Annals 2003

ISSN 1582-5949

ANNALS OF THE UNIVERSITY OF PETROANI

ECONOMICS

VOL. III

UNIVERSITAS PUBLISHING HOUSE PETROANI ROMANIA 2003

ISSN EDITOR OF PUBLICATIONProf., Ph.D. Ioan-Lucian BOLUNDUe-mail: [email protected]

EDITORIAL BOARD AND ADVISORY BOARD OF ECONOMICS ISSUESEditor-in-chief: Prof., Ph.D. Mariana MAN Associate Editors: Prof., Ph.D. Lszl TTH Prof., Ph.D. Ioan Constantin DIMA Prof., Ph.D. Ioan COSMESCU Prof., Ph.D. Ionel BARBU

- University of Petroani, Romania - University of Miskolc, Hungary - ARTIFEX University of Bucharest, Romania - Lucian Blaga University of Sibiu, Romania - Aurel Vlaicu University of Arad, Romania

Editor Secretary: Assist. Prof. Imola DRIG

- University of Petroani, Romania

Editorial office address: University of Petroani, 20 University Street, Petroani, 332006, Romania, Phone: (40) 254/542.994, 542.580, 542.581, 543.382, Fax: (40) 254/543.491, 546.238, Telex: 72524 univp, E-mail: [email protected]

Annals of the University of Petroani, Economics, 3 (2003)

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Contentspag Baron, M.; Dobre-Baron, O. Establishment of Mica company and the takeover of Ruda 12 apostoli mine undertaking located nearby Brad ............................................................................... Bleanu, V. The major influences of the organizational buying behavior at the level of the Romanian mining companies Biber, E.G. Objectives and values of a company Bojinc, M.; Szasz, M. Electronic commerce and electronic documents statute Cosmescu, I; Cosmescu, D.B. La concurrence internationale au cadre de lintentification du proces de globalisation de leconomie ... Cucu, I.; Dura, C. The elaboration of a marketing plan regarding infrastructure modernisation of Parng touristic area . Dima, I.C.; Drig, I. Considerations regarding the development of industrial technology.. Fleer, A. Loccupation de la force de travail - facteur dun developpement durable .. Flitr, M.P. The effects of services characteristics on the marketing mix for services .. Fulger, I.V. Material and financial aspects characterizing the population of Petroani in July 2002 .. Ghicjanu, M. Management control information .............................................. Ghicajanu, M.; Dolea, G. Le processus de conrle managerielle ..................... Gorski, H. Economy and management in todays electronic world .................. Iloiu, M.; Csiminga, D. Investment project evaluation NPV and IRR criteria . Ionic, A. From quality assurance to total quality management ....................... Irimie, S.; Bleanu, V.; Hodor, P. The problems of the labour market in Romania Irimie, S.; Bleanu, V.; Hodor, P. The analysis of the labour market at the level of the Hunedoara county .............................................................. Isac, A.; Isac, C. Informatical aspects regarding decision tree in decisions optimization ........................................................................................... Isac, C. Characteristic of Japanese decision making by consensus .................. Ivnu, L. Risk measurement systems 5 23 29 33 37 41 47 53 57 65 75 79 83 89 97 103 111 117 123 127

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Annals of the University of Petroani, Economics, 3 (2003)

Koronka, A. The originality of Eminescus economic thought .. Magda, D. The Romanian institutional and legislative environment regarding external migration ................................................................................. Man, M.; Mihil, E.; Monea, A. Considerations regarding some external influences on the Romanian accountancy reform ................................. Mihil, E., Considerations about the fundament of prices by their comparison Mitran, I.; Mitran, C. On a ruining model in a competitional market problem . Munteanu, R., The experience of Germany regarding the economic rehabilitation of the former mining areas ............................................. Popescu, M.; Monea, A. General methodology of auditing ............................... Preda, M. Route and circuit generation in a graph with XGD&C .................. Rdulescu, M.; Buia, G. Coal - a solution for the energy of the near future Rscolean, I., Tendencies in the evolution of the expense and income structure regarding the local budgets ................................................... Semen, M.V. Optimale faktorenkombinationen in produktionssystemen der bergbauindustrie ................................................................................... Silivestru, T. Particularities and suggestions concerning agricultural credit in Romania in perspective of integration in European Union .. Silivestru, T.; Dobre-Baron, O. Proposals regarding methods used on the interests granted for agriculture purposes ............................................ Slusariuc, G. Consideration about the market of the motor industry Tiuzbian, I.N. The local income multiplier model Oxford Brookes University ..

pag 131 137 141 147 153 159 163 169 177 181 185 193 201 209 213

Annals of the University of Petroani, Economics, 3 (2003), 5-22

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ESTABLISHMENT OF MICA COMPANY AND THE TAKEOVER OF RUDA 12 APOSTOLI MINE UNDERTAKING LOCATED NEARBY BRADMIRCEA BARON, OANA DOBRE-BARON *ABSTRACT: After the First World War the Romanian society, its industry with the extractive industry in particular, enters a new and prolific stage of development. Within this context, the Romanian mining societies, among which Mica company are being established, with the declared purpose of extracting the riches of the underground. It shall purchase the gold mines belonging to Ruda 12 Apostoli mining association, and it shall further create a suitable framework for developing one of the most prestigious economic institutions in Romania in the period between the two world wars. KEY WORDS: period between the two world wars, mining industry, Mica company, Ruda 12Apostoli

The Union occurred in 1918 and the birth of the Large Romania pushed forward the relation built among all the Romanian provinces and settled all through the ages; it accomplished a suitable, national, economic, social and cultural framework for a rapid development of the production forces. The Union enlarged the territory and increased the demographic potential but it also gave birth to real opportunities for using different types of cultural and economic potential reached by getting all the riches into the body of the country. Economically, the Union jointed the internal market and the national economy into one whole; it allowed reaching a new stage in the social and economic development by a faster growing of the production factors. All the changes that are about to come shall speed up the industrialization in spite of all the losses produced by the destructions occurred and the economic disorganization produced by the war. The process of unification shall make possible the implementation of a long range of social and economic reforms, with favorable results for the further development of the economic society. The internal social and economic aspects*

Assoc. Prof., Ph.D. at the University of Petrosani, Romania Assist. Prof. at the University of Petrosani, Romania

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Baron, M.; Dobre-Baron, O.

together with the political issues, the strategies used, the international situation triggered the development of the Romanian society towards a certain direction who made possible a constant progress during all the period between the wars, in spite of some limitations. Gnter B.L. Fettweis claims that the mining activity has a biunivocal relationship with the social, economic, political and cultural reality as it shall act upon some of its important fields: state and politics, economy and society, science and technique, art but at the same time it is influenced by the society where it develops1. The extraction of useful mineral substances represents an activity without which the society could not develop but, at the same time, mining activity is conditioned by the social order, by the physical and intellectual ability of those who work in this field, by the evolution of science and technique and by the internal and international context. Mining in the Romanian area and also the extraction of gold and silver ores is an activity that can be proven of having taken place since the primitive era and up to present days.2 The mining activity remained one of the most important fields of economy in the period between the two world wars, and it had a very significant role in realizing the social product and the national income3. The Romanian mining activity made available for the society goods extremely important for the material production, both as raw materials, as well as fuel, goods we would have had to import hadnt we had them4. The Romanian mining activity from the period between the two world wars has a series of characteristics, which are not to be developed in the present study.5. We know that after the Unification, the leading factors of the Romanian state, political characters, specialists declared themselves in favor of a new management of the Romanian societys riches and in this context the management of the useful mineralGnter B. L. Fettweis, Reflexion ber den Bergbau zur Zeit des Georgius Agricola, Res Montanorum, Leoben, 1994, nr. 9, p. 7. 2 See, for example, N. Maghiar, t. Olteanu, Din istoria mineritului n Romnia, Editura tiinific, Bucureti, 1970. 3 N. P. Arcadian, Industrializarea Romniei, second edition, Imprimeria Naional, Bucureti, 1936, p. 187. The contribution of the mining industry to the national income million lei Year Gross Petrol Coal Methane Gold, silver, salt, % of the national Gas quarries, other national Income metals income 1929 196000 12480 2556 487 1520 8,25 1930 145000 12767 1784 564 1519 10,80 1931 111000 9007 1367 404 1109 10,20 1932 103000 9400 1239 341 1233 11,84 The only imported raw materials were iron, besides iron works (N.P. Arcadian, Op. cit., p. 195) and coal, mainly from Turkey bituminous coal for coke [Analele Minelor din Romnia (A.M.R.), XVII, nr. 10, 1934, p. 393]. 5 For details see, Mircea Baron, Crbune i societate n Valea Jiului. Perioada interbelic, Editura Universitas, Petroani, 1998, p. 109-130.4 1

