Washington standard. [volume] (Olympia, Wash. Territory) 1860-1921, 1900-10-12

chip of not Joss thar ;wo-ihirds OF their
stock. a Tray be found prActicahl"
it'n follow 10 names q I've pump corn
fr.."s. ACCOMPANIED 10y tn" statement
'ht' these COM aii:"s are estimated TO
'"a"sa"t ninety per c""t Of The steam
PUMP business Of tH" tinted States. eS-
"'"Si.e OF hisG-Gu'y engines. The TIA
''r'E or the companies also manufacture
Sl'H engines.
samp~ Case OF Jrnsts.
ono Of the companies. taken into the
coordination had assets estimated at
hfiie more than siN million dollars: an
Other company had assets estimated n
Hitie more tlIn threr millions: the third
company hal ASSETS estimated az LITTLE
more than ON" million. Th.. fourth COM
rarV had assets estimated a. eight hum
!r"d thousand dollars. and the NTH COM
IanY had assets estimated at seven hun
red thousand dollars The good Will was
rot estimated I'm the above figures. The
'"tal asse,S therefore. Of the Ave com
ranieS, not including the good Will. were
less than twelve million dollars. and tn"
prospectus states that the combined net
profits OF the five concerns for the year
lA:S estima ted on the business OF ten
months OF the wear. would amount 10
twelve hundred thousand dollars. Under
the head OF ESTIMATED additional earn
!nfs from consolidation" / !!nd the fol-
lowing:
Zach OF the FIVE companies now main
tnir& agencies in the principal cities OF
the United States. The Worthiugton and
Blake companies have stores. and carry
stock in London. Hamburg Vienna. and
other cities. Some of them have eXpen-
sive salaried managers. Ali these agen
lies 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.
and decreased. involving an estimated
saving OF at least Ss00.G00 year. The
expenses Of zach company for rs ORA ucht-
Ing department. incident to tho elaborate
drawings. and specifications for estimat-
Ing of work, Will bring about further
reduction. The standardizing of the pa
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 I'm an
estimated saving OF DIT least 500 GOV per
yNr"
And then follows in black type this sig
niacant statement:
Advantages of CnnsoII Ida tion.
"A conservative estimate OF tho ad-
vantages derived from consolidation is
believed to be- 81. so 100 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 s.. 500 .0ou. of per cent
on the preferred stock. and over eleven
per cent on the common stock OF the
new COMPANY
1t will thus he seen from the pro.pectus
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
fro h.
men. from the newspapers. and from
others who suffer by the discharge OF
travelling statesmen. clerks. etc, will all
he added to the profits OF the monopoly.
The stock was to he watered, and prices
maintained to pay dividends upon hcti-
Ious 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
Will not raise prices? Is II not human
nature to make all the profit possible out
OF a monopoly? Is Ii 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
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 TN
vestment Guide" and issued in 1900. by
Henry Clews & Co. bankers. I find a list
OF large corporations. together with q
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. 1889 has AN author
lied capital OF si0.000.GO. half common
stock, and half preferred. II acquired
twenty-five of the largest fertilizing con-
Germs In the country.
The American Bicycle Company, incor-
porated in May. 1899. in New Jersey. with
$50. 000 OF common stock and Sl0. 0o0. 001
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
000. COO. hale common stock and half pre-
terTed. controls about seveny five per cent
of the upper leather output OF the coun-
try.
The American Linseed OIL Company, in
corporated II New Jersey in December
1898. with a capital stock of $50. 800, 90O
half common stock and half preferred.
consolidated eleven large linseed oil com
panies, and controls over eighty-five per
cent of the inseed oil properties In the
United States.
The American Steel Hoop Company. in
corporated Ia New Jersey in April. 1889.
consolidated nine large steel and iron
companies in Ohio and Pennsylvania,
capital stock $l9. 900 600 common. and Sl4.-
coz. coo preferred.
The American Ship Building Company
Incorporated in New Jersey in March.
1899. with an authorized capital of $780,
O0G, O0o 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 i'll January. 1899.
with $50, 600 900. common stock. and $780,
coo 600 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. 1898. with
q capital stock of si2.0oo.o00. half COM
mon and half preferred. consolidated
fourteen large thread companies in New
York and New England.
American Tin Plate Company, tncor-
porated in New Jersey In December. 1893.