Evening star. [volume] (Washington, D.C.) 1854-1972, 1901-04-11
THE SALT INDUS TRY
Mr.. WHITE TESTIFIES BEFORE THE
INDUSTRIAL COMMISSION.
Extent of Production and Consump-
ton In This Country-General
Talk on Trusts.


the industrial commission at the Bliss
building and talked about the salt industry
| in this country. He recited the various
| locations in the United States in which
rock salt beds are found. and remarked
that in New York state alone there is
enough salt to supply the world for
| million years.
The consumption of evaporated and
| mined salt in the United States is 13.OOo,0O0
barrels year, of which the National Salt
Company produced between eight and nine
millions. The National Salt Company was
first organized on a basis Of paying pre-
ferred stock to the amount of tangible
assets and common stock to an amount
equal to five times much as the net
profit of the establishments taken in the
organization. Later plants were bought
as best they could. They combined thirty
six plants in their organization, Of which
number they have shut down six. The aim
of the company is to get as near the CON
sumner as possible and to eliminate middle
men wherever they can. Before the com
bination was effected salt was sold In
markets long distant from points of pro-
duction, and frequently the freight charges
We're greater than the value of the salt at
the wells. The combination had arranged
to supply markets from the sources OF pro-
duction near them and so a great saving
was secured The various plants are man
aged separately, and managers are ambi-
llOuS TO excel III luelE TecDiu5 lOI
and economical mana cement. Previously
competition had resulted in the production
of cheap and inferior goods. while the COM
bination had necessarily introduced sys-
tenn in manufacture the highest grade OF
goods.
Reduction In Price.
In 1866, in Michigan. salt sold for $50
barrel at the salt well, and in 1880 1t aver
aged in price Al cents. Five years ago
wages were from 20 to so per cent lower
than they are today, the National Salt
Company being formed March 18, 1899. They
had never had strike.
The National Salt Company had paid Z
per cent on Its preferred stock since Its
organization and per cent on Its common
stock since one year after organization.
Last year the earnings of the company
were 81 ,267, $50.
was that stock paying so much interest sells
for SO low a price on the stock market. The
witness replied that that was a Wall street
problem of which he did not know.
Mr.. White explained that 1t costs 30 per
cent more to place American-made salt at
seaboard cities than 1t does to place Eng
lish-made salt at the same place. The
tariff of $3.50 a ton largely overcOmes that
difference in freight rates. The fact Is, he
said salt at points of production in this
country is cheaper than 1t is In England
at points of production. although wages
are higher here than in England. Salt Is
from England it being brought here as
ballast; otherwise it could not be handled
at such rate. In this country the finest
and the commonest salt is made, and the
effort of the National Salt Company Is to
have the finest salt made For the first
time in the history of this country during
the past year salt had been exported. Last
evening he had received information of
the shipment of q cargo of salt from San
Francisco to Japan.
On Trusts Generally,
Speaking of trusts generally, Mr.. White
said, while the word trust had been used
odiousiy. 1t was really to be considered in
a very different way. While trusts had
not been organized for philanthropic pur-
poses, he believed they would become the
great instruments for the conservation of
labor and capital and to stop waste and
extravaganza. The idea that trusts con-
centrate wealth in the hands of a few was
erroneous, he said. The list of stockhold-
ers Of the National Salt Company shows
the distribution of stock of his company
to be an average of fifty-two shares to each
stakeholder. and at the present market val
ue fifty-two shares are worth SS.1OO. There
are over 400 stockholders In the COM
pany. From 20 to 30 per cent of the stock
is In the hands OF the board Of directors.
There had been an increase In the price
of salt recently because of an advance of
60 per cent for cooperage, advance In prices
Of transportation, coal and labor. This fact
was brought out by question by Commits
sioner Harris In addition to these causes
for increases in price the witness said:
II suppose. too, like good many others.
we are getting little bit off the top just
now"
Mr.. Harris might take the stand and
tell US how much more he is getting for
his wheat, now. than formerly" suggested
Commissioner Clarke.
II get less than did ten years ago. he
said.
But you don't compare the price with
the right time retorted MIR. Clarke.
Mr.. White said that the package of table
salt generally retaiied for 5 cents a year
or so ago was sold by the trust to the
retail dealer for cents. Now the cost of
manufacture had been increased that
the package is now sold to the retail dealer
for 2 81 cents, the retailer still selling it
for cents.
The witness believed in publicity in the
affairs of trusts, and In the case of his
own company he said they make very full
report of their affairs. He thought pub
licity was good thing to allay suspicion of
any kind.