In the second place he did not want anything to interfere with his Congo rubber industry. Now we get to the real reason, perhaps, why he sent for Ryan. In conjunction with the late Senator Nelson W. Aldrich, Ryan had developed the rubber industry in Mexico, by extracting rubber from the guayele shrub which grows wild in the desert. Leopold knew this—he had a way of finding out about things—and he sought to kill two birds with one stone. He wanted this Mexican process and at the same time he needed capital for the Congo. In any event, Ryan went to see him and the Forminiere was born.
There is no need of rehearsing here the concrete details of this enterprise. All we want are the essential facts. Leopold realized that the Forminiere was the last business venture of his life and he projected it on a truly kingly scale. It was the final chance for huge grants and the result was that the Forminiere received the mining and mineral rights to more than 7,000,000 acres, and other concessions for agriculture aggregating 2,500,000 acres in addition.
The original capital was only 3,000,000 francs but this has been increased from time to time until it is now more than 10,000,000 francs. The striking feature of the organization was the provision inserted by Leopold that made Belgium a partner. One-half of the shares were assigned to the Crown. The other half was divided into two parts. One of these parts was subscribed by the King and the Société Generale of Belgium, and the other was taken in its entirety by Ryan. Subsequently Ryan took in as associates Daniel Guggenheim, Senator Aldrich, Harry Payne Whitney and John Hays Hammond. When Leopold died his share went to his heirs. Upon the death of Aldrich his interest was acquired by Ryan, who is the principal American owner. No shares have ever been sold and none will be. The original trust certificate issued to Ryan and Guggenheim remains intact. The company therefore remains a close corporation in every respect and as such is unique among kindred enterprises.
II
At this point the question naturally arises—what is the Société Generale? To ask it in Belgium would be on a par with inquiring the name of the king. Its bank notes are in circulation everywhere and it is known to the humblest peasant.
The Société Generale was organized in 1822 and is therefore one of the oldest, if not the oldest, joint stock bank of the Continent. The general plan of the famous Deutsche Bank of Berlin, which planted the German commercial flag everywhere, and which provided a large part of the bone and sinew of the Teutonic world-wide exploitation campaign, was based upon it. With finance as with merchandising, the German is a prize imitator.
The Société Generale, however, is much more than a bank. It is the dynamo that drives Belgian enterprise throughout the globe. We in America pride ourselves on the fact that huge combinations of capital geared up to industry are a specialty entirely our own. We are much mistaken. Little Belgium has in the Société an agency for development unique among financial institutions. Its imposing marble palace on the Rue Royale is the nerve center of a corporate life that has no geographical lines. With a capital of 62,000,000 francs it has piled up reserves of more than 400,000,000 francs. In addition to branches called "filial banks" throughout Belgium, it also controls the powerful "Banque pour l'Etranger," which is established in London, Paris, New York, Cairo, and the Far East.
JEAN JADOT
One distinctive feature of the Société Generale is its close alliance with the Government. It is a sort of semi-official National Treasury and performs for Belgium many of the functions that the Bank of England transacts for the United Kingdom. But it has infinitely more vigour and push than the Old Lady of Threadneedle Street in London. Its leading officials are required to appear on all imposing public occasions such as coronations and the opening of Parliament. The Belgian Government applies to the Société Generale whenever any national financial enterprise is to be inaugurated and counts upon it to take the initial steps. Thus it became the backbone of Leopold's ramified projects and it was natural that he should invoke its assistance in the organization of the Forminiere.