CONDITIONS IN PARTICULAR INDUSTRIES, 253

company on a firm financial basis and since 1906 it has paid regular
and substantial dividends on the ordinary shares.
American Thread Co.—In March, 1898, the American Thread Co.
was incorporated under the laws of New Jersey, and took over the
businesses of 14 American concerns, manufacturing spool, crochet,
knitting, mending, and other cottons, including in some cases allied
branches of the industry. All the common stock was acquired by
the English Sewing Cotton Co., which thus gained the entire voting
power of the corporation. J.&amp; P. Coats (Ltd.) subscribed for 100,000
shares of the preferred stock. In 1899, the American Thread Co.
purchased 125,000 ordinary shares of the English Sewing Cotton Co.
The three managing directors of the English company had seats on
the American board of directors, Through the alliance of these three
great units—J. &amp; P. Coats (Litd.), the English Sewing Cotton Co., and
the American Thread Co.—complete domination over the world’s
trade in sewing thread seemed to have been attained.
The United States Government began suit on March 3, 1913, against
the American Thread Co. and others, including the English Sewing
Cotton Co. (Litd.), alleging a conspiracy in restraint of trade in violation
 of the Sherman Act. A decree was entered by consent June 2,
1914, against these companies and other defendants, in which they
were adjudged to have formed an illegal combination, which was ordered
 to be dissolved and certain practices pursued by them were forbidden.
 The American Thread Co., the Thread Agency, and the
English Sewing Cotton Co. (Ltd.) were restrained from acquiring or
holding after January 1, 1915, any interest in the stock or other securities
 of the Spool Cotton Co., J. &amp; P. Coats (Ltd.), Clark Thread
Co., Clark Mile-End Spool Cotton Co., Geo. A. Clark &amp; Bros., J. &amp;
P. Coats (Inc.), James Chadwick &amp; Bros., and Jonas Brook &amp; Bros.,
and so long as one or more of the defendants in the one group had the
same controlling stockholders or any of the same officers and directors
 as one or more of the defendants in the other group both groups
were enjoined from engaging in interstate trade within the jurisdiction
 of the United States. The second group was also restrained from
acquiring any interest in the first group. J. &amp; P. Coats (Ltd.) was
required before January 1, 1915, to dispose of any interest it held in
the American Thread Co. and the English Sewing Cotton Co. to persons
 not its stockholders or officers. This dissolution decree did not
affect the financial relations between the English Sewing Cotton Co.
and the American Thread Co.,—the former still owns all the common
stock of the latter. In the year 1913-14 the American Thread Co.
paid 18 per cent on its common and 5 per cent on its preferred stock;
1'Macrosty, op. cit., p. 135.
:Moody’s Manual of Corporation Securities, 1902, p. 1336, and Macrosty, op. eit., p. 131.

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