Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-01-12
FORM SILK TRUST.
Plans Under Way to Combine Thirty
Mills With Many Loomes.

NEW YORK, January 12.-Plans are
rapidly reaching completion for the forma-
ton of a trust merger to be known
the American Silk Company. 1t is pro-
posed 10 have capital stock of So, 900
and will control a large percentage of the
domestic output of dress silk.
Promotion of the new combination and
the negotiations which have carried it to
its present stage are in the hands of II. w.
Bennett & Co., bankers, of No 20 Broad
street. 1t is also learned that the Knicker-
booker Trust Company of No. 66 Broad
way, will participate in the financing of
the undertaking. 1t has been Incorporated
under the laws of New York with nomi-
nal capitalization The amount will be in
creased as the program for the acquisition
of the properties now under option is
worked out.
II. w Bennett, who has gathered and
owns options on large number of silk
plants, said yesterday that the present
plans had in view the control of thirty silk
mills in Pennsylvania. New Jersey, New
York and New England These plants, he
said, contained 5000 looms, with adequate
spinning and dyeing facilities, and repre-
senting the highest development of the
dress silk industry of the United States.
They produce. he says, sl0,OO0,OO0 in silk
goods annually.
There are 10000 looms turning out silk
in the United States.' said Mr.. Bennett,
and the prosperity of the times has made
great demand for silk. few years ago
only the wealthy could afford to use silk
material extensively, but now no wardrobe
is complete without silk dresses or petit
coats. The demand has broadened and the
silk industry is flourishing'
If the American SILK Company becomes
going concern it will issue $4,000, 600 pre-
ferred stock and 100000 common stock.
From an examination of the earnings of
the thirty mills to be acquired 1t is esti-
mated that the total earnings and savings
of the plants under one administration will
be at least 100000.
One of the largest silk plants to be &C
CURED by the American Silk Company is
the York Silk Manufacturing Company of
York. Pa. This concern has a capital
stock of 100000 and is one of the largest
black silk goods manufacturers in the
country. Matthew G. Collins is its general
manager. 1t is understood that Mr.. Col
Inns is interested in the proposed American
silk Company and will become the general
manager of the enlarged concern.
In letter TO Mr.. Bennett Mr.. Collins
points out that each mill now operated
separately maintains staff of ten to ff-
teen statesmen. In addition, each factory
makes an average of from fifty to one
hundred different qualities OF silk. He
urges that under a consolidation each fac
tory or mill should be operated so that
the machinery OF each mill will be run on
qualities and widths of silk it is best
adapted to make. The number of sales
men can also be reduced and the heavy
commissions charged on guaranteeing
credits and advancing loans charged by
commission house bankers will be elimi-
mated
Announcements of the American Silk
Company. issued yesterday, say the COM
pany will be provided with ample capital
and facilities to handle every step in the
manufacture of dress silk from the i'm
pOrtatiOl of the raw material to the mar
keting of the finished products. All the
costs of jobber commission MERCHANTS,
dyers, &c, will thus be eliminated.