The morning news. [volume] (Savannah, Ga.) 1887-1900, 1899-12-03
SUCCESS OF TRUST IN DOUBT.
PROMOTERS SAID TO he VERY
MUCH DISAPPOINTED.

guments which Are Being Used in
support of the COmbfnatiOn-Hun-
ter, Pearce X Bnttey EmphhticaHy
Deny Any Connection With the
Deal.
The naval stores combine or trust does
not seem 70 be quite so near successful
completion az 1t appeared TO be Friday
night The promoters interested left the
city yesterday. Mir. Dcnn Barber went
North with MS wife on the Kansas City,
while Mr.. W. a. Barber and Mir. John
X. Garnett left by train. presumably for
New York, though hey may have stopped
at Mr. Garnetts lace in South Carolina.
The Morning News has Il on pretty good
authority that the promoters were a Sc
riousfy disappointed set of men when they
departed. The cause alleged for the dis
appointment is the failure of one of the
large naval stores companies viii h has
been very prom nentiy mentioned in con-
nection with the combination, TO fan into
line at the last moment. 1t seemed 10 be
generally understood that the j. p. VII
liams Company was The one which declined
to enter into The combine on the proposed
terms. MIR. Williams who was seen at his
Office after the departure Of the promo. ers,
was disposed TO be non-conmittal as to the
pos ton of his firm. AT the same lime his
words were significant
II have maintained one position through
out since this comblna ion was first dis
cussed," said Mr.. Williams. Il have said
that l did not favor the formation Of a
trust which would deliver the naval stores
business into the hands of a syndicate of
New York capitalists. That whatever COM
bination 1 entered into must be
one which gave fun consideration TO the
interests of both factors and producers
and one which would be controlled by
Southern men. The gentlemen who have
been promoting a combine of the naval
stores interests, called upon me to-day
and stated my position to them very
plainly"
II was honest in my statement made
some days since of what l believed the
purposes of the proposed combination to
be-" said Mr.. Williams. 1T is possible
that the matter was put to other houses
In a different light and that some of
them may have been willing TO sell out
right. 1 am not now and never have been
favorable TO the organization Of trust"
Whether the gentlemen, who have un-
dertaken to promote the combination have
retired to rearrange their plans In order
to suit the conditions imposed by Mr.. Will
Jams, or whether they will go ahead with
the organization with the view OF bringing
the Williams company into line later, re-
mains to be seen. II is not likely, how
ever, that the scheme has been abandoned,
and II is safe to say that further efforts
VIII be made on this line. The opportunity
is tempting one, and the only wonder is
that the effort has not been made before.
The gentlemen who are promoting the
combine have made little attempt 10 con-
ceal the fact that it is sought to form
combination which win control the prod
uct and dictate prices. 1t Is believed that
this can be done by combining the large
factorage interests, and for this purpose
1t is proposed, il Is said, to organize a
company with capital of Sl0,00000O to $l2,-
00),O0O The question whether a part of
this should be preferred stock or whether
all should be common stock has been I'M
der debate, but the probability is that there
would be both common and preferred
stock, and that only the common stock
would be placed upon the market. Some
OF the factors would probably be given
preferred stock in lieu of cash. Ii Is the
intention of the syndicate, il seems, to re-
tain the controlling interest In the stock,
allowing the factors and producers to sub
scribe for a minority of the stock only,
the syndicate preferring to pay literally
In cash for the business and good will OF
the factors in order to retain the control
of the stock.
AAAN BlbhlottiE are not at loss Tor 9Tgu-
ments with which to support their posi-
ton. They point TO the fact that the ma
val stores Industry is on a limited scale
only, that it is compact and easily eus-
ceptible of combination, and that such
combination could not fail to be largely
profitable to all interested because 1t would
control article in worldwide demand
ana which could not be obtained else
where. The producers, they argue, could
not fail to be benefited, because his in
terests lie In the direction of high prices,
and it would be to the interests of the
combination TO maintain prices.
The advantages which would result from
such combination are alluringly held
forth. IL would not only maintain prices,
II is urged, but would result in the intro
duction Of improved me hods of handling
the product. Instead of the present expen-
siVe method of handling spirits n barrels,
putting the producer 10 the expense Of fur
nishing a large number of barrels each
season and paying extra freight on them,
tank cars would be used 70 br ng the sp r
its from interior poin s VIII CHI would be
emptied into large tanks to be constructed
here, where the spirits would be stored
until shipped abroad in tank steamers. 1t
is claimed that this would result In a on
centratton Of The business at Savannah
and would remove all fear Of Savannahs
losing her prestige as the chief naval
stores port by reason Of the exhaust n of
the pine forests of this territory as by this
system Of handing 1t would be possible to
bring spirits from much greater distances
than al present. The producer would save
money by rea. on Of the fact that ms cad
Of shipping to Savannah In barrels un9
paying freight back 10 his station on the
empty barre,s he would simply a linz
tied number of barrels, In which to haul
his product TO the station where it would
lie emptied into tank cars.
Little has been said about the conse-
quences of such combination to the buy
ers. 1t is asserted by unfriendly critics
that the result OF such a combine would
be TO eliminate the buyers entirely, as the
distribution of the product would simply
lie entrusted TO a firm of agents who would
see TO the handling of the product TO the
different markets. 1t would seem mat the
promoters are not so sure Of the combina-
ton as they had thought President w
c. Powell of the Savannah Naval Stores
Company said yesterday that he had re-
ceved no further light upon the question
as the result of the second visit Of the