The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1893-07-14

and mining Developments OF this SORT,
the 6fse really enormous aG4Te81sson
Of capital was thAx developed By the rem
iss Of John .. Rockefeller. whom Jay
Gould oncs declared had the finest CON
structivs intsslecs Of any Dsn Of modern
ton and suggestion there was dsveloped
IN Orsanisstson representing $io0. 0o0.O0O
Of capital.
About the time that Mr.. Rocksfsllsr vas
Developing his colossal corporation mere
appearsd . new form Of financing. Henry
in Warrington and IN sssoclats Of White
Law Reid in that work. had drffted from
il in . small way into the railway ousiness
and through the influence Of some forstgn
own err in IN American railway be-
came the receiver Of road in the Mis-
souri, valley. He did his work % well -
70 beget confidence. and he did not hest
tate 20 propose 70 some capitalists TO put
into his hands great sum OF money, the
purpose OF investment Of which Was 70 b
known TO none but himself, the security
being chiefly his word Of honor. II Was
- audacious . suggestion and -
eompietsly in violation Of the con-
sentative rules Of financing - were
some OF Napoleon's plans OF bat
tie defiant Of the rules Of war.
But Willard got his money. so. 600. COO or
ST., 600 900, and there Vas great talk about
this thing. for that WAS in the day when
such . combination WAS regarded - IN
astonishing thing. 1t was called blind
pool. and with this great sum OF money
Mr.. Willard did certain things which made
him conspicuous in the world Of fnanciers.
Later, and in . smaller way. AionIo b.
Cornell, after his term - governor OF New
York had expired. organised similar
blind pool.
These combinations undoubtedly sug-
I'D 80 eh.xsA
dicAting operations which have 20
enormously developed within the past
five years. for in Great Britain they
brought into one control vast capital,
with which the purchased manufac-
turing or brewing or other commercial
interests. and consolidated them into
one corporation. thus destroying CON-
petition. These methods of financing
were taken M in the United States.
Those who made sugar brought together
more than $50, 90 90 Of capital. and il has
been said by lawyers who know that
they paid one lawyer the largest
fee ever paid. amounting to $780,
go. for perfecting this organization
for them. The example was swiftly fol-
lowed. Capital amounting to $685. 90
was secured IN few weeks and with 1t al
most all Of those manufactures which
produce white lead paint were pur-
chased Fifty million dollars Of cap
ital was secured within . few weeks
10 control the greater part Of the
of the United States. Nearly $5l. Co.,
900 vas easily procured wherewith 10 con-
troll ali those plants in which rope or cord
age Is manufactured. and in the course OF
tive years there have been financed in this
way cupstal amounting TO nearly $1,000
00J,VU0. which seeks to control various
commercial interests.
hux nf - n
business OF the United States was in the
hands of o dozen companies. Capital was
furnished from time to time by which one
and another Of these companies were pur-
chasee and then consolidated with parent
company. Jay Gould built and equipped an
entire telegraph plant and then forced
this company TO buy II OF him, an opera
ton representing several millions OF dol
lars. John .. Evans did the same thing
with another. James Gordon Bennett and
John w. Mackay raised in y few weeks
time several millions of dollars and Or
ganzed company which built
and laid a rival to the Attain
Jay Gouid's death, the telegraph COM
pany, which had for some years been
bringing into its control the various sys-
TENS by vote Of its directors, added
81, 10000 to its capital stock and is now
the representative of an even $I00. OK, 600
Oh CSpltai, ana tnoS Spieuulu uuauCi0i
achievement has attracted less attention
than didPthe purchase by this company of
. petty rival for less than s. 00o. 600.
From the time that Comm odore Wander
bilt. lifting his pen from sheet Of paper,
saw before him, with the ink still vet, q
document which had added more than
$40 600. 900 to the stock and in one
sense to the wealth Of the New
York Central system there has been
no increase until within few months.
BY a vote of tho directors this increase
has Just been made. xi2, OO, 0OO being added
to the stock. bringing that capitalization
up 10 the enormous aggregate of
500 OU0,0U. That is sum four
times a. great as William II.
Seward thought would be neces sary
TO suppress the rebellion in 1861. and it IS
twice rs great as tho sum which Secretary
Chase, coming to New York in the dark
days OF the war TO plead with the bankers
to help the government in its need for
money, asked them TO loan with no other
security than the faith of the government
To renay the ioun