capital increase of 500,000 guilders on behalf of the Nederlandsche Handel-Maatschappij, making a profit of 13,000 guilders.

In March 1905, the branch once again sought the mandate for a Netherlands government issue, and headquarters in Paris authorised it to subscribe for its own account and for third parties, for an amount of up to 4 to 5 million guilders. This was a large sum of money, but the branch did not win the mandate on this occasion.

Corporate finance

In May 1882, the Amsterdam branch suggested to Paris management that it should seek involvement in a deal to purchase shares in the Stoomvaart- Maatschappij Zeeland (Zeeland Steamship Company), previously held by Prince Hendrik52 of the Netherlands, from his heirs, who wished to sell the stock. The transaction was estimated to be worth 2,160,000 guilders and it was planned that the branch s participation in the syndicate set up for the purpose would amount to between 300,000 and 400,000 guilders. The branch worked on the deal with the Nederlandsche Handel- Maatschappij. It was concluded in July, with the branch subscribing 300,000 guilders worth of stock for its own account and handling 350,000 guilders worth on behalf of other investors.

In 1897, the branch joined a number of other banks in the market in a syndicate set up to place bonds issued by the Nederlandsche Gist en Spiritusfabriek53 (Netherlands Fermentation Industries). A participation of some 100,000 guilders (i.e. 8% of the total transaction) generated close to 2,000 guilders in profit.

In 1899, the branch participated as part of a syndicate in a share and bond issue for the Hollandsche Stoomboot Maatschappij (Holland Steamship Company), investing the sum of 178,000 guilders. Two years later it took part in a similar share and bond issue on behalf of the Dutch-American Steamship Company, which later became the Holland Amerika Lijn (HAL), for an amount of 75,000 guilders.

In April 1902, the branch helped to found a company set up for the purpose of taking over the business of the three main tobacco brokers in Amsterdam54, underwriting the stock to the amount of 100,000 guilders.

In May 1903, the branch s proposal to help set up a surveying company for the purpose of exploring for salt deposits in the Twente region was authorised by Paris and the

52. Admiral Prince Hendrik of the Netherlands and Prince of Orange-Nassau (1820-1879), known as The Navigator , was, like his grandfather William I of the Netherlands, very interested in business. He was governor of the Grand Duchy of Luxembourg, which was at that time united with the Netherlands, from 1850 until his death.

53. Nederlandsche Gist en Spiritusfabriek, Koninklijke Gist en Spiritusfabriek and Koninklijke Gist Brocades, which merged into DSM in 1998.

54. In 1906 sales of tobacco from Sumatra, Java and Borneo brought in 80 million guilders. This was a large sum, much higher than the value of sales of the tea and spices which, like tobacco, was shipped to Amsterdam.

64 T H E H I S T O R Y O F B N P PA R I B A S I N T H E N E T H E R L A N D S