Crawfordsville Review, Crawfordsville, Montgomery County, 16 July 1892 — Page 3

THE CORDAGE TRUST.

HOW

THE MONOPOLY IS PROTECTED BY A HIGH TARIFF.

Pemocrntlc Effort to Break up tlio Trust Blocked in tlie Iiupuhlican Senate.

History of tlie Combine Showing How HiVlions oT Dotlur* Are Annually Ex

torted From tlie Fur mem.

The bill to repeal the tax on binding twine was one among the first t.6 pass the Democratic house. It was passed 'under the suspension of the rules in order to allow the senate sufficient time to act upon it so that the farmers might obtain the benefit of untaxed twine for this year's harvest. But the harvest ia nearly over and the free binding twine bill has not even been considered by the finance committee of the Republican senate.

The reason for this inaction is easily understood. There is a cordage trust which controls the product of binding twine, cables, rope, twine, cordage, etc. This trust also controls the Republican Benate from the fact that it contributes large sums of money to the Republican campaign fund.

The tariff on binding twine is seven cents per pound other twines two and one-lialf per pound: hemp cables and cordage two and one-lialf cents per pound other cables and cordage one and one-half cents.

The seven cents tnrill shuts out foreign competition. The American manufacturers having the field to themselves can easily form a combination to control the product, output and prices.

•. History of tlie Cordage Trust.

Previous to October, 1887, the cordage manufacturers were in a combination ox pool, the object of which was to fix prices. But like other loose arrangements of this kind the members were not slow to break the agreements made when they found it to their advantage to do so.

When the trust secured its charter in October, 1890, it had contracts for the fee of the following companies, in addition to the four original companies: George C. Pooley & Sons, Buffalo Xenia Twine and Cordage company, Xenia, O. J. Kenek's Sons, Easton, Pa., and the Akron Twine and Cordage company, Akron, O. In addition to these it controlled by contract the following: Victoria Cordage company, Dayton, Ky. H. R. Lewis & Company, Baumgardner, Woodward & Company, Philadelphia the New York Cordage company, the Atias Cordage company, New Orleans, and Randall, Goodale & Company, Boston.

The capital of the trust consisted of $10,000,000 of common and p,000,000 of preferred stock. Only the preferred stock was put upon the market, the common stock being held by the stockholders in the trust.

Having thus successfully accomplished its reorganization, the trust proceeded to take steps to acquire other properties, and in order to provide funds for the purchase of these companies it organized the security corporation of New Jersey, to which it turned over its options. It was agreed that this corporation should acquire a majority control of as many independent plants as possible and then lease them to the trust.

So far the plan has worked as successfully as could be expected and the trust has now secured control, by purchase or lease, of the following companies in addition to those already mentioned: Tho Sewall & Day Cordage company, Boston the Day Cordage company, Cambridge Standard Cordage company, Boston the Boston Cordage company, William Deering & Company, Chicago Field Cordage Company, Xenia, O. Miamisburg Binder Twine and Cordage company, and ihe Middleton Twine and Cordage company, Ohio the Galveston Rope and Twine company, of Texas Suffolk Cordage company, Boston tho Peru Mills, Indiana Hanover Cordage company, Pennsylvania Donnel Cordage company, Bath, Me. the New Bedford Cordage company, Indiana, and the American Bagging company, New York.

The trust has also secured control by purchase of contract of the plants of the following manufacturers of machinery: W. C. Boone, Jr., Brooklyn J. C. Tood, Paterson, and John Good, Brooklyn.

In addition to the forty-five concerns mentioned above the trust claims the control of four others, making a total of forty-nine properties. Outside of the trust are the following concerns: The Pearson Cordage company, and the Higliain Cordage company, Massachusetts Fitter & Company, Pennsylvania Travers Brothers, New York, and tho following new establishments: The Miamisburg Cordage company, Ohio, and the Sudlow Manufacturing company, Massachusetts.

Outside of the trust are the trust are the following manufacturers of cordage machinery: The Hoover & Gamblo company, of Ohio, and the Watson Machine company, of Paterson. Though the trust has succeeded by herculean efforts in gaining control of over 90 per cent, of the manufacturing capacity of the country, it has done so only at great cost.

