The sun., 1902-07-06
TROUBLES OF some TRUSTS.
,u>E> Ntki>G RfOR.t>ift-
rFON NFCFS>tRr VOW.
q, ere ,p,t snfs'ien De-'ar~d To Ne the
ualadn In West tssr- Experiences
Ia ,spper. lee, whiskey. AspIsit
outisol. for in,i,is' rial 4 erperatiens


IN. apparent need Of tho Reorganization
a, som. of the associations ~ capital COM
nonI, known "a industrial corporations
has t.-n Impressed on many conservative"
business men nf New York by develop
rnrnt. - tn" past few months. That SONG
hing /. the matter with the undcrI,innIns
n, .~vsral q the trusts IL mad" evident by
ME coilap-r every now and again ~ ono or
Anth.r Il these corporations or by the
turning over of this. that or the other
ON. 10 a reorganization committee.
Prom What the collap-s or tho conditions
found by the organization committees
reveal 1t se-rns ~ bs very apparent that
nnsi q. these corporations have tad at
tsck- of ov.rcapii alization Tn" bright
paf'rular c,ampl" of collapse because
of -sht of capitals the National Asphalt
Company some persons use har-her terms
"a account for the breakdown 81 thus
concern. hut whether such language IL
justified or not, the fact remains that IN"
compAny Wa immensely overcapitaliyed
In other cases where Reorganization has
N..en "rected the ned for the remedial
Asent was duo IN t-Jme INSTANCES tp the
fact that the demand for the product turned
out hy N" failing concerns had materially
DECREASED for some reason or another
In thl. cl,,. must IT, irc.udrd 'he American
Bcycir Company.
This company. although carrying a
h.avy burden of capital - s,O.oco0o all
'uld--d'd no follow IA" SHINING example
~, for IL 10y some utdor corporations ani
uay dividends that had not lTcn earned
When tbs company vas organized IN"
L,cycle fad possessed the world That 1t
wa fad Is demonstrated by ia" fat that
the popularity uf rh. bicycle has dCln"d
wonderfully In th" past two years
But ~her. there has ts-rn one rcorganlza-
ton due to d,Crca~ed demand for the
trodurt of tho corporation finding 't-clf Ia
dificu,ie-, ,her- hav" hccn dozen col
lapscs due SOLELY to overrapitaiiZation
Fa--e.ing men have not leCn greatly SUI
prlsrd al ,hcre corpora" hrrakdowns.
The financial philosophers never forget
that action D., alway- equal To- reaction
and the Wis. nirn IN finance said long ago
that u would take som" uf The concerns
which t-Camn corporate entities shortly
after the first election Z Mckinley much
longer 10 r-utgan,1o than il lid 20 ofgan,zr
During ~" veIr- ls9> and lS9s indus' rial
concerns W." Incorporated faster than
thhhrhs arr NHIh'' ''' O." "h ''u"@''''
'omrlnes f'r ~" mhnHa''NI" Z" any
'hius from l'"'h"ii~ y" hN ayr N''' '"'h .
hn"d. "a" combination 'n'"rr't"'"' ana
rs stock iump"i nH ~" narAn'
The pr sicIl'F ''-' wa "HIkluk u "'mN'
hody's bonnet avi T. va~ 'aScn 'pr granted
THAT anything that seemed - hay" The
,,,,,hu,.. -, ,,,,., h,l rc,I,r, I'm, ,rn
ti
"o'- VI ''' 'h''S'' " ''" '''" u ''''N
y ha- '-'u ~''H nav move ""tp"r''"
were foatci N 'h' ~ twu wears than iu any
five wears b.furr or -iur, in no history
~ ,ho ,-,u,,,,y Pm. my ,,, ,,,, 80, Ia
-, -. -. - - >,
ul"' "n '"N cam" ~ 'h''N A''' - 'a-'
during 'ha' f"ri"d 'hni ~" conservative"
hnan"ler- f~gan D." snaN" tf"l- h'sds, 1ri
many - ih.rl Varn,l flr,r f-fcrdsayaig,'
IN. s,.,-,t,a. ~, ,,,.,.. ,-,,,,y I.,,.t w.
.....,...- =, -,
wv u
"h''r i"hg I"7'"." N'' ne '"r'h'''"-
of stock and that 'h"r" would y" migr'v v
slop over hY and hy and snnetn,Iv would
.., d,,,,,sJ
- 81, ., -, ~. ,..,
Wv '""''' N'' wv III ""N I''S' N"@
'aIkIng sh"i' - n' '"'.r' hi~ death about
the Wall Street situation u. spnk" -
the spidsnir ~ curpDyati,u fr,rT. ~ IA.
r,Ii.,,, !, ,,J ,h., a.lI.,
." "'''' wv" "'"'''
NhN' N"n '"h ~" N'U'" h"s down
iher" nov
The Governor know What he was taking
ah,u, I, ua- ,s.,ll,. ., ..u ,..lI,S H..
"a ,..u,,,,..,., -, ~, -, 49, -
w va '''' "' '"V~ "AN =
'"' 'h'''- "''" "''fN'' ""Nh 'h"t" tof
Them now
Those who shnui know Sy that 'ho
fes'iN" promoter hs~ fallen upon lcau
days and that ih"r" row has - l'e n rDck.
bottom foundation 10 any Rotation -"h"rnn
that - carried into Wall street The. ren
-on Tor VI" chanc"d A'ti'uf" NJ investors
inn-i I've fra"'i, u II -Ntd. - 'h" fact thai
tho cnllapsr- and r~oT TganiIatiuis Il com
panies Whose stock wa 80 casllv flat1'i
'Nsn pointed morals which vii -" not
spon forgotten
~ APRIL. isga tho ANA gaIr mated ,oupnr
company wa" incorporated IN New Jersey
I'- authorized capital wa. slL5HOOp, e
Whlcn SIS 80 90 Vss i--'ied
Wi'h M" proceeds ~ IN" sal ~ ~ stock
~" new company paid A. much A. u hat
- Tor IN" cofnp1nI"- acquired 20 form II
Thess wer" the Ana, rnda tnpprr Company
TIE BUTTE and Boston. the Boston and Mon
'ara and tNr'-' Other con Daul"-
When The company became going
concern. n vas insisted tia the over
lasting forum" of everybody connected
WITH u vuulu tn made THIS ro'iNn 30
came more hrmlv rooted whom N poO
a dividend ~ per cent was declared IN