taking of meals together was, as the word signifies (_cum_, with, _panis_, bread,) a characteristic of the early company. Gild had a similar meaning: but this characteristic, though it survives in the Livery company (see LIVERY COMPANIES), has in modern times disappeared. The word "company" is now monopolized--in British usage--by two great classes of companies--(1) the joint stock company, constituted under the Companies (Consolidation) Act 1908, which consolidated the various acts from 1862 to 1907, and (2) the "public company," constituted under a special act to carry on some work of public utility, such as a railway, docks, gasworks or waterworks, and regulated by the Companies Clauses Acts 1845 and 1863.

1. _Joint Stock Companies._

The joint stock company may be defined as an association of persons incorporated to promote by joint contributions to a common stock the carrying on of some commercial enterprise. Associations formed not for "the acquisition of gain" but to promote art, science, religion, charity or some other useful or philanthropic object, though they may be constituted under the Companies (Consolidation) Act 1908, seldom call themselves companies, but adopt some name more appropriate to express their objects, such as society, club, institute, college or chamber. The joint stock company has had a long history which can only be briefly sketched here. The name of "joint stock company" is--or was--used to distinguish such a company from the "regulated company," which did not trade on a joint stock but was in the nature of a trade gild, the members of which had a monopoly of foreign trade with particular countries or places (see Adam Smith, _Wealth of Nations_, bk. v. ch. i. pt. iii.).

The earliest kind of joint stock company is the chartered (see CHARTERED COMPANIES). The grant of a charter is one of the exclusive privileges of the crown, and the crown has from time to time exercised it in furtherance of trading enterprise. Examples of such grants are the Merchant Adventurers of England, chartered by Richard II. (1390); the East India Co., chartered by Queen Elizabeth (1600); the Bank of England, chartered by William and Mary (1694); the Hudson's Bay Co.; the Royal African Co.; the notorious South Sea Co.; and in later times the New Zealand Co., the North Borneo Co., and the Royal Niger Co. Chartered companies had, however, several disadvantages. A charter was not easily obtainable. It was costly. The members could not be made personally liable for the debts of the company: and once created--though only for defined objects--such a company was invested with entire independence and could not be kept to the conditions imposed by the grant, which was against public policy. A new form of commercial association was wanted, free from these defects, and it was found in the common law company--the lineal ancestor of the modern trading company. The common law company was not an incorporated association: it was simply a great partnership with transferable shares. Companies of this kind multiplied rapidly towards the close of the 17th century and the beginning of the 18th century, but they were regarded with strong disfavour by the law, for reasons not very intelligible to modern notions; the chief of these reasons being that such companies purported to act as corporate bodies, raised transferable stock, used charters for purposes not warranted by the grant, and were--or were supposed to be--dangerous and mischievous, tending (in the words of the preamble of the Bubble Act) to "the common grievance, prejudice and inconvenience of His Majesty's subjects or great numbers of them in trade, commerce or other lawful affairs." They were too often--and this no doubt was the real ground of the prejudice against them--utilized by unprincipled persons to promote fantastic and often fraudulent schemes. Matthew Green, in his poem "The Spleen," notes how

"Wrecks appear each day, And yet fresh fools are cast away."

The result was that by the act (6 Geo. I. c. 18) commonly known as the Bubble Act (1719) such companies were declared to be common nuisances and indictable as such. But the act, though it remained on the statute book for more than one hundred years and was not formally repealed till 1825, proved quite ineffectual to check the growth of joint stock enterprise, and the legislature, finding that such companies had to be tolerated, adopted the wiser course of regulating what it could not repress. One great inconvenience of these common law trading companies arose from their being unincorporated. They were formed of large fluctuating bodies of individuals, and a person dealing with them did not know with whom he was contracting or whom he was to sue. This evil the legislature sought to rectify by empowering the crown to grant to companies by letters patent without incorporation the privilege of suing and being sued by a public officer. Ten years afterwards--in 1844--a more important line of policy was adopted, and all companies with some exceptions were enabled to obtain a certificate of incorporation without applying for a charter or special act. The act of 1862 carried this policy one step farther by prohibiting all associations of more than twenty persons from carrying on business without registering under the act. These were all useful amendments, but they were amendments of form rather than substance. The real vitality of joint stock enterprise lies in the co-operative principle, and the natural growth and expansion of this fruitful principle was checked until the middle of the 19th century by the notorious risks attaching to unlimited liability. In the case of an ordinary partnership, though their liability is unlimited (or was until the Limited Partnerships Act 1907), the partners can generally tell what risks they are incurring. Not so the shareholders of a company. They delegate the management of their business to a board of directors, and they may easily find themselves committed by the fraud or folly of its members to engagements which in the days of unlimited liability meant ruin. Failures like those of Overend and Gurney, and of the Glasgow Bank, caused widespread misery and alarm. It was not until limited liability had been grafted on the stock of the co-operative system that the real potency of the principle of industrial co-operation became apparent. We owe the adoption of the limited liability principle to the clear-sightedness of Lord Sherbrooke--then Mr Robert Lowe--and to the vigorous advocacy of Lord Bramwell. We owe it to Lord Bramwell also that the principle was made a feasible one. The practical difficulty was how to bring home to persons dealing with the company notice that the liability of the shareholders was limited. Lord Bramwell solved the problem by a happy suggestion--"write it on my tombstone," he said humorously to a friend. This was that the company should add to its name the word "Limited "--paint it up on its premises, and use it on all invoices, bills, promissory notes and other documents. The proposal was adopted by the Legislature and has worked successfully. While limited companies have been multiplying at the rate of over 4000 a year, the unlimited company has become practically an extinct species. The growth of limited companies is, indeed, one of the most striking phenomena of our day. Their number may be estimated at quite 40,000. Their paid-up capital amounts to the stupendous sum of £1,850,000,000 and, what is even more significant, as the 1st Viscount Goschen remarks in his _Essays and Addresses_, is that "the number of shareholders has grown in a much greater ratio than the colossal growth of the aggregate capital. The profits and risks of nearly every kind of business have been spread from year to year over fresh thousands of individuals, and the middle class with moderate incomes are more and more participating in that accumulation of wealth from business of every description which formerly built up the fortunes of individual traders or of bankers or of single families."

It is with the limited company then--the company limited by shares--as the normal type and incomparably the most important, that this article mainly deals.

_Companies Limited by Shares._--The Companies Act 1862, was intended to constitute a comprehensive code of law applicable to joint stock trading companies for the whole of the United Kingdom. Recognizing the mischief above alluded to--of trading concerns being carried on by large and fluctuating bodies, the act begins by declaring that no company, association or partnership, consisting of more than twenty persons, or ten in the case of banking, shall be formed after the commencement of the act for the purpose of carrying on any business which has for its object the acquisition of gain by the company, association or partnership, or by the individual members thereof, unless it is registered as a company under the act, or is formed in pursuance of some other act of parliament or of letters patent, or is a company engaged in working mines within and subject to the jurisdiction of the Stannaries. Broadly speaking, the meaning of the act is that all commercial undertakings, as distinguished from literary or charitable associations, shall be registered. "Business" has a more extensive signification than "trade." Having thus cleared the ground the act goes on to provide in what manner a company may be formed under the act. The machinery is simple, and is described as follows:--

"Any seven or more persons associated for any lawful purpose may, by subscribing their names to a memorandum of association and otherwise complying with the requisitions of this act in respect of registration, form an incorporated company with or without limited liability" (§ 6). It is not necessary that the subscribers should be traders nor will the fact that six of the subscribers are mere dummies, clerks or nominees of the seventh affect the validity of the company; so the House of Lords decided in _Salomon_ v. _Salomon & Co._, 1897, A. C. 22.

Memorandum of Association.

The document to be subscribed--the Memorandum of Association--corresponds, in the case of companies formed under the Companies Act 1862, to the charter or deed of settlement in the case of other companies. The form of it is given in the schedule to the act, and varies slightly according as the company is limited by shares or guarantee, or is unlimited. (See the 3rd schedule to the Consolidation

## Act 1908, forms A, B, C, D.) It is required to state, in the case of a

company limited by shares, the five following matters:--

1. The name of the proposed company, with the addition of the word "limited" as the last word in such name.

2. The part of the United Kingdom, whether England, Scotland or Ireland, in which the registered office of the company is proposed to be situate.

3. The objects for which the proposed company is to be established.

4. A declaration that the liability of the members is limited.

5. The amount of capital with which the company proposes to be registered, divided into shares of a certain fixed amount.

No subscriber of the memorandum is to take less than one share, and each subscriber is to write opposite his name the number of shares he takes.

These five matters the legislature has deemed of such intrinsic importance that it has required them to be set out in the company's Memorandum of Association. They are the essential conditions of incorporation, and as such they must not only be stated, but the policy of the legislature has made them with certain exceptions unalterable.

The most important of these five conditions is the third, and its importance consists in this, that the objects defined in the memorandum circumscribe the sphere of the company's activities. This principle, which is one of public policy and convenience, and is known as the "_ultra vires_ doctrine," carries with it important consequences, because every act done or contract made by a company _ultra vires_, i.e. in excess of its powers, is absolutely null and void. The policy, too, is a sound one. Shareholders contribute their money on the faith that it is to be employed in prosecuting certain objects, and it would be a violation of good faith if the company, i.e. the majority of shareholders, were to be allowed to divert it to something quite different. So strict is the rule that not even the consent of every individual shareholder can give validity to an _ultra vires_ act.

Articles of Association.

The articles of association are the regulations for internal management of the company--the terms of the partnership agreed upon by the shareholders among themselves. A model or specimen set of articles known as Table A was given by the Companies Act 1862, and is appended in a revised form to the Companies (Consolidation) Act 1908. When a company is to be registered the memorandum of association accompanied by a copy of the articles is taken to the office of the registrar of joint stock companies at Somerset House, together with the following documents:--

1. A list of persons who have consented to be directors of the company (fee stamp 5s.).

2. A statutory declaration by a solicitor of the High Court engaged in the formation of the company, or by a person named in the articles of association as a director or secretary of the company, that the requisitions of the act in respect of registration and of matters precedent and incidental thereto have been complied with (fee stamp 5s.).

