Worcester morning daily spy., 1898-03-11
AT A STANDSTlEL.
Negotiations for Wire Combine
Are Likely to Fail.
Washburn & Moen Co. Were Unwilling to
Accept Offer Made by the Promo
tiers as Too Low.

The Spy is able to state this morning.
on the best authority. that the big wire
deal is at a standstlll with the chances
against any successful resumption of
the negotiations between the promoters
Of the combine and the officials of the
Washburn & Moen Manufacturing Com
pan%
The promoters of the scheme, as the
result of their appraisal of the property
of the Washburn & Moen company,
made an offer Of $3.50 per share for the
capital stock of the corporation, which
offer the representatives of the Wash,
burn & Moen company declined to con-
sider The promoters feel that they can
not offer any more without increasing
the amount offered other companies.
which they expected TO bring into the
combination. The officials of the local
company set 5000 share as their price
when the combine was first mentioned,
and they have at no time been willing
to complete the deal for less than that
figure. The suggestion for a combine
did not come from them, and they had
no idea of selling out unless they were
the promoters of the scheme cut down
the appraisal of the Washburn & Moen
plants in this city from SS,O00,0O0 to
Sc, 900 900, there was Immediately an end
to the negotiations.
The Washburn & Moen company is
the largest concern In the proposed
combine, and the failure to acquire this
property will, without much doubt, l1l
the whole scheme. The options which
the promoters have on the different
steel and wire plants in the country ex-
pire on April /, and there is no time,
even if there were q disposition on the
part OF the promoters, to make a read
| justment of valuations whereby the
| Washburn & Moen stockholders would
| be satisfied.
1t is quite possible that some of the
| stockholders of the Washburn & Moen
company may be sorry the deal did not
go through, as $500 per share is con-
| siderably above the market price of the
| stock, but the shares are reasonably
sure to continue paying per cent divi-
dends, and 1t is not altogether easy to
ment, even at 5000 per share. The Bos-
| ton and Albany stock, for instance
| which pays 8 per cent, sells at $222 to
1924 per share.
| Very little stock has changed hands
| since the talk Of a combine began.
| luOQSH LOT Il long Il11e In6rS were SLdDQ-
ing offers of $40, $3.50, and even $40 per
share. Most of the local shareholders
held on to their stock, hoping to get $500
| or even more II the deal went through
While possibly the stockholders might
| have made a good thing by the sale of
| their stock for twice it's par value, 1t is
| by no means certain that the deal would
| have worked to the advantage of Wor-
cester. It had been decided to put P. w.
| Moen into the position Of general man
ager and vice president of the combine
companies, while William b. Rice, the
president Of the Washburn & Moen Co.,
was to be one of the board of directors
and chairman of the finance committee.
While these men should remain at the
head Of the combine 1t is quite likely
that the business in Worcester. would
be carried on as at present; but 1t is by
no means out of the range of proba bill
ties that some time in the future 1t might
occur to the men who held the control
ling interest in the stock, that the bust
ness of Wire-drawing might be carried
on more cheaply at some place nearer
the iron and coal mines of the middle or
southern states, and that much of the
| business might be removed from Wor-
| cester
On the whole, therefore, Worcester
has no reason to deplore the failure to
perfect the great wire combine. Wor
cester industries have managed to thrive
tolerably we'll when owned and con-
trolled by Worcester capital, and it is
much better for the city to have the
| Washburn & Moen stock held by many
| local investors than to be in the hands
Of a great syndicate to which the pros
perity and growth of Worcester are no
account.