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Conflict Studies / nota bene
Reference:

Competition between the trading houses "Churin and Co." and "Kunst and Albers" in the Far Eastern Russia in the late 19th – early 20th centuries.

Molchanova Elena Gennad'evna

ORCID: 0000-0003-4673-3587

PhD in History

Associate Professor; Higher School of Pedagogy and History; Federal State Budgetary Educational Institution of Higher Education 'Pacific State University'

680000, Russia, Khabarovsk territory, Volochaevskaya str., 163, sq. 132

lenmolch@mail.ru
Other publications by this author
 

 

DOI:

10.7256/2454-0617.2025.2.74240

EDN:

HUEZEH

Received:

27-04-2025


Published:

12-05-2025


Abstract: The subject of the study is the competition between the two largest trading houses in the Russian Far East - the Russian firm Churin & Co. and the German company Kunst & Albers. The article examines the main forms and methods of competition between these enterprises in the context of the socio-economic development of the region and state policy in the second half of the 19th - early 20th centuries. The history of the creation and development of these companies, the features of their retail networks, and their contribution to the urban life of Vladivostok, Khabarovsk, and other centers of the region are analyzed. The work includes an analysis of business strategies, interactions with authorities, adaptation to political changes (including the anti-German campaign during the First World War), as well as the influence of the rivalry between the trading houses Churin & Co. and Kunst & Albers on the development of the Far Eastern region of the Russian Empire. The methodology is based on the problem-chronological and comparative-historical approaches, with the involvement of archival materials (documents of the Ministry of Trade and Industry, the office of the Primorsky Governor-General), reports of government inspectors, the press and business correspondence. The scientific novelty of the work lies both in the formulation of the problem and in the comprehensive study of the transformation of economic competition into an instrument of political struggle, as well as in identifying the mechanisms of interaction between business and the state in the conditions of a peripheral region. The main conclusions of the study can be formulated as follows. The competition between the firms "Churin and Co" and "Kunst and Albers", combining market methods and political lobbying, became one of the main drivers of the region's development, contributing to the development of infrastructure, logistics and consumer culture. State policy (free port regime, government orders) determined the success of the companies. During periods of crisis, such as World War I, competition took on a destructive character: economic rivalry was replaced by ideological struggle, including slander campaigns and blackmail, which reflected the subordination of business to the political situation. The study confirms the thesis about the interdependence of economic and political factors in the development of peripheral regions of the empire, where business strategies were formed within the framework of a dialogue with state priorities.


Keywords:

Churin and Co, Kunst and Albers, competition, Far East, Priamurye, Primorye, Vladivostok, Blagoveshchensk, anti-German campaign, government contracts

This article is automatically translated. You can find original text of the article here.

Introduction

Competition between trading enterprises is an integral element of the functioning of a market economy. This process helps to improve the quality of goods and services, reduce prices, and stimulate innovation. However, along with the positive aspects, competition can also manifest itself in destructive forms, leading to conflicts that harm both market participants and consumers.

The socio-economic development of the Russian Far East in the second half of the 19th and early 20th centuries was characterized by a complex of problems caused by the specifics of the region. The main challenges of this period were: the need to settle the territories of the Amur Region and Primorye annexed to Russia, their economic development and development, ensuring the supply of necessary goods to the population, and the integration of the region into the all-Russian economic space. These processes took place in conditions of geographical isolation and remoteness of the region, insufficient level of development of transport infrastructure, which significantly slowed down the pace and determined their specifics.

Various aspects of the socio-economic development of the Russian Far East in the second half of the 19th and early 20th centuries, including the specifics of the formation and development of trade, are reflected in the works of researchers. Historians such as N.A. Troitskaya [21], L. I. Gallyamova [5; 6], T. Z. Poznyak [13], O. A. Ustyugova [22], T. G. Mamayeva [10; 11] and others have contributed to the study of these problems. Their works analyze the processes of economic development of the region, the formation of trade infrastructure, the activities of Russian and foreign entrepreneurs and enterprises. However, the issues of competition between trading firms were analyzed only in the general context of the socio-economic development of the region.

This study is aimed at analyzing the competitive relations between the two largest trading enterprises of the Russian Far East in the late 19th and early 20th centuries: the Russian trading house Churin & Co. and the German company Kunst & Albers. The paper examines the history of the formation and specifics of the development of these firms, their relationships, the main forms and methods of competition, as well as the applied business strategies.

