The German Discussion About Past and Future of Company Law Before 1900 Albrecht Cordes, Frankfurt A.M
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• The German Discussion about Past and Future of Company Law before 1900 Albrecht Cordes, Frankfurt a.M. If you should at some occasion travel to central Sweden, I recommend that you visit the spectacular site of the copper mines of Falun in the province of Dalarna. These mines were active since the 10th century, and in their heyday in the 17th century 2/3 of the world’s copper production came from there. The oldest documents concerning the mine are share certificates from 1288, eight in number, namely for some of the Swedish bishops. And because of these certificates, Stora Kopparberg, “the big copper mountain”, is presented to the tourists as “the oldest stock company of the world”. I don’t bring this up in order to question the Swedish tour guides but rather because I am interested in how my predecessors, the German professors for civil law and legal history from the late 19th century, would have classified the mine in Falun, and then Carlo will have to decide if mining companies classify as “financial institution” and therefore deserve further examination within this project. If you look closely you will find that I changed the title of my paper: Instead of “past and present” I will speak about “past and future” of company law. The change may be small but it is significant because it explains the role attributed to history in the scientific program of LEVIN GOLDSCHMIDT and his school. They studied history not for its own sake but as an integral part of their occupation with the present and future law: history had to contribute to the improvement of trade law and all other economically relevant fields of law. This conviction earned them the name “Historical school of commercial law”, and they worked alongside with the Historical school of economics and their figureheads GUSTAV VON SCHMOLLER and later JOSEPH SCHUMPETER. It has even been suggested that they were the predecessors of the “New Institutional Economics” which today are in everybody’s mind. GOLDSCHMIDT and his school themselves were indebted to the German Historical School of KARL FRIEDRICH EICHHORN and FRIEDRICH CARL VON SAVIGNY from the beginning of the 19th century, and we will return to similarities and differences between these historical schools. In this paper, I will proceed in four steps. First, the context of this Historical School shall be described briefly, then their leading personality, LEVIN GOLDSCHMIDT, shall enter the scene with his monumental but uncompleted “Universal History of Commercial Law” under his arm, and after him the slightly lesser known author of a thinner book, KARL LEHMANN, shall take the floor. He examined the history of stock companies before the Code de Commerce of 1807, and that seems to be a subject very closely related to the “Financial Institutions of the 12th–18th centuries” which this workshop wants to explore. I will end with some suggestions the look at GOLDSCHMIDT and LEHMANN may contribute to our common subject. 1. The Historical School of Commercial Law The 19th century was the period when commercial law was established as an academic subject. Before 1800 the few authors who treated commercial law did it mainly for practical purposes. Their readers were merchants rather than scholars of law. In Germany, things changed in the middle of the 19th • century, in a remarkable parallel to the legislative activities, reflecting, of course, the industrial revolution and the rise of the liberal bourgeoisie. In 1848 and 1861 the only memorable laws created by the German Federation were passed: The General German Letter of Exchange Bill, and the General German Commercial Code (ADHGB). Next came new codes regulating the Kapitalgesellschaften (limited partnerships), first the Aktiengesellschaft (1870, reformed in 1884) and then the newly invented Gesellschaft mit beschränkter Haftung (1892). The Dutch Wetbok van Kophandel from 1866 may serve as reminder that this wave of commercial codification in the second half of the 19th century was not limited to Germany. Nor was the accompanying flood of literature a purely German phenomenon as the article of EDMOND- EUGÈNE THALLER on the joint stock companies in France in the Ancien Régime1 shows. But the German lawyers certainly picked up the subject with remarkable speed. In the center of this development stands the work of LEVIN GOLDSCHMIDT and his followers: His journal, the Zeitschrift für das gesammte Handelsrecht (ZHR), and his Handbook of Commercial Law, including its historical introduction which developed into a history handbook in its own right. In my opinion, GOLDSCHMIDT was the best expert on medieval Mediterranean trade law of all times, unsurpassed until today. Please allow me to quickly introduce my hero: LEVIN GOLDSCHMIDT was a Prussian Jew from Danzig, founder and editor of the said Zeitschrift, which still today is one of Germany’s most