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

Jute. .... free E.
binding twine. : 10 IL
Hemp cOrdage. ............ .l2 -
Manila cordasc.. ........ ~ 10
Jute cOrdagc. ............. la III
Turrcd cordage........... ) IS
Previous to October 1887. the cordage
manufacturers were in a combination or
| pool. the object of which was t. fix
prices. In 1887 this pool fell to pieces
and the nucleus of the present COrdage
tlust was formed. This nucleus was
composed of the following concerns:
| Elizabethport Cordage Company of New
Jersey and the Tucker & Carter Cordage
company, l.. Waterbury & Company
and William Wallis Sons, all of Brook
Ign.
The trust. as thus constituted. sue
| ceeded from time to time in uniting with
| it, by means of contracts or leases, six
| other companies situated in various parts
| of the country east of Ohio. At the time
of its organization the chief object of
! the trust was to secure the economics
arising from the purchase of it's raw ma
| terial on a large scale. From this was
| gradually evolved the idea of a control
of the production and.price of the finished
product. This was the purpose for which
the contracts or leases were made with
the ten concerns in the trust. Under
these contracts the different companies
agreed to make secret competitive bids
| each year for the production Of cordaGe.
The trust agreed to furnish the material
and TO award the contracts for the years
| production to the lowest bidders. Be-
sides this the contracts bound the COM
panics not to engage in production on
their own accoun This worked well.
but internal dissensionS soon broke out,
for manufacturers who had bound them
selves by contracts found little profit iii
keeping their plants idle for Il year in
case they We're not successful III secur-
ing contracts by low bids.
1t was these internal dissensions which
induced the trust to secure a corporate
charter, and by purchase of the plants
under contract to strengthen its power
and increase its control over the pro-
duction of cordage. When the trust Sc
cured its charter in October, 1890, it had
| contracts for the fee of the following
companies, in addition to the four men
toned above: George &. Pooley d Sons,
Buffalo: Xenia Irvine and Cordage COM
pany. Xenia, o.; j. Kinks Sons. Eastor.
Pa, and the Akron Irvine and COrdage
company, Akron, o. In addition to
these it controlled by contract the fol-
lowing: Victoria Cordage company.
Dayton, KY: H. r. Lewis d Co. and
Baumgardner. Woodward d Co.. Phila-
| Iol,l;,, a., Nh, N,,l, I,,,l,., x,,,
pany. New York: the Atlas Cordage COM
pany. New Orleans, and Randall Good
ale IL Co.. Boston.
Having thus successfully accom-
plished its reorganization, the trust pro-
ceeded to take steps to acquire other
properties. In 1891 it secured control of
the eleven cordage factories in Canada,
which gave it IA complete monopoly of
the industry there. At the same time
the trust secured options on several of
the outside establishments in this coun-
try, and in order TO provide funds for
the purchase of these it organized the
Security Corporation of New Jersey, to
which it turned over its options. 1t was
agreed that this corporation should ac-
quire "a majority control of as many in
dependent plants as possible and then
lease them to the trust. The first move
on the part of this annex to the trust
was the negotiation of a mortgage for
Sc. 000, 600 OF the properties already ac-
quired and to be acquired. The trust
then arranged a lease of these properties
at an annual rental of $3.50, 900 per year,
being a payment of 9 per cent. per an
mum on the mortgage on the properties.
By the terms of the lease the trust also
agreed to make a sinking fund payment
of $225, 900 per year, to be used in pay
ment of the So, 900 900 mortgage. By
this means the trust will become ALSO
lutte owners of the properties at the end
of twenty years.
So far the plan has worked as success
fully rs coulh be expected, and the trust
has now secured control, by purchase or
lease, of the following companies in ad-
dition to those already mentioned:
The Sewall & Day Cordage company, the
Boston Cordage company and he Standard
Coriage company, all of Boston; the Day Cord
age company, Of Cambridge; william Deering
d Co., Chicago; the Field Cordage company,
Xcria, o.; the Miamisburg Binder Irvine and
Cordage company and the Middletown Irvine
and Cordage company, of Ohio; the Galveston
Rope and Irvine company, Texas; the Suffolk
Cordage company, Boston; the Peru mills, In
DIANA; the Hanover Cordage company, Penn
syiysnia; the Donnel Cordage company, Bath,
Me-: the New Bedford Cordage company, Mas
sachusetts; the Lawrence Rope works, New
York; the Peoria Cordagc company, Indiana,
and the American Bagging company, New
York. The trust has also secured control, by
purchase OF contract, of the plants OF the fol-
lowing manufacturer of machinery; w. G