Special attention is paid to the impact of these competitive relations on the state of the region's trade market, the nature of companies' interaction with government authorities, as well as their role in the socio-economic development of the region.

The chronological framework of the study covers the period from the 1880s, when a competitive environment began to form in the regional trading market, to 1917, which marked a fundamental turning point in the country's political system and marked the end of this historical era.

Materials and research methods

The research's source base includes published and unpublished historical sources. These are the records of government agencies, including the Ministry of Trade and Industry, the Office of the Amur Governor-General, the Office of the Military Governor of Vladivostok, etc. Significant sources for writing the article were the reports of government inspectors assigned to the offices and branches of the Kunst and Albers company during the First World War.

The research methods are problematic-chronological, comparative-historical, statistical, retrospective, as well as the method of specific historical analysis.

Results

In the 60-70s of the XIX century, that is, in the first decades after the Amur Region and Primorye joined Russia, competition between trading enterprises was mostly not pronounced, which was explained by the poor development of territories and a shortage of goods on the market. The state created authorities in the new territories, facilitated the resettlement of peasants, officials and other necessary specialists here. The administration was actively engaged in organizing the supply of the most necessary goods to the population of the Far East, but the efforts of Russian entrepreneurs were not enough to solve this problem. In this regard, the porto franco regime was introduced, which contributed to the growth of trade flows from abroad. During this period, the supply of goods to the region was carried out mainly by representatives of American and German companies that were able to ship goods by sea, and a few Russian entrepreneurs who delivered goods from Siberia and Transbaikalia.

The dynamics of the business development of Churin & Co. and the trading house Kunst & Albers were similar, due to the general socio-economic conditions and the peculiarities of the region's development. Both enterprises began their activities in the first years after the Amur Region and Primorye joined Russia. Favorable conditions for the development of their trade business were created due to significant government investments aimed at strengthening Russia's position in the region, as well as stimulating resettlement from the central parts of the country.

Ivan Yakovlevich Churin became one of the first Russian entrepreneurs who started their business on the Amur River. At the call of the Governor-General of Eastern Siberia, N. N. Muravyov, he took part in the Amur rafting, delivering goods from Chita to Sofiysk. It was during this period that his plans to establish his own trading business in the region were formed. The beginning of I. Y. Churin's commercial activity dates back to 1857 [10, p. 93], and 10 years later, in 1867, the firm Churin and Co. was officially founded [4]. Initially, its activities were concentrated in the Amur region, where it supplied goods from Transbaikalia and Siberia. In 1871, the company's trade representative office was opened in Blagoveshchensk, which for a long time remained the center of its economic activity [9, p. 87]. With the increase in the population of the region, the company's activities have spread to Primorye.

The company "Kunst and Albers" was founded in 1864 in Vladivostok by two German merchants, Gustav Kunst and Gustav Albers. Before that, they tried to do business in China, but faced fierce competition there, which forced them to move their operations to the newly annexed territory of Primorye. They were attracted here by the relatively low level of competition and the Porto Franco regime, as well as the relatively favorable attitude of the Russian authorities towards the activities of German entrepreneurs. Taking advantage of the shortage of goods in the region's market, Kunst and Albers organized sea shipments of goods first from China and then from other countries.

Of course, one of the key advantages of Churin & Co. was that it was a Russian company. Knowledge of the language, cultural characteristics and mentality of the local population, as well as an understanding of buying habits contributed to the successful adaptation of the company to market conditions. Russian merchants did not encounter language barriers and cultural differences that could make it difficult for foreign entrepreneurs to do business. All this contributed to more effective communication with local authorities and consumers, as well as helped in establishing trusting business relationships.

Unlike Russian entrepreneurs, German merchants had their advantages. Since the early 1860s, they were able to carry out sea transportation of goods, which significantly reduced delivery time and overhead costs. This allowed us to occupy our own niche and a leading position in the Primorye market from the very beginning. In addition, they had access to loans through German banks, which allowed them to finance their activities on favorable terms. The support of the German diaspora, including officials from among Russian Germans, as well as the assistance of German enterprises that already have experience in Russia, significantly strengthened their positions [26, p. 622]. Established business relations with foreign partners also played an important role in the success of German firms.

Of course, the activities of both Russian and German enterprises were important for the development of the Russian Far East, and each of these players contributed to the economic and social development of the region.

