Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1889-05-04
THE BAKU OCTOPUS.
How the Rothschilds Are GobblIng the Oil
Trade of Russia.

How the RothschiIds Are GobbIIng the Oil
Trade of Russia.
North British Daily MALL
The great Paris firm of Messrs. Rothschild
seems to have seriously taken the Russian
petroleum trade into its meshes. evoking there
by the wrath of the patriotic Russian press
Messrs. Nobel still apparently maintain their
independent position, but the smaller firms are
gradually being drawn into the net of the great
French hnanciers who have already made
firm footing for themselves on Muscovlte SOIL
The Rothschilds export annually by rail on
their own account over 2500,0O0 pools
Zone pood, S6 pounds Engllsh) of petro-
leum, while no less than Al private
firms supply them by contract with
1S5OO,0O0 pools, in addition to which 100000
poods are sent by way Of the Volga, thus max
ing total expectation of 1850. 600 pools per
annum. Taking the total consumption of
petroleum in Russia at 20, 900, 600 poOds. and
the foreign exports Of other firms at l2,000,000
or S2,O0O, 600 pools in all, it would follow that
more than half of all the Russian petroleum in
the market is already in the hands Of the Roths-
childs. But this is only the commencement, as
1t is currently stated that ten more firms nave
quite recently concluded negotiations with the
Rothschilds. For all the petroleum which
the latter thus take on commission from the
smaller private producers, certain sum is
deducted for leakage, storing and so forth,
averaging Is copecks per pood, and amount
ing to nearly 25OO, 900 roubles per annum. The
whole OF this amount is not, of course, SO much
clear profit to the Rothschilds as the actual
expenses probably do amount to 1000, 900
rou6les; but the system is not good one for
the baku producers, whose position reminds
one somewhat of that of the Russian peasants,
who sell their corn in autumn to the landlords
at 3roubles the tchetvert, and buy it back again
in spring at B roubles for the same quantity.
does not suffice for the Rothschild firm, who
are using their best endeavors to acquire pos
session OF the petroleum district itself.
The hrm continues to receive offers from
many SOLID producers to take over their whole
business butu to the present the Rothschilds
have shown no great eagerness to do SO. The
reason of this disinclination is not that they do
not wish to augment their undertaking. but be-
cause they see further than the Russian firms
think. They ask themselves why they should
thus spend millions in order to buy up the more
important producers, since by SO doing they
would merely acquire ground already exhaust
ed with antiquated machinery and ancient
plant. 1t is far better for them to take their
money to virgin soil. By following such
policy they have already acquired about l20
acres OF land which has never been worked,
and where almost any amount of naphtha can
be obtained without any deep boring Thus
it appears that the petroleum industry is
rapidly becoming a pure monopoly; and
once the Rothschilds have made themselves
master of the market they will fill it with goods
of their own, and at their own price; and who |
then can say what will be the limit of their de-
mand- Already, says our correspondent, the |
Rothschilds have spollt the Russian petroleum |
trade by flooding the foreign markets with in
ferior articles from all sorts of producers. It |
will be quite impossible to compete with the |
American petroleum in this manner, and the |
Baku firms fear that the reputation of their
petroleum, which the great Nobel firm had done |
SO much to improve, will be very considerably
lowered. Great surprise has been expressed
among them, too, that the Minister of Finance |
should have opposed the passing of law last
year which was proposed to forbid the acqulsi-
ton Of petroleum land by foreigners.