The morning call., 1893-06-11
A TRUST FORMING.
1t Will Control Coast
Tanning.
THREE MILLIONS CAPITAL.
Local Firms Chiefly Interested.
Prices for Hides Will Drop All
Along the Line.

San Francisco Is to be the center OF n
trust, or rather combination Of tanners, as
they are pleased to term themselves, that
is of more than passing interest to every
wearer of leather on the Pacific Coast.
Its capital is to be $1,000. 600, and it Is to
comprise every tanning trade on the coast.
For months the prices of leather have
been all out of proportion to those offered
by the New York market, and when about
three months ago a gigantic tanning trust
was formed in the East this disproportion
became all the more manifest and danger
Gus to the coast trade.
The Eastern trust started with a capital
of So, 100000. 1t controls every tanning
Industry of any size east of the Mississippi
River. There is not a pound OF leather
sold that its prices do not effect This
trust was got up TO 'bear" and then to
"bulP' the markets to its own advantage,
and its formation was the biggest mercan-
tile sensation of the year.
That it has been taking advantage of the
strength of its millions has been felt every
where. but perhaps no place more than on
this coast.
The general movement in the past has
been 10 bear" the marker, to make
smaller concerns, which withstood the
pressure brought to bear at its initiation.
come in. This it has done with more or
less success in the East. The effect has
been the reverse on tho coast. 1t has
caused the tanners to move for mbina-
ton for Self-protection.
The new trust or combination will be
known as the California Oak Leather AS
sociation. alt will have its headquarters in
this city.
Local firms were the first to suggest it.
and they have held several meetings
toward its formation An understanding
has been so far reached that name, capi-
tai stock and what firms will be invited to
join have been decided npon. The actual
agreement and the signing of stock will not
take place for couple of days yet. The
firms most active in the formation of the
trust are: W. B. Sumner & Co., S. Ii.
Frank q CO.. Kron Tanning Co.. Mckay
" ChlshGlm, and others whose officers are
in the neighborhOod OF Front. Davis, Bat
terry, Jackson and Clay streets.
Alfred j. Marcus of s. Ii. Frank 81 Co.
speaks OF the trust as fact for the very
near future. In an interview yesterday
lie said; We are organizing for our
own protection. We shall offer the
olive branch to tbeEastern trust and hope
to make terms with them. bu: if we can
not we shall fight. Prices here are too
high, and the Eastern trust could land
hides here cheaper than we can buy them.
lnere Will be reduction OF the buying
prices, there must be. for our prices are
clear out Of proportion with the New York
prices.
The reduction of transportation rates is
also factor we must consider against US
We export heavily. In fact, the local cou-
sumption of leather is nominal. If we
cannot buy our hides, tan them and pay
transportation at a total price that will
permit OF our meeting the eastern quota
tlOns surely we muSt lOsa -
Mr.. Marcus did not say so, yet the fear
OF combination of butchers has been
factor in the creation of the new trust.
he gives key to the situation in an arti-
Gle he wrote for the Livestock and Butch
ers' Gazette of the last issue:
Our tanners or many OF them continue buy.
ing butt branded Salted steer hides at a cent
pound more than packer bides sell for in Chi
cago. What must be the outcome when this
California sole leather has TO be sold alongside
tiust leather. Hides must come down in CALI
tornla, for any tanner who pays our last weeks
quotations for them is inviting II not III usolvency
at least most terrible loss. Butchers of course
VIII not like accepting lower prices.
but II they are reasonable men and
VIII lake the trouble to cad of The condition of
tie Eastern bide markets they will yield with
good grace TO the inevitable. 1t is useless their
offering any resistance 10 the reduction in
values. II Armour, Swift Cudahy Hammond,
Morris and others have had 10 give way cent
and one-quarter, and SIN ind their hides ac-
cumuaing, what chance have our butchers?
Neither California hides nor California leather
rule The market, 1t Is Oh the other side that
prices are made not only for themselves but for
u.s.
w. r. King of W. r. King & Co. is OF
member of the prospective trust. He does
not believe it can accomplish much, though
he admits that there is the earnest of its
formation. The tanners have been hold
ing secret meetings." he said, "but as am
not included in their councils | do not
know what they have done. The reason
do not think they can do much toward
contro ling or affecting quotations is that
II all the leather the coast produces was
dumped on the Eastern market it would
not cause half-cent fluctuation.
Its being cOrnered and withheld would
have as little effect. The only result car
see will be to lower the prices paid for
hides and cause an all-around stringency
in the market. What the new trust ca
do and Will do will be to tighten the local
markets and make the indi vidual salesmen
suffer-"
There seems to be great unity of pur-
pose among the promoters of the trust
and 1t has advanced TO that stage when
they do not fear tho publication of their
plans.
They say the scope of tie combination
WIFI be to regulate the purchases, sales.
expectations and local quotations OF
leather and hides. and to do everything
advantageous to the coast They repudi-
ate the idea that it is 'cinch game" in
any way, but instead is a movement for
the protection of coast tanners. Be that
as it way, this coast will soon have
trust, with capital enough to back it, to
prove quite a factor in the coast leather
trade.
WIFI Turn ctota,c Ex,:da~-o