The evening world., 1911-03-14
GATESAND FR|CK
RIVAL ENERALS|N
COMING BREAD WAR
Local Concerns Capitalized at
Millions Prepare to Fight
New $4,000, 900 Trust.
MANY FIRMS MERGED.
Ex-Wall Street Plunger Plans
to Control Product in All
Principal Cities.
MANY FIRMS MERGED.

Big bread manufacturers from the
leading cities OF the United States were
represented at conferences held to-day
In the offices OF John ". Gates, at No.
II broadway. FOR the purpose OF work
ing out the details ~ the $4,000
bread trust which Gates is financing.
The new trust Is to be known as the
National Bread Company. and 1t is in
tended that 1t shall ultimately control
tho manufacture and sale OF bread in
she prominent cities OF the country.
Tho formation of such a combination
promises to precipltate a bread war in
New York. The Fleischmap Vienna
Model Bakery Company. with a capital
ization OF $500 ,oOO. is to be the trust
company in this city. Other minor In
situations here. which fear the effect OF
such a price war, are also expected to
come into the combination.
viii Fight the New Trust.
The two leading bread manufacturers
of this city have refused to consider a
proposition TO be taken into the Gates
trust and are preparing for a battle
with the national concern. SThey are
DE Shuts Bread Company. capitalized
at s 6,O00.O 200. and the Ward Bread Com
pany. with n capital of 3 1000, 600. The
Ward Company. backed by Henry c.
frick n Henry G. Phipps. is building
an immense plant in Brooklyn and will
he ready to go into he market with It's
product In a short time.
At the Office of Max Oscher, No. 100
Fifth avenue, 1t was admitted to-day
that Mr.. Oscher, who is recognized as
a Gates agent. was interested In the
formation Of "A national combination OF
bread manufacturers. Mr.. Oscher. how
ever. declined to discuss the plans OF the
new company. declaring that announce
ment would be made at the proper
sine
J. Frederick Hilde5rand, general man.
ager OF the Shuts Bread Company, was
seen to-day AZ the offices oe that COM
pany. No. % Beaver street. He admit
ted that an attenpt is h,ing made to
cJE5ine all bread manufacturers into
a national group. but declared his COM
pany would not go into such a merger
The first move in the Gates pro-
grammc to get control of the bread
market was made about two years ago.
Max Oscher attempted to form a COM
bination OF New York manufacturers.
but his plans went nstray, and the
Shuts Bread Company. q combination
OF thirteen minor companies formed at
that time, was the result. This COM
h,nation IL unfriendly to the Gates in
terests.
Formed a National Trust.
Failing TO get control OF the market
here, Oscher went to work combining
the bakers in the principal cities of the
country. Tn. combinations which he
had a hand in promoting, and which
VIII now become subsidiary TO the Ma
tional Bread Trust, are the Collins
Bread Company OF Buffalo, Freebooter
Baking Company OF Philadelphia. DEM
niger Brothers. Rochester, American
Bread Company OF 81. Louis. the George
q. Fox Company OF Boston. the Star
Baking Company of Cleveland, Lery
Baking Company of Washington, the
Atlas Bread Company OF Milwaukee,
Whiteslde Baking Company of Louis
vile. and the Schultz Baking Company
OF Chicago.
Paul Schultz, head OF the Chicago
concern. is TO be president of the Ma
tional Bread Company. 1t is said that
the total agreed valuation of the prop
critics to be taken over by the trust is
about SIS. 900, 0c0. The organization plan
provides for an issue of SIS. 1000 of
preferred stock to oe used In taking
over the individual properties and
sl5. 0o0.o 900 OF common stock to be paid
out In bonuses.
Though all Information was refused
at the Gates offices to-day It was ad
mitted that the millionaire plunger was
20 see representatives. of a number of
bread manufacturing concerns.