Pages: 397-418

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Liefmann: «Beteiligungs- und Finanzierungs-Ges[ellschaf-
ten»
[1] [402]
Neue Zeit 1911 (about war NB) and 1912 (incidentally about the United States of Europe)
[15] [424]
Finanz-Archiv: 1915
Statistics of emissions
Eggenschwyller
Crohn (about Argentina NB).
Paish.
Mülhaupt: «Milchring».
Union of capitalists about war.
Crammond: England and Germany.
Sale: Japan versus England.
LIEFMAHN: «BETEILIGUNGS- UND FINANZIERUNGSGESELLSCHAFTEN»
Professor Dr. Robert Liefmann: «Beteiligungs- und Finanzierungsgesellschaften». Jena 1909. (Eine Studie über den modernen Kapitalismus und das Effektenwesen). (X+495).
(Compare especially page 77 of excerpts)* ((The author is a dyed-in-the-wool fool, like someone carrying a bag around with definitions — utterly stupid —
[21] [434]
[23] [436]
[25] [442]
[27] [448]
[31] [458]
[35] [466]
[37] [472]
* This note in square brackets in the manuscript is written in pencil at the top of the page above the book title. Ed.

Neue Zeit 1911 (about war NB) and 1912 (incidentally about the United States of Europe)
[15] [425]
«Finanz-Archiv»: 1915
[21] [435]
Statistics of emissions
[23] [437]
Eggenschwiller
Crohn (about Argentina NB).
Paish.
Mülhaupt: «Milk syndicate».
[25] [443]
Unions of capitalists about war.
[27] [449]
Crammond: England and Germany.
[31] [459]
Sale: Japan versus England.
[35] [467]
Liefman: «Societies of Participation and Financing»
[37] [473]
LIEFMAN: «SOCIETIES OF PARTICIPATION AND FINANCING»
Professor Dr. Robert Liefmann: «Societies of Participation and Financing». Jena 1909. (Essay on modern capitalism and stock market operations). (X + 495).
(Compare especially page 77 of excerpts) * ((The author is a dyed-in-the-wool fool, like someone carrying a bag around with definitions — utterly stupid —
all around the word Substitution. Valuable factual data, mostly completely raw. Opponent of the labor theory of value etc. etc.))).

S. 104—449 «Beschreibender Teil». The theoretical part = nonsense *
S. 9: — against Sombart for his following «ganz im Fahrwasser» of the labor theory of value of Ricardo — Marx.
S. 33: «In Prussia the number of owners of shares is only 2% of the population». More in England and America. «Für Preussen veranschlagte 1909 der Entwurf eines Gesellschaftssteuergesetzes den durchschnittlichen Aktienbesitz in Preussen auf noch nicht 10.000 Mark. Derselbe würde sich auf ungefähr 700.000 Personen verteilen. Alle solche Schätzungen sind aber sehr unsicher» (34).
«Allgemeine statistische Feststellungen über den Umfang, den die Effektifizierung des Kapitals heute angenommen hat, gibt es nicht... Nach Philippovich (Grundriss, 7. Auflage, S. 164) stellen 40% des englischen Volksvermögens «Wertkapitalien» (das sind Effekten und Hypotheken) dar. Schmoller (Statistische Anlagen zu den Stenographischen Berichten der Börsen-Enquete-Komission 1892/3) berechnete 1892, dass in Preussen zirka 16—20 Milliarden Mark, d. i. zirka 1/4 des gesamten preussischen Kapitalbesitzes, in Effekten angelegt seien. Sombart (Die deutsche Volkswirtschaft im 19. Jahrhundert, S. 224) nimmt 1900 für Deutschland einen Effektenbesitz von 31—32
* This note ("S. 104—443"... etc.) is written in the margins on the left next to the previous remark (in double parentheses). Ed.
** The word «Aktien» («shares») is additionally written in parentheses at the top between the lines. Ed.

