New-York tribune., 1899-07-19
THEY STAND BY THE TRUST
MANUFACTURERS TO REMAIN IN THE
AMERICAN BICYCLE COMPANY.
THE CAPITALIZATION REDUCED FROM ssO-
10000 TO s4oOoco-DENIAL THAT CHI
CAGO CONCERNS WILL WITHDRAW.

IL $+,Us.ss-DENlAL THAI NiiA-
CAGO CONCERNS WILL WITHDRAW.
The American Bicycle Company. sometimes
called the Bicycle Trust" has survived the
thrusts of it's enemies. and intends to thrive. as
The Tribune has predicted that 1t would from
the start. The leading bicycle manufacturers
OF the country have been in the city for the last
two days and at a meeting held at the wal
dOrf-Astoria yesterday afternoon the company
formed and the distribution OF stock was
arranged for and agreed upon. Little now re-
mains TO be done except routine business A
G.. Spalding will be the president OF the COM
pany. and the other officers will be elected later
Another meeting OF the manufacturers and
bankers will be held to-day
Rumors OF dissensions. di,1 greements and re-
organization have been plentiful OF late ana
they have found credence acoong those who do
not understand financial problems of g-cat
magnitude. AS late as yesterday alleged infor-
nation to the effect that the Bicycle Trust had
collapsed" was distributed broadcast, ana at
the time OF its publication the manufacturers
and bankers were in consultation, understanding
one another perfectly, and agreeing on nearly
every point that came UP for discussion. Inc
contamination will be a severe blow to certain
trade publications which have done everything
in their power TO throw dlscredit upon the
movement
THE MANUFACTURERS PLEASED.
When tho manufacturers we're seen in the cor
ridors Of the hotel last niglt they were profuse
in their congratulations to one another that
the matter had at last been settled George H.
Day Of Hartford voiced the sentiments OF the
majority when he said: Yes the matter has
been settled TO the satisfaction Of everybody.
and think that it will be a good thing for the
Industry There was no hesitation whatever as
soon as the situation was explained in us en-
tirety."
The company has been formed by the same
manufacturers already mentioned and on 'he
original lines. with one exception OF the tor'S-
five concerns, representing hftythree plants none
withdrew. as had been announced. The orisiha'
proposal TO have a capitalization OF $soVVoVVu
was after mature discussion changed 10 a
Capitalization of S4OOOOOOO. The promoters
agreed that this would squeeze out all the water
and that 1t would be the best for all concerned
This S4O.OO0.OOO Of capital will be divided az
follows: $10OO0OO0 per cent twenty year
gold debenture bonds: 100000 4 per cent
cumulative preferred stock and S2o""VVV
common stock. The manufacturers VIII receive
for their plants 30 per cent In cash. ~ per cent
in preferred stock and 20 per cent IN common
stock. This arrangement seems 10 he entrey
manufacturers 10 per cent premium
A MEETING IN THE MORNING.
The manufacturers and the bankers met at
the Waldorf Astoria in the morning. and the
proposed formation Of the company was ex-
planned IN detail II was then suggested that
a recess be taken until o. m. to give the man
ufacturers an opportunity 10 think the question
over. When the delegates met again at the
appointed time the consummauon was effected
i.. a fsw nIsatss. While some OF the mamlf..ct-
urers may have hesitated at first it was said
last night that as soon az the situation was
ished. The fnanciers Of the company are the
United States Mortgage and Trust Company. Of
this city, which was represented by George W.
Young. and the ee-HigginsOn Company of BOs-
ton. represented by c. VI. Lane Rumors OF an
intention on the part Of the Western Wheel
Works and the Gormully -Jef'ery Company 10
withdraw from the company were denied.
RumOrs were also circulated yesterday TO the
effect that Charles r. Flint OF the United States
Rubber Company. might prove 10 be thorn in
the side of the company. II said that Mr..
Flint had not been present at the meeting and
that the rubber companies already interested in
the concern would continue in IT, These COM
panies the Indiana Rubber Company the
Hartford Rubber Company the Peoria Rubber
and Manufacturing Company and the Gormuy
Jefery Company. Debentures were taken by
the manufacturers who are said TO have sub
scribed for stock. saying that they considered IL
a good and safe investment.
Mr. Spalding, who has almost single handed
carried out the scheme felt pretty we'll tired
out last night. and he could not be seen Il
was said that he would retire 10 the country for
a few weeks rest OF which he Is 90 sorely in
need. Mr.. Spalding was congratulated yester-
day by most Of the other manufacturers for the
manner in which he has been able 10 carry the
scheme 10 its successful conclusion in the face
OF considerable opposition.