United States Leather Company

The United States Leather Company (1893"The Big Sole Leather Trust," "The New York Times," May 3, 1893, New York Times (1857-Current file); May 3, 1893; ProQuest Historical Newspapers The New York Times (1851 - 2004) pg. 2] -1952), was one of the largest corporations in the United States circa 1900, and one of the original companies in the Dow Jones Industrial Average. [ [http://www.djindexes.com/mdsidx/index.cfm?event=showavgDecades&decade=1895 What happened to the original 12 companies in the DJIA?, djindixes.com] ] It was often referred to by contemporary sources as the "Leather combine""SURE TO BE A GO. Sole Leather Combine No Longer In Doubt. All But Two Of Large Eastern Tanners Are Agreed. It Is To Be Capitalized At $75,000,000. Control Of All The Hemlock Bark Secured. Western Packers To Be Given The Cold Shoulder." Boston Daily Globe, March 23, 1893, p. 8] or "Leather trust.".

It was originally capitalized at $130 million, approximately equivalent to $3 billion in 2007 dollars. The company was concerned, specifically, with "hemlock sole leather," which was made via a process that required extracts from large quantities of hemlock bark. It required two-and-a-half cords of wood to provide tannin for 100 hides. [Hergert, Herbert L. (1983), "The Tannin Extraction Industry in the United States," Journal of Forest History, Vol. 27, No. 2, pp. 92-93] According to the Boston Globe the combine obtained "a proprietorship of 75% of the bark property." In assessing the importance of the combine, the Globe noted that "all red leather is hemlock leather, and oak tan is used only on union leather, which cuts a very inconsiderable figure beside the hemlock-tanned product." Thus, the company "will have a pretty substantial hold on the leather industry of this country."

The company was headquartered in New York, with strong ties to Boston (then an important leather center). The first president was Thomas E. Proctor of Boston, and initial financing was by New York and Boston firms."The Leather Trust." "The New York Times," March 26, 1893, p. 11]

The formation of the company was seen as a reaction to problems in the tanning industry, and as a competitive move against the Chicago meat-packing interests.

In 1905 efforts began to reorganize the United States Leather Company as a subsidiary of the "Central Leather Company." The merger was held up by several New Jersey court injunctions. On September 24, 1909, the shareholders of the companies voted in favor of the merger, meeting the court's objections and completing the merger. [Dewing, Arthur Stone (1914), "Corporate Promotions and Reorganizations," Harvard University Press; p. 21] ["Leather Companies Merged Temporary Injunction Restraining Deal Dissolved," The Philadelphia Inquirer, September 25, 1909, p. 15]

In 1927 another reorganization merged the Central Leather Company into its subsidiary, and the reorganized company again took the name "United States Leather Company." ["Takes Name of Subsidiary," "The New York Times," May 21, 1927, p. 30]

In 1952, the company was liquidated, the only company of the original twelve in the Dow Jones Industrial Average to do so (as of 2007). [Siegel, Jeremy (2008), "Stocks for the Long Run," 4th Edition, McGraw-Hill, ISBN 978-0-07-149470-0, p. 49] It headquarters building, then at 27-29 Spruce Street in New York, was sold ["East Side Housing Sold To Operators," "The New York Times," August 12, 1952, p. 34] . The first distribution to shareholders, $10/share, was made on January 31, 1952 ["First U. S. Leather Distribution," "The New York Times," January 11, 1952, p. 34] . The company continued to hold assets of the Keta Gas and Oil Company.

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