Date: 1912
Source: ru:LS/v27

Date: 1912
Source: Lenin Miscellany, Volume 27
Pages: 396-476

---

NOTEBOOK
a
PP. 1-39

Liefmann: «Bet[ei]l[igun]g[s-] u[nd] Fin[an]zrierungs]-Ges[ellschaf-
tc'i "»
[1] [402]
N[eue] Z[eit]
1911 (on war NB) and 1912 (among other things about the
United] St[ates] of Eur[ope])
[15] [424]
Finanz-Archiv: 1915
Statistics of emissions
Eggenschwyller
Crohn (about Argentina NB).
Paish.
Mülhaupt: «Milchring».
Unions of k[apitalists] on war.
Crammond: England and G[e]rm[any].
Sale: Japan v[ersu]s England.
LIEFMAUW: «BETEILIGUIVGS- HMD FIN A N ZIE R U N G S-
G E S E L L S C U A F T E ili»
Prof[essor] Dr. Robert Liefmann: «Betei- ligungs- und Finanzierungsges[ellsch]aften». Jena
4 9 0 9. (A Study on Modern Capitalism and Securities). (X-|-495).
[cf[compare] espec[ially] p. // of excerpts)* ((The author is a dyed-in-the-wool fool, like a peddler
fumbling 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 was added in pencil at the top of the page above the book title. Ed.
[
402
]

Neue Zeit 1911 (on war NB) and 1912 (among other things about the United
States of Europe)
[15] [425]
«Finanz-Archiv»: 1915
[21] [435]
Statistics of emissions
[23] [437]
Eggenschwyller
Crohn (about Argentina NB).
Paish.
[25] [443]
Mülhaupt: «Milk Syndicate».
[27] [449]
Unions of capitalists on war.
[31] [459]
Crammond: England and Germany.
[35] [467]
Sale: Japan versus England.
[37] [473]
Liefmann: ((Participation and Financing Societies»
[П [403]
LIEFMANN: «PARTICIPATION AND FINANCING SOCIETIES»
Professor Dr. Robert Liefmann: «Par-
7
ticipation and Financing Societies».
Jena
4 9 0 9. (An Essay on Modern Capitalism and Stock Exchange Operations). (X -{-495).
[compare especially p. // of excerpts] * ((The author is a dyed-in-the-wool fool, like a peddler
fumbling with definitions — utterly stupid — [
403
]

all around the word Substitution. Valuable are the Actual data, m[ostly]
p[art]ly completely raw. Opponent of the labor theory of v[alue]
etc. etc.)).
P. 104—449 «Beschreibender Teil». Theoretical
part =  nonsense *
P. 9: — against Sombart for his following
«ganz im
Fahrwasser» of the l[abor] t[heory] of v[alue] of Ricardo —  M[ar]x.
P. 33: «In Preussen wird
die Zahl der
Besitzer von Aktien ** nur 2% der Bevölkerung betragen». More in Engl[and] and Amer[ica]. «Für
Preussen veranschlagte 1909 der Entwurf eines
Gesellschaftssteuergesctzes den durchschnittli­ chen Aktienbesitz in Preussen auf noch nicht
10.000 Mark. Derselbe würde sich auf ungefähr
7 0 0.0 0 0 P e r s o n e n verteilen. Alle solche
Schätzungen sind aber sehr unsicher» (34).
«Allgemeine statistische Feststellungen über den Umfang, den die Effektifizierung des Kapi­
tals heute angenom[m]en hat, gibt es nicht...
Nach
Philippovich (Grundriss, 7.
Aufl[age ,
S. 164) stellen 40% des englischen Volksvermö­
gens «Wertkapitalien» (d[as] s[ind] Effekten u[nd] Hypotheken) dar. Schmoller (Stat[istischej
Anlagen zu den Stenographischen] Berichten] der
Börsen-Enquete-Komission
1892/3)
berechnete
1892, dass in Preussen zirka 16— 20 Mil[liar]- d[en] Mark, d.
i. z[ir]ka
!/4 des gesamten preussischen Kapitalbesitzes, in Effekten angelegt
seien. Sombart (D[ie] d[eutsche] Volkswirtschaft] im 19. J[ahrhundert], S. 224) nimmt 1900 für
Deutschland einen Effektenbesitz von
31 — 32
* This note («P. 104—4 4 3 »... etc.) is written in the margins on the left
next to the previous remark (in double parentheses). Ed.
** The word «Aktien» («shares») is secondarily added in parentheses at the top
between the lines. Ed. n[umber] of o[wners] of shares

