The morning news. [volume] (Savannah, Ga.) 1887-1900, 1899-11-05
A NAVAL STORES COMBINE.
A TRUST MOVEMENT SAID TO BE
WELL UNDER WAY.

] Inc EMort to He Made to Combine
All the Naval stores Interests, In
Guiding Factors and Producers. In
One Corporation, which Would
Have a Monopoly of the Business
and Thus Insure a Continuance of
High Prices With Large Profits to
the Stockholders of the Trust.
Factors Unwilling to Talk Freely,
But Admit That They Have Been
Approached on the Subject-Mr. j.
X. Garnett Interested in the Move
ment-Mr. j. p. williams FavOrs
the Combination.
A movement is on foot to form a COM
bine of all the naval stores interests OF
| Georgia and adjoining states in one con-
Germ, with the object of gaining practi-
cally entire control of the naval stores in
dustry and dominating the market. The
movement has been on foot for some time
and is now well under way.
Indefinite rumors have been heard from
time to time that something of the kind
was in progress, but those most Interested
have been very successful in keeping the
news of the deal from the public Several
Of the largest naval stores factors, who
were seen yesterday, acknowledged that
they had been approached on this sub
ject, but one and all declined to discuss
the matter for publication. Il was very
plainly intimated, however, that a deal Of
Immense proportions is on foot and some
of the actors more than intimated that
they regarded the movement with favor.
| AS To the 6af1flg Of h., al
pie who are behind the move but little in
formation was obtainable.
1t was learned, however, that Northern
capitalists have been looking into the ques-
ton of a naval stores consolidation for
some time past. Agents, acting in their
behalf, have obtained statistics showing
the receipts of naval stores of the different
grades at Savannah and other ports and
the prices received each year for the last
ten years. Other statistics have been
gathered as to the number of firms and
the amount of capital invested in the bus
mess, the extent of territory covered by
operations, and the area still remaining
available for such operations. These fig
ures must have evidently been satisfactory
to the parties interested, for their repre-
sentatives have been here and have
preached their plans to leading naval
stores factors. The offers and induce
ments held out to the factors must have
been of satisfactory kind as some of
the Oldest and most successful factors
have expressed themselves as regarding
the proposed consolidation with favor. 1t
is said that options have been obtained up
on the businesses of some of the largest
houses, but none of the factors seen would
Fadmit anything of the kind.
So far as the factors are concerned the
plan is said 10 be simply to form one large
| nFaF f~NnrN
of taking over all the large factorage
business, paying the factors literally for
their interests and giving them the option
Of taking stock If they so desire. It is
not TO be merely a large factorage COM
bine, however The producers are to be
taken in also AS one of the main pur-
poses of the trust is to assure a contin-
ufty of high prices for naval stores, il
} IS said that no difficulty is anticipated in
proving to the producers that it is to their
interest to join in the combination There
are many independent producers, some of
whom are quite wealthy and who could
afford to remain outside the trust should
they see fit to do so. 1t is expected that
these will be the most ready to enter
. however, as the argument will be used
that the added value given to their proper
ties by reason of the establishment of a
| monopoly will prove very much to their in
terests. The majority of the producers, as is
well known, are to a greater or less extent
in the control of The factors, who advance
them the money with which to secure
lands furnish the capital wi which The
: business is conducted and sell them sup
plies on credit, receiving in return the pro-
duct of the turpentine farms. Bound up
as they are by their obligations to the
factors il would be ficult for the smaller
producers 10 remain on the outside. In
fact, it would be a case of going in with
the combine or being shut out of business
at an early date
Mr. J. X. Garrett, a well-known South
Carolinian who was formerly in business
in Savannah, is said to be acting as the
representative of the Northern capitalists
interested in he move. Mr.. Garnett has
been very successful in various lines of
business and is now largely engaged in
naval stores ope Tations. AS Mr.. Garnett
is an enterprising and aggressive man in
whatever he undertakes, it is not unlike
ly that the idea of such a combine was
first suggested by him. At least he is just
the sort of man to urder take such an en-
terprise. With Mr.. Garnett was a Mr.
Barber of Boston. who is &C ing for him
self and other Northern capitalists.
If the combine were merely a local one
the Savannah naval stores men would nor
need to look for outside capital. 1t is
well known that they have prospered in
their business and many of them have
large bank accounts, as well as extensive
credits. Their healthy financial condition
and their confidence in the future pros
perity of the business has been very fully
demonstrated during the last twelve
months by their very extensive invest
! ments in pine timber wherever available
tracts were to be found in Georgia and
adjoining states. 1t is estimated that in
the neighborhood of a million acres have
been acquired for such purposes within
; the last few months.
The idea of a combination of the local
factors for the purpose of decreasing ex-
penses and extending operations has been
incidentally discussed at various times
! but as the firms were prospering indi-
: vidually the necessity for a combination
was not felt. The attractiveness of the
present scheme for the factors is said Ia
lie in the fact that it would enable them
to realize at once on their holdings at a
maximum valuation and to retire from the
business with their capital and profits IN
hand, or, if they chose, to continue as
operators in the combine many of the