Spirit of Jefferson. [volume] (Charles Town, Va. [W. Va.]) 1844-1948, 1900-08-14

panleS, accompanied by the statement
that these companies are estimated to
transact ninety per cent of the steam
pump business of the United States, e1-
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 a
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 hun
! dred thousand dollars, and the fifth COM
pany had assets estimated al seven hum
cred thousand dollars. The goodwill was
not estimated in the above figures The
total assets therefore, of the five COM
pantes, not including the good will. were
less than twelve million dollars. and the
I prospectus states that the combined net
/ profits of the five concerns for the year
! 1928. estimated on the business of ten
mcnths OF the year, would amount to
twelve hundred thousand dollars. Under
the head of ESTIMATED additional earn
/ ings from consolidation find the fol-
I 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-
/ Giles 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 a year. The
expenses of each company for its draugflt-
ing department, incident to the elaborate
drawings, and specifications for estimat-
ing of work, viii bring about further
reduction. The standardizing of the pat
terms for farm and domestic work, which
is now under way in the Worthlngton fac
tory. when applied to the entire business
OF the new company. will result in an
estimated saving of at least $500, 900 per
year
And then follows in black type this sig
nihcant statement:
Advantages of Consolidation.
"A conservative estimate of the adj
vantages derived from consolidation is
believed to be $1.S00.00O over the present
earnings, which would make total of
future net earnings with the estimated
earnings based on ten months of the
years business of $1,000, Co., 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
tlng 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 hcti-
tious capital.
To give further guarantee that the
monopoly, the prospectus says that the
principal men connected with the various
mi FNfn
the company and would contract not to
engage in like business for ten years
But what about the public2 What guar
antee has the public that this monopoly
Will not raise prices? Is it not human
nature to make all the profit possible out
of a monopoly? Is 1t not reasonable to
expect that the monopoly. after elinin-
ating the statesmen, and adding their sal
aries, and expenses to the profit account.
Will seek a further profit by raising prices
and lowering wages2 Is It not reason
able also to expect that there Will be de-
tertoration 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 SIN
vestment Guide" and issued in 1900, by
Henry Clews & Co.. bankers. find a 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 a few of the
corporations organized since the last
Presidential election;
Trusts Formed Under mckinley.
&c American Agricultural Chemical
ny Incorporated under the laws of
lcucut, in May. 1888. has an author
capital of S4o,00o00o, half common
and half preferred. It acquired
y-two of the largest fertilizinE con-
in the country.
q American Bicycle Company, incor-
ted in May, 1888. in New Jersey. with
1900 of common stock and S10,0O0000
erred, consolidated forty-four of the
States.
The American Hide and Leather Com
pay, incorporated in New Jersey in May.
1889, with an authorized capital of $685.
COX. COO. 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,
1898. with capital stock of SSS, 500 900,
half common stock and half preferred,
consolidated eleven large lInseed oil com
panies, and controls over eighty-fivs per
cent of the linssed oil properties in the
United States.
The American Steel Hoop Company. In
corporated. in New Jersey In April. 1893.
consolidated nine large steel and iron
companies in Ohio and Pennsylvania,
capital stock $4,000 600 common, and S14,-
600 600 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 ''an ship building,
and kindred interests on the great lakes"
American Steel and Wire Company, in
corporated In New Jersey in January, 1883.
with S50,O0o,O0O, common stock. and $4O,-
900, 600 preferred. controls about eighty per
cent of the nail and wire product of the
United States.
porated In New Jersey in March, 1888 with
a capital stock of S12,000.O00. half com
mon and half preferred, consolidated