The Partnership of the Nikolskaya Manufactory "Savva Morozov and Sons" was one of the most successful firms in Tsarist Russia, founded by Timofey Savvich Morozov in 1873 based on the establishments of the eponymous trading house.
Savva Vasilyevich Morozov, the founder of the famous dynasty of merchant-industrialists, completed the construction of a commodity-processing factory with manual weaving in the Moscow province on the Klyazma River in 1830, which later became the foundation of the renowned Nikolskaya Manufactory. In 1844, a wool factory consisting of four buildings was opened. Savva Vasilyevich had five sons: Elisei, Zakhar, Abram, Ivan, and Timofey. In 1850, he allocated capital to his elder sons Elisei and Zakhar, while the management was passed to the youngest, Timofey.
Savva Vasilyevich died in 1860, being a first-guild merchant, leaving his heirs a significant capital and numerous factories. In the same year, the firm was transformed into the joint-stock trading house "Savva Morozov with Sons." In 1871, after dividing the property with the heirs of Abram Savvich Morozov, Timofey Savvich renamed the family firm to the trading house "Savva Morozov and Co."
On July 20, 1873, the Charter of the Partnership of the Nikolskaya Manufactory "Savva Morozov and Sons" was approved. Among the founders were Timofey Savvich's wife Maria Fyodorovna, F. F. Panteleev, M. I. Dianov, S. P. Prokofyev, and N. P. Rogozhin.
The Partnership of the Nikolskaya Manufactory of Morozov was a constantly developing enterprise. Although the authorized capital remained unchanged for thirty years (5 million rubles), the reserve funds were constantly increasing. By 1903, the reserve capital reached 6.8 million rubles, which allowed the share capital to be increased to 15 million rubles in 1907 at the beginning of the 20th century.
With the increase in the firm's fixed assets, the working capital also grew. From 1873 to 1914, the average annual growth rate was 4.98%, and the turnover rate varied from 1 to 2.5. At the beginning of the 20th century, the Nikolskaya Manufactory led among textile enterprises in the Central Industrial Region in terms of "net profit on share capital." In 1903, the Ministry of Finance of Russia recognized it as one of the most profitable joint-stock companies.
The creditors of the enterprise were the Morozovs themselves: the children of Timofey Savvich and Maria Fyodorovna, upon reaching adulthood, received shares and became creditors of the manufactory.
The partnership did not resort to long-term loans for trading transactions; all obligations were short-term and used for current needs, such as wholesale purchases of cotton.
The net profit was distributed as follows: 20% was annually allocated to the reserve capital, 10% to the share capital. The surplus was paid to shareholders as a dividend of 10% on the principal capital. The remaining funds were allocated to charity (10%), rewards for Board members (15%), and 60% was added to the additional dividend on shares. Over 43 years, the partnership received more than 101 million rubles in net profit, of which 42.8 million rubles were distributed to shareholders.
Currently, most of the manufactory's buildings are destroyed and abandoned, some of them are rented out.
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