COLUMBIA UNIVERSITY

the work of columbia university during the period 1910-25 was greatly extended. a school of journalism was founded in 1912, a school of business in 1915, aschool of dentistry in 1917 and a schoo] of library service in 1926. the degrees of doctor juris (j.d.) and bachelor of sci- ence in engineering were established in 1923. by agreement with the presbyterian hospital the university will rebuild the school of medicine on property adjoining the new hospital buildings as the nucleus of a great medical centre. in co-operation with the min- istry of education in porto rico the university in 1924 assumed responsibility for educational and scientific work of the school of tropical medicine on the island of porto rico. three research institutes have been organised—the institute of educational research, the institute of cancer research and the institute of public health. in order to render the largest possible service to the community, courses in university extension were organ- ised for men and women who could give only a portion of their time to study, but who desired to pursue subjects included in a liberal education. these courses, as such, do not lead to degrees, but may be offered as credit toward a degree under one of the facul- ties. under university extension there was organised also an institute of arts and sciences which conducted a series of lectures 688 and recitals of a popular nature, as well as a system of courses for home study for persons unable to attend classes in the univer- sity. these courses also do not lead to academic credit or degrees. women are admitted by all faculties of the university with the exception of those of law and applied science. during the period 1910-26 the physical equipment of the university was greatly increased by the addition of kent hall, philosophy hall, the president’s house, avery [iall, school of journalism, furnald hall, crocker research laboratory, school of business, russell hall, barnard ilall, faculty house, physics research laborato- ries, an additional wing to havemeyer hall and four faculty residential halls and john jay hall. the university has acquired by gift of gco. f. baker 28 ac. of and at the upper end of man- hattan i. for use as an athletic ficld. in 1924 there were in co- lumbia university in all departments 2,000 instructors and admin- istrative officers, and in the twelve months ending june 30 1925 were enrolled 34,845 students. of these, roughly one-third were registered in the 1924 summer session; one-third in the degrce- granting schools and facultics during the academic year 1924-5; and one-third in university extension during the academic year 1924-5. the productive endowment of the university, including the endowments of teachers college, barnard college and the college of pharmacy, amounted in 1924 to $57,456,803, which, added to the property occupied for educational purposes, mace a total capital investment of $93,162,938. to meet the increased costs of education, the fees in the several schools were raised so that they ranged in 1925 from $300 to $500. the alumni of the university were given a definite part in the government of the institution by an agreement under which 6 of the 24 trustees were elected on alumni nomination. in 1912 the corporate title of the university was changed from the “ trustees of columbia college in the city of new york ” to the “ trustees of columbia university in the city of new york.” the university took an active part in the world war. immedi- ately upon the severance of diplomatic relations with germany in feb. 1917, it placed its resources, both physical and intellec- tual, at the service of the government. there were established at the university, schools for training men for both the army and the navy, including work in radio, photography, quartermaster’s routine, explosives, gas-engines, submarine detection and the students army training corps, which prepared men for the various officers’ training camps of both armed services. students, faculty and alumni to the number of 4,125 were enlisted in the army and navy, and 2,175 left their previous occupations and assisted the govt. in some one of the civilian branches. two hundred columbia men died in the war. (n. m. b.) columbus, 0o., u.s. (see 6.746), increased in population 30°6% in the decade after 1910, reaching 237,031 in 1920, of whom 22,181 were negroes (an increase of 74-1 %o due to migration from the south) and 16,187 foreign-born (a slight decrease). in 1925 the census burcau estimate was 279,836. the area was 13,018 ac. in lqoi0, 14,427 in 1920, 22,705 in 1925. the factories within the city limits had an output valued at $49,032,000 in 1go9, $184,- 022,000 in 1919, $186,842,798 in 1923; and an average force of 16,428 employees in 1909, 26,751 in 1919, 27,618 in 1923. in the foods of 1913 about roo lives were lost, three bridges were destroyed, over 4,000 dwellings were flooded and some 20,000 persons were temporarily homeless. flood-protection works undertaken to prevent a recurrence of such losses involved! a widening of the channel of the scioto, building revetments and reconstructing three bridges in addition to replacing the three that were destroyed. columbus took advantage of the home rule amendment (1912) to the state constitution, adopting a new charter which, taking effect on jan. 5 1916, provided for a mayor as executive, a legislative council of seven elected at large, a non-partisan ballot, preferential voting, the recall of elected oflicials and the referendum. a city planning commis- sion was created in 1920; a zoning ordinance was adopted in 1923. ambitious plans were made for 2 civic centre on the scioto river, embracing two of the new concrete bridges, the central ngh school on the west side of the river, completed in 1925, a new columbus—commerci, department of city hall to replace the one destroyed by fire in 1921, a masonic temple (site acquired), an oddfellows’ temple and the proposed building of the city federation of women’s clubs. the city’s water supply was greatly increased by the construction of the o'shaughnessy dam (1922-4) to impound 5,000,000,000 gal. in a reservoir covering 8co acres. one of the three general re- serve depdets of the u.s. army is located in east columbus on a government reservation of 281 acres. the warehouses, built in 1918, have a floor area of 2,406,334 sq. ft., and the supplies stored in them (1924) represented a value of $150,000,000. norton aviation field was established near by in 1923. in 1922 colum- bus barracks was chosen as headquarters of the v. corps area of the army, and later was renamed fort hayes. ohio state university had a registration of 9,002 students in the autumn of 1925. its magnificent horseshoe stadium, which covers 10 ac. and has permanent seats for 62,120, was opened in 1922. colyn, hendrick (1869- ), dutch politician, was born june 22 1869 at haarlemmer meer, holland. after serving as a government official in the dutch east indies, he returned to holland in 1909 and became a member of the second chamber. irom roi to 1913 he was minister for war. in 1914 he ieft politics and became manager of the batavian oil co., a position which he held until ror9. from 1919 until 1922 he was managing director of the asiatic petroleum co. and director of the royal dutch shell and anglo-saxon companies. in 1922, after the death of abraham kuyper, colyn returned to political life as leader of the anti-revolutionary party. he became minister of finance in 1923, and retained this portfolio in the new cabinet formed by him in 1925 and which resigned after a few months. colyn, who is a sound business man, contributed much toward the balancing of the netherlands budget after the world war. combes, emile (1835-1921), french statesman (see 6.751), was one of the five elder statesmen in the briand ministry of 1915-6, but without portfolio. he died may 25 1921. combine: see trusts. combing: sce textile maciiinery. commerce, department of, one of the executive depart- ments of the u.s. government. it succeeded the earlier dept. of commerce and labour by an act of congress, approved march 4 1913, which also created a separate and independent dept. of labour (see labour, department of). the secretary of com- merce is a member of the president’s cabinet but is not in line of succession to the presidency. it is his duty to promote the commerce, domestic and foreign, of the united states. there is also an assistant secretary and a solicitor, the latter acting as legal adviser to the secretary and to the heads of the various bureaux of the department. as originally organised there were nine bureaux, as follows: (1) the bureau of the census, charged with the collection of data con- cerning population, agriculture, manufacture, mining ctc.; (2) the bureau of foreign and domestic commerce, for the collection and diffusion of information of use to the manufacturer and exporter; (3) the coast and geodetic survey, for charting coast waters and sur- veying rivers to the head of tidewater or ship navigation and for making deep-sea soundings, magnetic observations, etc.; (4) the bureau of fisheries, for regulating and conserving fisheries; (§) the lighthouse service, in charge of the aids to navigation on all u.s. territory, except panama and the philippines: (6) the bureau of navigation, having general superintendence of the commercial ma- rine and merchant seamen, and the enforcement of navigation laws; (7) the steamship inspection service, which inspects stcam vessels for the purpose of ensuring safety at sea, and issues licences to mas- ters, mates, pilots and engineers of the merchant marine; (8) the bureau of standards, for determining all american measurements; and (g) the bureau of corporations, “the last-mentioned bureau, on march 16 1915, was transferred to, and merged with, the federal ‘trade commission (see federal trade commission). in 1925 two bureaux were added, being transferred from the dept. of the interior by order of the president: the bureau of mines, which investigatcs scientific and economic problems in the mining, metallurgical and quarrying industries; and the patent office, which issues letters patent, including designs, and registers trade-marks and commercial prints and labels under the copyright law. because of the importance to manufacturers, there had long been agitation among various commercial organisations of the united states for the creation of a governmental department for promoting commercial interests; but it was not until 1903 that a bill establishing commercial education the dept. of commerce and labour was passed by congress; it was approved by president roosevelt, feb. 14. for the next 10 years the joint interests of labour and capital were entrusted to this depart- ment. the arrangement proved unsatisfactory because of the fre- quent conflict of these interests, and, in 1913, an independent dept. of labour was created, the name of the dept. of commerce and labour being changed to dept. of commerce. commercial education.—the history of commercial education is rather a chequered one. on the whole, much has been done, but done piecemeal, and no adequate general plan has been made to grapple with the problem, because the state has been slow to concern itsclf with it, as with elementary, secondary and even technical education. commercial educa- tion, when recognised at all, has frequently been looked on as a sort of poor relation of the latter. i. in great britain the institute—the beginnings of public commercial educa- tion in england may be largely ascribed to the activities of the mechanics’ institutes in the early and middle periods of the 1oth century, in which evening classes in both bookkeeping and languages gradually grew up. these were succeeded by technical institutes, such as the birmingham and midland institute and the manchester high school of commerce. in fact, up to 1890, and even later, the north of england and the midlands were, as regards commercial education, in advance of london and the rest of the country. in 1890 the school board gained the right to undertake evening work. this ultimately led to the country being covered with a network of evening schools. the work at first was of a rather elementary nature, consisting of bookkeeping, shorthand, typewriting, english and often french. the technical education act likewise gave a considerable impetus to the spread of commercial education in polytechnics and similar institutions. still the movement had to face a good deal of opposition, or at least inertia, mainly from the widespread belief, which has not yet entirely disappeared and which is based on a half-truth, that commerce is best learned in the shop and the counting- house. again, there was a good deal of muddle-headed thinking on the subject. mr. sidney webb, who was one of the first to clarify public opinion on the subject, pointed out in a london conference held at the society of arts in 1897 that the term com- merce covered a multitude of things—a vast number of distinct callings, from accountancy and banking to typewriting. it therefore involyed an education of very varying degree, from elementary to university. universities —mr. sidney webb was largely responsible for the creation in 1895 of the london school of economics and political science as an institute for higher commercial work. beginning largely as a college for evening work, it subsequently developed a flourishing day side, and became a school of london university. further developments in the course of higher edu- cation were the creation of faculties of commerce in the univer- sity of birmingham (1900) and the re-constituted university of manchester (1904), while london in 1917 established a bachclor- ship and mastership of commerce. a commercial degree can also be obtained at newcastle (university of durham) and at liver- pool a b.a. is awarded for proficiency in certain commercial subjects. economics figure as a prominent subject in the syllabus of other universities, but are taught mainly on theoretical lines, and no degree in commerce is obtainable. probably the most complete choice of subjects for commercial study is offered by the london school of economics and political science, amount- ing to nearly 270 courses given by some so lecturers and assist- ants. more than half of its departments are concerned wholly or partially with commerce. the school prepares for the bache- lor of commerce and master of commerce, and provides for research work schools of commerce —bcelow the universities come the various day schools of commerce, often forming a section or department of a technical institute. the age of entry is generally 16, and some prepare for the bachelorship of commerce. such are, for 689 instance, the city of london college, the regent street poly- technic higher school of commerce, the west ham technical institute, with its course in commerce (three years), the man- chester municipal high school of commerce. there are also junior commercial schools, where the age of entry is usually 13 and the course is two years (occasionally three). such schools (zenerally forming part of a technical institute) are to be found at chatham, blackburn, southport, wigan and other places. secondary schools.—certain secondary schools, like hackney downs and holloway (london), prepare their students for degrees in commerce, while at least one of the public schools (bradfield) has a definite commercial section. a large number of girls’ secondary schools also do commercial work, which in many cases ts confined to pupils who have passed the first school ex- amination. in others it is begun by pupils of 15 who desire to specialise in commerce. typewriting, shorthand and book- keeping, with commercial french, history and geography, are the staple subjects. higher elementary schools up to 1908 the curricula of the higher elementary schools were based on lines giving a general education. in that year, the london schools of this type were reorganised with a dual bias, commercial and technical, and renamed central—a school might have one or both sections. the london central school largely became the model for other central schools for the rest of the country. in the voluntary day continuation school, the teaching, which at the outset was general, became, in london at least, largely commercial. evening work.