The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1901-05-22
THELINSEED MERGER
President Major of the American
Company Tells About 1t.
CALLINGS INTIMATELY ALLIED
He Thinks White Lead and Oil Bust
ness Cannot Well Be
Separated.

Special to The Journal
New York, May 22.-Regarding the pro-
posed merger of the American Linseed
company in the Union Lead and Oil COM
pany, President Guy G. Major of the first
named company, said to-day he had no
doubt the necessary two-thirds of the
stock Of his company We d be deposited
before June in exchange DR. the stock of
the Union Lead and Oil company. He
added;
Our stockholders perfectly understand the
reasons that have impelled- us to make this
recommendation, and they can easily see
that it is greatly to their advantage. When
our company was organized, a little more
than three years ago, we expected to do a
business of about ten or twelve million dol
lars year. We had $5,OOO,0OO OF working
capital, but at the end of the first year we
found that the business amounted to about
500, 200, 900. 1t had been profitable enough,
and there was evident room for expansion,
but the supply of flaxseed was seriously de-
fcient, the price went to a high figure, and
it was necessary to double our working cap
ital. Besides, we had to rebuild several
mills and increase our elevator service and
tank equipment.
We were enabled to do this by making a
loaz on fairly favorable terms, but at the
same time the new Bailey-Dutch process of
manufacturing white lead was brought to
perfection. I saw at once that it meant
revolution in the white lead business and
there was no way to obtain results for our
oil business without going into the white
lead field, and by so doing, to combine, with
material increase of cost, our own selling
facilities with those of white lead compa-
n.y. This meant call for vastly increased
capital
Meanwhile the Union Lead and Oil COM
pany had been organized and had acquired
important mining properties. A combina-
ton of interests was suggested under con-
ditions which gave US the advantage of the
new process, enabled US to expand our bust
ness in the direction indicated and enabled
our stock to earn profits from the manufac-
ture of white lead. The truth is that the
white lead business and the linseed oil busi-
ness are so closely related that it is rash to
go into the one enterprise without the other.
We manufacture our white lead at a cost of
about S. ton under the new process, while
it costs, under any other process, $14 to SIS
a ton. l take it, therefore, that we can sell
our product cheaper than anybody else.
AS to the interests that are behind the
Union Lead and Oil company the only re-
vealed figure in the new concern is Homer
Wise, the president. He was asked to-day
to say what financial interests were be-
hind him, and he replied:
I am not prepared to say whether this
company is backed by Standard Oil people
or the Whitney-Ryan party. We have organ
lied and the directorate is very strong, but
to make it public would betray what we
want to withhold for time
President Wise says the Union Lead
and Oil company intends to build plants,
one here and one each in St. Louis, Chi
cago and Pittsburg. The contemplated
total capacity is $4,000 tons a year, is
about the capacity of the National Lead
company. Mr.. Wise admits that his COM
pany will be an active competitor of the
National Lead company, which controls
about 60 per cent of the paint and lead
output Of the country.