Crawford avalanche. (Grayling, Mich.) 1879-19??, 1891-09-03
The Rubber syndicate Collapses.


The great rubber syndicate Of Para,
New York, and London has collapsed,
and John c. Gonalev Wanna, alias the
Baron de Gomderiz, the bngbear 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 Lon
don, who were inveIgled into the Baron's
latest sche1e. The syndicate represent
ed by Mr.. Wanna was organized under
the title Compania du Gran Para, with
the Baron as manager The headquar-
ters OF the 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 $25, 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
Singlehurst & 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 s5 cents by the syndicate, fell to 64
cents, or 80 pence British money. 1t
was severe blow to the Brazilian bank
ers and Londol capitalists. When the
nsth hhnH olu.. % H. Sao
noted the large quantities of rubber
Canning into Para. they pre- pared-fo q
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 de Com
deriz rope enough TO hang himself.
| Rubber manufacturers here curtailed
their requirements I'm 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 81. 25 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 10 would
have made many MILLIONS Of dollars. hui
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 80. Then another small
holder unloaded like quantity This
was followed by Barring Bros and Sin
glehurst & Co., and then tho run on the
market became general. Rubber fell
from 81 cents to I'd 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, rs the
| Baron's speculations had forced rubber
up so high that there was no profit 10 be
made. Even the druggists supplies and
surgical Instrument trades felt the effect
OF the Baron's maniputations of the
market The rubber-sho trade suffered
most severely, as more than half the
crude rubber imported here is used by
rubber shoe men. The present decline
/ chiefly against our manufacturers,
| inures to their advantage.