The Worcester spy. [volume] (Worcester, Mass.) 1898-1904, 1899-03-19
GIGANTIC
Bicycle Trust Now
Forming.
WORCESTER MONEY
Is Waiting to Take Consid-
cradle of the Stock.

II ID me impression IN business circles
of New England that an amaIgamatior
of all the leading bicycle interests OF
the country is undHr way, and it is also
known to The Spy that if il is culmi-
mated large amount of Worcester
capital will be invested This last is
on the authority of prominent inter
ests connected with the proposit' n
The combine will involve capital to the
amount of $4,000, 600.
IL IS understood that 10 Of the leading
makers of wheels have entered the
combine and that several others will
probably be persuaded to add their
signatures to the agreement.
a q. Spaulding, a professional base
!all player in the '70's, being at one
tlile pitcher for the Boston league team
anu later a millionaire dealer in sport
ing goods in Chicago, is credited with
pelhg the moving spirit in the proposed
trust with him are associated Col A
-. rope and R. Philip Gormully. Of the
SToIinuIIS &s Jeffrey Manufacturing
Company of Chicago.
Attempts to form a bicycle trus+ have
peen many in the past but all have
peeh futile, primarily because the small
manufacturers could neither be CON
trolled nor eliminated, The reason for
TINS was that great concerns had grown
up whose business it was to supply
SinalI makers and dealers with bicycle
PdTts' winch were assembled" by their
purchasers, with the result that ni-
cycles We're turned out in such quanti-
ties as to make control Of price on pro
ductlon an impossibility.
with the coming of the chainless hi
cycle, how ever, the situation was al
tered ana the formation of a trust was
at once begun. With the replacing Of
chaln ana sprocket with shaft gearing
came the opportunity to shut out the
part makers and the consequent source
OIL Supply of the "assemblers.
While the transmission of power bv
means of shaft and gearing is not a
novelty, the adaptation of it to the
use of the bicyclist, involving the con
struction of the complicated machinery
necessary to turn out the gears. is said
70 nave cost one company five Years OF
labor and an expenditure of more than
FoVJV0O When the advantage for GER
tain purposes of the chainless Wheel
over the chain driven wheel had beer
demonstrated, company was formed
III New Jersey, and licenses to manu-
facture beVel geared bicycles under
us patents were granted to some OF
the largest concerns in the trade II
IS upon the foundation afforded by
these licensed concerns that the new
triSt is TO be founded. All the COM
panles licensed have agreed not to cut
prices under penalty OF forfeiture OF
license and the payment of q cash pen
atty, said to be $4,000.
When all this had been arranged, A. G.
Spaldlng set sail for Europe. At the
tlme 1t was said that he went for his
health. Just before sailing Mr.. Spald-
ing announced that henceforth his
wholesale business would be conducted
without the aid of iobber or middle
man. The meaning of this announce
ment was not made plaia until the
present trust was proposed.
In the course Of Mr.. Spaldings search
for health abroad, it is said, he OBJ
tanned in France the control of the
Acetayne patents, which are cOnsid-
cred to be the foundation of the beve
geared wheel, the French having used
this form of power transmission sever
al years before it was tried elsewhere
In England the cross roller gear pa
tents were obtained. These two cap
lures so improved Mr.. Spalding'
health that his speedy return to this
country and the formation of the
trust followed.
No change in the bicycle business fo1
the present. year Is contemplated, Dill
next year each manufacturers pro
duct will be marketed through trust
Gepots, eliminating the middlemen's
profits. In keeping with this idea, the
allied companies will make their pur-
chases Of materials through central Of
fees, and at a great saving.
That all this has been carefully
planned is shown by the recent organ
ization of a $5,O00,000 bicycle saddle
Inv A
dent of the National Cycle Board OF
Trade. This trust includes every large
producer of bicycle saddles in the
country. To this is TO be added the
Tire trust, which has been completed
within the last few days; the steel tube
combination, and the wood-rim organ
ization.
The blow thus struck at the "assem-
blers" is likely to be deadly. The com
bination, with its enormous capacity
for production, coupled with complete
control of cycle components through
the various minor trusts will be in 2
position to plage chain driven bicycles
on the market at a price which no las
sembler" can hope to compete with. In
the meantime Chainless bicycles will bt
turned out at a retail price of from S6(
to $15 each. The fact that the price OF
the trust ConN%lle chainless wheel is
sure 10 be maintained is expected tc
be a strong argument in favor of Its
purchase by the rider, who has grown
tired of paying SIS for a bicycle one
day, only to see the same make OF
wheel offered for half that price the
next
Aside from the el-geared whee
there are two chainless bicycles manu-
featured each of which is declared by
its maker to be the equal of those
which will be controlled by the trust
Terms have already been offered tC
these Independent concerns, which viii
probably be accepted.