—some evening work in the london school of economics and elsewhere is of university standard. below this ranks the work of the evening schools, many of which, especially in the country, are situated in technical institutes, notable exam- ples being the manchester and birmingham municipal schools of commerce, the hull central school of commerce, the bradford commercial college, the city of london college and the 24 london evening institutes. the range of work is considerable, and, apart from typewriting, shorthand and bookkeeping, inclu.jes preparation for examinations in accountancy of all kinds, banking, insurance (life, fire, marine), railway administration, civil service (post-office, inland revenue, customs and excise), courses for solicitors’ or stockbrokers’ clerks, for secretaries or grocers’ assistants, this involves classes in eco- nomics, including economic history and geozraphy, and the econom- ics of shipping, railways, ctc.; the theory and practice of commerce, banking, currency, foreign exchanges, statistics, the machinery of business secretarial practice, knowledge of commodities, law of all kinds—general, conveyancing, banking, company, commercia!}, mercantile, marine, joint stock, income tax, etc. ‘the teaching in languages comprises french, german, spanish, italian, iesperanto and other iess known languages. again, by the course system, all students under 18 who have not had a good second- ary or central school education are obliged to take a course in which a language often forms a part. students enter the institutes at six- teen. below these are the junior institutes, usually entered at 14, where all the pupils are obliged to take a course. in some of these, irrench is taught. they are generally aliiliated to senior institutes. private initiative—there also exist a number of schools at- tached to big business houses, as well as many private institu- tions, which prepare mainly for the lower and intermediate walks of commerce and the civil service, such, for instance, as pitman’s and clark’s colleges. two hundred thousand your g people had successfully passed through the latter up to 1926, while pitman’s trains over 10,000 students a year. examinations.—in addition to the examinations mentioned above, and some higher commercial certificates, a jarge number of students in the evening institutes and elsewhere take the examination of the society of arts, the chamber of commerce and other societies. the society of arts held its first practical examination in 1856, and among the subjects were french and bookkeeping. the candidates, mainly drawn from mechanics’ institutes, numbered 56. in 1925, the number of papers worked was over 70,000. the london chamber of commerce, which began in 1890 with 65 candidates and 17 passes (all junior), had, in 1925, 22,114 candidates, with 12,159 passes. since its inception, 246,346 candidates have entered for its examinations, and 129,333 have passed. (c. bre.) 690 ii. in the united states the agencies which provide for the training of those who enter upon commercial vocations are public secondary schools, private business colleges, correspondence schools, corporation schools and colleges of commerce. private institutions —the oldest of these institutions is the private business college. in 1910 the number of persons regis- tered in such institutions was 134,778; in rors this number had increased to 183,286; and, in 1920, the number was estimated to be somewhat more than 300,000. the private business school flourishes because it usually gives shorter courses than the public high school, and because it makes provision for individual stu- dents by allowing each one to progress as rapidly as he can, and by assuming more responsibility for securing positions for gradu- ates at the end of the course. public high schools—the number of commercial courses given in public high schools has increased rapidly in recent years. in 1922 there were 191,901 pupils in public high schools taking shorthand and 281,524 taking typewriting. in addition there were pupils taking courses in commercial arithmetic, com- mercial law, commercial geography and other commercial sub- jects. there are no reliable statistics earlicr than 1922 to show the rate of increase in these subjects, but two indications are to be found in the following facts: in 1915 there were 39,816 pupils registered in book-keeping; this was 3:42% of the total number of pupils registered in these schools. in 1922 the registrations in book-keeping were 270,517, or 12-55%, of the total high-school population. in 1911 a survey made by the city club of chicago showed that as much money was being paid to private business colleges in that city, in the form of student tuitions, as the city was pay- ing for the maintenance of all its public high schools. these findings led to the rapid development of high-school courses in commercial subjects. what happened in chicago is paralleled in all parts of the country. the competition of the private in- stitutions has led the public high school not only to introduce commercial courses, but also to attempt to give the training necessary for entrance on practical positions in as short a period and as early in life as possible. the result is that there are in many high schools two-years’ commercial courses. in some cases the experiment has been tried of offering commercial courses to pupils in their seventh and eighth school years. the experi- ment has, however, in general proved unsuccessful, because pupils at this stage are not sufficiently trained in fundamentals to make them mature enough for practical positions. there are two methods of providing commercial courses in public high schools. in some cities separate schools called com- mercial high schools are organised; in others commercial courses are conducted as electives in a general high school. the quality of the students who take commercial courses has improved in recent years. in earlier years only students incompetent in other lines were usually to be found in these courses. the quality of the teaching staff is often inferior. until very recently there have been no higher institutions which give advanced courses, and teachers were recruited from private business colleges or selected from among the secretaries who wished to withdraw from business. universities and colleges—a number of universities and colleges have set up business divisions. the first institution of this type in the united states was the wharton school of fi- nance and economy of the university of pennsylvania, founded in 1881. there were 22 such schools in 1921, a number of them giving graduate courses. the student registration in these schools is estimated at 20,000. corporation schools—the corporation commercial schools are of various types according to the needs of the concerns which organise them. in retail stores there are schools for the training of salesmen and saleswomen; in insurance companies there are schools for salesmen and managers; in banks and houses with large accounting departments there are schools for office em- ployees; and so on. the range of subjects covered in these corporation schools and the time given to instruction have commercial treaties steadily increased in recent years under the stimulation of busi- ness competition. courses similar to those given in the institutions described in foregoing paragraphs are made available to a great many persons through correspondence courses and night sessions of high schools. by these means persons who are regularly employed may take courses during unoccupied hours. it is estimated that 38,495 persons were pursuing correspondence courses in 1922, and 842,863 were registered in city evening schools. (c. h. j.) commercial treaties.—down to the outbreak of the world war of 1914, almost all states in the world were linked to- gether by a close network of commercial treaties, by means of which the need of each country for customs revenue and for pro- tection of its products could be reconciled with the ever-increasing need for expansion of foreign markets resulting from the growth of industrialisation. the war made a serious breach in this development. it is true it did not alter the basic principles of the policy of concluding commercial treaties, but it brought financial and protectionist interests so strongly into the foreground that the interest in international trade was extraordinarily restricted and is only now beginning to receive greater recognition. two forms are characteristic for ali modern commercial treaties: tariff rates and the most-favoured-nation clause. by tariff rates are meant the concessions in the rates of the customs tariffs on both sides. treaties which embrace both forms are called tariff-treaties and are preferred by states which carry on a very active commerce with one another. by far the greatest number of all commercial treaties are restricted to the most-favoured-nation (m.i’.n.) clause; they are called most-favoured-nation treaties, for, al- though the first type also include m.f.n. treatment, this is sub- ordinated to the tariff rates which constitute their chief feature. treaties of a different type, merely comprising tariff rates with- out m.if°.n. treatment, were of rare occurrence and were mostly a survival of an earlier period. afost-favoured-nation clause —m.f.n. treatment secures to the ireaty state equality of position with those foreign countries which receive most favourable treatment. in the form in which it has developed since the year 1860, it secures for this state not merely all the privileges which any other state has received in the past and still enjoys, but also those which it will receive in future, and moreover immediately and without additional compensation. there is, it 1s true, a still more favourable treatment than the foreign parity given by the m.f.n. clause, namely inland parity or national treatment, which places the persons and goods of the country concerned on an equality, not with those of other foreign countries, but with those of the nationals of the country itself; but its sphere of application is a different and at the same time a more limited one. by its nature it only applies to such economic measures as are not confined to foreign goods and persons, such as import duties, admission of consuls, etc., but may affect both domestic and foreign goods and persons, so that discrimination in their treat- ment would constitute a new and arbitrary protection for the home country, e.g., taxes on consumption, admission to trade and settlement, conditions for the use of railways and roads, etc. in oriental countries in which foreigners received special privileges, it sometimes occurred that the foreign parity was more favour- able than the inland parity. reciprocity, by virtue of which a favour is only accorded to the treaty state in return for an equiva- jent compensation, is jess favourable than m.i°.n. treatment or foreign parity. this principle was to be found in many commer- cial treaties down to the middle of the 19th century and still exists in later commercial treaties, in cases where it is a matter not merely of a passive permission, but of an active intervention on the part of the state, e.g., the admission of joint-stock com- panies, privileges for commercial travellers, the granting of benefits of workers’ insurance, etc. there are several varieties of m.f.n. treatment. the uncondi- tional is to-day the most common, but the conditional is also to be found, by virtue of which the treaty state has a right to a privilege granted to another country if it was given without compensation, commercial treaties but can only secure it for an equivalent compensation if this priv- ilege has been acquired by the other country as a result of a con- cession on its part. this latter form is distinguished from reciprocity by the fact that it contains an obligation to grant equality of posi- tion when the necessary condition is fulfilled, which is not the case with reciprocity. unconditional m.f.n. treatment has, it is true, the disadvantages (1) that it diminishes the value of every conces- sion, because the area to which this applies is extended, (2) that it hinders a concession to one treaty state because this would sub- sequently benefit automatically a stronger competitor, (3) that by adapting the concession to the special conditions of the treaty state, its extension to the other most favoured countries can in practice be excluded. it has, however, the great merit that it guarantees to the treaty state equal competitive conditions in the territory of the other for the whole period of the treaty and greatly facilitates the con- clusion of commercial treaties. conditional m.f.n. treatment involves fresh negotiations with tne other states on the conclusion of each tariff treaty, and may give rise to technical and political difficulties which may endanger the whole treaty structure. the post-war period has brought about an interesting and characteristic change; while the united states in contrast to the european countries maintained before the war con- ditional m.f.n. treatment which, by its nature, is relatively un- favourable to the treaty method, they have gone over in the latest commercial treaties, e.g., the treaty with germany of dec. 8 1923, to unconditional m.f.n. treatment. this change is attributable to an alteration in their commercial interests. formerly they supplied mainly raw materials (cotton, copper, etc.), which the european states needed urgently for industries, while they constituted an im- portant market for european manufactures and therefore were ina strong position when treaties were negotiated. now, however, the export interests of their industries have come into greater prominence and demand a modification of their foreign commercial relations. on the other hand, france, which before the war had not favoured the treaty method, is now contemplating, in accordance with the law of july 20 1919, the conclusion of commercial treaties in which reciprocal tariff concessions are granted, and has thus in theory returned to the principle of reciprocity. this policy has, it is true, been substantially modified in practice, for she has not merely allowed the former m.f.n. treaties to continue in force, but has also adopted m.f.n. treatment in newly concluded com- mercial treaties, though subject to considerable restrictions. m.f.n. treatment as a rule binds both contracting parties to reciprocal treatment, but this is not a necessary condition, for in the treaties with countries in the east it only applies unilaterally in favour of the european states. the victorious states also chose the unilateral form for the peace treaties of 1919, but only for a periocl of five years; the council of the league of nations has mace no use of the power granted to it to extend the application of this clause. in many commercial treaties of the former enemy states, the limitation was already set asile at an earlier date. m.f.n. treatment can, however, be restricted not only in its form, but also in its contents. in its widest scope it covers all matters of trade and shipping, but in all cases it applies to the customs tariff and customs procedure, in the post-war period some states have restricted it to certain customs items or parts of the customs tariff. on the other hand, the commercial treaty between england and germany concluded on dec. 2 1924 contains reciprocal, uncondi- tional, unlimited m.f.n. treatment. tariff systems.