The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1897-04-16

The great Pacific coast lumber trust.
known as the Central Lumber Company.
which gave up the ghost several months
ago. is having a difficult time in settling
UP its affairs. While the meeting ar which
II was decided % go out OF business was
held in San Francisco the information
reached this city and was placed upon the
Associated Press wires before the Caiifor-
MA dealers were aware that the Central
Lumber Company was defunct. The break
came because the combine could not con-
troll it's lightweight members the smaller
mills being compelled to cut prices in spite
Of the agreement or go 10 the wall.
The San Francisco Examiner devotes
considerable space 10 the present diff
cuities attendant upon a hnal winding up
Of the affairs Of what was intended 10 be
the greatest monopoly ever started in the
West
The associated capital OF the companies
represented in the Central Lumber Com
pany amounted TO $15,0o0 90. It was be-
lieved that practical monopoly OF the
trade had been secured, anc for many
months the trust transacted tremen-
dous volume OF business. Then the small
CT firms that had been frozen out began TO
cut in. Little by little they worked their
way into the San Francisco market and
received the patronage Of certain retail
dealers.
crumble under the attack. The firms in
the combination became dissatisfied and
grumbling was heard all along the line.
The disafcction was so serious that the
inevitable outcome vas a destruction of
the trust. Several meetings of the board
of managers were held and il was finally
decided TO disband on January /, 1897. IL
was agreed, however TO honor all con-
tracts under existing conditions until that
time. All firms in the combination had
been selling through the offices of the
trust and under the conditions established
by the board Of managers. il thus hap
pened that the Central Lumber Company
transacted vast amount of business
during the last two months of its exist
ence.
In November an account current, show
ing the affairs of the company in detail,
was issued and d dividend was declared.
Many OF the firms IN the trust, guiding
themselves by the published statement OF
affairs sent their certified checks to the
secretary of the Central Lumber Com
pany in payment of their Indebtedness.
If every company had done this there
Mould have been no trouble, and the
great trust would have passed out OF eX-
istence without a struggle.
Several of the most influential firms in
the combination refused, however, to pay
a dollar OF their Indebtedness. They gave
managers were looking for money. not
excuses for it's non-payment. The officials
| OF the great trust were placed in a very
| disagreeable preiicament. They had cal
| culated upon receiving thousands of dol
| lars honestly due TO the company Act
/ ing upon an assurance that this money
would be paid. a certain dividend had
been declared. Then came the refusal to
| pay.
The nnanagars urera I'm a dilemma Tbex.
| deltberated long and earnestly. and finally
| decided to rescind the dividend and TO Is
| sue new account current, showing re
| duced assets. When this decision was
| published there was howl OF indignation
from those members Of the trust that had
| paid their indebtedness in fun. II one
| company was to be excused from pay
| ment they claimed. all should be. The
| board OF managers was enjoined from
| using dollar that had been paid in. The
/ situation was serious in the extreme and
/ II looked as II the Central Lumber Com
/ pany would die in the midst OF a great
scandal.
The board Of managers came to the
/ conclusion that there were two avenues
( 10 escape. One was 20 declare new div
/ idend and let those members who had paid
| howl until they became tired. The other
| was TO persuade the delinquent members
/ To pay their bills. and in this way settle
| all just obligations. The latter method
| was adopted. and for three months the
| board Of managers have worked assidu-
/ ously 10 clear up the companys affairs.
The board has succeeded far enough to
! secure from nearly all OF the delinquents
| promise that they Will pay their inGeht-
| edncss as the others have done These
/ promises cover everything. with the eN-
| ception Of about $3.50. which cannot. under
| any conditions be collected This is the
| situation 81 affairs al present. If the de-
| linquent members OF the trust pay their
| debts a final settlement may be made
| within two weeks II these bills are not
| paid a big row viii probably cnllven the
/ proceedings Of some court