The San Francisco call., 1897-02-19
Puts Searching Questions
to Representatives of
Combines.
Mr.. Flint Makes Admissions
Damaging to the Rubber
\ Monopoly.
d. 0. Havemeyer Tells as Little as
Possible About the Sugar
Trusts Methods.

NEW YORK, N. Y, Feb. Ex-senator
Lexow and his colleagues OF the joint
legislative committee appointed to inves-
tigate the existence of trusts and monop-
olies in this State met again this morning
In anticipation Of an interesting session
there was large attendance OF the out
side public.
Mr.. Havemeyer was in attendance at
the funeral OF the late William ?. ST.
John, but Lawyer Parsons assured Sena-
tor Lexow that he would be present after
recess. Mr.. Parsons said he had been
authorized by meeting of the board of
directors of the American Sugar Refining
Company to present the agreement in re-
gard to the purchase of the Philadelphia
concerns and the information regarding
labor and taxes paid by the company, but
Senator Lexlow said the committee would
like to have Mr.. Havemeyer before the
committee before putting the information
in evidence.
Charles K. Flint then took the stand.
He was asked if he had secured the figures
with regard TO the wages paid by the
United States Rubber Company and COM
peting companies. Mr.. Flint said he was
unable to secure all the details, and he
was then asked if any one in the employ
OF the United States Rubber Company
had destroyed the facilities for the manu-
facture OF rubber on Long Island.
q know nothing about any such thing,
replied Mr.. Flint.
did the United States Rubber Com
pany destroy any property in Brook
haven?"
ttNat fo lypa
"Now, don't you remember that it was
one OF your agents that destroyed the
plant of the Brook aven company after
Mr.. Elbertson bought it ?"
II have no knowledge of such thing"
"Have you any branch OF the business
which provides for the destruction OF
property?"
~ can ascertain. l don't know"
Chairman Lexow tried to get Mr.. Flint
to adj NIT that whenever the United States
Rubber Company advanced money to fac
tories it did so for the purpose of con-
trolling the output and fixing the price Oh
the goods, but the witness would not see
il in that way.
The witness then gave statistics show
ing the wages paid by he United States
Rubber Company to its employees and the
wages paid by the Setauket company.
According to Mr.. ,Flint's figHres his com.
pany paid more than the Setanket COM
pany to its employees. He said that work
ers in first-quality rubber shoes made 81
TO So day and cutters get from So to
$3 50.
How is it that the Setauket factory
cannot compete with the United States
Rubber Company, although it pays 25 per
cent less for its laborP'
sgWalI We pl aim haf ora oil
out OF our wage-earners than they do, al
though we pay them 25 per cent more.
We have also more labor-saving devices
and more economy in production"
why is it when you increased your
facilities, as lar as your plants were con-
Setauket, where labor was % per cent
cheaper?"
I'VE thought it best to increase the
plants at our larger factories. Further
more, our specially is the production OF
hgh-grade goods"
Senator Lexow smiled at this reply.
Mr.. + int," be said, pray do not adver-
tise your goods any more
Witness ad limited that there were more
men employed by the independent COM
panies before consolidation and that the
prices of rubber shoes had increased
since.
Nov, 20 put it plainly. Mr.. Flint has
UOL tue eullIe general SLOCk Oh INC OnlIeu
States Rubber Company been what is
known as watered?"
Mr.. Flint paused a moment, and then
wen, on TO describe how the stock was
issued. "Our stock" he said was issued
for goodwill AMI to pay for properties"
Now, does not great deal of your
stock represent only water, which your
company's directors expect some day to
develop into stock which may pay Givi-
dends?"
1--WE have our trademarks and patents,
and they are very valuable-just as valu-
able as brick and mortar" said Mr.. Flint.
In reply to another question, Mr.. Flint
admitted that one OF the objects of the
consolidation as to enable the property
to be put on the market in a realization of
form.
"Then, to the industrial feature of the
enterprise is added the ability to dispose
OF its certificates of stock?"
Undoubtedly, SIR"
At this juncture Chairman Le1ow an
nounced recess.
A subpoena duces tecum has been is
sued on James Benford of the United
States Rubber Company. who has the key
to The safe deposit vault in New Bruns-
WICK, N. j., 10 produce the schedule OF
purchases and other papers asked for by
the committee.
After recess Fl. o. Havemeyer took the
stand. Witness identified a copy of the
agreement made by the knight Refining
Company Tor the sale of its property as
correct one. After witness had identified
copies OF the agreements with other COM
panles and declared a document showing
the amount OF taxes paid by the com pany
from 1882 to 1896 as correct, he sad he
thought that the statement made by
Mr.. Searles that the Brooklyn factories
OF he company produced 10000 barrels
per day was right.
Witness said his company paid in this
State lest year $33. 615 in taxes for per-
sonal. real and household property. He
also stated that about one-half of the pro-
ducing capacity of his company was in
this State. lie declared that his company
had as much raw sugar stored in Boston
as IN Brooklyn and twice as much in Phil
adelphla as In either OF those cities.
"How comes it, then, when half of your
producing capacity is in New York, that
you do not pay taxes on $50, 900. 000."
Il DO not see any relation between the
two things?"
DO you know where the deed of the
American Sugar Refining Company is?'
mo, sir; do not;'
Mr.. Havemeyer then said that the
hgures showing the distribution of tn
eft ~