—tariff treaties depend largely on the tariff system which is at the basis of the tariffs of the treaty states. we can distinguish the single-line tariff, which has only one tax for each article for all countries, from the double tariff which consists of two columns of tariff rates of which the one with the lower rates is applicable to the most favoured countries, and the other with the higher rates to remaining countries. depending on the origin of the lower column, the double tariff can be a general-conventional tariff in which only the higher general tariff is fixed by an autonomous law of the country concerned, while the conventional tariff is composed of the concessions or binding rates granted to other countries by commercial treaties. by a binding rate is meant the transfer of a tariff rate from the gencral tariff to the conventional tariff at the same figure, in order to secure its application for the whole period of the treaty, since an autonomous tariff can at any time be modified by the country concerned, by a new law. the double tariff can, how- ever, also be a maximum-minimum tariff, in which the column with the lower rate is also fixed by autonomous legislation and therefore provides the limit to which tariff concessions can be granted to foreign countries. the single-line tariff which great britain and some countries of northern europe have applied, necessarily involves m.f.n. treatment because it leaves no room for tariff concessions, but 691 there is the possibility, of which belgium has taken advantage, of granting tariff concessions by commercial treaties which are then taken over into the single-line tariff and thereby extended to all countries, whether or no they have granted m.f.n. treat- ment by treaty. in the general-conventional tariff which is pre- dominant in germany and other central european states, the chief emphasis lies in tariff treaties with m.f.n. treatment. the maximum-minimum tariff isless favourable to the treaty method. this, although of spanish origin, can to-day be described as the french tariff system, because the unilateral and therefore relatively high minimum rates offer small inducement to the conclusion of commercial treaties, and their autonomous regula- tion affords no security against subsequent increases. in its most extreme form it might result in the same article being subject to divergent tariff rates according to the country of origin, which would naturally exclude any m.f.n. treatment. even if france herself has never gone so far as this yet, her commercial treaties in the post-war period exhibit great specialisation. in the treaty with czechoslovakia of aug. 17 1923 she grants some tax rates of the minimum tariff (list b), then some rebates from the tariff rates of the maximum tariff (list c) and applies else- where the maximum tariff. in the case of preference granted by france to austria and hungary, she extends unconditional m.f.n. treatment, but for the tariff rates of lists b and c only conditional m.f.n. treatment. post-war changes ——the pre-war commercial treaties corre- sponded to the normal market conditions in which production outran demand, so that it was the concern of the seller to find a market for his goods and not of the purchaser to obtain the goods he required. the state only sought to facilitate the path of trade in foreign countries; whether and how far advantage was taken of this was the concern of the merchant. the scarcity of goods brought about by the war, however, upset the normal market conditions; instead of the purchaser the seller had the stronger position, and it was not the man who wanted the goods who dictated conditions, but the man who controlled their supply. commercial treaties of the old type were temporarily pushed into the background by two new types; the compensation treaties and the treaties based on quotas, which are distinguished from the ordinary forms by the fact that the contracting states pledge themselves, not merelv to permit movement of private trade, but to a definite undertaking. in the compensation treaties the state declares that it will supply specified quantities of certain goods, in return for which it receives others of which it is urgently in need. ilere the obligation to deliver is in the foreground, since it is mainly a matter of essential goods, such as wheat, coal, etc. occasionally, as for example in the case of france in relation to switzerland, there was also an obligation to accept delivery, when the other party was at pains to secure at least part of a market for its high-grade luxury products (embroideries) which it had lost as a result of the war. a condition of these treaties was the suppression of private trade and the setting up of state centrales for the most important goods, because the state admin- istration can only deliver goods which are under its own control. the treaties with quotas which arose later are distinguished from the above by the fact that the treaty states do not pledge themselves to the delivery of goods against goods, but merely agree to the issue of export licences for specified quotas of goods, for which it was also necessary that an import licence should be granted by the receiving state, but whose actual delivery, where the goods were not still subject to state control, remained in the hands of private trade. such treaties were often not published at all but only communicated to the government departments and the undertakings concerned. after the war, normal market conditions gradually returned, though less owing to a rise in production than to a general fall in purchasing power. the consequence of this equalisation of supply and demand on a lower level was that the struggle for foreign mar- kets gave place to a struggle for the retention of the home market. protection came so strongly to the fore that even england had to sacrifice part of its traditional free-trade policy. the protectionist tendency was appreciably strengthened by the currency depreciation in many countries, which results in an export bounty for the products 692 of the country concerned. the countries with high exchanges protect themselves against such exchange dumping by raising their import duties or by special additional duties (e.g., spain, czechoslovakia). the countries with weak exchanges in turn are forced to prohibit imports of luxury goods, and to hinder payments to foreign countries by controlling exchange transactions, in order to prepare for stabilt- sation by improving the balance of payment. hence it resulted that the protectionist syste n was even accentuated by a system of pro- hibitions such as people had believed to have finally disappeared with mercantilist ideas by the middle of the 1gth century. it is true that gradually the need for normal commercial treaties with m.i’.n. treatment and tariff rates has been receiv- ing greater recognition, but the after-effects of the conditions of political and commercial war have by no means vanished. the commercial treaties concluded before the war were determined by the belligerent powers contrary to former custom, when their operation used merely to be suspended for the period of the war. negotiations entered into since then have been confronted with such great conflicts of interest and uncertainty of conditions that often agreements could only be made for a year, terminable at three months’ notice, whilst formerly they used to hold good for 10 years and more. m.if.n. treatment amongst the european states has often been only conditionally granted, and restricted to certain categories of goods. further, events in russia have caused a severe dislocation of the old-established trade relations, for she demanded the recognition of her state monopoly of the export trade and of the abnormal political institutions of the soviet regime. on the other hand, owing to the economic crisis and the politi- cal unrest of europe, endeavours have been made to join certain states into a customs union by abolishing the customs duties between them. thus abortive proposals were made that austria, whose continued existence appeared hopeless, should be united to germany or should join with other neighbouring states into a danubian federation. schemes for economic union have also been discussed in the balkans and between the baltic states. but such preferential relations arouse political objections, be- cause the union of economic interests may also bring about political ties, and are also impeded by the fact that the states receiving m.f’.n. treatment are not willing to be excluded from the advantages of preferential relations. up to now these ideas have nowhere been realised. (see also treaties.) brsl1rograpuy.—josef gruntzel, 7zandelspolitik (ard ed., vienna, 1921) and economic protectiontsm (1916); t. e. gregory, tariffs (1921). | (j. gr.*) communism see 6.791) is a special movement within so- cialism (q.v.) with the same ultimate goal, namely the abolition of social stratification by the destruction of private ownership of the means of production.! by this means it is hoped to liber- ate the oppressed and to emancipate the proletariat. com- munism is peculiar, in that, basing itself on the utterances of marx and engels, it holds that this end is o#/y attainable by means of a revolution. revolution is not rejected by socialism as a last resort for overcoming historical and social obstacles; but communism regards revolution as zecessary and a period of the dictatorship of the proletariat based on open terror as the only means of creating the socialist economic and social system. modern developments —communism has undergone very far- reaching changes since the world war, not so much in theory as owing to its international expansion. russia, by coming under the rule of a communist party, has become.the parade ground of communist practice. communism, in its russian form, has some remarkable features which originally did not belong to it. russian communism forsakes the path of marxian socialism when it regards the social revolution as possible in every capi- tilist country of europe without regard to the stage of its eco- nomic development. ‘this clearly springs from its thesis of a world revolution which can break out anywhere, and which must then spread from the country of origin over the whole world. 1 the communism discussed in this article has nothing in common with that “ ideal communism often aimed at in the past by re- ligious or utopian ° ‘communities.” modern communism is built up on the basis of the communist manifesto issued in 1848. com munism modern communism, especially russian communism, based as it is on the ‘‘ communist manifesto ” issued by marx and engels in 1848, emphasises the initial necessity of civil war. it regards the paris commune not as a purely political movement but as an economic revolution for the emancipation of the pro- letariat which was stamped out with bloodshed. similarly, the 1905 revolution in russia is treated as a prelude to communism. communism in its russian form is closely allied to syndicalism but not to anarchism, as is often falsely maintained. syndical- ism is the revolt of the rank and file of the workers against the democratic state, against capitalism, but also against trade union bureaucracy. it is born of impatience of the compromises brought by daily life. it is the transplanting of the e/an vital into the social conflict. just as syndicalism places action above everything, and moreover direct action—not only strikes but also sabotage—just as it seeks to conquer the capitalist structure even at the cost of the temnorary destruction of productive forces, so also in the case of russian communism (bolshevism) force is the necessary road to success and the militant period constitutes a necessary training of the proletariat for the con- trol of socicty. on the other hand, communism differs from syndicalism in that the latter glorifies the ‘‘ militant minority ” and believes that a determined minority is necessarily superior both in wis- dom and power to the loosely associated majority, whereas com- munism considers that the acquiescence, at least, of the majority must be obtained by propaganda. furthermore, syndicalism is in revolt against all forms of centralised control, above all, of economic processes. if the proletariat is to achieve its aim it must as a class elect its own representatives. just as in the french commune the sections, 7.e., the individual city quarters, elected their representatives «directly, so also russian com- munism has created a similar direct representation of the pro- letariat in the workers and peasants’ councils. but the prole- tariat itself, according to communist ideas, does not form a political body suitable for democratic organisation. for, accord- ing to communist theories, the proletariat at the beginning of the revolution is no homogeneous mass but contains within itself the various stages of historical development. only the most enlightened workmen employed in the technically most advanced branches of industry are capable of grasping the situation. the great mass of the workmen employed in medium and small workshops, or in handicraft, the exploited, degenerate masses of the home workers are not in a position to recognise their interests and their “ social status”? in the moment when revolution breaks out. for the domination of the bourgeoisie and of capital is not only an economic and (in the first stages of the industrial sys- tem) a physical dictatorship. the bourgeoisie, according to communist theory, rules over the proletariat, not only by virtue of unemployment and throussh the police; its rule is at the same time a spiritual one, in that the whole ideas and ambitions of the workman are perverted by the interests of the bourgcoisic. a proletarian revolution, therefore, based on democratic fran- chise, even if confined to the workmen, would have little chance of success, and the proletariat must, therefore, trust to its ad- vance guard, the communist party, which includes only a small fraction of the workmen, and must not include more in the in- terest of its fighting strength. for all these reasons the soviet system, which originally (1905) had been based on democratic ideas, was soon transformed; voting was made public, in order lo ensure the election of communists. the communist party, furthermore, drew up the lists of candidates in such a way that candidates other than communists could not be elected in the electoral assemblics. the system of indirect election to the higher soviets serves the same purpose. the working prole- tariat alone is entitled to vote for these bodies; the other social classes, in so far as they exist at all, are deprived of any political rights as “ exploiters.” according to russian communist theory the working classes as such are quite capable of seizing the power of the state, but not of maintaining it with success. for this purpose they require communist—companies a committee which acts for them: the communist party. this partv must therefore exercise the dictatorship during the period of civil war, and hence it is necessary that only members of the communist party, or those in sympathy with it, should be elected to the councils. the period of dictatorship is regarded as a transitional stage, in which a freely democratic expression of will would lead to the victory of the counter-revolution, in view of the greater mobility and the economic strength of the former ruling classes. it is only when the socialist society has been achieved that a free expression of will and the representa- tion of the whole people is again possible. communists cdo not reject the current conceptions of democracy because they believe in the superiority of the few, but because they believe that the phrases of democracy bear no relation to present realities. true democracy is held to be unrealisable in capitalist society be- cause of the fundamental helolessness of the propertyless man; parliamentary forms only serve to veil the reality