prestigious legal journals. He was professor at Heidelberg, Leipzig and Berlin, where the first German chair for commercial law was created for him, and a judge at the Reichsoberhandelsgericht in Leipzig, the highest German court until 1879. As politician, GOLDSCHMIDT was a member of parliament for the National Liberal Party which supported BISMARCK in the first decade of the second Empire. GOLDSCHMIDT was the author of important legislative drafts, namely the so-called pre-commission for the German Civil Code (BGB). All in all GOLDSCHMIDT was one of the leading jurists of the Wilhelmian Empire. He died in 1897, the year when the new German Code of Commerce (HGB) passed the Reichstag.2 The HGB is deeply indebted to its predecessor, the said Code of Commerce of the German Federation from 1861. This ADHGB is described as GOLDSCHMIDT'S victory over his long-time rival HEINRICH THÖL, professor in Göttingen, who had advocated a more positivist character of the code. Under GOLDSCHMIDT'S influence, however, the code gave considerable leeway to trade customs. Thus it was opened to economic and cultural influences, and they, in turn, required comparative and historic studies in order to establish what those trade customs were. 2. Levin Goldschmidt and his Universalgeschichte des Handelsrechts (3rd ed. 1891) Once the code of 1861 was enacted, the time must have seemed right to start writing a comprehensive handbook, a plan which GOLDSCHMIDT pursued for the rest of his life. He was not able to complete the task, but with the help of the accompanying articles in his journal ZHR, he outlined his plan quite 1 EDMOND-EUGENE THALLER, Les sociétés par actions dans l'Ancienne France, in: Annales de droit commercial et Industriel Francais, Etranger et International 15 (1901), 183–201. 2 SUSANNE LEPSIUS, Art. Goldschmidt, Levin (1829-1897), in: HRG II, 2nd ed., 2012, Sp. 459–463; KARSTEN SCHMIDT, Levin Goldschmidt (1829–1897). Der Begründer der modernen Handelsrechtswissenschaft, in: HELMUT HEINRICHS u.a. (Hg.), Deutsche Juristen jüdischer Herkunft, 1993, S. 215–230; LOTHAR WEYHE, Levin Goldtschmidt. Ein Gelehrtenleben in Deutschland. Grundfragen des Handelsrechts und der Zivilrechtswissenschaft in der zweiten Hälfte des 19. Jahrhunderts. Berlin 1996[Dissertation]; GÖTZ LANDWEHR, Die Handelsrechtswissenschaft an der Universität Heidelberg im 19. Jh., in: Semper apertus, 600 Jahre Ruprecht-Karls-Universität Heidelberg 1386–1986, FS in 6 Bänden, hg. v. WILHELM DOERR, Bd. II: Das 19. Jahrhundert, 1985, S. 61–83 (zu Goldschmidt S. 73–81); WOLFGANG SCHÖN, Recht und Ökonomie bei Levin Goldschmidt, in: FS für Karsten Schmidt, hg. v. Georg Bitter u.a., Köln 2009, S. 1427–1446. • clearly. In sequence to SAVIGNY'S and EICHHORN'S Historische Rechtsschule, he was convinced that legal history – quite like comparative law – did not merely have explanatory value but was itself part of the law in vigour. But while SAVIGNY had used this point to argue against codification (and thus successfully postponed it), GOLDSCHMIDT took this position directly after a new code had been enacted to a good part under his influence. But even though, and like SAVIGNY, he saw codification with a certain amount of scepticism. He warned against the danger of cutting off and forgetting the past, because it was his conviction that all codification has the disadvantage to petrify legal development and to tear the connection between the law and its roots. GOLDSCHMIDT emphasized that even a codification was just a link in a chain of historical development.3 Thus GOLDSCHMIDT, like SAVIGNY, did not examine history for its own sake or for a better understanding of the roots of the law but as a part of the occupation with the contemporary law. However, in the 27 years between the 1st and the 3rd edition of the handbook, GOLDSCHMIDT'S conviction about the practical use of legal history seems to have faded. Apparently it had become easier for him to permit the occupation with history in its own right. The historical part, originally little more than an introduction, became longer from edition to edition, and by 1891, in the final edition, occupied an entire volume on its own. Only then, GOLDSCHMIDT introduced the name "universal history", "Universalgeschichte", into his concept. The book was of huge influence on the whole field of economic and commercial legal history and has never been replaced in the exactly 125 years since it was published. The influence was especially important in Germany, and here in Italy, thanks to the Italian translation “Storia universale del diritto commerciale” from 1913. But it also summed up the dynamic movement of the previous decades, and in a way marked the end of the era of this historical school. After World War I the central interest of German commercial law scholars shifted into other directions. [Offer to explain GOLDSCHMIDT’S understanding of “universal”.] Already with GOLDSCHMIDT, the turn towards universal history looks a little bit like a turn away from contemporary law.