Improvements were again due to the enterprise of Messrs. Nobel Brothers, who built the first cistern waggons for transporting oil on the railways, instead of using the old wooden barrels, which were far from satisfactory. In order, too, to open an outlet on the Black Sea, the same firm, in 1889, constructed a pipe-line from Mikhailovo to Kvirili, over the Suram mountains. Now, of course, we have the great pipe-line running from Baku to Batoum, a distance of nearly 560 miles, and which is responsible for the transport of the quantities of Russian oil exported. But the Russian petroleum industry has always existed more or less under a cloud. The old regime of Government did not attempt to foster and encourage the industry from which it received so much yearly in royalties, for it must be recollected that the Russian State was the chief gainer by the exploitation of the Baku oil lands, owing to the prevalence of the system of royalties. It seemed to be content to leave the industry to its fate, so long as it received therefrom so substantial a sum in royalties, etc. Instances are on record where operating firms pay the Government 40 per cent., or even more, of their crude oil production as royalties--payment for the privilege of taking the oil from the ground. Such conditions have been relentlessly imposed, and it is not surprising to find that, operating under this burden of expense, numerous firms find it quite out of the question to earn profits for their shareholders. Several English enterprises come into this category, but the fault is not of their seeking; it is, however, to be regretted, for once an equitable system of payments is arranged, the Russian petroleum industry will expand in a healthy manner, and become a much greater source of revenue to the State than it is at present.