of the “ bour- geois dictatorship ’ by an appearance of popular consent which is rendered unreal by the capitalist control of the social structure. the theory of the dictatorship—the russian practice of communism, especially the dictatorship of the proletariat and its maintenance by the terror, has its theoretical basis in the “true marxian doctrine of the state,” as this was developed by marx and engels. according to this, the state is not the reality of the ethical idea, nor the realisation of a universally valid system of law, nor a power standing above society, but the state is an organ of class rule, an organisation of the exploiting class in power at any time for the maintenance of its external conditions of production, and especially for the suppression of the exploited class. it is finally a “‘ special force of repression ”’ even in the case of the democratic state. hence it can never represent the whole society, except where this consists of one class—the proletariat. for whereas all previous class struggles have resulted simply in the rule of a new minority, the victory of the proletariat carries with it the emancipation of the whole of humanity, because there is no remaining class below them to be freed. the struggle of the working class is thus the struggle of the humanity of the future. when the state seizes the means of production in the name of society (and that is the social revolution), then, and not till then, does it represent the whole society. then government over persons is replaced by the administration of things and the con- trol over productive processes. the state is not “‘ abolished;”’ it dies out. ‘‘ the machine of the state is put into the museum of antiquities, alongside of the spinning wheel and the bronze axe ” (engels). for in proportion as the proletarian state carries out its task of suppressing class distinctions, it destroys its own class basis, and the state as a special organ of class power and repres- sion gives way to the machinery of a homogeneous communist society. it is only in this subsequent phase of communism that freedom becomes realisable. this end cannot be attained immediately by the conquest of the state power. if the proletariat overthrows the bourgeois government and takes over the army and the administration, socialism and the classless society are not yet achieved. on the contrary, the workers must then, by means of the dictatorship of the proletariat, take and maintain possession of the state as the “‘ special force of repression ”’ for keeping under the bour- geoisie. this is, briefly, the theory. practical modifications—since communism to-day is no longer a mere theoretical political system, but has become a political power, it is going through different phases. faced with reality, principles melt like snow in the sun. further, there are the rapidly changing conditions which may necessitate quick changes in tactics or even the temporary sacrifice of principles. as the soviet state has developed in russia, many concessions have had to be made to economic necessities. the early militant phase of war communism gave place to the new economic policy and to a far-reaching recognition of private trade and in par- ticular of the right of the peasant to the free disposal of his products, subject to certain fixed taxation. this in turn has been modified in certain respects, but russian communism is 693 still essentially in a transitional condition, and it may be argued that it has very little right to the name of communism at all. communist thought in other countries has been relatively little affected by the changes in russian practice, and is still very greatly influenced by the theoretical writings of lenin and the policies advocated by the third international (see russra: thtrd international). just as the political development of the tgth century was profoundly modified by the french revolu- tion, so economic life during the present century will continue to feel the repercussion of the ideas of the russian revolution, even were a new napoleon to arise and to restore the former capitalist system in russia. the strenzth of the communist movement outside russia varies greatly in different countries, being greatest wherever economic <listress is most acutely felt. the continuance of the intensive propaganda of the third international, despite very prejudicial effects on the political relations between the soviet state and other governments, is mainly attributable to the sense of insecurity of the russian communists, and to their belief that the russian experiment depends for its lasting success upon the accomplishment of the world revolution. (see also third international.) | brpliography.—k. marx and f. engels, the communist mani- festo (1848); marx, capital (1887); n. lenin, the state and revolu- fion (1917) and left wing communism, an infantile disorder (1920), n. bukharin and e. preobrazhensky, the abc of communism, trans. by e. and c. paul (glasgow, 1922); j. clunie, the third com- munist international: its aims and methods (glasgow,1922); g. sorel, la decomposition du marxisme, 3rd ed. (paris, 1923); m. beer, a guide to the study of alarx: an introductory course for classes and study circles (1924); w. sombart, der proletarische soztalismus— “ marxismus.”’ ‘ sozialismus und sosiale bewegung" (10th ed. of jena, 1924); a. waters, l'evolution du marxisme depuis la mort de marx (brussels, 1924); see also—reports of the rst, 2nd, 3rd, 4th and sth world congresses of the communist international 1918-24; the communist review, 1921, issued by the communist party in great britain. also theses of the communist international, complete. as adopted by the second congress held in moscow, aug. 1920, elc. (1921); speeches and documents of the sixth—manchester—con- ference of the communist party of great britain, may 17, 15 and 19 1924. (e. le.) communist international: see timrd (communist) in- ternational. companies and corporations (sce 6.795).—this article deals first with the position of certain classes of trading com- panies in great britain, and afterwards with companies, or corporations, as they are called, in the united states and france. i. great britain as regards great britain, the term “ company ” is used with special reference to two types of company—(1) registered com- panies, 2.¢., companies which are registered under the com- panies acts, 1908 to 1917, and (2) statutory companies, 7.e., com- panies incorporated under special acts to carry on works of public utility. this classification follows that previously adopted with the modification that the prefix public is used no longer to denote companies in class 2, but those companies in class 1 which are not private. as in the previous article attention 1s concentrated on companies “ limited by shares ” as distinct from “wnlimited companies ” and ‘‘ companics limited by guaran- tee,” types which still remain comparatively unimportant. registered companies the progress of british joint stock enterprise during the period r910 to 1925 illustrates lord bowen’s observation that “ very often the course of business in the city walks in front of the law merchant,” for the uses to which the commercial world has put the companies acts have undergone extensions more striking and important than any of the legal changes introduced. legal changes——the statutory changes, comprised in three acts which supplement the companies (consolidation) act, 1908, may be summarised as follows:— 1. by the companies act, 1913, safeguards were provided to prevent private companies from continuing to enjoy the privileges and exemptions accorded them under the companies (consolida- tion) act, 1913, when any of the conditions mentioned in that act 694 en 129) and embodied in the companies’ articles are no longer ulfilled. 2. by the companies (foreign interests) act, 1917, companies which by their articles restrict the amount of capital which may be held by aliens were prohibited cither from eliminating such restric- tions or entering into voluntary liquidation without the consent of the board of trade. 3. by the companies (particulars as to directors) act, 1917, the provisions of the ‘‘ registration of business names act, 1916” were applied to companies and the disclosure of certain particulars respecting directors was made obligatory. although something on the lines of the registration of busi- ness names act had been contemplated before the war, it is plain that both the acts of 1917 were directed to minimise the danger of the control of british-registered companies by enemy or ex-enemy aliens. in a case which came before the house of lords in 1916 (daimler co. ltd. v. continental tyre co. ltd. (1916) 2 a.c.) lord parker, referring to the history of joint stock enterprise used these words :— english legislation and decisions have developed mainly since this country was last engaged in a great european war and have taken little if any account of warlike conditions. the ideal of joint stock enterprise that, with limited liability the more unlimited trading the better, is an ideal of profound peace. in the case in question the main point at issue was whether a company, registered in england (and therefore british) but in fact controlled by germans, had or had not certain legal rights as a british subject (e.g., in the matter of recovering a debt). by a majority the house of lords decided that it had not— thus abandoning the doctrine which it had formerly established (in the case of saloman v. saloman and co. ltd. (1897) a.c. 22), that a company once incorporated ‘‘ must be treated like any other independent person with its rights and liabilities appro- priate to itself.” the wrenbury report.—fearly in 1918 a committee under the chairmanship of lord wrenbury was set up by the board of trade to inquire what amendments were expedient in the companies acts “ particularly having regard to the circum- stances arising out of the war and of the developments jikely to arise on its conclusion.”? the committee reported (cd. 9138) in favour of amendments (a) to ensure the disclosure of alien na- tionality by shareholders, and (8) to ensure that, in the case of companies engaged in shipping or in “ key ” industries, “ not more than 20°% of the power of control should be in alien hands.”’ neither of these recommendations has found a place in the statute book. growth of joint steck enterprise since 1910.—apart from a heavy additional burden of taxation taking the form of higher stamp duties and (from 1921-5) of a special tax on profits (the corporation tax) the restrictions imposed upon joint stock enterprise as a result of the war proved to be of a temporary nature. on the other hand war and post-war conditions were favourable to joint stock activity in many directions. according to the board of trade annual reports on com- panies the number on the register in 1910 was 51,787, having a paid-up capital of £2,178,619,734; by the end of 1924 it was 9o,- 918 for england and scotland with a paid-up capital nearly twice as large (£4,355,869,530). the increase was not continuous. during the war years 1915 to 1918 the net addition was only 866 companies with a paid-up capital of £194,048,192, but the two years 1919 and 1920 more than made up for the falling off by adding 12,689 companies and a paid-up capital of £1,293,537,410. during the next four years, in spite of a setback in 1921, the rate of increase both in numbers and capital was comparable to the rate of increase in the four years 1910 to 1914. relatively to that of public companies, the increase in private companies has been remarkable. in 1910 the proportion of pri- vate to public companies was stated (see 6.800) to be one-third. in 1918 the wrenbury committee found that out of 66,000 on the register no less than s50,ooo were private. in 1924 the proportion was 89% (81,809 out of a total of 90,018). this rapid increase is reflected in the board of trade returns regarding the capitalisation of english companies. between 1911 and 1917 companies and corporations companies with a nominal capital of less than £5,000 comprised over 50% of the total in each year. during the boom years that followed the proportion declined to 31-5 %, but in 1921 companies with less than {5,000 were once more in the majority, the num- bers reaching over 62% of the total in 1924. when it is realised that there were registered in 1919 95 companies and in 1920 121 companies (compared with 27 in 1913 and 14 in 1924) witha nominal capital of £750,000 and over, the increase during 1919 and 1920 in the proportion of companies with a quite small capital will be understood. after allowance has been made for the possibility that an increase in the stamp duty (from 5s.% to £1% of the nominal capital in 1920) may have been a con- tributory factor in favour of low capitalisation, 1t seems reason- able to infer that, since 1910, small private businesses and firms have, to an increasing extent, found it advantageous to adopt the company form of organisation. the full significance of the above figures will be missed unless some attempt be made to answer the following questions: (1) into what parts of the industrial field have joint stock com- panies spread most during recent years? (2) to what extent have the shares in public companies been bought by small investors? (3) what have been the main effects on the joint stock system of the economic disturbances arising out of the war? spread of joint stock organisation.—general statistics showing the extent to which the corporate form of trading has permeated business undertakings in the united kingdom are unfortunately not available (cf. united states statistics referred to below under corporations in the united states). there can, however, be little doubt that in those branches of production and distribution where the growth of large-scale organisation has been most rapid, companies—especially of the “ holding ” type—have become common. the british united dairies ltd. is a good example. registered in 1915 with a capital of {1,000,000 this company (with a capital now four times as large) was, according to the ‘“‘ linlithgow report ” of 1924, in control of “ by far the greater part of the london wholesale milk trade ” and—through its 16 subsidiaries—one-third of the london retail trade as well. in regard to other commodities the advent of the multiple shop has brought many departments of retail trading under cor- porate ownership, such as groceries, household stores, drugs, etc. in a memorandum submitted to the greene committee (see below) the manchester chamber of commerce stated (afinutes of evidence—26th day, appendix k k) that, among undertakings covering 85% of lancashire spinning and weaving mills, compa- nies now comprised 90% of those engaged in spinning, 75% of those engaged in weaving, and 89% of those which combined spinning and weaving. as in weaving, so also among merchant exporters there was stated to be a growing tendency for private concerns to take advantage of the private company form. the small investor —in his last work, money, credit and commerce, prof. alfred marshall, commenting on the fact that ‘many railways and other undertakings are owned in great part by multitudes of small capitalists,” said: “ the main effect of this development is to strengthen the position of the middle classes relatively to the working classes on the one hand and to the wealthy classes on the other.”” while there is no rea- son to doubt that small investors have been increasing in number relatively to large, reliable statistics to show this tendency are lacking—at any rate for the united kingdom. between small- holdings in land and those in shares there is no analogy: and the fact that the average size of the shareholdings in 19 representa- tive companies was in 1925 no more than £267 (vide an analysis made by the liverpool and district economic league) may per- haps only indicate that large investors now-a-days prefer to distribute their capital in small parcels over a wide field. economic effects of the war.