The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1897-02-17
Was One Result of the FOrma-
ton of the Sugar Trust
According to Testimony Before
the LexOW Committee.
RUBBER TRUST AIRED.
1t Controls the Entire Rubber
Output
And Shuts Out All Competition
As Intended.

New York, Feb. 17.-At the Lexow
trust investigation yesterday L. N. Full
Ter was recalled. The essential part of
his testimoney was in the statement
that the refiners, before the advent of
the trust, gave employment to $4,000 to
10000 people; 10000 to $4,000 of whom
were discharged after the consolidation
I'VE will now take up the United
States Rubber company" said Chair
man Lexow, and Charles R. Flint, on
being sworn took the witness stand. He
said he was treasurer of the company
and was also a member of the board of
directors. He stated that the company
was Incorporated in 1892 with capital
of $50, 600, 900 under the laws of New
Jersey. In reply to Senator Lexow wit
ness said that the rubber trust pur-
chased the plant of the New Bruins
wick Rubber company in the fall of
1892, for 81, 600, 000
After the acquisition of that plant"
he said, there was an appraiSing COM
mittee appointed to make report as to
the purchase of other properties"
They made a thorough examlnation
he continued, and recommended the
purchase for $22, 900, 000.
What were the properties?"
1.-The Wyoming Rubber company, the
Meyer Rubber company of Midtown, N.
J.; the Elcan Candee of New Haven;
company; the National Rubber COM
pany of Bristol; the Boston Rubber
company, Franklin; the American Rub
Der company of Cambridge, Mass; and
the Rubber Manufacturing and Selling
Coat company at Chester. Witness said
the purchase at the figures given did
not influence all the stock Of the corpor-
alton named.
What concern did you acquire in
1892
''The woonsocket Rubber company
and the Marble Rubber company of
Woonsocket'
Witness explained that the consoli-
dated companies controlled the entire
rubber output and the competition was
trade.
Senator Lexow said he had knowledge
to the effect that four instead of two
acquisitions had been made in 1898, and
the witness then recalled that in addi-
ton to the two already named, the
Lawrence Felting Rubber Company and
the Hammond-Buckler Rubber COM
pany had been acquired at the same
time.
what IS the total capitalization of all
these concerns acQuired?"
About $40, 600 000."
With the acquisition of the four con-
Germs by the United States Rubber COM
pany, in 1898, the average output of the
company was from so to IS per cent of
the total product in the United States.
The number of stockholders had in
creased from 300 to 5000. and an equal
number of preferred stockholders.
Since the organization it has been
lawfully can for our six thousand stock
holders
Witness could not recall the amount of
capital stock of acquired corpora lions
but promised to furnish this data.
Mr.. Flint answered a number of queS-
tions as to the location of the company s
offices, books, etc.
Mr.. Lexow finally inquired if it was
not fact, while not so in name, that
Mr.. Flint practically is the head of the
United States Rubber company.
Il cannot claim that distinction" was
the smiling reply.
The witness said that in issuing
stock certificates for the S12, 900 600 he
merely carried out the instructions of
the board of directors
How many of the amalgamated con-
Germs have permanently closed?''
''Three-the Colchester Rubber COM
pany, the Franklin Rubber company,
and the Para Rubber company"
Now, will you swear that the ele-
ment of shutting off competition was
not considered when the SIP, 900, 900 worth
of stock was issued?''
They may have been one of the ele-
ments."
At this juncture an adjournment was
taken until 10 today when Mr.. F1int's
examination will be resumed.