Wessington Springs herald. (Wessington Springs, Aurora County, Dakota [S.D.]) 1883-1891, 1891-09-04
HACKED BY MILLIONS,
3kJT SOUELCHED BY YANKEE
SHREWDNESS.
Blooming Britishcrs and Willy Brazilians
Learn u Lesson from American Rubber
Men-The Same Game Tried Onco Too
Often-The Promoters Lose Heavily.
Tho Rubber syndicate Coilapses.

The great rubber syndicate OF Para,
New York, and London has collapsed,
and John c. Gonalcv Wanna, alias the
Baron de Gomderz the bngbear OF tho
trade, has once more been defeated in
an attempt t. corner the worlds supply
of crude rubber. This time the loss will
TALL chiefly on bankers OF Rio and Lon
don, who were invcigled into tho Earon's
latest sche g The syndicate represent
ed by Mir. Wanna was organized under
the title Compania du Gran Para. tn
the Baron as manager. The head .uar-
ters OF tho concern are in Para, with
branch Offices in London, Paris, and
New York Although the syndicate,
during the last nine months. obtained
possession OF 90 per cent. of the avail
able supply OF the world; the capital
said to be S25, 900, OOO-under its control
is not sufficient to hold this and also to
buy up the new crop now coming into
Para from the forests Of Brazil The re-
suit is that the syndicate could not cover
its margins with the London houses
with which the Baron made his deal two
months ago
Singlchurst & Co. and the Barring
Bros. were mentioned as the principals
In the deal, but there were other firms
also that held stock on margin for the
syndicate, and 1t is they who first began
to SELL
The unloading of 100 tons on the
market was followed by q general break,
and rubber, which had been forced up
to IS cents by the syndicate, fell to 81
cents. or 80 pence British money. It
was severe blow to the Brazilian bank
crs and London capitalists. When tho
rubber mel chants of the United States
noted the large quantities of rubber
coming into Para they prepared for a
break. They had previously kept out
Of the market and sold all the rubber
they had in stock. Only three weeks
ago goo tons were shipped to Liverpool
from the syndicate, the shippers acting
on the policy of giving Baron dc Com
deriz rope enough to hang himself.
Rubber manufacturers here curtailed
their requirements in every possible
way, and some OF them temporarily
closed their establishments Thus they
pricked the second great rubber bubble
OF decade.
Tho manufacturers of the United
States were caught by the Baron In 1883,
but they crushed him by closing down
their factories after rubber had been
forced up from 40 cents to 81. Is per
pound. They do not suffer now by the
collapse Of the willy Brazilian, but the
English and Brazilians do. When the
Baron's bankers saw the policy being
pursued by the United States importers
and manufacturers they called on him
to cover his margins. Had the syndicate
been able to carry out Its plans it would
have made many millions Of dollars. but
as soon as It's hackers refused to carry
stock any longer tho market was broken
and they began to sell. Ono small firm
In London that held fifty tons called on
the Baron to cover his margins, and he
failed to do SO. Then another small
holder unloaded like quantity. This
was followed by Barring Bros and Sin
glehurst & Co., and then the run on the
market became general. Rubber fell
from "a cents to Ga cents, 400 tons being
unloaded at the latter figure
AT the opening of the years business
the outlook of the United States rubber
manufacturers was not bright, as the
Baron's speculations had forced rubber
up 80 high that there was no profit to be
made. Even the druggists supplies and
surgical instrument trades felt the effect
OF the Baron's manipulations of the
market The rubber-shoe trade suffered
most severely. as more than half the
crude rubber imported here is used by
rubber shoe men. The present decline
Is q gain tor the entire trade, and the
Earon's scheme, which was directed
chlofly against our manufacturers.
lnures to their advantage