The evening herald. [volume] (Shenandoah, Pa.) 1891-1966, 1897-02-19
THE WAGNHTES'
TESTIMONY ]
Before New YOrKs Trust Investigation
Committee.
FLINT AND HAYEHEYER AGAIN
How Consolidation Enables the Companies
to Issue Millions Of Dollars in watered
stoek-Mr. Havemeyer Again Ex-
presses His Views on In
vestigation.

New YORK, Feb 19.-In his examina-
tion before the Lexow committee yes
terday Charles r. Flint of the United
States Rubber company, read statis-
tlcs showing the wages paid by the
United States Rubber company were
in excess of those paid by the Sc
tauctet concern, which it had been as
serted was rendered imperative by the
United States company. He was asked
Does not a great deal Of your stock
represent only water. which your COM
| pany's directors expect some day to
1 develop into something which may pay
I dividends?"
] we have our trademarks and pat
! ents-they are very valuable, just as
valuable as bricks and mortar"
Isn't 1t Just this practice of issuing
a large amount of stock for what is
called goodwill that has brought these
individual combinations into disre-
pute?"
Mr.. Flint denied that the United
States Rubber company was in disre-
pute
How do you explain that the dear
public is only admitted to share in the
benefits after the nominal value of the
stock is increased?"
well they could not share in It un-
til the consolidation was made"
How do you explain that your
stockholders increased in five years
from 800 to SCOOP"
~ desire to say that the present ex-
ecutive committee Of the United
States Rubber company hold about
$1O,00O.C0o of this stock"
That is TO say, the original insiders
hold $l0,000000 and that $29 900. 600 has
been disposed of, the capitalization be-
ing S39,65O, ,OOO?"
All the large original stockholders
still hold about the same amount of
stock Today an isolated property. If
1t had to be sold might not bring 60
per cent of its value" explained Mr..
Flint
Another important witness was
Henry o. Havemeyer president of the
American Sugar Refining company.
He was asked if he knew where the
original deed of the company was. but
pleaded ignorance.
Mr.. Havemeyer then said that the
figures showing the distribution for
original stock of the company were
cut out by Mr.. Parsons by permission
Of the Arnold committee at the time
of the investigation Of the senate com
mittee.
DO you mean that?"
Yes sir. 1 say that the figures
nave been cut out at the time of the
Arnold investigation by Mr. Parsons.
without regard to anything before or
since. The figures were not replaced
to my knowledge.
Why was it that you and your as
Go fs.HH
these dgures?"
"A hundred people agreed TO have
that done. 1 am not responsible; the
deed should have been destroyed"
"Why?"
1T should have been DESTROYED he
cause, in my judgment, it was that
deed that caused all the trouble and
hostile legislation and this persecu- /
You mean prosecution, don't your"
NO, l say persecution. All the fuss
has been over that deed. If that deed |
had not been in existence the investi- |
gators would have been fighting the
air All this thing has been swept
aside by the supreme court"
What do you mean by that?"
thought you were conversant with |
things that have gone before i'm This
natter we nave led this Investigation /
before, and one judge has ruled thai.
we We're criminal monopoly and am /
other judge that we were not. The sn-
preme court swept all this aside bv I
declaring we were not a MONOPOLY in
lsmuch as we did not stiAe competi- /
ion"
MI Parsons was next called, He
having been custodian of the
original deed of trust, but declared
hat he Gid not know where 1t was
now.
Henry Bum, president Of the Ma
ional Wall Paper company, was the
leXt witness. He told Of the raising
If the capital stock from S14 600. 600 to
Is, 600 600, and admitted that the agree
nent with buyers limited them to the
ale of the company's product
The witness further testified that
vail paper had been reduced 10 per
.ent' and that wages had not been
educed but was more continuous
lnce the consolidation The number
II hands in the employ of the com
any In the United States is 5 OOO. hale
hat number being employed in New
FORK state.