The sun. [volume] (New York [N.Y.]) 1833-1916, 1899-07-19
THIS CYCLE TRUST A GO.
NEW ORGANIZE TI0N REJECTED CAP
IT4LIZED At $4,000, 900.

Fragments OF the Collapsed American Ill
cycle Company Cementcd by n Fresh
Proposition, which the "Kickers"
Promptly Grasp-Part Payment in stock.
Out OF the ashes OF what has been known as
the Cycle Trust" which was consumed in the
fires Of it's own ambitions. there arose yester-
day a new one that has bodily health and
financial wings strong enough to maintain
an individual flight. The story OF the
disintcgration Of the old trust. capitalized at
SSOOOO 900. and the endeavors looking to-
ward tho formation OF a new one. rs told in
THE SuN yesterday. was proven to be correct
by the continued proceedings and was so con-
coded by the makers. who assembled yester-
day afternoon ut the Waldorf Astoria
The new cycle trust will be capitalized at
S40.Oo0.o00. one half OF the figures fixed upon
for the original com ine. and there has been
complete Encouragement OF the plans for stock
distribution Instead OF all the plants being
bought in wholly for cash. the owners will
accept 30 per cent In cash. 30 per cent.
in preferred stock and 30 per cent In common
stock. This is a total Of 10 per cent. which
means that the plants being taken in at the
original appra scmcnt the manufacturers will
receive q premium Of 10 per cent. in the deal
now on. because OF accepting part in stock.
Under this arrangement all are happy. and the
combine is on u substantial footing that 1t
could not find before.
THE suN early in the evening BY some OF the
men who have been known as the kiokers" and
at reconciliation. They were the men who
were rather antagonistic to spalding and the
chiefs OF the trust promoters, and their declara;
| tion that all differences have been harmoniZed
| is therefore doubv significant. 1t is probable
that the men representing the big Western
| concerns will have hereafter more to say; and
! this may mako a difference when the officers
| otthe COMPANY are chosen.
! knew what would be done to-day. Very few
thought that there would be any com bnation
h h W sasee Was
FEsetGay on Monday When
oherS wef had Ra
! Guided to accept the new terms. 1t was not
the stubborn ones came around" They were
the big Western makers who have declared all
were the. Western Wheel Works, gormully 4
and the indians Bcyef. company. Il a. '
| After the meeting some Of the men who had
Why y9 hey nsSHR
| The sentiment OF all was expressed by one
"" Heretofore the scheme was q balloon which
that il they were 70 have eighty millions
stock tnSy could afford to pay no cash ash
face at the start The security will be gilt
edged, and l would Just as soon have such
" You think. then, that the stock will list at
Il think that it will not be listed I eSpect
to see every share OF 1t taken in by ourselves"
| James A. Hart. representing A. q. Spalding.
| made an official statement to tho press shortly
after O'Clock last night. Substantially 1t is
THE American Bicycle Company has been
s35.60G.WG in preferred stock and ID $40. 0oo.oV
| in common stock. Owing to the conditions OF
the market =, rrgarding ,industEas i vas
The water has all been squeezed out now
reduced 20 s+0.ooo,0oo This Will be repre-
bearing 8 per, cent. interest, II called
To- There viii be ten ten Millions OF per cent
stock cumulative as to dividends and preferred
as 70 as5cts, TIL" remaining twenty millions
| will b. in common stock OF the CORPORATION.
The debenture bonds will be offered to the stock
holders at ~. and with the money derived
plants. They will get. besides the 80 per cent
cash. 80 per cent. in preferred stock and 80
per cent in common stock and the factories
will be taken in on the appratsement already
There we're forty -NYe concerns represented
at The me%nE Th%rs WIRE o opt9ns f t1ken
sxciudod The f"rty-nye tlrns present r. rep %
resented MY six separate plants.
| IL was generally understood that Charles II
| Flint OF the Rubber Trust was In close touch
| with the meeting OF yesterday. The only state
ment obtainable was that Mr. Flint was not
present at the general meeting. 1t is gen
| orally supposed that Mr.. Flint has played
| m important part in the negotiations
and that some Arrangement by which the
| Rubber ] rust W II figure in the tire consump-
ton OF tho Cycle Trust was made before the
combine was effected. One presumption that
| seemed to md favor was that the tire com
| panies now in the Cycle Trust will be affiliated
with Mr. Flints Rubber Goods Manufacturing
| Company.
| All the DEVELOPMENTS Of yesterday accorded
! with the facts az cited in The SUN The
| original company utterly collapsed and no one
knew what would happen next, The quick;
ness in which differences were harmo1tzed and
new scheme agreed upon surprised the prime
| movers themselves. 1t became known last
night that II there had been no trust effected
| pool OF makers would have been formed. with
the, option on the bottom bracket patents.
| without which no modern cycle can DO made.
rs a nucleus 1t is believed that this patent
| kept the makers together under a realization
that something should be done.
1t is not expected that any attempts will be
made to freeze out small fry" makers at once.
! When the trust comes into possession of its
| pntents it will probably lcenss such OF the out
side makers IA il sees fit
The trust Will nor exert any marked influence
upon next years business. it Is said.