Spirit of Jefferson. [volume] (Charles Town, Va. [W. Va.]) 1844-1948, 1900-10-09

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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
little more than six million dollars; an
other company had assets estimated at
little more than three millions; the third
company had assets estimated at 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 hun
dred thousand dollars. The goodwill was
not estimated in the above figures. The
total assets, therefore. of the five COM
psnies, 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
1923 estimated on the business of ten
months OF the year. would amount to
twelve hundred thousand dollars. Under
the head of "ESstimated additional earn
fngs 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-
sive salarled 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. salesmen etc,
necessary to conduct them. win be united
and decreased, involving an estimated
saving of at least $500. 900 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 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 $4,000 per
year..
And then follows in black type this sig
nihcant statement:
Advantages of Concentration.
"A conservative estimate of the ad-
vantages derived from consolidation is
believed to be 81, 300. 600 over the present
earnings, which would make a total of
future net earnings with the. estimated
earnings passed on ten months of the
years business of $2.5Oo. 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 tha nrosnectus
tnab 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
others who suffer by the discharge of
travelling statesmen clerks ETC. will all
pc added to the profits of the monopoly.
The stock was to be wRtered, and prices
maintained to pay dividends upon fict-
tious capital
To give 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 public2 What guar
antee has the public that this monopoly
viii not raise prices? Is it not human
nature to make all the profit possible out
of monopoly? Is 1t nos reasonable to
expect that the monopoly, after elimin-
atlng the statesmen, and adding their sal
aries, and expenses to the profit account
win seek further profit by raising prices
ana lowering wages2 Is II not reason
able also to expect that there will be de-
terioratton in quality when the spur of
competition no longer compels the manu-
facturer to furnish the best goods for the
lowest possible price?
In little book described as an I'm
Vestment Guide" and issued in 1900 by
Henry cleyvs & CO.. bankers, find 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 few of the |
corporations organized since the last
Presidential election;
Trusts Formed Under Mckinley.
Re American Agricultural Chemical
ny Incorporated under the laws of |
cdcut. In May. 1889 has an author
capital of Sl0,0O0.O00 half common
and half preferred. It acquired |
y-two. of the largest fertilizinB con-
q American Bicycle Company. incor-
ted In May, 1888. in New Jersey. with |
1900 of common stock and $4,000 600 |
erred, consolidated forty-four of the !
Vest bicycle concerns in the United
The American Hide and Leather Com
pay, incorporated in New Jersey in May,
1893, with an authorized capital of $685.
100000, half common stock and half pre-
ferred, controls about seYeny-five per cent |
of the upper leather output of the coun-
try.
The American Linseed OIL Company, in
corporated in New Jersey in December, |
1bSS, with capital stock of S33, 500, 900, |
half common stock and half preferred.
consolidated eleven large unseed oil com
panies, and controls over eighty-fivs per
cent OF the linseed oil properties In the |
United States.
corporated In New Jersey In April, 1893, |
consolidated nine large steel and iron |
companies in Ohio and Pennsylvania |
capital stock S1s,ooO,oo0 common. and Sl4.
10000 preferred.
The American Ship Building Company.
incorporated In New Jersey in March,
1899, with an 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, 1899
with S60Oo0.Ooo, common stock. and $40,-
600. 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, 1883 with
a capital stock of S12,0o0,o00, half com