The Russian Government retains its entire liberty of action in the choice of the conditions which it may choose to impose upon a foreign company seeking to establish itself in Russia. There are, however, certain prescribed conditions which must be fulfilled by all companies. These are:

(1) The nomination or appointment of a general representative in Russia. (2) The choosing of a domicile in Russia.

(3) Submission to the jurisdiction of all Russian tribunals.

(4) The observance of all Russian laws, and particularly of all special police regulations or ordinances regarding the industry carried on by the company.

(5) The payment of taxes (an annual tax of from 1,000 to 1,500 rubles by the representative of the company to the first merchants' guild and a tax of 5 per cent on the gross revenue of the company, deduction being first made of the amount placed).

(6) The interdiction against acquiring real estate within the western zone of the Empire and a promise to withhold from taking part in the formation of certain companies. (Imperial ukase of March 14, 1887. The navigation companies on the Caspian Sea can only be in the hands of Russian subjects, and its shares can not be sold to foreigners. Companies intending to exploit petroleum fields are subject to special laws and regulations, and must obtain authorization from the Ministry of Agriculture and of Public Domains, with the sanction of the Ministry of the Interior, the Ministry of Finances, and the chief of the administration in the Caucasus.)

(7) Acquiescence in the revocation of the governmental authorization, in the event of such revocation. (So far, a case of revocation has not yet presented itself. The ministry favors placing in the by-laws of a foreign company a clause authorizing it to merge its business with a Russian company. This clause is of special value, for if extraordinary events should cause the Government to want to revoke its authorization, it would first invite those companies whose by-laws have that clause to submit to the full extent of the Russian law, and companies whose bylaws contain this clause would thus find no difficulty in submitting themselves to the change.)

(8) The deposition of the yearly balance sheet.

(9) The publication in the Russian journals of the dates of the general meetings. (10) The interdiction against changing the by-laws (without authorization). (11) The interdiction against uniting with another company without special permission.

(12) The deposit of a special sum in the imperial bank. This is exclusively for insurance companies. The sum is 500,000 rubles ($257,000) in cash or public bonds. The special conditions for insurance companies were published in the Official Messenger of October 9, 1888.

Acquisition by foreign subjects of real property in Russia.*

ARTICLE I. In the ten provinces of the Kingdom of Poland, as well as in the provinces of Bessarabia, Vilna, Vitebsk, Volhynia, Grodno, Kief, Kovno, Kurland, Livonia, Minsk, and Podolia, foreign subjects can acquire no right of ownership whatever in immovable property, nor any right of usufruct in immovable property independent of the right of ownership in general and arising from a lease, outside the ports and the towns, with the exceptions of the cases mentioned in article 3 below.

NOTE. The restrictions of the rights of foreign subjects, established by article I, relative to the possession and usufruct of immovable property situated outside

* Code of law, volume 9, appendix to article 1003, note 2.

the ports and the towns do not extend to the renting of houses, apartments, and country houses for temporary use and for personal residence.

ART. 2. In the localities pointed out by article r, foreign subjects can insure the payments due to them by accepting as security immovable property; but the securities of this kind and the recovery of credits in general may not entail in favor of foreign subjects either the acquisition of the mortgaged immovable property or entrance into effective possession, or usufruct.

ART. 3. With regard to the rights of succession of foreigners as to immovable properties situated outside the ports and the towns in the provinces mentioned, the following restrictions are in force:

(1) The legitimate succession of the descendants, and of husband or wife as to property (immovable) remaining after the death of a foreign subject, takes place according to the laws in force if the heir has settled in Russia before March 14, 1887. (2) In all the other cases of legitimate succession, as well as in cases of succession by testament, the foreign subject is obliged, within the term of three years, counting from the acquisition of the rights to the property (immovable), to sell the said property to a Russian subject.

ART. 6. The dispositions of the preceding articles are applicable to associations, companies, and commercial and industrial societies, constituted by virtue of the foreign laws, even if they shall have been authorized to operate within the limits of Russia.

Articles of the civil laws regarding stock companies.*

ARTICLE 2139. Where a company is organized by a number of capitalists subscribing shares in an enterprise and thus forming a common capital, the participation and responsibility of each shareholder is restricted to his share in the enterprise. (Remark. Shareholders' societies having for their object the navigation on the Caspian Sea must be formed exclusively by Russian subjects.)

