Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1910-06-29
SHORTHJLI COMPANY TO REOR.
CAME AND ERECT SECOND
PLANT IN WEST.
LOCAL FACTORY TO
BE MAINTAINED HERE
Branch in This City Will Be Devoted
to Handling the Iowa Business =
Freight Rate Advantages in Favor of
Omaha Makes Opening of Plant
There Advantageous.

c. r. Speers, president of the A E
Shorthill Company, has closed con-
tract with the Commercial Club, OF
Omaha, providing for the sale of capt.
tai stock which will mean the reorgan-
ization and enlargement of the Short
hill Company, under the name of the
Omaha Shorthnl Company and the OPP
ening of a new factory and the head
which will still iea,e the present fac
tory in operation in Marshalltown as a
branch 10 care for the Iowa trade.
The sale of stock was begun in ON
aha this morning. and the Commercial
Club officers. who are behind the stock
subscription, are confident that it will
be successful.
Be II aif Million Corporation.
The Omaha -Shorthll Company,
which will succeed the Old company. is
to be capitalized at $500 900 All the
stock will not be issued, however, at
this time. The contract with the
Commercial Club of Omaha under
which negotiations have been in pro-
gress, calls for the sale of $4,000
worth Of stock N Omaha, a free build
ing site and the financing OF the build
ing of the plant itself which will cost
approximately $4,000. The local
business and the plant OF the Shorthill
Company is turned in TO the reorgan-
ized company for $4,000.
Advantages of Freight Rates.
The reasons for the establishing Of a
new factory, and headquarters Of the
company in Omaha as explained by
Mr.. speers. are lower freight rates, on
business west of the Missouri river, a
larger supply of labor, the need Of an
other plant. larger and more modernly
equipped and to get factory nearer to
the territory in which great deal of
the company's business now originates.
Lower freight rates on our western
business are the first and chief consid :
Grafton said Mr.. Speers. The diff
ference is s1.04 a ton as compared with
this city. Estimated on a 10000 ton
basis, it makes a large sum.
Mr.. Speers went on to explain that
the car load rate on steel from the
Pittsburg territory, where it all comes
from, to this city, was S3.05 a hundred,
The car load rate from here TO the
Missouri river is 1872 cents a hundred,
total of 49.7, Pittsburg to Marshall
town and then to Missouri river points
The rate from Pittsburg territory di-
rect 10 Omaha is 44.5, difference in
favor of Omaha of 90 hundred
pounds.
Bulk of Business Is West.
In explaining why this question of
rates was of great Importance he said
that 60 per cent of the company's BUSH
ness came from territory west of the
Missouri river.
1t is planned to have the Omaha
plant contain all of the branches that
are included in the local factory, in
Guiding the Marshalltown Drop Forge
Company. This factory will be moved
from Marshalltown entirely.
The structural steel factory 10 be
maintained here will be devoted large
ly to handling the Iowa bridge and
structural steel business of the en-
larged company.
Commercial Club Behind Plan.
The plan of the reorganization, and
the building of the new factory in
Omaha, also the sale of the stock was
given the official endorsement of the
executive committee of the Omaha
Commercial Club at a meeting held
Tuesday afternoon. This was not done
until mechanial expert, and q real
estate expert had inspected the local
property and had reported on it and
an expert accountant had made a re-
port on the finances and accounts. Pre-
ceding the formal endorsement of the
reorganization the Omaha men have
assured Mr.. Speers that $4,000 of the
stock had already been volun tarily
subscribed without solicitation.
Will Keep Large Branch Here.
With the additional working capital
that the reorganization of the company
will provide and with the additional
capacity that d second plant will give,
the company's business is to be greatly
developed both in this state and in the
west. Heretofore Mr.. Speers has fin
anced the business practically alone
and the need of new capital to care for
an expanding business has been keen
ly felt for some time. This now is
forthcoming at point nearer to the
territory which is to be exploited for
future business and in the larger city
enlarged financiel accommodations will
take care of the enlarged business.