3. A statement as to the nominal share capital (stamped with an _ad valorem_ duty of 5s. per £100).

4. If no prospectus is to be issued, a company must now (Companies Act 1907, s. 1; Consolidation Act 1908, s. 82) in lieu thereof file with the registrar a statement, in the form prescribed by the 1st schedule to the act, of all the material facts relating to the company. Till this has been done the company cannot allot any shares or debentures.

If these documents are in order the registrar registers the company and issues a certificate of incorporation (see Companies (Consolidation) Act 1908, sect. 82); on registration, the memorandum and articles of association become public documents, and any person may inspect them on payment of a fee of one shilling. This has important consequences, because every person dealing with the company is presumed to be acquainted with its constitution, and to have read its memorandum and articles. The articles also, upon registration, bind the company and its members to the same extent as if each member had subscribed his name and affixed his seal to them.

The total cost of registering a company with a capital of £1000 is about £7; £10,000 about £34; £100,000 about £280.

Capital.

The capital which is required to be stated in the memorandum of association, and which represents the amount which the company is empowered to issue, is what is known as the nominal capital. This nominal capital must be distinguished from the subscribed capital. Subscribed capital is the aggregate amount agreed to be paid by those who have taken shares in the company. Under the Companies Act 1900, Companies Act 1908, s. 85, a "minimum subscription" may be fixed by the articles, and if it is the directors cannot go to allotment on less: if it is not, then the whole of the capital offered for subscription must be subscribed. A company may increase its capital, consolidate it, subdivide it into shares of smaller amount and convert paid-up shares into stock. It may also, with the sanction of the court, otherwise reorganize its capital (Companies Act 1907, s. 39; Companies (Consolidation) Act 1908, s. 45), and for this purpose modify its Memorandum of Association; but a limited company cannot reduce its capital either by direct or indirect means without the sanction of the court. The inviolability of the capital is a condition of incorporation--the price of the privilege of trading with limited liability, and by no subterfuge will a company be allowed to evade this cardinal rule of policy, either by paying dividends out of capital, or buying its own shares, or returning money to shareholders. But the prohibition against reduction means that the capital must not be reduced by the voluntary act of the company, not that a company's capital must be kept intact. It is embarked in the company's business, and it must run the risks of such business. If part of it is lost there is no obligation on the company to replace it and to cease paying dividends until such lost capital is repaid. The company may in such a case write off the lost capital and go on trading with the reduced amount. But for this purpose the sanction of the court must be obtained by petition.

Shares.

A share is an aliquot part of a company's nominal capital. The amount may be anything from 1s. to £1000. The tendency of late years has been to keep the denomination low, and so to appeal to a wider public. Shares of £100, or even £10, are now the exception. The most common amount is either £1 or £5. Shares are of various kinds--ordinary, preference, deferred, founders' and management. Into what classes of shares the original capital of the company shall be divided, what shall be the amount of each class, and their respective rights, privileges and priorities, are matters for the consideration of the promoters of the company, and must depend on its special circumstances and requirements.

A company may issue preference shares even if there is no mention of them in the Memorandum of Association, and any preference or special privilege so given to a class of shares cannot be interfered with on any reorganization of capital except by a resolution passed by a majority of shareholders of that class representing three-fourths of the capital of that class (Companies (Consolidation) Act 1908, s. 45). The preference given may be as to dividends only, or as to dividends and capital. The dividend, again, may be payable out of the year's profits only, or it may be cumulative, that is, a deficiency in one year is to be made good out of the profits of subsequent years. Prima facie, a preferential dividend is cumulative. For issuing preference shares the question for the directors is, what must be offered to attract investors. Preference shareholders are given by the Companies Act 1907, s. 23; Companies (Consolidation) Act 1908, s. 114, the right to inspect balance sheets. Founders' shares--which originated with private companies--are shares which usually take the whole or half the profits after payment of a dividend of 7 or 10% to the ordinary shareholders. They are much less in favour than they used to be.

Promoters and promotion.

The machinery of company formation is generally set in motion by a person known as a promoter. This is a term of business, not law. It means, to use Chief Justice Cockburn's words, a person "who undertakes to form a company with reference to a given project and to set it going, and who takes the necessary steps to accomplish that purpose." Whether what a person has done towards this end constitutes him a promoter or not, is a question of fact; but once an affirmative conclusion is reached, equity clothes such promoter with a fiduciary relation towards the company which he has been instrumental in creating. This doctrine is now well established, and its good sense is apparent when once the position of the promoter towards the company is understood. Promoters--to use Lord Cairns's language in _Erlanger_ v. _New Sombrero Phosphate Co._, 3 A. C. 1236--"have in their hands the creation and moulding of the company. They have the power of defining how and when and in what shape and under what supervision it shall start into existence and begin to act as a trading corporation." Such a control over the destinies of the company involves correlative obligations towards it, and one of these obligations is that the promoter must not take advantage of the company's helplessness. A promoter may sell his property to the company, but he must first see that the company is furnished with an independent board of directors to protect its interests and he must make full and fair disclosure of his interest in order that the company may determine whether it will or will not authorize its trustee or agent (for such the promoter in equity is) to make a profit out of the sale. It is not a sufficient disclosure in such a case for the promoter merely to refer in the prospectus to a contract which, if read by the shareholders, would inform them of his interest. They are under no obligation to inquire. It is for the promoter to bring home notice, not constructive but actual, to the shareholders.

When a company is promoted for acquiring property--to work a mine or patent, for instance, or carry on a going business--the usual course is for the promoter to frame a draft agreement for the sale of the property to the company or to a trustee on its behalf. The memorandum and articles of the intended company are then prepared, and an article is inserted authorizing or requiring the directors to adopt the draft agreement for sale. In pursuance of this authority the directors at the first meeting after incorporation take the draft agreement into consideration; and if they approve, adopt it. Where they do so in the exercise of an honest and independent judgment, no exception can be taken to the transaction; but where the directors happen to be nominees of the promoter, perhaps qualified by him and acting in his interest, the situation is obviously open to grave abuse. It is not too much, indeed, to say that the fastening of an onerous or improvident contract on a company at its start, by interested promoters acting in collusion with the directors, has been the principal cause of the scandals associated with company promotion.

Concurrently with the adoption of the contract for the acquisition of the property which is the company's _raison d'être_, the directors have to consider how they will best get the company's capital subscribed. Down to the passing of the Companies Act 1900 the usual mode of doing this was to issue a prospectus inviting the public to subscribe for shares. After the act of 1900 the prospectus fell into general disuse. In the year 1903, out of a total of 3596 companies which registered, only 358 issued a prospectus, the directors preferring, it would seem, to place the share capital through the medium of brokers, financial agents and other intermediaries rather than run the risk of incurring, personally, liability under the stringent provisions for disclosure contained in the act (s. 10). Of late the prospectus has, however, returned into favour. Under the act of 1907, incorporated in the Consolidation Act 1908 (s. 82), a company, if it does not issue a prospectus, must file a statement of all the material facts relating to the company.

Prospectus.

A prospectus is an invitation to the public to take shares on the faith of the statements therein contained, and is thus the basis of the agreement to take the shares; there therefore rests on those who are responsible for its issue an obligation to act with the most perfect good faith--_uberrima fides_--and this obligation has been repeatedly emphasized by judges of the highest eminence. (See the observations of Kindersley, V.C., in _New Brunswick Railway Co._ v. _Muggeridge_, 1860, 1 Dr. & Sm. 383, and of Lord Herschell in _Derry_ v. _Peek_, 1889, 14 A. C. 376.) Directors must be perfectly candid with the public; they must not only state what they do state with strict and scrupulous accuracy, but they must not omit any fact which, if disclosed, would falsify the statements made. This is the general obligation of directors when issuing a prospectus; but on this general obligation the legislature has engrafted special requirements. By the Companies Act 1867, it required the dates and names of the parties to any contract entered into by the company or its promoters or directors before the issue of the prospectus, to be disclosed in the prospectus; otherwise the prospectus was to be deemed fraudulent. This enactment was repealed by the Companies Act 1900, but only in favour of more stringent provisions incorporated in the Consolidation Act of 1908. Now, not only is every prospectus to be signed and filed with the registrar of Joint Stock Companies before it can be issued, but the prospectus must set forth a long and elaborate series of particulars about the company--the contents of the Memorandum of Association, with the names of the signatories, the share qualification (if any) of the directors, the minimum subscription on which the directors may proceed to allotment, the shares and debentures issued otherwise than for cash, the names and addresses of the vendors, the amount paid for underwriting the company, the amount of preliminary expenses, of promotion money (if any), and the interest (if any) of every director in the promotion or in property to be acquired by the company. Neglect of this statutory duty of disclosure will expose directors to personal liability. For false or fraudulent statements--as distinguished from non-disclosure--in a prospectus directors are liable in an action of deceit or under the Directors' Liability Act 1890, now incorporated in the act of 1908. This act was passed to meet the decision of the House of Lords in _Peek_ v. _Derry_ (12 A. C. 337), that a director could not be made liable in an action of deceit for an untrue statement in a prospectus, unless the plaintiff could prove that the director had made the untrue statement fraudulently. The Directors' Liability Act enacted in substance that when once a prospectus is proved to contain a material statement of fact which is untrue, the persons responsible for the prospectus are to be liable to pay compensation to any one who has subscribed on the faith of the prospectus, unless they can prove that they had reasonable ground to believe, and did in fact believe, the statement to be true. Actions under this act have been rare, but their rarity may be due to the act having had the effect of making directors more careful in their statements.

Allotment of shares.

Before the passing of the Companies Act 1900, it was a matter for directors' discretion on what subscription they should go to allotment. They often did so on a scandalously inadequate subscription. To remedy this abuse the Companies Act 1900 (Companies (Consolidation) Act 1908, s. 85) provided that no allotment of any share capital offered to the public for subscription is to be made unless the amount fixed by the memorandum and articles of association and named in the prospectus as "the minimum subscription" upon which the directors may proceed to allotment has been subscribed and the application moneys--which must not be less than 5% of the nominal amount of the share--paid to and received by the company. If no minimum is fixed the whole amount of the share capital offered for subscription must have been subscribed before the directors can go to allotment. The "minimum subscription" is to be reckoned exclusively of any amount payable otherwise than in cash. If these conditions are not complied with within forty days the application moneys must be returned. Any "waiver clause" or contract to waive compliance with the section is to be void.

