The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1911-12-13
WHY CHANGE MADE
IN NATIONAL LEAD
Wall Street Journal Gives
Reasons Why Guggen-
helms Left Board.
DEAL Is INTERESTING
Interlocking Directorates Are
Not Fashionable These
Trusi-Busting Times.
DEAL is INTERESTING

The Wall Street Journal comments up
on the withdrawal OF the GuGgcnheim in
tcrests as directors of the National Lead
company as follows:
Passing of the Guggenhcims from the
directorate Of the National Lead company
is not without significance. In iniormcd
circles opinion is that the iutcrlocking di-
rcctorale OF the American Smelling
Refining company and The National Lead
company presented too shining marx
10 an inquisitvo attorney general and an
administration apparently bent upon max
ing a trust busting record. When The
National Lead company was formed III
1891 as successor TO the National Lead
trust. II controlled between so and 20
per cent OF the white lead manufacturing
interests in this country. Since mat tlme
the percentage has Increased, the com
pany dcvoting It's energies 10 diNersiiyine
It's manufactures rather tlan cNichdlhs
The scope OF the white lead business, hut
represents al the present time more tlan
GO per cent OF the annual production Of
white lend. The American Smelling ~
Refining company enjoys n practical mo-
nopoiy Of the lead refining business and
controls the market for pig lead abso-
lutely. The National is. and has been for
years, the largest customer OF the Smell-
Ing company. and since 1904 three direc-
tors of The American Smelling & Rem
ing company have sat on the board OF tile
National Lead company.
COIDpeJlClOu AToSc.
How smelters' representatives came 10
obtain representation on the National
Leads board involves the story Of the
United Lead company now subsidiary
OF the National. The United Lead com
pany was formed in 1905. with the WHIT
ncy- Ryan Standard Oil interests the dom
mating factors. 1t was capitalized AT
s25. 100000. OF which slo.0O0.00O WAS pre-
ferred and $4,000, 900 common stock, and
included all but TWO or three OF The
plants operating In competition with the
National Lead company. None of the
stock was eyer issued, 6mt but o%6 Vas deposited
debentures of the company's authorized
issue Of $4,000 900,
Having control of the raw material
supplies Guggenheim interests saw in tlIe
United an opening To participate III the
profits from the manufacturing end or the
lead business. They bought the United
Lead company and made preparations 10
go into the manufacture Of white lead on
big scale. They further strengthened
their position by purchasing in the open
market of largo blocks Of the common
stock Of The National. which was then
selling In tho twenties. Tho preferred
was too firmly held to he dslodged In
Volume.
Interests Get Together.
As matter OF fact. neither OF the con
tending parties had much stomach for the
impending trade war. and just on the
eve of hostiities conferences was called.
The bluff of The GuGgenheims. II bluff it
was, Wprke1 pc1lcCllpn ana the Ma
tional agreed TO take over the $40 600 900
bonds Of the United, giving in payment
So, 49, GOO OF lis preferred and $3.50 900
OF its common stock. AS the United
bonds were quoted between 10 and so. 1t
is apparent that the deal was based up
on the market price of the bonds Dan
e Guseenheim, Murry Guggenheim and
Edward Brush Of the American Smelling
& Refining company were immediat ely
elected To the Nationals board.
The new directors of the National lost
no time in sewing UP that concern TO
the American Smelling & Refining com
pany in a nftccn-year contract which has
Still about ten years 10 run. Having thus
secured the National as a customer to the
American Smelling & Refining the Gug-
CenheinlS were free 10 sell their holdings
OF National Lead stock which had been
greatly increased by tho United Lead
company deal. In this connection il is
timely To state that at no time have the
GUgcenheimS ever actually held n work
ing control Of The stock OF the National
but their holdings in 1905 were very
large. AT the present time their holdings
are believed 10 be only nominal. The
advantageous fiftecn-ycar contract which
The smelling company made with the lead
company made a representation Of the
American Smelling & Refining on the
Nationals board no longer necessary,
and when policy directed that the in
icrlocking OF the directorate be ended Fl
may be coniectured that the step was
taken without marked reluctance.