The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1886-10-08
PLANTERS OILNILL.
ITS SALE TO THE AMERICAN
COTTON OIL TRUST
Explained by Mr.. Boyd - Not a
Scoop, but Legitimate Trade.

1
Trust, an APPEAL reporter Yesterday
called on Mr.. Aston Boyd, and, after
stating his mission, requ sted an in
terview, which was readily granted.
The following is an accurate account
of what was said:
Mr.. Boyd, the business public
have manifested considerable inter-
est in the announcement made in
todays APPEAL that the Planters
mill had bsen scooped by the Ameri-
can Cotton Oil Company, and if you
have no objections We would be glad to
know something more definite as to
the trade.
Well, / am not inclined to parade
my private business affairs In the
public prints, or those OF the COM
papy represent, but there is no occa-
sion for any oonceslmept, and If it is
, q matter OF any interest | have no oh
j ctions to spying that the Planters
mill is now, and, indeed, has been for
some time, one OF the plants in the
American Cotton Oil TrUs;.
Will you give me the particulars
of the sale?
This being wholly a matter OF pri-
vale iutrr>s', and one affecting all
the sha eholdels whom l repre-.
sent, l hardly feel at liberty TO do
this; but | may say that the trsnsac-
ton wes egoverne1 only by ordinary
business princip e., and while your re-
porter has called iG a SCOOP" it YVES
nothing more than transfer of prop
erty on terms entirely satisfactory to
all parties concerned.
But was net your mill to be in
fact as in name plantation mil, I"
aud opera ed in the interest of seed
sellers as oppose to oilmill combina-
tions2
There may have been some such
idea as tits, and the theory is a
good one; but my experience in
this direction has proven very clearly
that practically it cannot be carried
out in the management OF manu-
facturing and businets enterprise.
Is not the cotton SEED oil business
one OF large profit?
The best answer to this is a SIM
Pile reference to the quot tions for
local stocks 10 your own CONNER
cial Columns, where you will find all
oilmill stocks much below par, and in
fact come of them almost without
value, IS is further shown by the fact
that for some time past no bank in
Memphis has been willing to accept
any oilmil stock as collateral. The
very able review of the years business
in Memphis in your first of Sept amber
issue, too, gives the facts and figures
in this matter, aud shows that while
the largest manufacturing interest of
the city, it has been carried on for
several years at an actual less to many
mills and with only sma profits to a
few, and these secured only by rigid
econt my in manag ment or local ad-
vantsges of situation.
What was the origin of this trust,
as you call it, Mr.. Boyd?
The American Cotton Oil Trust
is simply the natural outgrowth
and business like result Of a ruin.
GUS competition and over produc-
ton in the cotton reed interes'-an
effort to control the one and check the
her. The cotton seed oil business
some ten years ago, when there were
less than dozsn mills in the country,
was oreC large profits. When the
indus rial revival came in the South
This fact YVES taken advantage of by
the manufacturers of oilmill machin-
cry, to induce the building of new
mills everywhere, until scarcely rail-
road crossing in the South is without
its oilmill. Many Of them, in fact
the msjority of them, in the hands of
STOCK companies under inefficient
management. The result of this has
been that ruinous competition has
arisen in the purchase of 8; ed, while
on the other hand the product mar
Rtt' have been overcrowded and
pric forced down to point far below
the cost to manufacture. This, OF
urse, brought losses every year to
the mills, until, with bankruptcy 8 az
ing them in the face, some heroic rem
edy was demanded to prevent the ell
tire wreck Of the millions of dollars
invested in this property all over the
South. This remedy, l Think, has
been found in the CO operation of
many mills under the better manage
ment and with the improved facilities
in manufacture and disposal of pro-
ducts which is comprehended in the
American Trutt.
But will not this result in the
creation Of a monopoly that will
bring loss 10 The planting in crest
of the Sluth by forcing down the
prices pa d for ses d.
l am glad you mention this, be-
cause while l know this is the popu-
lar idea, l am fully satisfied that no
such results will follow. Indeed, I
speak "by the book" in saying that no
one more than The management of the
trust appreciates that such a policy
would be simply suicide. On the Goa
trary, see in this nothing like tbs
dancer which has threatened the
planting interest in the seed buying
D ,o's which have always prevailed.
For these have had all the evi OF
monopolies in thsir power to fix the
price OF seed, with none OF The advan-
Iage, which cooperation in the dis
p al OF products would secure. In.
deed, even in times "seedware," when
prices have been highest, seed dealers
end seed sgents have been the parties
benefited and not the planters and
producers, who generally have re-
ceived about the fame price as whtn
the competition was less shslp.
In fact, the broad business p inciples
which must govern an enterprise Of |
this magnitude is au assurance that
the trust must lcok fer IFS profits to
the advantages which it has of ample
capital, improved machinery, ad
vanced management and a larger Fl Id
for the dispose OF products in hitherto
unopened markets, which could not
be reached by il dividual enterprise.
And through these advantages, and
from the fact that in the immense
volume OF the business done they can
accept smaller pro ra a OF profit, /
am assured hat they will be able to
maintain better price for reed than
any single mill can afford TO pay. And
this principle will, believe, underlie
their transactions with the people,
I IL L l. 4. 1 :