New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1897-02-19
The New SMALL SIZE OF
CASHMERE BOUQUET
TOILET SOAP
is within everybody's means. Ask for It,

adding TO it, among the general pupnc' .
Mr. Flint started TO give one of those expiana-
lions that SO irrtated the chairman yeste."ay. ~
Mr. Lexow was not willing to hear 1t. ana pu, ."e
oros,,o, again in n slightly modified form. Why
Is it," he asked that Immediately following 'i','
increase of nominal values. the dear pup''o IL o.
lowed to come into the enterprise! ~
.1'brough consolidation the value of an indus-
trial property is increased. BY the hs'ihs Vi .
curities the securities become better known anu
can be sold from hour 10 hour That mas 'He ''
fect of giving securities additional value
But does not that have the effect OF chang'hs
legitimate industrial pursuits into speculation
not that the object Of these consultations
NOT FAMILIAR WITH OTHER ENTERPRISES
"I cannot saw ! am not familiar with the con-
dtions that prevail In other industrial e"''
prises as / have never had any interest IN 'hei"
will you explain how 1t Is that the s'oehno'ueis
of the original properties comprised in the kupp.l
consolidation have increased in five years from 800
to 5000"
II desire to state. in answer TO that question: 'a'
the present members of the Executive Comnh.'ee
hold about slO,OOo,OOo of the stock OF the oh,'eu
States Rubber Company The rest OF the stock nas
been disposed Of by parties DESTROYS OF dlsposlhs
of il. ...,,. ,a,o ,,s,osea ~ the nroperties IN
the manner stated by you? They have received me
stock in the first instance and then disposed OF IL !
mo. that is not true in general. The fact Is this
Only in the case of one Pariy mas dnere made
large sale Of stock which he held but those VINO
are now managing the company have ho,: nf ,be
Executive Committee are not specula,ing IN tne
stock In fact. ] may state that those members
hold about as much stock as they ever held
well, | did not put that question to YOU as
did want to inquire into the private Transactions
of the mana cement OF the company. But, accoro-
ing MSgS ha nn out of 81
Executive Committee and those on the inside have
disposed Of So SassT Of o of stock
now hold about much they originally
That they have not disposed of their holdings Is
about the best evidence of the belief in the value
"But is it not fact that Immediately after this
this stock among the public. excepting. of course,
10y yourself and other members of the Executive
III is true that there was certain amount Of
eTea fGr bn no
to sell the shares by the holders as Is evdenced 10y
the fact that practically only one large holder dis
let me AJAX You again. Is it not the general
under the pretence Of supposed economics moving
from such consolidation. TO secure the interest In
The form in WHICH Mr.. Lexow put this question
somewhat upset the Witness usual eGuanima Hr
the committee the fact that trusts were formed for
to hearing Mr. LexoW speak of the economical OBJ
jec hypothesis He did not ike the expression o
would he rest satisfied when the Senator sad that
Of he eo %1uf use M the Flint aso
objected to the qualification OF supposed econo,
mics" and finally the matter was amicably settled
by Senator Lexow framing his question so That II
read upon the strength of proposed economies"
M n h said al % your idea
that is the general purpose Of these concentrations
I will admit that undoubtedly one purpose Is 10
give the stock market value on the part OF par
ties desiring 10 dispose OF Their interests: hnerc -
that in Of death the stock could be easily dis
posed Of
| lions there enters as an element Of substantial
strength the desire to sell the securities OF these
| corporations 10 the general pubiicF
HOW THE WITNESS EXPLAINS 1T.
There does undoubtedly enter the desire to put
| their property in a marketable. realizable form
To-day the isolated property If 1t had TO be sold
suddenly might not bring 90 per cent of its value;
but If that property is listed security, or a
security generally dealt. then perhaps. 'i's full
| value or very nearly its full value. could be OBJ
| tanned
| "Then TO the industrial feature of these enter
prises is added as important element the ability
TO sell and dispose of the certificates and STOCK OF
YES that is undoubtedly an element of substan-
| tial value and purpose.
And that purpose enters into the volume Of
stock issued. does IT mott?
The stock issued should represent the actual
value of the property. and | infer in the case Of
the United States Rubber Company that the Sim
issue took into consideration only the actual value
of the properties. 49,. -..... A., $3.50, 80,
understand that the common stock was issued for
goodwill, which represents about S2ooooon?,
value contained in what is generally called
| goodwill The committee considered suppose.
= that the goodwill was. it really is, an element
let me ask you if it is not fact that for every
preferred share issued there was added a bonus OF
one share of common stock which represented
, goodwill
'As you will see by looking at the Simmons Com,
| mittces report there was round amount OF
the the in Teard the
! 'Canno, YOU answer my question any closer than
that
is it possible that you. as the treasurer of tho
| which the stock was issued?
| Il have already stated that do not
the basis for the issuance of this stock?'
Il have handed you the report covering the whole
do you really mean TO say that what is con.
tanned in this report is all that you know about the
tr2nsaction?
NO KNOWLEDGE OF DETAILS.
Il know, of course the general plans Of oreaniza
| ton, but as TO the details have no information.
know that the s2c.ooooOo of stock issued fer the
properties and goodwill was given upon the recon-
mendation Of thoroughly well-infoimed and compe
tent men,"
| outntly what the policy Of the company in the
issuance Of stock for the purchase Of goodwin"
| There could not have been any policy"
What was the capital of the Woonsotket factor,
| which closed down."
Ths ss eSPta o EHs less than the trust STOCK tina
"can you ten us what a,., MAS paid to the woon
NO, but / could furnish you with the informa
| ton"
| Are the stockholders divided, do the holders
| of preferred stock hold common stock well?'
ITO some extent"
| what is the actual difference"
| IL do not know; but in round figures there wer
1900 holders of preferred stock and 5000 holders o
| common stock"
| Mr. Lexow then reverted to the Simmons repor
| which the witness had produced for the committee
| Apparently the information he desired regarding
| the dividing up OF the trust stock among the sub
! sidiary companies not contained in the report
| naSmuch s
| as to the whereabouts of the data upon which IN.
| report was founded Mr.. Flint repeated his testi
| mCny that they slowed away in the deposi
| vaults of New Brunswick trust company, which
could only be opened in the presence Of two officer
| of the company. He promised the committee how
ever. that he would endeavor TO obtain these data
| was postponed until this morning The usual ad
journnent for luncheon was then taken.
THE AFTERNOON HEARING
H. O. Havemeyer was present In company will