Freeland tribune. (Freeland, Pa.) 1888-1921, 1893-06-15
DEFUNCT CORDAGE.
HISTORY OF ITS SHAMEFUL TRANS
ACTIONS IN WALL STREET.

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, a 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 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.
100000 to 1t by removing the duties on
its raw materials and offered 1t 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, 1t secured charter, plac-
ing its capital at $15, 900, 900, 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. 1t cornered the MANILA mar
ket and toyed with prices of both raw
materials and the finished product.
In 1891 it made profit of 81 ,406,813
and promised over So, ,000, 900 during 1899,
besides closing over one-half of its fac
tories. 1t paid John Goode 100000 o
year to hold his plant idle. Its common
stock, which sold in 1891 from 1872 to 1O4,
reached 1873 in 1899. In December, 1892,
the trust voted to increase its capital
from $15 100000 to $25, 100000 to make
its stock better subject for speculation
in Wall street. The additional water
was not, however, poured into the pool
at once.
The manipulators of Cordage 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, and
gilded tips" on Cordage were sown
broadcast. J. M. Waterbury, the presi-
dent of the trust, was and is member
of 10 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, 900, ,OOO would not be doubled
until it was worth $3.50 per share of 800.
The price, however, could not be forced
above 147, and in February the 10,OOO,-
600 additional water was poured in, and
common stock started off at about 10.
The price was falling slowly when it
was announced that the trust proposed
to issue $2,500,000 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 speculators.
Soon break began. Insiders began
to unload to save themselves. In week
Cordage had collapsed, and Wall street
was on the verge of q panic. Common
stock declined to II, and Wall streets
lambs were drowning in the $18,000,0 900
or SIS, 200, 900 worth of water which had
suddenly leaked out of their stock.
Many of them went under. Among this
number was J. M. 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 financiering and
desired the aid of substantial duties. AS
they were influential Republicans and
willing to pay for legislation favors
congress thought it wise to
place duties from ITO to 81 cents per
pound ON various kinds of cordage to
protect the poor cordage laborers from
their pauper competitors in Europe.
These duties were levied, and the Cord
age trust gave the Republican campaign
fund big boost in 1899.
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 energetically in the direction of
European trade, and it is even intimated
that MANILA rope has been offered abroad
at prices which would almost permit its
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 1899, and the
cost of transportation is considerable,
this means that the manufacturers are
selling about 25 per cent lower to for
eigners than to stay at home Americans.
This is an old trick, practiced by dozens