Establishment of Mica company and the takeover of

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substances deposits a largely debated subject, at the same time seeking and finding solutions for solving this matter. We know the fact that the judicial process of the first years after the Unification created a framework to realize both the nationalization work of art for the goods having foreign capital, especially enemy one6, of transforming the mining enterprises in anonymous Romanian companies with major Romanian leadership and capital7, as well as a better management of the states goods by selling some of the companies that belonged to it8. As many things depended on the decisions of the Peace Conference in Paris, while waiting for the signing of the peace treaties and in order to prevent the allied capitals to skip the position gained from the war, the Romanian authorities acted, first of all, by publishing the Decree - Law no. 2162 of 6th June 19199. The Decree stipulated that, until further notice, it was forbidden to grant any discoverer titles, exploration permits and exploitation agreements for the mineral substances mentioned under article 2 in the Mining Law of 189510, this decision being valid both for applications to be filed, as well as those already filed. Moreover, by the Decree - Law no. 4241 of 7th October 1919, it was forbidden, until six months after the general peace treaty has been signed to perform any transactions and transfers of mining and industrial goods generally all over the country11. In J.C.M. no. 2358/ 3 October 1919, by which it was requested the approval of this Decree Law it was shown that it sprang from the necessity to put an end to the speculations going on lately, speculations carried out by some agents, involving industrial and mining goods12). By applying a safety sequester upon the goods that now fell within the Romanian states jurisdiction were interested both the bourgeoisie of the Vechiul Regat (The Old Kingdom = Romania until 1918), as well as the Transilvanian one, therefore the Directing Council would act accordingly, deciding on the 1st April 1919 that the industrial and commercial enterprises will not be put under sequester, but under security and control13, and by Order no. 2706, of 25th April 1919, all commercial enterprises, establishments, companies and associations from the territory subject to the administration of the Directing Council who had its headquarters on the Hungarian territory, were put under its control14. Therefore control and not sequester orC.Hamangiu, Codul General al Romniei., vol. XI-XII, 1922 - 1926, p.3-20; p. 617-678. Ibidem, p. 626-627. 8 Ibidem, p. 610-617. 9 C. Hamangiu, Op. cit., vol. IX-X, p. 73. 10 In the 2nd article of the Mining Law of 1895 there are considered as mines those deposits known as containing in layers or mass deposits; under paragraph 2 there are included metal like substances, such as: gold ores, silver, platinum, mercury, lead, iron, brass, tin, zinc, as well as precious stones (C. Hamangiu, Op. cit., vol. II, p. 706). 11 Ibidem, vol. IX-X, p. 225. 12 A.M.R., II, 1919, nr. 4, p. 345. 13 Gheorghe Iancu, Preocupri ale Consiliului Dirigent pentru reorganizarea activitii industriale din Transilvania (1918 - 1920), Marisia, 1975, nr. 5, p. 272. 14 L. Bathory, Contribuia industriei carbonifere la dezvoltarea social-economic a Romniei ntre 1919-1929 (Tez de doctorat), Cluj-Napoca, 1981, p. 27.7 6

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liquidation was the principle that would comply to the clauses of the Peace Treaties from Saint - Germain15 and Trianon16 and which would enable a new approach of the situation and of the mines future. The political parties, especially the National Liberal Party (Partidul Naional Liberal) and the National Romanian Party (Partidul Naional Romn from Transilvania), would lobby for the entrance of the Romanian capital and State into the mining companies. At the same time, another factor interested in the mining activitys development was the capital, especially the bank capital, but also the industrial one. Virgil Madgearu believed that up to 1923 the financing of the industry was done exclusively by the large banks and that the policy regarding the participation of banks in the industry, policy that determined the blending of the banks interests with the industry, was uphold over 10 years after the Unification, with positive effects for the industrial activity. The truth to be said, on the long run, for some banks this aspect of their activity was not exactly favorable17. Unlike the period before the wars, the basic activity of the big capital becomes the industrys financing, and the big banks gradually become, together with the industrial capital, the lords of a huge amount of production means, thus becoming parties of the industrial production directly interested in this18. On their turn, the industrial companies became interested in participating in the banks activities because they ensured better conditions for getting a loan and for safekeeping of values. That is why the industrial companies struggled to gain control or influence over the banks by purchasing bank shares, by increasing capital, by establishing specialized banks such as Banca Minelor, Creditul Tehnic, Creditul pentru ntreprinderile Electrice, Societatea Naional a Creditului Industrial, Banca de Credit Aurifer i Metalifer19. There takes place an increase in the industrys dependency on the foreign finance sources, phenomenon to be noticed especially at banks, thus there is an increase of the value of the industrial investments in the banks portfolio20. A special chapter of this activity is represented, in the context of a favorable legal framework and that of underlining some economical necessities social and political, the nationalization work of art carried out in the Romanian industryTratat de Pace ntre Puterile Aliate i Asociate i Austria. Protocol i Declaraiuni. Semnat la Saint - Germain - en-Laye la 10 septembrie 1919, Imprimeria Statului, Bucureti, 1920, p. 62 (Articolul 249). 16 Tratat de Pace ntre Puterile Aliate i Asociate cu Ungaria. Protocol i Declaraiuni. Din 4 iunie 1920 (Trianon), Imprimeria Statului, Bucureti, 1920, p. 46 (articolul 191), p. 58 (articolul 232), p. 73 (articolul 250). 17 V. Madgeru, Evoluia economiei romneti dup rzboiul mondial, Bucureti, 1940, p.438. 18 N. P. Arcadian, Finanarea industriei romneti, Bucureti, 1936, p. 10. 19 V. Axenciuc, Studiu cu privire la ntrirea dominaiei capitalului financiar n Romnia pn la criza economic), n vol., xxx, Studii privind istoria economic a Romniei, vol. I, Editura Academiei, Bucureti, 1961, p.195. 20 Ibidem, p.200.15


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generally speaking, and in the mining industry especially, during the years following the Unification. The Nationalization action regarding the industrial enterprises with foreign capital, mainly of those that used to have connections with the Eastern Europe, resulted into the break-in of the major Romanian banks into hundreds of enterprises, especially in the new provinces, thus putting a break on the tendency of the French, Italian and British capitals to take over these enterprises. This activity was carried out with the support and guidance of the state and with the undisputable help of the National Romanian Bank (Bncii Naionale a Romniei - B.N.R.). The bank union involved in this process, made of 22 banks and companies together with the largest nine banks from Vechiul Regat21, accepted in 1920 to sign an agreement with the Ministry of Industry and Commerce (Ministerul Industriei i Comerului - M.I.C.) according to which it was under the obligation not to buy shares of the existing industrial enterprises in those territories and not to participate in the transformation of those enterprises into new companies Romanian capital investment, unless at least 50 % of the companys capital would be Romanian and the Board of Directors members number would be at least half Romanian and the president of the Board would be Romanian22. Forming several banking consortia most of them together with Banca Romneasc, the main bank with Romanian capital, liberal they participated in the process of nationalization23. There are to be mentioned the nationalization and the establishment of the mining companies Petroani (1921), Lupeni (1924), Valea Jiului de Sus, Minele de crbuni din Ardeal (1923) in the mining industry24, of U.D.R. (1920)25 in the mining and metallurgical industry, etc. At the same time, with the support of the bank and industrial capital, there appeared new mining companies such as Creditul Minier (1919), Creditul Carbonifer (1920), Exploatrile de micThe nine banks were considered to be: Banca Romneasc, Banca Marmorosch - Blank, Banca General a rii Romneti, Banca Agricol, Banca de Credit Romn, Banca Comercial Romn, Banca Chrissoveloni, Banca de Scont, Banca Comerului Craiova. 22 V.Axenciuc, Op.cit., p.197, apud., V. Slvescu, Organizaia de credit a Romniei, Bucureti, 1922, p. 152. In Arhivele Naionale Deva (A.N.D.), Fond Societatea Salgtarjn, Dos. 53/1920, f. 2, are named 23 institutions that accept to take part in the process of nationalization: Banca Agrar (Cluj), Banca Agricol, Banca Albina (Sibiu), Banca Central pentru Industrii i Comer (Cluj), Banca Comercial Romn, Banca Comerului (Craiova), Banca de Credit Romn, Banca Franco-Romn, Banca General a rii Romneti, Banca Marmorosch, Blank & Co, Banca Naiunii, Banca Romneasc, Banca de Scont a Romniei, Banca rneasc, Banca Victoria (Arad), Banca Viticol a Romniei, Banca L. Berkowitz, Banca N. Chrissoveloni, Creditul Extern, Creditul Minier, Creditul Tehnic, Creditul Tehnic Transilvnean (Sibiu), Industria Ardealului (Braov). 23 xxx, Banca Romneasc. 1911 - 1920, Bucureti, 1921, p. 23-24. 24 L.Bathory, Societile carbonifere din Romnia i capitalul bancar autohton i strin (1919 - 1921), Studia Universitatis Babe-Bolyai, series Historia, fasciculus 2, p. 123 - 131. 25 Costin Murgescu i colaboratori, Contribuii la istoria capitalului strin n Romnia, Editura Academiei, Bucureti, 1960, p. 77-81; Istoricul dezvoltrii industriei petrolifere n Romnia, p. 8.21

