The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-12-19
WIRE TRUST STATEMENT,
It's Object Is Not to Raise the Price
to Consumers.

CHICAGO, Dec 18.-The gentlemen
who are engaged in organizing a COM
DlLatlon of the wire manufacturing in
terests of the country have issued the
following explanation of the enterprise:
With the view of largely increasing the
export trade in wire, wire nails and other
products, and also materially reducing the
cost of their manufacture and sale certain
gentlemen who for many years have been
identified with and successful in the business
have, after careful study Of the situation,
decided to organize a new corporation which
will Immediately engage in these lines and
will also acquire by purchase the properties
of the leading manufacturers of wire through
out the United States. The new corporation
has not yet been organized, but steps will
soon be taken for that purpose. The amount
of this capital stock will be sufficient to pay
for the property to be acquired, and also to
furnish ample funds for doing the business.
After negotiations covering the period of
many months. agreements have been made
with the owners of the largest and most
prominent class for the purchase of their
properties, including the lands buildings, ma
chinery and patents, at prices which are con-
sidered reasonable, but which are subject to
examination and verification by expert
chanical engineers and accountants. Three
of the most competent engineers have been
selected and are now examining the different
plants; and one OF the largest and best
known houses Of expert accountants in Eu-
rope and America Is now examining the books
and auditing the accounts of the different
companies for the purpose of accurately de-
ternining their earning capacity. The prices
10 be paid by the new company will largely
depend upon the reports of these experts, bat
it is believed they will fully justify the
prices which have already been named So
soon as the reports have been made and the
prices fixed and the titles examined the pur
chases will be closed and business COM
menced by the new company.
A large portion of the capital stock of the
new company will be subscribed by those
who are now actively engaged in the bust
ness and who will be personally connected
with the management Arrangements will be
made with Messrs. J. p. Morgan & Co. to
underwrite the balance, that under all con-
tngencies the necessary cash capital shall
be Forthcoming. When the capital stock is
all subscribed the stockholders will meet and
elect a board of directors and the latter will
designate a president and other officers. 1t
is intended to select officers generally who
have had the greatst experience and produce
the best results in the manufacture of wire.
and who will retain large interests. There
are a. few smaller concerns who are desirouS
of selling their plants to the new company,
and ii is probable they will be purchased,
II offered at fair prices.
1t is not proposed to antagoniZe the inter-
ests OF any other manufacturers in any re-
spects: nor to increase the manufacture of
steel b;llets; nor is it the intention to in
crease prices to the consumer. The new
company will be managed on an economical
basis and it is expected the large increase
in manufacture and trade will cheaper pro-
ductlon and result in fair profits. There is
no doubt the United States can obtain and
hold the enormous foreign trade now enjoyed
by some of the foreign countries, but this
can be done only by manufacturing in unison
and on such large scale as will reduce the
cost Of production.