, 1889-07-31
A ST0CKMEN'S POOL.
Sketch of the Company Called the
Cattle Trust.
II is a Business Combination of
Cattlemen.
How the Trust was Formed and is
Managed.

within the past two years, says the
FTndncier, of New York. quite a mum.
Der of the leading lines of business Of this
country in order to save the heavy ex-
pense of maintaining a number of sepa-
rate organizations, aud to systematic to
the best advantage tie affairs of such con-
Germs, have associated under the style of
Trusts
Among these institutions is the Amer
lean Cattle Trust, whose head Office is at
No. 10 Wall street, New York, while Its
component companies are located in
Texas, New Mexico, Indian Territory,
Colorado and Wyoming. the best regions
in the United States for prosecuting the
cattle business in which they are largely
engaged under local management with the
supervision and control vested IN the
general officers and trustees whose
headquarters are in New York City.
In no sense is the American cattle trust a
monopoly, nor does it seek to be, for
monopoly is the sole power of buying,
selling or manufacturing a commodity
whose supply is restricted by nature: in a
product so unrestricted by nature as cat
tie and so widespread, with so many per-
sons, firms and corporations engaged In it,
there cannot be monopoly in the opera
tons of this company nor any approach to
it in possibility.
This trust was formed in 1887 and it
holds in fee and leased COO, 900 acres of
land occupied for ranches and ranges upon
which there are 1875 200 head of cattle,
with an expected branding of $4,000
more during the present year and $500
head of horses.
The average cost of these cattle is
about SIG per head, and under competent
local management, the increase is rapid,
there being a certain portion of the herds
set apart for breeding purposes, while the
balance is marketed as their condition
From present estimates some
20, 900 of these cattle will be marketed
during the present year at a net value
based on the present market values OF
beef of $2j each, which should realize
$780, 600 and enable the payment of at
least l per cent face value upon the trust
outstanding. The certificate
liability of the trust is l2S, 46l shares of
800 each. making $l2,S46, l07. While
the amount seems unduly large for a
business of this extent, 1t should be re.
membered that these certificates were
issued upon che basis of twenty-five cents
on the Sl.00 or tour for one. The net
assets OF all trust properties is about 49,
5 10000, which as near as we can ascer-
tain upon the basis of the outstanding
certificates would make the value Cf
shares about $26 each.
The present market price of %certiti-
Gates is about SIT. ard upon the payment
of a dividend of one per cent. per annum
would realize 6 per cent. per annum upon
the investment. and when we consider
that a 20 per cent. increase in cattle rails
ing is not too great in the light of past
experience after the first four years, it is
easy ~ sec llldb luCIC 10 hOb CAdRsCldtlOu
as to the remunerative results of this
enterprise; any one versed in the practi-
cal outcome Of the cattle raising business
will verify the conservative calculation
herein given, for there is no purpose to
exceed the reasonable probabilities of the
case. The burden of this undertaking Is
in the first lew years of It's operation,
after that period there is comparatively
easy sailing under good management.
The officers and trustees are men Of
recognized ability in financial circles and
we can say that the management Of Its
affairs is is conservative hands"
The American cattle trust Is heavily
interested in Wyoming, maintaining an
office in Cheyenne. From Mr.. T. B.
Adams it is learned that the figures given
above are correct.