The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1899-12-09
The Confidential ProspectUses of the
Promoters Are Received by
a Local Banker.
NEW JERSEY INTERPRETATIONS
FINANCIAL AND OTHER PLANS OF
THE COMBINATIONS SET OUT.
Practically All OF the Product of the
Country I'm Both Lines TO BE Con-
tro1Ied by Three Trusts.

The first real information about two new
trusts to control the corset and the axle
and spring industries in the United States
was received in this city yesterday in
confidential prospectuses" sent to bank
ing firm of this city.
The corset trust is called the Corset
Company of America and is to be incor-
porated in New Jersey, with a capitaliza-
ton of s2S. O0O. 900. Nineteen firms, represent
ing over so per cent. OF the corset output
of the country. arc TO be absorbed as fol-
lows: American Lady Corset Company,
Bortree Corset Company. Bay State Corset
Company. Birdsey. Somers & Co.. Coronet
Corset Company, Chicago Corset Company,
Globe Corset Company, 1. Neuman & Sons.
James Bowers q Co., Jackson Corset Com
pany, Langdon, Batchelier & Co.. Michi-
gan Corset Company, Olmstead-Q uabog
Corset Company. Reliance Corset Company.
Strouse, Adler & Co., the Warner Brothers
and the Worcester Company.
The prospectus states that under existing
conditions, as separate plants, the new
earnings of the companies in the trust
have been sl.5S5,3sl.7S for the year ending
July 1. 1899, and that during the year from
January to July there was an increase in
sales of AZ per cent. over the correspond
ing six months of 1898, with no additional
expense in the selling departments of the
various firms.
In giving reasons for the advisability of
the trust in the corset trade, the pros
pectus says: can entertainment of long
term profits is deemed necessary as the
vendors are thoroughly familiar with the
profitable character of the business in the
past. the same in many instances being
much greater than at present owing to the
pressure of increasing competition and ex-
pense.''
A TABLE GIVEN.
The advantage to accrue from the consol-
idation of interests is set forth to be in
'the saving of expense and increase of
profit" as follows:
BY reducing number Of styles
carried by each company, thus
saving per cent. interest on
% per cent. reduction of stock. $37, 10000
This item is computed upon the total
present stock carried by constituent con-
Germs.
BY having separate plants con-
fined to one grade of work, thus
saving, by piece work, increas-
ing production and operative eff
1ectlVeneSS ..................-...... 2I5,OUO.O0
1.-THE estimated saving on this and preced-
ing item in other manufacturing trades has
been computed at 10 per cent. on the total
manufacturing cost and the figures here
with extended are deer1ed to be ultra con-
servative.1
BY saving % per cent. of travel
cling expenses ...... 275,OOOOO
By closing five factories, thus
saving the rents and superin-
tendence ........................... 100000
By reducing Office expenses
namely, bookkeeping, clerk hire,
stationery and office inciden-
tails ACKNOWLEDGEMENTS. 100000
By eliminating salaries now paid
some principals ................... $50, 10000
By saving in advertising ....... 200. 100
By saving in purchase Of raw
materials and interest on loans. 200, 90
By reducing general expenses
namely, awnings, signs, display
forms, store fixtures, managers
commissions, bonuses, etc.. 200, 90
IA fair idea of this possible saving may
be derived from the present expenditure of
over $4,000 for forms alone.l
BY closing thirty distributing
offices. at $500, and retaining
practically one in each distrib-
uting center NEUTRALITY-SUSPICIOUS.. 2i0,0O000
Freight differences