The record-union., 1896-11-23
NAIL TRUST COLLAPSED.
EXPENSES OF HOLDING 1T To-
GETHER WERE TOO GREAT.
1t Leaves a Debt of $1,5OO,OOO and
Train of Litigation Be-
hind 1t.

CHICAGO, Nov. pa morning pa
per says: The great wire nail trust
which has levied tribute on the people
of the United States and Canada since
June 1, 1895, has collapsed and will en-
deavor to wind up it's affairs December
1st. Sales agents representing mills
within the pool were yesterday scram
bling to sell nails at 81 20 per keg in
Chicago, which is precisely 81 per keg
below the trusts circular price, and job
bers were selling in lots of from one to
1000 kegs from store at 81 per keg. Be
price will undoubtedly be down to 81 %
per keg, or within ten cents of the low
est price they ever sold here.
The trust has thrown up both hands,
and in a circular to the jobbers gives
them liberty to sell at any price they
please.
Troubles have multiplied on the
trusts head very rapidly during the last
eight months. In that time the stream
Of dollars which poured into it's Golfers
during the early months of it's career
had to he used to buy up at round
prices the opposition mills which sprang
up on all sides, as well as to meet a
multitude of other expenses. Not the
least of these was the maintenance of a
regular force of inspectors almost as
large as the Governments secret serv-
ice to keep all the members of the pool
footing fair" Among kindred tributes
the trust imposed tax of 81 80 per keg
on all nails sold by its members, and re-
bated TO them the difference after the
n r~ht pJi
fund of 81 10000 was returned to men,
bers on the showing made four months
ago, but since tha. time the trusts
officials and committees have incurred
liabilities amounting to more than this
in their desperate fight to keep the trust
going. These liabilities will have to be
met by the individual mills composing
the trust and long drawn out period of
litigation is highly probable
The advance of fifteen cents per kee
ordered by the trust at it's March meet
ing in this city was the last act which
marked the trusts DOOM
This put the price of nails at Pittsburg
at ~ %, which. under the peculiar
terms Of its nail card, meant that the
lowest figure at which any nails could
be bought there was So 05 per keg. This
meant So 20 in Chicago and made the
range Of commercial nails to the West
ern consumer from S4 to So.
The entire sales of nails by the trust
mills during July We're but 10000 kegs,
and in August but $4,000 kegs, though
the output agreed upon for these months
was 10000 and $4,000 kegs, respectively.
The March output reached 95G, 600 kegs.
j. H. Parks of Cos Sears building, Bos-
ton, was the originator of the pool and
was it's commissioner" To him was
delegated the task of holding the asso-
ciation together, and for this service he
collected one cent per keg on each keg
of nails sold in this country, besides a
large appropriation for Secretaries sal
aries and maintenance of inspection
bureaus. The association now has on its
hands large collection of leases of fac
tories which 1T closed up; also numerous
contracts with manufacturers of nail
making machinery, who were prevented
from selling to the trusts competitors.