Milliarden Mark an» (37).
«Diese Summe ist heute entschieden zu niedrig und das in Effekten verkörperte Kapital Deutschlands mit 40—50 Milliarden Mark anzunehmen, was immerhin nur etwa 7% des aus 250 Milliarden Mark zu veranschlagenden Volksvermögens im Deutschen Reich ist». (37).
In America *) 1904—107 billion dollars national income. About 7% — stock capital. «Für England он *) indicates stock capital at 26 billion dollars, for France — at 197 billion dollars. The pan-European stock capital amounts to about 75 billion dollars». (38).
Charles A. Conant: The concentration of Capital in New York & Those who manage it. «Bankers Magazine». November 1907. (quoted page 38) *.
44: ...«ausserordentliche Verflechtung aller wirtschaftlichen Interessen»...
51: «Union» (Aktiengesellschaft für Bergbau etc. in Dortmund) ((about it and Stillich a S. 38 and 41))
Founded 1872. «Das Aktienkapital von fast 40 Millionen Mark wurde 1872 emittiert, der Kurs stieg auf 1700/0, als die Gesellschaft für das
This bibliographical reference in the manuscript is given as a footnote at the very end of the page. Here it is brought directly to the text to which it refers. Ed.
This note (in double parentheses) in the manuscript is written between the lines, above the words: "etc." Ed.

LIEFMAN: «SOCIETIES OF PARTICIPATION AND FINANCING»
ZD5
all around the word "substitution" (replacement). Valuable factual data, mostly completely raw. Opponent of the labor theory of value, etc. etc.))).
S. 104—449 «Descriptive Part». The theoretical part = nonsense *
S. 9: — against Sombart for his following «completely along the path» of the labor theory of value of Ricardo — Marx.
S. 33: «In Prussia the number of shareholders** amounts to only 2% of the population». More in England and America. «In the bill on taxation of joint-stock companies in 1909, the average shareholding in Prussia was estimated at less than 10,000 marks. This amount would represent the investments of approximately 700,000 people. However, all estimates of this kind are very problematic» (34).
«General statistical data regarding the extent of the development of stock capital at the present time are not available. According to Philippovich (Outline, 7th ed., p. 164), 40% of English national wealth is represented by "capital in securities" (i.e., stocks and mortgages). Schmoller (Statistical appendices to the stenographic reports of the stock market inquiry commission 1892/3) calculated in 1892 that in Prussia about 16-20 billion marks, i.e., approximately 1/4 of all Prussian capital, is invested in stocks. Sombart (The German National Economy in the 19th Century, p. 224) determines for Germany in 1900 stock capital at 31-32 billion marks» (37).
Number of
Shareholders

406
LENIN'S collection
Milliarden Mk an» (37).
«Diese Summe ist heute entschieden zu niedrig und das in Effekten verkörperte Kapital Deutschlands mit 40—50 Milliarden Mk anzunehmen, was immerhin nur etwa 7% des aus 250 Milliarden Mk zu veranschlagenden Volksvermögens im Deutschen Reich ist». (37).
In America *) 1904—107 billion dollars national income. About 7% — stock capital. «Für England он *) indicates stock capital at 26 billion dollars, for France — at 197 billion dollars. The pan-European stock capital amounts to about 75 billion dollars». (38).
Charles A. Conant: The concentration of Capital in New York & Those who manage it. «Bankers Magazine». November 1907. (quoted page 38) *.
44: ...«ausserordentliche Verflechtung aller wirtschaftlichen Interessen»...
51: «Union» (Aktiengesellschaft für Bergbau etc. in Dortmund) ((about it and Stillich a S. 38 and 41))
Founded 1872. «Das Aktienkapital von fast 40 Millionen Mark wurde 1872 emittiert, der Kurs stieg auf 1700/0, als die Gesellschaft für das
This bibliographical reference in the manuscript is given as a footnote at the very end of the page. Here it is brought directly to the text to which it refers. Ed.
This note (in double parentheses) in the manuscript is written between the lines, above the words: "etc." Ed.

LIEFMAN: «SOCIETIES OF PARTICIPATION AND FINANCING»
407 "This sum is definitely too low for the present time; the capital embodied in the funds of Germany should be assumed at 40-50 billion marks, which still represents only approximately 7% of the national capital of Germany, estimated at 250 billion marks." (37).
In America *) in 1904 - 107 billion dollars national income. About 7% — stock capital. "For England он *) indicates stock capital at 26 billion dollars, for France — at 197 billion dollars. The pan-European stock capital amounts to about 75 billion dollars." (38).
*) Charles A. Conant: The concentration of capital in New York & Those who manage it. "Bankers Magazine". November 1907 (quoted from p. 38) *.
So:

Stock capital
America
England
France
Germany


19, 12, 93, billions of dollars
> 58.
I


difference

X 5 = 465 billion francs
[a Neumark estimates 600]
44: ... "an extraordinary interweaving of all economic interests"...
51: "Union" (mining and other joint-stock company in Dortmund) ((about it also Stillich a.a.O. pp. 38 and 41); Founded in 1872. "Share capital amounting to almost 40 million marks was issued in 1872; the rate rose to 170% when the company paid out
170%

