The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-02-17
Chairman Lcxow, of the investigation
Committee, Again Asks for Rec
ords, but Is Rebuffed.
ANOTHER TRUST ON THE RACK
TREASURER FLINT TELLS ABOUT
THE BIG RUBBER MONOPOLY.
President of the Carnegie Company
SAYS Good Amor Plate Cannot
BE Made for $40 Ton.

secretary-treasurer of the American Sugar
Refinery Company, to-day again told Chair
man Lexow. of the legislative investigation
committee. that he would not produce the
books of the trust. In reply TO the ques-
ton. rs il not true that the average price
of the raw material, after the trust was
formed dropped .957 per cent. pound while
the charge OF the refined increased .151 per
cent. per pound?" Mr.. Searles said. I'm
doubtedly sir" Mr.. Searles contended that
as the years preceding the trust were years
of disaster in the sugar business. there
could not be a fair basis of comparison
placed in regard to the figures for the five
years succeeding the formation of the trust.
He denied that there was seven-fold cap
italzation of the stock of the company.
At this point Senator Lexow said he
thought il right that the statement made
by Mr.. Searles yesterday, in which he
charged that Investigations on the present
kind drove capital out of the State instead
of inviting it. should not go unchallenged.
Therefore he propopnded long question
to Mr.. Searles. but the latter adhered TO
the support of his statement of yesterday
In reply to another question. Mr. Searles
said he could see no reason why the State
should interfere with the business of the
American Sugar Refinery Company and in
number of companies and monopolies in
this city that had no legal right TO exist:
Have you given the matter of producing
tho NJ the askeS Senator
Lexow.
Il have not" was the reply.
Then your answer stands the same as
yesterday?
Yes. sir
Senator Lexow then called attention to
the statement of lawyer Edward NJ Shep-
ard, who promised to have the books in the
possession Of the committee last FRIDAY.
Lawyer Parsons disclaimed any knowledge
of Mr.. Shepard's promise. but said he could
answer authoritatively after the directors
Fmsetns I1-H Sat" dI nS oaid he would
wait until Thursday before taking decisive
action in the matter.
Senator McCarron said to Mr.. Searles: Il
want to put a hypothetical question. Sup
pose that the fifteen companies forming the
trust had not been consolidated, what would
the price of sugar be TO the consumers?
1T would be dearer by about half a cent
a pound" responded the witness. who
added that as much labor is employed per
ton of output now before the consolida-
ton.
Senator Lexow wanted the figures in that
respect, and MIR. Parsons, speaking for the
witness, said he would request Mr.. Have
meyer to produce the desired data, where
upon Senator Lexow interpoSedd mourning
In reply to Senator McCarron the witness
said the price of sugar per pound In 1883
was s.55c; in 1884, oslo; in 1887, 6.O4c; in
1855 715c: in 1889. 7.S0c; in 1890, 6.24c and
at present is cents pound 20.
Mr. Searies said the company he repre-
and had always endeavored TO supply the
consumer with sugar at the smallest posi-
BILE margin of profit to the American Sugar
Refinery Company. A 10 per cent increase
I'm wages of employees had been made after
the organization of the trust and so re
manned to this day. This concluded Mr..
SearleS's examination for to-day.
Lawson n. Fuller was recalled. The es-
sential portion Of his testimony was in the
-f1rd ant hat d.
vent OF the trust gave employment 10 Z5,OOO
TO 10000 people, 10000 TO 5000 of whom
were discharged after the consolidation.
I'VE will now take up the United States
Rubber Company: said chairman LexoW.
and Charles K Flint on being sworn, TOOK
the stand He said he was treasurer or
the company and was also a member OF the
board Of directors. He stated that the COM
pany was Incorporated in 1892 with a capital
of $50 900 900 under the laws of New Jersey.
In reply to Senator Lexow witness said
that the Rubber Trust purchased the plant
of the New Brunswick Rubber Company in
the fall of 1892 for s.. 600 Later so 900 900
was expended in the purchase of the fol-
lowing properties: The wyoming Rubber
Company the Meyer Rubber Company of
Midtown ~. J.. the Elcan Candee Company
of New Haven. the Goodyear METALLIC Rub
Der Shoe Company; the National Rubber
Company of Bristol r. l.. the Boston Rub
Der Company of Franklin, the American
Rubber Company OF Cambridge. Mass and
the Rubber Manufacturing and Selling
Company at Colchester. In 1898 the Woon-
socket Rubber Company and the Marble
.RuDDer company, VI NOOhSochcts were az
quired.
the effect that four. instead of two. acqui-
sitions had been made I'm 1893 and the. wit
ness then recalled that in addition to the
two already named the Lawrence Felting
Rubber Company and the Hammond
Buckle Rubber Company had been acquired
at the same time.
What is the total Capitalization of all
these concerns acquired?'
About $40OOO.0OO." With the acquisition
OF the four concerns the United States
Rubber Company in 1893. witness said. the
average output OF the company from
50 10 s. per cent. of the total product i'm the
United States. The number Of stockholders
had increased from three hundred TO three
thousand and equal number of pre-
ton IL has been our endeavor to earn all
the money we lawfully can for our six
thousand stockholders" he said THE pre-
fcrred stock is noncumulative. The wit
ness said that IN issuing stock certificates
fer the <l2 900 coo he merely carried out the
Instructions OF the board OF directors.
How many Of the anna lga mated con-
Germs have permane ltly clOsed?''
''Three-the Colchester Rubber Company
the Franklin Rubber Company and the
Para Rubber Company
Now. VIII you swear that the element
OF shutting off competition was not con-
sidered when the Sl2.0Oo0oo worth of stock
WIS isSucd2
That may have been one Of the ele-
ments.
At this juncture an adjournment was
taken Until 10 o'clock tomorrow. when Sir.
Flints eXaminats-N will be resumed
PRICE II TOO LOW.