Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1897-02-18
SUGAR AND RUBBER.
The Lsxow Committee jsmps iron The One
10 the 0lhsr, Tuesday.

New York. Feb. 11.--At the Legislative
committees inquiry into trusts anC
! noon. Mr.. Searles OF the Sugar Trust. said
there was very little profit In the bust.
ness for the five years before the trus,
was formed. He admitted that the con.
sumner had not received the full benefit oil
the decrease In the price OF raw material
He declared that the American Sugar Re.
lining Co.. Is not monopoly or quasi
company. he said, is In the interests OF
the consumer ana there Is no reason why
the state should interfere with Its bust.
ness In any particular.
Mr.. Searles said he had not given the
question Of the production Of the books
OF the company any consideration since
Yesterday. Mr.. Pars0n of the counsel for
the company. said the matter would he
laid before the directors. Thursday, and
an answer given the committees request
concerning the production OF the books.
searles said he thought there was as
much III not more labor employed now
than before the consolidation. and re-
peated that u was the London market
that controlled the price OF raw sugar
lawson N. Fuller was recalled and said
II the Sugar Trust was not formed to re.
duce expenses; he did not know what it
chinery employed now. and consequently
fewer men. After giving some further
testimony. Mr.. Fuller was allowed to go.
now take up the i i States Rubbsr
Co" The first witness was Charles X.
Flint. treasurer ana "a member of the
board of directors OF the company. The
concern. was organized in New Jersey In
iS2. with a capital OF EO.W0OD0. The New
brunswick 90. was acquired in the fall
Of lsy2 for 81, 00o.0oO. After the acquisition
committees appointed TO make a report
a. 10 the purchase of the properties.
They recommended the purchase of GER
tain properties for $22 0ODOOO. These firms
g0mnettnK with each other hpfnrk.
the consolidation. Witness said there
had been an understanding I'm the rubber
business in regard to the price for the
past - years.
What. then. was the object of the con-
Solidationy" he was asked
TO centralize manufactures and secure
economy by means of such ceniraliza-
tion." he replied.
Witness explained that the consolidated
companies controlled about 50 per cent.
of the rubber business and that competi-
ton was continued with the companies
doing the rest of the business. In lS93
his concern acquired four more COM
panies.
Why did you purchase those four COM
panies when you were utilizing only 80
per cent. of the capacity of the COM
panies you bought In 1922 asked Mr..
We'll We wanted to have larger GEN.
tralization of business
What product did the four companies
purchased in 1888 cOntrol?'
About one-iifth of the product Of the
80 you now contfol about 20 per cent
of the entire output of the country?
II should say from 60 to s. per cent.
Witness said the policy of the company
had been to earn as much as it could law
fully for it's GOO shareholders. There
were 5000 preferred stockholders. 5000
common stockholders. the original num-
Der being 600.
Witness could not give the exact value
of the stock of the New Jersey Rubber
co. at the time of the consolidation. hut
ne knew ii was much less than the stock |
issued. He knew that the aggregate CAP
ital stock of all these corporations would l
not be equal to So, Co., 600
In reply to a question, witness said that
since 1893 the company had acquired the
Goodyear Rubber Glove Co. and India
Rubber Co.
Were these competing in prices
against you?"
Yes. sir" |
And that is one of the reasons you
purchased them?
THAT may be one way of looking at it. |
They made very excellent goods and We
wanted their business"
In reply to another question, witness |
said that three companies had been
closed since the formation of the United |
States Rubber Co. They were closed |
You have closed. then. % per cent. of |
the total capacity you have acquired?"
No sir: think about per cent.
At this point the committee adjourned |
until tomorrow.