The daily morning journal and courier., 1897-02-17
NOw ITS THE RUBBER TRUST.
Senator Lexow's Committee Inquiring Into
 Its Past and Present.


 New York, Feb, 16,-The special committee Investigating trusts took up the United States Rubber company. ! this afternoon.
 The first witness was Charles K. Flint. He said he was treasurer and member of the board of directors of the company The concern was organ ized in New Jersey in 1892, With a cap ital of $50000,0 900. The New Brunswick company was acquired in the fall of 1892 for $2 000, 0O0 After the acquisition of that plant there was an appraise- ment committee appointed to make a report as to the purchase of the proper ties. They recommended the purchase of certain properties for $22, 900, 000 l These properties were the Wyoming Rubber company, the Meyer Rubber company of Milltown, N. J., the Can dee company of New Haven, the Good year Metallic Rubber Shoe company of Connecticut, the National Rubber com pany of Rhode Island, the Boston Rub- Der company and the American Rub- Der company of Cambridge. A mortgage was purchased on the Colchester Rubber company stock and a majority of the stock of the Manu- featuring Selling company, The inter- est in these concerns were not pur- chased all at once. Blocks of stock were bought from time to time until | the entire stock was bought in. These | companies were competing with each | other before the consolidation. Witness said that there had been an under standing in the rubber business in re- gard to prices for the past twenty 1 years.
 | What, then was the object of con- solidation?" he was asked. "To centralize manufactures and to secure economy by means of such cen- 1 tralization," he replied.
 | Witness explained that the consoli- dated companies controlled 55 per cent. of the rubber business, and competition was continued with the companies do- 1 ing the rest of it. In 1893 his concern acquired the Woonsocket Rubber com pany of Rhode Island, the Marble Rub- | Der company of Woonsocket, R. l., the Hammond Buckle company and the Lawrence Felting company. About $l2,- | O0O, 900 worth of stock was issued. (Which makes the total capitaliza- tion $39, ,566, ,000," remarked the chair i man.
 l Witness said the policy of the com pany had been to earn as much as it | could locally for it's 5000 shareholders.
 There were 5000 preferred stockholders and 5000 common stock holders, the original number being 300, Witness
 could not give the exact value of the New Jersey company at the time of the
 consolidation, but he knew it was much | less than the stock issued.
 In reply to another question the wit ness said that the general account
 books of the company were kept in | New Brunswick, N. J. The majority
 of the directors meetings were held in
 New York, but meetings had also been
 held in Boston, New Brunswick and
 other places.
 i Tn reply to a question witness said
 that three companies had been closed | down since the formation of the United
 States company. They were the Col
 chester Rubber company, the Franklin
 plant, that belonged to the Boston Rub
 Der company, and the Para Rubber
 company. They were closed permanent 1 ly.
 You have closed, then, 25 per cent.
 of the total capacity you have ac- quired?"
 No, sir; I think about per cent" rr At this point the committee adjourn
 ed until tomorrow