The San Francisco call., 1897-02-20
LeXow Committee Continues
is Investigation of
Monopolies.
Operation OF the Contract of the
National Wall Paper
Company.
Manner in Which the United States
Rubber Company's Stock Was
Distributed


Joint legislative committee appointed to
investigate the existence OF trusts and
monopolies in New York resumed its ses-
sions this morning. 1t was 1880 o'clock
when Senator Le1ow raped for order.
Henry Burn, president of the National
Wau-paper Company, who was on the
stand when the session adjourned yester-
day, was recalled.
Mr.. Burn produced a copy of the con-
tract made with agents, or the factors
agreement" as Senator Lexow termed It.
One OF the clauses requires agents to ham
die only the goods OF the National Wall
paper Company. In reply TO a question
the witness said that his company had an
agreement with the la Dor unions by which
the employees worked eleven months OF
the year.
docs the agreement hold through the
United States?"
les, sir; In every one of our factories"
Mr.. Burn said that when the company
was organized it comprised twenty-four
sub-companies and seven competing fac
tories were left out. Ten factories were
closed within two years after the consoli-
dation. This, the witness admitted.
caused a decrease of 10 per cent in the
because they were making inferior goods
He said that the rate OF wages was not de-
creased after consolidation except 10 make
them uniform. The company had abso-
Iutely ceded everything required by the
labor union. The witnesses said they en-
ployed % per cent more statesmen and
more bookkeepers than before consolida-
tion; that prices 10 the consumer had de-
creased.
Chairman Lexow here announced that
be would now iake up the United States
Rubber Company affairs. The other
witnesses in the wallpaper business were
excused until this afternoon.
Charles Z. Flint was questioned about
the distribution OF the stock of the United
States Rubber Company 10 the various
companies.
Il want TO state" he said, that the
United States Rubber Company has, as
corporation, no knowledge of the distribu-
ton OF stock by the bankers. | know,
however, that the stock was distributed
on the basis OF preferred stock for tangible
assets and common stock for trademarks,
patents" etc.
Mr.. Flint handed in the original Sim
mons report which the dis tri button of
stock was made, bnt the schedule of values
asked for did not accompany it. In reply
to question, he confessed that he had not
tue lnlOIIlatlOn WHICH WOQlO explain the
increase IN the price OF rubber shoes since
the consolidation. Mr.. Flint denied that
the United States Rubber Company had
become the footb bail OF specuiators.
lie said 1t would regulate prices OF goods
as they did prices o. railroads, because
conditions varied 30 much. He did not
think 1t would be wise move for the
State to buy up all industrials and run
paternai form of government, and he saw
10 other way by which the State could
regulatepr ices.
The promoting contracts showed that
$4CO, 900 had been paid for promoting the
rubber comb nation. OF which Mr.. Flint
received 100000, the banking comnanv
500 900 and Mr.. Earl $4,000 Nj Flint
said the object OF the com bination was 10
promote the natural law OF trade. He
then entered into a long discourse as to
the object OF Capitalization of the indus
tries.
The afternoon session was held In CITY
courtroom, the Aldermanic chamber.
where the committee had held its preyi-
Gus sessions, being required for a meeting
OF he Board OF Aldermen.
Mr.. Flint took the stand. de said that
the prices to-day were lower than for nine
years previous TO The organization of the
United States Rubber Company. He also
stated that the price list was lower now
than ever before.
How can the prices be lower when the
prices you give are higher ?"
Because the discount TO lobbers was
higher before the organization OF the com
pany."
The explanation of the witness caused a
laugh.
That means, does it not, that there was
a greater profit to your organization ?''
Mr.. Flint dissented. He declined to
admit that there was any agreement be-
tween the United States Rubber Company
and the bankers previous to Septemb Der 6,
1892.
An adjournment was taken until to-
morrow.