The Wilmington daily Republican. (Wilmington, Del.) 1890-1902, 1897-02-19
MACNATES' TESTIMONY
Before New York's Trust Inyesti-
CATION Committee. ,,.-
FLINT AND HAVEMEYER AGAIN.
How Consolidation Enables the Companies
to Issue Millions Of Dollars of Watered
stock-Mr. Havemeyer Again Expresses
His Views on Investigations.

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-
tics showing the wages paid by the
United States Rubber company were
In excess. of those paid by the se-
taucket concefn, 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
develop into something which may pay
dividends?"
I'VE 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
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 inoreased?"
"Well, they could not share in 1t un-
til the consolidation was made"
How do YOU explain that your
stockholders increased in five years
from 800 to 6,OO0?"
Il desire to say that the present ex-
ecutive committee of the United
States Rubber company hold about
$10,OOO,OOO of this stock"
THAT is to say, the original insiders
hold $10.00O,OO0 and that $4,000, 900 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, il
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
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. l say that the figures
have been cut odt 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
'ociates were so solicitous to conceal
.hese figures?"
"A hundred people agreed to have
hat done. l am not responsible; the |
Iced should have been destroyed"
WHY"
1T should have been destroyed be-
cause, in my judgment, it was that
Iced that CAUSED all the trouble and
hostile legislation and this persecu-
ion"
You mean prosecution, don't your"
No, l say persecution. All the fuss
las been over that deed. If that deed
lad not been in existence the investi-
sators would have been fighting the
Iir. All this thing has been swept
side by the supreme court"
What do you mean by that"
Il thought you were eonversant with
hings that have gone before in this
natter. We have led this investigation
efore, and one Judge has ruled that
'e were criminal monopoly and an
ther judge that we were not. The su-
rene court swept all this aside by
eclaring we were not a monopoly in
smuoh as we did not stife competi-
on"
Mr.. Parsons was next called. He
Omitted having been custodian of the
riginal deed of trust, but declared
hat he did not know where it was
ow.
Henry Bum, president of the Ma
onal Wall Paper company. was the
ext witness. He told of the raising
the capital stock from s14. 900, 900 to
5000 OO0 and admitted that vie agree
ent with buyers limited them to the
lle of the company's product
The witness further testified that
all paper had been reduced 10 per
mt. and that wages had not been
'duced but was more continuous
nee the consolidation. The number
hands in the employ Of the COM
my in the United States Is 5000. half
lat number being employed In New