The Ohio Democrat. (Logan, O. [Ohio]) 1886-1906, 1900-09-27

ncsses of such companies, or by the own
ership of not less than two-thlrds OF their
stock, as may be found practicable.
Ihen follow the names of five pump com
panies accompanied by the statement
that these companies are estimated 10
transact ninety per cent of the steam
pump business of the United States. ex-
ciusive of high-duty engines. The ma
1ority of the companies also manufacture
such engines.
Sample Case of Trusts.
One OF the companies, taken Into the
compination had assets estimated at u
little more than six million dollars; an
other company had assets estimated at a
httle more than three millions, the tnlru
company had assets estimated at little
more than one million. The fourth COM
pany mad assets estimated at eight nun
ured thousand dollars, and the hfth COM
pany mad assets estimated at seven nun
dred thousand dollars. The good VIII was
not estimated in the above figures. The
total assets, therefore, of the five COM
panies, not including the good WILL were
iess tnan twelve million dollars ana tne
prospectus states that the combined net
prohts of the five concerns for the year
lssS, 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:
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 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 $50O,000 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
| nificant statement:
Advantages of Consolidation.
"a conservative estimate of the ad
vantages derived from consolidation is
believed to be $l,300,000 over the present
earnings, which would make a total of
future not earnings, with the estimated
earnings based on ten months of the
years business of S2,5O0000, of per cent
on the preferred stool. 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 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
be added to the profits of the monopoly.
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 like business fer ten years
But what about the public? What guar
antee has the public that this monopoly
will not raise prices? Is 1T not human
nature to make all the profit possible out
of monopoly? Is 1t not reasonable to
expect that the monopoly, after elimin-
ating the statesmen, and adding their SAL
aries, and expenses to the profit account,
will seek further profit by raising prices,
and lowering wages? Is it 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 little book described as an TN
vestment Guide" and issued in 1900, by
Henry Clews & Co., bankers, find a list
of large corporations, together with
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
izeG capital of $4OOO0,OOO, half common
stock, and half preferred. 1t acquired
twenty-five of the largest fertiizing con-
Germs in the country.
The American Bicycle Company, incor-
porated in May, 1899, in New Jersey, with
$50, 100000 of common stock and 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,
100000, half common stock and half pre-
| ferred controls about seveny-five per cent
of the upper leather output of the coun-
| try.
The American Linseed Oil Company, in
| corporated in New Jersey in December,
| 1898, with a capital stock of S33, 500, 900,
| half common stock and half preferred.
consolidated eleven large lnseed oil com
| panies, and controls over eighty-five per
cent of the linseed oil properties in the
| United States.
| The American Steel Hoop Company, in
| corporated in New Jersey in April, 1899,
| consolidated nine large steel and iron
companies in Ohio and Pennsylvania,
capital stock 900 common, and s14.-
100000 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, 1S99
with S500O0,0Oo, common stock, and $4O,-
600, coo 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, 1888, with
a capital stock of S12,OO0,0O0, half COM
mon and half preferred. consolidated
fourteen large thread companies in New
al a.,1 I1.asr al