The morning news. [volume] (Savannah, Ga.) 1887-1900, 1897-02-18
RUBBER TRUST ON THE RACK.
THE LEXOW COMMITTEE TAKES UP
ANOTHER INDUSTRY.

Capitalization of the Various Com
panies That Were Merged Into the
Trust COmbine-The Trust Issues
$26,OOO.OOO of stock on Them-The
Trusts Treasurer Proves Very
Willy Witness-Thc National Wau
Paper Trust to he Taken Up To-
day.
New York, Feb 17.-The legislative COM
mittee investigating trusts and monopo-
lies in this state resumed its session this
morning.
Charles r. Flint, treasurer of the Unit
ed States Rubber Company, again took
the stand. Before beginning Mr.. Flints
examination, Mr.. LeXow announced that
the affairs of the National Wall Paper
Company would be taken up tomorrow.
Mr.. Flint was asked if he had any of
the documents concerning the organiza-
ton of the United States Rubber Com
pany and produced the certificates of Cr-
ganization of the company. Mr. Flint
then gave the capitalization of the varl-
Gus companies that composed the United
States Rubber Company. The Elkan
Candee, he said, was organized in 1912,
with q capital of S600OO0 the Goodyear
Metallic Rubber Shoe Company in 1Si3.
capital $1,000, COO; Meyer Rubber Company
in 1874, capital 100000; New Jersey Rub
ber Company in 1870. capital 100000; New
Brunswick Rubber Company in 1919, capt.
tai $500, 900; American Rubber Company in
1877, capital $1,0O0,OOO; Boston Rubber Com
pany in 1888. capital $80OOO0; Wyoming
about 1886, capital $4OOO 900; Rubber Manu-
featuring Selling Company in 1891, capital
100000.
How much stock of the United States
Rubber Company was issued for these
companies?' asked Senator Lexow.
In round numbers about $26, 100000, re-
piled Mr.. Flint.
Witness said the properties had been val
ued for stock issue purposes by commit
tee of appraisers whose reports had been
accepted. He had no personal knowledge
of the matter and no suspicious that ficu-
tious values had been placed on any of the
plants. witness diSciaimed the distinc-
lion assigned to him by the chairman OF
being the leader that produced the comb
nation. Chairman LeXoW found much
fault with Mr.. Flints manner in testify
ing, charging that he clouded his replies
by too much explanation. Witness replied
that his experience as a witness had beer
limited and he found it difficult to give
direct replies to involved questions.
The fact was evolved by Mr.. Lexow'
questions that the rubber plants embraced
in the original combination and acquired
afterwards Dy purchase were pdlQ IOf II
stock, and that no money was used. Wit
ness himself, previous to the combination
had not been engaged In the manufacture
of rubber and had no interest in that bus
mess beyond a small amount of stock il
one company. He could not tel withou
consulting the records what he received
for that small interest. The rubber com
pany paid the bankers commission o
half million dollars lin stock) for putting
its stock on the market
Mr.. Flint disclaimed any knowledge o.
he fsaa1 sNEt1
of the company He could not answer Mr.
LexOw's questions as to closing down V
rlous companies at different times, or The
reasons therefor, nor about the discharge
of manufactured goods by the trust Wit
ness was of the opinion that the only way
the price of labor could be maintained II
this country was by the Capitalization o
labor
To-day" he said, "the American wag,
earners are enabled to sustain rates o
wages by the existence of superior organ
ization Of manufacturers"
Il think the only way in which thi
wages can be kept up is by the centrali
cation of manufacture and the economy
| that results from superior organization
| in connection with labor-saving machn
| cry. BY means of this Capitalization thu
| American wage Garner can competi
against cheap labor countries like JapaI
| and China"
Mr.. Flint also stated that they had man
ufactured more goods than was de
| manded
us it not a fact that you have ad
| vanced the price of rubber shoes iron
$l.90 to $3.50, and that the price now 4
| $2.55?''
Il don't know anything about that"
At this juncture a recess was taken Mr.
Lexow excusing MIR. Flint until tomorrow
After recess the committee took up tn
| soda syndicate, a combination recent,
| formed.
The testimony of witnesses examine,
| showed this trust has a capital o
| $2,000,000. Its methods of business an,
the reasons for its existence are about tn
same as those of the sugar and rubber com
| bines.
The operations OF the concern, however
| have been confined chiefly to the states o
| New York and New Jersey.
|
| YOuNG pEOIIIEs, IINION