Wichita eagle., 1889-06-06
TIE SALT COMBINE.
Particulars Of the Agreement Between
English and American Interests.

NEW YORK, June 5.-Charles Burger
and Wellington r. Burt, the representa-
tives of American salt interests, who ar
rived on the Umbria on Sunday, brought
with them the agreement entered into
with the English Salt union, whereby the
salt producing Interests of the two coun =
tries are practically unified. Mr.. Burt IS
president of the Michigan Salt association,
which comprises $50 different salt estab-
lishments in the Saginaw valley, and one
half of the total output of the United
States. He was the Democratic candidate
for governor of Michigan at the last cleo
ton, and will probably be the president of
the contemplated international union OF
salt men, The scheme is to consolidate
the interests of the salt owners of Eng
land and the United States, and to restrict
the output until it becomes profitable.
One of those largely interested says:
1.-THE English Salt union now owns out
right all the salt producers OF the United
Kingdom, capitalized at $40, 900, 600 1t was
floated last November, and the amount OF
applications for shares was over 500, 000,-
Coz. These $40, 600. 900 of stock are divided
among 5. 900 shareholders, all anxious to
have more stock. The shares of the Amer
lean company will be offered on the other
side The combination will also make the
investments in the English company more
safe, as it will limit the output and specify
the markets for the salt of various iocali-
ties. The new organization in the United
States in nowise resembles trust. Prop
critics for sale will be bought outright by a
company known as the North American
Salt company. properly incorporated under
the New York laws. The capitalization
will be about S10,000,000 and 5 percent
will ha
One-third of this $4,000, 600 has already
been subscribed fer by owners of salt
properties. This is not condition but
a right, and is of exceeding value, II the
experience of the eastern salt men is TO be
taken as an example, because that stock
Immediately commanded premium.
Ten-pound shares Immediately went up to
$40, and remained permanently at Els.
The result of such an operation here
would be to make seven and half million
for the owners of the stock. Hitherto,
trusts and organizations Of this character
have been elastic in extent, and could be
increased or diminished by the addition or
withdrawal of properties: but with the
capitalization of the company defined and
unalterably fixed by law, properties not
included at the start cannot be taken in.
That means that the salt companies that
remain out will be crushed. The promoters
have already control of fOur-titths Of all
the properties Should this be successful
scheme it will make about 500, GOO, 900 that
have been invested by Englishmen in
United States industries within the past
year. The company proposes to limit the
output of each locality to its natural
market, and thus to restrict the cost of
TRANSPORTATION. The total annual con-
sumption of salt in the United States and
Canada is 13,000,0 900 barrels. OF this
amount 5000. 900 barrels are imported.
leaving 10,000, geo of American manufac =
ture 1t is believed the combination will
save at least 15c to 20c on every barrel,
which should show profit of 10 to Is per
cent on the capitalization.