The true northerner. [volume] (Paw Paw, Mich.) 1855-1920, 1891-09-02
The Rubber syndicate Coiiapscs.

The great rubber syndicate Of Para,
New York, and ondon has collapsed,
and John c. Gonalev Wanna, al as the
Baron de GomderiZ. the b gbear OF the
trade, has once more been defeated in
an attempt To corner the worlds supply
of crude rubber. This time the loss will
fall chiefly on bankers OF Rio and Lon1
don, who were inveigled nto the Baron's
latest schele The syndicate represents
ed by Mr.. Wanna was organized under
the title Compania du Gran Para, tn
the Baron as manager. The head iuar-
tiers OF the concern are in Para, with
branch offices in London, Far S. 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 So, 600, 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 Bra il. The re-
suit is that the synd cate cou not cover
its margins with the ondOn houses
with which the Baron maze his deal two
months ago
Singlehurst q 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 it is they who first began
to sell.
The unloading of 100 tons on the
market was followed by general break,
and rubber, which had been forced up
to So cents by the syndicate, fell 10 Ga
cents, or 80 pence British money. 1t
was a severe blow 10 the Brazilian bank,
ers and London capitalists. When the
rubber merchants of the United States
noted the large quantities Of rubber
coming into Para hey 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 200 tons were shipped to Liverpool
from the syndicate, the shippers acting
on the policy of giving Baron dc Com
deriz rope enough t. 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 rubSer bubble
Of decade
The manufacturers of the United
States were caught by the Baron in 1888,
but they crushed him by closing down
their factories after rubber had been
forced up from 40 cents to 81. % per
pound. Phey do not suffer now by the
collapse of the willy Brazilian, but the
English and BraZilians do. When tho
Baron's bankers saw the policy being
pursued by the United Statas importers
and manufacturers they called on him
to cover his margins. Had the syndicate
been abe to carry out its plans it would
have made many millions of dollars, but
as soon as its hackers refused to carry
stock any longer the market was broken
and they began to sell. One 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 d Co., and then the run on the
market became general. Rubber fell
from 81 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 specuations had forced rubber
up so 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 tho
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 gain tor the entire trade, and the
Baron's scheme, which was directed
chiefly against our manufacturers,
inures to their advantage.