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Voineasa (1920), Romnia Carbonifer (1920), Minele de aur Breaza - Zlatna (1928), I.R.D.P. (1919)26etc. Mica company was set up in such a context. The Romanian capital, alone or in co-operation with foreign capital, either the existing one in the companies already set up, or the one that meant to be invested, would complete the nationalization work of art. The process would rely upon the existence of the resources that were worth putting to good value, on the existing capital, on a legal and organizational framework that existed or that was to be perfected along the way, thus becoming the beneficiary of a positive attitude towards the process and upon the states interest and the Romanian societys interest, generally speaking. On the 10th March 1920, by certification no. 4772/1920 of Ilfov Court House, Notary Department and by sentence no. 124/1920 of the same Court House, I Commercial Department, there are approved The Constitutive Document and the Statutes of Mica company that becomes authorized to operate legally 27. There is a period of expectation that begins toward the end of 1919 beginning of 1920. On the 22nd November 1919 in Bucharest there is concluded a Company Contract (Contract de societate) between Societatea Romn de Industrie i Comer S.A. Bucharest, represented by its delegated managers eng Ion P. Gigurtu and Radu Bogdan, on the one hand and architect Gh. Sachelarie, on the other hand. The purpose of this contract was to set up a company on behalf of several parties (S.N.C.), Industria Pietrei, having as main activity the exploitation of construction stone quarries, limestone and granite from Albeti commune, Muscel county obtained by Gh. Sachelarie from Mathei Drghicescu and I. B. Isboiu through licensing contracts, certified at the Muscel Court House, of quarry exploit franchise as well as the exploitation of any other quarries of any kind, commerce or industry directly or indirectly related to the activity mentioned above28. This document signifies the beginning of the involvement of Societii de Industrie i Comer S.A. Bucharest, and mainly of eng. Ion P. Gigurtu29 in the miningVezi de exemplu: A.M.R., II, 1919, nr. 1, p. 57-62; III, 1920, nr. 8-9, p. 578, 639; III, nr. 6-7, p. 412 - 414, 427; XI, 1928, nr. 2-6, p. 190. 27 A.M.R., III, 1920, nr. 3-5, p. 281-289. 28 A.N.D., Fond Societatea Mica , Dos. 5/1922, f. 33-34. 29 Ion P. Gigurtu (1886-1959), graduated the Mining Academy from Freiberg and BerlinCharlottenburg. He will become one of the founders of Mica company and, gradually, as general Director and later on as president of the Board of Directors he will become the real master of it. He was an MP in the Romanian Parliament (1926), representative of the Ministry of Industry and Commernce (Ministerului Industrie i Comerului) during the governorship of Octavian Goga-A.C. Cuza (28 decembrie 1937-10 februarie 1938), representative of the Ministry of Public Works and Communications (Ministerului Lucrrilor Publice i Comunicaiilor - 24 noiembrie 1939-1 iunie 1940) and representative of the Foreign Affairs (Afacerilor Externe - 1-27 iunie 1940) during the governorship of Gheorghe Ttrscu, president of the Ministers Council (Consiliului de Minitri - 4 iulie-4 septembrie 1940). He was imprisoned at the Sighet prison (6 mai 1950-5 iulie 1955) (C.C. Giurescu, Amintiri, ALL, Bucureti, 2000, p. 448); see also Mircea Muat, Ion Ardeleanu, Romnia dup Marea Unire,26


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industry. The quarries from Albeti will form part of the capital of the future Mica company30. By the document of franchise from 15th January 1920, signed between dr. tefan Cazimir and Transilvania. Banc pentru Comer i Industrie from Bucharest, transcribed by Gorj Court House with no. 282/1920, the Bank obtains, at the price of 675000 lei, to which 2750000 lei are added, the price of six carts of mica (muscovite31), that were in the quarry, the right to exploit the mica franchises and the other ores to be found within the perimeter that was property of dr. tefan Cazimir in the Lotru Mountains32. This purchase represents a very important step in order to set up the assets of the future Mica company. During the meeting of 30th March 1920 of the Board of Directors of Mica company it was approved the purchase of the franchises Stefan Casmir from Transilvania. Banca pentru Comert i Industrie. At the same time Mica company took over all the Banks rights and duties it had; the total amount of the transaction was to be paid at the certification of the franchise document, guaranteeing annual payment from the reserves fund of Mica company, and the Banks right to appoint two members in the Board of Directors and a auditor33. On the 2nd, 4th, 13th March 1920 there is signed between Aleman Oancea, owner from Brezoi (Vlcea), and the off-springs of Petru Oancea - Maria Mcelaru (born Oancea) and captain Horia Mcelaru, Traian Oancea from Bucharest on the one hand and C.V. Maltezeanu, eng. Anton Esser, eng. Ion P. Gigurtu from Bucharest, working for and on the behalf of S.A.R. ltd, in the process of setting up, Mica Bucharest, documents [separate - n.n.] of sale for wood to be cut and of franchise forvol. II, 2nd part, Editura tiinific i Enciclopedic, Bucureti, 1988, p. 1080-1125, 1142-1318; a portrait of Ion P. Gigurtu we can find in Petru Pandrea, Madgearu, Carol II, Manoilescu, Magazin Istoric, XXXVI, 2002, nr. 4, p. 27-29. 30 The quarries will be purchased by Mica company in 1922 (A.M.R., VI, 1923, nr. 4-5, p. 438) 31 See details about deposits of white mica (muscovite) from Romnia, in the Lotru Mountains, on the border between Vlcea and Gorj counties, at David Rotman, Deposits of white mica (muscovite) from Romania, A.M.R., V, 1922, nr. 1, p. 1-18. The German occupying authorities opened the first quarry and they exploited it between March 1917 - November 1918; from the three galleries opened there were extracted 157288 kg. of mica. It is to be remarked the fact that besides Mica company, for the exploitation of the deposit from Lotru Mountains, there will be established in 1920, by Creditul Minier and eng. Vittorio Albertelli, the Exploatrile de Mica Voineasa company, with an authorised capital of 100000 lei; this company received for 29 years, the franchise for exploitation of mica ores from Stneica mountain, Voineasa commune (Vlcea) (A.M.R., III, 1920, nr. 8-9, p. 580). 32 A.M.R., III, 1920, nr. 3-5, p. 283. 33 A.M.R., III, 1920, nr. 3-5, p. 315. During the general Assembly of Mica company from 19th February 1922 the Board of Directors decision was approved as to give up the contract with dr. tefan Cazimir, for this was weighing on the company with extremely high royalties (Societatea Mica, Darea de seam a Consiliului de Administraie i Raportul cenzorilor ctre Adunarea general ordinar a acionarilor, Exerciiul 1921, Tipografia Curii Regale. F. Gbl Fii, Bucureti, 1922, p. 5)

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mica and other ores quarries34 according to which they sell to be cut over 29 years, without the buyer having the right to come back for the second time, the forest on the Mnileasa mountain, Voineasa commune; the sellers give, also for 29 years, with possibility for extension for another 11 years, the exclusive franchise right for the mica and other quarry and for other ores and metals without any reserve of exceptionfrom above and underground of the entire Mnileasa mountain, the quantity of mica found on this territory becoming property of Mica company35. The conditions for the sell purchase are, basically, the same for all sellers, the amounts varying according to the size of the portion given away by each. The one that benefited most was Aleman Oancea, who sold, with 3 million lei of which the forest was worth 500000 lei, and the mining franchise 1,5 million lei half of the estate he owned himself on the Mnileasa mountain, together with the heirs of his brother Petru Oancea. This received from Mica company as follows: - 3 million lei, of which 2 million lei cash and 1 million lei under the form of 2000 shares at Mica company to be set up yet; - a royalty of 12% of the gross mica production and other products or ores to be extracted from his side of the property, or 6% of the total amount of the mountain; the total amount of the royalty is set every six months in cash or in kind, with the right to transport mica or another ore free of charge to Voineasa; for as long as the franchise lasts he should receive a minimum of 210000 lei annually, regardless if there is any activity or not, or 12% (6%) if the value of the production obtained exceeds 210000 lei; - 10000 lei annually, as compensation for degradation of the surface; - the right to be part of the Board of Directors, if he accepts shares or royalties from the Mica company, this right being transmitted to the heirs until the franchise expires; - the exclusive right to supply the workers of Mica company in the area, at the current selling price; - Mica company will rent, over the whole duration of the franchise, with 5000 lei monthly, the house owned by Aleman Oancea in Voineasa36. This way the future Mica company takes over the exploitation area of the only important deposit of mica in Romania, and in time it will increase the property by purchasing, for instance, with 80000 lei, a part of wood (45%), owned by Petru Droc34 35

A.N.D., Fond Societate Mica, Dos. 8/1920, f. 2-5, 6-10, 20-24. On the 6th April 1920, the Cretzeanu family (Dumitru and Paraschiva - born Oancea) from Rmnicu Vlcea, decide to sell indivisible share representing 1/6 of the forest from Mnileasa Mountain and the exclusive mica franchise rights as well as other minerals and metals. This property will be sold to Mica company by Decree of Vlcea Court house from 25th March 1922 (Ibidem, f. 11-19). Thus was concluded the sell of the entire Mnileasa Mountain with all its mica reserves. 36 Ibidem, f. 3-5. During the meeting of the Board of Directors of Mica company from 30th March 1920 there will be approved the franchise documents signed between Aleman Oancea and the descendents of Petru Oancea. Aleman Oancea will become a member of the Board of Directors (A.M.R., III, 1920, nr. 3-5, p. 315; nr. 6-7, p. 459).


