Missouri Valley times. [volume] (Missouri Valley, Iowa) 1874-1931, 1900-09-20

a 4 Al ~
nesses of such companies, or by the own
ership of not less than two-thirds of their
s.ccS, as may be found practicable.
men follow the names of five pump COM
pahles accompanied by the statement
that these companies are estimated to
transact ninety per cent of the steam
punp business of the United States. eN-
eiuslVe of high-duty engines. The ma
.ui!.s OF the companies also manufacture
such engines.
Sample Case of Trusts.
one OF the companies, taken into the
SpH.hlhatlon had assets estimated at
i...e more than six million dollars; an
uthef company had assets estimated at
niue more than three millions; the third
company had assets estimated at a little
more IMAM one million. The fourth COM
PONY nau assets estimated al eight hun-
uieo thousand dollars, and the fifth COM
iahy mad assets estimated at seven hun
urea thousand dollars. The good Will was
not estimated in the above figures. The
.otal assets, therefore, of the five COM
pahles' not including the good will, We're
iess IMAM twelve million dollars. and the
prospectus states that the combined net
l, non OF the five concerns for the year
lsse' estimated on the business of ten
,.oi,lhs OF the year. would amount 10
|
| lhe head of ESTIMATED additional earn
!nSs IRON consolidation / find the fol-
| lowing:
Each of the five companies now main
. u, agencies in the principal cities of
INC ,. United States The Worthington and
oihke companies have stores. and carry
STOCK In London. Hamburg. Vienna, and
o.her cities Some of them have eNpen-
sNe s.alafled managers. All these agen-
cies IN this and other countries will be
consolidated. The stores and agencies
maintained i'm the cities of this country.
ana the forces of clerks. statesmen, ETC..
necessary TO conduct them, will be united
ana decreased, involving estimated
/ SAVING OF ut least 5000 a year. The
| expenses of each company for its t,raught-
lhs department. incident to the elaborate
cravings, and specifications for estimat-
ihs Oh work, will bring about a further
reduction The staadardizing 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 tne new company, will result in an
estimated saving of at least 100000 per
year,
And then follows in black type this sig
hiilcant statements:
Advantages of Consolidation.
"A conservative estimate of the adj
Nantagcs derived from consolidation is
believed to be $l30o,e00 over the present
earnings. which would make a total of
future net earnings. with the estimated
earnings based on ten months of the
years business of s2,50O,OGO of per cent
on the preferred stock. and over eleven
per cent ON the common stock of the
new company."
1T viii 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. IRON 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 he watered, and prices
maintained TO pay dividends upon fcti-
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 like business for 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 Il monopoly? Is it not reasonable TO
expect that the monopoly. after elimin-
ating the statesmen. and adding their sal
aries. and expenses 10 the profit account.
will seek a further profit by raising prices.
and lowering wages? Is it not reason
able also TO expect that there will he de-
teroration in quality when The spur of
competition no longer comi,els The manu-
facturer to furnish the best goods for the
lowest possible price?
In a little book described as an In
vestnlcnt Guide" and issued In 1850 10y
Henry Clews K Co. bankers, find list
of large corporations, together With "a
brief description OF the business done and
advantages secured ny consolidation. In
SEINE Instances an cstlma,e is given of the
output of the company as compared with
the total product in the United States
Let me call your attention to Il 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, 1880. has an author
lied capital of s4o,ocooco, half common
stock. and half preferred 1t acquired
twenty-five of the largest fertilizing con-
Germs in the country.
The American Bicycle Company, incor-
rorated in May 1899. in New Jersey With
$40 oOcO00 of common stock and $1,000, 0vo
preferred, consolidated fort y-four of the
largest bicycle concerns in the United
States
The American Hide and Leather Com
pay, Incorporated in New jersey in MAY
1889, with an authorized capital of $685.,
Q0aG00. halls common stock and half pre-
.cmed, controls about sevcny-tive per cent
of TIE upper leather output of the coun-
try.
The American Linseed Oil Company. in
corporated in New Jersey in December
1888, with capital stock of s33.5o0 800
half COMMON stock and half preferred.
consolidated eleven large linsced oil corn
lnlnies, ana controls over eighty per
cent of the linseed oil properties in the
United States.
the American Steel Hoop Company, in
corporated IN New Jersey in April, 1885.
consolidated nine large steel and iron
companies in Ohio and Pennsylvania
capital stock sl9,0eo,0O0 common. and $ll.-
100000 preferred.
The American Ship Building Company
incorporated in New Jersey in March,
1899. with an authorized capital of $780,
coooo0. half common stock, and half pre-
ferred, consolidated "all ship building.
and kindred interests on the great lakes y
American Steel and Wire Company in
corporatcd in New Jersey in January, 1899.
with so0ooO,000. common stock and $780,
100000 preferred. controls about eighty per
cent of the nail and wire product of the