The beginning of competitive relations in the trade market of the Russian Far East dates back to the early 1880s, when trade and migration flows significantly intensified with the introduction of regular flights of the Voluntary Fleet. The sea vessels plying from Odessa to Vladivostok delivered not only migrants to the region, but also a wide range of Russian goods. Against the background of population growth, the market was gradually saturated with products from domestic factories and plants, which became an important factor in the socio-economic development of the region. Russian Russian Russian Russian trade revived, goods were quickly, willingly, even cheerfully sold out, which prompted foreign firms to pay attention to the tastes of Russians and to subscribe to some Russian goods... Russian firms have stood on firmer ground, although they cannot yet be serious competitors. for foreigners. But the beginning of competition with foreigners has already formed and exists" [17, pp. 21-22].

Thus, despite the continued dominance of foreign firms, domestic companies began to assert themselves confidently. Increasing the availability of Russian goods, their popularity among the population and flexibility in adapting to regional market conditions have become the basis for the formation of full-fledged competition in the coming decades.

Foreign trading firms, which previously held positions in the Far Eastern market mainly due to the maritime supply of imported goods, began to adapt to the new realities in the face of increasing competition. In an effort to maintain their competitiveness, they began to build their own logistics chains for the delivery of Russian goods to the Far East. Thus, in 1880, the co–owner of the German company Kunst and Albers, G. Albers, appointed the company's sales agents in key shopping centers - Odessa, Moscow and St. Petersburg. Soon, additional representative offices were opened for the purchase of goods in Warsaw and Riga [24, p. 105].

From that time on, competition began between the firms Churin and Co. and Kunst and Albers. Both companies developed the one-stop shop format, but they approached it in different ways based on their ideas about the target audience, how to promote products, and trade priorities. The competition between them was not limited to prices. The firms carefully observed each other, adopted successful solutions and looked for their own ways to stand out from the competitor.

For example, in an effort to adapt to the consumer preferences of the Russian market and strengthen its competitive position, Kunst & Albers has opened a specialized branch for the sale of Siberian goods. Its assortment included traditional products that are well known to the local population and in high demand: felt boots, sheepskin coats, samovars, fur hats, as well as other products that fit seamlessly into the lifestyle of the region's residents. This strategic move not only allowed the company to expand its customer base, but also helped strengthen its image as a company focused on meeting the needs of various consumer groups.

The business strategies of the two competing trading houses had a number of features. Churin & Co. has chosen a strategy focused on the mass consumer. The main focus was on a wide range and affordable prices. This was made possible by large-scale purchases, cost reduction, and trade expansion. This approach has made it possible to maintain competitive prices while maintaining acceptable product quality. In addition, the company sought to create recognizable brand features in its products. The range included fashionable novelties of famous foreign brands and exclusive goods, which caused customers to associate with modernity, quality and reliability. Thus, the Churin brand has become a symbol not only of accessibility, but also of the relevance of consumer choice.

The Kunst & Albers trading house also targeted a wide range of consumers, from the middle class to the affluent public. This allowed the company to offer products for different tastes and budgets. However, special attention in the strategy was paid specifically to the elite strata of society. A significant part of the assortment was selected taking into account the tastes of the wealthy public, and the level of service and comfort in the sales halls corresponded to the high expectations of privileged customers. The Kunst and Albers trading house located its department stores in the most prestigious and lively areas of cities, forming a space around them associated with high social status and consumer culture. In 1884, their main department store was opened in Vladivostok, which impressed their contemporaries: 18 departments, decorated according to the latest standards, offered a variety of goods from all over the world [7, p. 111]. This department store was a kind of "trading club" for citizens, where they could buy imported delicacies, fine wines, fashionable clothes, order the installation of the most modern ventilation, heating, water purification systems, etc. In 1893, the company opened the first power plant in the Far East [5, p. 41], which provided internal and external department store window lighting. The company built a long-term reputation as a reliable supplier, which was especially important in conditions of weak infrastructure and a limited number of alternative supply channels.

At the beginning of the 20th century, several dozen Russian and foreign trading firms operated in the Russian Far East. Among the most influential companies were the Russian trading house Churin & Co. and the American firm I. Emery, as well as the German companies Kunst and Albers and I. Langelitie", "Waldecker and Peppel" and others. But the undoubtedly recognized leaders of Far Eastern trade were the trading houses Churin and Co. and Kunst and Albers. The Siberian Commercial and Industrial Calendar for 1897 noted: "In the trading world, the trading house Churin & Co. and the Hamburg firm Kunst & Albers, which conduct extensive operations, are of great importance both in the city (Vladivostok) and in the district" [20, p. 478]. Their parallel development has led to intense competition for sales markets, influence on consumers, and privileges from the authorities. Their rivalry has become a key factor that has shaped the region's trade for several decades. Competition between firms has contributed to the development of trade infrastructure, the expansion of the range of goods and the strengthening of economic ties between the Far East and the world market.

