— 7 — 



Our Austrian branch-firm at Bodenbach has had an exceptionally 

 gratifying year, inasmuch as our sales in all parts of the Austro-Hungarian 

 monarchy have shown a considerable increase compared with the previous 

 year. A large number of our soap-making customers have recently ex- 

 tended their sphere to the manufacture of toilet-soaps and perfumery, 

 hence the interest shown in our specialities, especially in those which 

 come under the heading of scents, is steadily increasing. In the liqueur- 

 industry complaints continue to be loud, and although for the present the 

 introduction of an increased spirit-tax has been deferred, a feeling of in- 

 security and a want of enterprise are [perceptible in this branch which 

 must have an impeding effect upon the development of business. The 

 craze for buying "cheaply" is often responsible for conditions that are 

 by no means beneficial to industry, and that sooner or later may exact 

 a heavy penalty from all concerned. The manufacture of pharmaceutical 

 specialities appears to be making great headway, especially in Hungary, 

 and our relations with this industry have undergone a marked increase 

 in the course of the past year. Speaking generally, the prospects of 

 business in the Austro-Hungarian monarchy are most satisfactory, in par- 

 ticular because, as we have already had occasion to point out, the power 

 of discrimination in respect of quality is steadily becoming more evident, 

 at any rate among the larger buyers. We welcome especially the appear- 

 ance of the 1 st volume of the Book of Foodstuffs {Codex Alimentarius 

 Austriacus), published under the auspices of the Government. This work 

 is chiefly intended as a guide to the application of the Law on Foodstuffs 

 of 16 th January 1896, its purport being to instruct manufacturers, traders, 

 and, last but not least, the Judicial Powers, with regard to what is and 

 what is not permissible in the widely-ramified domain of the preparations 

 of alimentary substances. It is to be hoped that the appearance of the 

 subsequent volumes will not be too long delayed. Our Bodenbach pre- 

 mises have for some years been insufficient to enable us to cope with 

 our increased output, and a considerable extension has therefore been 

 decided upon. A commencement has already been made with this under- 

 taking, and fortunately no interruption is to be feared in our work. 



A highly satisfactory progress has to be recorded in our relations with 

 France, where our turnover has continued to show a considerable increase 

 last year. Unfortunately the abuses in the treatment of imported goods 

 at the French custom-houses, to which we referred in our last Report, 

 have not only undergone no improvement, but lately they have even 

 assumed a character of contemptible quibbling, such as we have hardly 

 ever before experienced in our relations with any foreign country. We 

 admit that where ad valorem duties are the rule, the customs-officers are 

 justified in keeping a sharp lookout for incorrect declarations, but their 

 official zeal should surely be kept within reasonable bounds, in order that 

 the mutual feelings of goodwill between two neighbouring countries, whose 