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from Voineasa on Runculeul Mountain, neighboring westwards with Mnileasa Mountain37. Thus the fixed assets necessary to motivate the set up of a mining company are created. This company should deal, among other things, with extraction and sell of the mica deposit from Lotrul Mountains. We may believe, based on further development of events, that this purchase effort had in the mind of its initiators a different ending from the one initially declared, namely expansion of activity towards areas more profitable than exploiting mica deposits. But it was a necessary step for the beginning. On 10th March 1920 the Ilfov Court House approves the Constitutive Document and Mica company Statutes. By the Constitutive Document38 it is decided by Transilvania. Banc pentru Comer i Industrie Bucharest, Banca Sindicatului Agricol Ialomia Bucharest, Societatea Romn de Industrie i Comer Bucharest, dr. C.V. Maltezeanu, eng. Anton Esser and eng. Ion P. Gigurtu from Bucharest to set up an anonymous company under the name Mica S.A.R.M., with its authorized headquarters in Bucharest, Berthelot Street, no. 1039 The goal of the Company was represented by developing the mining industry in Romania and, especially, gaining quarries of mica and other minerals in order to be exploited in Gorj and Vlcea counties belonging to the company Transilvania. Banc pentru Comer i Industrie and to misters eng. Anton Esser and eng. Ion P.Gigurtu, former property of dr. tefan Cazimir and of the Oanceas The authorized capital was worth 21 million lei, divided in 42000 shares of 500 lei nominal value, being subscribed in various assessments by its founders. Of the amount subscribed 30% was deposited at B.N.R., according to the requirements of the law. It was established that this authorized capital could be increased up to 50 million lei, in one or more issues, by a simple decision of the Board of Directors40. The founders gathered together during the first General Assembly would appoint, for a period of 4 years, according to article 125 of the Commercial Code and to article 24, paragraph IV of the Statutes, 16 members in the Board of Directors, 5 auditors and 5 assistant auditors. Also, the following would be elected: gl. Alexandru Averescu, president, gl. Constantin Coand and D.Grecianu vice presidents, dr. C.V.37 38

A.N.D., Fond Societatea Mica, Dos. 5/1922, f. 19. A.M.R., III, 1920, nr. 3-5, p. 281-283. 39 It was a temporary headquarters, The General Headquarters of Mica company being later on established in Bucharest on Calea Victoriei no. 63-65 (building purchased by Banca Sindicatului Agricol Ialomia and eng. Vasile Petrescu on 23rd November 1921 with 11 million lei; A.N.D, Fond Societatea Mica, Dos. 5/1922, f. 3-4) and on Roman Street no. 24 (building purchased in 1922; A.M.R., VI, 1923, nr. 4-5, p. 438). 40 During the meeting of the Board of Directors from 17th August 1920 it was decided the increase of the authorized capital (A.M.R., III, 1920, nr. 8-9, p. 581), the General Assembly of 17th March 1923 modified articles 4 and 5 of the Statutes approved by the Ilfov Court House on 10th March 1920; by modifying article 5, paragraph 1 (chapter III) it was decided: the authorized capital is of 50 million lei, represented by 100000 shares of 500 lei each. The shares are at the bearer (Ibidem, VI, 1923, nr. 4-5, p. 420).

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Maltezeanu and eng. Ion P. Gigurtu delegated managers, eng. Anton Esser general manager for a period of 10 years41. The statutes of Mica company are developed in 9 chapters and 41 articles42. The company was set up for an indefinite period of time between founders and those who would become owners of the shares that represented the authorized capital, for mining companies all over Big Romania and in any part of the world it would find an interest. In order to fulfill its goal (article 4) the company could: - require, buy, sell, license or participate in exploitation permits and exploitation activities for any mining object; - buy land for buildings; - set up, buy or participate in industrial enterprises; - carry out financial, commercial, land or building transactions, buy or sell such buildings related to the above-mentioned goal. This entire specification was list like and it did not impose any boundaries43 The administration of the company (chapter IV) was to be entrusted to a Board of Directors, made of 9 - 17 members, elected for a period of 4 years by the General Assembly. Form among its members, the Board of Directors would elect the president, two vice presidents and would delegate two managers. The delegated managers together with the general manager, appointed by the Board of Directors would make up the Direction Committee that would have to directly manage the company. Also there were established the followings: the procedure to call General Assemblies and their role (chapter VI), the method of drawing up the balance sheet, the method of calculating the benefits and of sharing it (chapter VII), method to wind up the company (chapter IX). Once set up, Mica company tended to extend its participation in the Romanian mining industry. The first step, which proved to be the most important one, was represented by the purchase of the mining complex near Brad, Hunedoara county, known under the name of gold mines of the mining association Ruda 12 Apostoli44. The entireEng. Anton Esser resigns in October 1920 from the position of general manager, and the Board of Directors of Mica company eng. Ion P. Gigurtu to fill in this position, who in his turn is replaced from the position of delegated manager by George Kapri (A.M.R., III, 1920, nr. 10, p. 713). 42 A.M.R., III, 1920, nr. 3-5, p. 283-289. 43 During the General Assembly from 17th March 1923 in order to synchronize the statutes with the new reality of Mica company, determined by the purchase of the gold mines of the Ruda 12 Apostoli mining company, paragraph 1 of article 4 of chapter II (Company goal, Operations) of the statutes was modified and in place of the text The company goal is, first of all, to exploit the mica franchises is drawn up the following text: the company goal is to exploit the price mine in the country and abroad. It would be able any industries or commerce related to the interests of the company; A.M.R., VI, 1923, nr. 4-5, p. 420 44 The name of this type of mining company comes from the participation rate = cuxa. This is a creation of the German Austrian legal life, being presented in the Austrian Mining Law of41


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existence of Mica company was built around this achievement until the nationalization from 11th June 1948. As we showed in the introduction of this study, after the war there was borne a major interest for the putting into good value by the Romanian capital, alone or in cooperation, of the important mineral resources contained in the underground of Transilvania and Banat. The state, but particularly the private capital created here a powerful extractive industry where the investments made situated many companies, technically speaking, at the same level with the European and world-class mining. There was a specialized labor force and all these realities imply the idea of a necessary involvement that could generate certain and important gains. The magazine Analele Minelor din Romnia, with the support of Transilvanian mining specialists, disseminated, between 1918-1920, various branches of extractive industry from Transilvania and Banat, and at the same time disseminated information about the achievements in this field, thus underlining their importance for the future of the Romanian economy and mining45. In this context, it was published the article signed by engineers V. Pucaiu, C.I. Mota, Minele de aur din Brad i Scrmb46. On this occasion a detailed presentation is done of the Ruda 12 Apostoli mining association. At that moment the property belonged to Harkortsche Bergwerke und Chemische Fabriken A.G. company from Gotha (Germany)47: the layout of the land; the rock formations; the metalliferous veins and the origin of the gold; the mines and the installations necessary for ore working. The authors of the1854. It is a method of temporary economic organization between the anonymous company from where it borrows the franchise of the associates share and company on behalf of several parties from where it borrows the participation form which is not a nominal value, expressed in currency, but a share of the social assets. The participation in the mining association of cuxas cannot be divided between more than 128 associates. 45 See: C.I. Mota, Generaliti asupra industriei miniere i metalurgice din Banat i Ardeal, I, 1918, nr. 2 i 3, p. 36-41; V. Pucaiu, C.I. Mota, Minele de aur de la Roia Montan, II, 1919, nr. 3, p. 171-179; V. Pucariu, Anchet asupra gazelor naturale n Transilvania, II, 1919, nr. 1, p. 11-27; V. Pucariu, C.I. Mota, Uzina metalurgic de la Zlatna, II, 1919, nr. 5, p. 379-385; C. Hoisescu, Minele de crbuni din Valea Jiului (Petroani), III, 1920, nr. 2, p. 91-115; V. Pucaiu, C.I. Mota, Zcmintele de bauxit din Munii Bihorului, III, 1920, nr. 2, p. 115-122, V. Pucaiu, C.I. Mota, Minele de asfalt din Ardeal, III, 1920, nr. 3-5, p. 229-238; A.C. Sartoris, Industria fierului n Romnia, III, 1920, nr. 10, p. 643-656; nr. 11, p. 757-770. 46 A.M.R., II, 1919, nr. 4, p. 272-282. 47 The German company owner of the cuxas of Ruda 12 Apostoli mining association can be found under the name of Harkortschen Bergwerke und Chemische Fabriken zu Schwelm und Harkorten A.G. zu Gotha (Tr. Suciu, Bile de aur de la Brad, n, Anuarul XXXVIII al Gimnaziului romn greco-oriental din Brad i al coalei primare anexate acestuia pe al 45-lea an colar 1913-1914, Tiparul Tipografiei arhidiecezene, Nagyszeben (Sibiu), 1914, p. 1; Ion Rusu Abrudeanu, Aurul romnesc. Istoria lui din vechime pn azi, Cartea Romneasc, Bucureti, 1933, p. 255)