LIEFMANN:
«PARTICIPATION AND FINANCING SOCIETIES»
3 D 5
all around the word "substitution" (replacement).
Valuable are the Actual data, mostly completely raw. Opponent of the labor theory of
value, etc. etc.)).
P. 104— 449 «Descriptive Part».
Theoretical part =  nonsense *
P. 9: — against Sombart for his following «completely in the path» of the labor theory of value of Ricardo —  Marx.
P.
33:
«In
Prussia the number of shareholders** constitutes only 2% of the population».
More in England and America. «In the draft law on the taxation of joint-stock companies in 1909, the
average shareholding in Prussia was estimated at less than 10,000 marks. This amount would
I
constitute approximately the investments of 7 0 0,0 0 0 per-
I
sons. However, all estimates of this kind are very
;
problematic» (34).
|
«General statistical data regarding the volume of development of
stock exchange capital at the present time are not available

According to Philippovich (Outline, 7th ed., p. 164), 40% of English national wealth represents
"capital in securities" (i.e., funds and mortgages). Schmoller (Statistical appendices to the stenographic reports of the stock exchange
commission of inquiry 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 funds. Sombart (The National Economy of Germany in the 19th Century, p. 224) determines for Germany in 1900 fund capital at 31-32 billion marks» (37).
number of shareholders

LENIN MISCELLANY
M[i]l[liar]d[en] Mk an» (37).
«Diese Summe ist heute entschieden zu niedrig u[nd] das in
Effekten verkörperte Kapital Deutschlands mit
40—50 M[i]l[liar]d[en] Mk anzunehmen, was immerhin nur etwa 7 b des au^ 250 M[i]I[liar]-
d[en] Mk zu veranschlagenden Volksvermögens im Deutschen] R[eich] ist». (37).
In America *) 1904— 107 M[illiar]d[en] $ national] i[n]-
c[o]me. Ab[out] 7з — Effektenbesitz. «Für England gibt er*) einen
Effektenbesitz von 26 M[i]l[liar]d[en] $, für Frankreich von 197*
M[illiar]d[cn] $ an. Der Effektenbesitz ganz Europas ist
zirka
75 M[illiar]d[cn] $». (38).
Charles A. Conant: The concentration of Capital in
New York & Those who manage it. «Bankers Magazine». November
1907. (cited] P. 38) \
44:
...«ausserordentliche
Verflechtung aller wirtschaftlichen
Interessen»...
51: «Union» (Aktiengesellschaft für Bergbau etc. in Dortmund)
((about it and Stillich a P. 38 and 4 /))
Found[ed] 1872. «Das
Aktienkapital von fast 40 Millionen] M[ar]k wurde 1872 emit­
tiert, der Kurs stieg auf 1700/ 0> als die Gcs[ellsch]aft für das
This bibliographic 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 added
between the lines, above the words: «and Stillich» ... etc. Ed.
So:

LIEFMANN:
«PARTICIPATION AND FINANCING SOCIETIES» «This sum is decidedly too low today; the capital embodied in funds
in Germany should be assumed to be 45-50 billion marks, which still constitutes only
approximately
% of the national capital
of Germany, estimated at 250 billion marks». (37).
In America *) in 1904 - 107 billion dollars national
income. About 7 3 - fund capital. «For England he *)
indicates fund capital at 26 billion dollars, for France - 19%
billion dollars. The total European fund
capital amounts to about 75 billion dollars». (38).
*) Charles A. Conant: The Concentration of Capital in New
York and Those Who Implement It.
«Bankers Magazine».
NB
November 1907 (cited p. 38) *.
Isaac:
Fund America capital=
England .
=
= France
Germany
35
26
19., 12, 93, billion dollars
> 58.^
I
75
58
difference
17
X 5 =  465 billion Francs
[and Neymark considers 6 0 0]
44: ... «extraordinary interweaving of all economic interests»...
51: «Union» (mining and other joint-stock company in Dortmund) ((about it and Stillich a p. o 8 and 4 /);
Founded in 1872.
«The share capital amounting to almost
40 million marks was issued in 1872; the rate rose
to 170%, when the company paid out for the first operating year
1 7 0 %