At the time of its organization in 1887 the trust announced as the object sought by its formation an increase in the profits to be derived from a lower cost of materials by the removal of competition in the market and from the economies to be derived from a decrease in tho cost of production. It was asserted time and again that no attempt would

be made to raise the prices of it/finished products. Has the trust up to the present carried out this promise, or if not is there any likelihood that it will do so in the future

In the following tables are shown the average monthly prices since 1885 of the raw material and finished product. The articles, the prices of which are given, are manilla hemp, and manilla cordage seven-sixteenths of an inch in diameter and larger:

MANILLA IIEMP PER POUND.

Months. 188(5. 1SS7. 1888. 1889. 1890. 1891.

Cts. 7.72 7.25

January February. March April May June July August .. Septem .. October .. November December

Cts. 8.11 8.06 7.89 7.75 7.07 7.44 7.62 9.32 9.87 10.84 9.40 9.01

Cts. 9.04 9.12 9.00 9.00 9.00 9.00 9.00 9.00 9.00 9.00 9.25 9.12

Cts. Cts. 12.12*1.75 11.62 11.12 11.50 9.62 11.87 12.87 13.00 12.87 13.87 13.87 14.37

C.72 C.98 7.112 7.87 7.56 8.24 7.98 7.89 7.95 8.15

January February. March April May June July August .. Septem .. October .. November December

Cts. 9.81 8.0C 8.5C 8.31 8.15 7.75 7.65 7.4i 7.32 7. OS 6.87 6.6$

9.00 9.20 9.25 9.25 9.25 9.25 9.08

14.12 10.59 13.87 9.84

MANILLA COIillAGE l'EI{ POUNB.

Months. 1KS6. 1S87. 1888. 1889. 1890. 1891

Cts. 11.75 11.25 11.75 11.75 11.75 11.75 11.75 11.75 11.75 11.75 11.75 11.75

Cts. 12.00 12.00 12.00 12.00 12.00 11.00 10.50 11.37 11.25 11.75 11.37 10.87

Cts. Cts. 10.50 14.25 10.50 15.25 10.50 15.75 10.75 15.75 10.75 15.75 10.75 15.75 10.76 15.12 11.37 13.50 11.50 13.00 11.25 13.25 12.00 18.25 13.25 14.25

Cts. Cta 14.50 11.5C 15.00 10.8i 15.00 10.7J 15.00 10.6S 15.00 9.7£ 15.00 14.75 14.75 14.75 14.75 13.87

9.23 9.2?. 9.15 8.87 9.15 9.8i

12.00 10.25

The following are the average yearly prices of materials and finished products (cents per pound):

l&Sti. 18S7. 1888. 1889. 1S90. 1891.

Cts. Cts. Cts. Cts. Cts. Cts.

Cordage 11.70 11.51 11.15 14.57 i4.53 9.9-1 Manilla .. 7.68 8.54 9.(H 13.00 9.77 7.8f

Difference 4.02 2.97 2.11 1.57 4.76 2.04 •These figures would be misleading without explanation. The high prices of the raw material prevailing in 188J were in part due to a shortage in the crop, but chiefly to the manipulation of the market by a combination of th« cordage trust aad English brokers. Ir the fall of 1888 this combination begat to corner the product with Bueh com plete success that during a large part ol 1889 they controlled nearly all of th€ stock. The prices prevailing in 188S were those at which the trust was will ing to sell, and not the prices which it paid for the raw material. By this corner of the material the trust was ablt to keep up the price of cordage to tht high average shown for 1889 and 1890 until it had succeeded in working off tin whole stock on hand. The difference between the price of the finished pro duct and of the raw material for 1890. as shown above, was about the actual average difference in 1889 also. This shows that the trust succeeded in mak ing enormous profits entirely at tlie expense of the consumers.

The reduction in the price of cordage in 1891 was made for a purpose. During the whole year the trust was negotiating for the control of the independent estab. lishments, and its success depended upon its ability to force these outsiders tc terms. For had the trust kept prices up the outside establishments would eithei have refused him to join the trust oi would have held out for more favorable terms than they would have been willing to accept under other circumstances.

By October, 1891, the trust had so fai succeeded in securing control of the competing mills that it was able to advance prices again. As a result, the price of cordage ha* been raised from eight and three-fourth cents per pound to the present price of eleven and onefourth cents per pound. And this advance has been made directly in the face of a declining market for the material. The present price of manilla for shipment is six and three-fourth to seven cents per pound. The difference between this price and that of the finished product is therefore 4.38 cents' per pound. The promise made by tlie trust, that the increased profits which it hoped to secure from organization would not be at the expense of the consumer, has been completely forgotton.

Trust Profits.

