The Julesburg grit-advocate., 1910-10-13

HE Societe de Monaco 70 one
OF those interesting proposi-
tions. just 10 far hidden by cir
cumstances nom the public
gaze that. though nine men out
Of ten IN the other places would prob
ably - aware of its existence. only
one out of ten would in all probability
havs anything better than the haxiest
idea Of It's financial position and pros
poets. or could even give approximate
" the current quotation of its shares.
Yet its prosperity depends to the
very largest extent upon its British
customers. who 60 to break the bank
1t Monte Carlo"-so much 70 that. on
. sood French authority. the Banque
Henry Dupont Of Paris. the outbreak
Of the war In the Transvaal brought
down its dividend In 1899-190O from
276 francs to 22O francs . share: its
continuance the following year re-
duced II still further to 80 francs:
its after consequences kept 1t down to
225 francs during 1901 OF and 1902-03.
and 1t was only in 10000 that 1t dsa-
nitely rsgained its> lost way" and the
dividend amounted to 2S5 francs.
In the middle Of the last century the
principally Of Monaco had an area Of
135 square kilometers. when. to avert
the consequences of an insurrection-
ary movement the prince Of Monaco
sold all his territory to France. save
ono and onehalf square kilometers, on
which Monaco and Monte Carlo now
stand, for 100000 francs. The bulk
Of the revenue Of the principality hav-
ing disappeared with It's taxpayers.
the prince adopted the plan then in
force in several German states Of raj
sing revenue by means Of . gambling
casino. and the Societe de Monaco was
formed for this purpose In 1868.
Its success was but moderate, until
It secured the services of M. Blanc.
. past master in the art Of conducting
this particular form of business. By
1871 1t had gained such a footing that
the prince was able to abolish all tar
alton in the principally. The prohi-
bition In Germany of roulette and
trente-et-quarante on January 1, 1873,
transferred the German gambling
clientele to Monte Carlo and confirmed
the success Of the Morocco company.
This success. though subject to GER
tain fluctuations. on the whole has
been very great ever since. The COM
pany was capitalized from the CON-
mencement at 30.OO0.000 francs. in co.
900 shares Of 500 francs each. and in
this share capital has never been In
creased since, but in 1899 power was
obtained from the shareholders to
split the shares into fifths-1OO francs
normal-which has been done to a Ger.
tain extent. and the "ffths" are quoted
as well as the full share in the Marche
en- banque Of the Paris bourse. A de-
benture issue Of 100000 francs in
300 franc bonds bearing four per cent.
interest net was authorized in 1898,
the redemption to be effected by an.
nual drawings terminating In 194S. In
1898 $4,000 Of these bonds were sold
to the public at 240-a very con sider-
able discount. and in 1905 $4,000 more
were marketed at 265. They are now
quoted en- banque in the neighborhood
of 3O5. and there are still 26.7OO un.
Issued.
The company is based. Of course, on
a concession granted by the prince Of
Monaco to conduct the gaming casino
on certain terms of a period Of so
years, from 1863 to 1913; but In 1898
this term was prolonged by the prince
to 194s. on the company's pledging it.
self to pay In cash to the government
of the principality 100000 francs
Immediately and 100000 francs in
1873 to execute certain public works
valued at 100000 francs. construct
new theater for 100000 francs and
pay $4,000 francs for every perform.
ance to go toward the chief actors
salaries.
A second prolongation till April 1,
1858, took place last November. the
additional burdens assumed by the
company being to pay the prince Of
Monaco three per cent. of the gross
annual receipts till 194s. and from
1913 to 1858 a. much as eight per
cent; to construct q road from Mo-
naco to Nice. at cost Of 100000
francs; to supply gas throughout the
principality at Is centimes the cubic
meter, and to appropriate 100000
francs annually to an employees pen.
sion guarantee fund.
From this 1t will be seen that the
new charges which will press upon
the company for the next few years
and will have to be allowed for in ma
king any calculations as to likelihood