The San Francisco call., 1897-02-18
Rubber and Soda Monopolies
Engage the Lexow
Committee.
Mr.. Flint Tells Of the Elasticity
of the Syndicate He Rep.
reSentS.
How Its Capital Stock Was Stretched
From $4,3 900 TO $26, 100000
by Absorption.

legislative com mmlttee lnyestig gatlng trusts
and monopolies in this State resumed It's
session to-day. Charles F. Flint of the
United States Rubber Company again
took the stand. Before beginning Mr..
Flints examination Mr.. Lexow announced
that the affairs of tue National Wall
Paper Company would be taken up to-
morrow.
Mr.. Flint was asked if he had any
OF the documents concerning the
organization of the United States
Rubber Company, and he produced the
certificate of organization of tie COM
pany. Mr.. Flint then gave the capital
ization of the various companies that
composed the United States Rubber Com
pany. The capital of the various COM
panies absorbed was 81 800, 600, for which
$26, 600, 600 stock of the United States Rub
ber Company was issued. Mr.. Flint said
he had no personal knowledge as to
whether proper price had been paid for
the properties for which the $26 600, 900
was issued.
Chairman Lexow became considerably
angered twice when Mr.. Flints answers
10 his pointed questions were somewhat
evasive and he demanded ''yes" or mo"
in sharp tones. Mr.. Flint admitted that
he was interested in the Lycoming Rub
Der Company, but he could not tell what
he got for his interest. He admitted
that the United States Rubber Company
paid bankers a commission of "a per
cent, or $500 600, for selling the stock of
the various companies.
WAS it paid in cash?"
mo, sir; in stock"
will you produce data in regard TO
that transaction after recessP"
II will endeavor to do so."
Now, Mr.. Flint, we don't want to be
too severe in regard to this matter, but we
think that this question of capitalization
is most important and whether your COM
rany is New jersey company or a New
York company, we must have the. fnfor-
nation we seek. " said Senator Lexow.
~ will try to getit for you"
"Have you any knowledge OF these
agreements of the trusts with the agents ?"
asked Senator Lexow.
II want 10 say
Chairman Lexow got angry at this, and
rising in his seat waved the document in
front of the witness. Have you any
knowledge of this agreement he
shouted.
Not in detail" answered Mr.. Flint,
who looked scared.
That's all; let it go at that" And Mr..
Flint breathed easier.
Mr.. Flint said lie did not keep himself
posted as 10 the workings of the manufac-
tories and did not know that the factories
had been closed down. restricting produc-
ton and thus throwing many hands out
of employment, sometimes in the dead of
winter.
The witness was entirely lacking in in
hnr1
many details Of the business. He was of
the opinion that the only way the price of
LABOR could be maintained in this country
was BIZ the Capitalization OF labor By
means OF this Capitalization the American
wage-earDer can compete against cheap
labor countries like Japan and China. He
also stated that his company had manu-
factured more goods than was demanded.
us 1t not fact that you have advanced
the price OF rubber shoes from 81 80 to
So 60 and that the price is now 81 55?'
Il don't know anything about that
At this iuncture recess was taken,
MIR. Lexow excusing MIR. Flint until 10
A. n. tomorrow
After recess the committee took up e
soda syndicate, a ombinauon recently
formed.
William J. Walker was the first witness.
He said he was connected with the finn of
Church & Dwight Company of Wall street
who produce blcarbonate of soda, sal soda
and saleratus. The business of the firm
has been limited prin cipally to the States
of New York and New Jersey, but busi-
ness in the soda trad has been conducted
in every State in the Union. The COM
pany had agreements with grocers.
"Can iobber handling your goods and
not having an agreement compete with q
jobbe- handling your goods and having an
agreement"
Witness replied that he did not believe
he could. He explained the purpose of the
agreement, as follows:
"The wholesale grocers came to US and
told us they could not do business unless
they were protected as to price. They said
If we did not protect them they could do
no business. The wholesale business was
a nuisance to US and we did not wish to go
into it. That was in 1889"
The witness said there was no idea of
driving other goods out of competition
and declared that his company bv this
agreement had limited the sale of bicar-
Donate TO the two brands furnished by his
company. He admitted that there was
some competition in the sale of bicarbon-
ate OF soda. but refused to acknowledge
that his company had a monopoly in the
sale of that article in this State.
Charles G. Pope, the junior member of
the firm of J. Monroe Taylor & Co, testi-
fed that the factories agreementin regard
to the sale of bicarbonate had affected
their business considerably. The witness
further said that but for the factories
agreement bicarbonate of soda and other
kinds OF soda would sell from TO ~ cents
pound less than at present.
An adjournment was here taken until
tomorrow.