In spite of the fact that the cordage trust engaged in open war during the' whole of last year with the independent manufactories for the purpose of forcing them into the trust, it was able to make very large profits. During the fiscal year ending Oct. 31,1891, the trust made a point of $1,400,313, which enabled it to declare dividends of 8 per cent, on the preferred and 9 per cent, on the common stock, and at the same time left a balance of $100,313. As a result of the higher prices since October the financial director of the trust felt justified in making the following report for tho quarter ending Jan. 31, last: "It is very difficult at this time^to give an accurate estimate of tho profits of the business for the quarter ending Jan. 31. I feel safe in stating, however, that after deducting expenses, rentals and all fixed charges, these profits will be found sufficient to pay the entire annual dividend of $400,000 on the preferred stock and a quarterly dividend of $250,000 on the common stock, besides leaving a large surplus." Should this rate of earnings be continued throughout the year the trust will be able to pay the dividend of 8 per cent, on preferred stock, 12 per cent, on the common stock, and havo $1,000,000 besides to be added to tho "large surplus" earned during the past quarter, which latter will be increased 300 per cent.

NEW YORK SAFE.

Tammany Hail Will do B«Her Than

in 1888.

In a recent interview Colonel John R. Fellows, a leader of Tammany hall, said: "New York city will give Cleveland 60,000 majority. Kings county will give him 20,000 more and the other Democratic counties on Long Island will be good for at least 5,000 more. This gives us a majority of 85,000, and I can not see how Harrison can come down to Harlem bridge with more than 70,000 majority." "Why do you think Kings county," 1 asked, "will give Mr. Cleveland 20,000 majority this year when it only gave him 12,000 four years ago." "Four years ago," was the reply, "Kings was stolen from us. Mr. McLaughlin was as certain that Cleveland would have 18,000 majority in Kings aa he could be certain of anything. It waa so great a surprise to him as it wras to anybody when he saw how the vote had fallen off. The Republicans threw an enormous corruption fund into Brooklyn and stole it from under our very noses, for we had no idea that they contemplated such a oourse." "What is to prevent them from repeating such tactics this year, if not in Brooklyn, elsewhere?" "The Australian ballot law," replied Colonel Fellows. "It will be impossible to buy up voters under that law with any degree of success. It is for this reason we think we will have at least 60,000 in New York city and our vote in Kinga county ought to be at least 2,000 beyond what we figured it four years ago." "If your estimates are correct they would indicate that Tammany hall ia going to do its whole duty by the Democratic party." "I am sure of that," was the reply, with much earnestness. "Tammany will do better work for Cleveland this year than she did four years ago, and in saying that I do not mean to say that Tammany hall neglected her duty by the presidential candidate. What I mean is, an impression prevails that our organization is hostile to Cleveland. We are hostile to him, but since this impression exists we think we must neutralize it by putting forth our best efforts. I believe we will do better work for Cleveland this year than we would have done if Tammany hall had not opposed him." "Some of your people opposed Mr. Cleveland at Chicago on the ground that if nominated he could not be elected. How do you reconcile that with your declaration that you are going to roll up an increased majority for him

The Fourth of July celebration by Tammany hall, in another evidence that New York is all right, and that there will be no skulking by Senator Hill and his followers. Senator Hill closed his letter to the society as follows: "Our courae at the present time is plain, the Democracy of New York in the approaching struggle should present a solid front to the common enemy. Loyalty to cardinal Democratic principles and regularly nominated candidates is a supreme duty of the hour."

Governor Flower, who was at the head of the Hill delegation at Chicago, in his letter to Tammany hall said: "The party is fortunate in having as its standard bearer in this great contest for the rights of the people two excellent representatives of the United States principles and traditions, and under their leadership personal differences will be subordinated to party success."

Burke Cockran and other Tammany leaders in no uncertain language committed themselves to the support of Cleveland.

Hnrrison*s Organ Still for Carnegie,

The Indianapolis Journal, home organ of President Harrison, is found on the side of Carnegie in tlie great conflict be' tween the tariff, baron and his work' men. The Journal is simply maintain' ing its reputation as an enemy to organ' ized labor. There never has been a dis puto between capital and labor when The Journal had a word of sympathy for the workmen. During the great coal miners' strike in Indiana three years ago The Journal filled its columns daily with such advice to organized labor as the following elegant extracts:

The tyranny of labor organizations over labor is far more absolute and galling than that of capital over labor. The real slavery of labor is that imposed by labor unions.— Journal, June 11, 18S9.

