The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-12-07
BIG EARNINGS OF COMPANY
PROFITS ALL GO TO A LIMITED NUM-
BER OF STOCKHOLDERS.
New Leases Made with All the Thresh-
er Manufacturing Companies-Bus-
iness Done ON Royalty.

ton with the advance In the bidding on
the stock of the Indiana Manufacturing
Company. Three weeks ago this stock was
bid on the Stock Exchange at 80. Now IL
is at par. The best sale offer is l20. These
figures form the basis of narrative that
is enlightening as to this stock and its
history.
The Indiana Manufacturing Company be-
gan in the inventive genius OF James Bu-
chanan, of this city. Buchanan was known
as a stump speaker in the days OF the
Greenback part and an attorney of much
ability. Fifteen years ago he was attract
ed to the use Of pneumatic appliances and
resolved TO apply them TO threshing ma
chimes. The old practice of forxing straw
as ii came from the meshes he superseded
with a pneumatic strawstacker. His pat
ent was attractive TO the cereal industry
from the start. 1t was a positive economy
and accelerated the work of threshing
The idea was simple enough after it was
patented, like most such inventions.
The result of this invention was the or
ganization of the Indiana Manufacturing
Company by A. A. McKain. ]. X. Sharpe
and others. The device was in instant de-
mand after the company organized. The
company first manufactured its stackers I'm
this city, first at w. b. Barry's saw works
and later at the Snker-Davis factory In
1895 negotiations were opened for the ssie
of its use under contracts for royalty.
This was specially advantageous 10 the
company, because IL relieved Ii of the dam
ger of fiuctuating values in material. la
Dor difficulties and the thousand little
difficulties that attend any large manu-
featuring industry. To protect them
selves and their patrons they adopted q
uniform contract which required the COM
panies contracting to use the device so
long as its letters patent, or for any i'm
provement upon the device, remained IN
force.
FIRST CAPITALIZATION.
The company was first capitalized I'm Indi-
ana for 10000. This was in 1890. TIVE years
later it was reincorporated for S3e0,Oo0 and
its basic patent was procured I'm that year.
Until 1900 ii paid 10 per cent upon its capi-
talization. Before that year. though an
attempt had been made to put IL on the
tax duplicates of Marion county for the full
amount OF its capitalization although the
tangible property of the company consisted
only in Office furniture and the letters pat
ent which ii had obtained The company
resisted this with an injunction suit. which
is still IN the courts. II contended that the
State had right to tax letters patent
as they were a government franchise.
In 1900 the company reincorporated in
West Virginia for 81 500, 900 and is now the
Indiana Manufacturing Company of West
Virginia. The suit pending is against the
Indiana Manufacturing Company of In
diana. Since the West Virginia incorpora-
ton the company has paid per cent. divi-
dends on its capital stock.
Those interested in local securities have
been wondering what the rapid rise in this
stock meant From their viewpoint t
seemed illogical. 1t was known that the re-
incorporation In West Virginia brought no
stock on the market as IL was prorated
amongst the former stockholders. IL. was
also Logical ,h that the ,n1 nsareF % the company
patents the less valuable its stock should
become.
Some guessed that the thresher trust. on
which President McKain is said 10 have
been working for three years or more, was
of probable contamination and that this
meant the absorption Of the Indiana CON-
pany. thus inuring to the value OF its
stock and holdings. Others figured that
the company was buying TO retire large
portion Of it's capitalization. Still others
figured that the stockholders. recognizing
the nearness to the end OF the patent had
pooled their stock-a common prsctice-ard
were playing game to unload Any one
of these motives seemed reasonable, but
no one could be depended on. Stock men
could not reconcile themselves TO the ap-
parent par value OF the million and half
payer while its patents were I'm force. 1t
was figured that the patents had but sew
en- years yet dating the patent from 1890.
TO run. Wherefore. then. was there basis
| for appreciation they asked.
RECENTLY ACQUIRED PATENTS.
A careful investigation Of the affairs OF
the Indiana Manufacturing Company dis
closes much that may or may not be the
basis for this appreciation. The most i'm
portant evidence is the fact that the COM
pany has acquired the patents of william
Edward, OF Kansas, on the devices con-
trolling the oscillation of the funnel and it's
telescoping character. Edward made his
application for this patent in 1892 He
! fought 1t through the Patent ONCE and the
| courts. finally procuring his title TO IL ir
January last After his victory the Indiana
Manufacturing Company entered into ne
| gotiations with him for It's purchase. IL
| Is said that the company paid him 500 90
! i'm cash for Il. receiving fun title 10 his
| letters.
| 1902 and II is from this date that the sew
| enteen years OF the life OF the pneumatic
strawstacker Is dated by the company. as
the patent is dominant Not only this.
! the company has seventy Improvement
! natents acquired every few months and
| some OF these are as late December.
! 1902 The pneumatic stacker Is a different
| instrument from what IL was ten years
| ago IL has been improved constantly
! The company has acquired every improve
I ment patented. With the reissue OF the
! dominant patent last August the company.
! IL is related is made secure from any dis
aster immiSent at the expiration of its
| basic (the Buchanan patent. and that II n
safe for period OF seventeen years
/ Inquiry TO the further business OF
/ the company discloses that II assigns to
thresher manufacturers the right TO con-
! struct and use the pneumatic straw
stacker aoon payment Of a royalty OF -