The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-02-17
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COMMITTEE.
RUBBER TRUST ON THE CARPET.
o""ries H. Flint, Treasurer of the
company, Called on to Tell What
He Knows.

Fl1nt, treasurer, and ]. B. Ford. and
M. Z. Martin, directors of the United
states Rubber company, were in wait
Ing 10 be questioned by the joint Iegis-
IatlVe committee on trusts today, but
were excused until noon.
John E. Searles, secretary and traae-
urer Of the American Sugar Refining
company, when he resumed the witness
cnalf' was greeted with the question
by Chairman Lexow:
Have you those figures with YOU.
Mr.. Searles?"
Il haYe," he replied
Senator Lexow then questioned Mr..
Searles as to the margin of profit be-
tween the raw and refined material
during the five years preceding the
creation Of the Sugar trust.
MI. Searles in reply, said that the
average margin Of profit for the five
years preceding the trust was 1854 Of
cent per pound, and during the five
subsequent, it was 196 per pound.
is 1t true that the average price
OF the raw material after the trust was
formed, dropped 1857 per cent a pound.
While the charge for the refined increas-
ed 1.76 per pound?"
Undoubtedly SIR
Mr.. Searles contended that as tha
years preceding the trust were wears
Of disaster in the sugar business. there
could not be any fair basis Of connpari-
son In regard to the figures for the five
years succeeding the formation Of the
trust. He denied that there was a
seTenfold capitalization of the stock
Of the company.
At this point, Senator Lexow said he
thought it right to take up the state
nlent made by Mr.. SearIes yesterday.
in which he charged that the investi-
cations Of the present kind drove
capital out Of the state instead Of in
Vlting 1t. He therefore propounded a
o ng question to Mr.. Searles, but the
latter adhered to the purport of his
statement Of yesterday.
In reply to another question. Mr.
Searles said he saw no reason why the
state should interfere with the business
OF the American Sugar Refining COM
pany, and in the same breath intimated
that there were a number Of companies
and monopOlies in this city that had
no legal right to exist.
Have you given the matter of pro-
ducing the books Of the company any
further thought, Mr.. Searles?" asked
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. Shepard, who promised to have the
books in the possession of the com
m1ttee last Friday. Lawyer Parsons
disciained any knowledge of Mr. Shep-
ards promise, but said he could an
sWer authOritatively after the direc-
tors meeting tomorrow. The commit
tee then conferred, and Senator Lexow
said he would wait until Thursday be-
fore taking decisive action in the MAJ
ter.
Senator McCarron said to Mr.. Searles:
Il want to put hypothetical question.
Suppose that the fifteen companies
forming the trust had not been con-
soiidated, what would the price of Sd
gar be to the consumers ?"
1T would be dearer by about half
cent a pound responded the witness.
Senator Lexow wanted the figures
as to the amount Of labor employed
per ton Of output, but Mr. Parsons,
speaking for the witness, said he would
request Mr.. Havemeyer to produce
the desired data, whereupon Senator
Lexow said: Perhaps they We're de-
stroyed."
NOT PHILANTHROPIC.
Mr.. Searles said the company ne
represented was no a philanthropic
institution, but had always endeavoreI
to supply the consumer with sugar
at the smallest possible margin of prof
it to the American Sugar Refining COM
pany. a 10 per cent increase in vases
OF employees had been made after the
organization of the trust, and so re-
manned to this day.
Lawson N Fuller uyoc raooIIa1 ryL,
essential portion of his testimony was
in the statement that the refineries
before the advent of the trust gave
employment to $4,000 to 10000 people:
10000 to $4,000 of whom were dis
charged after the consolidation.
We will now take up the United
States Rubber company" said Chair
man Lexow, and Charles r. Flint.
treasurer of the company, on being
sworn, took the stand. He stated that
the company was Incorporated in 1892
with capital of $4,000, 900 under the
laws Of New Jersey; that the rubber
trust purchased the plant of the New
Brunswick Rubber company in the fall
of 1892 for $4,000 900.
After the acquisition Of that plant"
he said, there was an appraisipg COM
mittee appointed to make report as
to the purchase of other properties.
They made a thorough examination and
recommended the purchase of the Wy
coming Rubber company, the Meyer
Rubber company, of Midtown, n. J.;
the Elcan-Candee, of New Haven; the
Goodyear Metallic Rubber Shoe COM
pany, the National Rubber company,
the Boston Rubber company, the
American Rubber company and the
Rubber Manufacturing and Selling
company at Colchester, for So, 900 600,
which figures did not include all the
stock of the corporations named The
Woonsocket Rubber company and the
Marble Rubber company, of Wocn-
socket, were acquired in 1898"
Witness explained that the consoli-
dated companies controlled the entire
rubber output and the competition was
maintained with concerns in the trade
Senator I4exow said he had know
ledge that four instead Of two acquisi-
lions had been made in 1898, and wit
ness then recalled the purchase Of the
Lawrence Fielding Rubber company
and the Hammond Buckle Rubber com
pany.
THE total capitalization Of all these
concerns acquired was about $4,000
000," he added. With the acquisition Of
the four concerns, witness said. the
average output of the company was
from 60 to 65 per cent Of the total
product in the United States. The
number of stockholders had increased
from 800 to 5000, and an equal number
of preferred stockholders. Since the
organization it had been endeavored
to earn all the money they lawfully
could for their six thousand stocknold-
ers.
Witness could not recall the amount
of the capital stock Of the acquired cor
porations, but promised to furnish the