252 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE.
The English Sewing Cotton Co.—Outside of the Coats combination,
there were 20 thread-making firms in the United Kingdom, about 40
on the Continent, and two large and many small firms in the United
States. Reckless price cutting among these outsiders in Great
Britain resulted in their combination in 1897 as the English Sewing
Cotton Co., the outgrowth of an Association of English Sewing Cotton
Makers, formed in 1888 for trade purposes. The new combination
embraced 14 firms, including three subordinate companies, one of
which was in France and one in Montreal. Eleven of the 14 concerns
were sewing-thread manufacturers, among them Sir Richard Arkwright
 &amp; Co. The other concerns included were a firm of linenthread
 manufacturers, one of sewing-silk manufacturers, and a firm
of silk throwsters. These were included for “trade reasons.”
J. &amp; P. Coats became associated with the combination through
acquisition of £200,000 of ordinary shares. It was the purpose of
the new organization that the combining companies, in order to
retain their individuality, should be formed into subsidiary limited
companies, all the sharés of which were to be held by the English
Sewing Cotton Co. At least one representative of each of the old
firms was to remain in responsible management of his branch, and
the board of 17 directors contained representatives of all but one of
the separate firms.
The Glasgow firm of R. F. &amp; J. Alexander, formed in 1892, an
active competitor in Central and South American markets, was
absorbed. In 1899 the business of L. Ardern of Stockport was
purchased and monopoly of the British thread industry became
almost complete.!
Prior to the formation of the Coats combination in 1896, the
Central Thread Agency had managed the sales of the four concerns
which were brought together in that combination. t+ This central
agency continued after the formation of the combination and controlled
 the selling machinery of the constituent concerns without in
any way interfering with the manufacturing or corporate functions
of the company? In 1900, following a disagreement between the
Coats Co. and the Sewing Cotton Co. over an alleged violation by the
latter of a sales apportionment agreement for foreign markets, the
Sewing Cotton Co. consented to transfer the foreign sales business
of its numerous branches to the Central Thread Agency. A few
years later the home selling business was similarly taken over.
In 1902, owing to internal dissensions and charges of mismanagement
 and inefficiency, a reorganization of the English Sewing Cotton
Co. was effected which practically put the company under the tutelage
of J. &amp; P. Coats. The new management took steps to place the

ia Macrosty, op. cit., pp. 120-131, 2The Economist (London), Dec. 2, 1899, p. 1695,