In the early 18th century, just two theatre companies were allowed to perform serious drama in London – at Lincoln's Inn and Drury Lane both of which were in receipt of Letters of Patent from Charles II.
After putting on a long-running and successful production of The Beggar's Opera, John Rich, actor and manager at Lincoln's Inn, found himself with enough money to build a whole new, bigger theatre. He took a 61-year lease on a site in Covent Garden, not far from his rival on Drury Lane, and commissioned Edward Shepherd to design and build it, at a cost of £5,600.
The building would be financed by an 18th century form of crowdfunding. Fifty shares of £300 each would be issued; each shareholder would receive free entry to performances at the theatre, and would be assigned a 1/50 share of the freehold. The building would then be leased back to Rich, who would pay each subscriber a rent of two shillings for each night there were performances.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
On average, there were 170 performances a year, meaning subscribers would get an income of £17 a year – an annual return of almost 5.7%. All the shares were sold, and proved so popular that a secondary market in them sprang up. One changed hands in 1774 for £345.
Depending on how ardent a theatregoer you were, the free entry was quite a perk, too. The cheapest seats in the gallery cost a shilling; it cost two and six to sit in the pit, and five shillings to sit in one of the 55 boxes.
The theatre opened on this day in 1732 with a performance of The Way of the World by William Congreve. Takings came to £115. It initially concentrated on staging plays, but ballet and opera featured too – indeed, George Handel wrote many of his operas specifically for the theatre.
The building burned down in 1808, and a new one was built. When that opened in 1809, the admission price was raised from five shillings to seven. The theatre-going public were outraged, and rioted. The second theatre burned down in 1856, and the third and current theatre opened in 1858.
The Theatres Act of 1843 deregulated the market for theatres, and new playhouses soon sprung up in competition. In 1847, it was decided to dedicate the theatre solely to opera. It was renamed the Royal Opera House in 1892.
-
Most expensive street in Britain to buy on has houses with '£10m average asking price', Rightmove findsNews Rightmove found Buckingham Gate, close to Buckingham Palace, was the most expensive street in the country. Do you live near one that's been included on the list?
-
Smaller companies: starting to turn?The long-awaited turnaround in smaller companies is unlikely to happen just because shares are lowly-valued. However, an improving economic and interest rate backdrop could spark renewed interest in the sector. M&A activity is also providing support for the smaller companies sector
-
31 August 1957: the Federation of Malaya declares independence from the UKFeatures On this day in 1957, after ten years of preparation, the Federation of Malaya became an independent nation.
-
13 April 1960: the first satellite navigation system is launchedFeatures On this day in 1960, Nasa sent the Transit 1B satellite into orbit to provide positioning for the US Navy’s fleet of Polaris ballistic missile submarines.
-
9 April 1838: National Gallery opens in Trafalgar Square
Features On this day in 1838, William Wilkins’ new National Gallery building in Trafalgar Square opened to the public.
-
3 March 1962: British Antarctic Territory is created
Features On this day in 1962, Britain formed the British Antarctic Territory administered from the Falkland Islands.
-
10 March 2000: the dotcom bubble peaks
Features Tech mania fanned by the dawning of the internet age inflated the dotcom bubble to maximum extent, on this day in 2000.
-
9 March 1776: Adam Smith publishes 'The Wealth of Nations'
Features On this day in 1776, Adam Smith, the “father of modern economics”, published his hugely influential book The Wealth of Nations.
-
8 March 1817: the New York Stock Exchange is formed
Features On this day in 1817, a group of brokers moved out of a New York coffee house to form what would become the biggest stock exchange in the world.
-
7 March 1969: Queen Elizabeth II officially opens the Victoria Line
Features On this day in 1969, Queen Elizabeth II took only her second trip on the tube to officially open the underground’s newest line – the Victoria Line.
