Freeland tribune. (Freeland, Pa.) 1888-1921, 1892-04-14

Speclnc. equivalent
Cts. per lb. Per cent.
Manila. la..............'.'''' Free
Sisal grass. S...,..........,.. free
Jute. te...................,.... free
Binding twine..,......... lilo II
Hemp cordage. 219 q
Manila cordage.. I6 16
Jute cordage. ............. IA III
Tarred cordage... 2S
Previous to October 1887, the cordage
manufacturers were in a combination or
pool, the object of which was to fix
prices. In 1887 this pool fell to pieces
and the nucleus of the present Cordage
trust 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
lyn.
/ 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 economies
arising from the purchase of its raw ma
terial on 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
panies not to engage in production on
their own account. This worked well,
but internal dissensions soon broke out,
for manufacturers who had bound them
selves by contracts found little profit il
keeping their plants idle for a year il
case they were not successful in secur
ing contracts by low bids.
twas these internal dissensions which
induced the trust to secure 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 G. Pooley & Sons,
Buffalo; Xenia Twine and Cordage COM
pany, Xenia, o.; J. Kinks Sons, Easton,
Pa, and the Akron Twine and Cordage
company, Akron, o. In addition to
these it controlled by contract the fol-
lowing: Victoria Cordage company,
Dayton, KY; H. R. Lewis & Co. and
Baumgardner, Woodward & Co., Phila,
delphia; the New York Cordage com
pany, New York; the Atlas Cordage com
pany, New Orleans, and Randall Good
ale & 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 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 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
$6,OOO,000 on the properties already ac-
quired and to be acquired. The trust
then arranged lease of these properties
at an annual rental of $500 600 per year,
being payment of per cent. per an
mum on the mortgage on the properties.
By the terms of the lease the trust also
agreed to make sinking fund payment
OF $225, 900 per year, to be used in pay
ment of the $6,000,000 mortgage. By
this means the trust will become abso-
lutte owners of the properties at the end
of twenty years.
SO far the plan has worked as success
fully as could 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 81 Day Cordage company, the
Boston Cordage company and the Standard
Cordage company, all of Boston; the Day Cord
age company, of Cambridge; William Deering
q Co., Chicago; the Field Cordage company,
8enia, o.; the Miamisburg Binder Twine and
Cordage company and the Middletown Twine
and Cordage company, Of Ohio; the Galveston
Rope and Twine company, Texas; the Suffolk
Cordage company, Boston; the Peru mills, In
diana; the Hanover Cordage company, Penn
sylvania; the Donnel Cordage company, Bath,
Me-; the New Bedford Cordage company, Mas
s.chusetts; the Lawrence Rope works, New
York; the Peoria Cordage company, Indiana,
and the American Bagging company, New
YORK. The trust has also secured control, by
purchase or contract, of the plants of the fol-
lowing manufacturers of machinery: w. c..