Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1902-01-03
FUTURE Of ASPHALT
Troubles OF the Trust Not Likely
to Reduce Price Of
Paving.
Minor Companies of the Com.
bine Not Likely to Effect
a Consolidation.
~
Causes of the Financial Troubles
of the Trust-.Independent
Competition.

companies of the trust were neither
grieved nor surprised when that corpor-
alton was put into the hands of a re-
ceiver. Nc ore looks for a reduction in
the price of asphalt, even tho the trust
supposed to have a practical monopoly
of the paving business of the country
various subsidiary companies will con-
tinue to act under some form Of prf-
vate compact or agreement. No one APP
pears to believe that a new trust will
be organized. An officer OF n of the
prominent Independent companies ex-
planned:
Il don't believe any of the minor
companies Of the trust will go into an
other consolidation plan openly They
will apparently carry on their business
independently, but l would not be as
tonished to learn that some sort of an
agreement was made to prevent under
bidding and the lowering, as far as
possible, of the prices on street paw
ing"
Hugo Reid and the other experts dis
charged by the National Asphalt Com
pan when the Barber Company and
the Asphalt Company Of America was
absorbed, may have been contributing
causes in the downfall Of the trust. 1t
is learned that Reid was on the payrolls
Of the Barber company at a good sal
airy, with a three-year contract. Other
experts were employed In various sec
lions of the country. When the Nation
al Asphalt Company assumed para
mountcy it was decided to discharge
these men. They got their discharges
last February.
Reid, who is an aggressive person and
a good business mar at C began to
fight the truet He went, 1t is said, to
Warner, the big Syracuse malster and
head of the Warner Quinlan Company,
and secured his assistance in getting
some asphalt beds in Trinidad. So,
since kis discharge Reid has been a
thorn in the side Of the trust. He has
fought it in court and out. 1t is de-
clared by men in the asphalt business
that Reid is responsible for driving the
trust out of various cities. Gen. Fran
els. V, Greene Of the Barber Company
was asked If Reid hao not caused the
trust to lose many good contracts since
his dismissal. He responded: II do not
care to discuss him. / cannot talk about
that" ~
H. Haggerty, secretary of the sic.lian
Asphalt Paving Company, with offices
at No. Al Park Row. observed:
1t is easier to bid on laying asphalt
paving in New York than n other city
in the country. This is because Of the
broad and open specifications in the
contracts. Bidders are hardly restricted
at all. Why, you can put down mud as
paving If you are willing to guarantee
it. The specifications are such that ev.
erybody has a nance to bid"
THE trust since it's formation has
made a determined effort in every city
1t has entered to have the speciflca-
tions for asphalt paving so hedged in
with conditions and restrictions that no
Independent company would have a
chance to obtain a contract. The trust
fought for an absolute monopoly, and
lost. AT least, it lost in New York and
several other large cities. l believe
Hugo Reid led the opposition in some
of the other cities and prevented the
trust from debating what the standard
asphalt paving should be-" +
What turn the insolvency OF the as
phalt trust will give to the asphalt
business generally is yet ptoblematical.
But men in the business outside the
trust, as shown above, are skeptical as
to any real change. This is the trust
situation as discussed by the court pro-
ceedings Saturday and which the Audit
Company is investigating. Two propri-
etary companies, the National Asphalt
and the Asphalt Of America, are hold
ing the stocks Of subsidiary operating
collecting dividends when
paid and distributing them to their Sc
curity holders. Only the operating COM
panies lay or sell asphalt. And the
of these operating companies
are not sufficiently large to meet In full
the fixed charge OF the W. proprietary
companies, and in order to preserve the
property intact the protective commit
tees who now represent the majority OF
the security OF both companies, decided
that suits should be brought and the APP
Of receivers asked for, and
to these suits no opposition was made.
The Land Title and Trust Company
of Philadelphia, trustees for the secur-
tty of the $50. 900, 600 issue OF gold GER
t~ificates Of the Asphalt Company OF
America. and the committee consisting
of Messrs. w. F. Harrity, r. II. lush
ton and A. w. sewall, representing
more than a majority OF the $4,000. 900
of gold certificates and OF the pre-
and common stocks Of the Ma
tional Asphalt Company, on Saturday
filed bills of complaint in the United
circuit court of the district OF
New Jersey, and Judge Andrew Kirk
patrick, sitting as circuit judge, ap-
pointed as receivers of both companies
Messrs. Henry Tatnall, John M. Mack
and John F. Stanley. This proceeding
applies only to the above named propri-
cary companies and does not interfere
with the regular transaction Of the bus
mess of subsidiary companies. When
the auditing Is completed and the fig
ures are submitted to the committee, 1t
will be possible for them to consider and
a plan for readjusting the
securities of the proprietary companies
a safe and prudent basis. The audit
announced for Jan. 15 is not ex-
pected before Feb. l..
In brief. from the papers submitted
in the application for the receivership 1t
that the trust is confronted
as 1t stands with no better prospect
than thai OF an annual deficit Of about
81, 500, 900. 1t stands pledged to pay
annually 50, 500 900 In interest and sink