An allotment of shares made in contravention of these provisions is irregular and voidable at the option of the applicant for shares within one month after the first or statutory meeting of the company (Companies (Consolidation) Act, s. 86). Even when a company has got what under the name of the "minimum subscription" the directors deem enough capital for its enterprise, it cannot now commence business or make any binding contract or exercise any borrowing powers until it has obtained a certificate entitling it to commence business (Companies (Consolidation)

## Act 1908, s. 87). To obtain this certificate the company must have

fulfilled certain statutory conditions, which are briefly these:--

(a) The company must have allotted shares to the amount of not less than the "minimum subscription."

(b) Every director must have paid up his shares in the same proportion as the other members of the company.

(c) A statutory declaration, made by the secretary of the company or one of the directors, must have been filed with the registrar of joint stock companies, that these conditions have been complied with.

These conditions fulfilled, the company gets its certificate and starts on its business career, carrying on its business through the agency of directors, as to whose powers and duties see DIRECTORS.

Meetings.

The Companies Act as consolidated in the act of 1908, and the regulations under them, treat the directors of a company as the persons in whom the management of the company's affairs is vested. But they also contemplate the ultimate controlling power as residing in the shareholders. A controlling power of this kind can only assert itself through general meetings; and that it may have proper opportunities of doing so, every company is required to hold a general meeting, commonly called the statutory meeting, within--as fixed by the Companies Act 1900--three months from the date at which it is entitled to commence business. This first statutory meeting acquired new significance under the Companies Act of 1900 and marks an important stage in the early history of a company. Seven days before it takes place the directors are required to send round to the members a certified report informing them of the general state of the company's affairs--the number of shares allotted, cash received for them, and names and addresses of the members, the amount of preliminary expenses, the particulars of any contract to be submitted to the meeting, &c. Furnished with this report the members come to the meeting in a position to discuss and exercise an intelligent judgment upon the state and prospects of the company. Besides the statutory meeting a company must hold one general meeting at least in every calendar year, and not more than fifteen months after the holding of the last preceding general meeting (Companies (Consolidation)

## Act 1908, s. 64). This annual general meeting is usually called the

ordinary general meeting. Other meetings are extraordinary general meetings. Notices convening a general meeting must inform the shareholders of the particular business to be transacted; otherwise any resolutions passed at the meeting will be invalidated. Voting is generally regulated by the articles. Sometimes a vote is given to a shareholder for every share held by him, but more often a scale is adopted; for instance, one vote is given for every share up to ten, with an additional vote for every five shares beyond the first ten shares up to one hundred, and an additional vote for every ten shares beyond the first hundred. In default of any regulations, every member has one vote only. Sometimes preference shareholders are given no vote at all. A poll may be demanded on any special resolution by three persons unless the articles require five (Companies (Consolidation) Act 1908, s. 69).

Agreement for shares.

A contract to take shares is like any other contract. It is constituted by offer, acceptance and communication of the acceptance to the offerer. The offer in the case of shares is usually in the form of an application in writing to the company, made in response to a prospectus, requesting the company to allot the applicant a certain number of shares in the undertaking on the terms of the prospectus, and agreeing to accept the shares, or any smaller number, which may be allotted to the applicant. An allottee is under the Companies (Consolidation) Act 1908, s. 86, entitled to rescind his contract where the allotment is irregular, e.g. where the minimum subscription has not been obtained. When an application is accepted the shares are allotted, and a letter of allotment is posted to the applicant. Allotment is the usual, but not the only, evidence of acceptance. As soon as the letter of allotment is posted the contract is complete, even though the letter never reaches the applicant. An application for shares can be withdrawn at any time before acceptance. As soon as the contract is complete, it is the duty of the company to enter the shareholder's name in the register of members, and to issue to him a certificate under the seal of the company, evidencing his title to the shares.

Register of members.

The register of members plays an important part in the scheme of the company system, under the Companies Act 1862. The principle of limited liability having been once adopted by the legislature, justice required not only that such limitation of liability should be brought home by every possible means to persons dealing with the company, but also that such persons should know as far as possible what was the limited capital which was the sole fund available to satisfy their claims--what amount had been called up, what remained uncalled, who were the persons to pay, and in what amounts. These data might materially assist a person dealing with the company in determining, whether he would give it credit or not; in any case they are matters which the public had a right to know. The legislature, recognizing this, has exacted as a condition of the privilege of trading with limited liability that the company shall keep a register with those particulars in it, which shall be accessible to the public at all reasonable times. In order that this register may be accurate, and correspond with the true liability of membership for the time being, the court is empowered under the Companies Act 1862, and the Companies (Consolidation) Act 1908, s. 32, to rectify it in a summary way, on application by motion, by ordering the name of a person to be entered on or removed therefrom. This power can be exercised by the court, whether the dispute as to membership is one between the company and an alleged member, or between one alleged member and another, but the machinery of the section is not meant to be used to try claims to rescind agreements to take shares. The proper proceeding in such cases is by action.

Payment for shares.

The same policy of guarding against an abuse of limited liability is evinced in the Companies Act 1862, which required that shares in the case of a limited company should be paid for in full. The legislature has allowed such companies to trade with limited liability, but the price of the privilege is that the limited capital to which alone the creditors can look shall at least be a reality. It is therefore _ultra vires_ for a limited company to issue its shares at a discount; but there was nothing in the Companies Act 1862 which required that the shares of a limited company, though they must be paid up in full, must be paid up in cash. They might be paid "in meal or in malt," and it accordingly became common for shares to be allotted in payment for furniture, plate, advertisements or services. The result was that the consideration was often illusory, shares being issued to be paid for in some commodity which had no certain criterion of value. To remedy this evil the legislature enacted in the Companies Act 1867, s. 25, that every share in any company should be held subject to the payment of the whole amount thereof in cash, unless otherwise determined by a contract in writing filed with the registrar of joint stock companies at or before the issue of the shares. This section not infrequently caused hardship where shares had been honestly paid for in the equivalent of cash, but owing to inadvertence no contract had been filed; and it was repealed by the Companies Act 1900, and the old law restored. In reverting to the earlier law, and allowing shares to be paid for in any adequate consideration, the legislature has, however, exacted a safeguard. It has required the company to file with the registrar of joint stock companies a return stating, in the case of shares allotted in whole or in part for a consideration other than cash, the number of the shares so allotted, and the nature of the consideration--property, services, &c.--for which they have been allotted.

Though every share carries with it the liability to pay up the full amount in cash or its equivalent, the liability is only to pay when and if the directors call for it to be paid up. A call must fix the time and place for payment, otherwise it is bad.

Rescission of agreement.

When a person takes shares from a company on the faith of a prospectus containing any false or fraudulent representations of fact material to the contract, he is entitled to rescind the contract. The company cannot keep a contract obtained by the misrepresentation or fraud of its agents. This is an elementary principle of law. The misrepresentation, for purposes of rescission, need not be fraudulent; it is sufficient that it is false in fact: fraud or recklessness of assertion will give the shareholder a further remedy by action of deceit, or under the Directors' Liability Act 1890 (see _supra_); but, to entitle a shareholder to rescind, he must show that he took the shares on the faith or partly on the faith of the false representation: if not, it was innocuous. A shareholder claiming to rescind must do so promptly. It is too late to commence proceedings after a winding-up has begun.

Transfer of shares.

The shares or other interest of any member in a company are personal estate and may be transferred in the manner provided by the regulations of the company. As Lord Blackburn said, one of the chief objects when joint stock companies were established was that the shares should be capable of being easily transferred; but though every shareholder has a prima facie right to transfer his shares, this right is subject to the regulations of the company, and the company may and usually does by its regulations require that a transfer shall receive the approval of the board of directors before being registered,--the object being to secure the company against having an insolvent or undesirable shareholder (the nominee perhaps of a rival company) substituted for a solvent and acceptable one. This power of the directors to refuse a transfer must not, however, be exercised arbitrarily or capriciously. If it were, it would amount to a confiscation of the shares. Directors, for instance, cannot veto a transfer because they disapprove of the purpose for which it is being made (e.g. to multiply votes), if there is no objection to the transferee.

Blank transfers.

It is a common and convenient practice to deposit share or stock certificates with bankers and others to secure an advance. When this is done the share or stock certificate is usually accompanied by a blank transfer--that is, a transfer executed by the shareholder borrower, but with a blank left for the name of the transferee. The handing over by the borrower of such blank transfer signed by him is an implied authority to the banker, or other pledgee, if the loan is not paid, to fill in the blank with his name and get himself registered as the owner.

Dividends.

A company can only pay dividends out of profits--which have been defined as the "earnings of a concern after deducting the expenses of earning them." To pay dividends out of capital is not only _ultra vires_ but illegal, as constituting a return of capital to shareholders. Before paying dividends, directors must take reasonable care to secure the preparation of proper balance-sheets and estimates, and must exercise their judgment as business men on the balance-sheets and estimates submitted to them. If they fail to do this, and pay dividends out of capital, they will not be held excused, unless the court should think that they ought to be under the new discretion given to the court by ss. 32-34 of the Companies Act 1907 (Companies (Consolidation) Act 1908, s. 279). The onus is on them to show that the dividends have been paid out of profits. The court as a rule does not interfere with the discretion of directors in the matter of paying dividends, unless they are doing something _ultra vires_.

Auditors.

By the Companies (Consolidation) Act 1908, ss. 112, 113, incorporating provisions of the act of 1900 (ss. 21-23), as amended by the act of 1907 (s. 19), the legislature has made strict provisions for the appointment and remuneration of auditors by a company, and has defined their rights and duties. Prior to the act of 1900 audit clauses, except in the case of banking companies, were left to the articles of association and were not matter of statutory obligation.

Private companies.

The "private company" may best be described as an incorporated partnership. The term is statutorily defined--for the first time--by s. 37 of the Companies Act 1907 (s. 121 of the Consolidating Act of 1908). Individual traders and trading firms have in recent years become much more alive to the advantages offered by incorporation. They have discovered that incorporation gives them the protection of limited liability; that it prevents dislocation of a business by the death, bankruptcy or lunacy of any of its members; that it enables a trader to distribute among the members of his family interests in his business on his decease through the medium of shares; that it facilitates borrowing on debentures or debenture stock, and with a view to secure these advantages thousands of traders have converted their businesses into limited companies. To so large an extent has this been done that private companies now form one-third of the whole number of companies registered.

