New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-07-22
ENGLISH INDUSTRIALS.
INDUSTRIAL CONSOLIDATION ON A
LARGE sCALE-MR. JOHN r.
BARTLETT's SUCCESS
Full CAMPAIGN IN
ENGLAND

An important English industry has employed
an American coach In the new Industrial art OF
company amalgamation. Mr. John r. Bartlett
! having recognized the business OF the Ameri-
can Cotton OIL Company In 1901. had the techni-
cal knowledge required for effecting a consoll-
dalton Of the principal companies and firms
engaged In England In the manufacture OF oil
and cake and in oil refining AS the former
president Of the Nicaragua Canal Company and
as a capitalist having large commercial interests
in Europe. he had made the acquaintance Of
many OF the greatest English fnanciers, and
was in a favorable position for conducting
most complex and difficult undertaking He
came TO England about the middle Of February
and at once entered upon A campaign OF educa-
tlon in the centres Of the oil and cake industry
In the course of month he conferred with the
managers Of the principal companies and firms
engaged In this business in Hull. Liverpool,
Gloucester, Glasgow Leith, Bridgwater, Burnt
island. Gainsborough and London
After making a thorough survey Of the field
and explaining his views in detail 10 the chief
operators In the trade he issued an invitation
10 an informal conference 10 be held on March II
in his rooms at the Hotel Cecil. While he had
been the circuit of the oil districts, he had
been impressed with the conservatism Of tho
trade and with the lack OF unity and organza-
ton in business Of enormous magnitude. The
managers Of the factories and refneries were
competing sharply with one another and suffer-
ing from the lack Of concerted action: and they
were so suspicious and jealous Of one another
that they could not adopt measures for self
preservation SO deeply had they been i'm
pressed with the practical nature OF Mr.. Bart
let's proposals that the leaders OF the trade
accepted his invitation and met in his rooms.
The chairman was Mr.. Nelson Foster, OF
Gloucester representing the oldest firm in tho
trade, and Mr. Bartlett was called upon to ex-
plain his consolidation scheme.
The motive OF the amalgamation plan was
simple. The managers Of the factories and re
fineries had been acting against one another
under pressure of competition. They could eff
feet many economies in manufacturing and dis
tribution Of stock by acting together and taking
advantage OF their combined practical knowl-
edge Instead Of purchasing seed and supplies
through their own agents in competition With
one another they could concentrate this branch
OF the business and cheaper the cost Of produc-
tion Systematic arrangements could be made
for the distribution of stock with large saving
in working expenses. and approved methods %
manufacture could be adopted. The rival man.
ayers, who had never sat at the same table
before. did not need special information in these
matters What they required was a practical
plan for the reorganization OF their business.
They asked Mr.. Bartlett II he had definite
scheme of operations. and he at once produced
one with comprehensive method OF ascertain
ing the values Of the plant, business and good
will Of the properties to be acquired by a con-
solidated limited liability company. A resolu-
ton expressing approval of the general principle
Of amalgamation was adopted, and Mr.. Bart
let's plan was referred to a special committee
NO OPPOSITION FROM ANY QUARTER
At a second meeting this committee reported
favorably upon this plan with some unessential
notifications in detail. There was no opposition
from any quarter, and the English solicitors
employed to examine the plan critically could
not find any flaws in 1t. draft Of an agree
nent TO be entered into with Mr.. Bartlett was
reported. and ne was empowered to negotiate
with the strongest companies and firms for the
purchase Of their property, with view to It's
transfer to a consolidated company. He was
TO obtain an option to purchase their business
and plant within six months the price being
determined by fair apprasement Mr. Hugh
Colin Smith, formerly governor Of the Bank OF
England was named as an arbitrator, but SO
smoothly were the negotiations carried on thA'
his services were not required.
The magnitude OF the operations conducted by
Mr. Bartlett may be readily illustrated. He has
purchased twenty-eight mills and twelve oil re-
fneries, with crushing capacity Of not less
than 500 900 tons Of oil seed per annurn- The
contracts of sale made with seventeen
companies and firms, representing about " per
cent of the trade. These commercial rivals
opened their books to him when they would
not reveal he secrets of their business TO ono
another The property and plant stock In trade
re nd
Of each competitor had to be equitahly APP
praised. and full inventory made OF the NOV
able plant, book debts and cash working capital.
These contracts of sale were completed on
cash basis without recourse to arbitration Tho
British oil and Cake Mills, Limited, was then
organized to carry into effect the agreements
entered into by Mr.. Bartlett and Messrs. Chad
wick & Co.. his brokers. This company has q
share capital Of 81 100000. one-half in preference
and one half in ordinary shares. and $I5o'oVo IN
first mortgage debenture stock. 1t Will start
with an issue of 81, 10000. the remaining SoOo-
600 being reserved for the development OF the
business. With extraordinary rapidly Sl.4oo'
600 has been UNDERWATER already, and the re-
naming $780, 900 will probably be provided for
when public subscriptions are solicited early
next week.
Mr. Bartlett having won the confidence OF the
trade, has induced the important companies ana
firms TO sell their property and business to tho
British OIL and Cake Mills. Limited. They have
been influenced by the increasing severity OF
national and International competition In the
purchase OF supplies and in the distribution OF
products, and have amagamated their interests
in order to receive fair trading profit They
have bought out their own business at what tho
accountants have regarded as an equitable casn
valuation The combined business will be con-
Quoted by joint Board OF Directors headed oy
Mr. Hugh Colin Smith, and representing the
largest companies now in the trade Loru
Vantage and Mr.. Reginald Abel Smith Will Dc
tho trustees for the debenture stockholders. Mr.