The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1896-10-04
COMPLAIN OF NAIL TRUST
Chicago Merchants Ground Between it An
the Law of the Land.

( Chicago Merchants Ground Between 1t and
the Law of the Land.
Chicago. ILL.,, Oct 3-The Nail trust
offer merchants who handle its products
in Illinois the alternative of violating
the laws of the state or forfeiting all
profits. Tt then essays to control all
factories where nails are made and all
Matchmaking machinery and pa tents, so
THAT other factories cannot be eStab-
lshed.
The Wells & NoIegar company, whole
sale hardware, Chicago, received the
following message from the Wire Nail
association, in session in New York
dated Sept %:
Unless you restore your selling price
on wire nails TO associa ton rates (s2.S0)
by Friday next (2nd) your rebates will
be revoked and remain suspended until
YOU do restore prices.
JOHN H. PARKS,
Treasurer
About the same time the Wells &
Nollegar company received by man
from W. II. Hinrichsen, secretary of
the state of Illinois, copy of the laws
against trusts and combines with a
blank form attached which required the
firm to make affidavit that it was in no
the communication over the firm decided
that 1T did not see how it could lawfully
advance their prices in nails from S2.25
per keg rates when the laws OF the
state so clearly defined the penalty for
any violation of the same.
A second reading of the telegram
from the association. however, showed
that there was nothing else to do if the
firm wished to retain its profits. More
than this, III meant that in case of a re-
fuSal TO comply it was doubtful if the
firm could buy nails a. all, as the trust
was already in control of nearly all Of
the factories and was buying up the
others as fast as possible. A hardware
store without nails would occupy the
same relation to trade as a grocery
store without sugar or a dry goods store
without calico, and, viewd in any light.
the firm was placed in an uncomfortable
position.
The methods of the trust. however,
seem to show that this is precisely the
position which it contemplated for its
members at the outset. Its nails were
sold originally with a provision that
rebate of 10 cents from its card prices
would be given the wholesalers or job
hers at the end of six months. AS this
W as a lldu OtdltIS were
in the habit OF getting on nails. this pro-
vision was universally accepted. A
only one months rebates were released
a. time, this arrangement left six
months rebates in the hands OF the
trust at all times. AS all OF the large
hardware concerns sell enormous guam
titles of nails in the course of six months
this fund amounts naturally to a large
sum and is a powerful and effective club
in the hands Of the trust managers.
Another powerful weapon is the pool
tax Of $50 per keg levied on each man.
ufacturer. With this fund is maintain
ed a force OF inspectors almost equi-
valent in effectiveness to the govern
ment secret service who travel from
foctory to factory noting the number OF
men and machines az work, 10 the end
that none shall produce more nails than
ela allotted 20 il. TO examine the books
OF each manufacturer and see that no
nails are shipped except as the trust
directs and for other purposes. Trus,
Representatives have claimed recently
that all but a very few nail mills in the
country are now inside of the trust, and
that those still out are getting tract
able They claimed also that all the
important patents for nail-making ma
The association price Of nails was
curt 30 cents per keg a month ago by
Wells q Nollenger. and all the jobbing
firms Of the west followed suit. A cut OF
. cents additional was made last week
in order TO compete with confidential
prices SAID to have been made with the
connivance OF certain trust officials.
When asked as 10 the future course Of
his firm in the matter, Mr. Wells said:
: We have sufficient stock 10 run us
thirty days. After that We may have
10 retire from the nail business, Al any
rate We snail keep out OF jail. and we
yin aiso meet composition Z We can"
The law certainly very Clearly reads
as follows:
Section l. Be X enacted. etc. II any
corporation organized under the laws
of This or any other state or country.
for transacting or conducting any kind
OF business IN this state. OF any partner
ship or individual ~ oShe- association
or persons whatsoever. shall create.
either INFO. become a member % or A
parry 10 any pool. trust, agreement.
combination. confederation OF under
staining with any other corporation.
partnership, individual or any other
person or association Of persons 70 reg
ulste or fix the prsce o< any article OF |
mercAa aG-se or commodity, or shall en-