Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1892-11-13
BRAKE BEAM COMBINE.
Pittsburg Manufacturers Placed at
the Head of the Concern.
OPPOSED TO PRICE CUTTING.
An Important Change at the Edgar Thorn
son Steel Works.
NEWS OF THE GREAT LABOR WORLD

The increased demand for steel brake
besms has induced q number of capitalists
interested in their manufacture to form g
company, to be known as the American
Brake Beam Company. 1t will control the
product of all the mills making this class
of goods in the United States Negotia.
tions have been on foot for some time. and
enough has already been done to insure the
success of the new concern.
There are four companies that have manu-
factured these brakes, and they have sold
out their interests to the new company.
They are: The Schoen Pressed Steel Brake
Beam Company, of Pittsburg; the Univer-
sal Brake Beam Company, of St. Louis;
the Michigan Railway Supply Company, of
Detroit, and the Northwestern Railway
Supply Company, of Chicago. 1t is gener-
ally thought that these companies hold
more or less stock in the American Brake
Beam Company, though none of the men
interested in the matter would give out any
information on the subject
Officers of the New Organization.
The following have been elected as the
temporary officers: President, H. W.
Oliver, of Pittsburg; Secretary. Mahlon S.
Frost, of Chicago; Treasurer, S. T. Davis,
of Detroit; Business Manager, W. A.
Pupgs, of Detroit. Another meeting of
the stockholders will be held at Chicago on
December s, when permanent officers will
be elected and final arrangements CON-
pleted for the companv's business. At
present the main Office will be in Chicago,
but efforts are being made to have it brought
to this city, and it is thought with good
prospects of success. The incorporated
capital is s., 500, 600. The annual business
amounts to from $1,000, 900 to 81, SOC, ,OOO
and tine demand for this class OF goods is
constantly increasing.
Il has been only about three years since
the industry was started, and it has grown
with remarkable rapidity. The output of
these four companies, which are in the power
of the American Brake Beam Company,
virtually controls the building of all freight
and passenger cars in the country, as it
holds all the patents and franchises on the
latest Improvements in railroad cars.
A member of the company, in speaking of
the proposed consolidation of interests in
the one company, said Yesterday: II want
1t distinctly understood that this is no trust
or combine in the usual acceptance of that
term.
Combined Against Price Cutting.
For some time the competition has been
so sharp in this particular line of trade that
the prices were ruinously cut. The COM
pany was simply formed to have the four
concerns interested understand each other
better and that they might act in unison.
All the patents, rights and franchises were
sold out and are now in the hands of this
company. Whether they paid the four
companies in stock or cash is another ques-
tion and will not discuss it.
''The new industry has sprung out of the
necessity for stronger brake beams on
cars. Formerly wood was used but this
breaks SO easily that steel has to be en-
ployed in the manufacture of these brakes
This is particularly so since the introduc-
tion of air brakes on both passenger and
freight cars. There is only one company
near Pittsburg that makes this class of
goods, and that is the Schoen Manutactur-
ing Company. If the proper steps are
taken, the new company could be brought
to this city, as there are advantages to be
had that can be found In no other city. The
move could not be made in less than year,
however, and as Chicago is not suited to the
business, some change will likely be made
then. The new move is bound to be a sue
cess, and the companies interested are thor
oughIy interested in it."