1.
Geschäftsjahr 12% Dividende zahlte. Dann aber war es m (12%— 0% )
Dividenden bis 1880 vorbei, u[nd] schon 1875 musste die erste
jener
Sanierungen vorgenommen werden, die seitdem fast in jeder Epoche ungünstiger Konjunktur sich wiederholt haben...
I I Die Hauptleidenden sind jedenfalls die jeweiligen Aktionäre gewe-
II sen».
«Wenn aber auch Gesellschaften nicht mit solchen Zwecken
(«in Effekten spekulieren») gegründet werden, so kommt es doch
jyg vor, dass Unternehmungen mit anderen Zwecken tatsächlich mehr
od[er] weniger ausschliesslich zu Effektenspekulationen übergehen.
Teils kann dies geschehen, weil die Aktionäre sich nicht genügend
j^ß um die Tätigkeit ihrer Direktoren kümmern, teils weil sie darüber
seitens der letzteren getäuscht werden». (67).
71: В разных странах разные типы общ[ест]в преобладают:
В Америке — контроль над друг[ими] общ[ест]в[а]ми.
Герм[ан]ии — общ[ест]ва переема (Uebernahme-)
Фр[анц]ии—  общ[ест]ва помещения к[апита]ла.
Holland («als Rentnerstaat» S. 71) — тоже.
Бельгия — ä 1а Герм[ан]ия.
Англия — общ[ест]ва помещения] к[апита]ла (investment trusts)...
Je id eis:
«Das Verhältnis der deutschen Grossbanken zur
Industrie». L[ei]pz[ig] 1905.
Dr. Riesser: «Zur Entwicklungsgeschichte der deutschen Gross­
banken mit besonderer] Rücks[icht] auf die Konzentrationsbestre­
bungen». 1906.
S. 117 — один из многих примеров владения акциями бель­
гийской «Société genérale» (31. XII. 1906 — акций и облигаций
на 198 милл [ионов] Франков, тьмы общ [ест] в).
пример спеку­ ляции
S. 136— 7. Примерчик:
London & Colonial Finance Corporation «die bei nur £ 21.745
eingezahltcm
Kapital im J[ahre]
1890 einen
Reingewinn von
80.567 £ =  3 7 0°j0 des Kapitals erzielte u[nd] 100% Dividenden
zahlte».

LIEFMANN:
«PARTICIPATION AND FINANCING SOCIETIES»
NB
12% dividend. However, after that, the payment of dividends
ceased until 1880, and already in 1875 one of those sanitation measures had to be undertaken for the first time,
which have since been repeated almost in every period of unfavorable conjuncture... In each case, the shareholders suffered mainly.».
«But even in those cases where joint-stock companies do not set themselves these goals at the time of foundation ("speculation in funds"),
it still happens that enterprises pursuing other goals
actually, to a greater or lesser extent, switch exclusively
to speculation in 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 prevail in different countries:
In America - control over other societies.
In Germany - takeover societies (Übernahme-)
In France - societies for the placement of capital.
Holland ("as a rentier state" p. 71) - also.
Belgium - like Germany.
England - societies for the placement of capital (investment trusts)...
NB
NB
Jeidels:
"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 the many examples of the ownership of shares by the Belgian "Société générale" (31. XII. 1906 - shares and bonds
for 198 million francs, a multitude of societies).
P. 136-7. Example:
The "London & Colonial Finance Corporation" society, "which, with a basic capital of only £21,740, received
example of speculation in 1890 £80,567 of net profit =  3 7 0°10 of capital
and paid 100% dividend."

