New Ulm review., 1900-09-26

nesses Of such companies, or by the own
ership of not less than two-thirds Of their
STOCK, as may be found practicable.
Ihen follow the names of five pump COM
pan1es, accompanied by the statement
tnat these companies are estimated to
transact ninety per cent of the steam
pump business Of the United States, ex-
elusive of high-duty engines. The ma
)orlty of the companies also manufacture
such engines
Sample Case of Trusts.
One of the companies. taken into the
com blnation had assets estimated at a
httle more than six million dollars; an
U.her company had assets estimated at a
httle more than three millions; the third
company had assets estimated at a little
more than one million. The fourth com
Pany mad assets estimated at eight hun
dred thousand dollars, and the fifth COM
pahy nad assets estimated at seven num-
dred thousand dollars. The good will was
NOT estimated in the above figures Ihe
total assets, therefore, of the five COM
panles, not including the good will, were
less than twelve million dollars, and the
prospectus states that the combined net
proTts OF the five concerns for the year
lss9 estimated on the business Of ten
months of the year, would amount to
twelve hundred thousand dollars. Under
the head of "Estimated additional earn
lngs from consolidation" I find the fol-
lowing:
Zach Of the five companies now main
ta1ns agencies in the principal cities OF
the United States. The Worthington and
Blake companies have stores. and carry
STOCK IN London, Hamburg, Vienna, and
other cities. Some Of them have expen-
SlFe salarled managers. All these agen-
cles 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 s500,000 a year. The
expenses of each company for its draught-
Ing department, incident to the elaborate
drawings. and specifications for estimat-
ing OF work, will bring about a further
reduction. The standardiZing of the pat
terms Tor farm and domestic work, which
Is now under way in the Worthington fac
tory. when applied to the entire business
or the new company, will result In an
estimated saving Of at least 100000 per
year"
And then follows in black type this sig
niticant statement:
Advantages of Consolidation.
"a conservative estimate of the ad-
vantages derived from consolidation is
believed to be 81, 100000 over the present
future net earnings. with the estimated
earnings based on ten months of the
years business of So, 500, 900, of per cent
on the preferred stock, and over eleven
per cent on the common stock of the
new company"
1t will thus be seen from the prospectus
that the advantages secured by the cut
ting Gown 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
The stock was to be watered, and prices
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 a 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 monopoly? Is it not reasonable to
expect that the monopoly, after elimin-
aries, and expenses to the profit account,
will seek a further profit by raising prices,
and lowering wages? Is 1t not reason
able also to expect that there will be de-
terioration in quality when the spur of
competition no longer compels the manu-
facturer to furnish the best goods for the
lowest possible price?
In a little book described as an I'm
vestment Guide" and issued in 1900, by
Henry Clews &. Co., bankers, I find a list
of large corporations, together with a
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
ized capital of $40000,000, half common
stock, and half preferred. 1t acquired
twenty-five of the largest fertiliZing con-
Germs in the country.
The American Bicycle Company, incor-
pora ted in May, 1899. in New jersey with
$50, 100000 of common stock and SIC, ,00O, 900
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,
1899, with an authorized capital of $685.
100000, half common stock and half pre-
ferred, controls about seveny-fve per cent
Of the upper leather output of the coun-
try.
The American Llnseed OIL Company, in
corporated in New Jersey in December
1898, with a capital stock Of $33, 500, 900,
half common stock and half preferred.
consolidated eleven large linseed oil com.
panies and controls over eighty-f1ve per
cent of the linseed oil properties in the
United States.
The American Steel Hoop Company in
corporated In New Jersey in April, 1S99
consolidated nine large steel and iron
companies in Ohio and Pennsylvania,
capital stock 600 common, and S14,-
C00OOO preferred.
The American Ship Building Company,
incorporated in New Jersey in March,
1899, with authorized capital Of $780,
100000, half common stock, and half pre-
ferred, consolidated ''all ship building,
and kindred interests on the great lakes"
American Steel and Wire Company, in
corporated in New Jersey In January, 1S99
with $50 900, 900, common stock, and s4o,-
900 900 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
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