The herald-advance. (Milbank, S.D.) 1890-1922, 1910-10-14

or thOSe interesting PROPOSE
tions, just so far hidden by cir
cumstances from the public
gaze that, though nine men out
Of ten IN the other places would prob
ably be aware Of its existence, only
one out of ten would in all probability
have anything better than the haziest
idea of its financial position and pros
poets or could even give approximate
ly the current quotation of it's shares.
Yet it's prosperity depends to the
very largest extent upon its British
customers, who go to break the bank
at Monte Carlo"-so much SO that, on
a good French authority the Banque
Henry Dupont of Paris, the outbreak
of the war in the Transvaal brought
down it's dividend in 1S99l900 from
275 francs to 220 francs a share; it's
continuance the following year re-
duced it still further to 210 francs;
its after consequences kept it down to
225 francs during 1901-02 and 1902-03,
and it was only in 10000 that it def
nitely regained it's lost way and the
dividend amounted to 295 francs.
In the middle of the last century the
principality Of Monaco had an area of
1875 square kilometers, when, to avert
the consequences of an insurrection-
ary movement, the prince Of Monaco
sold all his territory to France, save
one and one-half square kilometers, on
which Monaco and Monte Carlo now
stand, for 100000 francs. The bulk
- -. bo,
ing disappeared with its 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 1863.
Its success was but moderate, until
it secured the services Of NJ Blanc,
past master in the art of conducting
this particular form Of business. BY
1871 it had gained such footing that
the prince was able to abolish all tax
alton in the principally. The prohi
btion in Germany Of roulette and
trente-et-quarante on January /, 1873,
transferred the German gambling
clientele to Monte Carlo and confirmed
This success, though subject to Ger
tain fluctuations. on the whole has
been very great ever since. The com
pany was capitalized from the com
mencement at 80, 100000 francs. in CO.
600 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 ffths-100 francs
normal-which has been done to GER
tain extent, and the "fifths" are quoted
as well as the full share in the Marche
en- banoue of the Paris bourse A de-
benture issue of 43,000.0 900 francs in
500 franc bonds bearing four per cent
interest net was authorized in 1898,
the redemption to be effected by an
nual drawings terminating in 1948 Iii
1898 $4,000 Of these bonds were sold
to the public al 240-a very consider
able discount, and in 1905 $4,000 more
were marketed at 2G5 They are now
quoted en- banque In the neighborhood
Of 305, and there are still 26,100 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 period of so
years, from 1868 to 1913 but in 1898
this term was prolonged by the prince
to 1948, on the company's pledging It,
self to pay in cash to the government
Of the principality 10,000,000 francs
Immediately and 100000 francs in
1913: to execute certain public works
valued at 100000 francs, construct a
new theater for 100000 francs and
pay $4,000 francs for every perform
ance to go toward the chief actors
salaries.
second prolongation till April l,
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
1948 to 1853 as much as eight per
cent: to construct road from Mo
naco to Nice, at a 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 it 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