408

1. Geschäftsjahr 12% Dividende zahlte. Dann aber war es mit (12%—0%) Dividenden bis 1880 vorbei, und schon 1875 musste die erste jener Sanierungen vorgenommen werden, die seitdem fast in jeder Epoche ungünstiger Konjunktur sich wiederholt haben... Die Hauptleidenden sind jedenfalls die jeweiligen Aktionäre gewesen».
«Wenn aber auch Gesellschaften nicht mit solchen Zwecken («in Effekten spekulieren») gegründet werden, so kommt es doch vor, dass Unternehmungen mit anderen Zwecken tatsächlich mehr oder weniger ausschliesslich zu Effektenspekulationen übergehen. Teils kann dies geschehen, weil die Aktionäre sich nicht genügend um die Tätigkeit ihrer Direktoren kümmern, teils weil sie darüber seitens der letzteren getäuscht werden». (67).
71: Different types of societies predominate in different countries:
In America — control over other societies.
Germany — takeover societies (Übernahme-)
France — societies for capital investment.
Holland ("als Rentnerstaat" p. 71) — also.
Belgium — à la Germany.
England — societies for capital investment (investment trusts)...
Je id eis: "Das Verhältnis der deutschen Grossbanken zur Industrie". Leipzig 1905.
Dr. Riesser: "Zur Entwicklungsgeschichte der deutschen Grossbanken mit besonderer Rücksicht auf die Konzentrationsbestrebungen". 1906.
P. 117 — one of many examples of owning shares in the Belgian "Société générale" (31. XII. 1906 — shares and bonds for 198 million francs, hordes of societies).
Example of speculation
Pp. 136-7. Example:
London & Colonial Finance Corporation "die bei nur £ 21.745 eingezahltcm Kapital im Jahre 1890 einen Reingewinn von 80.567 £ = 370% des Kapitals erzielte und 100% Dividenden zahlte".

LIEFMANN: "PARTICIPATION AND FINANCING COMPANIES"
409
NB
12% dividend. However, after that, the payment of dividends ceased until 1880, and already in 1875 it had to be (12% — 0%) undertaken for the first time one of those measures for sanitation, which have since been repeated almost in every period of unfavorable conjuncture... In each case, the shareholders mainly suffered."
"But even in cases where joint-stock companies do not set themselves these goals at the foundation ("speculation of funds"), it still happens that enterprises pursuing other goals actually more or less exclusively switch to speculation of funds. This may occur partly because shareholders are not sufficiently interested in the activities of their directors, and partly because the latter mislead them in this regard." (67).
71: Different types of societies predominate in different countries:
In America — control over other societies.
Germany — takeover societies (Übernahme-)
France — societies for capital investment.
Holland ("als Rentnerstaat" p. 71) — also.
Belgium — like Germany.
England — societies for capital investment (investment trusts)...
NB
NB
Eidels: "The relationship of large German banks to industry." Leipzig 1905.
Dr. Riesser: "On the history of the development of large German banks, especially taking into account the tendencies towards concentration." 1906.
P. 117 — one of many examples of owning shares in the Belgian "Société générale" (31. XII. 1906 — shares and bonds for 198 million francs, hordes of societies).
Pp. 136-7. Example:
The "London & Colonial Finance Corporation", "which with a basic capital of only £21,740 received in 1890 £80,567 of net profit = 370% of capital and paid 100% dividend."

410

good example
Capital investment company (Kapitalanlagegesellschaft) — — 6° 7 0

1901 — 2


1905 — 6 o
O


1907 — 8
— 6 — 4%
— "Joint-stock company of Rhine-Westphalian industry." Founded October 1874. (p. 156)
Dividend: 1872 — 35%
— 35
NB
1873 — 1883— 0
— 0
1884 — 1895 - 3 — 9%
NB
1896 — 1899 — 10 — 21%
36 years:


Dr. Emil Wolf: Practice of financing and so on. Berlin 1905.
Francis Cooper: Financing the enterprise. 2 volumes. New York 1906.
Edward Carroll: Principles and practice of finance. 1902. (New York).
V. Lotz: Technique of emission operations. In "Schmollers Jahrbuch". 1890. P. 393 and following.
"Thus, the use of capital investment companies to "ensure the profitability of large investments for small deposits" *) did not work out" (163).
*) Jörgens, pp. 45-6.
P. 64: Cologne banker Louis Hagen was a member of the supervisory board in 35 enterprises; the German bank according to Eidels **) had its directors as members of the supervisory boards in 101 joint-stock companies, in addition, its own supervisory boards in 120 societies" (p. 64).
good example
**) Eidels: "The relationship of large German banks to industry." 1905 *.

