Union County courier. [volume] (Elk Point, Union County, D.T. [S.D.]) 187?-1913, 1891-09-04
BRITISH BUBBLE BURST.
VAIN ATTEMPT TO CORNER
THE WORLDS RUBBER.
4 Farmer Expsrisncs Gives Americas
Manufacturers Some PeintsPs, aud They
Very Promptly EQueese shs LIE Ous
Of . Promising Scheme.
The Rubber Syndicate Cellapssa

The Rubber Syndicate Cellapsss-
The great rubber syndicate Of Para,
New York, and london has collapsed,
and John c. Gonalev Wanna, alias the
Baron do Gomderiz, the bngbear Of the
trade, has once more been defeated In
On attempt to corner the worlds supply
OF rude rubber. This time tina loss will
fall chiefly OF bankers Of Rio and Lon
don, who were inveigled into the Baron's
latest scheIe. The syndicate represent
ed by Mr.. Wanna was organized under
the title Compania du Gran Para, with
the Baron as manager. The headquar-
tiers Of the concern are In Para, with
branch Offices in London, Paris, and
New York. Although tho syndicate,
during the last nine months, obtained
possession OF so per cent Of the avail
able supply OF the world; the capital
said to be S25, OO0, 000-under its control
Is not sufficient to hold this and also to
buy up tho 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 . general break,
and rubber, which HAD been forced UP
to IS cents by the syndicate, fell to 81
cents, or SO pence British money. 1t
was q severe blow to the Brazilian bank
ers and London capitalists. When the
rubber merchants OF the United States
noted the large quantities of rubber
coming into Para they prepared for Q
break. Thoy 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
derfz 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 a decade.
The 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 ST.. 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
IS 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 q 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 "a 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 IS 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, IS more than halt. the
crude rubber imported here IL used by
rubber shoe men. Tho present decline
Is . gain tor the entire trade, and the
Raron's scheme, which was directed
chiefly against our manufacturers,
tnures to their advantage.