ARTICLE 2140. Companies can have for their object any useful enterprise or the exploitation of an invention which does not exclusively belong to a third person. Governmental authorization is necessary to enable it to constitute itself. It is not absolutely necessary that the object of the company should be commercial.

ARTICLE 2141. The governmental authorization can be given in three different ways, namely, (1) pure and simple, (2) with certain special advantages, (3) with concessions and privileges.

ARTICLE 2142. The Government, by according the authorization, does not assume any responsibility regarding the chances of the enterprise.

ARTICLE 2143. This article subdivides the companies into two categories, according as to whether the object of their enterprise requires preparatory studies and works of installation (as, for instance, for railways, bridges, or canal works), or permits the commencement of operations as soon as the capital is formed.

ARTICLE 2144. Concessions and privileges are accorded only to the first category of companies. The authorization pure and simple is given to the companies representing the second category.

ARTICLE 2146. The company can be founded for an indefinite time, but the concessions and privileges are accorded only for a specific time, which varies according to the nature of the enterprise to which they are related.

ARTICLE 2147. At the expiration of the term, they may be prolonged or renewed.

*Svod Zakonow, volume ro, part 1.

ARTICLE 2149. All companies must be provided with a license. The only exception made is in favor of those companies who are introducing into Russia a new commerce or industry heretofore unknown.

ARTICLE 2152. A company obtaining a concession can not dispose of its rights, nor merge or unite with any other company without special authorization from the Government.

ARTICLE 2153. A company is not permitted to alter or change its by-laws or to extend the field of its operations beyond the limits first prescribed, without at first obtaining due authorization therefor.

ARTICLE 2154. If all the shares are not paid up or subscribed for at the epoch determined by the by-laws, the company is not organized unless the shareholders reduce the capital and the Government approve the reduction.

ARTICLE 2156. A company ceases to exist if it does not begin its operations within the time specified by the statutes, if an extension has not been granted. ARTICLE 2160. There can be but one kind of shares, namely, nominal. statutes fix their value.

The

ARTICLE 2161. The amount of each share is either paid up in full at the time of the formation of the company or in quotas according to its needs.

ARTICLE 2163. The share is given to the shareholder only after full payment. Receipts to bearer are forbidden.

ARTICLE 2164. In case of default of payment within the specified time, the shareholder loses his title, and the company profits by the payments already made. The company has the right to substitute another share for the one thus annulled.

ARTICLE 2165. The number of shares for the founders can not represent more than one-fifth of all shares issued. They must be numbered. Founders' shares can only be given for services already rendered. Founders may obtain not only onefifth of the first shares issued, but may obtain an equal portion of all subsequent issues. Founders' shares are transferable.

ARTICLE 2167. The holder may dispose freely of his shares and receipts. Nevertheless, during his lifetime the alienation can only be made by a regular transfer. All sales or purchases on fixed-time delivery are forbidden, and fines may be imposed upon those who take part in them.

ARTICLE 2173. Creditors have no rights upon the moneys paid in by a shareholder, but they can exercise their rights upon the shares and the accruing dividends. ARTICLE 2174. The founders administer the company until it is fully constituted. ARTICLE 2175. After this the general meeting of shareholders nominate the members of the council of administration.

ARTICLE 2176. This council represents the company and acts for it. Members of the council are not personally liable for the engagements of the company.

ARTICLE 2194. Before a concession is granted, the nature of the enterprise, whether the same is of interest for the public and in what manner and for what period the concession may safely be granted, are carefully considered, and the questions decided whether the company shall take out a license, and whether the shares shall at once be paid up in full.

ARTICLE 2195. When there are two demands of a like nature, and both offer equal guaranties, the preference is given to the one which was first represented.

ARTICLE 2196. After the project has been examined by the minister, it is submitted to the Committee of Ministers, if there is a demand for an authorization only; but, in case a concession is demanded, then the project is submitted to the Imperial Council.

ARTICLE 2197. After approval by the Emperor, the statutes are published through the instrumentality of the Senate, and the company publishes the same in the

newspapers.

FAILURE OF CROPS IN SOUTHERN RUSSIA.

