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Alexander Mantashev: The People's Tycoon

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  • Alexander Mantashev: The People's Tycoon

    Alexander Mantashev: The People's Tycoon
    By Times.am
    2 May, 2010, 1:09 am

    Have you ever heard of Mr. Five Percent, the businessman and
    philanthropist Calouste Gulbenkian? How about the composer Komitas
    Vardapet? In all likelihood you have, but who is Alexander Mantashev?
    Even though the Iron Curtain was lifted nearly two decades ago, a
    lion's share of Armenians within the Diaspora are to this day largely
    unfamiliar with the spectacular life and journey of Alexander
    Mantashev. During his lifetime, Mantashev significantly influenced the
    fate of countless Armenians throughout the world, including the
    aforementioned Komitas and Gulbenkian.

    Dubbed as the Armenian Crassus at the prime of his life, Alexander
    Ivanovich Mantashev (Russified from Mantashyants/Mantashyan) was born
    in Tiflis (modern Tbilisi) in 1842. Mantashev's father Hovhannes was
    an influental textile trader who was elected to the duma
    (representative assembly) of Tiflis in 1865. Mantashev spent a good
    deal of time in Tabriz, where his father was involved in the cotton
    and textile trade. Getting involved in his father's business affairs
    early on, he moved to Manchester in 1869, a major center of cotton and
    textile processing industries, from where he helped ship goods to his
    father back in Tabriz. Mantashev's stay in Manchester played an
    important role in the development of his character. Not only did he
    learn the secrets and crafts of the textile industry in Manchester,
    but he also delved into the intricacies of European business and
    British culture. During this period he learned English, French, and
    German. In addition to becoming very well acquainted with Western
    European everyday life, culture and business, he also initiated
    contacts with Diaspora Armenians for the first time. Mantashev made a
    charitable contribution to help build the Holy Trinity Armenian Church
    of Manchester in 1870, the first Armenian Church built on British
    soil.

    In 1872, Mantashev returned to Tiflis with his father. The Mantashevs
    opened their first cotton store in the first floor of the hotel
    Caucasus, located in Erivansky Square (Freedom Square today) and
    eventually became fully engaged in the wholesale textile trade. The
    following year Mantashev became a member of the Tiflis Mutual Credit
    Society. Though they faced very stiff competition in Tiflis within the
    textile industry, the Mantashev's maintained a competitive edge
    through the import of British technology and methods. 1881 was a
    decisive year for Alexander for it was that year when he became a
    First Guild merchant.1 The following year he was elected to the Tiflis
    Duma like his father before him. He was also appointed as the honorary
    trustee of the Tiflis Comprehensive School, a title which he held
    until 1894.

    With rapidly growing income, the Mantashev's diversified their
    enterprise and entered the world of finance. In 1882 Alexander became
    a member of the Financial Reporting Committee of the Tiflis Central
    Commercial Bank. Eventually he became a board member of the same bank,
    becoming deputy chairman of the bank in 1885. After his father's death
    in 1887, Alexander became the principal shareholder of the bank, and
    was elected as Chairman in 1890. The bank was involved in almost every
    aspect of trade in the Caucasus. Thanks to his merit, the bank was the
    only financial institution in the Caucasus whose shares traded on the
    Saint Petersburg Stock Exchange.

    The Armenian bourgeoisie who dominated trade in the Caucasus for
    centuries had shifted their attention to textile manufacturing,
    tobacco processing and by the late 19th century, oil. The city of Baku
    was responsible for 90 percent of the wealth produced in the region,
    Tiflis accounted for 4 percent and Yerevan even less. The first
    successful oil well was drilled in Baku in 1871 by an Armenian named
    M.I. Mirzoyev.2 Alexander's childhood friend Michael Aramyants had
    moved from Tiflis to Baku in 1884 and along with his compatriots from
    Karabakh: A. Tsaturyan, G. Tumayan and G. Arapelyan, established the
    oil company `A. Tsaturov & Co.' This company played a substantial role
    in the oil production of Baku. Requiring an urgent investment to
    purchase new oil tankers, Tsaturyan borrowed 50, 000 rubles from the
    Tiflis Central Bank (that is from Mantashev). In return for such a
    generous loan, Mantashev was allowed to purchase shares of the
    Tsaturov Company at a bargain price. In the years that followed,
    Mantashev purchased all the shares of Tsaturyan, Tumayan and
    Arapelyan, effectively taking over the company. In 1899, he along with
    Aramyants established the `A.I. Mantashev & Co.' The significance of
    this development cannot be understated.
    Throughout the early 1890's, Mantashev began buying up marginally
    successful oil wells and making them profitable. He opened
    representative offices and warehouses in the major cities of Europe
    and Asia: Smyrna, Thessaloniki, Constantinople, Alexandria, Cairo,
    Port Said, Damascus, Paris, London, Bombay and Shanghai. In 1896,
    during a trip to Egypt, Mantashev met Calouste Gulbenkian who was
    fleeing the Ottoman Empire with his family as a result of the Hamidian
    massacres. Mantashev introduced Gulbenkian to the upper echelons of
    society in Cairo, including Sir Evelyn Baring, the British colonial
    administrator of Egypt.3 He became famous for his uncanny ability to
    choose successful drilling sites.4 By 1900, Armenians owned the third
    of all the oil companies in Baku but foreign capitalists such as the
    Rothschilds and Nobels were beginning to gain a footing. For refining
    oil, Mantashev built a kerosene plant in Baku, as well as a lubricant
    plant and a marine refinery for pumping oil and fuel to vessels. His
    company owned a factory for the fabrication of canisters, packaging
    and storage of oil in Batumi, a mechanical workshop in Zabrat, an oil
    pumping station in Odessa, along with one hundred freight cars
    circulating in the southwestern railways of Russia.

