The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-03-11
THE WIRE NAIL TRUST
BIG COMBINE FAILS ON THE LINES
AS FIRST PROPOSED.
Leaders Determine to Form n Trust
with Number of Main Plants
Valued at $S,OOO,O0O.


larger wire nail companies in the country to
form trust las been abandoned and in
stead of a great combine several of the
concerns which were the leaders in the
movement to form a trust have decided
to form combination Of their own and
to leave the others on the outside. The
companies which are to form the present
combine are: Consolidated Steel and Wire
Company, which controls seven plants, one
in St. Louis. two in Joliet, Ills, one in
Cleveland, one in Beaver Falls, one in
Pittsburg and one in Allentown, Pa. !. l..
Ellwood, DeKalb, Ills. who controls the
Ellwood Wire and Nail Company and the
I. l.. Ellwood Manufacturing Company,
both of DeKalb, Ills; American Wire Nail
Company, Anderson, Ind; Salem Wire Nail
Company. which controls one plant at
Salem, o., and one at Findlay o.; H. p.
Nail Company, Cleveland; American Wire
Company, Cleveland. The failure of the
plan to form a trust which should include
all the large concerns of the country was
due to the fact that several of the COM
panies which were to have become mem
bers of the trust could not show a volume
of business sufficient to justify the promot-
ers Of the trust in paying the price de-
manded. Some of them were not making
money in quantities sufficiently large to
make them desirable members of the COM
bination, and after the expert accountants
had gone over their books and reported to
the promoters it was finally decided that
the above named companies would form
combination of their own.
The capital stock of the combination will
be $24, 100000, of which s12,OO0,OOO will be pre-
ferred and $120OO,OO0 common stock.
The head offices of the combination
which has yet not been given definite
name, will be in this city, and it is expected
that all the companies which are to become
members will be operating under one head
by the I'd of April, which is the date set for
the launching of the enterprise. 1t has not
as yet been decided where the new company
will be incorporated, but it will probably
be in Illinois. No officers have been Sc
lected and will not be for some days.
One of the chief men in the enterprise said
to-day that so far nothing had been done
except to agree to form combination on
the lines given above The estimated val
uation of the plants made by experts in the
employ of j. P. Morgan & Co., New York,
is S95N,90. This amount has, however,
been placed at $S0000D in estimating the
assets and the rest of the capital stock
$4,O00,000, will be in cash working capital
The Illinois Steel Company of this city, is a
party to the agreement, although not an
actual part of it, The wire mills have
agreed to take the entire output of it's rod
mills estimated at 10000 tons annually.
say: Everything is off in the pro-
posed consolidation of the wire IA and d
statement might be qualified by. saying
that while the original scheme, on the orig
inal lines, is dead, something may be ac--
complished in the next three weeks toward
Germs, but of this there is no certainty at
present. An exact statement, though IN
very general terms, is furnished by one of
the active promoters Of the combination, as
follows:
THE reports Of the experts as to The cam
ings of some of the companies do not verify
the representations which were made, and
the properties of these companies ill nc t
be purchased. Therefore the consolidation
as originally contemplated will not be con-
summated. 1t now seems certain that a
consolidation of some, if not majority of
the companies will be made about April L.
The names of the companies referred to
in the above are not at present available.
1t is understood that there was wide gulf
between the valuation put on the proper
ties of an important Eastern and Western
interest and the figure which the company
insisted upon-the difference between &c.
100000 and $S,OO00OO, according to some re-
ports This was the greatest but not the
only difference which required to be re-
adjusted. The capital to carry through the
scheme was fully arranged for, 1t is said,
but the bankers refused to underwrite on
the basis of the figures set by certain COM
panieS. The latter appeared not to con-
slider the advantages offered by the cOnSOl-
idation to be attractive enough to warrant
the concessions in values they were asked
to make The amount of time and money
spent thus far upon the project, and the
fact that for several years the need of bet
ter adjustment in the wire trade has
spurred manufacturers to one and another
scheme Of association, argue for some out
come of the present effect. Another week
will show more clearly than can be judged
to-day whether there is a chance for the
partial amalgamation now contemplated.
Thus far the market has not shown any
effect of the failure to reach agreement at
New York. perhaps because the trade has
not been informed of the real outcome of
last Saturdays conference. The advance in
wire nails, which was to be to $1.50 for
March, was announced last week, but is
now ineffective, $145 at Pittsburg being gen.
orally quoted. 1t is evident from the recent
demand in nails and wire that buyers have
been keeping close to the market and stocks
are light all along the line.
That the proposed amalgamation of the
wire industries of the country has been a
failure is admittedly John w. Gates, pres
ident Of the Illinois Steel Company, who
was one of the originators and promoters OF
the proposed combine. Mr.. Gates said to-
day. THE attention of all concerned in the
former plan of combination is now being
directed toward perfecting a consolidation
of some of the companies which were
among those in favor of the original
project" April 1 is said to be the time by
which the details will be arranged.
DeadxvOOd SmeIter Burns.
DEADWOOD, S. D., March 1O.-Fire to-