Hopkinsville Kentuckian., 1900-09-25

Indefinitely while the employees ar,
starved into submission mud. as III,
trust can do the work In some othei
factory without serious loss, It Is quite
independent of the employees. and car
absolutely prescribe the terms and
conditions upon which they shall live
The more complete the monopoly the
more opposed the managers viii he to
arbitration, because. I'm case Of any con-
test between the trust and its en-
ployes the trust will have every adj
vantage and the employees will be per-
feCtly powerless.
Another advantage cited by Mr..
! Flint is that "There "a no multiplied
tion of the means of distribution and
a better force OF statesmen VIII take
the place OF a large number"
Drummers Dispensed with.
This is an intimation that under the
| trust system the travelling salesman
will not be needed When every retail
| merchant must buy all goods of one
| class from a single company, the
work can be done by samples, and no
| travelling men viii be needed There
will be no competition between differ
ent factories because all are under one
management. The first man to feel
| this will be the salesman, who will
lose his occupation. The next man
to feel it win be the hotel man, who
will miss the trade of the travelling
salesman. The railroad VIII lose the
mileage paid by the travelling man;
the liverymen will lose their best pat
rOns. and the newspapers will lose the
advertising. because ii will not be
necessary to advertise when there is
no competition. All this might be toll
cradle if the saving thus made went
to the consumer, but as a matter Of
fact 1t goes to the monopoly. My at
tention has been called to a prospectus
issued by the International Steam
Pump company, organized March. 1899
under the laws of New Jersey, and
capitalized at S27 100000, of which
nearly half is preferred stock, and the
remainder common stock. l call at.
tention to this prospectus, because IL
sets forth the plans Of the trusts, and
shows who are to be benedciaries.
The International Steam Pump COM
pany was organized for the purpose Of
manufacturing steam pumps, and ac-
cordng to the prospectus, acquired
cOnttol of the business Of the follow
ing corporations, either through the
conveyance of the title to the proper
ties, and businesses of such companies,
or by the ownership of not less than
twO-thirds of their stock. as may be
found practicable" Then follow the
names Of five pump companies, accom-
panied by the statement that these
con panies are estimated to transact
II Of ho cto
ness of the United States, exclusive
Of lIgh-duty engines. The majority
Of !he companies also manufacture
such engines.
Sample Case of TRUSTS.
Ole Of the companies, taken into
tlte combination had assets estimated |
at q little more than $6,OOO.OOO: am |
other company had assets estimated at |
4 little more than S3,000,000; the third |
company had assets estimated at |
little more than S1,000,000. The fourth !
company had assets estimated at $780,
900. and the fifth company had assets
estimated at 100000. The good will
was not estimated in the above fig
uras. The total assets, therefore, Of
the i've companies not including the
good viii, were less than $12,000,000, |
md the prospectus states that the COM |
)iheG net profits of the five concerns |
%" the year 1898, estimated on the /
business OF ten months Of the year, |
would amount to S1,200,000. Under |
he head of Estimated additional |
earnings from consolidation" find the |
Each of the five companies now
maintains agencies in the principal cit |
es of the United States. The Worth
Hgton and Blake companies have /
stores and carry stock in London, |
hamburg, Vienna, and other cities. |
Some Of them have expensive salaried |
managers. All these agencies in this !,
and other countries viii be cOnsOli~ |
dated The stores and agencies main /
tanned in the cities of this country, and |
the forces of clerks statesmen, etc. /
necessary to conduct them, win he !
united and decreased, involving an es- |
tmated saving of at least $500, eco a !
year The expenses Of each company |
for its draughting department, Incl. |
dent to the elaborate drawings, and |
specifications for estimating Of work. |
VIII bring about a further reduction !
The staEdardizing Of the patterns for !
farm and domestic work which |
Is now under way In the Worthington !
factory, when applied to the entire
business of the new company, viii re-
suit in an estimated saving of at least
5000 600 per year.
And then follows in black type this
significant statement:
Advantages of Consolidation.
"a conservative estimate of the ad.
vantages derived from consolidation is
believed to be S1,300,000 over the pres
ent earnings, which would make a to-
tai Of future net earnings, with the
estimated earnings based on ten
months Of the years business Of ST.
SOC, 600, of per cent. on the preferred
stock, and over II per cent on the
common stock of the new company"
II will thus be seen from the pros
pectus that the advantages secured by
the cutting down Of expenses. will
double the income, and not word Is
said about giving the advantages of
this reduction to the consumer. The