good example
Society for the placement of capital (Kapitalanlagegesellschaft) —
— <cAktienges[ellsch]aft für rheinisch-westphälische Industrie».
Found[ed] Oct[ober] 4874. (P. 156)
Dividend: 1872 — 35% — 35
NB
1873 — 1883— 0
— 0
1 8 8 4 -1 8 9 5 — 3 — 9%
NB
11896 — 1899 — 10 — 21%
1900
- 6 0 %
60
1901 — 2
— 0
0
1905 — 6
- 4 0 %
40
1907 — 8
— 6 — 4%
36 years:
135
40
40
10
225)
36
216
6
Dr. Emil
Wolff: Die Praxis der Finanzierung etc. B[elr- l[in] 1905.
Francis Cooper: Financing an enterprise. 2 v[o]l[ume]s. N[ew]
Y[ork] 1906.
Edward Carrol. Principles & practice of Finance. 1902. (N[ewl
Y]ork]).
W. Lotz: Die Technik des Emissionsgeschäfts
b Schmollers
J[a]hrb[uch]. 1890. P. 393 ff.
«Mit der Benutzung der Kapitalanlageges[ellsch]aften, um (cdem
kleinen Besitz die Rentabilität der grossen zu verleihen» *), ist es
also nichts (163).
*) J ö r g e n s , P. 45— 6.
NB
P.
6 4:
Der Bankier Louis Hagen in Cöln war AufsichIsrat in 35 Unternehmungen, die
deutsche Bank hatte nach Jcidcls **) ihre
Direktoren als Aufsichtsrätc in 101 Gesell­ schaften, ihre eigenen Aufsichtsrätc in 120
Ges[cllsch]aftcn» (P. 6i).
**) Je id eis: «D[as] Verhältnis d[er] deut­ sch[en] Grossbanken zur Industrie» 1905 *.
* This bibliographic reference («1е1(1е18»... etc.) in the manuscript is given as a footnote at the bottom of p. 6. Here it is brought directly to the place in the text to which it refers. Ed.

LIEFMANN:
"PARTICIPATION AND FINANCING SOCIETIES"
Society for the placement of capital (Kapitalanlagegesellschaft) -
1900
- 6° 7 0
60
1901 - 2
0
0
1905 - 6
0
о
О
1
40
1907 - 8
- 6 - 4%
- "Joint-Stock Company of Rhenish-Westphalian Industry." Founded October 487 4. (p. 156)
Dividend: 1872 - 35%
- 35
1!
NB
1873 - 1883- 0
- 0
1884 - 1 8 9 5 - 3 - 9%
NB
1896 - 1899 - 10 - 21%
36 years:
135
40
40
10
2251
36
216
6
Dr. Emil Wolff: The Practice of Financing, etc. Berlin
1905.
Francis Cooper:
Financing an Enterprise. 2 volumes.
New York 1906.
Edward Carroll.
Principles and Practice of Finance. 1902.
(New York).
W. Lotz: The Technique of Emission Operations. In "Schmollers
Jahrbuch". 1890. P. 393 and following.
"So, with the use of capital investment societies in order to "ensure the profitability of large investments for small investments" *)
nothing came of it" ^163).
*) J ö r g e n s $ p. 45-6.
P.
6 4:
The Cologne banker Louis Hagen was a member of the supervisory board in 35 enterprises; the German bank, according to Jeidels, **)
had its directors as members of supervisory boards in .101 joint-stock
1
society, in addition, its own supervisory boards in 120 societies" (p. 64).
good example
**) Jeidels: "The Relationship of Large German Banks to Industry." 1905 *.

NB
Repeated 5 times 11
Effects are issued many times by different societies for the same value
example (American])... «ihr (these r[ail]-r[oad] soc[ieties]) Sachkapital 5 mal
wieder in dem Effektenkapital der sie direkt od[er] indirekt kontrollierenden Ges[ellsch]aflen
erscheint» (182).
(Ch. A. Conant: The tendencies of modern banking. («Bankers Magazine» 4 90 5)*
1000% and the crisis of the "Northern Pacific" society. Capital
=  80 million $ Stammaktien.
Struggle
Harriman and Hi l Va. Hi l l acquired for ^ 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 Hauptbeteligten nach Harrimans
Angabe keine Verluste bei diesem corner erlit­ ten». (184).
«Mit der modernen Weiterbildung des Effek- tenkapitalismus sind die Verfahren etwas v er­
f e i n e r t (P. 186)** worden, mittels deren man dem Publikum in grossem Masse das Ge l d
a b n e h me n u[nd] es in die eigenen Taschen leiten kann. Das Mittel ist heute die fortgesetzte
Gründung ufnd] das aufeinander Propfen von immer neuen Ges[ellsch]aften, an die man immer
* The bibliographic reference given here in parentheses
in the manuscript is given at the end of page 6, between the previous German text
(between the words "sie" and "direkt"). Ed.
** Reference: "(P. 186)" in the manuscript is added between the lines, above the word
" v er f e i n e r t". Ed.
(italics mine) ***
NB
italics
LiFm[ann's]***

