The Iola register. [volume] (Iola, Allen County, Kansas) 1875-1902, 1901-09-27


is an absolutely essential factor in the
steel combine and whether it was taken
in at the time of the formation, or has
since been or may be acquired the
United States Steel Corporation must
take cognizance of zinc in it's various
forms as part and parcel of so great
an undertaking. Thus the Standard
Oil Company, as the power behindsthe
Lanyon Zinc Company, which brought
the old Illinois companies to terms,
and the United States Steel Corpora
tion in position to acquire the Edgar
Zinc Company, there is brought to
public attention for the first time the
relationships that really exist in zinc
smelling circles. How easy for these
two great companies to make salts
factory arrangement for the control
of zinc, thus forming an impTegnable
combine, holding as they do almost
every avenue of usefulness for zinc.
The little fellows will naturally be
only too glad to get in on any favor
able terms. There is nothing else for
them to do.
1t was casually noted above that the
Cherokee-Lanyon Spelter Company
was formed under conditions that
speedily became.not only unfortunate
but disastrous to the incipient com
bine. b. f. Hobart of st. Louis and
Barney Hauel, smelterman, were the
leading spirits in the formation of
that combine and for a while they had
smooth sailing, taking the open mar
ket, fair metal price and cheap ore.
But it was not long before the Mat
thiessen g. Hegeler Company opened
broadside of batteries against the
assumption of control of the spelter
market that seemed to permeate from
the existence of the combine. The
Cherokee-Lanyon wanted to keep zinc
ore stationary at $25 nomore, no less,
and made 0vertures to othersto estab-
fish such rating. The answer of the
Matthiessen & Hegeler Company was
the dumping of spelter on the market,
a downward shoot in metal and a con-
Trajectory increase in ore prices. The
results were unmistakable. The new
combine was known TO weaken, and
then it bonded its coal plants for $780,
600, increased its capital stock and
began talking of putting in zinc rolling
mills. But it was unnecessary for
the Matthiessen IL Hegeler Company
to again direct its guns at the Chero-
ee-Lanyons. The Lanyon Zinc
Company, after absorbing the Robert
LANNON'S Sons Company, became ag-
gressive. The Matthiessen * Hegeler
Company was brought into this, as
has previously been described, with
the accompanying results. The Cher
okee-Lanyon Spelter Company dropped
quickly from its position as an active
factor away down to small potatoes
and few in the hill. There was a
collapse and a reorganization. The
new company secured gas land, with
| A. b. Cockerill at the head, and is
doing u modestly successful business
at present.
Joseph p. Cappeau, who is credited
with being figure in the plan to com
bine all the spoilers of zinc in the
country and who is in St. Louis, en-
tiers general and specific denial of
the report that he is identified with
the movement. In fact, Mr.. Cappeau
denies emphatically that he has any
thing whatever to do with any such
scheme. He says that he, about a
year and a half ago, succeeded in get
ting the Lanyon interests together,
but beyond that had not succeeded in
forming anything like combination.
An official of one of the largest smelt-
ing companies in Missouri said this
week that his company had been APP
preached by Mr.. Cappeau and others
with reference to a combination. Ten
minutes later Cappeau denied that he
had approached any one on the SUBJ
ject.
Mr.. Cappeau said he had nothing
whatever to say about the reported
combination of shelters, further than
to deny any connection with it. He
was sure however, that j. Pierpont
Morgan's name had been wrongfully
used when it was stated in the dis
patches that that financier was behind
the consolidation scheme. Last July
C. S. Leeds, of Chicago, was in this
city and in the Joplin mining district
working on a consolidation scheme
and is understood to have intimated
that Mr.. Morgan was behind it. In
June or July a gentleman named
Rutan, of New York, went over the
same field on the same mission, and is
understood to have openly stated that
j. Pierpont Morgan was backing him.
Both of these promoters disappeared
after spending a few days here and
nothing more has been heard of or