Political and commercial geology and the world's mineral resources

by Unknown

COMMERCIAL CONTROL

Through Ownership of Mines.

—Prior to the war, French commercial interests practically dominated the platinum industry of Russia, through the operations of the Compagnie Internationale du Platine. This company not only had extensive mining holdings but also had contracts with the two largest independent Russian platinum producers, namely, the Shouvaloff and Demidoff companies, for their entire output. The contracts were suspended by the French company shortly after the declaration of war and may not be remade. There are, however, two Russian companies which are more or less independent of French control and there are a large number of small miners and peasants who know no allegiance to any particular buying concern. It appears that at least 75 per cent. of the platinum production of Russia is (or was, previous to the Bolshevist domination) controlled by the following companies: Compagnie Internationale du Platine (French), Shouvaloff’s company (Russian), Demidoff company (Russian), Nicolo-Pavdinski company (Russian), and the Platina company (Russian). During 1914 these companies were operating approximately 35 dredges in the platinum field, though from the best reports now available it does not seem that more than two or three of the dredges were at work during 1917. The reader should realize, however, that the production from dredges has always been relatively small, as compared with the output made by other methods. It is estimated that about 80 per cent. of the platinum won from the Russian placers is recovered by hand labor by lessees (starateli) who contract to dispose of their production to the companies owning the ground and pay a royalty for the privilege of working. Since the war the peasants and miners are virtually in control of all the mines and the original operators have little to do with operation or management.

The most important platinum-bearing placers in Colombia are controlled by American financial interests. The General Development Co., of New York, through two subsidiary companies, controls a large area in the headwater region of the San Juan River, particularly on the Condoto River. Recently these interests have organized the South American Gold & Platinum Co. The Quito Mining Co. controls a considerable acreage on the Quito River between Quibdo and Istimina. There are other small American holdings in the vicinity of Negua, on the Atrato drainage, and on the Tamana and Sipi, on the San Juan drainage. Late in 1917 a British company was organized for the development of extensive holdings on the Opogodo River, in the upper San Juan drainage. If the present conditions are not changed by special legislation in Colombia it would seem that American financial interests will continue to dominate the Colombia platinum field.

The platinum deposits of the United States are apparently largely in the hands of small holders, who are citizens of this country. A few of the large dredges in California, which are producing platinum as a by-product, are, in part, owned by British capital.

Apparently the beach deposits in Australia (in New South Wales and Queensland) are worked in a small way by local capital, as are the deposits near Platina and Fifield. The Tasmania deposits are controlled by local capital.

As to Canada, it is understood that a large part of the gravel area of the Tulameen River, near Princeton, British Columbia, is controlled by American capital. A few claims on the upper Tulameen are controlled by Canadian capital. An American company has recently been organized for the purpose of exploiting certain prospective areas in the Barkersville region, in north-central British Columbia, and it is understood that Canadian capital has rather extensive holdings on the Peace River, in northern British Columbia, which are reported to contain considerable quantities of platinum. The nickel deposits of Ontario, which have a considerable prospective value as producers of both platinum and palladium, are operated by the Mond Nickel Co., under British control, and the International Nickel Co., under American control. However, the Canadian government is regulating the operations of both of these companies.

Through Ownership of Reduction Plants.

—It is a peculiar fact that while the larger part of the Russian crude platinum is sold through a French company, nevertheless England has refined the greater part of the output of Russia. The Johnson Matthey Co., of London, is the largest platinum refiner in England. Prior to the war this company is said to have refined about 70 per cent. of the Russian platinum production.

In Germany the chief platinum refiner is W. C. Heraeus, of Hanau. This company is said to be owned chiefly by Dr. Heraeus and the estate of Heinrich Heraeus. The firm of F. Eisennad & Co., at Offenbach, a small platinum refiner, was acquired by Heraeus’ interests just prior to the war. G. Seibert, of Hanau, also refines platinum, the operations being financed by the Seibert Bros., and the Deutsche Gold und Silberscheidenanstalt, of Frankfort. According to Russian figures, about 25 per cent. of the Russian output was refined by Germany and presumably a large part of the work was done by Heraeus. Heraeus interests without doubt predominate the platinum-refining industry of Germany.

The chief platinum refiner of France is Quenessen, de Belmont, Legendre et Cie., which is controlled by the estate of MM. Desmoutis and Lamaire. Other small refineries are the Lyon Allemand, the Credit Lyonnais, Herique Marrett & Bonnin, and Hesse Fils, all of Paris. Apparently the first company is the controlling factor in the French industry.

In the United States the platinum industry is controlled by Baker & Co., American Platinum Works, Irvington Smelting & Refining Works, Hanovia Chemical Co., and Charles Englehard. There are several independent platinum refiners in the United States, though their combined output is less than a quarter of the domestic industry. These are J. Bishop & Co., Malvern, Pennsylvania; Wilson Co., Newark, New Jersey; Belais & Cohn, New York City; Kastenhuber & Lehrfeld, New York City, and Goldsmith Bros., Smelting & Refining Co., New York City and Chicago, which are operated financially by American capital. The Rossler & Hasslacher Chemical Co., of New York City, also refines some platinum.

Prior to the war there was more or less interlocking of the interests of Johnson and Matthey of London, Quenessen of Paris, Heraeus of Hanau, and Baker & Co. of New York. It is generally conceded that prior to the war Heraeus actually controlled the American interests now dominated by Englehard. However, when war was declared these various companies, by interchange of their stock, were separated, so that it now appears that German money is no longer interested in the English, French, or American platinum industry. It is probable, however, that both the English and French companies still hold stock in the American company, though the control of the American interests is now held by Charles Englehard through ownership of the majority of the stock of the companies mentioned above.

It is reported that there were two government-owned platinum refineries in Russia prior to the war, though apparently they handle only a very small quantity of the platinum produced in Russia and no platinum from any foreign countries.