Democratic Northwest. [volume] (Napoleon, Ohio) 1869-1894, 1893-06-08
DEFUNCT CoRDAGE.
HISTORY OF IT'S SHAMEFUL TRANS
ACTIONS IN WALL STREET.

Congress Bribed and the "aoo" betrayed.
1t Pays For TariE Duties With Big Cam
paign nFunds-Farmers Robbed and Hon
est workingmen Ruined.
Wall streets recent experience with
the Cordage trust is, to those who have
eyes to see. luminous example Of the
evils of fostering industries with tariffs.
1t is largely due to McKinleyism that
the Cordage trust has in few years be-
come an inveterate criminal-robbing
farmers who are using binding twine,
ropes, etc., squeezing the heathen Chi
nee who raises hemp, jute and fax in
the Philippines, making trsmps 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 hfeless existence when Mckinley
in September, 1890, held out about ST.
1000 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 on cordage, cables, twine,
etc. The trust saw its opportunity. In
October, 1890, it secured charter, plac-
ing its capital at 100000, about four
times the real value. In 1891 it owned
81 and controlled 4 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 ,406,3 1913
and promised over g., 900, 900 during 1892,
besides closing over one-half of its fac
tories. It paid John Goode 100000 a
year to hold his plant idle. Its 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 $15.OOO,O00 to $25,OOO,O 900 to make
Its stock better subject for speculation
in Wall stxset. The additional water
was not. however, poured into the poo
at once.
The manipulators of CorGage stock
were waiting for bigger game before
springing their trap. The officers began
systematically to boom Cordage. The
Waterburys and Furmans were in the
front ranks of the Four Hundred, ani
gilded "tips" on Cordage were sowr
broadcast. j. M. Waterbury, the presi
dent of the trust, was and is a member
of 16 of the richest social clubs in New
York and president and general Pool
Bah of the Country club. Everybody
was quietly told Of the great profits ii
Cordage. Mr.. Waterbury's Wallets
grooms and even walters caught tn,
Cordage fever and invested the saving
of many years in Cordage stock.
It became understood that the common
stock ($10, 900, ,000 would not be double,
until it was worth $3.50 per share of 800
The price, however, could not be force,
above lat, and in February the 10000,
600 additional water was poured in, ant
common stock started off at about 70
The price was falling slowly when i
was announced that the trust propose,
to issue $2,5O0,O0O of additional 8 pc
cent preferred stock to enable it to carr,
on its business. This was the last stray
on Wall streets back. The admission 0
weakness aroused the unusually dor
mant suspicious of speculators.
Soon break began. Insiders begal
to unload to save themselves. Ina wee
Cordage had collapsed, and Wall stree
was on the verge of panic. Commo
stock declined to II, and Wall street
lambs were drowning in the SIG, 900, 90
or $4,000, 900 worth Of water which ha
suddenly leaked out Of their stocl
Many of them went under. Among thi
number was j. M. Waterbury's vale
John Gordon, who has made himsel
sick from brooding over his loss.
With free raw materials the cordag
industry needed no protection. The er
terprising officers of the trust wished t
do some magnificent financiering an
desired the aid of substantial duties. A
they were influential Republicans an
willing to pay for legislation favors
Republican congress thought it wise
place duties from 7-10 to 2t cents pc
pound on various kinds Of cordage I
protect the poor cordage laborers fror
their pauper competitors in Europ,
These duties were levied, and the Core
age trust gave the Republican campaig
fund big boost in 1892.
That no protection was needed has b,
come evident to all, since the trust hs
put its product on the English markt
at prices far below its regular figure
On May d, the very day the break began
The Iron Age said:
"The National Cordage company
moving energetically in the direction (
European trade, and it is even intimate
that MANILA rope has been offered abroa
at prices which would almost permit i
being reimported from Great Britain
greater advantage than 1t could
bought in New York"
AS the duty on imported cordage ave
aged over 20 per cent in 1892, and Il
cost of transportation is considerabl
this means that the manufacturers al
selling about 25 per cent lower to 70
eigners than to stay at home American
This is an old trick, practiced by dozer
Of trusts, and well illustrates the bles
ings Of protection" to those who do nj
have it.
In leaving duties on articles made t
trusts we are inviting fraud, depred
tion and ruin. If we SOW the wind, "
must expect to reap the whirlwind.-
Byron w. Holt.
England Never sleeps.