By the beginning of the 20th century, the trading houses Kunst and Albers and Churin & Co. had formed extensive branch networks covering a significant part of the Russian Far East and Manchuria. At the same time, the approaches to their organization differed. Kunst & Albers built its network according to the classic European model: the main store in the port of Vladivostok, centralized delivery of goods by sea and their subsequent distribution overland. In contrast, Churin & Co. focused on the inner regions of the Amur region, gradually moving towards the coast. The management center of this company was located in the Amur region, which determined the structure of its development.

Despite the differences in approaches, the geography of the two companies' presence overlapped in many ways: their department stores and warehouses opened in the same key localities in the region (Vladivostok, Blagoveshchensk, Nikolsk-Ussuriysk, Khabarovsk, etc.), which inevitably led to direct competition for the attention and trust of local consumers. In terms of the number of branches, the German trading house Kunst and Albers was ahead of the Russian firm Churin and Co. By the beginning of the First World War, the Kunst & Albers network had 32 branches [7, p. 236], while Churin & Co. had 15 branches [4].

The geography of the two companies' commercial presence did not always coincide. The trading house Churin & Co., unlike the firm Kunst & Albers, carried out trading activities in the northern regions of the Far East, including such remote locations as Petropavlovsk-Kamchatsky and Cape Dezhneva [4]. In turn, the company Kunst and Albers, unlike Churin and Co., had its representative office on Sakhalin Island. [7, p. 329]

Kunst and Albers began to actively expand its presence in the Amur region only from the mid-1880s, opening a branch in Blagoveshchensk in 1887. For a long time, the company's management refrained from entering this market due to fears of competition from established trading houses such as Churin and Co. To successfully gain a foothold in the region, the company needed to overcome logistical difficulties and find ways to ensure competitiveness.

The delivery of goods to the Amur region remained one of the key problems: goods arrived through the port of Nikolaevsk and were transported by river steamships up the Amur River exclusively during short navigation. By spring, stocks of goods in warehouses were depleted, and the population was looking forward to the new shipping season. In these circumstances, Kunst & Albers was able to stand out due to the careful organization of logistics. The company aimed to have the spring steamer shipped from Hamburg arrive at the mouth of the Amur River in May and become the first vessel to enter the port of Nikolaevsk after the ice break. This gave the company an advantage over its competitors. An additional success factor was that Kunst and Albers offered goods all year round, without raising prices even in winter, when transportation was impossible, and many categories of goods were running out of other companies. This policy helped to strengthen customer confidence and allowed the company to strengthen its position in the region [7, pp. 139-140].

The Amur region market was also attractive to trading companies due to the high demand for agricultural implements and machinery. The Amur Region, being a predominantly agricultural region, was characterized by the active introduction of modern agricultural machinery. A.A. Kaufman, a Russian economist and expert on land use and resettlement, who traveled to the Amur Region and the Ussuri Region in the early 20th century, wrote: "The Amur peasantry currently plows exclusively with factory–made, mainly American plows, harvesters and threshing machines are becoming more widespread every year - there are villages where peasants have almost forgotten about the traditional sickle and manual harvesting of bread" [8, p. 48]. The peasants in the region had enough land and could earn extra money in gold mines, which ensured their ability to pay. Finally, the steady demand for agricultural products from the military and the gold mining industry stimulated the transition to mechanized working methods.

Agricultural machinery was supplied to the Russian Far East by both Russian and foreign companies, including the trading house Churin & Co. and the American firm I. Emery" and the German companies "Kunst and Albers", "I. Langelitie", "P. Nebel and Co." and others. Kunst & Albers held a leading position in the competition for the agricultural machinery market. In 1913, the total sales of agricultural machinery by this company in the Amur and Primorsky regions amounted to 675,000 rubles, which exceeded the figures of its main competitor– the trading house Churin and Co., whose sales reached 525,000 rubles [12, p. 82].

