Fiume first Hungarian Rice mill and Rice starch Manufacturing Company Limited

The First Hungarian Rice Husking and Starch Factory of Rijeka was founded in 1881 by two local businessmen, Lajos Ossoinack and Arthur Steinacker, with financing from the local branch of the Hungarian General Credit Bank. Between 1882 and 1914, it produced 10 000 000 mt of product worth more than 200 000 000 Crowns. During this period the company paid an average dividend of 15%. The company continued to operate after the war, but due to losses caused by the lack of Austro-Hungarian backing, it closed in the early 1930s.

History

History of the Rice Husker at Rijeka (1881-1931)

The Fiume rice husking factory was founded by Lajos Ossoinack Ossoinack on 11 July 1881 with the financing of the local branch of the Hungarian General Credit Bank (initially Steinacker & Társa Rt.). The factory was established with its seat in Budapest and a capital of 800,000 Frt, with Nándor Zichy as its president and Ede Pallavicini, Major Count (Hungarian General Credit Bank) and Arthur Steinacker as its vice-presidents. The factory itself was built in Via Volosca, on the outskirts of Rijeka, in Ponsal, and consisted of two factory buildings: the rice mill and the starch factory.

The plant was already state-of-the-art when it was built. In addition to 520 horsepower of mechanical power, electric lighting was also introduced. It had an annual production capacity of 500,000 q (400,000 q of milled rice, 30,000 q of starch and 70,000 q of by-products), making it the largest mill in the whole of Austria-Hungary. Although the factory had both a president and vice-presidents, the real manager was Lajos Ossoinack, whose activities were particularly important in the 1890s, when the Trieste rice mill became a growing competitor to the Fiume mill. Under his leadership, the plant was constantly modernised, the extent of which can be seen most clearly in the machinery: from its foundation in 1881-1892, the company had 520 hp, from 1893-94 it had 1,200 hp, from 1895-1904 1,500 hp and from 1905 2,000 hp. When Ossoinack's son Endre took over the company in 1910, production capacity was expanded and the plant was able to produce up to 700,000 m³ of product in a single year. Between 1891 and 1910, the company employed an average of 450 people, of whom 67% were men, 27% women, 2.5% boys and 3.5% girls. It is important to mention here that the regulations in Fiume allowed child labour, so that only boys smaller than full-grown men could work on certain machines.

Between 1889 and 1912, the mill was able to increase its production steadily. During this period, the mill produced an average of 318,905 q of husked rice, 66,829 q of starch and 67,924 q of by-products (mostly used as animal feed) per year. In absolute terms, the company increased its production by a factor of 2.6 between 1889 and 1911. This meant that the rice mill produced products worth K 596,093 in 1883, K 1,868,743 in 1885, K 8,333,333 in 1895, K 12,000,000 in 1904 and K 16,675,000 in 1910. This represented a production of at least K 194,697,568 between 1882 and 1914, as detailed in the following figure in terms of production per metre:

The amount of share capital of the company was as follows:

• 1881-1897: 800 000 Frt,
• 1898-1899: 965 000 Frt,
• 1900-1904: 1.930.000 K,
• 1905-1925: 2 895 000 K,
• 1926-1931: 1 447 500 P.

The reason for the first capital increase was that Rizshántoló, together with the Hungarian General Lending Bank, purchased the shares of Hungária Gőzmalom Rt. in Budapest in 50%-50%, and to cover this, the company carried out a capital increase and share issue. Subsequently, in 190, the accounting was converted into Koruna, and the share capital was increased again to finance the expansion of the plant, which began in 1905 and was converted into Pengö after the war in 1925. The profitability of the company is shown in the table below.

We can clearly see from the year-to-year variation in profitability and dividends that as long as Rijeka was part of Magyarorg and had a steady market for its products, the company did very well, as there were years when its profitability in relation to its capital exceeded 46% (1896), but after the war, although the company was able to maintain profitability at first, the 1929 crisis made the company completely unviable, and it was definitely closed down around 1932. All in all, the rice mill in Rijeka proved to be a very good foundation, which the Ossoinacks were able to manage with a steady hand even after the arrival of Italian and Austrian competitors.

Sources

• Compass (1882-1932)
• Državni Arhiv u Rijeci. Rijeka State Archives. Archives of the Chamber of Commerce and Industry. PO-1. 198-201.
• Fest Aladár - Holek Sámuel (1896b). In Borovszky Samu - Sziklay János (eds.): Vármegyei és Városai Magyarország Vármegyei és Várossai. Fiume and the Hungarian-Croatian Coast. Ferenc Fiume and Hungarian-Hungarian-Hungarian-Hungarian-Hungarian-Hungarian-Hungarian Islands. Hungarian and Hungarian-Hungarian-Hungarian Fiume and Fiumic and Hungarian-Hungarian-Hungarian-Hungarian-Hungarian Flanders, published by Apollo Literary and Printing Company. pp. 261-275.
• Pelles Márton - Zsigmond Gábor (2018): The Hungarian maritime trade history of Fiume (1868-1918). Pécs, Pro Pannonia.

Date of foundation: 11.07.1881.

Termination time not set

Founders: Lajos Ossoinack, Arthur Steinacker, Fiumei Hitelbank Rt.

Securities issued:

Decisive leaders:

Főtevékenység: Hántolt rizs, keményítő, és egyéb rizsszármazékok (pl. púder, fényvasaló) termelése és forgalmazása itthon és külföldön

Main products are not set

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Author: by Dr. Márton Pelles