A private company does not appeal to the public to subscribe its capital, but in the main features of its constitution a private company differs little from a public one. It is only in one or two particulars that special provisions are requisite. It is generally desired for instance: (1) to keep all the shares among the members--the partners or the family--and not to let them get into the hands of the public; and (2) to give the principal shareholders, the original partners, a paramount control over the management. For this purpose it is usual to provide specially in the articles that no share shall be transferred to a stranger so long as any member is willing to purchase it at a fair value; that a member desirous of transferring his shares shall give notice to the company; that the company shall offer the shares to the other members; that if within a certain period the company finds a purchaser the shares shall be transferred to him, and that in case of dispute the value shall be settled by arbitration or shall be such a sum as the auditor certifies to be in his opinion the fair value. So in regard to the management it is common to provide that the owner or owners of the business shall be entitled to hold office as directors for a term of years or for life, provided he or they continue to hold a certain number of shares; or an owner is empowered to authorize his executors or trustees whilst holding a certain number of shares to appoint directors. Directors holding office on these special terms are described as "governing" or "permanent" or "life" directors. This union of interest and management in the same persons gives a private company an unquestionable advantage over a public company.

The so-called "one-man company" is merely a variety of the private company. The fact that a company is formed by one man, with the aid of six dummy subscribers, is not in itself (as was at one time supposed) a fraud on the policy of the Companies Act, but it is occasionally used for the purpose of committing a fraud, as where an insolvent trader turns himself into a limited company in order to evade bankruptcy; and it is to an abuse of this kind that the term "one-man company" owes its opprobrious signification.

_Companies Limited by Guarantee._--The second class of limited companies are those limited by guarantee, as distinguished from those limited by shares. In the company limited by guarantee each member agrees, in the event of a winding-up, to contribute a certain amount to the assets,--£5, £1 or 10s.--whatever may be the amount of the guarantee. The peculiarity of this form of company is that the interests of the members of a guarantee company are not expressed in any terms of nominal money value like the shares of other companies, a form of constitution designed, as stated by Lord Thring, the draftsman of the Companies Act 1862, to give a superior elasticity to the company. The property of the company simply belongs to the company in certain fractional amounts. This makes it convenient for clubs, syndicates and other associations which do not require the interest of members to be expressed in terms of cash.

_Companies not for Gain._--Associations formed to promote commerce, art, science, religion, charity or any other useful object may, with the sanction of the Board of Trade, register under the Companies Act 1862, with limited liability, but without the addition of the word "Limited," upon proving to the board that it is the intention of the association to apply the profits or income of the association in promoting its objects, and not in payment of dividends to members (C.A. 1867, s. 23). This licence was made revocable by s. 42 of the Companies Act 1907 (Consolidation Act of 1908, ss. 19, 20). In lieu of the word "Company," the association may adopt as part of its name some such title as chamber, club, college, guild, institute or society. The power given by this section has proved very useful, and many kinds of associations have availed themselves of it, such as medical institutes, law societies, nursing homes, chambers of commerce, clubs, high schools, archaeological, horticultural and philosophical societies. The guarantee form (see _supra_) is well adapted for associations of this kind intended as they usually are to be supported by annual subscriptions. No such association can hold more than two acres of land without the licence of the Board of Trade.

_Cost-Book Mining Companies._--These are in substance mining partnerships. They derive their name from the fact of the partnership agreement, the expenses and receipts of the mine, the names of the shareholders, and any transfers of shares being entered in a "cost-book." The affairs of the company are managed by an agent known as a "purser," who from time to time makes calls on the members for the expenses of working. A cost-book company is not bound to register under the Companies Act 1862, but it may do so.

Winding-up.

Voluntary.

A company once incorporated under the Companies Act 1862 cannot be put an end to except through the machinery of a winding-up, though the name of a company which is commercially defunct may be struck off the register of joint stock companies by the registrar (s. 242 of the Companies (Consolidation) Act 1908, incorporating s. 7 of the act of 1880, as amended by s. 26 of the act of 1900). Winding-up is of two kinds: (1) voluntary winding-up, either purely voluntary or carried on under the supervision of the court; and (2) winding-up by the court. Of these voluntary winding-up is by far the more common. Of the companies that come to an end 90% are so wound up; and this is in accordance with the policy of the legislature, evinced throughout the Companies Acts, that shareholders should manage their own affairs--winding-up being one of such affairs. A voluntary winding-up is carried out by the shareholders passing a special resolution requiring the company to be wound up voluntarily, or an extraordinary resolution (now defined by s. 182 of the Companies (Consolidation) Act 1908) to the effect that it has been proved to the shareholders' satisfaction that the company cannot, by reason of its liabilities, continue its business, and that it is advisable to wind it up (C.A. 1862, s. 129). The resolution is generally accompanied by the appointment of a liquidator. In a purely voluntary winding-up there is a power given by s. 138 for the company or any contributory to apply to the court in any matter arising in the winding-up, but seemingly by an oversight of the legislature the same right was not given to creditors. This was rectified by the Companies

## Act 1900, s. 25. Section 27 of the Companies Act 1907 (s. 188 of the

Consolidation Act 1908) further provides for the liquidator under a voluntary winding-up summoning a meeting of creditors to determine on the choice of a liquidator. A creditor may also in a proper case obtain an order for continuing the voluntary winding-up under the supervision of the court. Such an order has the advantage of operating as a stay of any actions or executions pending against the company. Except in these respects, the winding-up remains a voluntary one. The court does not

## actively intervene unless set in motion; but it requires the liquidator

to bring his accounts into chambers every quarter, so that it may be informed how the liquidation is proceeding. When the affairs of the company are fully wound up, the liquidator calls a meeting, lays his accounts before the shareholders, and the company is dissolved by operation of law three months after the date of the meeting (C.A. 1862, ss. 142, 143).

By the court.

Irrespective of voluntary winding-up, the legislature has defined certain events in which a company formed under the Companies Act 1862 may be wound up by the court. These events are: (1) when the company has passed a resolution requiring the company to be wound up by the court; (2) when the company does not commence its business within a year or suspends it for a year; (3) when the members are reduced to less than seven; (4) when the company is unable to pay its debts, and (5) whenever the court is of opinion that it is just and equitable that the company should be wound up (C.A. 1862, s. 79; s. 129 of the Consolidation Act 1908). A petition for the purpose may be presented either by a creditor, a contributory or the company itself. Where the petition is presented by a creditor who cannot obtain payment of his debt, a winding-up order is _ex debito justitiae_ as against the company or shareholders, but not as against the wishes of a majority of creditors. A winding-up order is not to be refused because the company's assets are over mortgaged (Companies

## Act 1907, s. 29; s. 141 of Consolidation Act 1908).

The procedure on the making of a winding-up order is now governed by ss. 7, 8, 9 of the Winding-up Act 1890. The official receiver, as liquidator pro tem., requires a statement of the affairs of the company verified by the directors, and on it reports to the court as to the causes of the company's failure and whether further inquiry is desirable. If he further reports that in his opinion fraud has been committed in the promotion or formation of the company by a particular person, the court may order such person to be publicly examined.

A liquidator's duty is to protect, collect, realize and distribute the company's assets in due course of administration; and for this purpose he advertises for creditors, makes calls on contributories, sues debtors, takes misfeasance proceedings, if necessary, against directors or promoters, and carries on the company's business--supposing the goodwill to be an asset of value--with a view to selling it as a going concern. He may be assisted, like a trustee in bankruptcy, by a committee of inspection, composed of creditors and contributories.

When the affairs of the company have been completely wound up the court is, by s. 111 of the Companies Act 1862 (s. 127 of the act of 1908), to make an order that the company be dissolved from the date of such order, and the company is dissolved accordingly. A company which has been dissolved may, where necessary, on petition to the court be reinstated on the register (Companies Act 1880, s. 1).

Reconstruction.

A large number of companies now wind up only to reconstruct. The reasons for a reconstruction are generally either to raise fresh capital, or to get rid of onerous preference shares, or to enlarge the scope of the company's objects, which is otherwise impracticable owing to the unalterability of the Memorandum of Association. Reconstructions are carried out in one of three ways: (1) by sale and transfer of the company's undertaking and assets to a new company, under a power to sell contained in the company's memorandum of association, or (2) by sale and transfer under s. 161 of the Companies Act 1862; or (3) by a scheme of arrangement, sanctioned by the court, under the Joint Stock Companies Arrangements Act 1870, as amended by the Companies Act 1907, s. 38 (C.A. 1908, s. 192).

The first of these modes is now the most in favour.

Wrongs by a company.

A company, though a mere legal abstraction, without mind or will, may, it is now well settled, be liable in damages for malicious prosecution, for nuisance, for fraud, for negligence, for trespass. The sense of the thing is that the "company" is a _nomen collectivum_ for the members. It is they who have put the directors there to carry on their business and they must be answerable, collectively, for what is done negligently, fraudulently or maliciously by their agents.

_2. Public Companies._

Besides trading companies there is another large class, exceeding in their number even trading companies, which for shortness may be called public companies, that is to say, companies constituted by special act of parliament for the purpose of constructing and carrying on undertakings of public utility, such as railways, canals, harbours, docks, waterworks, gasworks, bridges, ferries, tramways, drainage, fisheries or hospitals. The objects of such companies nearly always involve an interference with the rights of private persons, often necessitate the commission of a public nuisance, and require therefore the sanction of the legislature. For this purpose a special act has to be obtained. A private bill to authorize the undertaking is introduced before one or other of the Houses of Parliament, considered in committee, and either passed or rejected like a public bill. These parliamentary (private bill) committees are tribunals acknowledging certain rules of policy, taking evidence from witnesses and hearing arguments from professional advocates. In many of these special acts, dealing as they do with a similar subject matter, similar provisions are required, and to avoid repetition and secure uniformity the legislature has passed certain general acts--codes of law for particular subject matters frequently recurring--which can be incorporated by reference in any special act with the necessary modifications. Thus the Companies Clauses Acts 1845, 1863 and 1869 supply the general powers and provisions which are commonly inserted in the constitution of such public company, regulating the distribution of capital, the transfer of shares, payment of calls, borrowing and general meetings. The Lands Clauses Consolidation Act 1845 supplies the machinery for the compulsory taking of land incident to most undertakings of a public character. The Railway Clauses Consolidation Act, the Waterworks Clauses Acts 1847 and 1863, the Gasworks Clauses Act 1847, and the Electric Lighting (Clauses)

## Act 1899 are other codes of law designed for incorporation in special

acts creating companies for the construction of railways or the supply of water, gas or electric light. A distinguishing feature of these companies is that, being sanctioned by the legislature for undertakings of public utility, the policy of the law will not allow them to be broken up or destroyed by creditors. It gives creditors only a charge--by a receiver--on the earnings of the undertaking--the "fruit of the tree."

