Mike Matthews to Russian crooks: Up Yours!
p2pnet news view Music:- Saratov, on a wide stretch of the Volga River in Russia, is home to ExpoPul, a factory with a turnover of around $600,000 a month and, “well over 800, mostly female, workers,” said Stereophile, from whence came the pic on the right.
The plant is owned Mike Matthews, “a sound-effects designer and one-time promoter of Jimi Hendrix, Chuck Berry, and others”.
But guitar buffs know him as the inventor of the Big Muff guitar fuzz box and many other classic effects pedals, says the story, going on:
“Matthews’ New Sensor Corporation, based in New York City, bought the 53-year-old ExpoPul factory in 1998. Since then, its production has increased by 300%, making it the largest producer of vacuum tubes in the world.”
And it was from Saratov, said the New York Times, that Matthews, “received a letter with an offer” –
— $400,000 for his factory which produced, and produces, Electro-Harmonix vacuum tubes described on the website as, “quite simply the absolute best”.
Sterophile continues »»»
Now for the intrigue. RBE (Russian Business Estate), a company headquartered in Samara, has begun “raiding” ExpoPul and other Saratov-based companies. Matthews thinks that RBE is affiliated with the Saratov-based billion-dollar conglomerate, SOK.
More than a year ago, RBE acquired several buildings adjacent to ExpoPul’s, including the utility company RefEnergo. Throughout 2005, RBE repeatedly threatened ExpoPul’s director, General Vladimir Chinchikov, promising big problems if the company didn’t sell. Matthews, a fighter to the core, was not about to give in.
Last November, RBE’s RefEnergo wrote ExpoPul, stating that it would cut off energy to the factory on December 31. Around the same time, The Moscow Times reported on the events, exposing the corrupt practices of a host of raiders who fraudulently took over 1400 businesses in 2005 alone.
Soon thereafter, high-level Russian officials received letters of protest from the presidents of Fender (US), Peavey (US), KORG (Japan), and Vox (UK). ExpoPul appealed to Russia’s Anti-Monopoly Commission and Arbitration Court and won strong decisions from both. Nonetheless, RefEnergo shut off ExpoPul’s electricity on March 29, 2006, boasting to Chinchikov that their efforts would succeed because they had paid off everyone and his mother.
Said the NYT item »»»
[...] a letter arrived warning that the factory would have troubles with its electricity; in March, the power went off.
Intruders then came and used jackhammers to raise dust that entered the factory’s clean rooms.
Strange young men in leather jackets loitered outside the factory gate.
Did we mention both stories date back to 2006?
Fast forward to today and, “if you’re a fan of the warm sound of tubes,” you can breath a sigh of relief,” says Matthews on the EXH site.
At stake was the, “very future of vacuum tubes, revered by musicians and audiophiles for the radiant warmth of their sound,” he says, adding:
“Our adversary, Samara Business World (SBW), wanted to use the Russian court to force us to hand over the property upon which our tube factory stands. During the trial, SBW even presented a forged letter from US Ambassador William Burns … and for the US Embassy response, see here) which characterized Electro-Harmonix’ Mike Matthews as a US spy engaged in “subversive activities.”
“Ok, granted, we enjoy some ’subversive activities’ from time to time, but certainly not of the spy-vs-spy variety. In court, the forgery proved to be an obvious fake because it was dated after Ambassador Burns had been assigned to a new post! We promptly won. But SBW just filed more lawsuits.
“Back in 1979, Electro-Harmonix was one of the few Western businesses invited to attend the very first commercial trade show in the still-Communist USSR (we blogged about that here). So we’ve seen quite a lot of, um, ‘red’ tape over the years. We know that the old culture of corruption dies hard, and we weren’t entirely optimistic. But a new round of favorable rulings from bold judges has effectively rejected SBW’s claims.”
Stereophile – Tube Supplies Under Siege, May 20, 2006
New York Times – From Russia, With Dread, May 16, 2006
EXH site – EHX to Music-Hating Thugs: Up Yours!, February 10, 2009
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