The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-02-20
FLINT's EMISSIONS .GsilckED WITH
a ROUND TURF by THE
SENATOR.
REAL ADMISSIONS, FORCED.
WITNESS C0NEPELLEDs TO CONFESS
HE ENGiNEEREDfTHE RUBBER
TRUST REAL.
He WAS PAID HALF A MILLION.
The investigation May Include Other
Combinations lin Its Scopc If
Time Is Allowed.

NEW YORK, Feb. 19.-Charles r.
Flint, treasurer of the rubber trust.
who has been several times before the
Lexow committee, which is investisat
ing the trust, was back again today
and some real admissions were forced
from him. In answer to direct aues-
tions, and after he had been held up
with a round turn by the chairman.
he stated, in effect. that it was due
largely to his efforts that the rubber
trust was organized and that he or his
agents received half a million dollars.
He denied, however, that the combi-
nation was a monopoly, or that it had
been organized as a stock jobbing DEAL
Mr.. Burn, president of the wall paper
combination, was also a witness.
The inquisitors will meet tomorrow
morning at the usual hour, and the
inquiry will be continued Tuesday.
Wednesday and Thursday of next
week. The report of the committee
must be filed with the legislature
! March 1. In case an extension Of time
be granted by the Legislature, the COM
mittee will continue it's work and will
| look into the methods of increasing
capital and dividends in the coal, grain
and tobacco companies.
Mr.. Flint, when RECALLED, by way of
explanation said the distribution of the
stock Of the United States Rubber COM
pany was made by the bankers, but
that the corporation as a whole had
no knowledge Of the, matter. II knew,
however" said he, that the stock was
distributed on the basis of preferred
stock for tangible assets and common
stock for trade marks, patents, ETC."
Mr.. Flint then handed Senator
Lexow the original copy of the Sim
mons committee report, which had
been SO much asked for, saying he did
not know where it had been kept, that
it had been handed him today by the
counsel for the company
You were requested also to produce
the schedules of particulars that was
attached to this document. Have you
those schedules %
There were no schedules attached.
Ihat data was never in the possession
of the United States Rubber company.
have never even seen it,
ITO what extent was the stock wa
tered?"
There was no water in the stock 1t
was issued for value"
Were you not one of the actual Or
ganizers of the United States Rubber
company"
II would like to claim that distinc-
tion.''
stop. you've given us that too often
before" shouted Senator LeXow, as he
pounded the desk with his hand Now,
is it not a fact that you were the chief
promoter of the cornbine?"
II took an active part in bring
ing it about"
WAS not the whole combination a
speculate on?'' ..
Positively. no."
The propriety of combinations Of cap
ital from the standpoint Of public in
tereSts was argued at some length by
the witness and the chairman Final
ly Mr.. Lewow said: Now, Mr. Flint,
was it not the purpose of the promot-
ers of this combine to change it from a
legitimate concern to a Wall street
speculation?''
Mr.. Flint. without answering the
question directly, said no specific rule
can be applied to industries Of the ma
ture of the United States Rubber COM
pany.
In answer to Senator McCarron Mr.
Flint said that in his opinion it would
be unWise for the state to enter into
the manufacturing Of goods. The only
way the state can fix the price of man
ufactured products was to own the
plants. H'+as
WAS not the Offer of large amounts
of watered stock the inducement which
prompted the owners of Independent
companies to combineP"
mo, sir. 1t was brought about by
the natural laws Of trade and wise
counsel a9f
Witness admitted that he or his
agents received the largest commission
for the promotion ofsthe combination.
He thought the $500,000 they had re-
ceived a fair commission for the pro-
motion Of the United States Rubber
company fNL'
"How many men have been discharg-
ed since your organiZation?"
II can say positively we manufa ctur-
ed as many goods as we could sell, but
owing to the recent depression in trade
we could not run as fully as we wish
ed" .E
us that the best answer you can
give?"
Yes, SIR
How do you explain THAT your agree
n2ent is not in the line Of a monopoly?'
From the fact that the United
States Rubber company controls only 65
per cent Of the rubber trade.
DO you then disclaim it is in the
line of monopoly"
II have never Anticipated any such
condition." replied Mr.. Flint in guard
ed tone.
Mr.. Flint's testimony having conc,ud-
ed, Vice President James B. Ford, of
the United States Rubber company,
was called.
Have you the schedules referred to
in the testimony of Mr.. Flint, and
which you were subpoenaed to pro-
duce?" he was asked.
IT have not; have never seen them
and have no knowledge Of their where
abouts'
Mr.. Ford was subjected to a long ex-
animation in relation to the price Of
rubber boots and shoes, after which
he was excused and President Burn,
of the National Wallpaper company
was asked if he had secured the requir-
ed data and labor statistics referred
to in his examination at the morning
session. Mr.. Burn promised to furnish
the desired information te the commit
tee and was further examined regarding
the factors agreement. This ended the
work of the legislative inquistors for
the day, and an adjournment was taken
until tomorrow. II IL