Kansas agitator. [volume] (Garnett, Kan.) 1890-1905, 1900-09-28

ership of not less than two-thirds of their
stock, as may be found practlcapie'
Then 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-
elusive of high-duty engines. The ma
jorlty 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 a little
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
panies. 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
1928, estimked on the business of ten
months of the year. would amount to
twelve hundred thousand dollars. Under
the head of ESTIMATED additional earn
ings 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 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 100000 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 n 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 $2OO,Oo0 per
year"
And then follows in black type this sig
nificant statement:
Advantages of Con sol!dation.
"a conservative estimate of the adj
vantages derived from consolidation is
believed to be $1,3O0.C00 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 s2500.000, 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
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 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 a 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 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
G, 70 hnp find n 1iSt
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 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
ized capital of $40,000000, half common
stock. and half preferred 1t acquired
twenty-five of the largest fertilizing con-
Germs in the country.
The American Bicycle Company, incor-
porated in May, 1889, in New Jersey, with
$40 coo 900 of common stock and S1O,OOO,OOO
preferred, consolidated forty-four of the
largest bicycle concerns III tHe Unlteu
States.
The American Hide and Leather Com
nav, incorporated in New Jersey in May,
1899, with an authorized capital of $685.
600 COO, hale common stock and half pre-
ferred, controls about sevenyfive per cent
of the upper leather output of the coun-
try.
The American Llnseed Oil Company, in
corporated in New Jersey in December,
1928. with a capital stock of s3S, 900,
half common stock and half preferred.
consolidated eleven large linseed oil com
panies. and controls over eightyfive 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 $190O0,000 common, and S14.-
COO 900 preferred.
The American Ship Building Company,
Incorporated in New Jersey in March,
1899. with an authorized capital of $780,
900 O00 half common stock. and half pre-
ferred consolidated "all ship building,
and kindred interests on the great lakes"
American Steel and Wire Company, in
oorporated in New Jersey in January, 1899,
with 50OOO,00O, common stock, and $780,
600 900 preferred. controls about eighty per
cent of the nail and wire product of the
United States.
The American Thread Company, incor-
L..