—with the prolongation of the war the number of trades drawn into the orbit of war-time de- mand tended steadily to increase until nearly the whole range of private enterprise was occupied in catering for a market the absorbent qualities of which seemed to be unlimited. at the same time restrictions were imposed by the government on the flotation of new share issues. the result was that successful companies and corporations companies were compelled largely to provide for their capital requirements out of profits. in particular open reserves, repre- sented by investments in stock-exchange securities, increased rapidly. an analysis by the economist of some 1,000 companies showed that between 1914 and 1917 the average percentage of profits placed to reserve increased from 26-3 in 1914 to 37 in 1917, while in some industries such as iron and steel and oil the percentage rose to over 60. the termination of the war found the financial position of most public companies still further strengthened. to open reserves were now added secret reserves, automatically created by the enhanced and increasing value of their physical assets. according to a decision of lord justice fletcher moulton in 1911 (spanish prospecting co., ltd., 1 ch. 92) such reserves might be treated as profit and paid out as dividend. in general, how- ever, companies adopted the practice of distributing their surplus profits (including these increases in the valuation of their assets) in the form of bonus shares. and in fact, in 1920 alone bonus shares to the nominal value of £65,249,398 were dis- tributed on a paid-up capital of £97,95751 14 by 235 public com- panies. wealthy shareholders in particular benefited by this practice, since it was decided by the house of lords (the com- missioner of inland revenue »v. blott, 1911} that such property in the hands of shareholders is not liable for super-tax. bonus share distributions in 1919 and 1920 account only in part for the enormous increases in issued share capital that occurred in those years. a period of rapidly rising prices had al- ways been favourable to the merger of companies and the buy- ing up of the smaller by the larger concerns. and so it proved then. since, however, the payments involved in these trans- actions had to be made (whether in cash or shares) in accordance with the high prices which business assets then commanded, the nominal value of the shares issued to cover these payments was necessarily large. at the end of 1920 prices began to fall and a prolonged trade depression set in. industrial companies generally, and especially those created or reconstructed during the boom period, were now faced with the position that their habilities (eguzitable, not legal liabilities, of course) in respect of paid-up share capital were in excess of the true value of the assets, tangible and intangible, set against them. this excess was the measure of the amount of ‘‘ water ” in their share capital. watered capital meant that the weaker companies were unable to earn dividends even on preference shares, while the heavy fall in the market price of their shares made it difficult for most companies to raise work- ing capital except by borrowing. according to the monthly re- view of the midland bank (for march 1926) the ratio of loan capital to share capital raised by companies rose from 9:6% of the annual totalin 1919 to 46:8% in 1921 and 49-5 %in 1922. the remedies were no doubt obvious. the remedy for over-valuation of assets was a drastic writing down of share values. the remedy for falling markets was a reduction in working costs. but neither was easy to apply. the first meant the expense and inconvenience of an application to the court for leave to reduce capital. the second meant a reduction of wages on the ground that shareholders were entitled to expect at least some return on their investment. this argument, however, carried little weight with trade unions, able to point out that perhaps 50% of the share capital was water. to the knowledge of this fact and the publicity given to it has been attributed the collapse at the end of 1923 of the opposition of the shipping companies to a wage demand from the organised dock labourers. at the end of 1922 only a small part of the water had been squeezed out by capital reductions. the burden of this legacy from the sanguine days of rising prices, coupled with the fact that the unsheltered industries still showed no genuine signs of recovery, makes all the more remarkable the recuperative power shown by companies in general from 1923 to 1925. according to the economist, 1{ too be taken to represent the general level of profits realised in 1920, then the profits in rqg21 were 79-9, in 1922 56-7,1n 1923 74, in 1924 78:9, and in 1925 85-8. thesame upward tendency from 1922 to 1925 is indicated by the rise in the 695 average rate of return paid on ordinary shares from 8-4% in 1922 to 10°3% in 1925, as well as by a decrease in the ratio of loan capital to total capital (raised by companies annually) from 49°5% in 1922 to 34-2% in 1925. companies as investors —for this unexampled power of re- covery some explanation is required. the secret lies, it is be- lieved, in the strides which the financial integration of com- panies (through investment by companies in other companies’ shares) has taken in recent years. for companies as for private investors the field of profitable and safe investment has widened considerably since 1910, not merely because the market in securities is larger but because the lesson has been learnt that debentures and other gilt-edged securities offer no better prospect of a safe return than a varied assortment of holdings in which ordinary shares as well as government bonds have a place. investment by companies has developed three distinct forms: (a) the investment by companies in general of their reserved profits; (b) the investment by companies (the so-called invest- ment banks or trusts) whose sole or main object 1 is investment; (c) the investment by holding companies in the shares of subsidiaries. with regard to (a), attention has been drawn to the extent to which industrial companies during the depression have found their trade losses counterbalanced by profits in the shape of income from investments. the reserve fund has become an instrument for making past profits earn future profits. speaking of insurance companies’ profits in 1925 the economist noted that ‘in these days the profit from interest is most substantial, a good deal larger than it was before the war.’’ this statement is fully borne out by an analysis of the income of 21 insurance com- panies in 1924, owe that the return from investments amounted to 46°5%, net trading profits to 53-5%, of a total income of over £12,000,000. with regard to (8), the growing importance of the rele played by the investment company in the modern joint stock system has been often emphasised. the primary function of this type of company is to act as an expert investment agency which brings the private and especially the small investor into touch with joint stock enterprise in all parts of the world. sir george paish has estimated that in 1913 british foreign investments had reached a total of £3,800,000,000 of which £750,000,000 were in the united states of america. the main vehicle of this huge capital export has been the investment company. to its pre-war activity must be attributed in large measure the services which ‘* dollar securities ’’ rendered to the british govt. during the war. the holding company.—with regard to (c), one must note that in this case investment is a mere device for securing an amal- gamation or consolidation of interests between separate under- takings. the typical holding company is a public company which derives its profit, if any, from having a controlling interest in a number of subsidiary private companies, carrying on allied trades or difierent branches of the same industry. one of the great advantages of this arrangement (from the point of view of the directors of the parent company) is that the combine can conduct its affairs in complete secrecy. the private companies do not (as the law does not compel them to) publish balance sheets; the balance sheet of the holding company merely shows the income which it has derived (in the course of a year) from its investments in subsidiaries. thus nothing is revealed as to the amount of profit (or loss) made by any of the subsidiaries. the convenience of this was well described by mr. d’arcy cooper, chairman of lever bros., ltd. (a large, if not the largest holding company with some 200 subsidiaries) when he said in evidence before the greene committee (minutes of evidence, 3751) :— if you are asked to publish details of these private companies the result will be that you will get tremendous competition in regard to the particular articles on which you are making good profits. it is clear that the holding company is a product of the modern trust movement in industry and trade (see trusts); it may in fact be described as the principal vehicle in which the british trust movement travels. 696 company law reform proposals —it was not to be expected that the popularity of private companics and the advent (through inter-investment) of co-operation or combination among companies would not bring in their train a good deal of dissatisfaction with the existing state of the law in regard to companies. early in 1925 a departmental committee under the chairmanship of mr. w. greene, k.c., was appointed by the board of trade “ to consider and report what amendments are desirable in the companies acts rqg08-1917.” some of the pro- posals made before the committee favoured a greater degree of freedom in the conduct of companies’ affairs than is at present possible under the acts, and others a tightening-up of the law so as to diminish the opportunities for deceit or fraud in the promotion and direction of companies. in the first category are to be placed such proposals as the following: the right to issue shares at a cliscount (e.g., one pound shares fully paid at a discount of ten shillings); the right to issue shares of no par value (i.e., new shares to be sold for what they will fetch in the market at the time of issue); the right to issue redeemable shares or stock (see below under statutory companies); greater latitude in re- gard to “ objects.” in the second category are to be reckoned proposals: to abolish or restrict the power of companies to give a floating charge on their present and future assets; to compel private companies to file balance sheets; to increase the responsi- bility of directors (the vexed question of directors’ liability was brought to the fore in connection with the notorious “ bevan case’ in 1922); to give reality to the ‘“ minimum subscription ” clause (sce 6.798); to compel issuing houses when offering new shares of a company to the inves:ing public to give the same full and complete information as the law would require the com- pany to give if it were offering these shares to the public direct. the greene committee in its report (1926, cmd. 2657) favoured a proposal made by the federation of british industries to allow companies to issue redeemable preference shares, though they were not in favour of allowing a redemption out of profits to have the effect of a reduction of capital without the consent of the court. with regard to the issue of shares at a discount and the issue of shares of no par value, the committce were in favour of conceding, under restrictions, the former privilege, but not the latter. on the whole, apart from these innovations, the tenor of the report is conservative and cautious. the private company’s privilege of financial secrecy is not assailed; the commercial con- venience of the holding company type of organisation is accepted without criticism; complaints of the prejudice created by the floating-charge type of debenture have failed to move the com- mittee in favour of any drastic change. on the other hand, the committee’s proposals in regard to the marketing of the shares of public companies, both new and old, are designed to ensure full disclosure (or the means of obtaining full disclosure) of a com- pany’s prior history and prospects (sections 38-41 and 92-93). the shareholder is to be further protected by disallowing the in- sertion in articles of clauses enabling either directors or auditors to contract out of the general law for negligence or breach of duty (sections 46, 47 and 73), and by prohibiting the directors of public companies from proceeding to allotment unless and until a certain minimum amount of capital (set forth in the prospec- tus as necessary for certain specified purposes) has been raised. the firm hold which the company has taken on the business world, has given rise in recent years to a good deal of critical specu- lation. dr. rathenau in germany and prof. t. n. carver in america, have seen in the modern company a departure from the naked individualism of the roth century and a promise—a kind of instalment in advance—of socialisation. others, such as loril haldane and lord milner, have taken a more sober view of its social value. criticism has concentrated mainly on the position of shareholders vis-d-vi. their companies. the shire- holder has been compared (by veblen) to an “ old man of the sea” who sils tight, secure in the knowledge that through his shares he retains (for an unlimited period) along with his co- shareholders a right to or equitable licn over the whole of the future net profits earned by his companies. companies and corporations statutory companies by far the most important event in connection with the incorporation of companies by special act has been the rail- ways act of rg21 (see great britain: communications). in 1920 the public utility companies (capital issues) act was passed which authorised the board of trade to consent to the variation of the provisions regulating the raising of capital by gas, water, water power, electricity and tramway undertakings. such companies were to be allowed (inter alia) to issue stock at a discount and to issue redeemable preference stock in lieu either of ordinary stock already authorised or of irredeemable preference stock. the act was to expire (but so as not to affect the validity of anything done in pursuance of it) on may 20 1925. the second provision was clearly intended to enable public utility companies to effect a conversion of preference stock on favour- able terms when moncy rates were lower by redeeming or retiring preference stock entitled to a high rate of return at the time of issue. it thus belongs (together with those older expedients,— the auction clause and the sliding scale of prices and dividend) to a type of provision which the legislature has seen fit to in- troduce into the constitution of particular companies in order to ensure, for the benefit of consumers, that the companies in question shall not pay an excessive price for their capital. il. the united states and france an important legal change that affects the legal powers of corporations has been the permission given to issue stock of no par value. the first legislation authorising this change was adopted by new york state in 1912. subsequent alterations have made it possible for any new york corporation (other than a financial one) to issue no par stock of any class, save that in the case of public service corporations the permission of the appropri- ate commission must be sought. since 1912 34 states had (up to may 1924) passed legislation either on the model of the new york law or of that of the state of delaware. unlike new york delaware gocs so far as to permit a corporation to be formed without any stated capital whatever. the policy behind the act of 1912 has been described as recognising “ that shares in a corporation represent only aliquot interests in its capital whatever that may be and that their nominal or par value is no indication of the actual capital of the corporation.” (v. morawetz.) the supporters of no par value stock claim that (1) it com- pels investors before applying for stock to rely upon the real value of a corporation’s assets instead of on an illusory nominal value attributed to the stock; (2) it prevents corporations from jssuing stock at a discount (when the market price of the same class of stock is below par) and so “ watering ”’ the capital. on the other hand the practice has excited unfavourable criticism in some quarters. thus the eminent american jurist, mr. w. w. cook, has pronounced against it in the following terms:— these no par value statutes are destroying the respectability of the corporate form of organisation. the abolition of real capital stock and the freedom as to dividends on no par value stock render it the ready instrument of concealment and fraud.