The weekly tribune. [volume] (Great Falls, Mont.) 1891-1894, 1892-04-23

SbTltgt ...s.ll.iV Il.)l I.ID If.Dt lfstb IVA
Manila E. 1863 SD 9.oi 1900 or 7.S5
Differences. .4J9 a.a7 FL I.5, 4.76 2.W
These figures would be misleading
without explanation. The high prices
Of the raw materials prevailing in 1889
were i'll part due to the shortage of the
crop, but chiefly to the manipulation of
the market by IL combination of the
Cordage trust and English brokers. In
the fall of 1888 this combination began
to corner the product with such COM
plete success that during a large part of
1889 they controlled nearly all the stock.
The prices prevailing in 1889 were those
at which the trust was willing to sell
and not the prices which it paid for
the raw material. By this corner of the
material the trust was able to keep up
the price of cordage to the high aver
ages shown for 1889 and 1890 until it
had succeeded in working off the whole
stock on hand. The difference between
the price of the finished product and of
the raw material for 1890, as shown
above. was about the actual average
difference in 1889 also. This shows that
the trust succeeded in making enormous
profits entirely at the expense Of the on
sumers.
The reduction Of the price of the cord
age in 1891 was made for a purpose.
During the whole year the trust was
negotiating Tor the control Of the indie
pendent establishments anl It's success
depended upon its ability to force these
outsiders to terms. For had the trust
kept prices up the outside establishments
would have refused to join the trust. or
would have held out for more favorable
terms than they would have been will
ing 10 accept under other circumstances.
BY October, 1891, the trust had so far
succeeded i'll securing control of the
competing mills that it was able to adj
vance prices again. As IA result the
price of cordage has been raised from
81 cents per pound to the present price
Of IL cents per pound. And this adj
vance has been made directly in the face
Of Il declining market for the material.
The present price of the manila for
shipment is 81 and Z cents per pound.
The difference between this price and
that of the finished product is therefore
ABS cents per pound. The promise made
by the trust that the increased profits
which it hoped TO secure from organiza-
ton would not be at the expense of the
consumer has been completely forgot
ten.
In spite of the fact that the Cordage
trust engaged i'll open war during the
whole of last year with the independent
manufactures for the purpose OF fore
ing them into the trust, it was able to
make very large profits. During the fiscal
year ending Oct. 81. 1891, The trust made
IL profit Of 81 ,IOG, BIB, which enabled it
to declare dividends of s per cent. OF the
pref. rred and 8 per cent. on the COM
mon stock, and at the am time left Il
balance of sl0G, 1913.
As Il result of the higher prices since
October the financial director of the
trust felt justified in making the follow
ing report FOR the quarter ending Jan.
81 last: 1T is very difficult at this time
To give an accurate estimate of the profits
of the business for the quarter ending
Jan. 81. | feel safe in stating, however,
that after deducting expenses, rentals
and al fixed charges, these profits will
be found sufficient to pay the entire an
nual dividend of 500, 900 on the pre-
ferrel stock and a quarterly dividend of
$3.50. 900 Oh the common stock, besides
leaving a large surplus" Should this
rate of earnings he continued through
out the year the trust will be able to
pay the dividend of y per cent. on the
preferred stock, ~ per cent. on the COM
mon stock and have 81 zoo, 900 besides to
be added to the large surplus earned
during the past quarter, which latter
will be increased 300 per cent. =