The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1897-02-25
RUBBER TRUST MAN ENADED y
DIRECT ANSWER ABOUT
WATERED STOCKS.
.HAVEMEYER CALLS II PERSECUTION
Insists on Calling The Investigation Fer
secution and Acts in a PeeYlsh
Manner-The Wall Paper Trust
Is Called

comnony. and some of his business assO-
ciates were early on hand at the LeXow
investigation today and awaited the ar
rival of the committee, which was late
in assembling, as usual Mr.. Havemeyer
was attending Mr. st. Johns funeral put
was expected later
"The directors of the American Sugar
Refining company met yesterday alter
noon" said Mr.. Parsons. land the re-
quest of the committee that they furnish
agreements regarding the purchase OF
| Philadelphia sugar concerns ana ngures
regarding the amount of labor and taxes
paid by the company in New York was
considered.
Il was authorized by the directors, and
| do now present the agreement Ill regard
to the purchase of the Philadelphia con
Germs and the information regarding labor
and taxes paid by the company"
Mr.. Parsons handed in the documents.
| When Mr.. Flint :ook the stand he was
asked if he had provided the data winch
he was requested at yesterdays hearing
to produce at today's hearing. He re-
piled that he had only Il part of it.
| Nearly all the testimony elected in his
examination was negative. lie admitted
the United States Rubber company owned
all of the stock of the BroOkhaven Rub
the smaller plant had been torn down
or dsmantled.
| He did not know whether or not 900
| hands had been thrown out by the order
of the United States Rubber company in
| closing the BrOOkhaven concern last WIN
ter Witness denied that the Ietuket
concern, employing between 800 and
| 1900 hands. was rendered imperative at
the instance of the United States Rubber
| company.
1T is Il growing concern and was shut
down at present for needed repairs,
witness said.
He did not know whether or not the
United States Rubber company would be
likely to advance money to smaller con-
Germs to refrain from controlling their
output.
He said the BroOkhaven concern was
bought mostly because it could be bought
cheap, but he did not know what its stock
sold for. He added that other purchases
of plants were in contemplation. Con-
corning the purchase of the Zetuket plant,
witness said that labor was paid % per
cent less than in the United States Rub
Der company.
Senator Lexow asked if this was the
case. why the trust had bought and closed
the Zetuket mill. The witness did not
give a direct answer to the question, but,
entered on an explanation showing that
the United States Rubber company was
paying and had paid higher wages than
any other corporation in the rubber bust
ness. He said the company had thought
desirable to develop the concern that
cost $1.300,000, ut the expense of the
Ietuket factory, whose plant cost $780,
ynt hn
consolidation. had paid little over per
cent on its common stock.
"How much of the capital stock had
been issued for properties now closcd?"
asked Chairman LeXow.
LESS than per cent of the total cap
italization of the United States Rubber
company"
'To put it plainly, Mr.. Flint, is not the
entire stock of the company watered:"
Not as a specific condition"
"Now does not a great deal of your
company expect some day to develop
into something that may pay dividendS?'
I'VE have our trade marks and patents.
they are very valuable. just as valuable
as brick and MORTAR
Isn't it just this practice of issuing
large amount of stock for what is called
good will that has brought these indi-
vdual combinations into disrepute:"
Mr.. Flint denied that the United States
Rubber company was in disrepute.
How do you explain that the dear
public is only admitted to share in bene-
fits after the nominal value of stock is
incrcased?'
We'll. they could not share before the
consolidation was made
How do you explain that your stock
holders increased in five years from 300
to 6000?"
Il desire to say that the present excel
tive committee of the United States Rub |
Der company holds S10,O00,000 of the
stock"
That is to say chat the original in
siders hold S1O,O0O,0O0 and that 800
100000 has been disposed of, the capi- |
talization being $50, $50 OOO2'-
"All the large original stockholders still
hold about the same amount of stock.
To-day an isolated property. if it had to
be sold might, not bring 60 per cent of
its value" explained Mr.. Flint.
The fact is continued Mr. Flint. |
that the directors today do not want too
many eggs in their basket
Mr.. Flint said that the amount of COM
mon stock issued representing good will |
was equal to S2,0O0.00u
BY way of explaining. Mr.. Flint stated |
that one of the objects of the CONSOLE |
dation was to enable the property to he |
put on the market IN a realizable form. |
After recess, Henry O. Havemeyer and |
John +. Parson. president and counsel |
respectively of the American Sugar Re
hnlng company. were present. When |
President Hayemeycr had taken tbn
stand he was asked number of oupstionS
covering ground heretofore gone over,
10 you know where the original deed
OF the American Sugar Refining comma
ny Is hnally queried Senator Iey6w.
No. sir, do not was the reply.
Mr.. Havemeyer then said that the fig
ures showing the distribution of the
original stock of the company We're cut
out hy MIR. Parsons on request of the
Arnold committee at the time of the in.
vestlgation of that senate committee,
DO You mean that
Yes. sir. | say that the figures uoro
cut out Mt the time of the Arnold invns-
tgation of Mr., Parsons. without Relation
TO anything before or since. The fSnrna
were not replaced to my knowledge
VINO had the custody of the trust
Mr. Parsons"
Why was it that YOU and vour osso
fgures?" Ooioeai these
"A hundred people agreed TO have tbo.
zone; | am not responsible Tho dnod
should nave been destroyed. II sbould
nave been destroyed because. in NV ;vJn ;
mheht. II was that deed that causs Jul nm
me ths trouble and hostile legislation an, n ,
TINS persecution" ana
..IIou mean prosecution. don't vors.