The daily Gate City and constitution-Democrat. (Keokuk, Iowa) 1916-1922, 1919-05-06
PURITY OATS CO.
WILL CONSOLIDATE
With the American Hominy Company
and the Plant in keokuk viii
Become OF Greater Indus
trial Importance.
NO CHANGE IN POLICIES
Management Here to Remain the
Same but Opportunities for En-
Iarsement OF Business
Are Increased.

meeting of the stockholders of the
Purity Oats company, Of Keokuk,
Iowa, on Tuesday, May IL, 1918, to
ratify the action of the board of
directors upon the matter of con-
solidation with the American Hominy
company, while at the same time the
Purity Oats company of Davenport
is concluding arrangements to enter
the consolidation on a like basis.
| The soundness Of the business
principles involved In. and he adj
vantages to be derived from this con-
%solidation have received the careful
consideration and unanimous ap-
proval of the board Of directors.
The American Hominy company
has been the largest exclusive corn
millers in this country for nearly
twenty years. They own and have
continuously operated successfully
ten mills, increasing their volume OF
business from foul million seven
hundred fifty thousand S4,750,000)
dollars the first year to thirty-seven
million four hundred twenty-five
thousand (s37.425.00e) dollars during
1918. Substantial net earnings have
been shown each year without excep-
ton and in keeping with the In
creased volume Of business. Their
financial standing, credit oand scrupu-
Ilous care Of obligations is Of the
highest charactex.
Local Plants Rapid Growth.
The volume of business Of the
Purity Oats company has grown from
three hundred fifty thousand $780,
00O) dollars during their first year
in 1910 to approximately eight mil
lion ($S, 00O, 000) dollars during 1918.
In package rolled oats the Purity
company has been for some time he
second largest producer in the world.
Realizing not only the Importance
but the necessity Of manufacturing
rolled oats and oat products in
Eorder to utilize to the fullest extent
the b%y-products of their corn mills,
the board Of directors of the Ameri-
can . Hominy company definitely de-
icided, by resolution, in September Of
1918 to enter into the manufacture
of oat products.
The time has also come when the
Purity Oats company must enter
much more extensively into the
manufacture Of corn goods and
mixed feeds in order to successfully
compete with our larger competitors
who are already In these allied lines
to a very considerable and dominat-
ing extent.
The American Hominy company
has extensive foreign connections
and distribution of its products,
while limited capacity on the part
of the Purity Oats company has con-
fined 1t to domestic trade.
Two Healthy Concerns.
Here then are two healthy grow
ing concerns which considered alone,
need and must have, in order to be
completely equipped, what the other
can supply. A consolidation Of
energy, experience, organization and
resources would naturally result in
sound, healthy and more rapid pro-
gress.
After careful investigation by the
officers, and full consideration, the
board Of directors has, by resolution,
approved a proposition Of the Amer
lean Hominy company for consolida-
ton. The entire transaction being a
merger or consolidation which re-
suits IN more sound and valuable
holdings, in exchanging a larger
pTCpOIIlUu LII ID uUCH SildllcI cilttI-
prise for a smaller proportion in a
much greater enterprise.
To Increase Plant Capacity.
Arrangements are already well
under way to Immediately increase
the capacity of the Purity Oats COM
pany of both Keokuk and Davenport,
SO that these mills will be of greater
industrial Importance to the towns
in which they are located than they
have been in the past
The management Of the Purity
Oats company under the new con-
s~olidation will remain in the same
hands as heretofore and the same
policies which have maintained in
the past will be followed in the
future. /
In the minds Of the officials of the
company this consolidation places the
Purity Oats company of Keokuk and
Davenport in position to secure their
complete share of the cereal bust
ness not only in this country but in
II a