— (principles of corporation law, 1925). it seems probable that whether wise or the reverse, the in- troduction of no par value stock has been brought about by the issue of shares or stock at a discount,—a practice which, though hitherto denied to british registered companies, has been allowed ito american corporations. valuable comparative statistics illustrating the steady growth of joint stock enterprise in the united states were furnished by the census department after the last census. ‘the returns showed that in 1909 25-90% of total establishments were owned by corporations, 21-7% by partnerships (including co-operative undertakings) and 52-4% by individuals; in 1919 the percentages were 31-55, 20:85 and 47-6 respectively. in rg09 of the total value of american products, corporations contributed 79%, part- nerships, etc., 11-1°% and individuals 9-9%; in 1919 the percent- com payre—conduction, electric ages were 87-7, 6-6 and 5-7 respectively. in 1c¢09 of all wage earners in the u.s.a. corporations employed 75:6% , partnerships, etc., 12-2 and individuals 12-2; in ig1g9 the percentages were 86-6, 6-6 and 6-5 respectively. as regards the distribution of corporate ownership mr. h. t. warshaw in an article under that title (quarterly journal of economics for nov. 1924) has conjectured that while the total capital stock of all corporations had risen from 64 billion dollars in roro to nearly 714 billion dollars in 1923, the number of stock- holders had increased from about 7,400,000 in 1910 to about 14,400,000 in 1923. this calculation was based partly on (a) an an- alysis of income tax returns between 1916 and 1922, partly on (d) figures showing the growth in the numbcr of separate stockhold- ings relatively to the growthin the capital stock of all corporations. the first analysis showed that in 1916 large payers of income tax (on incomes of over $20,000) received 79-3% of all the dividends paid which figured in the returns, but in 1921 only 46-8°4, while the share taken by incomes of $1,000 to $5,000 rose from 9-5% in ro17 to 22-7% in 1921. the sccond analysis showed that the average size of stockholding had declined from $8,630 in ro10 to $4,970 in 1923. although, as already noted above, the second analysis does not by itself afford conclusive evidence of a more widespread distribution of capital, the first analysis, confirmed as it is by evidence from other quarters, certainly suggests that the working class in america is becoming more and more also an investing class. that the war has been largely responsible for this change in distribution is the conclusion arrived at by the national burcau of economic research which reported that ‘‘ the net effect of our participation in the war was to diminish somewhat (at least temporarily) the inequality in the distribution of american incomes. the top 5° took a share declining from 33% 5 in 1913-6 to 25° in 1918-9.” france.—a recent important innovation in french company law has been made by the act of march 7 1925 which has enabled “societes 4 responsibilite jimitee’”’ to be established. ‘this “ private company law ” contrasts with the british act of 1907 in imposing conditions of a restrictive kind. thus under the french act:—(a) shares must be fully paid before the company can be incorporated; (2) if there are more than 20 membcrs a supervision committee of three members must be set up which is held liable for the non-fulfilment of duties to the company and to third parties, and (c) +5 at least of the yearly profits must be put to reserve until the reserve so created 1s equal to at lcast go of the company’s capital. bibliography.—h. withers, stocks and shares, new ed. (1917); report of the company law amendment commniittee (cd. 9138 of 1918); dr. w. rathenau, zn days io come, trans. by e. and c. paul (1921); j. j. sullivan, american corporations (1921); sir g. garnsey, holding companies (1923); j. c. bonbright, ‘‘ no par stock,” and h. t. warshaw, ‘' distribution of corporate ownership,” quarterly journal of econoniics, vol. 38 and 39 (boston, mass., 1923-4 and 1924-5); b. d. nash, investment banking in england (1924); sir kf. b. palmer, company law (1924 ed.); e. l. smith, common stocks on long term investments (1924); w. l. thorp, the integra- tion of industrial operation (united states census, monograph iil. 1924); t. n. carver, the present economic revolution in the united states (boston, 1925); w. w. cook, the principles of corporation law (univ. of michigan, 1925); w. h. michael and j. s. will, gas and water, 2 vol., 7th ed. (1924 and 1925); viscount milner, ques- tions of the hour (1925); departmental committee, afinutes of evidence on the companies acts (1925), and repert (cmd. 2651, 1926) (xe ls do) compayre, jules gabriel (1843-10913), french educa- tionalist (see 6.899), died march 23 1913. | condouriotes, paul (1855- ), greek admiral and statesman, was born april 14 (new style) 1855 in the island of hydra. he adopted a naval career and served in the greco- turkish war of 1897. he commanded the fleet in the balkan war of 1912-3, and twice defeated the turkish navy in the dar- danelles. in the zaines and skouloudes cabinets of 1915 he was minister of marine, but followed m. veniselos to salonika in 1916 and formed with him and gen. dangles the provisional govt., opposed to that of king constantine. aiter the king’s first deposition in 1917, he again became minister of marine in 697 the third venisclos cabinet, resigning in'1919, when parliament bestowed on him the title of ‘f admiral ” for hfe. in 1920, on the death of king alexander he was for a short time regent. soon after the defeat of m. veniselos he resigned and went abroad, but returned, and on dec. 20 1923, the day after george ii. icft greece, was again appointed regent. on march 25 1924 the national assembly, after deposing the dynasty, confirmed his mandate until after the plebiscite of april 13, and his title was then changed to that of president of the republic. conduction, electric (sce 6.855).—the principal advances since tg10 have resulted from attaining unprecedentedly low tempcratures, high pressures and large single crystals. i. conduction in solids supraconductivtiv.—f ive metals are known to experience sudden well-nigh total disappearance of resistance at character- istic temperatures tp) superior to the lowest (1-5° ka) yet at- tained; viz., indium (to=3-41° k), tin (3-78°), mercury (419°), thallium (2-3°), lead (7-2°); also a tin amalgam (4-29°). in the supraconductive state existing below 7» the resistivity is less, probably much less, than ro~® as great as at 273° k. currents in supraconductive lead rings started by a transient e.m.f. (caused by annulling a magnetic flux originally linked through the rings) were observed to remain constant to within goboo part of an hour (this being deduced from constancy of their electrodynamic interaction). magnetic field pervading the con- ductor displaces 7) downward, tension (on tin ) shifts it upward. iall-effect vanishes with resistance, but thermal conductivity, elasticity, specific heat and (for lead) crystal lattice change little. effects of pressure, tension, alelting.—resistance decreases steadily with increasing pressure over the range o-12000 kg/cm? for 38 out of 44 metals (including a few metalloids) tested; in- creases steadily for 5 (li, ca, sr, sb, bi) and passes through a minimum for one (cs). the largest alterations from the values at zero pressure are 97% increase (i’), 72% increase (k), 82% decrease (sr); most changes are much smaller. tension usually increases resistance (to current-flow along the direction of stress), but there are at least three exceptions, two of which (bi, sr) are likewise exceptions to the usual rule for sign of the pressure-effect, while one (ni) is not. at melting the conductivity always changes in the same sense as the density. ohm’s law ceases to be valid when the current-densily in gold or silver surpasses 10% amp./cm?. single crystals (except cubic ones) show dependence of resist- ance upon orientation of current-flow; the characteristic values of resistance are that for currents along the axis of 3-, 4- or 6-fold symmetry, and that for currents in the basal plane. often, but not always, currents flowing perpendicularly to the planes of eisicst cleavage or slip encounter the greatest resistance. the variation of resistance with direction may be in a proportion as great as 9:4. the pressure-coeflicient of resistance varies rela- tively more than the resistance itself, and an instance is known (sb under certain conditions) in which increase of pressure in- creases the resistance to currents in some directions and de- creases it for those in others. cubic crystals are isotropic in conducting electricity; their conductivity is stated for very pure cu to exceed that of a polycrystalline mass, while for very pure w there is reported to be no difference. there is no adequate theory of metallic conduction; the data ac- quired since 1910 merely augment the evidence that the so-called ‘classical theory (of free electrons moving like atoms of a gas in thermal equilibrium in the interspaces between the metal atoms) is untenable. the rule that conductivity increases with pres- sure shows that if an analogous theory should be devised the electrons must be supposed to move within the atorrs instead of the interspaces; but the exceptions to this and other rules show that no simple theory can suffice universally. supraconductivity shows that the straight, free paths postulated in the classical theory cannot exist, for they would be 1,000 times as long as the longest straight line that can be drawn in a coiled supraconduc- tive wire. as there is no supraconductivity for heat, thermal and electrical conduction cannot be as intimately linked as was formerly believed. 698 photoconductivity—the extra current-flow occurring when certain non-metallic solids are illuminated while exposed to elec- tric field appears to be unusually simple in certain cases of single homogeneous crystals of substances which are good insulators in the dark and have high refractive indices (diamond, zns, hgs). if the light-intensity and the field are kept below certain limits, the primary effect of the light apparently consists in loosening electrons initially fixed in the lattice, one electron per absorbed quantum. these electrons flow towards the anode, leaving the interior of the crystal positively charged; a compen- sating process (apparently a creeping of electrons inward from the cathode side) eventually sets in, or may be hastened by infra- red light. similar effects occur in crystals of nacl in which free sodium has been isolated by x-ray irradiation, and in phos- phorescent solids, the excitation of phosphorescence evidently beginning with such detachment of electrons. for the conduction of electricity through gases, the reader should consult the article by sir j. j. thomson on gases, elec- trical properties of. (k. k. d.) ii. conduction in liquids the experiments of faraday, kohlrausch and hittorf demon- strated that the conductivity imparted to a badly conducting liquid such as water by the addition of a salt was due to the move- ment of the charged ions of the salt under the influence of the applied electromotive force. according to the older views a salt such as sodium chloride on solution in water underwent partial lonisation which would be expressed in the form of the equation nacl @ na+cl’ the fact that solutions of salt in different media exhibited differ- ent conductivities brought into prominence the effect of the sol- vent which might be interpreted as affecting the equilibrium of the ions and molecules— nacl+h.0 <2 na(h.0),+cl'(h,0), the conducting particles are accordingly not simple ions but ions with a solvate atmosphere around them. from an analysis of the heats of ionisation and solution of salts in water born has compiled the following table for heats of hydration of individual gas ions. ton heat evolution in ion heat evolution in + calories per gr. ion calories per gr. ion hs « « & . &, 262,600 cs, 74,000 bi. 110,000 cr 77,000 na 103,000 br’ 68,000 k. 82,000 tg 57,000 the thermal effects are large, indicating a marked affinity of ions for water. since the conductivity of a solution is dependent on both the mobility and number of such solvated ions, many investigations have been made to determine these values for solu- tions of different concentrations. the direct determination of ionic velocities under the influence of definite potential gradients or ionic mobilities has been made by lodge, whetham and steele, and values have been calculated from transport ratios by kohl- rausch and hittorf; that for the hydrogen ion in water is -003139 cm. per sec. under a potential gradient of one volt per cm. at 18° centigrade. the evaluation of the number of such ionsin a solution presents greater difficulties. if it be assumed that the ionic mobil- ities are independent of the concentration of the ions, then the molecular conductivity should be a true measure of the number of free ions in a solution of definite concentration, txperi- mental determinations indicate that the number of free ions com- puted from conductivity data is always less than the total salt present, a fact in accordance with our preconceived opinions in respect to a mass law equilibrium between hydrated salt and ions. if one gram molecule of a binary salt be dissolved in v litres of water and a fraction a be imagined as dissociated into ions, we obtain for the conditions of equilibrium between hy- a? sess drated salt and ions sag rtt k is the equilibrium —a constant, independent of the actual concentrations employed. conduction, electric further, the fraction of free ions which alone contributes to the conductivity can be determined from a comparison of the con- ductivities at various dilutions. at two dilutions we obtain the : a oa ae expression —=—where di, 2 are the conductivities and a1, a 2 ge the respective ionic concentrations, each divided by the concen- trations at which the determinations are made. this method of determining the number of ions in a solution yields a satisfactory constant for the mass equilibrium expression noted above in the case of weak electrolytes. in the following table are given the experimental data of kendall for the case of acetic acid dissolved in water. gis ss clay vv x a >< 100 {1 —a)v oe 13°57 6-086 1:570 18-45 54:28 12-090 3:118 18-49 217-10 23810 6-141 18-51 434°20 33°220 8-568 18-49 868-40 46-130 11-900 18-50 i,737°00 63-600 16-410 18:54 3,474:00 86-710 32-360 18°55 6,948:00 116-800 340'130 18-70 ot 387-700 ‘ 5 the accuracy of this dilution jaw has been confirmed for many hundreds of weak acids, bases and salts. for strong electrolytes on the other hand, that is, for electrolytes in which the conduc- tivity data would lead us to suppose that practically all the hydrated salt was present in the solution in the form cf the sol- vated ions—the values of k determined in this way are by no means constant, as is in evidence from the data of kohlrausch and maltby for aqueous potassium chloride at 18° centigrade. 