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study draw several conclusions important for the decisions to be taken later on. They accuse a possible lack of interest on behalf of the mines management for carrying on the activities under the unclear conditions from after the end of the first world war hence the necessity for the State to get involved either by putting the goods from Brad area, belonging to the German mining company under judicial sequester, or by the possibility of introducing the state monopoly for gold mines. Also the authors propose a possible re-acquiring of the cuxas, and in this context it is necessary to attract Romanian capital. During the act of nationalization of the Ruda 12 Apostoli mining association there will be found two parties interested in the destiny of this economic entity. Because the requirements of the peace treaties to be signed in Paris were not going to be favorable to capitals belonging to subjects from the states defeated during the first world war48, they would try to save their investments by agreements, either with capitals coming from the winner countries, or with the Romanian ones, concentrated especially in Vechiul Regat; the later organizing itself, as shown, in order to take over these values. For this purpose there take place negotiations between Mica company and the German Harkortsche Bergwerke und Chemische Fabriken A.G. company from Gotha in order for the later to give up its rights on the Ruda 12 Apostoli mining association from Brad49.Over, notes 15, 16. The first testimonies regarding the mines to become part of the Ruda 12 Apostoli mining complex are dated to the mid XVIIIth century. Around 1760 the mines from Ruda became property of the Ribiczey family who exploited them with good results until the rebellion from 1784 when the mines were devastated. The mine from Valea Arsului was under the exploitation of the Erariuc who built a pond in order to capture the water necessary for the installations proper functioning. In 1791 these mines become the property of count Toldalagy and of baron Zeyk who start the Ruda 12 Apostoli and Sfntul Ioan Evanghelistul mining associations from Zdrahol. No ample works were carried out here, but during the 40s of the 19th century the Victor gallery at Barza and the Ferdinand gallery at Valea Morii were opened. They became main exploitation galleries. Unfortunately the fights during the Revolution of 1848 had negative effects on the mines around Bradului, the mining activities here entering a stage of prolonged decline. The modern development begins after 1884 when the German Harkortsche Bergwerke und Chemische Fabriken A.G. company from Gotha took over the cuxas Ruda 12 Apostoli mine, together with Ruda and Barza mines for the amount of 600000 florins, and in 1899 it took over the Sfntul Ioan Evanghelistul association together with Valea Morii and Valea Arsului mines. The German company Industriegesellscaft Geislingen will aquire Musariu and Dealul Fetii mines, as well as the mines belonging to small mining associations from around, forming a mining complex, Gewerkschaft Goldbergblau Musariu. It will have an intense extracting activity and in 1899 Gewerkschaft Goldbergblau Musariu will be acquired by Harkortsche Bergwerke und Chemische Fabriken A.G.. The Harkortsche Bergwerke und Chemische Fabriken A.G. company first took over the ore extracted from Musariu mine and the ones from around it at the stamps from Racova, then the ore extracted from Barza and Ruda at the stamps from Zdrapi. After taking over the entire complex around Bradului that gets the name of Ruda 12 Apostoli in 1899 there will be built the Gura Barza49 48


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Ion Rusu Abrudeanu described the context and the way the Ruda 12 Apostoli50 associations mines were nationalized. He showed that during the war few investments were made, the rich veins were exploited without making preparations of opening new works at the same time. When the war ended the difficult situation of the mines was accentuated by the uncertain situation created by the social and ethnical strains. At the same time the golds price was dropping and it was established in 1919 at 17000 de lei, while the extraction costs went up to 30000 de lei/kg of gold. Under these circumstances the Ruda 12 Apostoli mine is forced to reduce its activity, without stopping the production, for it would have risked loosing the franchise granted by the state for the exploitation of the gold and silver deposits. Ruda 12 Apostoli was forced to sell the entire gold production to the Directing Council receiving a down payment of 17000 crowns/kg, the rest of the amount was to be paid later on. As the amounts received by Ruda 12 Apostoli were insufficient to cover the expenses, the company was forced to ask important sums in German marks on monthly basis from Gotha. Also the uncertainty determined by the future clauses of the peace treaties mounted, as well as the conviction that the capital of the subjects coming from the defeated states during the first world war would be, one way or the other, punished by the winners. That is why the Gotha company would try to sell the mines in the Brad area, giving a British citizen, W.H. Hollloway51, an option that expired on the 2nd May 1920. W.H. Holloway would pass on this option to the representatives of the Mica company, eng. Anton Esser and dr. tefan Cazimir, immediately signing a salesworking plant, and the stamps from Racova and Zdrapi will be abandoned. The entire installation will be realized by the German company Friedrich Krupp Grusonwerk from Magdeburg and it will consist of 15 Californian stamps of 2 batteries of 5 arrows weighing 360 kg each, a mill with 10 arrows weighing 650 kg and related installations. In the years 18841911 this mining complex was able to produce 27918,520 kg of gold; in 1912 it obtained the largest annual production of 2002,350 kg of gold, of which 936, 324 kg from native gold, and the rest from stamp ore. Unfortunately under the circumstances imposed by the First World War, the production will decrease reaching in 1918 to 610, 934 kg of gold. The mines tended to become unprofitable (Tr. Suciu, Op. cit., p. 4, 8, 12-14; Ion Rusu Abrudeanu, Op. cit., p. 255; Nicolae Maghiar, tefan Olteanu, Op. cit., p. 215-215; xxx, 2000 de trepte n mineritul zrndean, Deva, 1979, p. 93-94) 50 Ion Rusu Abrudeanu, Op. cit., p. 258-259 51 Many considered that the involvement of W.H. Holloway in the nationalization of the Ruda 12 Apostoli mines association was nothing else but an attempt to save the interests of the German capital, hiding it behind this British citizen, and later on of the Mica company. This is the only way that the rush to nationalize the mines of the Ruda 12 Apostoli association was carried out with, the possibility given to Mica company to pay in six months time the total amount of the transaction, the eagerness with which the price was reduced from 60 million German marks (Mk.) to 15 million Mk. etc. (Constantin Murgescu, N.N. Constantinescu, Radu Paul, Constana Bogdan, M. tefan, Contribuii la istoria capitalului strin n Romnia, Editura Academiei, Bucureti, 1960, p. 83). These allegations might be true for the beginning of the process for later on the presence of the German captain at the Mica company became less significant.

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contract for the mines and the installations for the price of 40 million Mk., plus 20 million Mk. for this option (it was to be divided between the three persons). However this contract was to be approved by the Board of Directors of the Mica company. Given the perspective to acquire high value assets, would basically approve of this purchase, Ion P. Gigurtu supporting the project and promising to continue the talks in order to obtain a better price. The things upon which the talks for establishing the transaction prices were based first of all upon he inexistence of the visible ore deposits without which all the installations commercial value was reduced, the impossibility to sell the gold, the political uncertainty, the existence of the workers restlessness and the debit account that increased on monthly basis. These causes forced the seller to reduce the price and the buyer to pay a minimum price considering the expenses to be made in order to set the mine to its optimum parameters. It was believed that in 1913, when the production of those years was around 1500-1600 kg of fine gold per annum, the value of the mines mounted up to 5 million lei in gold, and at the moment of the transaction, considering an annual production of 500-600 kg of fine gold, the value was reduced to one third. Under these circumstances and considering the works to be undertaken, as well as the payment of the creditors, the price could not exceed 1,5 million lei in gold or 15 million lei, considering the current exchange rate52. The talks took place in Berlin and Mica company managed to obtain a decrease of the selling price to 40 million Mk. cash, payable in Berlin at the Mittel Deutsche Kreditbank. This fact was approved by the contract signed by the two parties on 3rd May 192053. By this contract the seller, Rudaer 12 ApostelGewerkschaft, represented by its delegated manager dr. Leonard Buchrucker (from Brad) sells to the buyer, the Mica company, represented by eng. Anton Esser, general manager and dr. tefan Cazimir, authorized representative, his entire property from Transilvania54, as it is to be found today, made of mines, explorations, lands, forests, houses, rail roads, stamps and mining installations from above and underground, plans, commercial ledgers, furniture, and the stock of mining products existing on the 1st May 1920. As a basis for this we have the specification of possessions given by the seller to the buyer at the beginning of April 1920. The buyerA.S.D., Fond Societatea Mica, Dos. 5/1925, f. 16. A.S.D., Fond Societatea Mica, Dos. 27/1927, f. 3-4. 54 The Ruda 12 Apostoli mining complex consisted in 1920, when it was taken over by Mica company of: 1762 ha of franchises for gold exploitation, situated in Brad, rel, Criscior, Bucuresci, esuri, Hrgani, Luncoiul de Jos, Luncoiul de Sus, Ormindea communes and 104 exclusive perimeters of exploitation. The gold mines from Ruda, Barza, Valea Morii, Valea Arsului, Musariu i Brdior; 194 ha of franchises for coal exploitation in ebea and Mesteacn mines ebea mine); 1803 portions of forest; cuxas at six smaller mining associations; industrial rail road with a total length of 50 kilometres; Gura Barza working plant; Gura Barza electric plant; cableway; mechanical workshop; laboratory, buildings for mining activities, dwellings for clerks and workers, etc (A.S.D., Fond Societatea Mica, Dos. 5/1925, f. 3-18).53 52


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has the right to give away to others these rights stipulated in the sales contract (article 1). The buyer benefits from the day of signature of the contract of the object bought [the entire possession and the works will be given to the buyer as soon as the representatives of the buyer arrive in Brad article 13] and he takes over all the rights and duties deriving from this contract; the payment of the purchase price will be done after all the paperwork is finished, as soon as the possession and the property of the sold object will be transferred upon the buyer, but no later than the 1st July 1920 (article 12). Under article 10 of the contract it is specified that this contract is signed under the condition that the Romanian Government assents to its completion and execution as such an agreement would be necessary according to the existing laws; the possible taxes, payments of damages, acquisition expenses, taxes, etc., the Romanian Government might require at the execution of this contract fall within the competence of the buyer (article 11). As a suggestion of M.I.C. that the price of 40 million Mk. would be exaggerated, new talks take place and they are finalized on 10th August 1920 with a minutes55 concluded between Ruda 12 Apostoli, represented by dr. Leon Buchrucker and the Mica company, represented by engineers Ion P. Gigurtu and Anton Esser. The two parties acknowledged the fact that the Romanian state, based upon the contract signed on 3rd May 1920 in Berlin, had given approval for Ruda 12 Apostoli company to become the possession of the Mica company, reserving however all rights regarding liquidation of all German assets in Romania rightfully his according to the Peace Treaty from Saint-Germain. Thus fulfilling the condition established by article 10 of the Contract concluded on 3rd May 1920 of authorizing the sale by the Romanian Government56, Mica company deposits in a big bank in Berlin the amount of 20 million Mk. for the benefit of the German company from Gotha. This amount will be paid after the Romanian Government withdraws its claims from the liquidation of the German companys assets from the Ruda 12 Apostoli mining association or when these assets are no longer under sequester. The Mica will give to the German company 20000 shares of 750 lei per share = 15 million lei. By these payments that were to be carried out until 1st October 1920 the latest the German company considers the price offered as being sufficient57 - under the condition that the Ruda 12 Apostoli mining associations participation should not exceed 45 million lei especially since Mica company takes over all the debts of the Ruda 12 Apostoli mining association, with a total value of 8233133 crowns (however being the owner of 81,295 kg of gold that was deposited as a guarantee in the Banca Albina Sibiu). If the Romanian Government claimed the liquidation of the German companys assets55 56

A.S.D., Fond Societatea Mica, Dos. 29/1927, f. 13-14. The Journal of the Ministers Council no. 2255/11th August 1920, by which the special permit is granted according to the Decree - Law 2447/7th June 1920, the state reserving all the rights in the case of liquidation of the Ruda 12 Apostoli mining association (A.S.D., Fond Societatea Mica, Dos. 27/1927, f. 5) 57 Probably Ion Rusu Abrudeanu refers to this transaction, Op. cit., p. 259, when he claims that there has been a decrease of the sum to 30 million Mk.

