Twice-a-week plain dealer. (Cresco, Howard County, Iowa) 1895-1913, 1900-09-28

nesses of such companies, or by the own
ership of not less than two-thirds of their
stock, as nay be found practcabie.
Then follow the names of five pump com
panies. accompanied by the statement
that 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
jority of the companies also manufacture
such engines.
Sample Case of Trusts.
One of the companies, taken into the
combination had assets estimated at a
little more than six million dollars; an
other company had assets estimated az
little more than three millions: the third
company had assets estimated at niue
more than one million. The fourth COM
pany had assets estimated at eight hun
bred thousand dollars, and the fifth COM
pany had assets estimated at seven hun
dred thousand dollars. The good will was
not estimated in the above figures. Tne
total assets therefore, of the tive 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" find the fol-
lowing:
Each of the five companies now main
tains 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-
sivs 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 100000 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 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
ntfcant statement:
Advantages of Consoli dalton.
"a conservative estimate of the adj
vantages derived from consolidation is
believed to be $l.S00.O00 over the present
earnings, which would make a total of
future net earnings. with the estimated
earnings based on ten months of the
years business of $500, 600, 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 down of expenses, will double the In
come, and not word is said about Civ
ing the advantages of this reduction tc
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
I others who suffer by the discharge o
. travelling statesmen, clerks, etc, will al
4 be added to the profits of the monopoly
e The stock was to be watered. and prices
: maintained to pay dividends upon ticti
: tiouS capital.
s To give further guarantee that tn
e monopoly. the prospectus says that tn
: principal men connected with the yariou
t companies would become identified wit
Il the company and would contract not t
+ engage in a like business for ten years
i But what about the public? What guar
antee has the public that this monopol
8 will not raise prices? Is 1t not huma
d nature to make all the profit possible Oh
: of monopoly? Is 1t not reasonable t
: expect that the monopoly, after elimin
o ating the statesmen. and adding their sal
!: aries, and expenses to the profit accoun
will seek further profit by raising prices
J., and lowering wages? Is 1t not reason
, able also to expect that there will be de
i terioration In quality when the spur {
II competition no longer compels the mani
"a facturer to furnish the best goods for tn
m lowest possible price?
In little book described as an III
ID vestment Guide" and issued in 1900. b
10 Henry Clews & Co., bankers. find n II.
of large corporations. together with
so brief description of the business done an
81 advantages secured by consolidation.
IL some instances an estimate is given of II
a. output OF the company as compared vii
the total product in the United State
al Let me call your attention to a few of II
n corporations organized since the la
IS. Presidential election:
on Trusts Formed Under Mckinley.
ID. The American Agricultural Chemic
es Company incorporated under the laws
re- Connecticut, in May. 1882 has an autho
ne lied capital of $40,000,00O. half CONNIE
nj stock, and half preferred. 1t ACQUIRE
s. twenty-five of the largest fertiliZing co
Germs in the country.
at The American Bicycle Company, inco
he porated in May, 1899. in New Jersey, wi
hs $40, 900 Of common stock and s1O,OOO,(
preferred, consolidated forty.four of t
30 largest bicycle concerns in the Unit
States.
te. The American Hide and Leather Col
le- pay, incorporated in New Jersey in Ma
ITO $685. with authorized capital of So
ne 600, Coo half common stock and half pl
II fcrred, controls about seveny-five per &c
ne of the upper leather output of the cou
he try.
icy The American Linseed Oil Company.
IN corporated in New Jersey in Decemb
ers 1898, with capital stock of $33.500. :
use half common stock and half preferr'
It's consolidated eleven large linseed oil co
ad- panies, and controls over eighty-tive l
err cent of the linseed oil properties in
United States.
Int The American Steel Hoop Company.
The corporated in New Jersey In April. Il
rec consolidated nine large steel and II
rye companies in Ohio and Pennsylvan
capital stock 900 common. and s.
coo. 900 preferred.
the The American Ship Building Compa
win Incorporated In New Jersey in Mar
err 1899, with an authorized capital of s
ass 0OO, 00O half common stock. and half p
he ferred consolidated "all ship buildi
oen and kindred interests on the great lake
nm American Steel and Wire Company.
he corporated in New Jersey in January, l
mt with $50, 0OO, 900, common stock. and 5
the OO0. 600 preferred, controls about eighty
ION cent of the nail and wire product Of
otel United States.
the The American Thread Company. inc
ose porated in New Jersey in March. 1898. "
an: capital stock of s12.O00.o00 half CO
,at mon and half preferred. consolida
the fourteen large thread companies in \
.es York and New England.
ON American Tin Plate Company. int