_3. British Companies Abroad._

The status of British companies trading abroad, so far as Germany, France, Belgium, Greece, Italy and Spain are concerned, is expressly recognized in a series of conventions entered into between those countries and Great Britain. The value of the convention with France has been much impaired by the interpretation put upon the words of it by the court of cassation in _La Construction Lim_. According to this case the nationality of a company depends not on its place of origin but on where it has its centre of affairs, its principal establishment. The result is that a company registered in Britain under the Companies Acts may be transmuted by a French court into a French company in direct violation of the convention. The convention with Germany, which is in similar terms to that with France, has also been narrowed by judicial construction. The "power of exercising all their rights" given by the convention to British companies has been construed to mean that a British company will be recognized as a corporate body in Germany, but it does not follow from the terms of the convention that any British company may as a matter of course establish a branch and carry on business within the German empire. It must still get permission to trade, permission to hold land. It must register itself in the communal register. It must pay stamp duties.

Foreign companies may found an affiliated company or have a branch establishment in Italy, provided they publish their memorandum and articles and the names of their directors. Where no convention exists the status of an immigrant corporation depends upon international comity, which allows foreign corporations, as it does foreign persons, to sue, to make contracts and hold real estate, in the same way as domestic corporations or citizens; provided the stranger corporation does not offend against the policy of the state in which it seeks to trade.

There is, however, a growing practice now for states to impose by express legislation conditions on foreign corporations coming to do business within their territory. These conditions are mainly directed to securing that the immigrant corporation shall make known its constitution and shall be amenable to the jurisdiction of the courts of the country where it trades. Thus, by the law of Western Australia--to take a typical instance,--a foreign company is not to commence or carry on business until it empowers some person to act as its attorney to sue and be sued and has an office or place of business within the state, to be approved of by the registrar, where all legal proceedings may be served. New Zealand, Manitoba and many other states have adopted similar precautions; and by the Companies Act 1907, s. 35; C.A. 1908, s. 274 foreign companies having a place of business within the United Kingdom are required to file with the registrar of joint stock companies a copy of the company's charter or memorandum and articles, a list of directors, and the names and addresses of one or more persons authorized to accept service of process. Special conditions of a more stringent nature are often imposed in the case of particular classes of companies of a quasi-public character, such as banking companies, building societies or insurance companies. Regulations of this kind are perfectly legitimate and necessary. They are in truth only an application of the law of vagrancy to corporations, and have their analogy in the restrictions now generally imposed by states on the immigration of aliens.

_4. Company Law outside the United Kingdom._

_Australia._--Company law in Australia and in New Zealand follows very closely the lines of company legislation in the United Kingdom.

In New South Wales the law is consolidated by Act No. 40 of 1899, amended 1900 and 1906. In Victoria the law is contained in the Acts Nos. 1074 of 1890 and 355 of 1896; in Queensland in a series of Acts--No. 4 of 1863, No. 18 of 1899, No. 10 of 1891, No. 24 of 1892, No. 3 of 1893, No. 19 of 1894 and No. 21 of 1896; in South Australia in No. 56 of 1892, amended by No. 576 of 1893; in Tasmania by Nos. 22 of 1869, 19 of 1895 and 3 of 1896; in Western Australia by No. 8 of 1893, amended 1897 and 1898.

In New Zealand the law was consolidated in 1903.

_Canada._--The act governing joint stock companies in Canada is the Companies Act 1902, amended 1904. It empowers the secretary of state by letters patent to grant a charter to any number of persons not less than five for any objects other than railway or telegraph lines, banking or insurance.

Applicants must file an application--analogous to the British memorandum of association--showing certain particulars--the purposes of incorporation, the place of business, the amount of the capital stock, the number of shares and the amount of each, the names and addresses of the applicants, the amount of stock taken by each and the amount and mode of payment. Other provisions may also be embodied. A company cannot commence business until 10% of its authorized capital has been subscribed and paid for. The word "limited" as part of the company's name is--as in the case of British companies--to be conspicuously exhibited and used in all documents. The directors are not to be less than three or more than fifteen, and must be holders of stock. Directors are jointly and severally liable to the clerks, labourers and servants of the company for six months' wages. Borrowing powers may be taken by a vote of holders of two-thirds in value of the subscribed stock of the company.

_South Africa._--In Cape Colony the law is contained in No. 25 of 1892, amended 1895 and 1906; it follows English law.

In Natal the law is contained in Nos. 10 of 1864, 18 of 1865, 19 of 1893 and 3 of 1896.

In the Orange Free State in Law Ch. 100 and Nos. 2 and 4 of 1892.

For the Transvaal see Nos. 5 of 1874, 6 of 1874, 1 of 1894 and 30 of 1904.

In Rhodesia companies are regulated by the Companies Ordinance 1895--a combination of the Cape Companies Act 1892, and the British Companies Acts 1862-1890.

_France._--There are two kinds of limited liability companies in France--the _société en commandite_ and the _société anonyme_. The _société en commandite_ corresponds in some respects to the British private company or limited partnership, but with this difference, that in the _société en commandite_ the managing partner is under unlimited liability of creditors; the sleeping partner's liability is limited to the amount of his capital. The French equivalent of the English ordinary joint stock company is the _société anonyme_. The minimum number of subscribers necessary to form such a company is (as in the case of a British trading company) seven, but, unlike a British company, the _société anonyme_ is not legally constituted unless the whole capital is subscribed and one-fourth of each share paid up. Another precaution unknown to British practice is that assets, not in money, brought into a company are subject to verification of value by a general meeting. The minimum nominal value of shares, where the company's capital is less than 200,000 fcs., is 25 fcs.; where the capital is more than 200,000 fcs., 100 fcs. The _société_ is governed by articles which appoint the directors, and there is one general meeting held every year. A _société anonyme_ may, since 1902, issue preference shares. The doctrine that a corporation never dies has no place in French law. A _société anonyme_ may come to an end.

_Germany._--In Germany the class of companies most nearly corresponding to English companies limited by shares are "share companies" (_Aktiengesellschaften_) and "commandite companies" with a share capital (_Kommanditgesellschaften auf Aktien_). Since 1892 a new form of association has come into existence known by the name of partnership with limited liability (_Gesellschaften mit beschrankter Haftung_), which has largely superseded the commandite company.

[Sidenote: The "share company."]

In forming this paid-up company certain preliminary steps have to be taken before registration:--

1. The articles must be agreed on;

2. A managing board and a board of supervision must be appointed;

3. The whole of the share capital must be allotted and 25%, at least, must be paid up in coin or legal tender notes;

4. Reports on the formation of the company must be made by certain persons; and

5. Certain documents must be filed in the registry.

In all cases where shares are issued for any consideration, not being payment in full in cash, or in which contracts for the purchase of property have been entered into, the promoters must sign a declaration in which they must state on what grounds the prices agreed to be given for such property appear to be justified. In the great majority of cases shares are issued in certificates to bearer. The amount of such a share--to bearer--must as a general rule be not less than £50, but registered shares of £10 may be issued. Balance sheets have to be published periodically.

Limited partnerships.

Partnerships with limited liability may be formed by two or more members. The articles of partnership must be signed by all the members, and must contain particulars as to the amount of the capital and of the individual shares. If the liability on any shares is not to be satisfied in cash this also must be stated. The capital of a limited partnership must amount to £1000. Shares must be registered. Insolvent companies in Germany are subject to the bankruptcy law in the same manner as natural persons.

For further information see a memorandum on German companies printed in the appendix to the _Report of Lord Davey's Committee on the Amendment of Company Law_, pp. 13-26.

_Italy._--Commercial companies in Italy are of three kinds:--(1) General partnerships, in which the members are liable for all debts incurred; (2) companies in _accomodita_, in which some members are liable to an unlimited extent and others within certain limits; (3) joint stock companies, in which the liability is limited to the capital of the company and no member is liable beyond the amount of his holding. None of these companies needs authority from the government for its constitution; all that is needed is a written agreement brought before the public in the ways indicated in the code (Art. 90 et seq.). In joint stock companies the trustees (directors) must give security. They are appointed by a general meeting for a period not exceeding four years (Art. 124). The company is not constituted until the whole of its capital is subscribed, and until three-tenths of the capital at least has been actually paid up. When a company's capital is diminished by one-third, the trustees must call the members together and consult as to what is to be done.

An ordinary meeting is held once at least every year. Shares may not be made payable "to bearer" until fully paid up (Art. 166). A company may issue debentures if this is agreed to by a certain majority (Art. 172). One-twentieth, at least, of the dividends of the company must be added to the reserve fund, until this has become equal to one-fifth of the company's capital (Art. 182). Three or five assessors--members or non-members--keep watch over the way in which the company is carried on.

_United States._--In the United States the right to create corporations is a sovereign right, and as such is exercisable by the several states of the Union. The law of private corporations must therefore be sought in some fifty collections or groups of statutory and case-made rules. These collections or groups of rules differ in many cases essentially from each other. The acts regulating business corporations generally provide that the persons proposing to form a corporation shall sign and acknowledge an instrument called the articles of association, setting forth the name of the corporation, the object for which it is to be formed, the principal place of business, the amount of its capital stock, and the number of shares into which it is to be divided, and the duration of its corporate existence. These articles are filed in the office of the secretary of state or in designated courts of record, and a certificate is then issued reciting that the provisions of the act have been complied with, and thereupon the incorporators are vested with corporate existence and the general powers incident thereto. This certificate is the charter of the corporation. The power to make bylaws is usually vested in the stockholders, but it may be conferred by the certificate on the directors. Stockholders remain liable until their subscriptions are fully paid. Nothing but money is considered payment of capital stock except where property is purchased. Directors must usually be stockholders.

The right of a state to forfeit a corporation's charter for misuser or non-user of its franchises is an implied term of the grant of incorporation. Corporations are liable for every wrong they commit, and in such cases cannot set up by way of protection the doctrine of _ultra vires_.