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from Romania, and Mica company would be obliged to pay the acquisition price as object of the liquidation, this can withdraw the money deposited and no longer offer the 20000 shares without the German company having any claims. Once the minutes were drawn up, Mica company formally became the owner of the Ruda 12 Apostoli association and could represent it in front of the authorities. The actual management of the company in Brad was entrusted to eng. Adolf Sieber. Ion Rusu Abrudeanu showed that new talks would take place in Berlin by a delegation made of the delegated managers eng. Ion P. Gigurtu and baron G. Capri58. The results of these new talks was represented by the conclusion of a Final Convention59 on 10th November 1920 for the completion and execution of the sale contract concluded through the documents under private signature dated 2nd May, 29th June and 10th August 1920. The sale price changes and it is fixed at 10 million Mk. payable when the Romanian state definitively gives up its possible rights of liquidation60; 10000 shares of 500 lei per share of Mica company delivered at the same date; 11027000 lei representing the debts of the Ruda 12 Apostoli association which have been taken over by Mica company in exchange of the gold deposited as guarantee at the Banca Albina in Sibiu and the right to claim from the Romanian State the difference in price for the gold successively given to the Directing Council of Transilvaniei in exchange for this down payment. Also it was established that, provided that Mica company franchises, within five years from the date of transcribing this document, the mines Ruda 12 Apostoli purchased with this document and thus would acquire a benefit, the selling company is entitled to receive 25% of the clean profit. Eng. Adolf Sieber undertook the obligation that together with a representative of Mica company to fulfill all the formalities required by the Mining Law of 1854, in effect in Transilvania, in order to transcribe the cuxas and the mining properties based on the certificate granted by M.I.C.

Ibidem A.S.D., Fond Societatea Mica, Dos. 29/1927, f. 11-12. 60 For a while Mica company lived under the threat of sequester for having purchased the Ruda 12 Apostoli mining complex that used to belong to enemy capital, although this transaction was carried out with the approval of the Romanian Government and Mica company fulfilled the requirements of the Romanian Ministry of Finance paying the price of 15 million Mk. only as a deposit in a German bank. In order to be able to develop itself freely, Mica company proposed in 1925 to find a mutually convenient solution and on 20th February 1926 the Ministry of Finance, The Liquidation Department from the General Department of Payments for War Damages and of Peace Treaties passed a conclusion by which Mica company was forced to pay in 1927 to the Ministry of Finance the entire sum of purchase, giving 25000 free shares and ensuring the state a progressive participation in the benefits for a period of 15 years and the presence of two members in the Board of Directors (A.S.D., Fond Societatea Mica, Dos. 10/1920, f. 136; Ion Rusu Abrudeanu, Op. cit., p. 262).59

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According to the Convention, starting with 10th November 1920 Mica company becomes the owner of the cuxas and of all the goods and assets of Ruda 12 Apostoli association. Mica company brings to the attention of the authorities, on 13th November 1920, the content of the Convention, and the Government by J.C.M. no. 5166/1920 will authorize this transaction, which becomes permanent. Based on the deposit of 15 million Mk. in a German bank on 20th October 1921, Alexander Schmidt, a banker from Berlin, as legal representative of Harkortsche Bergwerke und Chemische Fabriken in Gotha signes in Zlatna a document by which he declared that he had sold to Mica company all 128 cuxas of Ruda 12 Apostoli61 association. This fact will allow that, on 25th October 1921, based on the license granted by J.C.M. 2255/11th August 1920, the Mining Authority in Zlatna should erase the 128 cuxas of Ruda 12 Apostoli that had belonged from no. I-CXXVII to Harkortsche Bergwerke und Chemische Fabriken company in Gotha, and no. CXXVIII to Mueller Miska from Gotha. It also permitted the transcription on behalf of Mica62 company this situation being confirmed by the VIth Mining Inspectorate on 31st October 192263. Therefore we can see that the takeover was not smooth but already in June 1920 Mica company understood to exercise its authority over the mining complex near Brad. In a Notification towards the clerks and workers of the mines of Ruda 12 Apostoli, made by eng. Ion P. Gigurtu, the representative of the Board of Directors, he showed that from that moment the mines were the property of Mica company, who expected to carry on the works and the exploitations of the old mining company with the same success and to give them a further development in the near future64. This would truly happen, Mica company being during the period between the two world wars the biggest Romanian producer of precious metals with an important role, not only economic, but also social and cultural in the golden square of the Apuseni Mountains.REFERENCES: [1]. Arcadian N.P. - Finanarea industriei romneti, Bucureti, 1936, p. 10. [2]. Arcadian N.P. - Industrializarea Romniei, second edition, Imprimeria Naional, Bucureti, 1936 [3]. Axenciuc V. - Studiu cu privire la ntrirea dominaiei capitalului financiar n Romnia pn la criza economic), n vol., xxx, Studii privind istoria economic a Romniei, vol. I, Editura Academiei, Bucureti, 1961 [4]. Baron M. - Crbune i societate n Valea Jiului. Perioada interbelic, Editura Universitas, Petroani, 1998

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A.S.D., Fond Societatea Mica, Dos. 27/1927, f. 22. A.S.D., Fond Societatea Mica, Dos. 27/1927, f. 20. 63 A.S.D., Fond Societatea Mica, Dos. 27/1927, f. 21. 64 A.S.D., Fond Societatea Mica, Dos. 8/1921, f. 222-223.

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[5]. Bathory L. - Contribuia industriei carbonifere la dezvoltarea social-economic a Romniei ntre 1919-1929 (Tez de doctorat), Cluj-Napoca, 1981 [6]. Bathory L. - Societile carbonifere din Romnia i capitalul bancar autohton i strin (1919 - 1921), Studia Universitatis Babe-Bolyai, series Historia, fasciculus 2 [7]. C.Hamangiu - Codul General al Romniei., vol. XI-XII, 1922 - 1926 [8]. Gheorghe Iancu - Preocupri ale Consiliului Dirigent pentru reorganizarea activitii industriale din Transilvania (1918 - 1920), Marisia, 1975, nr. 5, p. 272. [9]. Giurescu C.C. - Amintiri, ALL, Bucureti, 2000, p. 448) [10]. Gnter B. L. Fettweis - Reflexion ber den Bergbau zur Zeit des Georgius Agricola, Res Montanorum, Leoben, 1994 [11]. Madgeru V. - Evoluia economiei romneti dup rzboiul mondial, Bucureti, 1940 [12]. Maghiar N., Olteanu St - Din istoria mineritului n Romnia, Editura tiinific, Bucureti, 1970 [13]. Murgescu C. - Contribuii la istoria capitalului strin n Romnia, Editura Academiei, Bucureti, 1960 [14]. Murgescu C., Constantinescu N.N., Paul R., Bogdan C., tefan M. - Contribuii la istoria capitalului strin n Romnia, Editura Academiei, Bucureti, 1960 [15]. Muat M., Ardeleanu I. - Romnia dup Marea Unire, vol. II, 2nd part, Editura tiinific i Enciclopedic, Bucureti, 1988 [16]. Rusu Abrudeanu I. - Aurul romnesc. Istoria lui din vechime pn azi, Cartea Romneasc, Bucureti, 1933 [17]. Slvescu V. - Organizaia de credit a Romniei, Bucureti, 1922 [18]. Suciu T. - Bile de aur de la Brad, n, Anuarul XXXVIII al Gimnaziului romn Greco oriental din Brad i al coalei primare anexate acestuia pe al 45-lea an colar 1913 1914, Tiparul Tipografiei arhidiecezene, Nagyszeben (Sibiu), 1914 [19]. A.N.D., Fond Societatea Mica [20]. Societatea Mica, Darea de seam a Consiliului de Administraie i Raportul cenzorilor ctre Adunarea general ordinar a acionarilor, Exerciiul 1921, Tipografia Curii Regale. F. Gbl Fii, Bucureti, 1922 [21]. Tratat de Pace ntre Puterile Aliate i Asociate i Austria. Protocol i Declaraiuni. Semnat la Saint - Germain - en-Laye la 10 septembrie 1919, Imprimeria Statului, Bucureti, 1920


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THE MAJOR INFLUENCES OF THE ORGANIZATIONAL BUYING BEHAVIOR AT THE LEVEL OF THE ROMANIAN MINING COMPANIESVIRGINIA BLEANU *ABSTRACT: This paper reviews the influence factors that affect the buying behavior of the organizations and also identify those environmental variables that have a major impact on the level of the Romanian mining companies. KEYWORDS: organizational/industrial buying behavior; influence factors; buyclasses; analytic buygrid framework; buying center; influencers, deciders, buyers, gatekeepers roles.

