Evening star. [volume] (Washington, D.C.) 1854-1972, 1899-01-25
BRICK TRUST FORMED
The Standard Company to Control Large
Proportion of Local Output.
Agreement With Nine of the Four
teen Companies Terms Upon
Which Business VIII Proceed.

"A large proportion OF the Drlck manu1ac-
tured in the District and vicinity will here
after be sold through one company. This
concern, which was recently organized I'M
der the laws of West Virginia and is known
as the Standard Brick Company. is a dis
tributing agent for the product of nine out
Of the fourteen brick plants supplying the
local market.
The company began business short time
ago and is the result of the recent finan-
cial depression which. according to those
engaged in the business of brick making,
has left a flourishing industry in a condi
ton where loss rather than profit was the
rule.
Z The new company has made contracts or
agreements with the following concerns to
take their entire output: Washington
Brick Company, 7. p. Holbrook, president;
VIM. II. West & Co., Morrison Brick Com
pany, VIM. T. Walker & Co, Virginia Brick
Company. George W. Pearson, presi-
dent; Alfred Richards Brick Company,
w. A. Richards. president; Washington
Brick and Terra Gotta Company, Childs
Brlck Company, Charles Chflds, president,
and c. r. Monroe
1t is stated that these concerns have an
annual output of about co, 000, 900 brick
The total output of all the brick making
plants in the District and vicinity amounts
to 10,oo0,0O0. 1t is further stated that the
%
approximates $50, 100000 of brick annually.
while the consumption last year was less
than half that.
Reduces Prices.
This condition coupled with the COMPETE
ton for business between the different con-
Germs has, it is said, brought prices down
to a basis which admits of no profit.
1t is also stated that not only We're the
brickmakers selling their output at ruin
Gus figures, but owing to the eagerness of
the competing companies for business,
credit was given to irresponsible men,
which has resulted not only in actual loss,
but has done much to demoralize the build
ing business and to prevent responsible OPP
orators from getting contracts.
According to the terms of the agre ament
with the new company, the brickmakers
take no risks either of finding a customer
or of getting their money. Both of these
risks are assumed by the new company,
which agrees to take the entire output of
the companies the exact figures being stip-
ulated in each case, and to make settle
ments each month.
The main company is TO sell the brick
and collect the money, but in any event
paying the constituent company the
amounts due to il.
The company, of which Mr.. Theodore L.
Holbrook is president, has a capital of
$4,000 and aims, according to the presi
dent, to act as a commission merchant for
the various brick concerns, taking their
product and paying for it.
One Result.
AS to prices this new plan WILL bring
about an advance of about 81 per 1000
brick, and as about 600 brick are re-
quired in the construction of a very large
house, this increase will add to the cost Of
such house 800 for the brick. During the
past five years, or since 1892, when the late
financial depression began, brick such as is
used in the ordinary walls of buildings, not
front brick. of course, has sold as low as
$3.50 and Sc. 1t is claimed that this
price is too low, especially when the
business is cut up and there is liability of
much loss on bad accounts Now the rate
for machine red brick of various qualities
ranges from S. to $3.50 per thousand while
$50 is charged for handmade red brick.
All orders received by the various COM
panies signing this agreement are first sent
to the new company, and there filed from
the yard of the company specified in the
order. 1t is evident that as each of these
companies maintained salaried officers,
clerical assistance, &c, which under this
arrangement Will no longer be needed, that
the operating expenses will be lessened.
While in no sense is this arrangement
looked upon as trust" of the brick in
terests of the city, still it is thought that
If the experiment proves to be a success
that there will be a closer organic union Of
the various companies, which may possibly
result in the substitution of one large COM
parry in place of the individual concerns.
1t is stated that even this form of coop
Grafton was difficult to secure and was only
brought about by the experience of the
to have been severe financial strain, and
which has convinced the majority of the
brick makers in the city that it was the
only recourse in a desperate emergency.