    Mantashev became a shareholder in a number of competing oil companies,
    among them the Nobel Brothers company Branobel. 51.3% of the total
    stock of oil and 66.8% of the oil content in the Caspian Sea was
    centered around that firm. In 1900, the Rothschilds and the Nobels
    controlled about half of Russia's crude production, two-thirds of its
    oil refineries, half the Russian domestic market, and three-quarters
    of Russia's kerosene exports. The Mantashev Company and its allies
    controlled a third of the domestic market and about a quarter of
    kerosene imports. In 1904, it was the third largest oil company in
    Baku, next to only Branobel and the Caspian Sea Society of the
    Rothschild brothers. 5

    `The world oil market,' wrote Otto Jeidels (director of Berliner
    Handels-Gesellschaft bank) in 1905, `is even today still divided
    between two great financial groups - Rockefeller's American Standard
    Oil Co., and Rothschild and Nobel, the controlling interests of the
    Russian oilfields in Baku. The two groups are closely connected. But
    for several years five enemies have been threatening their monopoly:
    (1) the exhaustion of the American oilfields; (2) the competition of
    the firm of Mantashev of Baku; (3) the Austrian oilfields; (4) the
    Rumanian oilfields; (5) the overseas oilfields, particularly in the
    Dutch colonies (the extremely rich firms, Samuel, and Shell, also
    connected with British capital).'6

    A 100 ruble bond for the Mantashev company issued in 1910
    A 100 ruble bond for the Mantashev company issued in 1910
    In order to combat John D. Rockefeller's (Standard Oil had started
    taking over smaller companies in Baku) aggressive marketing policy in
    Russia, he founded the Russian General Oil Company along with the
    other major oil interests of Russia, the Nobels and the Rothschilds. 7
    Rockefeller was extremely interested in Baku oil since it outproduced
    all the oil fields of the United States combined. Following Dmitry
    Mendeleyev's advice (that's right, periodic table of elements
    Mendeleyev), Mantashev funded the Baku-Batumi pipeline which was
    launched in 1907, becoming the world's longest (835 kilometers long)
    and according to some, first oil pipeline. Mantashev's Baku assets
    suffered great losses during the Armenian-Tatar massacres of
    1905-1907. At the same time, Leon Trotski used Mantashev's oil
    factories to preach his revolutionary rhetoric, while the young Joseph
    Stalin committed acts of sabotage and disobedience at Mantashev's
    factories. Stalin organized strikes in Mantashev's Batumi factory and
    organized protests against Mantashev in 1902.8 Despite these perils,
    Mantashev managed to gradually restore previous oil production levels.
    By 1909, his company by volume of fixed capital was worth 22 million
    rubles.

    Mantashev was well known for his charity and generosity, particularly
    towards Armenian causes. Novelist and playwright Alexander Shirvanzade
    wrote:

    It was not the great amounts of money that he donated to the sacred
    temple of charity, which is the queen of the celestial temples. It was
    the heart that performed the only role, and the supreme role in the
    benevolence by Mantashyants. He gave away without accounting, without
    empty vanity, he gave, because so prompted his national soul. His
    benevolence was of a pure Christian character, so what the right hand
    gave, the left hand ignored. It was his modesty, that is so rare these
    days. Only a small part of his doings are known to the public.
    Countless were his deeds that only his very close people knew about.

    Along with twelve of his peers he founded the `Armenian Benevolent
    Society of the Caucasus' in 1881 of which he was the vice-chairman. In
    1894 he founded a trade school under his own name which functioned
    until 1918. He maintained the largest orphanage in the Caucasus and
    showed great concern for blind children, having constructed a
    specialized building for them and regularly assigning considerable
    sums for their care. He donated over 300,000 rubles in 1909 towards
    the building of the Nersesyan Academy. He donated 250,000 rubles to
    the holy Echmiadzin for the building of the Patriarchal residence of
    the Catholicos of Armenia.

    Mantashev hand-picked fifty talented young Armenians and sent over two
    hundred to study at the best universities of Russia and Europe. Among
    them was the famous Armenian composer Komitas who was sent to study in
    Berlin in May of 1896, the controversial Communist revolutionary
    Stepan Shahumyan, historian and Byzantinist Nicholas Adontz, soprano
    Haykanush Danielyan, second Prime Minister of the Democratic Republic
    of Armenia Alexander Khatisyan and others.