According Webster and Wind [4], the factors that affect the organizational (industrial) buying behavior can be grouped into four classes: environmental, organizational, social (interpersonal) and individual influences that are represented schematically in the figure no.1. Among these, the influences of the environmental factors imply, perhaps, the most numerous problems because they are difficult to appreciate and measure, manifesting itself not only by providing information, but also through restrictions and opportunities. The environmental influences include physical variables (geographic, climatic and/or ecological), but also technological, economic, political, legal and cultural. The environmental factors determine values and standards of the seller-buyer interaction (in the relationships with the suppliers) alike those between competitors, they are influencing, as well, the information flow that enter in the organization. It is critical to understand the impact of the changes of any environmental variables in order to make the proper strategic decisions, as such the unconsidering of these influences may become very dangerous for any organization. Organizational factors are part of the company strategy, with the objectives, policies, procedures, structures and systems supposed by that. The link between strategic objectives and the behavior of the organizational buyer is obvious: finally, the buying of the products/services it happens just for organization to reach its proposed*

Lecturer at the University of Petroani, Romania

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Bleanu, V.

objectives, and the one responsible are paid for this. For instance, if a company is fixing as major strategic objective to take the leader position for quality on a certainmarket segment, the process of making decisions and the buying behavior will be governed by choising the suppliers whose products/services have the best quality. But, if the main objective is dominating the market through low prices (leader by costs), maximizing the sales or the profit, the most probable, the behavior of the industrial buyer will be dominate by choising the suppliers whose price offers are minimal, in acceptable quality conditions. Because in the case of the organizational behavior the buying decisions are made at the level of a buying center, that can include persons from more departments, situated on different hierarchical levels, is obvious that both organizational structure and the one specific to the purchasing department will influence its behavior.ENVIRONMENTAL INFLUENCES The basic demand (level); the suppliers offer (delivery terms); the purchasing power; the technological changes (rhythm); economic, social, political, legislative, competitive conditions (conjuncture) ORGANIZATIONAL INFLUENCES Structural and procesual setup, the systems, policies and working procedures established in order to achieve the strategic objectives

ORGANIZATIONAL BUYING BEHAVIOR

INTERPERSONAL INFLUENCES The group dynamics and mutual influencing relationships between the members of the buying center (formal and informal: authority, status, empathy, persuation)

INDIVIDUAL INFLUENCES The personal features of the members of the buying center (age, professional background, culture, personality, position, the attitude vs. risk, personal motivations)

Fig.1. The main influences on the companies buying behaviorSource: adapted from Philip Kotler, The Management of Marketing, Ed.Teora, Bucharest, 1997 [3, p. 281]

The interpersonal and individual factors refer to the group dynamics and individual features that influence the buying process, to relationships and mutual influences between the members of the buying center, and they are, in most of the cases, extremely subtle. They depend on position/function within the organization, the formal and/or informal authority, but also on other personal features of individuals that compose the buying center. The conflicts of interests can affect the relationships, because the motivation at the level of the buying center is given by the needs of the organization, but on these are overlapped the social needs as well as the needs of respect, recognition, personal and professional security of the centers members. Thus,

The major influences of the organizational buying behavior

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the ones that have enough persuasion power (well-seen, important relationships, invested with reward and punishment power,etc), can influence decisively the buying decision. But, according Bonoma, sometimes, the person who really has the authority is acting from shadow, is almost invisible from outside, and not always the one who has the higher position is the most influent [1]. There is, therefore, a multitude of variables that influence the industrial buying behavior in various ways, so that their identification and appreciation constitute very interesting aspects of the research. In the studies and specific literature, the standard approach is to categorize these influences beginning with macro-environmental factors and funnelling down through specific industry and organizational factors to the buying unit and finally the individuals within it. According to this approach, the research of the Romanian mining companies particular case is starting with an analysis at the industry level, considering the present conditions. Hereinafter are briefly presented some of the main aspects revealed through this primary analysis, focused on the major environmental influences. Until last decade of the 20th century, in the framework of the centralized economy, through the self-sustaining national policy in providing with mineral resources, it has dictated the opening and exploitation of all known types of deposits, no matter their feasibility. Unfortunately, the continuous and emphasized improvement of the mining industry, recorded for more than a half of a century, it was implemented through efforts oriented exclusively toward the increase of the production, without considering the real costs, much less, its implications on the environment. In the situation of the prices that were planned at the national level for the primary resources of energy, the ones of the indigenous mining products didnt represent a problem. Therefore, the purpose wasnt their alignment to the real production costs or to the external market prices. This, in the conditions of the specificity of our deposits that are particularly through complex and difficult geo-mining features (large depth of exploitation, a quite complicated tectonics, frequent insertions and inclusions of barren rock/bones in the useful formations, the hard hydro-geologic conditions, low contents of useful components, strong emission of methane in the coal deposits, etc. ). In addition, the qualitative parameters are quite low comparing with the reference one at worldwide level for non-metalliferous substances, and especially for coals. On the other hand, the refinement of the useful mineral substances is realized through classic technologies, generally appreciated as being at the level of those used on European and worldwide level. But the technical and economic performances that are achieved are inferior, just for the difficult exploitation condition of the Romanian mines, on which is overlapped, sometimes, the low reliability of the equipments. Consequently, while at the worldwide level the average value of the metallurgic products obtained from a tone of an industrial spare of ore is 17-20 USD, in our country this is much lower, varying between 5-13 USD/tone of spare [2]. According to the Romanian Constitution, the proprietary of the mining deposits is the state, which is exerting the right to commit their exploitation and management to some special organizations (companies and societies declared as being of national interest, that are subordinate to the public

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Bleanu, V.

authority represented by the Romanian Government, by the authorized Ministries). Nowadays, within the mining industry there are 10 national companies and societies and 111 commercial societies, out of which 7 for exploitation and refinement of the non-metaliferrous substances reserves, 10 specialized in the geological research, the rest having activities additional to the extraction and mining processing. Due to the distinct peculiar conditions of the deposits and their exploitation, the national mining companies are sustained through subventions and allotments from the state budget. Therefore, it is very clear that any component of the action plan, but especially the one referring to the incomes and expenses budgets of the companies, is depending on the budgetary policy of the government, on the period of drafting and approval of the yearly budgetary projects at the level of the state institutions. In its quality of owner, the state is exerting (through the specific Ministry) the right to name and revoke the management of those companies, that is hereby, authorized and responsibilized in making of the specific decisions to situate its activities within the general strategic coordinates of the industry. In the perspective of the year 2005, it is estimating that the request for coal and metals in concentrates will be constant (at the level of 2001 achievements). Consequently, the redressing-development policy of the Romanian mining industry is aiming the coverage of this request, in competitiveness conditions, and continuance of the restructuring process on the following main directions: The rational and efficient exploitation of the reserves, by stopping the activities in the areas where the costs are very high and by keeping in function of those production capacities to which there is real perspectives of performances improvement; The emphasized reduction of the production costs until a level comparative with the one of the imported mining products, in parallel with gradual decrease of the subventions granted by state for the indigenous products; Increase the productivity and the quality of the products, decrease the pollution of the environment and renewal of the ecologic balance influenced by the mining activities through modernization of the exploitation and processing technologies; Concentrating the investment efforts for endowing with new technology for the coal pits, for the mines and pits of metaliferrous ores that are placed in the feasible areas, modernization of the treating and preparation plants and environment protection; Improvement of the legal and institutional terms so that to permit the accomplishment of these actions, as well as the long-term development of the mining industry, by encouraging the private investments, Romanian and foreigner. Consequently, the restructuring strategy and redressing-development policy of the Romanian mining sector are contouring the continuity perspective of this industry, but in completely different coordinates of economic efficiency and exclusively for those mineral substances, perimeters and units of exploitment and refinement that will prove their viability. From the strategic aspects previously presented it results that the primordial interest consist in assuring the economic reasons for coverage the internal request of mining products, from internal production. Until this point, is obvious that at the level of the mining companies from our country, there are exerting the combined influences of the environmental variables previously mentioned (the specific of the