NB
Repeated 5 times
Effects are issued many times by different societies for the same value
example (American)... "ihr (of these railway companies) Sachkapital 5 mal wieder in dem Effektenkapital der sie direkt oder indirekt kontrollierenden Gesellschaften erscheint" (182).
(Charles A. Conant: The tendencies of modern banking. ("Bankers Magazine" 1905)*
1000% and crisis "Northern Pacific" society. Capital = 80 million $ Stammaktien. The struggle of Harriman and Hill. Hill acquired 15 million Stammaktien. "Durch diesen «raid» (Attacke) wurde der Kurs der Northern-Pacific Aktien auf nahezu 1000% getrieben... am 9. V. 1901 kam es zu einer Börsenkrisis, durch welche zahlreiche kleine Existenzen vernichtet wurden, während die Hauptbeteiligten nach Harrimans Angabe keine Verluste bei diesem corner erlitten". (184).
"Mit der modernen Weiterbildung des Effektenkapitalismus sind die Verfahren etwas verfeinert (S. 186)** worden, mittels deren man dem Publikum in großem Maße das Geld abnehmen und es in die eigenen Taschen leiten kann. Das Mittel ist heute die fortgesetzte Gründung und das aufeinander Propfen von immer neuen Gesellschaften, an die man immer
* The bibliographic information given here in parentheses is given in the manuscript at the end of page 6, between the previous German text (between the words "sie" and "direkt"). Ed.
** Reference: "(S. 186)" in the manuscript is added between the lines, above the word "verfeinert". Ed.
(italics mine) ***
NB
italics
Liefmann's ***

LIEFMANN: "PARTICIPATION AND FINANCING COMPANIES"
413
Effects are issued many times by different societies for the same value
example (American)... "their (of these railway companies) capital assets reappear 5 times in the equity capital of the societies under whose direct or indirect control they are" (182).
(Ch. A. Conant: Tendencies of a modern bank ("Bankers Magazine" 1905)
"Northern Pacific" society. Capital = 80 million dollars of founding shares. The struggle of Harriman and Hill. Hill acquired 15 million founding shares. "Thanks to this "raid" (attack), the price of shares of the Northern Pacific society was inflated to almost 1000%. On May 9, 1901, a stock market crisis erupted, thanks to which a large number of small people were ruined, while the main participants, according to Harriman's testimony, did not suffer any losses in this "corner" (scheme)." (184).
"With the further modern development of equity capitalism, the methods by which one can take money from the public to a large extent and transfer it to one's own pockets have become somewhat more refined (p. 186)**. The means for this now serves the continuous foundation and building on top of each other of all new societies, to which one always

1000% and crisis (italics
NB
mine *** italics
Liefmann's **
Note: (italics mine) in the manuscript is added between the lines, above this paragraph, and refers to the spaced-out italics in the first half of this paragraph. Ed.
**** This note refers to the continuous italics (but spaced out) in the second half of this paragraph. Ed.

wieder den gleichen Sachbesitz verkauft oder verpachtet und zwischen denen er so hin und her geschoben wird». (186).

1900 основана Standard Oil Co.
«Ihr autorisiertes Kapital beträgt 150 Millionen $, ausgegeben sind 100 Millionen $ Common & 106 Millionen $ preferred Aktien und es sind darauf von *1900—1907 folgende
NB
| Dividende bezahlt worden: 18, 48, 45, 44, 36, 40, 40, 40%, ganzen 367 Millionen $. Seit 1882 bis Ende 1907 wurden aus 889 Millionen $ erzielten Reingewinns 606 Millionen $ Dividenden verteilt, der Rest den Reserven zugeführt». (212).
NB
(новая техника) 500% дивиденд..

