Charles River Editors - The Dutch East India Company: The History of the World’s First Multinational Corporation

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A depiction of VOC ships

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An 18 th century depiction of the companys shipyard

The Dutch India Company

Whereas pepper has nothing in it that can plead as a recommendation to fruit or berry, its only desirable quality being a certain pungency; and yet it is for this that we import it all the way from India! Pliny the Elder

From classic grilled meat to exotic and savory 5-star dishes, pepper has long been the ultimate staple spice. While bulk pepper may be readily stocked in supermarkets and convenience stores today, there was once a time when the common spice was considered one of the most valuable commodities in the world. Merchants tripped over one another to get their hands on the tiny black beads, which live in colorful clusters of berry-like shells reminiscent of Christmas lights. They were so precious that an uncountable number of men crossed the turbulent and uncharted seas for them. In fact, the tropical spice was so highly sought after that blood was shed over the edible gold.

To many, the mention of maritime merchants evokes an imagery of growling pirates donned in their stereotypical hats and a colorful parrot perched upon their shoulders. These nautical rascals wander the high seas in search of treasure and adventure. Though that imagery may be inaccurate, the real life companies that once dominated international waters operated on a similar thirst for conquest and riches.

Perhaps the most famous or as many would put it, infamous of these naval corporations was the Dutch East India Company, also known as VOC. Established around the beginning of the 17 th century, this nautical behemoth of a corporation was determined to squeeze everyone else out of the market. Vested with the power to wage war and exterminate any who dared stand in their way, the rest of the world stood by as the unstoppable force took over the whole of international maritime trade. The company would crush its opponents on the way to the top, establishing a monopoly on the global spice trade that would not only rock the world but forever change the course of modern business history.

The East India Company: The History of the British Empires Most Famous Mercantile Company examines how the rabid consumer craving of a particular spice jumpstarted the legendary corporation, and how the Dutch East India Company rose to prominence through a brutal mix of financial acumen, merciless violence, and highly controversial business tactics. Along with pictures of important people, places, and events, you will learn about the Dutch East India Company like never before, in no time at all.

Every man thus lives by exchanging, or becomes in some measure a merchant, and the society itself grows to be what is properly a commercial society. Adam Smith

The earliest use of pepper dates back to 3000 BC in India, with some archaeologists pushing the date even further back. South Indians are believed to have been jazzing up their dishes with the seasoning since the Stone Age. Evidence from 1300 BC also hints at a trade relationship of sorts between India and Egypt. Peppercorns were found lodged in the nostrils of mummified pharaoh, Ramses the Great. This is yet another clue of how sacred the spice truly was in ancient civilization.

By the first century, the Romans had gotten into the blossoming international trade. Merchant vessels from the ports of Rome braved the rough seas to the southwestern coast of India. Shiploads of Roman-minted silver and gold were swapped for Indian cloves, cinnamon, sandalwood, diamonds, pearls, rubies and of course, pepper. The foreign spices were a huge hit in Alexandria, the trading hub of Rome. Pepper, along with other Asian spices and herbs, were used for medicinal purposes, such as disinfectant poultice creams and drinking syrups. The extract from the versatile spice was also found in balms and perfumed oils used for slathering around the neck and under the arms after baths.

Neighboring nations began to hone in on the spice and were anxious to dip their beaks into the growing trading pool. In 410, an army dispatched by the Visigoths, an ancient Germanic people, invaded Rome. To keep the invaders from destroying the city, Romans agreed to cough up vast quantities of gold, silver, silk, animal skins, and 3,000 pounds of pepper. The sum would not keep the Visigoths happy for long, as they went ahead and took control of the city, anyway. This was known as the Sack of Rome.

While imperial Rome crumbled, other nations swiftly swooped in on the gap in the market. Arab traders from the Middle East and Africa became the biggest players of the international spice game. Eager to keep their upper hand, they drove the price of pepper up and spread rumors to ward off their competition. Pepper-crazy explorers were warned that the plants, which were located in Indian groves and the Caucus Mountains, were guarded by swarms of lethal, poison-spitting serpents.

Arab traders were soon forced to share the spice trade with the influx of nations venturing out to sea. By the Middle Ages, pepper and other rare Asian spices had become associated with the European upper class, and as their popularity grew, it became a form of currency. Based on a German price table circa 1393, a pound of ginger could be exchanged for a sheep. A pound of saffron was about as valuable as a strong, healthy horse. Of all the spices, pepper was most commonly used for monetary exchange.

It cost Europeans and other foreigners a hefty 10 pounds of pepper up front just to trade with English merchants. Due to the coin shortage, taxes, tolls, and fines could be settled by peppercorn kernels. Instead of jewelry, china, or fine clothing, brides-to-be received pepper plants as dowry. Some tenants even paid their landlords with peppercorn rent.

By the end of the 13 th century, Venetian merchant traveler Marco Polo jotted down the fascinating ways foreigners across the world used their spices. Afghans drank delicious wines fermented from wines and a variety of spices, and seasoned their meat with salt and pepper. In Hangzhou, China, 10,000-lbs of pepper were brought into the city on the daily. Many believe it was Polo's memoirs that intensified the European interest in the spice trade.

A medieval depiction of Marco Polo

As time progressed, the reins of the spice trade would be repeatedly snatched by numerous hands around the globe. By the 14 th century, those hands belonged to Genoa, a city in northwest Italy. Once again, pepper became the most widely traded commodity in the up-and-coming trading hub. By the end of the 15 th century, over 400 tons of pepper was being imported into the neighboring city of Venice. Venetian pepper merchants made their profits by marking up the price of pepper by 40%.