Five dollars a week is low wages, but it is not "pauper labor" by a good deal.— Journal, June IS. 1889.

In Great Britain coal miners receive from $1 to $1.12 a day. The miner's lot is hard enough, but at the lowest wages ever paid or offered in the country tho American miner can make a good deal more than the foreign miners work for all the time. There is no "pauper labor" in the United States. It is an insult to call any man a pauper laborer wlio can earn even So a week.—Journal, June 18, 1SS9.

Not a single dollar lias been added to the wages of American labor in the iron industries sincS tho passage of the McKinley bill. On the contrary, wages have been reduced. The only beneficiary of the tariff is the capitalist.—New York World.

CHAIRMAN CAMPBELL'S RECORD.

A Title of the Beef Trust.

President Harrison requested that W. J. Campbell, of Illinois, be chosen chairman of the national Republican committee. He was duly selected to manage Harrison's campaign. Senator Vest' who it will be remembered headed an investigating committee to break up the beef combine of the country, knows Campbell. Here is what he has to say of Campbell: "This man Campbell is a corporation lawyer doing the bidding of the monej kings of Chicago and looking out for their interests in the forwarding of all their schemes. I do not doubt his ability, but what I wish to emphasize is that his ability has never been at the service ol the people. I first encountered him in St. Louis several years ago, when a special committee of the senate met there to investigate the ^reat beef trust, which Armour, of Chicago, and his associates were at that time and are still manipulating. Campbell appeared aa the attorney for Armour and began at once to throw obstacles in our path. He did everything he could to prevent the gathering of information by the committee which would show the inside workings of the beef monopoly and how the producers of beef were oppressed by it. He followed the committee to Chicago, Kansas City, New York and Washington, continuing his obstructive tactics at every point, and at Chicago he capped the climax by instructing hia clients to disregard the summons of the committee to appear before it. "He is still the legal adviser ol Armour and is serving him as faithfully as ever. He is .paid to be the genius of the whole beef monopoly business. All the questions of importance affecting the trust are submitted to him. He is the guide, philosopher and friend of tho Armour tribe and is invaluable to them. They supply the "money and attend to the business details of the offensive combination, but it is Campbell who looks after the matters of larger import and directs the workings of the complicated machinery. The monopoly is flourishing like a green bay tree. It controls the beef market both here and abroad. The railroads are in its grasp, and what are known as the cattle ships are nearly all in its power. The beef producer in this country was never before forced to sell at so low a figure as now prevails. He gets at present three and one-half or at most four cents per pound, while in London the price is twelve and one-half cents. The Armour crowd, with Camp bell as their legal head, have everything to suit themselves, and the result is that the beef producer is entirely at their mercy."

"Some of our people," replied Colonel Fellows, "were a little injudicious in Baying that. A great majority of our delegation, however, was not so extreme as that. We merely said wTe would have some difficulty in electing Mr. Cleveland, owing to his lack of popularity in some localities, but no well in formed man said We could not elect him if wTe tried. We shall try, and we ex pect to succeed."

THE AMERICAN TIN FAKE.

A Chance for the Tin Plate Liar to Make

a Fortune.

The following letter to tne Fort Wayne Journal is from a man who means business. Chairman Fairbanks, of the late Republican state convention, is respectfully invited to communicate with Mr. W. E. Haines. Mr. Fairbanks is reputed to be a large stockholder in the Elwood tin plate works and he should not allow Mr. Haines' offer to go by default.

Mr. Haines' letter is as follows: PORTLAND, Ind., June 29. This morning's Gazette states that there is a "cargo of American pig-tin in New York for sale." I will give $100 a pound for American tin. I have just come from California and there is no tin ore there or any where else on the American continent that has yet been discovered. I have been connected with the mining industries of this country for tlie last thirty years and know something about the metals and minerals of the United States. I was at Elwood, Ind., last week where they are making a small quantity of tin for political effect. The tin ore used there and everywhere else in this country is imported from England many thousands of dollars have been expended in prospecting for tin ore in this country, but without success. There has been no tin ore discovered as yet. The iron and steel used at Elwood and elsewhere in this country that is plated with tin is manufactured here, but the tin ore imported. „-.s regards my integrity and financial str -'ling, I refer you to any bank at St. Louis or Chicago. I consider it wicked to deceive the people about tin being present on the soil of the United States. Yours truly,

W. E. HAINES.

The Smrie Campbell.

