Meade County news. [volume] (Meade, Kan.) 1900-1918, 1900-09-27

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| stock, as may be found practicable"
| Then follow the names of five pump COM
| panies, accompanied by the statement
| that these companies are estimated to
/ pump business of the United States, ex-
elusive of high-duty engines. The ma
! 1ority Of the companies also manufacture
| such engines.
| Sample Case OF Trusts.
| One OF the companies, taken into the
/ combination had assets estimated at
| little more than six million dollars; an
| other company had assets estimated at a
| little more than three millions; the third
| company had assets estimated at a little
| more than one million. The fourth COM
| pany had assets estimated at eight hum
| dred thousand dollars, and the fifth COM
| pany had assets estimated at seven hum
| dred thousand dollars. The good will was
| not estimated in the above figures. The
| total assets. therefore, of the five COM
| panies. not including the good Will, were
| less than twelve million dollars. and the
| prospectus states that the combined net
| profits of the five concerns for the year
| 1898. estimated on the business of ten
| months of the year, would amount to
twelve hundred thousand dollars Under
| the head of Estimated additional earn
ings from consolidation I find the fol-
| lowing:
Each of the five companies now main
tains agencies in the principal cities OF
! Blake companies have stores, and carry
stock in London, Hamburg, Vienna, and
! other cities Some Of them have expen-
! siye salaried managers. All these agen-
| cies in this and other countries will be
| consolidated. The stores and agencies
maintained in the cities of this country,
| and the forces of clerks, statesmen, etc,
| necessary to conduct them, will be united
and decreased, involving an estimated
| saving of at least $4,000 a year. The
| n r nv dranCht-
! ing department incident to the elaborate
! drawings, and specifications for estimat-
! ing of work, will bring about further
! reduction. The standardizing of the pat
! terms for farm and domestic work, which
| is now under way in the Worthington fac
! tory, when applied TO the entire business
| OF the new company, will result In an
! estimated saving of at least 100000 per
| year"
And then follows in black type this sig
| nificant statement:
Advantages of Consolidation.
| "a conservative estimate of the ad-
vantages derived from consolidation is
believed to be 81 100000 over the present
| earnings, which would make total of
| future net earnings. with the estimated
| earnings based on ten months of the
| years business of 81, 500, 600, of per cent
| on the preferred stock, and over eleven
| per cent on the common stock of the
| new company"
It will thus be seen from the prospectus
| that the advantages secured by the cut
| ting down of expenses, will double the in
| come, and not word is said about CIV
| ing the advantages of this reduction to
| the consumer. The money taken from
| the travelling men, from the hotel keep
| ers, from the railroads, from the livery
men, from the newspapers, and from
others who suffer by the discharge of
| travelling statesmen. clerks, etc, will all
| be added to the profits of the monopoly.
-f0 xxr1c 70 he NrToA orn md fanc
maintained to pay dividends upon ficti-
| tiouS capital.
To give a further guarantee that the
| monopoly, the prospectus says that the
| principal men connected with the various
| companies would become identified with
| the company and would contract not to
engage in like business for ten years.
| But what about the public? What guar
antee has the public that this monopoly
| will not raise prices? Is it not human
nature to make all the profit possible out
| of a monopoly? Is it not reasonable to
| expect that the monopoly, after elimin-
ating the statesmen, and adding their sal
| aries, and expenses to the profit account,
will seek further profit by raising prices,
| and lowering wages? Is it not reason
! able also to expect that there will be de-
| terioration in quality when the spur of
competition no longer conpels the manu-
| facturer to furnish the best goods for the
| lowest possible price?
| In a little book described as an Tn
vestment Guide" and issued in 1900, by
| Henry Clews & Co., bankers, 1 find a list
| of large corporations, together with
| brief description of the business done and
| advantages secured by consolidation. In
some instances an estimate is given of the
| output of the company as compared with
| the total product in the United States.
| Let me call your attention to a few of the
| corporations organized since the last
! Presidential election:
! Trusts Formed Under Mckinley.
The American Agricultural Chemical
Company incorporated under the laws of
| Connecticut in May, 1899, has an author
! lied capital of 600, half common
stock, and half preferred. 1t acquired
twenty-five of the largest fertilizing con-
| Germs in the country.
| The American Bicycle Company, incor-
porated In May, 1899, in New Jersey, with
500, 00o, 900 of common stock and $4,000, GOO
| preferred, consolidated forty-four of the
| largest bicycle concerns in the United
! States.
The, American Hide and Leather COM
| pay, Incorporated in New Jersey in May,
1893, with an authorized capital of $780,
100000, half common stock and half pre-
| ferred controls about seveny-five per cent
| of the upper leather output of the coun-
| try.
The American Linseed OIL Company, in
! corporated in New Jersey in December,
1885, with a capital stock of $3S, SOC, 900
consolidated eleven large linseed oil com.
| panies, and controls over eighty-fve per
cont of the linseed oil properties in the
| United States.
The American Steel Hoop Company, in
corporated in New Jersey in April 1899,
consolidated nine large steel and iron
companies in Ohio and Pennsylvania
capital stock $1s.OOO,OOO common. and s14.-.
100000 preferred.
The American Ship Building Company,
Incorporated in New Jersey in March.
1tsy w1,r, an authorized capital OF $780,
Oo0, O00 half common stock, and half pre-
d, seTred consolidated all ship building
and kindred interests on the great lakes"
American Steel and Wire Company. in
corporated in New Jersey in January 1899,
with $50 .000 common stock, and S4O,-
COZ, 600 preferred. controls about eighty per
cent of the nail and wire product Of the
| United States.
The American Thread Company, incor-
porated in New Jersey in March, 1898, with
| a capital stock of $12, 0OO 600 half com