See for authorities _Commentaries on the Law of Private Corporations_, by Seymour D. Thompson, LL.D., 6 vols.; Beach on _Corporations_, and the _American Encyclopaedia of Law_. (E. MA.)

COMPARATIVE ANATOMY, a term employed to designate the study of the structure of man as compared with that of lower animals, and sometimes the study of lower animals in contra-distinction to human anatomy; the term is now falling into desuetude, and lingers practically only in the titles of books or in the designation of university chairs. The change in terminology is chiefly the result of modern conceptions of zoology. From the point of view of structure, man is one of the animals; all investigations into anatomical structure must be comparative, and in this work the subject is so treated throughout. See ANATOMY and ZOOLOGY.

COMPARETTI, DOMENICO (1835- ), Italian scholar, was born at Rome on the 27th of June 1835. He studied at the university of Rome, took his degree in 1855 in natural science and mathematics, and entered his uncle's pharmacy as assistant. His scanty leisure was, however, given to study. He learned Greek by himself, and gained facility in the modern language by conversing with the Greek students at the university. In spite of all disadvantages, he not only mastered the language, but became one of the chief classical scholars of Italy. In 1857 he published, in the _Rheinisches Museum_, a translation of some recently discovered fragments of Hypereides, with a dissertation on that orator. This was followed by a notice of the annalist Granius Licinianus, and one on the oration of Hypereides on the Lamian War. In 1859 he was appointed professor of Greek at Pisa on the recommendation of the duke of Sermoneta. A few years later he was called to a similar post at Florence, remaining emeritus professor at Pisa also. He subsequently took up his residence in Rome as lecturer on Greek antiquities and greatly interested himself in the Forum excavations. He was a member of the governing bodies of the academies of Milan, Venice, Naples and Turin. The list of his writings is long and varied. Of his works in classical literature, the best known are an edition of the _Euxenippus_ of Hypereides, and monographs on Pindar and Sappho. He also edited the great inscription which contains a collection of the municipal laws of Gortyn in Crete, discovered on the site of the ancient city. In the _Kalewala and the Traditional Poetry of the Finns_ (English translation by I. M. Anderton, 1898) he discusses the national epic of Finland and its heroic songs, with a view to solving the problem whether an epic could be composed by the interweaving of such national songs. He comes to a negative conclusion, and applies this reasoning to the Homeric problem. He treats this question again in a treatise on the so-called Peisistratean edition of Homer (_La Commissione omerica di Pisistrato_, 1881). His _Researches concerning the Book of Sindib[=a]d_ have been translated in the _Proceedings_ of the Folk-Lore Society. His _Vergil in the Middle Ages_ (translated into English by E. F. Benecke, 1895) traces the strange vicissitudes by which the great Augustan poet became successively grammatical fetich, Christian prophet and wizard. Together with Professor Alessandro d'Ancona, Comparetti edited a collection of Italian national songs and stories (9 vols., Turin, 1870-1891), many of which had been collected and written down by himself for the first time.

COMPASS (Fr. _compas_, ultimately from Lat. _cum_, with, and _passus_, step), a term of which the evolution of the various meanings is obscure; the general sense is "measure" or "measurement," and the word is used thus in various derived meanings--area, boundary, circuit. It is also more particularly applied to a mathematical instrument ("pair of compasses") for measuring or for describing a circle, and to the mariner's compass.

[Illustration: FIG. 1.--Compass Card.]

The mariner's compass, with which this article is concerned, is an instrument by means of which the directive force of that great magnet, the Earth, upon a freely-suspended needle, is utilized for a purpose essential to navigation. The needle is so mounted that it only moves freely in the horizontal plane, and therefore the horizontal component of the earth's force alone directs it. The direction assumed by the needle is not generally towards the geographical north, but diverges towards the east or west of it, making a horizontal angle with the true meridian, called the magnetic variation or declination; amongst mariners this angle is known as the variation of the compass. In the usual navigable waters of the world the variation alters from 30° to the east to 45° to the west of the geographical meridian, being westerly in the Atlantic and Indian oceans, easterly in the Pacific. The vertical plane passing through the longitudinal axis of such a needle is known as the magnetic meridian. Following the first chart of lines of equal variation compiled by Edmund Halley in 1700, charts of similar type have been published from time to time embodying recent observations and corrected for the secular change, thus providing seamen with values of the variation accurate to about 30' of arc. Possessing these data, it is easy to ascertain by observation the effects of the iron in a ship in disturbing the compass, and it will be found for the most part in every vessel that the needle is deflected from the magnetic meridian by a horizontal angle called the deviation of the compass; in some directions of the ship's head adding to the known variation of the place, in other directions subtracting from it. Local magnetic disturbance of the needle due to magnetic rocks is observed on land in all parts of the world, and in certain places extends to the land under the sea, affecting the compasses on board the ships passing over it. The general direction of these disturbances in the northern hemisphere is an attraction of the north-seeking end of the needle; in the southern hemisphere, its repulsion. The approaches to Cossack, North Australia; Cape St Francis, Labrador; the coasts of Madagascar and Iceland, are remarkable for such disturbance of the compass.

[Illustration: FIG. 2.--Admiralty Compass (Frame and Needles).]

[Illustration: FIG. 3.--Thomson's (Lord Kelvin's) Compass (Frame and Needles).]

[Illustration: FIG. 4.--Section of Thomson's Compass Bowl. C, aluminium cap with sapphire centre; N, N', needles; P, pivot stem with pivot.]

The compass as we know it is the result of the necessities of navigation, which have increased from century to century. It consists of five principal parts--the card, the needles, the bowl, a jewelled cap and the pivot. The card or "fly," formerly made of cardboard, now consists of a disk either of mica covered with paper or of paper alone, but in all cases the card is divided into points and degrees as shown in fig. 1. The outer margin is divided into degrees with 0° at north and south, and 90° at east and west; the 32 points with half and quarter points are seen immediately within the degrees. The north point is marked with _fleur de lis_, and the principal points, N.E., E., S.E., &c., with their respective names, whilst the intermediate points in the figure have also their names engraved for present information. The arc contained between any two points is 11° 15'. The mica card is generally mounted on a brass framework, F F, with a brass cap, C, fitted with a sapphire centre and carrying four magnetized needles, N, N, N, N, as in fig. 2. The more modern form of card consists of a broad ring of paper marked with degrees and points, as in fig. 1, attached to a frame like that in fig. 3, where an outer aluminium ring, A A, is connected by 32 radial silk threads to a central disk of aluminium, in the centre of which is a round hole designed to receive an aluminium cap with a highly polished sapphire centre worked to the form of an open cone. To direct the card eight short light needles, N N, are suspended by silk threads from the outer ring. The magnetic axis of any system of needles must exactly coincide with the axis passing through the north and south points of the card. Single needles are never used, two being the least number, and these so arranged that the moment of inertia about every diameter of the card shall be the same. The combination of card, needles and cap is generally termed "the card"; on the continent of Europe it is called the "rose." The section of a compass bowl in fig. 4 shows the mounting of a Thomson card on its pivot, which in common with the pivots of most other compasses is made of brass, tipped with osmium-iridium, which although very hard can be sharply pointed and does not corrode. Fig. 4 shows the general arrangement of mounting all compass cards in the bowl. In fig. 5 another form of compass called a liquid or spirit compass is shown partly in section. The card nearly floats in a bowl filled with distilled water, to which 35% of alcohol is added to prevent freezing; the bowl is hermetically sealed with pure india-rubber, and a corrugated expansion chamber is attached to the bottom to allow for the expansion and contraction of the liquid. The card is a mica disk, either painted as in fig. 1, or covered with linen upon which the degrees and points are printed, the needles being enclosed in brass.

[Illustration: FIG. 5.--Liquid Compass.

A, Bowl, partly in section. N, Hole for filling, with screw plug. B, Expansion chamber. O, O, Magnetic needles. D, The glass. P, Buoyant chamber. G, Gimbal ring. Q, Iridium pivot. L, Nut to expand chamber when R, Sapphire cap. filling bowl. S, Mica card.] M, Screw connector.

Great steadiness of card under severe shocks and vibrations, combined with a minimum of friction in the cap and pivot, is obtained with this compass. All compasses are fitted with a gimbal ring to keep the bowl and card level under every circumstance of a ship's motion in a seaway, the ring being connected with the binnacle or pedestal by means of journals or knife edges. On the inside of every compass bowl a vertical black line is drawn, called the "lubber's point," and it is imperative that when the compass is placed in the binnacle the line joining the pivot and the lubber's point be parallel to the keel of the vessel. Thus, when a degree on the card is observed opposite the lubber's point, the angle between the direction in which the ship is steering and the north point of the compass or course is at once seen; and if the magnetic variation and the disturbing effects of the ship's iron are known, the desired angle between the ship's course and the geographical meridian can be computed. In every ship a position is selected for the navigating or standard compass as free from neighbouring iron as possible, and by this compass all courses are shaped and bearings taken. It is also provided with an azimuth circle or mirror and a shadow pin or style placed in the centre of the glass cover, by either of which the variable angle between the compass north and true north, called the "total error," or variation and deviation combined, can be observed. The binnacles or pedestals for compasses are generally constructed of wood about 45 in. high, and fitted to receive and alter at pleasure the several magnet and soft iron correctors. They are also fitted with different forms of suspension in which the compass is mounted to obviate the mechanical disturbance of the card caused by the vibration of the hull in ships driven by powerful engines.

