The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1899-07-29
WHAT RUBBER KING FLINT DIT
FORCED ALL TIRE PLANTS INTO HIS
BIG RUBBER TRUST.
Automobiles to BE Made Cheaper mt
napolis-Meeting in New
York Next Week.


the details of the formation of the bicycle
trust, the only reservation being the price
paid for the Indiana plant This. he said,
the public had no right to ask and he could
not be prevailed upon to change his mind.
The new trust has been organized on a
more conservative basis than the plan out
lined at first, and, according to Mr.. Smith.
all the water" has been squeezed out of
the combination and IT is now capitalized at
rational figures. 1t had been intended orig
inally to organize with q capital Of $780,
000 900, but a peculiar circumstance COM
PEELED the bankers who had the scheme in
hand to refuse TO float the enterprise, and
their refusal in turn opened the. way for
the present organization.
Under the plan the bankers will not be
asked to underwrite the concern, but, In
stead, all, or nearly all, of the debentures
In the new combination will be taken by the
different manufactures who have become
parties to the trust. Instead of $4,000, 600
the new trust has been capitalized at $40
600 0OO of which 80 900 will be in per
cent debentures, 100000 in preferred
stock and $40, 600, 900 In common stock. The
forty-two plants which have been included
In the combination will cost $31. 5000 to pur-
chase, leaving 100000 as working capital
and for stamping out competition.
1t has been popularity supposed that A. G.
Spaulding has been prominently before the
public as the organize OF the trust.
and would be at its head when it
was organized. Instead. however, Mr..
Smith says, Spauldings interest will be a
small one. and that, although he has been
the "go-between'' in the deal, his largest
profit by the consolidation will be in the
nature of a ''rake-off'' from the United
States Mortgage and Trust Company, which
Is acting as the depository for the stock
subscriptions. The people who will figure
most prominently IL the new company will
be Col. Albert s. Pope, of the Columbia
Company; II. A. Lozier, OF the Cleveland
Company; Gormully & Jeffry, OF Chicago;
Mr.. Coleman, OF the Western wheel works,
and C. F. Smith, Of the Indiana Company.
According to Mr.. Smith, although he has
been unfriendly to Colonel Pope for several
years, he will vote for him for president Of
the new company, and there is little proba-
bility of any other man being chosen to
head the concern. 1t Is further probable
that the ether men named will fill the other
offices and serve as the board Of directors.
Spaulding. according to NJ. Smith. is but a
small manufacturer and will cut but a small
figure In the new trust.
THE RUBBER KING" FIGURES IN 1T.
The most important thing settled by the
new trust was the thing that prevented the
contamination of the deal several weeks
ago, and that was the question Of tires.
The trust will make no tires, and whatever
the different factories require iE this line
will be bought of the Rubber Goods Com
pany, which is headed by the Rubber
King" Charles r. Flint, of New York. Ac-
cordng to Mr.. Smith, there is every reason
to believe that the trust would have been
for a tbs ITS rgfa neS Ths m
dividual, who owns a line of steamers
plying between New York and his extensive
rubber plantations in South and Central
America has gradually acquired either by
purchase or consolidation nearly all the rub
Der tire plants in the country except those
owned by bicycle companies SUCH as the
Pope Indiana and other concerns which
have made their own tires for several years
past: The Flint interests are represented
by the Rubber Goods Company, which was
financed by j. p. Morgan and the Belmonts
some time before the bicycle trust was
Wien it was decided to organize the BIZ
cycle trust the same financiers were asked
to underwrite 1t and they agreed to do so:
tires was taken en up and then the bicycle
men who had given options to the trust
were notified that 1t would be impossible to
hurried to New York to ascertain what had
so radically changed the situation in such
short time The promoters and those VINO
informed that Charles r. Flint through his
Rubber Goods Company" whose finances
mont syndicate, had objected to them act
ing as underwriters for the new trust,
which. on paper. looked as though c IT mignr
out of the tire business. lnasmuch as the
syndicate had made millions out OF the rub
Der company and sun controied ltS nnah
Then it was that the different manufac-
turers, feeling a confidence in the future OF
the trust, undertook TO underwrite their
own business, and start was MADE IN tnat
direction. Before much had been done.
however, an agreement was patched UP
with the rubber company by which II was
arranged that the trust would not manufac-
ture tires and would allow the TIRE pants Tn
pany and the Indiana Bicycle Company 10
be merged into the Rubber Goods Company.
which has acquired all the other tire WORKS
of Importance in the country.
This plan has already been perfected and
the transfer will be made as soon as the
trust has been formally organized: While
these negotiations were progressing the
principal bicycle manufacturers in the trust
mad af III , 5oI the al financial
dictate then agreed TO float the common and
preferred stock.
NEW $s,OOO,0OO TUBE TRUST.
One OF the principal results of the new
trust viii be the separation or the dlHerent
industries allied with the actual manufac-
ture OF wheels. AS a first step in this direc-
ton secret deal was contaminated
Wednesday by which the Shelby Tube Com
pany, OF Shelby, o., which already owned
ten of the thirteen tube works in the coun-
try, acquired the Pope tube works, of Hart
ford, Conn.,. which is operated in connection
with the Columbia bicycle works, and the
two tube works owned Jointly by the Indi-
ana Bicycle Company, Gormully & Jenny
and the Western wheel works One of them
Is located at Muncie and the other at Au-
burn, Pa. The new concern, which, how
ever, has become part OF the bicycle trust.
will be Incorporated separately. with CAPT.
tai of $500 oC0.
While, according to Mr.. Smith, nearly all
the big bicycle companies have been expert
menting with automobiles the only really
valuable machines are those made by the
Indiana Bicycle Company. and the automo-
bile department was, therefore, a large part
OF the assets OF the Indiana company. I'M
der the direction OF the trust. IL rs expected
that they will be put on the market at such
reduced prices as to render outside COM
petitors. using gasoline for motive power,
practically helpless Whether the manufac-
ture OF the Indiana automobiles will be
fined 10 the Waverley works has not as yet
been decided.
The principal effect OF the trust will be.
however. 70 simplify, and, therefore, cheap
en- the cost of production OF the different
wheels. IL Is not now contemplated closing
any of the factories except some OF the
smaller ones. which have been buying a