1^64 MANUFACTURES OF RUSSIA. 



year be 2,000 roubles, tlieu the fundamental current expense of exploitation, not 

 inoluding- the expense of administration, percentage on capital et cetera,, -will be 5 million 

 roubles per annum, which, with a production of 250 to 300 million ponds, 

 makes the cost of production per pond of naphtha one and two-thirds to two 

 kopecks, whence it is clear that a market price of two and one-half kopecks 

 at the wells in 1891 cannot repay the producers. It is evident that the price of raw 

 naphtha must rise in the course of time. 



Besides open pits capable of holding as high as 25 million pouds, for storing and 

 settling the naphtha, there are in the neighbourhood of the wells covered earthern 

 reservoirs having a total capacity of 6 million pouds, stone and brick reservoirs hav- 

 ing a total capacity of 5 million pouds, wooden reservoirs of 1 million pouds capa- 

 city, and iron reservoirs of 5 million pouds capacity. Altogether, up to 40 million 

 pouds can be stored at the wells, but as a rule the amount stored at one time is less, 

 because the works situated about Baku buy up the naphtha for converting it into 

 kerosene, and other products. The naphtha is transported from the wells to the works 

 at a distance of from 8 to 17 versts, by means of 19 naphtha pipe lines, while there 

 are 6 pipes for supplying sea water from Baku to the wells, and for feeding the boilers 

 situated there. 



The total length of these pipe lines is about 250 versts, and the cost of pump- 

 ing the naphtha through them is generally about one-half kopeck per poud. 



In order to characterize the position of the naphtha industry in the Caucasus, 

 it will be enough to mention that in 1890 there were 135 works in action, yielding 

 about 69 million pouds of illuminating oils. Out of these works, one belonging to 

 Nobel Brothers and Co. produced about 18 million pouds of kerosene ; four works, belong- 

 ing to Tsatourov, The Caspian-Black Sea Company, Tagiev, and Shebaev and Co., each 

 turned out from 4 to 5 million pouds, and eight works, over one and one-half million 

 ponds each. Thus, 13 Avorks yielded about 51 million pouds of kerosene, and conse- 

 quently the remaining 122 belong to the order of small concerns. But these small 

 works, especially in former years at the beginning of the eighties, had a great im- 

 portance, because they did not permit the formation of any monopoly, and by their 

 competition with the large works helped much towards lowering the price of the Cau- 

 casian naphtha products. The part played by the large concerns, especially in ex- 

 tending the market and in erecting stores, is naturally also very important; and 

 thus there is that combination and competition of small and large producers, 

 which is the most desirous for the successful growth of the industry. In speaking 

 of the treatment of the naphtha at the works, it should be mentioned that, besides 

 the 135 in the Caucasus, there are 32 in the interior of Eussia, along the Volga 

 near Yaroslav, in the neighbourhood of Moscow, and St. Petersburg, which either 

 treat the raw naphtha * or the refuse, but their total production is far less than that 

 of the Baku works, although their number increases every year. These few words 

 on the Eussian naphtha industry must be supplemented by a few data respecting 

 the foreign export of naphtha products, aud the customs and excise dues levied upon 

 them. 



■'■ The export of raw naphtlia from Baku to the Volga is equal to 5 to 6 million - 

 pouds per annum. 



