The San Francisco call., 1897-12-11
COLLAPSE
OF A BOX
Combine
DissensiOn Causes the Dis
ruption Of a Local
Trust.
EXISTED LESS THAN TWO DAYS.
One Of the Members Charged
With Betraying the Secret
Compact. ~.
BUYERS ESCAPE A HARD "SQUEEZE.'
An Agreement to Advance Prices
From 10 to 25 Per Cent That
Fell Through.

A com bine, ruptured within forty eight
hours after its formation, but which
threatened at the start to work great
hardship on all users of boxes, is the
cause of much merriment just now for
those whom it was intended to squeeze"
The combine was formed between four
of the largest box factories in the city and
had for its object a deal with the lumber
trust, which would enable it to con-
troll the box trade and crush all
other competitors. The four parties to
the agreement, which was entered into
Thursday, were the American Box Fac
tory, Commercial Box Factory, Hobbs,
Wall & Co. and the Union Box Fac
tory. The only large concern not a
member OF the compact was the Pacific
and San Francisco Box Factories, con-
Quoted by Myers, Carrick & Williams. 1t
was against this company that the efforts
of the combine were to be directed particu-
larry, although the smaller factories would
have been made 10 suffer and possibly
have been driven to the wall.
1t was figured out that the "big four"
could control the output, ana by a deal
with the lum ber com bine, which was en-
tered into, they would be in position to
dictate prices to patron as they saw fit.
-
advance in prices all along the line. The
heaviest purchasers, like the big Gamer
les, were to be made to stand an advance
of ten per cent, the minimum, and the
scale was to graduate upward to twenty
five per cent TO small monthly buyers.
Occasional buyers not claSsed as regular
customers, were TO be mulcted for what
ever sums they could be made to pay.
Another clause OF the agreement pro-
vided that a member should in no way
interfere With the customers of any of the
others, but any company before furnish
ing prices to a customer should consult
with the others as 10 the rates quoted for
that day, and was bound not to 60 under
those figures. 1t was at liberty to raise
them as much as 1T saw fit and the other
companies were pledged not 10 cut under
the top figures.
A Above all, strict secrecy was enjoined
upon every company in the com bne.
This was deemed absolutely essential 10
tie existence OF The trust, for if the Pacific
and the buyers once got an lnkling
that any sort OF com pact existed be-
tween the others, it would mean a counter
com bne and a cutting of prices that
would mean the destruction of the trust
ami the financial ruin of the parties
thereto.
The agreement was formally ratified
Thur day and was TO 60 into effect yester-
day. Possibly it did, but II so none of the
users of boxes were "pincned" to any
reat extent, for before the day was ended
every outside factory in town was in full
possession of the terms of the compact
and was fully prepared 10 wage war on
the 'big four" to the bitter end.
And, singulariy enough, the expose
came through row between two mem
bers of the trust The Commercial, be-
lieving hat the injunction OF secrecy had
not been adhered 10, registered big kick
against the American Company, which 1t
accused OF having betrayed the secret to
persons who had no right to be in posses
sion of the Information. This may or
may not have been the case; but at any
rate the protest of the Com mercial Com
pany was not long in reaching the out.
side world, and now the box trust,
formed Eorty-eight hours ago, is as dead
as Ramases |.