9 a? gav 10k v x a>xioo i 98:27 75°65 2,350°0 2 102-41 78°33 1,434°0 5 107-96 83-10 815-4 10 112-03 86-24 540°5 20 115'75 89:10 364-2 50 119'96 92°34 222+1 100 122-43 94°24 154°2 1,000 127°34 98-02 43°5 10,000 129:07 99°36 15°4 it is claimed, however, that even strong electrolytes appear to obey the mass law at sufficiently great dilutions; the disturb- ing factor thus appears to be the concentration of free jons in the solution. if this view be admitted it immediately raises the question whether the premises on which these calculations of the ionic concentrations are made may be considered as correct. it was assumed firstly that the mobility of the solvated ion was always constant irrespective of the concentration; and secondly that all free ions of the same species possessed identical mobilities in solution, by the method of ionic migration developed by hittorf, it is possible to examine the ratio of the mobilities of the e " a u eye. 6 td] . cation and anion —. if the mobilities of each ion remain constant v over a range of dilution, or if their mobilities change equally with the variation in concentration, this ratio will remain un- changed. it is found that the relative mobilities of ions do in fact change with the concentration, as is indicated by the follow- ing data for the transport number nk of the silver ion in silver nitrate solution and the mobilities of the sodium and chlorine ions in sodium chloride at 18° centigrade. nacl agnos una vcl’ nk molarity io’cm/sec 10%cm/sec 0:42 0°532 o 450 690 1-00 0*500 0-000! 448 681 2-00 0-483 0-0010 440 279 4:00 0-473 0-o100 415 644 40-00 0°475 0-1000 360 592 oy ie i 0000 27 487 50000 153 285 this change in relative ionic mobilities with the concentration is indicative of marked changes in the ionic mobility of each ion. again, it is clear from a consideration of the mode of passage of an ion through a solution containing other ions that the “ mobility ” is conduction, electric no more than the average rate of progress in a linear direction by an ion which is being continuously deflected from its path by repulsion or attraction by neighbouring ions. these considerations have led to two diverse methods of attempting to explain the alteration in conductance with dilution of solutions of strong electrolytes. nernst and jahn assume that the law of mass action is fundament- ally correct, but that the active masses or effective concentrations of the molecules and ions present are affected by two factors, the degree of hydration and the electrostriction exerted by the dissociated molecules. others, especially bjerrum, milner, debye and fhliickel, reject the concept of a mass law equilibrium between molecules, in which a kation and anion are held close together possessing no power of relative movement, and ions which are all equally free in the sense that they can move independently of one another, 1.e., that all ions of one species possess identical mobilities. they assume that the interionic electrical attraction obeys the usual inverse square of the distance law, and that the mobility of any one particular ion wil! thus naturally depend upon the total concentration of ions present and their distances from the ion under consideration. a sharp dis- tinction between the terms ‘‘ bound into molecules" and “ freely movable as ions ”’ is therefore lost. we have noted that the heats of hydration of the ions are relatively great, and the view that each ion is hydrated, is supported by the parallelism which is found to hold between the temperature coeffi- cients of conductance and viscosity. attempts have been made in various ways to determine the number of molecules of water bound by each ion. these methods include determination of the transport ratios of the ions in the presence of a non-clectrolyte; from these values relative ionic hydrations may be evaluated. the development of these ideas, especially by debye and hiickel, has shown that the observed alteration in the conductivity of a salt such as potassium chloride with increasing concentration, can be calculated with reasonable accuracy over a relatively wide range of dilute solutions, but for strong solutions the agreement between theoretical and experimental values is by no means good. it appears probable that a second factor in addition to the interionic attraction or electrostriction, viz., the hydration of the ions amd its variation, has to be considered. varying results are obtained with minor modifications of method; thus we find values of ionic hydration ratios of a’: k varying from 2°8:1 to 7-5:1. asecond method involves the determination of some property which is taken as proportional! to the “ free ’’ water ina solu- tion. these include solubility determinations both of solids, liquids and of gases in salt solutions and the effect of neutral salts on catalytic activity. von hevesy assumes that gascous ions on solution in water will acquire a constant potential of 70 millivolts. since the potential of an ion is expressed by the relationship ve monovalent ions will acquire a radius on immersion in water of dielectric constant 81 a value at 2:8x10° 8centimetres. thus small ions will acquire a large wa- ter envelope; very large ions, on the other hand, may possibly coalesce together to form an ionic micelle. this view may be criticised in that the small hydrogen ion with a large water envelope moves with great velocity, and the potential of 70 millivolts assumed to be acquired by the ion is a value obtained by considering the rates of electric endos- mose and cataphoresis in colloid particles. it has been shown, how- ever, that the mobility of colloid particles is not affected so much by their charge, but rather by the magnitude of the electrokinetic po- tential, which represents but a fraction of the total potential differ- ence between the two phases and is in no way related to it. since water molecules are essentially small dipoles, orientation around a charged ion is to be anticipated, and since the molecule of water 1s somewhat elongated the effect of orientation in close packing {as opposed to the more open packing obtaining in ice) will be to effect a decrease in volume. in aqueous solutions the contraction amounts to 10-12 cc. per equivalent of univalent electrolyte ionised. conductance in non-aqueous solutions * fused metallic alloys are good conductors. whilst in solid metals the conduction of current takes place by the movement of electrons in a space lattice through the space lattice of the metal, this method of conduction does not appear to be the only method for fused metals, especially for liquid mercury amalgams. in sodium amalgams lewis noted the transport of alkali metal from cathode to anode. in fused salts of the heteropolar type the conductivity is high and faraday’s laws are obeyed. in these cases the undissociated solvent such as water is absent, and calculations on the deegrce of dissociation as determined from conductivity data must be misleading, the alteration in conduc- tivity being attributable to alteration in electrostriction and the formation of complex ions. increasing attention has been paid to the determination of the conductivity of salts dissolved in non-aqueous media. the close parallelism between the magnitude of the conductivities of a salt solution in various solvents and the dielectric constant of the medium 699 was noted by sir j. j. thomson and nernst. walden has suggested that the relationship between the apparent dissociation as meas- ured by conductivity methods and the dielectric constant may be expressed in the form r=(1—a)k ¥v where r is a universal con- stant and k the dielectric capacity of the medium. this apparent alteration in the degree of dissociation may, however, be ascribed to the alteration in the electrostriction, for the force between two charged ions varies inversely as the diclectric capacity of the medium. walden’s rule, however, cannot be considered as anything more than a qualitative expression indicating a close relationship between k and a, part of the discrepancies between the experimental data of walden and others with the simple theoretical expression may be ascribed to lack of precise information on the values for the dielectric constant. not only does the dielectric constant of a medium change with the frequency of the field which is employed to measure this property, but it 1s also affected by application of strong fields. again, evidence is accumulating that the dielectric constant for ma- terial in thin films is different from that in bulk; thus water kk =81 at 18°c. appears to possess a value of k =ca 6 in very thin films. in solutions of electrolytes it is clear that all these factors have to be taken into consideration. it is thus not surprising that the mass law expression which is found to hold for weak electrolytes in aqueous solutions but not for strong electrolytes likewise fails for electrolytes in non-aqueous solvents, as can be exemplified by the following data of cohen for solutions of potassium acetate in alcohol. v » k ii-4 8-28 "242 113-0 17-18 7055 i,120-0 27-00 ‘o14 3,520°0 29°20 -006 in dilute solutions where ionic migration can proceed without serious disturbance due to the effect of electrostriction the mobilities of the ions in various solvents will be determined to a great extent by the characteristics of the medium. thus we find that the ratios of the limiting conductivities of many salts in water and ethyl alcohol are identical with the ratios of the diffusion coefficients, as is noticed in the following data— salt ki ch,cook licl rt 1,0 xc,0h ost 0°33 0°33 dio dch,oh o33 ae 0°33 the conductivity of a weak electrolyte may in fact be greater in a medium of low dielectric constant than in a solvent of greater ionising powers owing to the increase in ionic mobility. if the mobility were governed entirely by the mechanical resistance suffered by a solvated ion moving through a homogeneous fluid of uniform viscosity, it might be anticipated that stokes’ law would be applicable from which ionic radii might be calculated. the investigations of cunningham and millikan, however, have indicated that stokes’ law breaks down for small particles. in spite of this failure a general relationship of the type jose n where a is the conductivity at great dilution and » the viscosity of the medium is found to obtain. in the following table are given a few of walden’s data for potassium iodide dissolved in various solvents at 25° centigrade. solvent n x mr water 000891 i5i°30 §=—6.1:350 glycol me - 0:16800 8-00 =: 1:3.20 glycerine . + so » 633000 0-35 2:220 l-ormamide 0:03230 26:30 0-849 formic acid 0-01620 65:00 _—+¥-050 iydrazine 5 0:009i 4 118-00 1-100 ethylene cyanide 0-:02490 35°50 0-800 two interesting examples of conductance in non-aqueous solvents may be mentioned. fused lithium hydride is found to be an elec- trolytic conductor in that the products of decomposition appear at the electrodes. it is found that the alkali metal appears at the cathode, the hydrogen at the anode; we must consequently assume that dissociation is effected to yield a hydrogen anion:— bil 2 11" - again, the solutions of the alkali metals and alkaline earth metals in liquid ammonia were found by kraus to yield good conducting blue coloured liquids. according to this investigator, two definite stages in dissociation can be determined; firstly, the dissociation of the small quantity of sodamide present in a sodium solution, viz., na nh; — nat+nh’. and secondly, the dissociation of the metallic sodium to yield a sodium ion and an electron. naxnh; “7 na’ynh;+eznhs 700 the tonic mobility of the amminated electron is 19-890, or some seven times greater than that of the sodium ion in the same solution, references.—f. kohlrausch and l. holborn, letivermdgen der flekirolyte, (4898); w. c. d. whetham, theory of solution (1902); r. lorenz, &lektrolyse geschmolzener saise, (1905-6); p. walden, der lesungstheorten (leipzig, 1910). (e. k. r.) conduit: see aqueducts. confucianism (see 6.907)}.— confucianism is a general term embracing the teachings of the chinese classics upon cosmology, the social order, government, morals and religion. while con- fucius has been associated with the system, he is not the founder of it, but is the transmitter of the teachings of antiquity and the editor of some of the classics. mencius (372-289 b.c.) inter- preted the work of confucius. confucianism was formulated in the han dynasty (206 b.c.-221 a.d.). beginning with the first century of our era the system came into contact with bud- dhism and underwent certain changes which were interpreted by chu hsi (1130-1200) and by wang yang ming (1472-1528). though the government of the manchu dynasty (1644-1912) made chu h<si’s commentaries the standard, the scholars attempted to restore the primitive teaching of confucius and the ancients. in this they were hindered by the impact of the west upon chinese culture. cosmology.—in cosmology confucianism starts out with the tao, the world ground, an impersonal cosmic energy and prin- ciple which produced the v7 and the vazg, the negative and the positive principles. these by their interaction produced heaven and earth and all beings. the social order evolved from the universal order or the tao. the models of government, social life and morals existed in the universal order as ideas or images. these were transmitted as symbols to the saints and the sages and interpreted and adapted by them to the needs of the people. government.—the government was modelled upon that of the patriarchal family, the country being regarded as a large family. the emperor was considered as appointed by heaven to be the father and the mother of the people and ruled as a benevolent patriarch. the conception of the state as an abstract entity was never developed. the emperor was assisted by the officials recruited from the people on the basis of a civil examination in the classics. they were arranged in ranks, each possessing cer- tain rights and duties and were bound together and to the em- peror by a rigid ceremonial. the emperor and officials united all the functions of government, being the priests, executives, the law-makers and the judges. the government was one of men rather than of laws. moral sysitem—the moral system started with the axiom that all men were by nature good, formulated by mencius. a corol- lary to this was the dogma that goodness is developed by the study of the classics. society was divided into five relations: ruler—subject, father—son, husband—wife, older brother— younger brother, friend—friend. the fundamental theory under- lying these relations was that of reciprocity expressed by the words “‘ what you do not wish done to yourself do not do to the other man.” the virtues were finally grouped under five: love, the root of all the others, corresponding to our word humanity in its old meaning; justice, which assigns to each one his place and his duties and rights in that status; reverence, through which the rights are acknowledged and the duties performed; wisdom, which discriminates between good and evil; sincerity, which 1m- parts reality to all. the outstanding virtue was filial piety, which also includes loyalty and is the outgrowth of reverence. as religion confucianism as religion was a mixture of nature worship and ancestor worship. there were three classes of sacrifices under the last dynasty; the great sacrifices, namely, heaven, earth, the imperial ancestors and the gods of the grain and the ground; the middle sacrifices, the sun, moon, certain cultural heroes including confucius and nature gods; the general sacrifices, performed entirely by the officials, including cultural heroes, nature gods and departmental deities. to the people were left their ancestors and gods approved by the state. the emperor as the high priest of the nation worshipped ifeaven at the winter solstice and earth at the summer solstice. the pur- conduit—congriega tionalism pose of the worship was the conservation and the perpetuation of this system. in china the establishment of the republic in 1912 brought with it far-reaching changes. the relation between heaven and the emperor upon which the government was based was aban- doned and the new idea that the people are the real rulers of china is being inculeated. confucianism ceased to be a state system, though certain practices have survived. it has become a church and is slowly trying to collect and organise its heritage. the new cult is being organised about confucius. religious toleration, however, is granted by the constitution and confu- cianism after over 2,c0o vears as the dominant state system is taking its place as one of the cults of china. bibliography.