The Washington weekly post., 1900-09-18

pany vas organized for the purpose Of
manufacturing steam pumps, and, accCr1-
ing 20 the prospectGs, acquired coHtr0 OF
the business of the Glowing corporations.
either through ghs conveyance OF the title
% the properties and businesses of such
companies. 0T by the ownership OF rot less
than two-;hiTds Of their stock. as may
be found. practicable. Thsn follow ne
names % I've pump companies. accom-
panied by the statement that these con-
panies are estimated 70 transact - p@r
cent % the steam pump business of the
United States. exclusive Of high-cuty en-
glnss. The majority % she companies also
manufacture such engines.
sample asr ~ Tra-t-.
One of the companies. taken into the
combination had ssEets estimated al q
little more than six million dollars; an
other company hae assets est mated al A
little more than three millions. the third
company had assets estimated az a little
more than one miliicn. The fourth COM
pany had assets estimated az eight hun
dred thousand collars. and the Gfth COM
pany had assets estimated az seven hun
dred thousand dollars. The good vii was
not estimated in the above figures The
total assets therefore. OF the I'VE COM
panies. not including the good viii, were
less than twelve million dollars. ana the
prospectus states that the combined net
prohss Of the FIVE concerns Tor the year
lss. 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
tsins agencies in the principal cities OF
the United States. The W0rthington and
Bake Companies have stores and carry
STOCK In London. Hamburg. Vienna. and
0tner cities. Some Of them have expen-
slVe salaried managers. All these agen-
cles N this and other countries will De
consolidated. The stores and agencies
ma ntdlned in the cities Of this country,
ana the force OF clerks salesmen. &c
necessary 10 conduct tEem, Will be united
ana decreased, involving an estimated
saving Of al least 5000 a year. The
expenses OF each company for its
" IALgAtlng department. incident 10 the
elaborate drawings and specifications for
sssLilating OF work. will bring about a
furiner reduction. The standard zIng OF
the patterns for farm and domestic work
when IS now under way Ia the WOrthing-
ton factory, when applied 70 the en- ire
business oi the new company, viii result
~ an estimated saving o! at least s200 90
per year"
And lnen follows in black type this sig
nlhcant statement:
Adva tsges Of Cousolidat ton,
"A conservative estimate OF the advan-
tages derived from consolidation is be-
HeYed TO be $4,000 over the present earn
ings. which would make a total of future
net earnings, with the estimated earn
ings based on ten months Of the years
business Of s2,500,0oO. of per cent. on the
preferred stock, and over Il per cent. on
the common stock of the new company"
II will thus be seen from the prospectus
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 con-
sumer. The money taken from the travel
ing men, from the hotel keepers. from the
railroads. from the liverymen, from the
newspapers. and from others who suffer
by the discharge Of travelling statesmen.
clerks. &c. Will all be added to the profits
OF the monopoly. The stock was to be
watered and prices maintained to pay div
idends upon fictitious capital
TO give further guarantee Of the
monopoly, the prospectus says that the
principal men connected with the various
companies would become identified wit1
the company and would contract not 10
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 ii not human
nature TO make all the profit possible out
OF monopoly? Is IL not reasonable 10
expect that the monopoly, after eliminat-
ing the statesmen and adding their salaries
ana expenses 10 the profit account. will
seek further profit by raising prices and
lowering wages? Is IL not reasonable also
10 expect that there Will be deterioration
in quality when the spur of competition
no longer cOmpels the manufacturer To
furnish the best goods for the lowest pos
sible price?
In a little book described as an In
Yestment Guide" and issued in 1850 bv
Henry CleWs & Co, bankers, l find a list
OF large corporationSfi together with a
brief description OF the business done ami
advantages secured by consolidation. In
some instances an estimate is given of
the output or the company as compared
with the total product in the United
states Let me call your attention TO
lew or the corporations organized since
the last PRESIDENTIAL election:
Trusts Formed UHder iIckinley.
The American Agricultural Chemical
Company. incorporated under the laws of
Connecticut, in May, 1889. mas an author
lzed capital OF $4,000. .000-nalf 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, 1853 in New Jersey, with
S-0W4UOO Of common stock and sle,01O.0J9
preferred. consolidated forty-four of the
largest bicycle concerns In the United
States.
The American Hide and Leather Com
pany. Incorporated in New Jersey in Ma.
1888, with an authorized capital OF 49,
U0j,OJ, half common stock and half pre-
ferred. controls about 70 per cent. Of the
upper-leather output OF the country.
The American Lihseed OIL Company, in |
corporated in New Jersey in December, |
1875, with a capital stock OF SS35OJ.0JO /
half common stock and half preferred, |
eleven large linseed oil COM |
panies. and controls over s. per cent. OF /
the linseed oil properties in the United I;
States.
The American Steel Hoop Company, in |
ccrporateG in New Jersey ia April. 1899. 1
niEe large steel and iron
companies in Ohio and Pennsylvania; I
capital stock. Sl9,000.O0O common and sl4.- !
00J 900 preferred.
The American Ship Building Company,
incorporated in New Jersey In March, 4
1885 with an authorized capital OF S30.- I
o. 900, half common stock and half pre- 1
ferred, consolidated ''all ship building and i
KINDRED interests on tie Great Lakes"
The American Steel and Wire Company,
IN New Jersey in January, 4
ISe5 with S50,00O,gO common sock and si1- !
0gG00 preferred. controls about 81 per I
cent OF TIE aail and wire product OF tie 4
United States.
The American Thread Company. incor- I
pCrated In New Jersey in March, lS9S .
With a capital stock Of Sl2,UOJ 900 half
common and half preferred. consolidated /
fourteen large thread companies in New 4
York and New England.
The American Tin Plate Company, IN 4
curpOrated in New Jersey in December
1895. with SCI, 60 ,00O common stock and $50 =
90 00O preferred. consolidated about s.
per cent Of the tin plate mills in the ]
United States.
The American Window Glass Company.
in Pennsylvania September.
lS9g. with $4,000 0oo common stock and 81
l0J 600 preferred. cOnsol. dated window glass
plants in New York, Pennsylvania. New
Jersey. and Indiana, controlling about S