Little Falls herald., 1900-09-28

nesses OF such companies, or by the own
stock. as may be found practicable" !"
Then follow the names of five pump COM
pantcs, 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
1ority of the companies also manufacture
such engines.
Sample Case of Trusts.
One of the companies, taken into the
com bination had assets estimated at
little more than six million dollars; an
other company had assets estimated at
little more than three millions: the thlro
company had assets estimated at a httle
more than one million. The fourth COM
pany had assets estimated at eight num-
dred thousand dollars, and the fifth COM
Pany had assets estimated at seven nun
dred thousand dollars. The good WILL was
not estimated in the above figures. The
total assets. therefore, of the five COM
pan1es, 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
1873, estimated on the business OF ten
months of the year, would amount to
twelve hundred thousand dollars. Under
the head of Estimated additional earn
1ngs from consolidation find the FOL-
lowing:
Each Of the five companies now main
tains agencies in the principal cities OF
Blake companies have stores. and carry
stock In London. Hamburg, Vienna, and
other cities Some of them have expen-
s1ve salar1ed 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 s500,000 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
or the new company, will result In an
estimated saving of at least 100000 per
year."
And then follows in black type this Sig
nifcant statement: ,.
Advantages Of Consolidation.
"A conservative estimate of the ad-
vantages derived from consolidation Is
believed to be s., 100000 over the present
future net earnings. with the estimated
earnings based on ten months Of the
years business Of 81. .5G0, 900, of per cent
on the preferred stock, and over eleven
per cent on the common stock OF the
new company"
that the advantages secured by the cut
ting down of expenses, will double the in
come. and not a 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 flcti-
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 public? What guar
antee has the public that this monopoly
nature to make all the profit possible out
Of monopoly? Is it 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 1t 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 a little book described as an ''In-
vestment Guide and issued in 1900, by
Henry Clews & Co., bankers, find a list
aF 1or vuff
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
Connecticut, in May, 1899. has an author
lied capital of $4O,000,0e0, half common
stock. and half preferred. It acquired
twenty-five Of the largest fertilizing con-
Germs in the country.
The American Bicycle Company. 1ncor-
pora ted in May, 1899. in New Jersey, with
$50. 900 Of common stock and $4,000, 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,
1899, with an authorized capital of $685.
600, COO. half common stock and half pre-
ferred, controls about seveny-flve per cent
of the upper leather output of the coun-
try.
The American Linseed Oil Company, in
corporated in New Jersey in December,
1893, with capital stock Of $685. SOC, 900,
half common stock and half preferred.
consolidated eleven large linseed oil com
panies, and controls over eighty-flve per
cent of the lnseed 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 $19,00o.0 900 common. and $14.-
COO. 600 preferred.
The American Ship Building Company,
incorporated in New Jersey In March.
1S99 with an authorized capital of $780,
0Oo, 600. 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 $5O,0O0000, common stock, and Ao,-
600. 900 preferred, controls about eighty per
cent of the nail and wire product Of the
United States.
The American Thread Company. incor-