The Jasper weekly courier. [volume] (Jasper, Ind.) 1858-1922, 1892-04-22

10 0ro0th Vince 1857 lite Complete Ma
n"p.sv undss shs Tariff Prices sad
Pront~-
Hemp and it, substitutes. manila.
sisal grass and jute. constitute the raw
material Of two important Industries
those OF cordage and bagRing manu-
facture. The most important Of these
j. . cordagc industry. which com
prises the pro iuction OF all classes OF
snip and other cordage. rope and bind
ing twine. IL Is seldom that these
products are manufactured ia separate
establishments Nearly all the ma
terials used are imported. and the es-
tablisnm ents in the Industry are quite
widely diversified throughout the coun-
try. A scheme to com bine all these es-
Establishments into a gigantic trust
would have been considered impos ssh
BILE several years ayo. Now. however,
after the people have become accus-
toned 10 the sight OF trusts and com
bines its successful accomplishment
excites little comment
The growth Of the present cordage
trust from the so-called association
which Loosely bound the manufacture
ers together previous 10 1857. when the
present trust was formed. has been 50
gradual that kept among the interests
directly affected II has excited but lit
tie interest,".
Previous to October. 1857. the cord
age manufacturers were ia a com bina-
tion or pool. the object Of which was
| 10 fix prices But. like other loose ar
| engagements OF this kind, the mem bcrs
| were not slow 10 break the agreements
| made when they found it TO their adj
| vantage u do so. Early in 1857 this
| pool fell 70 pieces OF its own weight
| and an era Of free competition folio
| till October. when the nucleus OF the
| present cordage trust was formed
| This nucleus was composed Of the fol-
| lowing concerns Elizabethpcrt Cord
| age 90. OF New Jersey. and the Tucker
| 4 Garter coriage Co.. L. Waterbury 4
Co. and William Walls Sons all Of
brooklyn
The trust rs 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 Sc
cure the economies arising from the
purchase Of its raw material on large
scale. From this was gradually
evolved the idea Of a control Of the pro
Juction and price Of the finished prod
net This was the purpose Tor which
the contracts or leases were made with
the ten concerns in the trust Under
| these contracts the different com
ranies agreed to make secret com
petitive bids each year for tho prodnc
ton OF cordage The trust agreed Z
furnish the material and 70 award ths
contracts for the years production Y
the low bidders Besides this tn
contracts bound the companies not
engage in production on their own &C
count This unique scheme contem
plated . large increase in profits TO b
derived from economy in the purchas
Of material and from considerable de
| crease in the cost Of production, with
out any increase in the price Of tn
product to the consumer. For tim
| il worked well, but internal disse nsion
soon broke out for manufacturers VII
had bound themselves by contract
. found little profit in keeping the
| plants idle for a year ia case they wer
| net successful II securing contracts b
| Low bids
Il was these internal dissen sior
which induced the trust TO secure
| corporate charter and BY purchase (
the plants under contract to strengthc
its DO wer and increase its control owe
the product on OF cordage When u
trust secured its charter In Octobe
1890. il had contracts for the fee Of III
followin companies. in addition 70 II
four mentioned above: George
PooIev 4 sons. Buffalo; xenia Twir
ana Cordage Co. Nenia. O; ). Rinek
sons. Easton. Pa. and the Akron Twin
and Cordagc Co. Akron, O. In adslitic
10 these il controlled by contract u
following: Victoria Cordagc Co. la.
ton. XVIII. r. Lewis 4 Co. and Isaun
!. gardner Woodward q Co. Philade
! | ph;a: the New York Cordage Co Ne
York: the Atlas Cordage Co. New O
leans. and Randall, GoodaIe & ca
| Boston. Mass
Having thus successfully accof
plished its reorganization. the tru
proceeded To take steps TO acqui'
other properties In 1921 It secur'
control Of the eleven cordagc factori
IN Canada, which gave IL compile
monopoly OF the Industry there
the same time the trust secured Q
tions on several Of the outside esta
lishments in this country. and in ord
70 provide funds for the purchase
4 these itorganized the Security Corpc
! | alton o. New Jersey. 70 which u turn
over its options /. was agreed I'll
this corporation should acquire . m
iority contr j Of A. many independc'
plants as possible and then lease the
70 the trust The first move on q
Fart Of this annex TO the trust was
negotiation Of mortgage for -. 600
on the properties already acquired ~
70 be acquired The trust then arrane
lease Of these properties At an annr
rental Of s360,ooo per year. being pa
mcnt OF 9 per cent per annum on
mortgage on the properties by
terms ofthe lease the trust also agre
! 70 make n sinking fund payment
- sss5. 900 per year to be used In the p'