One of the characteristic features of the socio-economic development of the Amur region and Primorye was the active development of these regions, which was accompanied by a significant number of government supplies and contract contracts. Trading houses operating in the region originated in close cooperation with state interests on the Far Eastern outskirts of the Russian Empire. So, I. Y. Churin actually started his own business, responding to a state order – participation in the Amur alloys, which began the development of the Amur region. This cooperation has laid the foundations for the authorities' trust in the entrepreneur. In the future, the trading house Churin and Co. enjoyed the support of the administrative authorities of the Primorsky and Amur regions, who were interested in stable supplies to the population and troops. The company regularly received contracts for the supply of food and equipment, and also took an active part in the economic development of new territories. For example, with the start of construction of the Chinese-Eastern Railway, Churin & Co. chartered a steamship and a barge and sent its own expedition to Manchuria. This expedition, in the interests of the Russian project, not only provided supplies of goods, but also transported a topographic group that was supposed to be engaged in survey work. Such activities of the company contributed to the strengthening of the company's relations with government agencies, confirming its important role in the economic development of the Far Eastern territories [3, p. 290].

As for the company "Kunst and Albers", its foreign origin from the very beginning necessitated a special approach to issues of interaction with the authorities. The company's owners demonstrated a high degree of loyalty to government agencies, strictly observed established formalities, and engaged in charity work. And, of course, they tried to offer the most favorable conditions for supplying military and government institutions. The functioning of these relations was largely ensured by the Porto Franco regime in force at that time, which facilitated the organization of maritime supplies of goods and the creation of efficient logistics chains. In order to strengthen their positions in the region, the co-owners of Kunst and Albers, A. Dattan [19, p. 6] and A. Albers [1, p. 127], accepted Russian citizenship.

The efforts made by German entrepreneurs brought results fairly quickly. The military department has become one of the company's most significant customers. Already in 1880, the trading house received the first large state order for the supply of food for the needs of the fleet, accompanied by the allocation of a loan in the amount of 200 thousand rubles. In 1883, Gustav Albers, in a letter to the director of one of the German enterprises, noted: "Twenty years of experience and the reputation we have gained give us a chance to have more dealings with the government than any of the competitors" [25, p. 275].

Despite the intense competition between the trading houses Kunst and Albers and Churin & Co., in some cases they consciously cooperated when it was beneficial to both sides. One of the most striking examples is the joint participation of companies in a major state project to build a new land defense line of the Vladivostok Fortress, which began in 1910. Realizing that direct competition would lead to lower prices and, as a result, loss of profits, the companies agreed on a division of supply areas. Kunst & Albers took over the supply of cement, rebar and roofing iron, while Churin & Co. delivered beams and other building structures. In addition, the parties agreed on a common pricing policy, which made it possible to avoid a price war and create stable conditions for the fulfillment of the contract [7, pp. 224-226]. This example clearly demonstrates that competition does not exclude the possibility of cooperation. On the contrary, when performing large-scale tasks, coordination of efforts can become a strategy beneficial to all participants.

At the end of the 19th century. Russia began to pay special attention to the Far Eastern direction of its foreign policy, actively joining the struggle for spheres of influence in the region. As part of the implementation of this strategy, it was decided to lay the eastern section of the Trans-Siberian Railway through China. The construction of the Sino-Eastern Railway began in 1897. The Russian state invested heavily in the development of Manchuria, which contributed to an increase in demand for building materials and other goods necessary for the construction of the railway and its builders. An important stage was also the change in trade policy in the Far East: in 1901, the port franco regime in Vladivostok was abolished, while duty-free import of foreign goods remained in Port Arthur and the Far East. Under these conditions, trading firms Churin & Co. and Kunst & Albers intensified their activities in Manchuria and opened branches in key centers of the region. In particular, Churin & Co. has significantly expanded its branch network, opening outlets in settlements of the CER exclusion zone in northeastern China. The company's first large store was opened in Harbin in 1898 [23, p. 70]. Kunst and Albers also actively explored the region, opening branches in Harbin and Port Arthur. The high level of consumption created favorable conditions for trading companies, which received substantial income from their activities. For example, the income of the Kunst and Albers branch in Port Arthur in 1899 amounted to about 1.2 million rubles, and in 1900 it was already about 2.3 million rubles [25, p. 290].

