The daily morning journal and courier. [volume] (New Haven, Conn.) 1894-1907, 1899-03-27

IA twenty-five independent, solvent
and moderately successful corporations,
each with a separate factory establish
ment, separate engines, boilers and pow
er-producers, separate offices and office
outfits, separate New York, Chicago
and San Francisco stores, separate sets
of travelling men, etc, etc, all to satisfy
some one want of society; while society
on the other hand secures the satisfac-
ton of its want by supporting twenty
five parallel railroads. as to that COM
modify.
The whole thing is a gross eXtrava-
gance and represents the present indus
trial organization-tha which the trust
| ing movement aims at correcting so far
as it is economic, pure and simple. The
Christian virtue, economy, ought not to
destroy us root and branch if otherwise
virtuous.
Inside the industry, as factories spring
up, competition becomes ruinous and
the game is to see who can hold out the
| longest where all cannot survive.
Carking care grinds the fun all out of
it and most Of the life out Of the manu-
| facturers. On the other hand, bankers
and capitalists, working against large
amounts of capital seeking investment,
can secure but savings bank returns on
their loans, and they are dissatisfied
Manufacturers are longing for relief
from the competition, bankers are cast
ing about for better returns on loans,
and the public is seeking lower prices.
| The situation demands an economic in
| vention.
| -. = iyr
| industry "A'' are too high for the pub
| lie and too low for the manufacturers.
| While competition among the manufac-
| turers reduces the prices of their pro-
ducts near to their danger point, it can
| not reduce them below the possibilities
| incident to the aforementioned separate
esta Enlistment items and the possibilities
I incident to a one-twenty-ffth interest
in the public want industry "A" sup
plies, for further reduction would mean
ruin; hence low prices from the manu-
facturers standpoint may consist with
high ones from societies. standpoint,
compelled as 1t may be to support too
many establishments in the satisfaction
of its want.
Lee us follow through trust forma-
ton which proceeds purely upon bust
ness and economic grounds. The man
ufacturers and capitalists get together.
Each corporation exhibits the state
ments made to its stockholders at its an
nual meetings for ten years last past,
and from these it can be quite accu-
rately determined what each corpora
ton is worth A particular corporation
has land, factories, furniture, machine
r+a l. nd CD, an o nd
bills and accounts receivable and good
WILL" worth so much; deduct from this
its Indebtedness and the real value Of
the corporation and it's business is APP
proximately ascertained.
Even the good wilr' item can be very
accurately gagged, by experts in the
line, from the statements and trend Of
the business for the ten years preceding.
Now suppose the gross worth of the
twenty-five corporations is found to be
1900, 900, that they owe $4,000,000, that
therefore their net or real worth is S.
600 000.
The bankers say: "Mr. Carnefellow
is great captain Of industry and the
most successful of you manufacturers;
let us form a trust, make him its presi-
dent and concrete the trust about him |
and his business"
1t is done and on the following basis:
No corporations are taken in that are |
apparently in failing circumstances; |
each corporation is given, not preferred |
nor common, but just stock in the trust |
equal at par to the corporations actual |
value as afore- determined; h bankers I
pay the 100000 of Indebtedness and |
receive 100000 par value, of trust
stock; no preferred stock, no common
stock, no bonds, no call upon the gene
raj public for assistance; the bricks are
gold all the way through and the par
ties concerned want all Of them.
The public will note that unsalted gold
mines seldom come east seeking the
public's gold; western men want them.
Mr.. Carnefellow, an incarnation Of
good business principles. Immediately
closes up "a New York stores, same in
Chicago and San Francisco; demolishes
"a Office outfits and abolishes "a sets Of
travelling statesmen; numbers the facto-
ries from to % and uses those of them
he needs concentrating all as far as
practicable about q single center of
power, light, heat, etc. He institutions
Allies the business, that is establishes a
buying department which must keep up
with the times and get the market in all
purchases which must buy coal, raw
and supplies generally for the
whole of the twenty-five factories, and
often, in one transaction, enough of a
particular commodity to last year.
selling department that looks after
salesmen routs, travelling expenses,
prices, ETC.. credit department which
must put it's information and bases of
credit in black and white, rather than
carry it in the head Of some individual
genius who bye and bye will die and
carry his knowledge with him, leaving
ais institution to learn it all over again
by experience and bankruptcies; an adj
5ertising and catalogue department; a
aw and collection department, etc., ETC.;
md over each immortal department he
places the best man for the purpose
hat can be found among all the TWEEN
y-five constituent corporations.
A trust so organized will succeed and
make a startling profit, Immediately, in
he saving incident to satisfying twenty
ive-twenty- fifths of the public want
through one wholesale establishment in
New York instead of twenty-five, by one
ct of travelling men instead of twenty
i've, by one buyer buying twenty-five
ines as much in a purchase as the sep