224
CARL SMITH
Secretary of the On Tai Insurance Company. He remained at this post until his retirement in 1898.
During these years he was involved in many other business ventures and in community affairs. He was an enterprising entrepreneur and financier, as well as a prominent public personality.
The organisation of the On Tai Insurance Co was one step in the latter part of the 19th century of the intrusion of Chinese into areas of commerce and finance formerly monopolised by foreign merchants.
With the introduction of steam vessels into the China trade, more and more Chinese firms began to ship by them rather than by junks. Insurance as practised in Western trade was not a feature of traditional Chinese business methods. The more progressive Chinese merchants, however, realised its value. They began to patronise the established marine and fire insurance companies.
These insurance companies were profitable ventures and paid substantial dividends to shareholders. The Chinese, however, found it difficult to acquire shares. They were shut out. The excuse was given that the companies could not determine the financial standing of prospective Chinese shareholders because of the secrecy and complicated arrangement of their firms.
In 1871 a group of Chinese merchants in Hongkong secured the services of the American firm of Olyphant and Co to assist them in organising the Chinese Insurance Company and in providing foreign management for it. At its organisation the board consisted of five foreign merchants and two Chinese.
The press recognised its formation as a revolutionary move in the balance between Chinese and foreign business in China. "The step will mark an important era in the history of commercial affairs in China; as there can be very little doubt that the plan will be followed in other matters besides insurance. It is already well known that the Chinese merchants are large supporters of some of the most important companies, and their adoption of the plan of organising companies consisting avowedly chiefly of Chinese
224
CARL SMITH
Secretary of the On Tai Insurance Company. He remained at this post until his retirement in 1898.
During these years he was involved in many other business ventures and in community affairs. He was an enterprising entre- preneur and financier, as well as a prominent public personality.
The organisation of the On Tai Insurance Co was one step in the latter part of the 19th century of the intrusion of Chinese into areas of commerce and finance formerly monopolised by foreign merchants.
With the introduction of steam vessels into the China trade, more and more Chinese firms began to ship by them rather than by junks. Insurance as practised in Western trade was not a feature of traditional Chinese business methods. The more progressive Chinese merchants, however, realised its value. They began to patronise the established marine and fire insurance companies.
These insurance companies were profitable ventures and paid substantial dividends to shareholders. The Chinese, however, found it difficult to acquire shares. They were shut out. The excuse was given that the companies could not determine the financial standing of prospective Chinese shareholders because of the secre- cy and complicated arrangement of their firms.
In 1871 a group of Chinese merchants in Hongkong secured the services of the American firm of Olyphant and Co to assist them in organising the Chinese Insurance Company and in providing for- eign management for it. At its organisation the board consisted of five foreign merchants and two Chinese.
The press recognised its formation as a revoluntary move in the balance between Chinese and foreign business in China. "The step will mark an important era in the history of commercial affairs in China; as there can be very little doubt that the plan will be fol- lowed in other matters besides insurance. It is already well known that the Chinese merchants are large supporters of some of the most important companies, and their adoption of the plan of organising companies consisting avowedly chiefly of Chinese
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