    The most famous donation made by Mantashev remains the Armenian Church
    of St. John the Baptist in the 8th arrondissement of Paris (15, Rue
    Jean Goujon). He explained that he chose Paris for the location of the
    church because that's the city where he sinned most. During its
    construction in 1904 Mantashev spent 1,540,000 francs. For this act,
    the President of France awarded Alexander Mantashev the Order of the
    Legion of Honor. In the Academie National de Musique of Paris he had a
    personal lounge and he intended to build a similar theater in Yerevan.
    The Small Hall of the Armenian Philharmonic Orchestra was also built
    thanks to this donation. In addition, he regularly extended financial
    help to the `Armenian Dramatic Society' and to individual actors.

    Romantic portrayal of Mantashev inside St. John the Baptist church. He
    is surrounded by contemporary Armenian intellectuals and leading
    figures that he directly influenced, including Komitas.
    Romantic portrayal of Mantashev inside St. John the Baptist church. He
    is surrounded by contemporary Armenian intellectuals and leading
    figures that he directly influenced, including Komitas.
    Mantashev was universally admired for his modesty. He disliked
    valuables and never wore a ring or any other jewelery. His watch was
    very plain, with a simple chain. The only adornment that he liked to
    carry was a live flower. He never wanted to own a carriage, he always
    moved around on foot or by tram, hiring a carriage only on rare
    occasions. The only controversy in his life arose when he was accused
    of having led an affair with Ekaterina Aleksandrovna after having
    toured with her in Egypt. Ekaterina was the wife of General Vladimir
    Aleksandrovich Sukhomlinov, Minister of War until 1915. The affair was
    caricatured in the magazine The Dragon Fly, where Mantashev (depicted
    as a cow) was held by an elderly peasant (Sukhomlinov) being milked by
    a lovely girl (Ekaterina). A passer by inquires whether the milk is
    any good, to which the girl replies: `Not bad, but it smells a bit of
    kerosene.'9

    Mantashev suffered from kidney disease and received treatment for
    several months while in Paris. He passed away on April 19, 1911 in
    Saint Petersburg. His body was moved to Tiflis on April 24 and buried
    on April 30 next to his wife Daria in the cemetery of the Cathedral of
    Van (built by his funds). After the October Revolution of 1917, his
    company ceased to exist along with all the other oil companies in
    Russia. In 1933, by the order of Lavrentiy Beria, the Cathedral of Van
    and the cemetery where Mantashev was buried was destroyed. Mantashev
    was survived by 4 sons and 4 daughters, the most famous of whom was
    Leon. Unlike his father though, he led a very extravagant lifestyle.

    Grand entrance of Leon Mantashev's mansion and stables in Moscow.
    Built and designed in Italian Baroque style by Alexander Vesnin,
    Victor Vesnin and Arshar Izmirov in 1914. Leon kept more than 200
    purebred and rare horses.
    Grand entrance of Leon Mantashev's mansion and stables in Moscow.
    Built and designed in Italian Baroque style by Alexander Vesnin,
    Victor Vesnin and Arshar Izmirov in 1914. Leon kept more than 200
    purebred and rare horses.
    Like many of Russia's most affluent émigrés, Mantashevs moved to Paris
    following the Bolshevik takeover. Calouste Gulbenkian's son, Nubar,
    once described how `the cafes of Paris, rife with rumors from the
    homeland, were like brokers' branch offices with securities traded on
    a curb market and icons, paintings, jewelry, and other treasures
    changing hands like a Baku bazaar.' One of these traders was
    Mantashev's spendthrift son Leon, who sold his last remaining painting
    to Nubar's father for $30, 000. It was Paul Chabas' Matinee de
    Septembre (much ridiculed at the time) which is today on display in
    the Metropolitan Museum of Art in New York City.10 Following the
    Armenian Genocide, Leon helped surviving refugees who fled to Russian
    Armenia. The Blue Book of James Bryce and Arnold Toynbee records a
    £2500 - `donation by a rich Armenian gentleman named Mantashev-have
    recently been spent by the Mayor of Tiflis in procuring warm bedding,
    as for instance mattresses, quilts, and pillow cases, which have been
    sent to Igdir, Delijan, Novo-Bayazid and Elizavetpol for the use of
    refugees.'11

    The chairman of Royal Dutch Shell, Henri Deterding paid Leon £625,000
    for his dispossessed Baku oil properties in 1917. Luckily for
    Mantashev, Deterding did not think this was a risky move since he
    believed in the Bolsheviks inevitable collapse and the consequent
    validation of this transaction. 12 Leon served as the prototype of one
    of the heroes of the novel `The Immigrants', written by his friend
    Aleksey Nikolayevich Tolstoy. He is described as an `oil tycoon,
    squandering millions that he had acquired seemingly effortlessly, a
    man with great fantasies, breeder of horses, tall and handsome.'
    According to some accounts, the remnants of Alexander Mantashev's
    estate were completely wiped out on the racetracks of Europe by his
    sons.

    Alexander Mantashev's legacy is alive and well today. He is well
    remembered for his charity and generosity and many buildings, schools
    and institutions carry his name throughout Europe.

    /avarayr.com/
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