[EXTENT OF THE MANUFACTURING INDUSTRY]
The cork stopper industry had its permanent origin in Spain, in the Province of Gerona, town of Llacostera, towards the latter part of 1750 and was contemporaneous with the inception of the glass bottle, although corkwood was used many years before as a stopper for amphora, etc., as noted in a previous chapter.
The trade flourished there until wars and schisms rent the country and drove the industry to the mountains. There it slumbered and struggled for many years until the peace was restored and the people assured that the dangers were passed. Its revival was not very sudden, but slowly and surely it grew, and won itself a place in the trade life of Spain and finally became a necessity, so much so, that it began to attract attention and other countries sought to secure the secret. About 1828 the French agents at Catalonia found enough information to warrant them returning to France and there set up for themselves, the rivalry between the two becoming very keen, causing much excitement among the Spanish manufacturers; for up to that time they monopolized the trade and had a nice time of it. This lasted until 1849, when the trade assumed such proportions that both had all they could attend to and more. This insured a steady increase of the trade, and before long it assumed proportions that has surpassed the dreams of its founders. The industry spread until the raw material began to show a shortage due to the heavy demands made upon it. More frequent cuttings were compulsory to supply the market, and in consequence the grade became poorer.
The realization of this caused the Spanish Government to step in and protect the forests as a national necessity, and the result was the passing of laws to govern the cutting of corkwood from the trees. But the trade kept on growing in other countries and the raw stock was in great demand.
The result of the heavy exportation of corkwood again caused some notable alarm among the manufacturers and trades-workers in Spain and Portugal, but principally in the former, as most of the largest factories are located in its cities; so that the principal representatives of the cork industry convened at Madrid in December of 1911, at which convention resolutions were passed to urge upon the Government the necessity of imposing an export tax or duty on corkwood ranging from five to fifty gold pesetas ($.0965 to $9.65) per 100 kilos (220 pounds). By so doing it was thought to remedy the shortage in the home market.
The competition between the foreign and Spanish buyers for the raw corkwood output was largely in favor of the foreigner in 1911, owing to the unprotective export duties, and the result has been that the once flourishing national industry is now very badly handicapped for want of working material.
So simultaneously with the tariff revision, which went into effect on January 1, 1912, an endeavor was made to put in force the increase on export corkwood, but owing to the efforts of the American cork manufacturers, who have a great influence over the Spanish cork industry, the proposed increase did not meet with the desired success.
In the attempt to restrict the importation of raw material the Spaniards have failed, for its usefulness makes the demand too great and the foreigners have invaded the Iberian Peninsula and are now buying up even the raw stock on the trees. The corkwood markets are no longer confined to two or three, but extend round the world, the principal ones being: London, Paris, Rheims, Epernay, Maguncia, Dresden, New York, Pittsburgh, San Francisco, Buenos Ayres, Calcutta, Sydney, Melbourne and Yeddo. So it will be seen that a great demand is being made upon the forests, which must be cultivated for increased growth and production or an early investigation made for the growing of the trees in other countries.
Of course the industry remains very strong throughout Spain and Portugal, and particularly in the Andalusia District of Spain, where the manufacturing establishments play an important part in converting the corkwood into useful articles of commerce. The Spanish yield of raw material has remained slightly behind Portugal, but this does not affect the former’s influence in the trade. (See [Appendix].)
It is inevitable that the greatest bulk of the trade should center around the countries in which the raw material is grown, for the greatest advantage is thus gained by those, so fortunate in their location.