The effects of the iron and steel used in the construction of ships upon the compass occupied the attention of the ablest physicists of the 19th century, with results which enable navigators to conduct their ships with perfect safety. The hull of an iron or steel ship is a magnet, and the distribution of its magnetism depends upon the direction of the ship's head when building, this result being produced by induction from the earth's magnetism, developed and impressed by the hammering of the plates and frames during the process of building. The disturbance of the compass by the magnetism of the hull is generally modified, sometimes favourably, more often unfavourably, by the magnetized fittings of the ship, such as masts, conning towers, deck houses, engines and boilers. Thus in every ship the compass needle is more or less subject to deviation differing in amount and direction for every azimuth of the ship's head. This was first demonstrated by Commander Matthew Flinders by experiments made in H.M.S. "Investigator" in 1800-1803, and in 1810 led that officer to introduce the practice of placing the ship's head on each point of the compass, and noting the amount of deviation whether to the east or west of the magnetic north, a process which is in full exercise at the present day, and is called "swinging ship." When speaking of the magnetic properties of iron it is usual to adopt the terms "soft" and "hard." Soft iron is iron which becomes instantly magnetized by induction when exposed to any magnetic force, but has no power of retaining its magnetism. Hard iron is less susceptible of being magnetized, but when once magnetized it retains its magnetism permanently. The term "iron" used in these pages includes the "steel" now commonly employed in shipbuilding. If an iron ship be swung when upright for deviation, and the mean horizontal and vertical magnetic forces at the compass positions be also observed in different parts of the world, mathematical analysis shows that the deviations are caused

## partly by the permanent magnetism of hard iron, partly by the transient

induced magnetism of soft iron both horizontal and vertical, and in a lesser degree by iron which is neither magnetically hard nor soft, but which becomes magnetized in the same manner as hard iron, though it gradually loses its magnetism on change of conditions, as, for example, in the case of a ship, repaired and hammered in dock, steaming in an opposite direction at sea. This latter cause of deviation is called sub-permanent magnetism. The horizontal directive force on the needle on board is nearly always less than on land, sometimes much less, whilst in armour-plated ships it ranges from .8 to .2 when the directive force on land = 1.0. If the ship be inclined to starboard or to port additional deviation will be observed, reaching a maximum on north and south points, decreasing to zero on the east and west points. Each ship has its own magnetic character, but there are certain conditions which are common to vessels of the same type.

Instead of observing the deviation solely for the purposes of correcting the indications of the compass when disturbed by the iron of the ship, the practice is to subject all deviations to mathematical analysis with a view to their mechanical correction. The whole of the deviations when the ship is upright may be expressed nearly by five co-efficients, A, B, C, D, E. Of these A is a deviation constant in amount for every direction of the ship's head. B has reference to horizontal forces

## acting in a longitudinal direction in the ship, and caused partly by the

permanent magnetism of hard iron, partly by vertical induction in vertical soft iron either before or abaft the compass. C has reference to forces acting in a transverse direction, and caused by hard iron. D is due to transient induction in horizontal soft iron, the direction of which passes continuously under or over the compass. E is due to transient induction in horizontal soft iron unsymmetrically placed with regard to the compass. When data of this character have been obtained the compass deviations may be mechanically corrected to within 1°--always adhering to the principal that "like cures like." Thus the part of B caused by the permanent magnetism of hard iron must be corrected by permanent magnets horizontally placed in a fore and aft direction; the other part caused by vertical soft iron by means of bars of vertical soft iron, called Flinders bars, before or abaft the compass. C is compensated by permanent magnets athwart-ships and horizontal; D by masses of soft iron on both sides of the compass, and generally in the form of cast-iron spheres, with their centres in the same horizontal plane as the needles; E is usually too small to require correction; A is fortunately rarely of any value, as it cannot be corrected. The deviation observed when the ship inclines to either side is due--(1) to hard iron acting vertically upwards or downwards; (2) to vertical soft iron immediately below the compass; (3) to vertical induction in horizontal soft iron when inclined. To compensate (1) vertical magnets are used; (3) is partly corrected by the soft iron correctors of D; (2) and the remaining part of (3) cannot be conveniently corrected for more than one geographical position at a time. Although a compass may thus be made practically correct for a given time and place, the magnetism of the ship is liable to changes on changing her geographical position, and especially so when steaming at right angles or nearly so to the magnetic meridian, for then sub-permanent magnetism is developed in the hull. Some vessels are more liable to become sub-permanently magnetized than others, and as no corrector has been found for this source of deviation the navigator must determine its amount by observation. Hence, however carefully a compass may be placed and subsequently compensated, the mariner has no safety without constantly observing the bearings of the sun, stars or distant terrestrial objects, to ascertain its deviation. The results of these observations are entered in a compass journal for future reference when fog or darkness prevails.

Every compass and corrector supplied to the ships of the British navy is previously examined in detail at the Compass Observatory established by the admiralty at Deptford. A trained observer acting under the superintendent of compasses is charged with this important work. The superintendent, who is a naval officer, has to investigate the magnetic character of the ships, to point out the most suitable positions for the compasses when a ship is designed, and subsequently to keep himself informed of their behaviour from the time of the ship's first trial. A museum containing compasses of various types invented during the 19th century is attached to the Compass Observatory at Deptford.

The mariner's compass during the early part of the 19th century was still a very imperfect instrument, although numerous inventors had tried to improve it. In 1837 the Admiralty Compass Committee was appointed to make a scientific investigation of the subject, and propose a form of compass suitable alike for azimuth and steering purposes. The committee reported in July 1840, and after minor improvements by the makers the admiralty compass, the card of which is shown in figs. 1 and 2, was adopted by the government. Until 1876, when Sir William Thomson introduced his patent compass, this compass was not only the regulation compass of the British navy, but was largely used in other countries in the same or a modified form. The introduction of powerful engines causing serious vibration to compass cards of the admiralty type, coupled with the prevailing desire for larger cards, the deviation of which could also be more conveniently compensated, led to the gradual introduction of the Thomson compass. Several important points were gained in the latter: the quadrantal deviation could be finally corrected for all latitudes; frictional error at the cap and pivot was reduced to a minimum, the average weight of the card being 200 grains; the long free vibrational period of the card was found to be favourable to its steadiness when the vessel was rolling. The first liquid compass used in England was invented by Francis Crow, of Faversham, in 1813. It is said that the idea of a liquid compass was suggested to Crow by the experience of the captain of a coasting vessel whose compass card was oscillating wildly until a sea broke on board filling the compass bowl, when the card became steady. Subsequent improvements were made by E. J. Dent, and especially by E. S. Ritchie, of Boston, Massachusetts. In 1888 the form of liquid compass (fig. 5) now solely used in torpedo boats and torpedo boat destroyers was introduced. It has also proved to be the most trustworthy compass under the shock of heavy gun fire at present available. The deflector is an instrument designed to enable an observer to reduce the deviations of the compass to an amount not exceeding 2° during fogs, or at any time when bearings of distant objects are not available. It is certain that if the directive forces on the north, east, south and west points of a compass are equal, there can be no deviation. With the deflector any inequality in the directive force can be detected, and hence the power of equalizing the forces by the usual soft iron and magnet correctors. Several kinds of deflector have been invented, that of Lord Kelvin (Sir William Thomson) being the simplest, but Dr Waghorn's is also very effective. The use of the deflector is generally confined to experts.

_The Magnetism of Ships._--In 1814 Flinders first showed (see Flinders's _Voyage_, vol. ii. appx. ii.) that the abnormal values of the variation observed in the wood-built ships of his day was due to deviation of the compass caused by the iron in the ship; that the deviation was zero when the ship's head was near the north and south points; that it attained its maximum on the east and west points, and varied as the sine of the azimuth of the ship's head reckoned from the zero points. He also described a method of correcting deviation by means of a bar of vertical iron so placed as to correct the deviation nearly in all latitudes. This bar, now known as a "Flinders bar," is still in general use. In 1820 Dr T. Young (see Brande's _Quarterly Journal_, 1820) investigated mathematically the magnetism of ships. In 1824 Professor Peter Barlow (1776-1862) introduced his correcting plate of _soft_ iron. Trials in certain ships showed that their magnetism consisted partly of hard iron, and the use of the plate was abandoned. In 1835 Captain E. J. Johnson, R.N., showed from experiments in the iron steamship "Garry Owen" that the vessel acted on an external compass as a magnet. In 1838 Sir G. B. Airy magnetically examined the iron steamship "Rainbow" at Deptford, and from his mathematical investigations (see _Phil. Trans._, 1839) deduced his method of correcting the compass by permanent magnets and soft iron, giving practical rules for the same in 1840. Airy's and Flinders's correctors form the basis of all compass correctors to this day. In 1838 S. D. Poisson published his _Memoir on the Deviations of the Compass caused by the Iron in a Vessel_. In this he gave equations resulting from the hypothesis that the magnetism of a ship is partly due to the permanent magnetism of hard iron and partly to the transient induced magnetism of soft iron; that the latter is proportional to the intensity of the inducing force, and that the length of the needle is infinitesimally small compared to the distance of the surrounding iron. From Poisson's equations Archibald Smith deduced the formulae given in the _Admiralty Manual for Deviations of the Compass_ (1st ed., 1862), a work which has formed the basis of numerous other manuals since published in Great Britain and other countries. In view of the serious difficulties connected with the inclining of every ship, Smith's formulae for ascertaining and providing for the correction of the heeling error with the ship upright continue to be of great value to safe navigation. In 1855 the Liverpool Compass Committee began its work of investigating the magnetism of ships of the mercantile marine, resulting in three reports to the Board of Trade, all of great value, the last being presented in 1861.

See also MAGNETISM, and NAVIGATION; articles on Magnetism of Ships and Deviations of the Compass, _Phil. Trans._, 1839-1883, _Journal United Service Inst._, 1859-1889, _Trans. Inst. Nav. Archit._, 1860-1861-1862, _Report of Brit. Assoc._, 1862, _London Quarterly Rev._, 1865; also _Admiralty Manual_, edit. 1862-1863-1869-1893-1900; and Towson's _Practical Information on Deviations of the Compass_ (1886). (E. W. C.)

_History of the Mariner's Compass._

The discovery that a lodestone, or a piece of iron which has been touched by a lodestone, will direct itself to point in a north and south position, and the application of that discovery to direct the navigation of ships, have been attributed to various origins. The Chinese, the Arabs, the Greeks, the Etruscans, the Finns and the Italians have all been claimed as originators of the compass. There is now little doubt that the claim formerly advanced in favour of the Chinese is ill-founded. In Chinese history we are told how, in the sixty-fourth year of the reign of Hwang-ti (2634 B.C.), the emperor Hiuan-yuan, or Hwang-ti, attacked one Tchi-yeou, on the plains of Tchou-lou, and finding his army embarrassed by a thick fog raised by the enemy, constructed a chariot (Tchi-nan) for indicating the south, so as to distinguish the four cardinal points, and was thus enabled to pursue Tchi-yeou, and take him prisoner. (Julius Klaproth, _Lettre à M. le Baron Humboldt sur l'invention de la boussole_, Paris, 1834. See also Mailla, _Histoire générale de la Chine_, tom. i. p. 316, Paris, 1777.) But, as other versions of the story show, this account is purely mythical. For the south-pointing chariots are recorded to have been first devised by the emperor Hian-tsoung (A.D. 806-820); and there is no evidence that they contained any magnet. There is no genuine record of a Chinese marine compass before A.D. 1297, as Klaproth admits. No sea-going ships were built in China before 139 B.C. The earliest allusion to the power of the lodestone in Chinese literature occurs in a Chinese dictionary, finished in A.D. 121, where the lodestone is defined as "a stone with which an attraction can be given to a needle," but this knowledge is no more than that existing in Europe at least five hundred years before. Nor is there any nautical significance in a passage which occurs in the Chinese encyclopaedia, _Poei-wen-yun-fou_, in which it is stated that under the Tsin dynasty, or between A.D. 265 and 419, "there were ships indicating the south."

