The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-08-16
GREAT BICYCLE TRUST
INTER NATIONAL COMBINE AR
RANGED BY MANUFACTURERS.
Too Many Wheels Are Made, They
1T Production and Keep Up Prices.

NEW YORK, Aug 15.-If the statements
made by men prominent in the bicycle
trade are correct all doubts as to there
being a reorganization of the various BIZ
cycle manufacturers under one board OF
directors in a few weeks has been removed
Some of the largest makers of wheels are
now in England, where they went on bust
ness connected with the trade several weeks
ago. Word has come by cable that as
result of their visit two of the richest cycle
magnates of England are on their way here
to look over the field and report to others
after they have made an investigation.
There is little doubt that several of the
larger companies will be consolidated.
Runors of this consolidation have been in
circulation for some time but until yester-
day nothing definite was known. AT the
Board of Trade of Cycle Manufacturers, 800
Broadway, yesterday, however 1t was ad-
mitted that the consolidation was on foot,
and James Sullivan, of the Spalding Com
panv. admitted that the reports were cor
rect and that the negotiations had been I'M
der way for several weeks Everything has
gone smoothly, he said, and, unless some
thing unforeseen should occur, the CONSOLE
dation would be effected.
The men who are arranging the reorgani-
Hyan and others, are Colonel Albert Pope,
of the Pope Manufacturing Company; A.
G. Spalding, of Spalding Bros. the Ameri-
can Welded Tube Company; Edward War
wick, H. a. Lozier, of Cleveland, O., and
several others, principally Englishmen, who
are said to be Il. r. Hooley, Martin Rucker
(the latter being connected with the Hum
Der Cycle Company and Albert Moore, all
of whom have been prominent IN reorSall-
cations and consultations in England
The idea to bring about consoIda'lon
seems to have originated last fall. 1t came
about as the result of the large oVerproduc-
ton of wheels for 1886. During the year
previous the production of wheels dld not
equal the demand, and as result all the
factories worked overtime, pr r1Sia ing
mand was not only supplied but the mar
ket was glutted with wheels. Almost every
manufacturer in the country Was over
stocked. Then came the slump in the mar
ket and the subsequent cut In prices.
Wheels that were made TO sell Tor SIUU
have been sold for half that amount, ana
in MANY cases for less than 1t cost the
manufacturer to produce them The agents
auction sale recently was the result 81 TINS
oVerproduction. To prevent such Il loss in
the future the consolidation was suggested.
At the Office of Ernest Frank, secretary
of the Board of Cycle Manufacturers, it
was said yesterday that, while the board
had no official knowledge OF the consoll-
dalton, credence was given 10 the report,
as many of the members were IN no wise
pleased with the state OF trade. Whlle
the demand for bicycles was as great as
it, over had been, the market was over
stocked. Something ought to be done; it
was said, and a consolidation appeared to
be the best way out of the difficulty. 1t is
said that the idea was at first developed
by mail. The trip abroad of the manufdc-
turers followed. Colonel Pope and Mr.
Spalding sailed July %, with their lawyers
to meet the Englishmen, and word was re-
ceived from them last night that the con-
solidation would probably be effected,
Something mad to be done" said Mr.
Sullivan, "and the consolidation vas
thought to be the best way out of the diff
Guilty Consultations hive taken place in
other trades, to the adN1 ntage of both the
producers and consumers. When large
concern takes hold it produces more re-
duces the expense of production to a mini
mum, and consequently can sell for less.
IT can also make a better machine. I am
not at liberty to go into details at pres
emit.
The first company to be organized in on
don after establishing a trade and plant
here is the H. A. I4ozier, and the American
Tube Company. of Cleveland was recently
consolidated with a concern in England.
The English directors are William Pink
ington Arthur Plinkington, 7. Smedley,
Frank Mills and w. S. Taylor.