The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1889-10-25
DETAILS OF 4 BIG DEAL.
How English Capitalists Got Control Of the
indianapolis Cabinet Company.

Although it has been a geneaal rumor
throughout the city for some months. it was
not actually known that the Indianapolis
Cabinet Company's factory is owned and
operated by English capitalists. While
DR.. Louis G. Cline. of Park avenue. was IN
London some weeks ago he there met the
secretary Of an English syndicate who
seemed to be not only well
versed in American affairs, but especially
SO in those concerning the interests
of this city. A little inquiry led TO an ex-
PLANTATION of the matter and through it,
coming. as it does. officially from the syn
dieate itself, all of the facts concerning the
sale OF the factory were ascertained.
The Indianapolis Cabinet Company has
here the largest desk-producing factory in
the world, and it was this fact, together
that frst attracted the attention of
the London capitalists. The c%ompany''s
annual output of desks alone is
nearly, 1900. while les annual pay
i 10 ths shows an expenditure OF sl5o,ooO
OF the annual production goes to the ex-
port trade. For tho first few years after
It's establishment. N 1870, the profits were
used In adding to the plant, but in later
ing. In 1886 the net profits, it is said, were
S2.II3.S6; in 1887, 81 $50. 09, and in 1888, S42,-
U1.S1. These figures indicate an increase
OF over 65 per cent in the profits of 1887 and
1888. and over 300 per cent. increase in 1888
as compared with the average made in 1884
and 1856. The estimated profits this year
are $3.50. capable, it is claimed, of be-
ing increased to $59.270, if the years sup
plies be purchased for cash instead of upon
credit. Added to this is an estimated profit
OF $4,000 upon the veneering department.
making a total estimated annual profit of
SS9.27O.
The syndicate, headed by Sir James
Marshall. William Marian, N. G..
ssnor and Franei ssn1 Vaushanswiri s1ns
all of London, based their cal
culatlons solely upon the prospects
OF the factory: Taking the results of 1888
as a basis. it was claimed by them that
AFTER providing for the six-per-cent. inter
est on debentures and the dividend on the
amount proposed to be called up on the
preference shares, a surplus would remain
or over 10 per cent. per year on the amount
shares of the company. Assuming. on this
calculation, that the increased profits
would reach the figures above quoted
over 40 per cent. would be available
Tor their ordinary shares. Thus, it was
arGued, the interest on the debentures and
the dividend on preference shares would be
amply secured by the profits that have been
and are now being made.
AS an i~nitiat0ry step the syndicate sent a
representative to this city to make invcsti-
CATIONS, and his report seems TO have been
very satisfactory. Having inspected the
factory" he wrote back, Il an of the
opinion that the statements contained in
the prospectus you have issued as to the
the business may be thoroughly relied
upon, and j think most highly of the IN
d~ertaking. / consider the plants most val
liable. The buildings, plant and machin-
cry are very extensive and in = state of
Not satisfied with this, the auditors of
the syndicate examined the accounts of
the company, and the services of Addison
Z. Harris, of this city. were Sc
The final arrangements for the sale of the
FACTORY were made on june 5 last, which
date the certificate of sale bears. 1t was
contaminated between Charles +. Coffin,
f Hrn,s the local company. and Francis
cate. The entire plant. consisting
of four and three-fourths acres of
land, together with the buildings and
machinery. brought S412, $50, of which S194,-
S2lS,250 in fully paid-up ordinary shares,
cash. debentures or preference shares, as
the syndicate shOuld see fit. The directors
OF the latter at once issued bonds. some of
which sold for3 per cent. above par.
Under It's new management the frm is
now known as the Indianapolis Cabinet
Company. Limited, and according
to its articles of association
it Is in the future to be
operated by a board of directors located in
aregistered office in London. The capital
stock of the new company is $500. 900, di-
vided into 10000 8 per cent. cumulative
preference shares, 10000 ordinary shares of
Se5 each, and $4,000 in 6 per cent. debent-
ures of $500 each.
1t was stated to a reporter, last night,
that the Moore Desk Company, of this city,
had also disposed of its plant to the syndi-
cate, but the report could not be verified.