The Russian-Japanese war became a serious test for the firms Churin and Co. and Kunst and Albers. The result was a significant reduction in the presence of the Kunst and Albers trading house in the region. Its branch in Port Arthur was closed, leaving only a small branch in Harbin, which sold mainly hardware [7, p. 211]

Unlike the German trading house, Churin & Co. has maintained a large-scale infrastructure in Harbin, including a large department store and extensive storage facilities. In 1909, the company opened its own sausage factory here, and soon launched other industrial enterprises: paint and varnish, sewing and cigarette factories [23, p. 71]. Churin & Co. branches and stores successfully operated in key shopping centers of Manchuria, such as Harbin, Mukden, and Qiqihar. This indicates that the Russian company continued to strengthen its position in the region, demonstrating a long-term approach to business development.

Thanks to this strategic choice, Churin & Co. trading house not only surpassed Kunst & Albers in Manchuria, but also demonstrated great resilience to political changes caused by the revolutionary upheavals in Russia at the beginning of the 20th century. This is due to the fact that a significant part of the company's business was concentrated in regions far from the epicenter of events, which minimized the negative impact on its operations.

In 1917, the trading turnover of Churin and Co. reached 35 million rubles. However, the lack of statistical data on the trading turnover of Kunst and Albers during this period does not allow for a direct comparison. It is known that in 1914 the turnover of the German company amounted to 17 million rubles [15, p. 12]. In the future, the scale of the Kunst and Albers company's activities decreased as a result of the anti-German campaign that unfolded in Russia with the outbreak of the First World War. Thus, it can be concluded that Churin & Co. proved to be more resistant to external political and economic challenges, which allowed it not only to maintain but also to strengthen its position in comparison with the German trading house.

When the First World War began, a large-scale campaign against "German domination" was launched in Russia. Numerous enterprises with German participation were hit, including one of the largest trading houses in the Far East, Kunst and Albers. The company's position has deteriorated dramatically. Employees who had German citizenship were interned, and the company's premises were searched. As with other German enterprises, state control was established over the activities of Kunst and Albers – a government inspector with broad powers was attached to each department.

Nevertheless, despite the increasing administrative pressure and anti-German sentiments, the company continued to operate, although the scale of its commercial activities decreased. The authorities did not decide to liquidate it because the role of the Kunst and Albers trading house in the region's economy was too significant. Even in wartime conditions, the company remained among the suppliers of goods and materials, including for the needs of the military department. The government inspector assigned to the Nikolaev branch of the company emphasized in his report dated December 5, 1915: "The company has recently monopolized all military and civilian supplies and contracts" [15, p. 12]. And this statement was not an exaggeration: in 1916, the trading house organized the supply of tin from Singapore, metals and leather belts from the USA – strategically important resources for the needs of the defense industry [14, p. 3].

Thus, Kunst & Albers retained some of its market positions in the region, largely due to its economic efficiency and international connections, which allowed it to offer conditions that were not available to other companies.

The trading house Churin & Co., being the main competitor of the German company Kunst & Albers in the Russian Far East, actively joined the anti-German campaign. This strategy had not only a political, but also a clear economic motive: Kunst and Albers, occupying a stable position in the market, prevented the establishment of monopolistically high prices by Russian companies. The report of the government inspector of the Nikolaev branch of the company stated: "Prices on the local market are dictated by a large Russian firm Churin and Co. However, according to general reviews, prices for most of the goods at Churin & Co. are always higher than at the Kunst & Albers trading house. Due to this circumstance, the Kunst & Albers branch has until recently received most of the contracts and supplies, discouraging large buyers from Churin & Co., such as local gold mining companies" [15, p. 12]. Thus, economic pressure from German business has become one of the factors that prompted Russian entrepreneurs to use ideological struggle as a tool of market competition.

Already in October 1914, the military governor of Blagoveshchensk informed the Amur Governor-General about a sharp deterioration in relations between the two largest trading houses in the region – Churin and Co. and Kunst and Albers. The reason for the conflict was the demonstrative "patriotic" activity of representatives of Churin & Co., obviously directed against their German competitors. In response, Governor-General N. L. Gondatti tried to stop the conflict by giving instructions: "Passions should not be allowed to flare up" [18, p. 117]. However, the intervention of the authorities proved insufficient: the confrontation went beyond the usual market competition and turned into a fierce information war. The initiative in this confrontation belonged to the firm Churin and Co., which not only launched, but also financed a large-scale smear campaign. In 1914, the Petrograd newspaper Vechernye Vremya began publishing a series of materials in which the company Kunst and Albers and its co-owner A.V. Dattan were accused of espionage and other "anti-state" actions. The author signed the publications under the pseudonym "Mzura". The next step was the publication of the book "Peaceful Conquerors", in which, despite the changed names, the real figures of German entrepreneurs were easily guessed. The author was hiding under a new pseudonym – "Mark Chertvan". Later it turned out that both names were used by the same person – the chemist and the writer F. Ossendowski. He became a key figure in the campaign against Kunst and Albers. Not limited to publications, F. Ossendowski resorted to outright blackmail: he demanded 25 thousand rubles from the company for ending the anti-German campaign, otherwise threatening not only to continue publishing, but also to film "Peaceful Conquerors" [2, p. 120; 7, p. 267].

