Evening star. [volume] (Washington, D.C.) 1854-1972, 1890-02-10
The Thread CONTROVERSY.

STATEMENT BY THE AGENTS OF J. AND p. COATS.
From the New York Evening Post: Feb 8. 1890
The editor of the Economist las taken special
pains to investigate the repeated charges made
by the free trade press that the Messrs. ]. &
P. Coats and three other well-known concerns
are banded together to Cypress and injure the
Merrick thread company and that this four
headed hydra of the thread trade was crushing
out an infant industry that had sought to raise
its head in opposition to bloated monopoly
built up and fostered into trust or combine
ton by the tarif-all this and a great many
more words to the same effect
In the first place, as the company which
claims to be oppressed is an American concern,
incorporated under the laws of Massachusetts,
with paid-in capital OF $50, 600 and operating
its mills at HolyOke, Mass. and has been in
existence now about twenty-five years. it is
difficult to see wherein this American infant of
mature years has cause to plead its youth, or
wherein the tariff has anything to do with its
troubles. But to get light ON this thread ques-
ton Edgar 5. Auchincloss of Auchncloss Bros
the agents for ]. & p. Coats, was interviewed
and expressed himself quite plainly on the
situation as follows
II suppose you refer to the article in The
Eue'ibag Posi- of last evening. Well the free
trade ECening Post is rather wide of the mark
this time.
"Messrs. J. & P. Coats put down the price of
their best slx-cord thread last March for the
best OF business reasons. Low prices for hank
thread IN Great Britain. cheaper raw cotton.
and undervalued invoices gave the English
men chance at the American market. Four
well-known foreign brands appeared to solicit
the public favor: and the American companies
that had up to that time confined themselves
to manufacturers lengths and three-cOrd goods
not remaining satisfied with their own business,
coveted that OF their neighbors, undersold the
six-cord market. Between these two fires the
standard brands of j. 4 =. Coats the Clarks
and the Willimantic were badly undersold.
Now, then, these gentlemen have got the
prices they bid for and they don't ike them
hence these tears and all this cutlery
Now, about this talk of a combination or a
trust among the leading thread men beg to
say most emphatically that each thread com
pany is directly responsible to the public for
Its own acts-and only for its own acts can
speak for Messrs. j. 4 2. Coats, and say posi-
lively they are only agreed with other thread
makers III the American market to maintain a
trade-prlce system of sales by which the Job
blng trade can secure moderate profit on
the capital invested by them in j. &. =. Coats
thread.
This profit is the bonus of u per cent paid
semi-annually to dealers using 1000 dozen of
thread When you deduct the expenses of do
ing dry goods business from this. You prob
ably know, 1t leaves a commission Of about 20
per cent net.
''Messrs. j. & p. Coats do not regulate the
price OF their thread oter it leaves the jobbers'
hands. They bind the jobber TO get IA fixed
price, but the retailer who BUYS from the
jobber can do will, the goods as he pleases
i viii also say that Messrs j. & p Coats
have never agreed with any one nor attempted
IN any way to influence the votes of their en-
ployes at any time. Their mills are operated
on business principles. and politics have moth
ing to do with their affairs. We are in no pool
to divide production or profits, or losses of any
KIND Each concern paddles Its own canoe
but they all maintain a jobbing-trade price
most Zealously, and are prepared to defend
this system of sales as the only one BY which a
mIdd!cElan can secure fair compensation for
his outlay and time.
The company championed bv the SPRING
field Republic IN has had since 1888 to defend a
suit for infringement of J. Il Z. Goats trade
mark. They copied the spool-head of MessrS
j. az L. Coats goods SO closely that suit was
commenced May, 1888 for nominal damages of
$4,000 III the United States circuit court, south
ern district New York. in equity. This case was
decided against us by Judge Wheeler last sum-
mer on the merits OF the Patent covering the
design having expired by limitation OF time.
We nave taken appeal to the Supreme Court of
the United States, where, we believe full
bench will consider our trademark rights as of
greater consequence than patent law. IL may
take several years, but. the integrity of our
trademark being attacked. We proposed TO see
the issue through to the end
Now, MIR. Editor, do you see anything in all
this more than the attempt OF one set OF manu-
facturers to get hold of the business OF other
men, by underselling them. by copying their
trademark and using every trick and device
known to the trade to secure in a few wears
what has taken Messrs. Coats and Clarks two
generations to build up? At any rate that's all
there Is III It, and 1t is really quite gratifying to
note by The Erenng Pot that these Massachu-
sets people, at the present list prices. do not
seem TO be able to sell their goods"
And remarking that he thought this was
about as Tonga length of thread" as the Econ
O""St readers could use at one sitting, Mr.
Auchincloss closed the interview.
Low EXCURSION RATES TO MARpI GRAs Can
NIvAL AT New ORLEANs.-The Piedmont Air
Line will sell excursion tickets at one fare for
the round trip to New Orleans good to return
until March l, 1890. on February 8, 10. 10, Ia.