The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1899-10-20
4 GREAT RUSSIAN FAILURE
THE RISE AND FALL OF THE VAST
BUSINESS OF PAUL DERIVES.
Many Tad1strteS rnder One Mans
Management-MilltOn of Rubies
Involved fn the Crash - Thou

Russia has recently been shaken TO It's
center by the failure of several immense
! business concerns. Their unexpected COL
lapse has brought about a financial crisis
! that may result IN serious ard widespread
disaster. The principal men involved in
ruin are Paul Won Derives and Sawwa
Marnontow. The former was supposed to
BE- worth about g. 90 40 rubies and the
latter from 30 .oa.sse 20 - zoe 90 rubles or
about sa5, co. 90 and 90 Sa.eo % 81. 90 90
respectively.
The bankruptcy OF DERIVES says the
81 petersburg correspondent Of the Ber-
liner Tagebia,t. may have SERIOUS effects
on the Industries OF Russia, since the I'm
| nnense capital Of this firm was a leading
factor In many mos, widely diverse under
| takinss Should The DERIVES enterprises
BE- finally lQaieated thousands Of clerks
and wotkmen would be thrown out Of
work. II IL Of interest to note the origin
and history OF this vast property. lis
cornerstone was the Moscow-R jasani
Craljsk railroad and its branch lines.
which were built by the father Of the re-
Gently bankrupted DERIVES and brought
| him in his first 80 90 coo ruhies. Closely
connected with this undertaking was
vast fleet plying on the Volga and the
Caspian sea A great steamship line on
the Folga, which had been founded in isA3
was practically In bankruptcy when il fell
into DERIVES hands. and. hourishing under
his management. became a prosperous en-
terprise. IN order TO make his own en-
eines he established a grsa, machine shop,
and soon afterward the largest cement
mandatory in Russia, ana an insurance
company. Later DERIVES started a great
oil business in Baku, another big railroad
lire, and finally great bank Of his own.
which financed all these Undertakings and
a. Lar
;erprises were governed by and dependent
on one mans viii. One concern supported
another, one afforded employment and
profits TO another. Thus this mighty group
or diverse business enterprises. probably
unique in the whole OF Europe. all in the
hands OF one man. each protecting and re-
inforcing the others. seemed 10 be safe
from all danger so long as all were man
aged with one purpose and on a sound
basis.
When the elder DERIVES died the prop
erty he left amounted 10 s0en 90 rubles
or s6o.09oco. half Of which went to his son
Paul and the other half was divided be-
tween his widow. WJera Nikolajewna, and
the younger son. Sfergei Paulowitch Won
DERIVES. a large part Of these two shares
may have remained involved In the mass
or Paul DERIVES affairs and may have
gone 10 ruin with them. Yet Wiera N!ko-
iatewna and Sfergiei DERIVES still possess
property valued at many millions that
was otherwise invested and Is not affect
ed by the failure.
Paul DERIVES tho younger knew abso-
lutely nothing about the business and the
colossal organization that he was sudden
ly put at the head Of. AS a junior officer
Of The guards. with an income Of say.
s., 10000 a year. he had no other interests
than for horses and dissipation, and was
quite satisfied that he had found for the
management OF his colossal estate an Ell
eIgetic and careful agent, according TO all
appearances. in the person of Gel. Andrei
A!exandrowitch Pomeranzew. So he
thought he had 10 need TO
bother himself about II person
ally. Handsome Paul. lived only
for his pleasure, and let Pomeraazew man
age the business according tu his own
ideas In Moscow young DERIVES became
80 enamorcd OF one Of his flames that he
married her. This episode had serious re-
suits. The young husband one day found
in Nine. Devices conduct cause for separ-
ating from her lie took the affair by no
means ;ragically. On the contrary, he
was glad 10 he free Of the lady, and. after
the divorce had been decreed. gave her
lnasso ruhies IN cash and sent her on her
way. The unpleasant experience. however
had It's effect on Derives mental condi-
zion He closed his splendid 81. Peters
burg palace on the English quay. with the
famous ceilings ny MakowskI. Tor which
the artist received the pretty sum OF 800.
np rubieS. and hetook himself 20 his mag
niGoent country seat Starcoshil0wo. where
the farming operations brought in an an
ruaI defici; Of So 90 rubles. Here the mil
i0nairo lived only for his horses. The
stable In Starcoshi.owo Is said 20 he 4 pal
ace.
In the, meantime pomeranzew was man
agtng the millions and AT first unioubted
~ with the greaWst success Many rev
enterprises were started IN which Pomer
anew invested Derives capital. IN the
financial circles 81 81 Petersburg the man
aver u the DERIVES estate was held In
the highest esteem on account OF his eI3or-
NOUS capacity FIR work ard the great COM
pass - his knowlsdge. The Who'll" OF ne
gigantic group az Industries controlled by
DERIVES he managed with Il firm hand,
ars.f there is no doubt that at frs. not
wttf. standing the enormous extravagances
Of the posSessor ~ the fortune, the fortune
grew FIR twelve years Pomeyanzew
stood admired cnviea and hatef. at
the head 81 this business. whirh everyone
SUPPOSED! - lie in the most perfect c1nii-
tion
Ike a thanierho.y from clear sky.
Therefore came ire meas the other day
that DERIVES cou'd not Aouor 4 Graf; Tor
IN lso r1ihles The millionaire was iInn@-
fAfeiy summoned - 81 PETERSBURG, ana
a receiver was appointed - examine his
aTsfr~ P0YfPrAngsS was removed from
= ..aSt-ia he oNnion ~ ma7r people I
hestv au3 Ol-oonsl4aYed step. for ~ ore
r3~e IAN have such familiarity with ihe
co,~tgttcr - DERIVES affairs as ne The
committee - = Petersburg 1nar >{STS
witch now administers the property 81
zst5 - receive rom pe-wieS - az rgih5cs
e7~ ths ia 3afion. hlIf q ha< given "a
s.ts~sr.te that ;he~e w - ANYTHING }es'
c~ rim 7, IS sal. = NEVER. tast . hf-
go. affairs are xtra5gatersi oUt there ~
f-a res>ee4G from the fortune % ~ so a''
IS als,tt Ave Or SIX millions FER tk~
.-.seky horse farrier-
1Eow iae hus3nssx grew heyoH3 Pence
-ztw'~ eort~eI ivt suc,7 fashion TAT e.
+av tnere = scarcely t~ac@ iefi e a.
srsS.e ussf,sers = as ye' ClsestScr uus.-
SACRED = - c2nfecfure3 tSat the nn-s
navy e~F xArevs business ~9.n wss -3~-
rrf away ~ fse insane fever - fcu@s-
f.s- at sT e-,eY.- tses 'hat 80 TN@E wses r>itf-
.-~s t,tar.set ths- - r~o~a rs c~-~. ss'-
sex = ready r'ensy t1~oach 9nt Eu~eta
1ht ~ 5He sasde7 crasA Is s-as'4
49, p.