The major influences of the organizational buying behavior

27

deposits, technologies and working equipments, the level of the request, the socioeconomic conditions, as well as the opportunities and restraints with significant political determination arisen pursuant to the status of national companies). Among these, the restrictive influences less controllable and adjustable are given by the characteristics of the deposits, which constitute in the same time the element of objective causality for other variables of influence, such as the limited level of the supply and the less favorable position of the Romanian companies in the global competition. Moreover, among the conjuncture factors specific to the Romanian transition economy, the political influences can be considered similar, through the predetermination of the others categories of conjuncture influences. Between these last ones, on the particular area of interest (buying process), arises the decisive impact of the legislative variable. Consequent to the relevance of the activities specific to the mining industry, but also to the financial support granted by state, in present, the processes of assuring the material resources and services necessary to the Romanian mining companies, enter under the incidence of legislation regarding the public acquisitions (O.U.G. no. 60/25.04.2001, O.G. no. 20/24.01.2002 and the Law no. 212/19.04.2002). According to the legislative regulations, these companies represent contractor authorities, having all the rights and obligations that result from the stipulations, standards and dispositions issued previously for their application. In order to appreciate how can be influenced the buying behavior it was realized a detailed analysis of the legal stipulations, considering the general implications on the contractor authorities (mining companies) and the concepts specific to the field, as such they are approached in literature and reflected in the results of the specialized researches. Pursuant to this demarche, has been deduced the following points susceptible of affecting the buying behavior of the Romanian mining companies: Referring to the buying process: the analysis of the procedures legally instituted demonstrates that, generally, the provided procedural phases can be assimilated with the ones included in Robinson, Farris and Wind basic model (the analytic buygrid framework). In return, the influences of the buyclasses mentioned in the buydgrid are ignored, as long as the compulsory implementation of one or other of the procedures depends on the value of the contract and not on the novelty or complexity of the buying situation (buyclass). Practical, because of the legislative stipulations, every important acquisition for the mining company contractor authority has to be approached every time as a modified rebuy, but with the obligations of treating most buyphases. The immediate consequence (proven by calculation) is the unjustified extension of the total time of completing the process, with all the negative effects that result from this. Estimating the stipulations related to the allotment criteria of the contract, the evaluation on the basis of only one criterion (the lowest price) can be considered almost outdated. That reflects, finally, the decrease of the importance given to the essential phase of the buying process the one of suppliers selection. Referring to the buying center: the structure, dimensions, and accomplishing of the buying center tasks within the mining companies can be influenced through the high degree of procedural formalization. This can overload the tasks of the specialty

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Bleanu, V.

departments and, identically, the ones of the buying center, moving their attention from the accomplishment of the specific ones, really relevant for the company. As regards the roles within the buying center, they can be influenced by instituting the evaluation commissions and their legal attributions, that imply a cumulative focusing of the influencers, deciders and buyers roles at the level of those commissions members. On the other hand, according to the principle of free competition, transparency and equal treatment, the legislative regulations seem to limit the power associated to the gatekeepers of obstructing the information from suppliers to the center. But, the number of persons who play such roles can grow, involving even personal from outside of the contractor authority. Referring to the effects induced towards other influence factors of the buying behavior: The impact of the legislative variable on the organizational factors is obviously. This results from the necessity of adapting the jobs and departments of the contractor authorities (mining companies) implied in the process to the attributions, tasks and responsibilities instituted through the normative stipulations. Moreover, is quite likely to appear effects in the (social) interpersonal factors area too. For example, because for the assignment of every contract has to be named an evaluation commission, it is possible that the relationships (formal, informal), the behavior and motivations of the members to be much different from an acquisition to another. And, not the last, has to be accentuated the benefic effect of the institution of the electronic system aquisitions. It estimates that here, the influence of the legislative variable can manifest in two directions: on one hand, its sincere and appropriate coordination can lead to significant savings; on the other hand, it constitutes an impulsion instrument of the companies in improvement and development of the IT. Thus, it might be about a positive influence propagated and multiplied through the technologic variable. In conclusion, through general analysis of the influence factors of the buying behavior at the level of the mining companies from our country it was evidenced the peculiarly powerful impact of the environmental factors. The specific of the deposits and of the exploitation conditions, the level of the request, the socio-economic and political conditions are sending their influences from the level of the general behavior, while the influences of the legislation are direct, have an decisive impact and are sent also on the organizational, social, individual and even technologic factors.REFERENCES: [1]. Bonoma, T.V. Major Sales: Who Really Does the Buying?, Harvard Business Review, May-June 1982, p.111-119 [2]. Fodor, D.; Baican, G. The present situation of the Romanian mining, Engineering Universe, no. 11-12, June, 2002, p.4-5 [3]. Kotler, Ph. The Management of Marketing, Teora House Printing, Bucharest, 1997 [4]. Webster Jr., F. E.; Wind, Y. Organizational Buying Behaviour, Prentice Hall, Englewood Cliffs, New Jersey, 1972 [5]. *** O.U.G. no. 60/25.04.2001 regarding the public acquisitions (approved with changes and completions by Law no. 212/19.04.2002); O.G. no. 20/24.01.2002 regarding the electronic system of public acquisitions and methodological norms of application


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OBHECTIVES AND VALUES OF A COMPANYEMIL G. BIBER*ABSTRACT: In our days a company is considered to be first of all, a production agent and than integrated in social structure, thats why it has the status of a complex system founded permanently in exchange with the outside due to a multitude processes of perceptions decision and information exchange which must be synchronized with a social and economical field very instable. KEY WORDS: company, economic strategy, shareholders, managers, employees, suppliers, clients, environmental protection, customer protection, Bates model, Holt model

By a company objective we will understand that part of the economic strategy which establish the purpose of the company and convert it into a numeric component. The objectives are settled by the managers when they established the economical strategy, based on previous experience and various studies .From these, the fundamental objectify remains the same in spied of the market environment restrictions as the followings: shareholders are interested in shares value; managers are interested in growing flow of incomes and in the part allocated for development; the employees are interested in salary level and work conditions; suppliers hope in the collaboration continuity with a partner with a rising activity; clients appreciate the price of the goods against their quality; local and central administration is interested in company possibilities for paying taxes; society is interested in environmental and consumer protection. From the whole potential objectives set by a company we shall present the most frequently as: optimized capital efficiency which means optimized profit; company development reflects mangers point of view saying that is better to increase the actives based on profit instead of issuing shares or by loans. maximized profit is most encountered objectify request by sharesholders.The rising of profitableness take place in the same time with the rise of risks, which is causing the reduction of stock market. maximization of the company value is the most important objective for all investors, and much more credible than others. To achieve this objective

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Biber, E.G.

materialized by rising of dividends and shares cost , it is necessary to respect the following requirements: engage the patrimony in investments in a high rate of profitability, ensure the preservation of patrimony by maintaining the budget balance of the company, protection against risks due to economical environment. By company value we shall understand an appreciation of a good in monetary expression. The company value size can not be evaluate only against its patrimony or its present richness (patrimony value) , it must be appreciate and evaluate also against the future projects in which the patrimony will be engaged (financial value ). When the reference value, is done strictly to a company, must be taking onto consideration the time for property transfer, fact which will assign to the value term the meaning of price for property transfer. Company stability in a limitative way, presume to find an interval of values for the negotiate price between business partners. Against all mentioned above, its useful to do a stratification between value as result of an evaluation , which is a subjective matter done by an assessor ( economical value), and the price as a result of a negotiation between buyer and seller , which has an objective character. Companies evaluation practice knows many methods, which can be group like: classic methods, which deal with companies from the followings points of view: patrimonial elements(patrimonial evaluation method), economical results(financial evaluation), both perspectives (combined evaluation method); methods based on cash flow; bourse methods; other methods. From point of view of an investment action, companys market value is measured by: size of treasury flows ( profit, dividend ) which can be obtain in the next period; 2. period of time for estimation; 3. size of risk due to investment action; Based on these elements it can be measured: benefit capacity value, bourse value. 1. Benefit Capacity Value. Benefit Capacity Value is defined as economic result expected by owner of a company, consequence of an activity in a certain period of time. According to economic utility theory, a company has value if the owner achieved a satisfaction in holding the company. Evaluation methods based on benefit capacity have in view companys capacity for achieve incomes as profit, dividend or cash-flow. Based on followed result, for companys evaluation we have: 1. Company output value, which presumes clarifications for the followings aspects: A. measure the size of profit by: - accounting data - production capacity , according to formulas: - on constant costs: p = qxpc (1 c / 1000 )( I rip / 1000) + pr 1000

where: p annual net profit q physical annual production pc selling price express in constant values c / 1000- expenses at 1000 lei income rip income tax part payment

Objectives and values of a company other corrections pr reproductive net profit - on current costs: p = q x p c (1 + if )(1 c / 1000)(1 rip ) + pr

31

where: if- inflation annual average index - based on statistic methods using average increase rate of cost-efficiency ,turnover or capital; - based on analytic calculations which begin from estimated physical production, prices and costs; B. capitalization rate can be done with one of the formulas: r=rb(1+R) where: rb base rate R Risk bonus, between 25-200% from base rate, depending on companys risk: r = rb( + rr / 100)(1 + rdm / 100) , where: rr risk index, rdm monetary depreciation rate. C. the assign of evaluation period correspond with functionality period of the company (period for which the owner wish to keep it , thus financial recovery period) 2. Company cost-efficiency value, should be calculate in two ways: a. by updated , when value is shown in constant prices according to formula:VRE =

Dct (1 + r) t + Vrez (1 + e) dt =1

c

1

1

where: Dct= dividend from t year in constant prices b. by capitalization, according to formula: VRE = dividend 3. Cash-Flow. Cash-Flow is a monetary surplus which represents the monetary cash for a designated period and can be calculated as a subtraction between input flow (net profit + redemption rate + long term loans) and output flow (investments = repayable rates + interests + rolling stock). In brief , this method consists in adding updated cash-flow susceptible to be issued by the company on the estimated period , with updated residual value on the year for which there is no estimation , according to formula:CFa =D , where: D annual average r

(1 + r) tt =1

d

Cft

+

V rez (1 + r ) d

where: CFt- cash-flow estimated for year t Vrez- residual value

32 r- to update rate d- period of time for estimation

Biber, E.G.

4. Bourse Value. Bourse value is only for companies with bourse quotation. Evaluation methods are based on shares quotation and shares quotation in a previous period, companys politics against

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