The Jasper weekly courier. [volume] (Jasper, Ind.) 1858-1922, 1893-06-23

Liquidation Paid for by Cam gsAign Funds.
Cause ~ Panic-seiiing Corsiage :5 Per
Cent. Cheaper To Foreigners Than to
Americans.
Wall streets recent experience with
the cordage trust h.. To those who have
eyes u see, luminous example Of the
evils Of fostering industries with tar
IFS. II is largely due To McKinlcyism
that the cordagc trust has in q few
years become an inveteratc criminal
robbing farmers who are using binding
Irvine, rope, etc; squcS ling theheathen
Chinee who raises hemp, iutc and fax
in the PHILIPPINES; making tramps Of
the worlSmen locked out of the mills
closed 10 restrict production; robbing
its benefactors-the American people
by selling cordage much cheaper to
foreigners, and wrec!,ing the fortunes
of Wall streets innocent lambs who in
vested in stocks watered almost beyond
belief
The cordage trust was leading an al
most lifcless existence when McKin-
ley. in September, 1890, held out about
1880, 900 To IL by removing the duties
on its raw materials and offered IL sew
gether and take full advantage Of the
duties averaging about cents per
pound. which he left on cordage.
cables Irvine, etc The trust saw its
opportunity. In October. 1890. il Sc
cured "A charter. placing its capital at
$4,000, 00O-about four times its real
value. In 1871 il owned thirty-four
and controlled four more of the forty
nine factories in the United States. be-
sides having full control Of the eleven
factories in Canada. 1t corncred the
manila market and toyed with
prices of both raw materials and the
finished product. In 1891 il made a
profit Of sl.406313 and promised over
81, 000,0 during 1se2. besides closing
over one-half of its factories. 1t paid
John Goode 5000. 600 year To hold his
plant idle. Its common stock. which
sold in 1891 for 1874 to 1914. reached 1873
in 1892. In 1872 the trust voted to in
crease its capital from si5. 200 900 to
s25.ooo,00o to make its stock better
subject to speculation in Wall street
The additional water was not. how
ever. poured into the pool AT once
The manipulators of cordage stock
Were waiting for bigger game before
springing their trap. The officers be-
gan Systematically to boom cordage.
The Waterburys and Furmans were in
the front ranks of 1.-THE 400 and gilded
tips on cordagc We're sown broad
cast. j. NJ. Waterbury. the president
of the trust, was. and is. n member Of
sixteen of the richest social clubs in
New York and president and general
pooh bah Of the Country club. Every
body was quietly told of the great
profits in cordage. Mr. Waterbury's
wallets. grooms and even walters caught
the cordage fever and invested the saw
ings of many years in cordage stock.
II became understood that the COM
mon stock tslo.ooo0oo) would not be
doubled until il was worth $3.50 share
of 800. The price. however. could not
be forced above IA and in February the
$4,000. 900 additional water was poured
in. and common stock started off at
about 20 The price was falling slowly
when il was announced that the trust
proposed to issue -. 800. 900 of addition
al per cent preferred stock To ena BILE
il to carry on its business. This was
the last straw ON Wall streets back.
The admission of weakness aroused the
unusually dormant suspicious of spccu-
lators. Soon break began; insiders
began to unload to save themselves:
in a week cordage had collapsed and
Wall street was on he verge Of a panic.
Common stock declined to IL and Wall
streets lambs Were drowning in the
Sl6.0oc. 900 or 81 900. 900 worth of water
which had suddenly leaked out of their
stock. Many of them went under.
Among this number was J. NJ. Water
burys valet. John Gordon. who has
made himself sick from brooding over
his loss.
With free raw materials the cordage
industry needed no protection. The
enterprising officers of the trust wished
to do some magnificent financiering and
desired the aid of substantial duties.
As they were influential republicans
and willing TO pay for legislation favors,
q republican congress thought it wise
to place duties of from 40 to !. cents
per pound on various kinds of cordage
to protect the poor cordagc laborcrs
from their paupcr competitors in Eu-
rope. These duties were levied and
the cordage trust gave the republican
campaign fund a big boost in 1872
That no protection was needed has
become evident To all since the trust
has put its product on the English mar
ket far below its home figures. On May
a-the very day the break began-the
Iron Age said:
''Thc National Cordage Co. are NOV
ing cncrgetically in the direction Of
European trade, and it Is even init
mated that manila rope has been
offered abroad at prices which would
almost permit its being reimportcd
from Great Britain to greater advantage
than il could be bought in New York"
As the duty on imported cordage
averaged over 20 per cent in 1892. and
the cost Of transportation is consider
able. this means that the Llanufact-
urers are selling about % per cent.
,owcr to foreigners than to stay-at-
home Americans. This is an old trick
,,racticcd by dozens of trusts andA well
illustrates the blessings of protection"
to those who 10 not have it,
In leaving duties on articles made bv