Reports received at Odessa from private and other sources leave but little room for doubt as to the unfavorable condition of the Russian grain and hay crops.

The past winter was unusually mild, and there was very little snow or frost. The spring season, up to the present, has been almost entirely without rain, and the same may be said of the winter season, practically no rain having fallen here since last November.

From the winter we pass almost at once into summer weather here in the south, and during the present year the change has been unusually rapid, and the drought has dried up the grasses to such an extent that the country surrounding Odessa is parched and yellow. There will be little or no hay for feeding purposes this year. This failure is general in the country bordering on the Black Sea and Sea of Azof and, in a less degree, in the provinces of Poltava and Kharkof. Cattle, sheep, and horses are even now being moved to localities where feed can be found for them.

The rye crop, it is feared, owing to lack of rain, will prove a complete failure in the regions mentioned above. An average crop of rye in the above region, which includes the provinces of Bessarabia, Cherson, Taurida, Ekaterinoslav, Poltava, Kharkof, and the Don Cossack and Kuban territories, would be 95,000,000 bushels. According to present reports, 30,000,000 bushels will cover this year's yield.

The Government has bought large quantities of rye for shipment to the Far East, paying 20 copecks (10 cents) per pood (36 pounds) over the market value for the grain. I am informed that the condition of the rye crop in the more northern and central provinces of Russia presents a more favorable aspect.

Winter wheat seems to stand too thick and too high for the season of the year. What I mean is that a shorter stalk and longer head would be more satisfactory, as it looks as if there would be plenty of straw and very little wheat.

Spring-sown grains, including wheat, are much in want of rain, and, unless they receive it copiously within the next two weeks, the outlook this year for Russia will be very poor indeed.

Owing to the drought this season, the farmers have held back large reserve stocks of various cereals, and less grain has been brought to this and other Black Sea ports than for many years past. Strange to say, prices are low, and, while they will no doubt rise, there is no present indication of such a movement.

ODESSA, May 20, 1899.

THOS. E. HEENAN,

Consul.

CROPS IN RUSSIA.

Consul Heenan, writing from Odessa under date of June 2, 1899, confirms his report of May 20,* in regard to the failure of crops in southern Russia. Rain has not fallen to any extent, and cattle have been turned into the rye fields, all hope of saving this cereal having been abandoned. The yield of winter wheat will be far below the average; spring wheat will also be less than usual; oats and barley promise light crops. The consul adds the following particulars in regard to the affected districts:

The province of Cherson contains 17,495,685 acres of land, with a population of 2,732,832. It has eighteen cities, of which Odessa with 410,000 inhabitants, Nicolaiev with 100,000, and Cherson with 70,000 are the most important. The province of Bessarabia, with an area of 12,009,856 acres, has a population of 1,993,436. The largest town is Kishinev-110,000 inhabitants. The province of Taurida contains 14,919,974 acres, with a population of 1,443,560. The famous Crimea forms a part of this province. Here the culture of the vine reaches its highest development, and Crimean wines are well and favorably known all over Russia. The province of Ekaterinoslav has an area of 15,665,777 acres and a population of 2,112,651. The mineral resources are enormous, and millions of foreign capital are engaged in developing them. The province of Poltava contains. 12,329,914 acres, with a population of 2,794,727. The province of Kharkof has 13,463,522 acres and a population of 2,509,811. The city of Kharkof has 180,000 inhabitants. The Don Cossack territory contains 40,660, 808 acres and a population of 2,575,818. The Kuban territory, with an area of 22,840,040 acres, has a population of 1,922,770. The provinces of Kief and cultural districts in European Russia. acres and has a population of 3,576,125. a population of 250,000. In 1898, 311,982 acres were sown in beet root, yielding 1,500,768 tons of beets, from which 167,975 tons of sugar were manufactured. The province of Podolia contains 10,383,294 acres, with a population of 3,031,513. Podolia had in 1898 254,471 acres sown with beet root, which yielded 1,330, 100 tons of beets, from which 151,862 tons of sugar were manufactured. The province of Volhynia has 17,727,411 acres, with a population of 2,997,902. This province planted 62,076 acres in beet root in 1898, which yielded 330,671 tons of beets, giving 39,694 tons of sugar.

Podolia are the richest agri

Kief contains 12,592,574

Kief, the largest city, has

*See preceding report.