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Enclosures. My Lokd, — British Consulate, Chicago, 19th August, 1902. I have the honour to forward, enclosed herewith, a short report on the combination of firms manufacturing harvesting machinery. I have, &c, Thomas Ekskine, Acting British ConsuL His Majesty's Principal Secretary of State for Foreign Affairs.
Combine op Hakvesting Machine Companies. The recent combine of the five large harvesting machinery makers is of great interest to the British manufacturers of agricultural implements, as it will, probably, bring with it a decrease in price in all exported machines. The capitalof the new combine or "trust" is placed at £24,000,000, which is a very conservative estimate of the value of the combined businesses. This amount is to be all common stock, but if at any time further capital is required this will become preferred stock at 6 per cent., and the new capital will be the common stock. The five firms at present employ over one thousand five hundred men to supervise the five thousand travelling salesmen and canvassers, and it is said that under the new conditions the services of three-fourths of these can be dispensed with. The plan of having only one man in the largest towns, instead of five, and letting the buyer come to the salesroom where all the different firms will have their machines, will also lessen the amount of correspondence and the number of employees in the offices. A great reduction will also be made in advertising, and the elaborate calendars, which cost a great deal to produce, may be abolished. It is expected that altogether, notwithstanding the rise in price of raw material this year, machines will be marketable at a reduction of more than 10 per cent, on the present price, as it is stated that it costs more to sell a machine under the present methods than it does to manufacture it; and as there will be no competition in the United States to require reduction in prices to obtain sales, the companies could stand a still further reduction in the export trade. The combined companies manufacture mowers, reapers, reapers and binders, maize reapers and binders, and hay-rakes (horse). They do not manufacture any other implements. The inventions have been covered at different times by 11,258 patents, and the exports are more than half of all agricultural implements. It is said that a branch factory will be built in Canada to save the duty. There has been little change in the total export of agricultural implements during the last three years; but, while the ploughs and other implements have increased in numbers, harvesting machinery has fallen off £500,000 in value, and great efforts will be made to regain this trade. Of the five firms, two have their factories in Chicago, one turning out over 300,000 and the other 250,000 machines ; one in another part of Illinois produces 50,000, one in Wisconsin 40,000, and one in Ohio 75,000. The five companies produce over 700,000 machines and employ 20,000 workmen. It is stated that the competition for the trad,e has been very keen, and that cuts of £3 have been made by rival agents to make a sale. Under the new conditions it will not matter which machine is sold, and no inducements to buy will be offered.
No. 42. (General.) My Lord, — Downing Street, 19th September, 1902. With reference to my despatch of the Bth May last, and to your reply (No. 67) of the sth ultimo, relative to the expenses incurred in connection with cases of extradition from the United States of America, I have the honour to state for the information of your Ministers that the United States Acting Secretary of State has addressed a note to His Majesty's Charge d'Affaires at Washington intimating that the American Government has not agreed to the arrangement proposed by His Majesty's Government, which he states could not be agreed to without radical changes in the existing laws. I have, &c, J. CHAMBEKLAIN. Governor the Eight Hon. the Earl of Ranfurly, G.C.M.G., &c.
No. 13. A.-1, 1903, No. 14.
Date. Prom To Subject. ,9th August, The Acting British Con- Foreign Office ... 1902 sulate, Chicago The formation of a "Combine" among agricultural machinery manufacturers.