New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-05-13
THE WHEEL TRUST FORMED
IT is THE AMERICAN BICYCLE COMPANY,
CAPITALIZED AT $S0,OO0,OOO.
CONCERN WILL BE FINANCED BY THE
UNITED STATES MORTGAGE AND TRUST
COMPANY. OF THIS CITY. AND LEE.

L,
HIGGINsON & CO., OF BOSTON.
The American Bicycle Company was incor-
porated In New-Jersey yesterday. The capital
stock is SSO0O0O00 OF which SS5OOOOOo Is I
per cent cumulative preferred stock and s4o-
OOO'OD is common stock. II is announced that
this company will take over the bicycle plants
on which A. G. Spalding holds options. and that
the enterprise will be financed by the United
States Mortgage and Trust Company. OF thls
city. and Lee. Higginson & Co.. of Boston
The announcement some time ago that
bicycle trust was to be formed to control the
output OF the industry Of this country created
a sensation In the trade and the liveliest inter-
est among those interested In the Industry OH
the other side of the Atlantic When the IN
formation first became public 1t was said that
the company trust would be capitalized az
$50, 1000. and that 1t would have nothing 10
do with the automobile industry. Now that the
official announcement has been made that the
company will be capitalized at SSO,OO0,OOO IN
stead of $50. 100000 those in position to know
say that the scope Of the trust will be much
greater than was at first supposed.
1t is known that A. G. Spalding. who has
engineered the consolidation, has been working
on the scheme for some time. When seen last
night Mr.. Spalding mad nothing to say, seeming
content to have other people do the talking for
the present. Other prominent manufacturers
who were seen said that the matter was entirely
in the hands OF Mr.. Spalding. and that they
were content to leave 1t there at this time.
One man who has been prominent in the ar
rangements for the trust said that he thought
that the deal meant not only the actual control OF
the bicycle industry in this country, but OF the
world as we'll. 1t is known that persons IN
terested in the consolidation have been In Eu-
rope recently, and additional developments are
expected at any time
When asked II the trust intended to elect OFF,
GERS Immediately to build one gigantic plant
where all OF the work Of manufacture would be
done, one OF the makers said: That Is ques-
tion which cannot answer at this time From
my own point Of view, cannot see where such a
change would be necessary Now, there Is one
manufacturer who is In the trust whose plant
can turn out 100000 wheels year. Others are
almost, IL not nearly. as we'll off. I think the
consummation Of the trust will be Of great BEN
eft to the industry. When the industry Itself is
benefited the benefits will extend in a measure
to everybody interested in the trade. do not
believe that the trust has been formulated with
the idea OF raising the price of wheels. BY control
ling the many patents connected with the manu-
facture of bicycles the trust will be able to man
age the business in buslnesske way, and to
manufacture wheels and to dispose of them with
less embarrassment than is the case to-day.
believe that In time the trust Will practically
control the output Of bicycles all over the world.
Mr.. Spalding has options on over one hundred
plants in this country that l know OF"
When asked what chance any opposition cor
poration would have against the trust one OF the
makers who was seen at the Firth Avenue Hosei
last night said II have heard considerable talk
about an alleged opposition recently, but per-
sonally I know little about 1t. ] have heard.
however. that the Secretary of State OF New
Jersey has refused to file certificate for COM
rany. The company, as / understand 1t, was 10
have a capital stock OF 5000, with the priyi-
lege Of increasing 1t TO $50.OOO,OOO. l am in
formed that the officials in the office of the Sec
retary Of State contend that this does not con-
form 10 the provisions of the act concerning
corporations"
A. @. Spalding, who has manipulated the deal,
is the head of the firm Of A. G. Spalding ~
Bros. and he is the man who conceived the idea
several years ago of taking two baseball teams
around the world. He thought that baseball
should be introduced among the nations of the
earth, and the trip did much to popularize the
game in many sections Of the world. Mr.. Spal-
ding was once a professional pitcher himself.
and while he takes interest in the active
management of baseball affairs he is as keen
lover OF the game as ever. o
When the players outbreak occurred in 1890
Mr. Spaldng found that he had his hands full.
The Players Brotherhood had received the fnan-
cial support of many prominent and wealthy
men throughout the country, and the success or
the revolt was admitted In many quarters. Mr.
Spalding was mainly responsible for crushing
the rebellion and in bringing "Al' Johnson and
other men who were behind the brotherhood 10
their senses Those conversant with the facts
will remember that I'm quarters where the base
ball rebellion supported most heartily in
those days will be found to-day the supporters
of the little outlaw cycle rebellion against the
League of American Wheelmen.
Trenton May II (SpeciaD.-The American Bi-
cycle Company was incorporated here this after
noon with capital stock Of $S0.000.000. divided
into S35 900 900 Of 7 per cent cumulative pre-
ferred stock and the rest common. The business
will be the manufacture and sale OF bicycles
automobiles and electric and other motors. The
corporators named James c. Young, Charles
w Pierson and A. Gordon Murray. all or Jersey
City.
END OF STRIKE IN SIGHT.