Iowa County democrat. [volume] (Mineral Point, Wis.) 1877-1938, 1893-06-30
DEFUNCT CORDAGE.
HISTORY OF ITS SHAMEFUL TRANS
ACTIONS IN WALL STREET,


1t Pays For Tariff Duties With Big Cam
paign Funds-Farmers Robbed and Hon
est Workingmen Ruined.
Wall streets recent experience with
he Cordage trust is, to those who have
eyes to see, a luminous example of the
evils of fostering industries with tariffs.
the Cordage trust has in few years be-
come an inveterate criminal-robbing
farmers who are using binding Irvine,
ropes, etc., squeezing the heather Chi
nee who raises hemp, jute and flax in
the Philippines, making tramps of the
workmen locked out of the mills closed
to restrict production, robbing its bene.
factors-the American people-by sell
ing cordage much cheaper to foreigners,
and wrecking the fortunes of Wall
streets innocent lambs who invested in
stocks watered almost beyond belief.
The Cordage trust was leading an al
most ifeless existence when Mckinley
In September, 1890, held out about ST.
500, 900 to it by removing the duties on
its raw materials and offered it several
millions more if it would hold together
and take full advantage of the duties,
averaging about 2 cents per pound,
which he left Oh cordage, cables, twine,
etc. The trust saw its opportunity. In
October, 1890, it secured charter, plac-
ing its capital at ST., 200, 900, about four
times the real value. In 1891 it owned
81 and controlled more of the 40
factories in the United States, besides
having full control of the II factories in
Canada. It cornered the MANILA mar
ket and toyed with prices Of both raw
materials and the finished product.
In 1891 it made profit of 81, 4O6, 313
and promised over So, 900, 900 during 1892,
besides closing over one-half of it's fac
tories. 1t paid John Goode 100000
year to hold his plant idle. It's common
stock, which sold in 1891 from 73a to 104,
reached 1873 in 1892. In December, 1892,
the trust voted to increase its capital
from 100000 to $50, O0O,OOO to make
It's stock better subject for speculation
in Wall street. The additional water
at once.
The manipulators of Cordage stock
were waiting fer bigger game before
springing their trap. The officers began
Systematically to boom Cordage. The
Waterburys and Furmans We're in the
front ranks of the Four Hundred, and
gilded tips" on Cordage were sown
broadcast. J. M. Waterbury, the presi-
dent of the trust, was and is member
of 16 of the richest social clubs in New
York and president and general Pooh
Bah of the Country club. Everybody
was quietly told of the great profits in
Cordage. Mr.. Waterbury's Wallets.
grooms and even walters caught the
Cordage fever and invested the savings
of many years in Cordage stock.
It became understood that the common
stock $50 ZOO, 0O0) would not be doubled
until it was worth $3.50 per share of $1OO.
The price, however, could not be forced
above 147, and in February the $4,000,
600 additional water was poured in, and
common stock started off at about 70.
The price was falling slowly when it
was announced that the trust proposed
to issue $2,500,00O of additional per
cent preferred stock to enable it to carry
on its business. This was the last straw
on Wall streets back. The admission of
weakness aroused the unusually dor
mant suspicious of spectators.
Soon break began. Insiders began
to unload to save themselves. In week
Cordage had collapsed, and Wall street
was on the verge of panic. Common
stock declined to II, and Wall streets
lambs were drowning in the $4,000, 900
or SIS, 100000 worth Of water which had
suddenly leaked out Of their stock.
Many of them went under. Among this
number was J. NJ. Waterbury's valet,
John Gordon, who has made himself
sick from brooding over his loss.
With free raw materials the cordage
industry needed no protection. The en-
terprising officers of the trust wished to
do some magnificent fnanciering and
desired the aid of substantial duties. AS
they were influential Republicans and
willing to pay for legislation favors
Republican congress thought it wise to
place duties from 40 to 2a cents per
pound on various kinds of cordage to
protect the poor cordage 1aborers from
their pauper competitors in Europe.
These duties were levied, and the Cord
age trust gave the Republican campaign
fund big boost in 1892.
That no protection was needed has be-
come evident to all, since the trust has
put its product on the English market
at prices far below its regular figures.
On May 4, the very day the break began,
The Iron Age said:
"The National Cordage company is
moving theoretically in the direction of
European trade, and it is even intimated
that MANILA rope has been offered abroad
at prices which would almost permit it's
being reimported from Great Britain to
greater advantage than it could be
bought in New York"
AS the duty on imported cordage aver
aged over 20 per cent in 1892, and the
cost of transportation is considerable,
this means that the manufacturers are
selling about IS per cent lower to for
eigners than to stay at home Americans.
This is an old trick, practiced by dozens
Of trusts, and well illustrates the bless
ings of protection" to those who do not
have it.
In leaving duties on articles made by
trusts we are inviting fraud, depreda-
ton and ruin. If we SOW the wind, we
must expect to reap the whirlwind.-
Holt