The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1911-10-22

COmpAn1e6-M. Rumely COmQA
Company. Richmond. Ind; Advanc
Michigan.
Probable Capital Stock Of the N
Total Number of Men Employe
Negotiations on the part of the M.
Rumely company of La Porte. Indiana.
for the purchase Of the Advance
Thresher company of Battle Greek.
Michigan, N reported in the Evening
News of the latter city, under date of
October 10. has brought to light the
fact that the Rumely concern has also
been negotiating with the stockhold
ers Of Gaar, Scott and Company for
the sale of their plant. II the deal
goes through the enlarged Rumely
company, while in no wise q trust as
there are forty or fifty other threshing
manufacturers in the country, will be
the largest concern of its kind in the
United States and one Of the largest
in the world. Outside of the change in
management as a result of the sale
Richmond will not be affected by the
contemplated absorption Of Gaar,
Scott and Company by the Rumely
company, as the plant will still be
operated In this city.
Stockholders Rstlesnt.
Out OF clear sky. flguratively,
speaking. and from . chance perusal
Of the Evening News Of Battle Greek,
Michigan, coupled with the recent no.
ticeable and frequent gatherings at the
Second National hank building Of csr-
tain men int4rested a daar Scott and
Company. came tlse <lue - ~ sEe
OF the ioeal coInpany 70 the n. Rumely
company of In Porte, Indiana, whose
meteoric rise to great prominence in
the threshing machinery industry
within the past four years has been
one of the marvels of recent manufac-
turing achievements. Gaar, Scott and
company stockholders who were seen
last evening were extremely reticent
about the proposed sale Of their plant
but did not deny that negotiations
were in progress. In fact it was learn
ed on very good authority that an op-
ton on Gaar. Scott and Company is
now in the hands of the Rumely con-
cern. This Is born out by the fact
that large force of expert account
ants are said to be at work now on the
books Of the local company.
Big Price Offered.
Although Is was impossible to AZ
certain the amount offered the stock
holders for Gaar, Scott and Company.
1 t. d. - Ia
assets of the concern the total amount
to be paid will not fall short. Of from
So, 100000 to $3,5o0.o00. Gaar Scott &
Company Ia capitalized At $400, 900 and
has $36O,O00 Of its stock outstanding,
the balance Of the stock being unis-
sued and held in the treasury of the
company. Inasmuch, however. as this
business has been in existence for
considerably more than a half CEN
tury the par value Of the capital stock
issued does not begin to represent its
true value. A large surplus has been
accumulated in all the years, estfma-
ted to amount to anyway from $780,
900 to $3,50o,00 and the surplus AZ
we'll as the capital stock would have
a determining influence on the amount
the stockholders would be willing to
take for their holdings. It IL under
stood the stockholders of the Gaaf,
Scott and Company will receive stock
in the M. Rumely Company for their
holdings. equivalent to the value OF
their plant.
Richmond to Benefit.
One of the stockholders, though not
affirming that the sale had been con-
sumated, declared that II 1t did 30
through, Richmond would benefit by
the deal. He said that the Gaar. Scott
plant would still be operated here and
in all probability during the next cou.
pie of years the factory would be re-
planned by e. A. Rumely. whom he
represented a. being a manufacturer
greatly interested in the efficiency
movement in manufacturing circles, in
order to increase the output and at the
same time materially reduce the cost
Of production
According to the Battle Greek News
the Advance Thresher company 10 to
be taken over at price experimenting
q. .000, 900. The N. Rumely company
IL rated in capital stock and other -.
sets - well as in~bonds as represent,
Ing q total investment Of around s..
000. 900. Gaar. Scott and company Ger:
talnly will not he purchased for lesa
than 3.o00. .008 and probably 81. SOC. .00a
Therefore, the enlarged Rumely com.
pany will be concarn having In the
neighborhood Of 50 .0oo. 900 Or ~, 600,
600 Investment. A. such It wiz be the
largest company Of its kind In the
country.
That the Gaar, Scott plant evidently
viii not suffer II the matter Of uzsn
lassneat fruu - gropossd change q