Ex-Senator Farwell, of Illinois, upon returning from Europe fonnd out to liis great astonishment that tho man whom he recommended for collector of customs at Chicago three years ago but rejected by Harrison, had been selected chairman of the national committee at the president's request.

Farwell is under the impression that it was Harrison's unpopularity that caused a Democratic legislature to be elected in Illinois.

For this reason he is very bitter toward the president. He does not conceal his contempt for Harrison as will be seen by the following sarcastic letter addressed to the Washington Post:

Some three years ago, more or less, while I was in the senate of the United States, I recommended a gentleman by tlie name of William J. Campbell for the office of collector of customs at Chicago. All the Republican members of congress' recommended this gentlemen at the same time for this office. The president said "that he was a professional lobbyist and unfit for this position, and that he would not appoint him."'

Will you be kind enough to inform me whether the Campbell appointed chair man of the national committee (at the urgent request of the president) is the same Cumpbell whom he refused to appoint to a federal position because he was a "professional lobbyist and unfit for it

What is

Castoria is Dfr. Samuel Pitcher's prescription for Infants and Children. It contains neither Opium, Morphine nor other Narcotic substance. It is a harmless substitute for Paregoric, Drops, Soothing Syrups, and Castor Oil.

It is Pleasant. Its guarantee is thirty years' use by Millions of Mothers. Castoria destroys Worms and allays feverishness. Castoria prevents vomiting Sour Curd, cures Diarrhoea and Wind Colic. Castoria relieves teething troubles, cures constipation and flatulency. Castoria assimilates the food, regulates the stomach and bowels, giving healthy and natural sleep. Cas* toria is the Children's Panacea—the Mother's Friend.

Castoria.

Castoria Is an excellent medicine for children. Mothers have repeatedly told ibo of its good effect upon their children."

DR. G. C. OSGOOD, Lowell, Mass.

Castoria is the best remedy for children of which I am acquainted. I hope the day is not far distant when mothers will consider the real interest of their children, and use Castoria instead of the various quack nostrums which are destroying their loved ones, by forcing opium, morphine, soothing syrup and other hurtful agents down their throats, thereby sending them to premature graves.1'

DR. J. F. KiNOHiZiOB, Oonway, Ark.

LINE.

NORTH BOUND,

No. 58 Mall No. 54 Express Express

.,8:10 a. ..6:18 p.m 8:80 p. m.

SOUTH HOUND ..

No. 51 Express 9:44 a. No. 53 Mall 5:20 p. Express 8:11 p. in

Good connection made at.Terre"Haute*for the South and South-west. Trains £run through to' St. Joseph, Mich., making good connection with C. fc W. M. for Michigan points.

,T. C. HDTCH1NSON, Agent.

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On ulght trains connecting with Vestibule Train* at Bloomlngton and Peoria to and from MisBourl River, Denver and Pacific Coast /,

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tlcularB. JAMES BARKER Geii. Manager. G. P. A., Chicago Chicago.

TRAINS AT CnAWFORDSVILLB.

GOIKO WBBT. GOING KAF7 No 9—Mail, 9:15am No 8—Mall, No7—Mail (I).12:39am ino 13—Mall(d)...l:5rmu No 17—Mail l:S8|m No 18—Mail l:0Siir. No 3—Express.,.G:45pm No 2—Kxprefs...9:l5 n*i

G. E. ROBINSON, Agent.

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Z. N*. A. & C. MONON.

NORTU BOUND.

No. 4—Night express 1:55 a. No. (j—Fast mail 1:80p.m. No. 44, Local Accommodation 2:40 p. m.

SOUTH BOUND. .1

No. 3—Night express ... .1:S5 a. m. No. 5—Fast mall 1:10 p. m. No. 43 Local Accommodation 9:1D a. m.

AH trains stop at Linden, Ladoga and Hoaohdale. l/ocal freight carry passengers.

REMOVED.

riiompsonf& Gates

Have removed their stock of Hew and Second Hand Goods to the room formerly occupied by Watson & l'ursel, just south of their old location.

Castoria.

Castoria is so well adapted to children that I recommend it as superior to any prescription known to me."

H. A. Archir, M. D.,

Ill So. Oxford St., Brooklyn, N. Y.

Our physlcttW ta the children's department have spol» of their experience in their ontstah practice with Castoria, and although we only have among our medical supplies what is known as regular products, yet we are free to confess that tho merits of Castoria has won us to look with favor upon it."

The Centanr Company, TT Murray Street, New York City.

-THE-

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