Thus, during the First World War, the trade and economic rivalry between the firms Churin and Co. and Kunst and Albers acquired an ideological and informational coloring. This tactic was aimed at undermining the reputation of the Kunst and Albers trading house and its economic influence. During the years of the Civil War and foreign intervention, the Kunst and Albers trading house, despite significant difficulties caused by the revolutionary upheavals and military operations, continued its activities, albeit on a significantly reduced scale compared to the pre-war period.

The termination of the activity of the firms Kunst and Albers and Churin and Co. in Russia occurred in the late 1920s and early 1930s, which was due to the curtailment of the new economic policy and the transition to a policy of nationalization and centralization of the economy.

Conclusion

The competition between the trading houses Kunst and Albers and Churin & Co. is a vivid page in the history of the Far East.

Formed almost simultaneously in the middle of the 19th century, both firms went from small trading shops on the outskirts to diversified empires that defined the face of trade throughout the Far East. Their competition stimulated the growth of cities, contributed to the settlement and economic development of the region, and introduced the Far East to the achievements of world industry and culture. In an effort to surpass each other, these trading houses implemented advanced trading methods, from department stores and promotions to branch offices and customer loans.

The forms and methods of competition of these enterprises varied depending on the context and situation: from cooperation for profit to open hostility and the organization of subversive information companies.

The activities of these large firms directly depended on the decisions and policies of the Russian government, as well as the general economic and political situation in the region. In order to achieve favorable working conditions, they sought to enlist the support of the authorities, provide favorable conditions and receive government orders.

The activities and relations of Churin & Co. and Kunst & Albers were also influenced by the political situation. This was especially evident during the First World War, when the aggravation of the socio-political situation and the intensification of the anti-German campaign led to a transformation of the competitive environment: competition became destructive, which significantly affected the nature of business relations.

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First Peer Review

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The reviewed text "Competition between the trading houses Churin and Co. and Kunst and Albers in the Far East in the late 19th and early 20th centuries" is devoted to some features of the commercial and industrial development of the Far East after the transition of the Amur Region to the Russian Empire. The author claims to consider the main forms and methods of competition of the mentioned trading companies, their business strategies, contribution to the life of Far Eastern cities, relations with the authorities, etc.; thus, the study is presented as interdisciplinary, against the historical background of the development of the Russian Far East, economic processes are considered, on the basis of which the author tries to formulate the conflictological specifics of conducting a trading business. companies. The author relies on a significant amount of archival materials. Unfortunately, there are no references to previous studies of commercial and industrial activity in the Far East during this period; it is the economic context of the events in question that is poorly defined, i.e. we do not represent the place of the two companies in question in the regional economy, for which the author had to appeal to economic indicators, sales volumes, the number of outlets, and the dynamics of profitability of the business activities that would provide additional material for comparison and analysis. At the same time, the choice of these two companies (Churin & Co. and Kunst & Albers) seems quite logical, since such a choice provides material for comparing a typically Russian merchant company and a foreign (German) one. This comparison is quite successfully tracked in the author's work. In general, the work is devoted not so much to competition as to the consideration of the parallel development of two different companies at the same time in the same region. Again, it is impossible to determine the greater or lesser success of companies without using economic indicators. The consideration of competition essentially boils down to the statement that such competition took place: "Firms carefully observed each other, adopted successful solutions and looked for their own ways to stand out from the competitor." No specific examples are given in this regard. The author often repeats the fundamental differences between the two trading houses (Kunst and Albers relied on a strong financial base and the experience of foreign entrepreneurs, while Churin and Co., rooted in the local merchant class, quickly gained momentum and expanded its fields of activity), but the recognition of the success of both companies rather indicates the presence of a fairly capacious market. in which these two companies (and unnamed other companies) could well get along. Moreover, the author gives an example when the named companies amicably divided the state order. The only concrete example of competition is related to the discredited anti-German campaigns of 1914-1915 (i.e., in the emergency conditions of the First World War), which, again, according to the author, did not damage the position of Kunst and Albers in the region. The conclusions drawn by the author ("The forms and methods of competition of these enterprises, depending on the context and situation, were different: from cooperation for profit to open hostility and the organization of subversive information companies") are based on an extremely limited amount of factual material, i.e. on two episodes – the section of the state order in 1910 and the anti-German campaign 1914-15, and the division of the state order cannot be called competition in any way. Thus, we can say that the author has successfully considered the existence of two different models of trading houses in the Russian Far East, at the same time, there is no need to talk about a serious analysis of competition. The author omits potentially interesting aspects of the topic such as the impact of the Russian-Japanese war on the development of the region's economy or economic expansion into Manchuria (mentioned only in passing). In general, the text gives the impression of being incomplete, it ends with the demand of the journalist Ossendowski for 25 thousand rubles for the termination of the anti-German campaign, we will not find out how this particular story ended, there is also no summing up of the results at the beginning of 1917 and no indication of the fate of the companies after this date. The article is recommended for revision.