LIEFMANN:
"PARTICIPATION AND FINANCING SOCIETIES"
Effects are issued many times by different societies for the same value
example (American)... "their (these railroad societies) inventory capital 5 times
5 times reappears in the fund capital of the societies
repeated I!
under the direct or indirect control of which they are located" (182).
(Ch. A. Conant: Tendencies of Modern Banking ("Bankers Magazine" 4 90 5)
"Northern
Pacific" society.
Capital
=  80 million dollars of founding shares. Struggle between Harriman and Hill. Hill
acquired for
15 million founding shares.
"Thanks to this "raid" (attack)
the price of shares in the Northern Pacific society was inflated almost
to
1000%. ..
9. Y. 1901
a stock exchange 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" (manipulation)."
(184).
"With the further modern development of fund capital, the methods by which one can take money from the public to a significant extent and transfer it
into one's own pockets have become somewhat more refined (p. 186)**. The means
for this is now the continuous foundation and grafting onto each other of ever new societies,
1OO0% and crisis (italics
NB
mine *** italics
LiFmann's **
Note: a(italics mine)" in the manuscript is added between the lines, above
the given paragraph, and refers to the italic spacing in the first half
of this paragraph. Ed.
**** This note refers to the solid italics (but with spacing)
in the second half of this paragraph. Ed.

wieder den gleichen Sachbesitz verkauft oder verpachtet u[nd] zwischen denen er so hin und
her geschoben wird». (186).
8
1900 осн[ована] Standard Oil Co.
«Ihr autorisiertes Kapital beträgt 150 Mil­ lionen] $, ausgegeben sind 100 Millionen] g
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
(new technique)
50 0% d[ividen]d..
9
«1907 waren auf sämtlichen Werken der
Ges[ellsch]aft (стальной трест) nicht weniger als 2 4 0. 480 Angestellte beschäftigt... (1908—
165.211)... Das grösste Unternehmen der deut­ schen Montanindustrie, die Gelsenkirchner Berg-
werksges[ellsch]aft hatte
1908 46.048
Ange­ stellte, 1907 43.293». (P. 218)
«Internationale Bohrges[ellsch]aft» (in Erke­ lenz)... «Sie wurde gegründet behufs Anwen­
dung des von dem Ingenieur Anton Raky erfun­ denen Bohrverfahrens...
(235)
.. .общ[ест]во verteilte 1905—6 u[nd] 1906— 7 je ÔOQOjo Divi­
dende» (236).
«Im allgemeinen beweist die
Erfahrung, dass ein Besitz von z[irk]a 40% der stimmbe­
rechtigten Aktien einer Unternehmung genügt, um in normalen Zeiten die Kontrolle derselben
zu haben» (258). А затем есть еще (в Амер[ике] особ[енно]) «nicht
stimmberechtigte
Aktien» (259), да облигации etc.—-а если это акции

LIEFMANN:
"PARTICIPATION AND FINANCING SOCIETIES"
4 ] 5 to which the same inventory property is resold or leased, and
between which this property is, thus, constantly moved back and forth." (186).
In 1900, Standard Oil Co. was founded.
"Its authorized capital amounted to 150 million dollars. Ordinary
shares for 100 million dollars and preferred shares for 106 million dollars were issued. On
these latter, the following dividends were paid: in
1900-1907 48, 48, 45, 44, 36, 40, 40, 40%, a total of 367 million dollars. From 1882 to
the end of 1907, a net profit of 889 million dollars was received. Of these, 606 million were paid out in dividends, and the rest went to the reserve capital." (212).
"In 1907, no fewer than 2 4 0. 480 employees were employed at all the enterprises of the society (steel trust)... (1908-165.211)...
The largest enterprise in the German mining industry, the Gelsenkirchen Mining Society,
had in
1908 46.048 employees, in 1907 - 43.293." (p. 213).
"International Drilling Society" (in Erkelenz)... "It was founded for the purpose of applying the drilling method invented by the engineer Anton Raky...
(235)
.. .the society distributed 1905-6 and 1906-7 ÔOQOjo Divi-
dende each" (236).
"In general, experience proves that ownership of approximately 40% of the voting shares of an enterprise is sufficient to have control of it in normal times" (258). And then there are also (especially in America) "non-
voting
shares" (259), and bonds, etc. - and if these are shares