Evening journal., 1897-09-27
NOW A MALT TRUST.
Org Al izatlon of Gigantic Combine
49, to Control Prices.
WILL STOP COMPETITIVE BUYING.
The object of the Masters Is to Compel
Reduction In the Price of Bar
ley and Thus Increase
Their Profits.

NEW YORK. Sept. 27.-The organ
ization Of the Malt trust which had
been in progress since early in August,
Is now practically completed. Dur
ing the last week a score or more of
representatives Of the largest mailing
houses in the west have been in con-
sultation in this city with heads OF
eastern concerns and Wall street men.
who have had charge of the financial
end of the combination. Meetings
have been held in the Hotel Manhattan
and in the Offices OF the brokers down
town.
Seymour Scott. the president Of the
Scott Mailing company. Of Lyons. N.
y, who is now at the Manhattan. is
the chief promoter OF the deal, and Mr..
Elverton r. Chapman of the firm of
Moore & Schley. who was imprisoned
IN the Washington Jail for refusing TO
answer questions relating to the alleg
ed dealings Of United States senators
In Sugar trust stock. has had charge
of the financial arrangements.
All that Mr.. Chapman would say
about the new company wssethat fun
Information would be made public next
Wednesday. but from other sources it
was learned that the malsters who held
out at first had been induced TO join
and that the combination takes in
practically all Of the mailing houses in
this country and will represent an an
nual product of 25,O0OOOO bushels Of
malt on which there is a profit Of over
81. 100000.
The trust proposes to increase the
profit by centralizlng the manufacture
and by stopping the present competitive
buying of barley Instead of operating
all Of the small mailing houses through
out the country It is proposed TO make
all the malt in the cities of Chicago,
Milwaukee, st. Louis, Philadelphia and
New York.
The malsters expect to compel a re-
duction in the price Of. barley because
instead of the sharp bidding for the
better grades that now keeps the price
up the trust viii be practically the only
bidder and the farmer will be obliged
to accept a lower price. The malsters
also expect to economize in manage
ment and in other ways, so that the
profits will be increased to a considera-
BILE extent.
The name selected for the trust is the
American Mailing company. It's capi-
tai will be $50, 900 900, divided into S15,-
100000 preferred and an equal amount
of common stock. Seven per cent in
terest viii be guaranteed on the pre-
ferred stock.
It is said that ]. Pierpont Morgan &
Co. are interested as guarantors Of the
bonds pending the completion of the
organization. The Cunard Steamship
company is mentioned as a heavy sub
scriber to the stock.
The hackers OF the Glucose trust
which was formed last spring, are sup
posed to be behind the formation of tn
combination of malsters, as both glu
cose and malt are used in beer making
Large amounts of stock. It is expect
ed, will be taken by the brewers. and &
the Malt trust proves to be a success.
the often talked of Beer trust may bl
organized.
The three Milwaukee mailing con
Germs have been most active in push
ing the organization of the trust TO ;
completion. They appointed Mr.. Her
man Nunnemacher as their representa-
tive. and he succeeded in interesting
eight Chicago maltsters. All the Nil
waukee and Chicago concerns hav
signed the agreement TO join the trust
| Among the others that have Joined ar
three mailing houses I'm Wisconsin, on
I I'm Pittsburg, one in Erie, Pa; one II
Buffalo. one in Syracuse, one in Ham
ilton, o., and one in Lyons. n. Y.