— james legge, the chinese classics (1861-72); e. faber, sysfematical digest of the doctrines of confucius, 2nd ect. (1902); chen huan-chang, the economic principles of confucius and his school (new york, 1911); articles, ‘ confucianism "’ and ‘‘ confu- cius,’ j. hastings, encyclopaedia of religion and ethics, vol. 4 (1911); d. t. suzuki, a brief iirstory of early chinese philosophy (london, 1914); hl. a. giles, confucianism and its rivals (london, 1915); sir charles eliot, jzindutsm and buddhism, vol. 3 (london, 1921); hu shih, zhe development of logical method in anctent china (1922); j. p. bruce, cha 2st, philosophy of iiuman nature (hsing li), (london, 1922); introduction to chu ist and the sung school of philosophy (london, 1923); a. forke, the world concep- tion of the chinese (london, 1925). (l. hs.) congo free state: sce belgian congo. congregationalism.— the outstanding features in the development of congregationalism during the first quarter of the 2zoth century have been an intensifying of the denominational consciousness and a strengthening of the tendency towards connectionalism., i. in the british dominions england and wales.—on its practical side this forward move- ment took the form of collecting £300,000 in order to establish the various organisations of congregationalism ona sounder financial basis, and to supply more adequate retiring pensions for aged ministers. the latter object was the main element in the scheme, proving conclusively that the congregational union is now more prepared than it was to recognise some corporate responsibility for its ministers. this point was further emphasised by certain new and more stringent regulations for the admission and recognition of ministers. the normal entry to the ministry is through a recognised college. failing this, exceptional cases may be provided for by a three years’ probation and periodic ex- aminations under the supervision of a county union. nothing here interferes with the autonomy of the individual church. churches are still at liberty to call whom they will to minister to them. but recognition by the unton and a share in the union grants and superannuation funds is only available for those who submit to the conditions which the union imposes. the churches generally have accepted these conditions which safeguard their interests as well as those of the ministers and establish the status of the ministry on a much more satisfactory footing. organisation—in 191g the country was divided into nine ad- ministrative areas called provinces and a moderator appointed over each area to act as adviser and “ father in god ” to the churches within it. the tentative scheme then adopted was after a few years’ trial amended in 1924. it was provided that the provinces should be formed by the grouping of county unions, and that a moderator, who might be either a minister or a lay- man, should be appointed for each such group. the duties of the moderators were clefined in the following terms:— the gencral duties of the moderators shall be: (2) to stimulate and encourage the work of the denomination within their own provinces, and to act as the friends and counscllors of ministers and churches. (b) to act as advisers with regard to all financial assistance from denominational funds. (c) to assist churches and ministers in all matters connected with ministerial settlements anil removals by personal action and by constant and regular conference with one another. this is not to be understood as excluding other means of effecting changes of pas- torates, but it is desirable that the moderators should be kept in- formed of any introductions effected so as to avoid overlapping. congregationalism n.b. whereas it may be considered fitting that the moderator attend the ordination, induction or recognition services tn his proy- ince, his presence shall not be deemed essential, nor shall he preside ex officio, but only when invited to do so. it was further provided that moderators shall act in concert with the county union executives and with special provincial committees elected ad hoc. moderators are to be appointed for periods of five years, and the following rules were laid down for their election:— the appointment of moderators shall rest with the assembly of the congregational union of england and wales, acting for the pur- poses of nomination through a joint committee consisting of (2) representatives of the province, not exceeding 14 in number, appointed by the provincial committee, each county union having at least one representative and () representatives of the congrega- tional union of england and wales, not exceeding 9 in numbcr, to be appointed annually by the council, on the nomination of the general purposes committee. | before being submitted to the assembly of the congregational union of england and wales the nomination made by the joint com- mittee with regard to a particular province shall be confirmed by a joint meeting of the assemblies or by a joint meeting of the executives of the county unions concerned {as may be determined by the pro- vincial committee), or where so desired by the provincial committee acting in their name. the general purposes committee shall have the general administration of the scheme and shall report annually to the council. it is perhaps too soon as yet to form any definite estimate of the result of these constitutional changes, but the fear that these would interfere unduly with the autonomy of the churches has not yet been realised. the system of moderators seems to be making for efficiency and closer co-operation. statistics —so far as numbers are concerned the congrega- tional churches have no great increase to report. there is a decline in the number of sunday-school scholars, and a distinct shortage of candidates for the ministry, while new chapels are not being built in sufficient numbers to meet the normal increase in population. at the same time there is a more hopeful spirit abroad. the forward movement has entered on a new phase. on the material and mechanical side it has been thoroughly successful. what is needed now is that this should be followed by a revival of faith, hope and self-sacrifice. conscious of this the churches are everywhcre girding themselves for a new mis- sionary campaign both at home and abroad. there has been a marked increase in derominational loyalty, and the churches are conscious of their unity and corporate responsibility as they have never been before. the two new publications, the con- gregational quarterly and the congregational church monthly, reached a paying circulation in a very short time and have con- tributed very materially to the maintenance and strengthening of the new denominational spirit. as to congregationalism over- seas, numerically little or no progress has been made. the churches in some cases have a struggle to hold their own. move- ment is rather in the direction of consolidation than of expansion. this has made for an increased efficiency and for a strengthening of the denominational consciousness. canada.—in canada the congregational churches, with a few negligible exceptions, are now merged along with the methodists and presbyterians in the united church of canada. this re- union is the culmination of negotiations and discussions which have been going on for some years. congregationalists have taken a leading part in the reunion movement. they have shown themselves willing to accept a central organisation and a closely-knit church fellowship, while safeguarding spiritual liberties. in the doctrinal basis of the united church they helped to secure that the declaration of faith accepted by the partners to the union should be purely declaratory and should not be made “an imposition upon any.” to them the union will bring a great accession of strength in social, evangelistic and educa- tional work. though their identity will be sunk in the united church the congregational churches of c.inada will continue to give their distinctive contribution to the religious life of the dominion all the more effectively through the union. their college at montreal, affiliated with others in the theological faculty of mcgill university, is doing fine work in training men 701 for the very varied types of ministry which the country requires. australia.—congregationalism in australia has not kept pace with the growth of population. in spite of its freedom and adaptability it has made less progress than the more closely or- einised churches. it maintained too long an individualist type of independency and rather lived on the reputation of certain jarge and prosperous churches led by men of outstanding ability. but the general level of the ministry is higher than it ever was, and with three colleges in sydney, adelaide and victoria it should not be difficult to maintain it. the congregational unions foster a sense of corporate responsibility among all the churches. the down-town and country churches now feel them- sclves part of a living organism and they and their stronger brethren stand or fall together. the establishment of provident, sustentation and building funds has done much to increase the denominational consciousness and makes for efficiency and home missionary enterprise. the failure of the recent negotiations for reunion among the australian churches may prove a blessing in disguise. it is said that congregationalism now breathes more freely and is preparing to give itself more heartily to its distinc- tive witness. the difficulties are very great in a country where practical materialism and religious conservatism seem to go hand in hand. but these very difficulties constitute a challenge and an opportunity, and there are many indications that the congregational churches are alive to the need and are preparing themselves to meet it. south africa.—the congregational problem in south africa is much complicated by the existence of native and coloured churches. these greatly outnumber the white churches, and since the withdrawal of control by the london missionary society, have tended to interpret their independency very literally. but guidance and fostering are supplied partly by the white churches, which have to find men for administrative posts and most of the money, and partly by the colonial missionary society. the congregational union of south africa now com- prises all the churches under a central organisation and is creating a new sense of corporate fellowship and responsibility. it is tackling the educational problem among the natives, train- ing teachers and preachers and initiating social work. other unions.—in the smaller congregational unions of nova scotia, british guiana, new zealand, jamaica, tasmania and newfoundland, the new spirit of fellowship, co-operation and denominational responsibility is making itself felt to the great advantage of the churches themselves and to the increase of their capacity for aggressive work. they represent a new and very effective type of federated independency. (w. book) it. in the united states the years since 1910 have been one of the most formative and significant periods in the history of the congregational churches in the united states. in point of institutional development the following table shows what has taken place: churches 5,680 members 578,995 benevolence s 3:1 124520 $ ilome expenses . 19,507,607 the decrease in the number of churches from roro, the year of maximum since 1620, is due to the closing of a large number of small congregations, often by federation or union. the increase in membership and benevolent gifts is noteworthy. administration.—the ideals of congregational church govern- ment are the independence of the local congregation and the fellowship of the independent churches for mutual counsel and for the prosecution of those enterprises which no single church alone could compass. harmonious balance between these two principles involves and assures the symmetry and success of the whole plan. the years to10o—-26 have witnessed a striking development of the fellowship of the churches. ‘this appears in the growth of the iniluence of the state conferences and the 702 larger function of the state superintendent, not merely because of counsel and financial support given to the small or missionary- aided congregations, but also through increasing co-operation in the affairs of the larger and self-supporting churches. in effecting pastoral relations, organising and carrying out their own com- munity programmes and in all matters of policy, the churches have come to look for guidance to the superintendent and also, through him, to the board of directors, of the state conference. this service is rendered without assuming any rights of judicature, and it issues in a gratifying increase of practical efficiency. national organisation.—the development of the national organisation of the congregational churches has kept pace with that of the state units. the effort to perfect closer organisation, cut down overhead cost, and increase the community service of the churches has been strongly influenced by similar move- ments in the economic world. after a period of careful study by a commission chosen for its representative character, the first step in advance was taken at kansas city in 1913. the na- tional council was given larger functions in the work of the church, still safe-guarding the autonomy of the individual con- gregation. a general secretary was chosen to represent the churches of the nation in their relations with smaller congrega- tional groups, other denominations and ininternational relation- ships. the various societies through which the churches had carried on their missionary work were more closely integrated with the national council. again, after intensive study by a commission, new plans were adopted by the national council in 1925, by which the work of the denomination is divided into two groups, home and foreign, and the administrative costs are further simplified. doctrinal position—the congregational churches always have laid more emphasis upon their covenant with god and with one another, entered into in order to constitute church membership, than upon formal creeds. all congregational creeds have been looked upon as platforms for action and testimonies as to faith generally accepted rather than as dogmatic statements and tests. no single statement can be indicated as the author- itative creed of all the congregational churches, since each con- gregation adopts its own creed and there is wide variety. during a period of intense doctrinal debate, which has proved divisive in other bodies of american protestantism, the congregational churches have not been seriously disturbed. all shades of opin- ion are represented amorfg the clergy and laity: their deepest unity seems to be in their worship and their programmes of service. they occupy in general a liberal evangelical position. interdenominational movements towards comity and unity have been shared largely by the congregational churches and their missionary programme has been sustained with growing power and enthusiasm. (o, d.)