August i, 1908.] 



THE INDIA RUBBER WORLD 



377 



Rubber Interests in Europe. 



CONSOLIDATION IN THE TRADE IN RUSSIA. 



WHAT is described by the Gummi-Zcitiing (Berlin) as a 

 "rubber trust'' is reported by that journal to have 

 been formed in Russia. As is well known the rubber 

 industry in Russia is chiefly in the hands of two great com- 

 panies, located respectively at St. Petersburg and Riga, though 

 several smaller rubber factories exist within the empire. As 

 the news reaches Germany, the two large companies have become 

 practically amalgamated, in connection with which some of the 

 less important concerns have been purchased outright. 



The report is that one-half of the capital stock of the "Prow- 

 odnik" firm at Riga, has been acquired by the Russian-Amer- 

 ican India-Rubber Co., of St. Petersburg, at a premium of 100 

 l)er cent. At last accounts the share capital of the "Prow- 

 odnik" was stated at 7,000,000 rubles [^=$3,605,000], while the 

 reserve funds stood at 7,187,903 rubles. At the annual meeting of 

 shareholders of the "Prowodnik" company, on May 16, one of the 

 executive heads of the Russian-American company was elected 

 a member of the board of directors. The Russian-.-\nierican 

 com|)any is capitalized at 8,000,000 rubles [=^$4,imooo], with 

 substantial reserves. 



The india-rubber industry in Russia had its beginning soon 

 after 1830, when Henry Kirstein started a small factory in St. 

 Petersburg. He had imitators from time to time, but none of 

 them persisted long, and in 1853 he was alone in the field. Again 

 there were newcomers, however, and Kirstein already had three 

 rivals when, in i860, the Russian- American India-Rubber Co. was 

 organized at St. Petersburg, with a capital of 500,000 rubles. The 

 new company finally absorbed Kirstein's factory and sucli new rub- 

 ber businesses as were started from time to time, and for years 

 held practically a monopoly in rubber goods in Russia. From 

 the beginning "galoshes" figured prominently in the products, but 

 gradually other lines have been added until now practically every- 

 thing in rubber for which there is any demand in Russia is made 

 at St. Petersburg. The export trade, especially in rubber foot- 

 wear, is large. The company have always been alert to make 

 themselves and their goods known, as an evidence of which was 

 tlie superiority of their exhibit at the Chicago World's Fair in 

 1893, to anything else in rubber seen there. 



Financially the St. Petersburg company seems always to have 

 been successful. They have paid dividends of 50 per cent, and 

 even higher, though for a few years past this rate has not been 

 attained. The dividend for 1907 was 25 per cent., which called 

 for a disbursement of 2,000,000 rubles [^$1,030,000]. A cor- 

 respondent of The India Rubber World writing from Europe 

 some years ago mentioned the selling of some shares in the 

 Russian-American company at 10,000 rubles — ten times the par 

 value. 



1905. 1906. 1907. 



Net profits rubles 1,013,495 1,750,148 1,714,571 



Dividend rate 8% 12% 12% 



Not only do these factories aim at supplying the Russians 

 with all their requirements in rubber goods, but so far as pos- 

 sible Russian materials are used. Of course they are obliged 

 to import their crude rubber, but not so with reclaimed. Both 

 the St. Petersburg and Riga companies have extensive reclaiming 

 plants built in the United States — the home of rubber reclaiming — 

 and embodying the latest practice. 



* * * 



Reference is made to two other Russian firms by the Gttmmi- 

 Zeitung. as follows: "It is reported as an assured fact that the 

 firm of Weyerbusch & Co., in Moscow, was bought up about two 

 weeks previously, and that the former proprietor had a large 

 share in the purchase of the 'Prowodnik' stock. The stock of the 

 Moskauer Gesellschaft fiir Gummiwaren-Manufaktur [Moscow 

 Rubber Works], whose shares have been unsaleable for a long 

 time past, have likewise been secured for the trust." The 

 Moscow company was referred to lately as having a capital 

 and reserves of about 2,000,000 rubles. 



Our contemporary remarks further: "The purchasing of crude 

 rubber supplies for the united manufacturing concerns will prob- 

 ably be centralized in the near future, and this undoubtedly will 

 greatly influence the crude rubber market, in view of the large 

 requirements of the consumers involved." 

 » * » 



We quote from a later issue of the Gummi-Zeitung: "After 

 we have twice published reports concerning the combination of 

 the Russian rubber goods manufacturers without having been 

 contradicted by any of the interested parties, the daily press is 

 now publishing a notice under the heading 'The Russian Rubber 

 Industry Not Formed Into a Trust.' In view of this notice we 

 would point out that our reports were based on authentic data. 

 If they were erroneous, the manufacturers mentioned in the same 

 would certainly have been the first to contradict them, and to ask 

 us to correct our statements. Their failure to do so constitutes 

 an indirect confirmation of the truth of our reports. 



"If the 'Prowodnik' firm has sent a refutation to the daily press, 

 this may likewise be explained by the fact that the reports in the 

 daily papers were diflferent from ours and wider in their scope. 

 While we merely stated that the St. Petersburg rubber company 

 had bought a majority of the 'Prowodnik' stock, the daily papers 

 reported that the 'Prowodnik' had ceased to be an independent 

 company in consequence of the aforesaid' combination. This is 

 certainly not in accordance with the fact, and the refutation of 

 this report by the 'Prowodnik' was, therefore, justified at least to 

 that extent. This refutation does not, however, deny the ex- 

 istence of the combination as such." 



The year 1888 saw the organization of a new rubber company 

 on an important scale at Riga, and in June of the following year 

 its factory was put in operation, since which time it has experi- 

 enced a constant growth in size, capacity, working force, and pro- 

 duction, while profits have been well maintained. This com- 

 pany has a long name in Russian which is not more briefly ex- 

 pressed in cither German or French, but it may be referred to 

 here as the Russian-French India-Rubber Co., or simply as the 

 "Prowodnik" firm, the latter term designating the suburb of Riga 

 in which the rubber works are located. Four thousand workers 

 are employed, and the production embraces footwear in very large 

 volume, general rubber goods, linoleum and asbestos. The net 

 profits and rate of dividends for three years have been : 



To THE Editor of The Ixdi.\ Rubber World: Answering to 

 your letter of June 30, we beg to say that we have only regulated 

 the annual production of galoshes betwen the two companies, 

 according to the quantity which probably can be placed in our 

 country. Yours truly. russian-american india rubber co. 



St. Petersburg, July ii, iqoS. 



NETHERLANDS. 



Ax important business in Rotterdam has been reorganized as 

 a British public company, under the style R. S. Stokvis & Zonen, 

 Limited with £375.000 [^1,824,837.50] capital authorized. The 

 business was founded in 1844 by the late R. S. Stok\'is, and four 

 years ago was formed into a private limited company under the 

 Dutch law — R. S. Stokvis & Zonen, Handelmaatschappij. The 

 business is in iron, steel, and hardware, the house buying chiefly 