Second Peer Review

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The list of publisher reviewers can be found here.

The reviewed article is devoted to the study of competitive relations between two leading trading houses — the Russian Churin and Co. and the German Kunst and Albers — in the Russian Far East at the turn of the 19th – 20th centuries. The authors examine in detail the history of the emergence and formation of these companies, as well as the various forms and methods of their competition that have had a significant impact on the region's economy. The authors analyzed important aspects of competition, such as adaptation to local conditions, interaction with government, government support, the use of innovative business methods and the consequences of international conflicts, especially the First World War. The study covers a significant time period, starting with the founding of firms in the 1860s and ending with the change in the structure of the region's economy after the 1917 revolution. Researchers use a multifaceted approach combining comparative historical and economic analysis, source analysis, collection and analysis of specific historical data. The source base of the research is very diverse, the authors managed to update the materials of both the Russian State Historical Archive and the Russian State Historical Archive of the Far East. Using such a wide source base allows you to deeply explore the problem, making conclusions reasonable and convincing. The structure of the study is based on a chronological description of events, identification of trends and patterns in the development of trade relations, and also includes a quantitative analysis of the volume of production and turnover of companies. This comprehensive approach helps to uncover the mechanisms of competition and identify the factors influencing the successes and failures of both trading houses. The relevance of the topic is due to the fact that the research allows for a deeper understanding of the economic processes on the periphery of the Russian Empire, which often remain outside the attention of scientists. At the same time, the article draws attention to the importance of private initiatives and entrepreneurship in shaping the regional economy. In addition, the work highlights the importance of studying historical experience for understanding modern processes and provides food for thought about possible analogies and lessons from the past for the present and the future. The scientific novelty lies in a detailed analysis of the competitive relations between two major players in the markets of the Russian Far East, using a wide range of historical sources that have not previously been subjected to such in-depth study. The authors show how the local economy affects large international corporations and vice versa, focusing on the role of the state and local elites in the process of regulating competition. The study reveals new aspects of the interpenetration of private capital and government, identifies the unique business practices used by these companies, and shows their importance for the further development of the region. The structure of the article is consistent and logical. The list of references is diverse and includes both fundamental historical research and specialized publications on specific details of the functioning of these companies. The disadvantage can be considered the insufficient involvement of foreign publications, which could enrich the work with an interesting comparative context. Nevertheless, the overall picture is presented quite fully and reasonably. The authors use rare and inaccessible archival materials, which gives the research additional value and originality. The analysis combines historical research with economic analysis, allowing you to see the relationship between business development and political and economic conditions. The authors conclude that the competition between the trading houses Churin and Co. and Kunst and Albers contributed to the development of the Far East, improving the quality of life of the population and the formation of a modern trading infrastructure. This conclusion seems to be well-founded and documented. At the same time, the question remains as to how these firms really determined the vector of the region's development, since external factors such as government policy and the international situation played an equally significant role. The work is addressed to historians who study the economic aspect of the development of the Far East, as well as researchers of entrepreneurial activity during the imperial period. It will also be useful for students, postgraduates, and scientists interested in the history of economics and social dynamics in Russia's regions. The article "Competition between the trading houses Churin and Co. and Kunst and Albers in the Far East in the late 19th and early 20th centuries" deserves publication in the journal Conflictology / nota bene.