“ It is deserving of notice that the British character of the company is insisted upon in each case in the charter which calls it into life. The crown always retains complete control over the company by reserving to itself the power of revoking the charter in case of the neglect of its stipulations. Special clauses were inserted in the charters of the British East Africa and South Africa Companies enabling the government to forfeit their charters if they did not promote the objects alleged as reasons for demanding a charter. ”

“ So long as the political relations of such a company are with savages or semi-savages, it may be left free to act, but directly it becomes involved with a civilized power the state has (if it wishes to retain the territory) to acquire by purchase the political rights of the company, and it is obviously much easier to induce a popular assembly to grant money for the purpose of maintaining rights already existing than to acquire new ones. ”

“ When there is no other means of entering into commercial relations with remote and savage races save by enterprise of such magnitude that private individuals could not incur the risk involved, then a company may be well entrusted with special privileges for the purpose, as an inventor is accorded a certain protection by law by means of a patent which enables him to bring out his invention at a profit if there is anything in it. ”

“ CHARTERED COMPANIES. A chartered company is a trading corporation enjoying certain rights and privileges, and bound by certain obligations under a special charter granted to it by the sovereign authority of the state, such charter defining and limiting those rights, privileges and obligations, and the localities in which they are to be exercised. ”

“ The companies which have been formed in France during recent years do not yet afford material for profitable study, for they have been subject to so much vexatious interference from home owing to lack of a fixed system of control sanctioned by government, that they have not been able, like the British, to develop along their own lines. ”

“ So, even in France and Holland, opinion was by no means settled as to their utility. In England historic protests were made against such monopolies, but the chartered companies were less exclusive in England than in either France or Holland, the governors of provinces almost always allowing strangers to trade on receiving some pecuniary inducement. French commercial companies were more privileged, exclusive and artificial than those in Holland and England. Those of Holland may be said to have been national enterprises. French companies rested more than did their rivals on false principles ”

“ The existence of such companies to-day is justified in certain political and economic conditions only. It may be highly desirable for the government to occupy certain territories, but political exigencies at home will not permit it to incur the expenditure, or international relations may make such an undertaking inexpedient at the time. In such a case the formation of a chartered company may be the best way out of the difficulty. ”

“ Charters were given to companies trading to Guinea, Morocco, Guiana and the Canaries, but none of these enjoyed a very long or prosperous existence, principally owing to the difficulties caused by foreign competition. It is when we turn to North America that the importance of the chartered company, as a colonizing rather than a trading agency, is seen in its full development. ”

“ That this is so is clearly shown in the case of the Hudson’s Bay Company as at present constituted. In colonizing new lands these companies often act successfully. They have proved more potent than the direct action of governments. This may be seen in Africa, where France and England have of late acquired vast areas, but have developed them with very different results, acting from the opposite principles of private and state promotion of colonization. Apart from national characteristics, the individual has far more to gain under the British system of private enterprise. ”

“ With the strict system of government supervision enforced by modern charters it is not easy for the state to be involved against its will in foreign complications. Economically such companies are also justifiable up to a certain point. ”

“ It is a feature of the general growth of interest in colonial expansion and commercial development which has made itself felt almost universally among European nations. Great Britain, however, alone has succeeded in establishing such companies as have materially contributed to the growth of her empire. ”