«1907 waren auf sämtlichen Werken der Gesellschaft (стальной трест) nicht weniger als 240.480 Angestellte beschäftigt... (1908—165.211)... Das größte Unternehmen der deutschen Montanindustrie, die Gelsenkirchner Bergwerksgesellschaft hatte 1908 46.048 Angestellte, 1907 43.293». (S. 218)
«Internationale Bohrgesellschaft» (in Erkelenz)... «Sie wurde gegründet behufs Anwendung des von dem Ingenieur Anton Raky erfundenen Bohrverfahrens... (235) ...общество распределило 1905—6 и 1906—7 по 600% дивиденда» (236).
«Im allgemeinen beweist die Erfahrung, dass ein Besitz von zirkа 40% der stimmberechtigten Aktien einer Unternehmung genügt, um in normalen Zeiten die Kontrolle derselben zu haben» (258). А затем есть еще (в Америке особенно) «nicht stimmberechtigte Aktien» (259), да облигации etc.—-а если это акции

LIEFMANN: "SOCIETIES OF PARTICIPATION AND FINANCING"
415 to whom the same inventory property is resold or leased again, and between whom this property, thus, is constantly moving back and forth." (186).
In 1900, the Standard Oil Co. was founded.
"Its authorized capital amounted to 150 million dollars. Common stock worth 100 million dollars and preferred stock worth 106 million dollars were issued. Dividends were paid on the latter as follows: in 1900-1907 48, 48, 45, 44, 36, 40, 40, 40%, a total of 367 million dollars. From 1882 to the end of 1907, net profits of 889 million dollars were received. Of these, 606 million were paid in dividends, and the rest went to the reserve capital." (212).
"In 1907, all enterprises of the company (steel trust) employed no less than 240,480 employees... (1908-165,211)... The largest enterprise of the German mining industry, the Gelsenkirchen Mining Company, had 46,048 employees in 1908 and 43,293 in 1907." (p. 213).
"International Drilling Company (in Erkelenz)"... "It was founded for the purpose of applying the drilling method invented by engineer Anton Raky... (235) ...the company paid out 600% dividends for 1905-6 and 1906-7" (236).
"In general, experience shows that it is sufficient to own about 40% of the voting shares of an enterprise in order to have control over it in one's hands during normal periods" (258). And then there are also (especially in America) "non-voting shares" (259), and bonds, etc.

NB
NB
(new technology)
500% dividend..

416

ha-ha!!
corporation, controlling a number of other corporations, then
"er (the capitalist) kann dann also mit 5
NB
Millionen $ eigenem Besitz ein 40—50 mal so grosses Kapital beherrschen» (259).
...and even ((80-100 mal so grosse» (than he owns) ((Kapitalmassen» (260 ...
«Der Handel in Metallen außer Eisen, insbesondere der in Kupfer und Zink, sowie
in Edelmetallen ist in Deutschland und auch in den wichtigsten anderen Ländern ganz außer
ordentlich konzentriert» (301)*. ... «eine kleine
Anzahl von Firmen» (mostly in private hands,...
...«sehr viele** deutsche Gasanstalten der älteren Zeit von englischen Unternehmungen und
mit englischem Kapital errichtet worden sind»...
(321)...
...«nur verhältnismäßig wenige Leute haben heute eine Virtuosität auf diesem Gebiete er
langt» (335) - in financial matters, etc.
...«Die Schweizerische Kreditanstalt führt auch die Verwaltung derselben («bank for
Electric undertakings» in Zurich), denn die «Bank» ist keine Anstalt, kein Institut,
sondern, wie alle derartigen Gesellschaften, so zu sagen nur eine große Mappe, in der die
Effekten, die sie besitzt, aufbewahrt werden, und ein paar Geschäftsbücher» (376)...
«Allgemeine Elektricitäts Gesellschaft» (A. E. G.) — aktien — 100 Millionen Mark
облигации] — 37
»
»
«Effektenbesitz»...— 23
»
»
etc.

LIEFMANN: "SOCIETIES OF PARTICIPATION AND FINANCING"

t. d. - and if these shares are of a
that with his own capital of 5 million dollars he can command a capital 40-50 times larger" (259).
...and even "80-100 times larger" (than he owns) "capital mass" (260)...
"The trade in metals other than iron, especially the trade in copper and zinc, as well as precious metals, is completely exceptionally concentrated in Germany and in other important countries" (301)*. ..."a small number of firms" (mostly in private hands)...
..."very many** German gas plants of an earlier period were built by English enterprises and with English capital"... (321)...
..."only a relatively few people have now achieved virtuosity in this field" (335) - in financial matters, etc.
..."The Swiss Credit Institution itself manages it ("bank for electrical
Ссылка на страницу книги: «(301)« в рукописи приписана между строк, над словом «концентрирована». Ред.
** В источнике: < т сЬ. Ред.
* The reference to page (301) in the manuscript is written between the lines, above the word "concentrated." Ed.
** In the source: < t ch. Ed.