The Chinese, Sir J. F. Davis informs us, once navigated as far as India, but their most distant voyages at present extend not farther than Java and the Malay Islands to the south (_The Chinese_, vol. iii. p. 14, London, 1844). According to an Arabic manuscript, a translation of which was published by Eusebius Renaudot (Paris, 1718), they traded in ships to the Persian Gulf and Red Sea in the 9th century. Sir G. L. Staunton, in vol. i. of his _Embassy to China_ (London, 1797), after referring to the early acquaintance of the Chinese with the property of the magnet to point southwards, remarks (p. 445), "The nature and the cause of the qualities of the magnet have at all times been subjects of contemplation among the Chinese. The Chinese name for the compass is _ting-nan-ching_, or needle pointing to the south; and a distinguishing mark is fixed on the magnet's southern pole, as in European compasses upon the northern one." "The sphere of Chinese navigation," he tells us (p. 447), "is too limited to have afforded experience and observation for forming any system of laws supposed to govern the variation of the needle.... The Chinese had soon occasion to perceive how much more essential the perfection of the compass was to the superior navigators of Europe than to themselves, as the commanders of the 'Lion' and 'Hindostan,' trusting to that instrument, stood out directly from the land into the sea." The number of points of the compass, according to the Chinese, is twenty-four, which are reckoned from the south pole; the form also of the instrument they employ is different from that familiar to Europeans. The needle is peculiarly poised, with its point of suspension a little below its centre of gravity, and is exceedingly sensitive; it is seldom more than an inch in length, and is less than a line in thickness. "It may be urged," writes Mr T. S. Davies, "that the different manner of constructing the needle amongst the Chinese and European navigators shows the independence of the Chinese of us, as theirs is the worse method, and had they copied from us, they would have used the better one" (Thomson's _British Annual_, 1837, p. 291). On the other hand, it has been contended that a knowledge of the mariner's compass was communicated by them directly or indirectly to the early Arabs, and through the latter was introduced into Europe. Sismondi has remarked (_Literature of Europe_, vol. i.) that it is peculiarly characteristic of all the pretended discoveries of the middle ages that when the historians mention them for the first time they treat them as things in general use. Gunpowder, the compass, the Arabic numerals and paper, are nowhere spoken of as discoveries, and yet they must have wrought a total change in war, in navigation, in science, and in education. G. Tiraboschi (_Storia della letteratura italiana_, tom. iv. lib. ii. p. 204, et seq., ed. 2., 1788), in support of the conjecture that the compass was introduced into Europe by the Arabs, adduces their superiority in scientific learning and their early skill in navigation. He quotes a passage on the polarity of the lodestone from a treatise translated by Albertus Magnus, attributed by the latter to Aristotle, but apparently only an Arabic compilation from the works of various philosophers. As the terms _Zoron_ and _Aphron_, used there to signify the south and north poles, are neither Latin nor Greek, Tiraboschi suggests that they may be of Arabian origin, and that the whole passage concerning the lodestone may have been added to the original treatise by the Arabian translators.

Dr W. Robertson asserts (_Historical Disquisition concerning Ancient India_, p. 227) that the Arabs, Turks and Persians have no original name for the compass, it being called by them _Bossola_, the Italian name, which shows that the thing signified is foreign to them as well as the word. The Rev. G. P. Badger has, however, pointed out (_Travels of Ludovico di Varthema_, trans. J. W. Jones, ed. G. P. Badger, Hakluyt Soc, 1863, note, pp. 31 and 32) that the name of Bushla or Busba, from the Italian _Bussola_, though common among Arab sailors in the Mediterranean, is very seldom used in the Eastern seas,--_Daïrah_ and _Beit el-Ibrah_ (the Circle, or House of the Needle) being the ordinary appellatives in the Red Sea, whilst in the Persian Gulf _Kiblah-n[=a]meh_ is in more general use. Robertson quotes Sir J. Chardin as boldly asserting "that the Asiatics are beholden to us for this wonderful instrument, which they had from Europe a long time before the Portuguese conquests. For, first, their compasses are exactly like ours, and they buy them of Europeans as much as they can, scarce daring to meddle with their needles themselves. Secondly, it is certain that the old navigators only coasted it along, which I impute to their want of this instrument to guide and instruct them in the middle of the ocean.... I have nothing but argument to offer touching this matter, having never met with any person in Persia or the Indies to inform me when the compass was first known among them, though I made inquiry of the most learned men in both countries. I have sailed from the Indies to Persia in Indian ships, when no European has been aboard but myself. The pilots were all Indians, and they used the forestaff and quadrant for their observations. These instruments they have from us, and made by our artists, and they do not in the least vary from ours, except that the characters are Arabic. The Arabs are the most skilful navigators of all the Asiatics or Africans; but neither they nor the Indians make use of charts, and they do not much want them; some they have, but they are copied from ours, for they are altogether ignorant of perspective." The observations of Chardin, who flourished between 1643 and 1713, cannot be said to receive support from the testimony of some earlier authorities. That the Arabs must have been acquainted with the compass, and with the construction and use of charts, at a period nearly two centuries previous to Chardin's first voyage to the East, may be gathered from the description given by Barros of a map of all the coast of India, shown to Vasco da Gama by a Moor of Guzerat (about the 15th of July 1498), in which the bearings were laid down "after the manner of the Moors," or "with meridians and parallels very small (or close together), without other bearings of the compass; because, as the squares of these meridians and parallels were very small, the coast was laid down by these two bearings of N. and S., and E. and W., with great certainty, without that multiplication of bearings of the points of the compass usual in our maps, which serves as the root of the others." Further, we learn from Osorio that the Arabs at the time of Gama "were instructed in so many of the arts of navigation, that they did not yield much to the Portuguese mariners in the science and practice of maritime matters." (See _The Three Voyages of Vasco da Gama_, Hakluyt Soc, 1869; note to chap. xv. by the Hon. H. E. J. Stanley, p. 138.) Also the Arabs that navigated the Red Sea at the same period are shown by Varthema to have used the mariner's chart and compass (_Travels_, p. 31).

Again, it appears that compasses of a primitive description, which can hardly be supposed to have been brought from Europe, were employed in the East Indies certainly as early as several years previous to the close of the 16th century. In William Barlowe's _Navigator's Supply_, published in 1597, we read:--"Some fewe yeeres since, it so fell out that I had severall conferences with two East Indians which were brought into England by master Candish [Thomas Cavendish], and had learned our language: The one of them was of Mamillia [Manila] in the Isle of Luzon, the other of Miaco in Japan. I questioned with them concerning their shipping and manner of sayling. They described all things farre different from ours, and shewed, that in steade of our Compas, they use a magneticall needle of sixe ynches long, and longer, upon a pinne in a dish of white _China_ earth filled with water; In the bottome whereof they have two crosse lines, for the foure principall windes; the rest of the divisions being reserved to the skill of their Pilots." Bailak Kibdjaki, also, an Arabian writer, shows in his _Merchant's Treasure_, a work given to the world in 1282, that the magnetized needle, floated on water by means of a splinter of wood or a reed, was employed on the Syrian seas at the time of his voyage from Tripoli to Alexandria (1242), and adds:--"They say that the captains who navigate the Indian seas use, instead of the needle and splinter, a sort of fish made out of hollow iron, which, when thrown into the water, swims upon the surface, and points out the north and south with its head and tail" (Klaproth, _Lettre_, p. 57). E. Wiedemann, in _Erlangen Sitzungsberichte_ (1904, p. 330), translates the phrase given above as splinter of wood, by the term wooden cross. Furthermore, although the sailors in the Indian vessels in which Niccola de' Conti traversed the Indian seas in 1420 are stated to have had no compass, still, on board the ship in which Varthema, less than a century later, sailed from Borneo to Java, both the mariner's chart and compass were used; it has been questioned, however, whether in this case the compass was of Eastern manufacture (_Travels of Varthema_, Introd. xciv, and p. 249). We have already seen that the Chinese as late as the end of the 18th century made voyages with compasses on which but little reliance could be placed; and it may perhaps be assumed that the compasses early used in the East were mostly too imperfect to be of much assistance to navigators, and were therefore often dispensed with on customary routes. The Arab traders in the Levant certainly used a floating compass, as did the Italians before the introduction of the pivoted needle; the magnetized piece of iron being floated upon a small raft of cork or reeds in a bowl of water. The Italian name of _calamita_, which still persists, for the magnet, and which literally signifies a frog, is doubtless derived from this practice.

The simple water-compass is said to have been used by the Coreans so late as the middle of the 18th century; and Dr T. Smith, writing in the _Philosophical Transactions_ for 1683-1684, says of the Turks (p. 439), "They have no genius for Sea-voyages, and consequently are very raw and unexperienced in the art of Navigation, scarce venturing to sail out of sight of land. I speak of the natural _Turks_, who trade either into the _black Sea_ or some part of the _Morea_, or between _Constantinople_ and _Alexandria_, and not of the Pyrats of _Barbary_, who are for the most part Renegado's, and learnt their skill in Christendom. ... The Turkish compass consists but of 8 points, the four Cardinal and the four Collateral." That the value of the compass was thus, even in the latter part of the 17th century, so imperfectly recognized in the East may serve to explain how in earlier times that instrument, long after the first discovery of its properties, may have been generally neglected by navigators.

The Arabic geographer, Edrisi, who lived about 1100, is said by Boucher to give an account, though in a confused manner, of the polarity of the magnet (Hallam, _Mid. Ages_, vol. iii. chap. 9,