New-York tribune., 1898-12-11
TRUSTS IN ENGLAND.
rur pYERs' COMBINATION IN THE BRAD
FORD DISTRICT-THE WORLDS
BATTLE FOR A MARKET


BATTLE FOR A MARKET.
Bradford November %.
Americans who are accustomed to inveigh
c.rainst the protective system as a screen for
trusts. combinations trade syndicates and other
.crsanixed conspiracies against the masses"
,ousht TO visit industrial England and ask a
,ew pointed questions. They would he sur
cnsed TO learn that Free Trade does not Sc
cure England against the employment Of simi-
lar agencies for limiting production and regu-
l.t.ne price. There are either trusts or COM
h,nations in nearly all the great English In
srstries and the pooling movement is justified
sv practical manufacturers as necessary
,,easure Of self-defence against reckless COM
pettion and as convenient expedient for re-
aucing the cost Of production.
one Of the most powerful combinations in In
sustriai England Is now in the final stage OF
,ormation at Bradford. This is the dyers' trust
The word used in Yorkshire is Combination"
hut this is a distinction without q difference
II IS pooling arrangement for regulating pro-
auction and price in % per cent OF the dye
ing trade OF the Bradford district. The num-
her Of subscribing firms is twenty-four only
one large dyeing concern IN the West Riding OF
Yorkshire being out of the pool. The arrange
rent has not yet gone into effect. but am In
formed by one Of the largest firms that the de-
tails are settled and that there is no reason
10 doubt that the trust Will be speedily formed
The method adopted is that OF organizing a
company which will represent the entire piece
tye,ng industry Of the West Riding with the
s,uele exception already noted This company
will buy the business Of each Of the twenty -four
combining firms. The capital will consist OF
s25Oo0OO0 in round numbers. Sl5,OOO,OW In
ordinary shares and 100000 in debentures.
Each firm will surrender its business to the
trust, and Will receive for Il 33 1-3 per cent
IN cash and 66 % per cent In fully paid-up or
d,nary shares About $4,000 600 OF the capital
will be used in this scheme OF operations S10-
100000 In ordinary shares and S5.O00OOO in
debentures The remainder Of the shares and
debentures. So 900 900 Of each class and s10.-
OO0OOO together. will be reserved for future
purposes and contingencies. 1t Is not inproba-
n. that one Of the uses TO be made OF this
reserved capital will be the purchase Of chemi
cal and dyesturf works Of sufficient capacity
for supplying the company and Its twenty -four
branches II is not expected that the shares
mt upon the market will exceed S. 100000 In
face value.
Each dyer who surrenders the general control
q. his business 20 the trust Will retain
sonal superintendence and direction OF It as
manager As the scheme Is explained to me,
there will be special inducements offered TO
the managers 10 conduct their business eco
nomcally and 10 make It profitable as pos
eible When the profits the ordinary shares
have reached a level Of Z per cent. bonuses Will
be paid TO the managers. and these Will be based
upon the Individual profits OF their business.
This expedient. which will he provided for IN
The agreement for the purchase OF each busi-
&c Uht n
managers TO 90 their best. and not to fall back
upon the general security offered by the trust.
1t will also be a safeguard against unloading
shares upon the market whenever they are at
premium An effort has been made to con-
vince me tha. this dyers' combination diners
from an American trust in providing for the
retention Of individuality and private manage
rent o. each business The discrimination
seems an artificial one. The dyers in buying
themselves out with the assistance Of outside
investors virtually give up their control OF
production and price. and take their orders from
general board q management. That converts
the combination into trust 1 suspect, more
over that the individual managers will be
found TO be human. and not indsposed to un-
load their shares upon the market whenever
favorable opportunity arises.
One OF the most prominent merchants in
Bradford undertook IN genial way 10 explain
70 me why this combination VS. forming. The
scheme had been proposed by a financial syn
dica,e. and some OF the veterans Of the trade
had been attracted by Il because II seemed 70
offer an easy and comfortable method OF es-
cape from the harassing cares Of Business. These
were the largest manufacturers in the piece
cyeing industry. who had grown old and worn
IN the trade and were glad 10 be released from
The Increasing pressure Of competition. The
scheme outlined IN the prospectus was. more
over, an Ingenious one. and younger men IN the
trade were quick to perceive the advantages
which they would derive from entering the COM
bination They would not be thrown out OF
business. and would continue TO have charge or
their own works; but they would be released
from cut-throat competition. enabled 70 pur-
chase supplies more economically and guaran-
teet against loss by a clever scheme or finance
One OF the foremost dyers In the combination
was more Outspoken in his comments he olo
not finch when he was confronted win 'ne
word trust" He defended the combination as
measure OF self-preservation. They were ruin
Ing themselves by their energy ana enterprise
IN undertaking one another They needed TO
protect themselves. tie cotton trace anu
many other branches OF English industry had
'uNNeeueu IN Qolng DE slHl!Iai c"i0N
the trust regulate production and price Ger
tainly. That was Of the chief oDJects' An
other advantage would be a great reouc'on III
The cost OF supplies. II had been proNeu
wherever the experiment Of combination "a'
been tried that trust could buy supplies Oh
large contracts more economically tran indiV'o-
ual firms Undoubtedly in this way the cost oi
production would be materially reduced III '"e
pece-dyeing trade by the trust. even II ci'e"'
hal and GyestuH works were not puTc"aSeu
and managed by the company THIS p'o0esS
OF cheapenng production would tend 10 DeNe'''
The general Bradford trade. Another co'sP'0u-
GUS advantage from the trust woulo pe mn