The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1903-05-20
/ POINTED CONTRAST.
What Advertising and Wise, Ener-
getic Management Did for the
Pope Manufacturing Co.
What the Opposite Course Did for the
American Bicycle Co.

"a Hdt lliS OppOSitO OoGt 90 O'o 'o' Wv
American Bicycle Co.
It is announced that new organiza-
ton of great capital, headed by Colonel
Albert A. Pope has taken over all the
assets of the American Bicycle Com,
pany. This assures a forceful revival
of the bicycle business and points a
most significant contrast.
There is no more conspicuous IN
stance of the influence of liberal ad-
vertising, backed by business ability,
in building up great industry than
the magnificent successes Of the Pope
Manufacturing Company of Hartford,
Conn. There is no more conspicuous
instance of the influence of the rever-
sal of this policy to the injury OF
great industry than the downfall OF
| the American Bicycle Company.
Starting with a capital Of less than
So OOO. and an output of fifty home
made bicycles in the year 1878, the
business of the Pope Manufacturlng
Company was pushed irreslst1Dly over
every encouragement and obstacle IN
the way of an unprotected device and
an undeveloped demand until it was
employing over IS, 100000 Of capital,
running five big factories at high
pressure, enlisting legion OF expert
mechanics and distributing its output
through thousands of selling agents
over the face of the globe.
Colonel Pope was once asked what
was the first essential to success in sell
| ing good thing.
| His answer was: Advertising!
What is the second essential, then?
"Big advertising !"
"And the third?'' The reply came
| in thunder tone:
bigger advertising -"
That is the declaration Of his faith
justified by works. He had a good
thing and he made the public see it
and know it and call for it by a year
ly outlay rising to over half million
dollars in well-made, well-placed ad-
vertising.
What did he get from it? A net in
come running up to over a million IN a
single year. A property for which be
refused bid of IS, 100000.
On the other hand the American BIZ
cycle Company started its operations
on the 22nd of September, 1898, with
an assured control of seventy per cent.
of the bicycle business in this coun--
try. It was the heritor Of the grand
| plant and success of the Pope Manu-
featuring Company. 1t embraced also
the plants, patents, prestige and assets
of all kinds of forty-one other active
concerns in the field. 1t took in the
Western Wheel Works, the Monarch
Cycle Manufacturing Company and the
Gormully jeffrey Manufacturing Com
pany of Chicago, the Indiana Bicycle
COMPANY of indianapolis, Il. A. Lo-
zier & Company of Cleveland, +. Z.
Stearns & Company of Syracuse, the
Sterling Cycle Company of henosha,
Wisconsin, A. D. Miselbach of Mil
| waukee, and the Lamb Manufacturing
Company Of Chicopee Falls, Mass,
all leading producers in their line.
It assured its unfailing supply OF bl-
cycle parts by the incorporation OF the
Thompson Manufacturing Company of
Chicago, Smith Sons & Co., Of Mil
waukee, the Cleveland Machine Screw
Company of Cleveland and the Amerl-
can Saddle Company of the same city
with five plants in other cities and
towns.
Its Capitalization was forty million
dollars. The net yearly income OF its
component concerns was reckoned for
it's underwriters at over three million
dollars in 1897 and 1898, and estimated
at three and a half million for the year
1899.
It was not a prescribed trust" not
squeezing monopoly, but a magnlh-
cent leader in the eye of its promoters.
It was to set the pace and standards
in bicycle production, and outsiders
must be content to lag behind. 1t
controlled an extraordinary range OF
standard and popular designs and
could challenge, at will, the price cut
ting of the cheapest machine makers.
With-this dominating organization,
capital and facilities, it was expected
to distance competition and reap enor-
nous profits.
In the first year of its triumphal
march it began to salt away money for
its stockholders by cutting down its
notwithstanding what one of its
officials likes to call "the condensing
method.' 81 Next year it gave some
more wringing twists to the compress
of its condenser During the year Just
closing it compressed its advertising
almost to the vanishing point, and in
all these years its business shrunk in
direct proportion to the shrinkage of
its advertising until, in September
last, just three years from the month
of it's sanguine start it defaulted the
/ payment Of it's fixed charges and went
into the hands of receivers. 1t never
paid dividend and its fifty operating
plants have shrunk two thirds.
The largest tobacco faem in this