The Big Stone post. (Big Stone Gap, Va.) 1890-1892, 1891-05-08
GREAT ..UMBEE COMBINE,
The Leading, Lumber Firms eff Georgia
Unite into one Curnpany-Othrr
Notes

Correspondence to tho Chattanooga rrsd-e'aan.'
SAVANNAH. Ga. May 3.-As forcshatow
cd in my last letter the leading lumber
/ firms OF Georgia have united their inter
cS,s under flexible charter. which was
obtained at Darcn, from the Superior
/ Court.
The combination viii be known as the
South Atlantic Land and Lumber COM
pany. 1t includes the j X Clarke Com
PAM, J. j. McDonoush & Co., tho Nor-
mande Lumber Company, Hilton, Dodge
x Co., whose mills are in Georgia, an d
Mr.. George +. Drew whose interests lie
entirely in Florida
The capitol stool; Of the company IS
placed at $5,O0C,0Oo, but i; is understood
THAT the aggregate value Of the proper
ties is much greater than that amount.
The company will control twenty -ui;lc OF
the largest saw mill plants in the South,
q number Of small railroads aggrcgatinr
several hundred miles in length, timber
lands that pass up into The millions Of
acres and some sailing vessels.
The gross output of the several compa-
nics is estimated at over 100000, O00 feet
per annurn. manufactured only on orders
All o: the members Of The new COM
pany cmplaticallv dcny ;hat their or.ani-
cation can he called a trust !" They say
it is simply 4 mammoth company Each
individual firm has virtually ceased 10 cX-
is. all Of the different interests having
been blended into one For the capital,
rs represented hy plant and stock, placed
III the South Atlantic Company. each of
The firms received Il Nroportionate share
Of The stock issued bv Tie new company
it is Just the same. they claim as if
each firm had sold ont 20 some utsidc
concern and accepted stock in payment.
1t is also denied hat The South Allan
tic Company intends to cocrcc other firms
or companies. II they desire 30 enter the
Sonth Atlantic Company their plants will
be accepted at u fair valuation and stock
issued therefor as was done in the case OF
the incorDoratorS All HAT thc company
will 10. it is said, is to work for the inan-
cial benefit Of its members ia a lawful
manner. Each Of the anal gamatcd firms
will receive share Of the earnings pro-
porti0ncd TO the amount Of stock ii holds,
las, az is done in the case Of other stock
companies.
With so many conflicting interests re-
moved from the field il IS claimed cutting
of prices can lie practically done away
with and prices pu: up TO pawn" figure
and kept there. Better terms, it is be-
iicyed, can also be made with the rail
roads General expenses are also capable
Of great reduction. adding much TO the
lumber business.
This is the Soutl. Atlantic Company $
side of il. The outside firms, though, DO
not accept The statements. They look on
such powerful combination with much
disgust and some are not CD SLOW nj de-
noucing il. The stockholders don't liae the
name 'trnst, or ''combinc, but that is
the way il is being generally referred to.
| Oppcrcnis claim HAT the South Atlantic
Company is going to cndcavcr to rid the
field Of all opposition either by running
individual operators or forcing them to
come into the combination. They believe
to accomplish this prices will be forced
down below paying point for some
time.
Messrs. McDonough, Stillwcll, Mil!en
and others vigorously deny this, but with
the experience that other similar comhi-
nations have given the public there is
disposition to at least halt accept.
The new company is not likely to have
path entirely without ihorns. Express
sions of dissatisfaction come from num-
her of sources, and there is good reason
to believe that it will figure before the
! LEGISLATURE at its session this summer.
The timber men arc afraid it will compel
them to sell their timber at lower prices
than in the past. They claim that they
would he unable to organize in any way
that would protect them, and ii is from
them, in particular. that Il movement to
declare such combinations illegal VIII
come. Several weekly papers in the TIM
Der belt are already stirring up pubic
sentiment in the matter and the South
Atlantic Company may have warm tunes
Of it.
u