Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1905-03-13
ALCOHOL TRUST IN SPAIN.
A Company Organized that Includes
More than Halt of the Cistliers.

silngton. March 12-Consul Cen
eral Rdgely at Barcelona. Spain.
writes TO the Department Of Commerce
ana Labor as follows:
The organization of a great alcohol
trust is the most important recent in
Gustrial ard commercial development
in Spain. The formation of La Socie-
CAD Union Alcoholera. Espanola has
just been completed. with home Office
At Madrid. and a capital of 10000 900
pesetas, equal noninally to s3.0sS.000.
members bind themselves neither TO
establish new manufactures nor to
ueai In alcohol not produced by the
company. The society or trust is made
up OF most of the alcohol dis
liners of Spain, of the MEM
pers of the Sociedad General
AZucalera (National Sugar Company
which brings into the trust its manu-
factories its molasses or dregs as pro-
ouced' and also the alcohol which it
prouuces-and of Il group of financiers
winch has subscribed the 1000. 900
shares that form the working capital.
The basis is the molasses contract
entered into with the Sociedad General
AZucarera. which owns most of the SUI
gar mills in Spain. Besides these the
combine has already acquired the larg-
est and best-situated grain distilleries.
and hopes To be able to control also the
production of Vinic alcohol. The pro-
posal to form an alcohol trust was, at
missirings by producers of what is
~ o1a
learned the conditions under which the
trust was to be formed but more than
half Of all the manufacturers of Spain
have now given their adherence and
among them are some of the largest
iistillers in the country.
one objection urged against the
trust scheme by many distillers is the
clause requiring that half the number
Of SaareS which distillerS will receive
IN payment for their works, according
to valuation, shall be deposited in the
company's Offices for four years as a
pledge that the vendors will not re-
sumo distilling in competition to the
trust. The fear is entertained that If.
through mismanagement or for any
"ther reason. the value of the shares
should fall during that time the hold
"rs will not only be unable to realize
their stock, but might even be obliged
10 eventually dispose Of their shares at
a heavy loss to some other syndicate.
moreover. the capital is by some con-
insufficient. Notwithstanding
these objections it is believed that the
frns which have so far held aloof will
IN the end be forced to join the com.
nlile, especially those that find them
serves adversely affected by the new
alcohol law.
In order to enable the trust to com.
fleteiy control the trade in times. such
as the pl eSent year, when the low price
OF wine prevents industrial alcohols
rom competing with vinic alcohol. if
mas been proposed tO invite the distill-
Prs of vinic alcohol to join the COM
bine.
In answer to Il communication which
was recently addressed to the presi-
dent "t the company he replied that
the object of the formation of this So
cletE is the acquisition of molasses or
'r7'S from the National Sugar Compa-
ny ana the production of alcohol there
rom "i cheaper scale. The forma-
non or the society has been favorabIv
welcomed ~ manufacturers. There are
I!tN-Iour industrial alcohol factories
ihd up 70 the present thirty-one of
Them form part If the society. the most
modern ana important establishments
BENG included. The annual produce |
lion Of industrial alcohol is calculated |
% be GOO nRO hectnjit.rc IZ ON oon 49,,
"hs). BY producing cheaper alcohol if |
IS hoped that the consumption for in |
iuH'rlal purposes VIII increase. AIco- |
FOL Is al present used almost exclusive.
y Tor heating. hut the purpose is to |
BRING i into general use for light and |
power.