The evening times., 1899-01-17
TOO MANY BICYCLES
Made IN ENGLAND
OyerproductiOn Causes a Fall
in the Market.
Four Big Companies in Birming'
ham Go Into Liquidation.
Suffers No Loss in POpu-
larity, and Society Still Pedals
as vigorously as Ever.

London, Jan. 1.-THE year just closed
has been a most unfortunate one for share
holders of many cycle manufacturing COM
panies. The financial papers have devoted
columns of space to accounts of meetings,
at which unfortunates, who had invested
in expectation of receiving large dividends,
were informed that, instead of dividends,
assessments were the order of the day.
Particularly is this the case in the
Birmingham district, where the effects or
the great bicycle boom Of 1896 are more
apparent than anywhere else. Within the
last few weeks no less than four big COM
panies have gone into liquidation, and 9th
ers are reported in a precarious condition.
II has been estimated by writer on the
subject that the puncturing OF the boom
cost Birmingham and the surrounding dis
trict no less than G12, 900, 900.
In connection with these reports of fl
nancial difficulties, it has been said that
bicycles are going out of favor, especially
among society people.
From interviews with some of the best
authorities in London it is learned that
there is no decline in the popularity of cy-
cling. In fact, Notwithstanding unfavor-
able weather, the demand for machines
from leading firms continues TO increase.
The cause OF the trouble in which many
cycling companies have found themse YES
is due TO a slump caused by the collapse
OF the boom which began in 1895. Prices
have been reduced all around, which was
the result of overproduotion. Newer COM
panies cannot compete with older estab-
lished companies, and as they had bui t
large factories and gone ahead producing
large quantities Of machines, the resu I
was they found themselves in trouble.
1t is also learned that cycling maintains
its popularity in society, and several gen
tIemen who were asked whether automo-
bilism had exercised any effect upon cy-
cling, said that so far as Eng and was
concerned the automobile is such a rarity
that il cannot be regarded as yet in any
sense a rival Of the bicycle.
a. ". Gamage, one of the Oldest and
best known cyclists in England and Cne
OF the best authorities on tha manufacture
OF cycles, said
From my own experience ! cannot for mo-
ment agree with those writers in the press who
say that the popularity Of cycling j. declining.
On the contrary, il is still on the increase All
the alarming reports IN the papers about col
lapse in the cycling trade have undoubtedly been
caused by reports cmanating from Birmingham
about the collapse OF big bicycle boom which
began III 1896
That is tine inevitable result OF such boom.
We all saw IL coming. When the boom began,
and ladies and all kinds and classes OF people went
in for bicycling. no end OF companies started,
some with too little capital. apiraliz-
ed. but II impossible that such boom, so
largely oyegdoue, could last any time, and the re-
suit Is that four out Of every SIX who specIlated
have lost money.
There is another reason Tor the collapse OF such
companies. Undoubtedly when the boom began,
the price Cf bicycles far too high. Prices
have come down. Bicycles have been made in
great quantities by some of those foolish conpa-
nies. who thought the boom would last forever.
They have not been able get rid OF their stock.
They raise the cry that the bicycle trade has
gone 70 the wall. with the result which YOU see.
Mr.. Henry Moore. general manager of
Humber cycles said, frankly:
There i DENYING the fact that there was
very considerable oyerproducJion. and that caus-
ell the disastrous slump. / say disastrous. be-
cause II has been the ruin OF 50 many who went
IN for SpeculatlnE without 4 thought of the fSI-
ture. The result Of overproduction was a fall in
prices on the part Of beth o!d-es;&bshed and
newer companies