The Worcester spy. [volume] (Worcester, Mass.) 1898-1904, 1899-02-11
MoKAY
Shoe Machinery Co.
Forms a Trust.
25,OOO,OOO.
Goodyear Company and
Others in the Deal.

Another large trust has been formed.
The principal manufacturers of shoe
manufacturing machinery got together
Thursday last at the Touraine in Bos-
ton and effected the permanent organ
ization of the new combine. 1t is to be
called the United Shoe Machinery Com.
pany, and is incorporated under the
laws of New Jersey with "a capitaliza-
ton of $25.OOOOOO.
Eight of the principal shoe machinery
manufacturing concerns of the country
are represented in the trust as follows:
Consolidated & Mckay Lasting Ma
chine Company, Goodyear Shoe Ma
chinery Company, Mckay Shoe Ma
chinery Company. International Good
year Shoe Machinery Company, Good
year Shoe Machinery Company of Can
ada, Eppler Welt Machine Company
International Eppler Welt Machine
Company, Davey Pegging Machine
Company.
The following are the officers and di-
rectors of the new company:
The directors are: William Barbour
New York; Louis d. Brandais Boston;
George w. Brown, Boston; J. H. Clarke
Worcester; Charles H. Cole, Boston
William H. Coolidge, Boston; William
s. Eaton, Boston; John H. Hanan, New
York; Elmer P. Howe, Boston; Edward
2. Hurd, Boston; George e. Keith. Bos.
ton; Frederick G. King, Boston; O. E
Lewis, Boston; Edwin II. Mathewson
Bridgeport, Conn; Rudolph Matz, Chi
cago; Gordon Mckay, Newport, r. /.
Wallace f. Robinson, Boston; James ]
Storrow, Boston, Alfred r. Turner, Jr.
Paterson, N. j.; Samuel We'll, New
York; Sidney w. .Winslow, Boston.
The officers are: Sidney w. Winslow
president; John H. Hanan, Wallace Il
Robinson and Orlando Z. Lewis, vic,
presidents; George w. Brown, treasur
er and general manager
The American Loan e. Trust Com
pany will act as transfer agent, and tn,
Globe National bank as registrar of tn,
stock of the new company, and applica
tons will be made to list the stock upoI
the Boston and New York stock ex
changes.
The principal local interest in tn
new organization centres in the fac
that 10000 shares of stock in the con
Germs absorbed are held in this CITY
and that ]. H. Clarke of the McKa,
Shoe Machinery Company is named on
of the permanent directors. Next t
the Washburn & Moen deal, no tran
saction of the kind has affected 81
many Worcester people in recent years
Knowing stock brokers who have OBJ
served the sharp advances of McKa,
machinery stock, have suspected SOM
combination. But not until Presiden
Winslow made a definite announce
ment Of the organization yesterday ha
anything certain been ascertained
Stocks in the Mckay Company have i;
par value of $40. Lately they hav,
been selling at 81 and $S.75 Yesterda,
and the day before they went SOARING
upward The closing quotation yester
day was $13.12 ~.
This advance has come greatly to thu
advantage of Worcester stockholders
j. III. Clarke told a Spy reporter las
night that the Mckay Company, will
it's capitalization of s., 900 900. had SOLE
out way above par, and had realized {
handsome figure, just how much he re
fused to say. The deal can only result
in bringing largely increased wealth t.
certain citizens Of Worcester and con
sequently to the city itself,
One prominent Worcester clergyman
whose name Mr.. Clarke consideratel,
refrains from mentioning for fear II
would not like to pose as Spectator
was lucky enough to purchase so
shares of the Mckay stock when stocl
was down at 81. The reverend specu
lator is now enjoying to the full tn
bull market, which has nearly doubled
| the value Of his holdings. A long lis
of lucky ones might he printed.
Stock in the new company will b.
half preferred, half common. Preferred
stock will yield per cent dividends
There are 100000 shares at par valu
l nf HoS q 0haFa RfIf n all
| the common stock will be NOR
sought after, and yield greater returns
II would personally far rather par
with my preferred stock than my com
mon" said Mr.. Clark.
The chief object in consolidation il
| economy and the chief item in the lis
! Of things to be economical is lawyers
fees. One feature Of the business Il
| the constant patent litigation involved
| Each firm has been forced to hire tn,
| best legal talent at great expense. Thu
Mckay Company expended $4,000 fol
| lawyers fees alone last year. Unde
| the new arrangement a central lega
| bureau will be formed. to take charg,
| of the litigation Of all branches of thu
\ trust in a simpler and more economical
manner than has ever been done be
| fore.
| Another advantage will be NOR
| perfect division and specialization o
! labor One mill will devote itself eX
clusively to pegging, another to last
/ ing, and so on 1t is therefore believed
that the United States Machinery Com
pany's net earnings will be largely il
excess of the net earnings of the firms
absorbed.
| But the increased earnings will b,
secured solely from economy and no
| from putting up the price of machin
| cry. It has been definitely decided t,
| supply the shoe manufacturers will
what they require at the same rates al
| at present. Consequently, the publi
| has no occasion to fear that the pric,