The western sentinel. [volume] (Winston-Salem, N.C.) 1887-1926, 1892-04-07
THE UMBRELLA TRUST.
Manufacturers Joining TO Advance
Their Profits.

4 Man ia cturers Joining 10 advance
Their Profits.
From the Philadelphia Times)
/ The threatened combination of UNI
brella and parsol manufacturers in
Boston, New York and Philadelphia
the trade centres for such goods, has
brought to light in this city
curious story, in " hich trade jealousy
and sharp com petition play an impor-
tant part.
A number of representatives houses
in the umbrella trade were visited yes
terday by a reporter in search of facts
regarding the proposed combine, and
while some professed entere ignorance
of the matter, enough was gathered
from those willing to talk to make the
following connected story from those
in the trade:
Within short time a number OF
New York and Philadelphia manufac-
turers met in an attempt to form a
trust or combination for the purpose
of advancing profits.
Those manufacturers attending the
meeting knew it would be an impossi-
bility to control the silk merchants in
New York from whom SUPPLIES are OBJ
tanned because the manufactures of
| Europe are so numerous that did this
syndicate capture the agents represent
ing all the present accounts, there were
dozens more, French, German, Swiss
and Italian, who would at once seek
recognition here, and have no trouble
in secureing agents not included in the
| deal.
The stick makes it would also be inn
possible to control, as they are quite
numerous and because it would but in.
vite the formation of new firms which
would want to be taken in or have
their entire production bought by the
combine,
AS but little capital comparatively
is required to start such an industry
they were not considered.
About the most vulnerable point of
attack seemed to be the manufacturers
of umbrella frames, Of whom there are
but four in America, three in Phila>
delphia and one in New York
At recent meeting in New York a
number of houses were excluded, some
because they were considered too small
to be of moment others of larger size be-
cause of the jealousy of represented
houses, from whom they had sprung
into existence Aside from the ques-
ton whether all of the frame makers
| would lend themselves to such scheme
there are said to be insurmountable
obstacles to the formation of such a
trust. What would be done with the
plants of the majority of those i'll the
scheme and whose places they would
not require was a question. Every
manufacturer of umbrellas has an ac-
emulation of stock, both in materials
and made up goode, which is really
worth far less than even the low figures
at which the stock was valued in their
last balance sheets. Who would fix the
value at which the plant must be paid
for in stock of the combine?
Any figure acceptable to the aver
rage committeeman would be quickly
rejected BY the person whose plant wa
being considered, while any figure
uamed by the owner OF the plant would
be as quickly rejected by the commit
tee appointed to appraise such plant.
"There is but little question that the
umbrella trade today is far from being
in "a healthy codition," said a man
greatly interested in the matter Sharp
competition, together with produc>
ton much beyond the demand, has
brought prices to minimum.
The average jobber of New York or
the West can buy bis stock at the cost
to produce and at certain seasons of
the year at less to the maker
This is an ack nowledged fact in the
trade, and the figures set on their goods
by-some of the largest houses at GER
tain seasons have fourced the manu-.
features of materials to gradually re
duce their prices until they are really
no better off than the umbrella makers.
mo branch of the trade has suffer-
ed so much as the manufacturers of
umbrella frames, whose discount today
are 80 heavy that it seems doubtful if
a clear five per cent can be made in
their production, and it is through the
necessities of there frame makers to
make living profit or to quit bust,
ness that the engineers of this scheme
uOpO " OChChSs AC ndu QldcbuT6TS
of what is technically known as furni-
ture are not even SO well off, as their
branch has hardly paid cost for some
time.
mo such combination would be nec-
essary did all the umbrella manufac-
turers observe the pinciple of live and
let live but each house of several has
tried to do the entire business of the
United States and this is the result
1t was futher stated that the origina>
tor of the scheme was New York
man named Fox, who was to receive
five per cent, on the capitalization of.
anywhere from six to twelve millions
for engineering the scheme, and that
the smaller houses, of which there are
several in this city were te be left out
and not even consulted. They were
simply to be smashed out of existence
This in spite of the fact that foreign
frames can be imported at figure low
enough to allow of sharp competition
on the part of those not within the
trust.