The news & observer., 1897-02-19
Flint aAC davemeyer Sill on
the Rack.
HAvEm1teR'S lMPUDENCE
THE ROBBER COOLLY ADMITS
DESTRUCTION OF DEED.
WATERING OF RUBBER STOCK
Twenty Millions of 1t Represent What
Is Called "Good WiIl"--The Wall
Paper Trust Comes In tor
Ifc Share
Its Share.

New York, 1S.-Senuator Lexow's
legislative trust investigation committee
resumed its session this morning ana
the first witness called was Charles IL.
Flint of the United States Rubber Com
pany. I'll,
Mr.. Flint was asked if he had provided
the data which he promised at yes'e'-
days hearing to produce to-day
Nr. Flint said he was unable 70 secure
all the information demanded III fesat'I
to the figures relating to the wages paio
by the United States Rubber Company,
and competing companies.
He testified that the United States
Rubber Company owned the Brookshav-
en concern but denied that the plant nad
been dismantled by the company ordef.
They we're buying at other points. In
answer to questions as TO why the oe-
sauket factory was closed after It's pur-
chase. the witness entered on an eSpiaha-
tion showing that the United States
Rubber Company had paid and was now
having higher wages than was any other
concern n the rubber business.
Witness said that the Company had
shongbt il desirable to develop the con-
Germ that cost 81 100000 at the expense
of the Setauket factory whose plant COST
S150,0o0.
Mr.. Flint denied that there was an in
crease in prices of from 20 to At per cent
and said that the Company since its con-
solidation had paid only little over one
per cent on it's common stock.
'4I,o put it plainly, Mr.. Flint, is not the
entire general stock of the company wa
teredT'
''Not as specific condition
SNOW. does not a great deal of your
stock represent only water, which your
company's directors expect some way TO
develop into something which may pay
aividends?'
"We have our trade marks and patents
they are very valuable-just as valu-
able as brick and mortar"
"Isn't it lust this practice Of issuing
a large amount Of stock for what IS
called good will that has brought thes.
individual combinations into disreputeE
Mr. Flint denied that the United States
Rubber Company was in disrepute
Mr.. Flint said the amount of common
stock issued representing good will was
equal to S2O,000,000
By way of explanation, Mr.. Flint
stated that one Of the objects of consoli-
dation was to enable the property to be
put on the market in a realizable form.
Mr.. Flint was excused after recess and
President Havemeyer, of the American
Sugar Refining Company, was placed on
the stand.
sDo you know where the original deed
of the American Sugar Refining Compa-
ny is?' he was asked
''No, sir. / do not
Mr.. Havemeyer then said the figures
showing the distribution of the original
stock of the company were cut out by
Mr.. Parsons by permission of the Arnold
committee at the time of the inyestiga-
ton by the Senate committee.
''Yes. sir. / say that the figures have
been cut out at the time of the Arnold
investigation by Mr.. Parsons, without re-
gard to anything before or since. The
figures were not replaced to my knowl-
edge
"Who had the custody of the mutilat-
ed trust deed?"
"Mr. Parsons
"Why was it that you and your as
sociates were so solicitious to conceal
these figures" !,
"A hundred people agreed to have that
done I am not responsible The deed
should have been destroyed"
"Why?'
at should have been destroyed be-
cause in my judgment it was that deed
that caused all the trouble and hostile
legislation and this persecution"
"You mean prosecution, don't you?"
'sNo, i say persecution. All the fuss
mas been over that deed. If that deed
had not been in existence the investiga-
tors would have been fighting the air
All this thing has been swept aside by
the Supreme Court.
"Wlat do you mean by thatY"
"Oh, / thought You were conversant
with things that have gone before in this
matter by former Investigations. ! mean
that we have had this investigation be-
fore, and that one judge has ruled that
we were a criminal monopoly, and an
other judge that we were not. The Su-
preme Court swept all this away by de-
elaring that we were not a monopoly, in
asmuch AS we did not stifie competition"
Assemblyman Warner here asked about
She books OF the original trust, and Mr..
Havemeyer said that he supposed they
went out Of existence in 1891.
"Were they destr0yed?
81 don't know; ! don't keep the books"
''Will you swear they were not de-
stroyedW
81 won't swear to anything | don't
know. ! am particular about my oath"
'1ow do you account for the rise in
sugar since the consolidation
'By the inordinate demand"
"Are You in favor of investigation? ?"
eyes, sir: we court the fullest inquiry as
to the methods Of the American Sugar
Refining Company"
ahe original deed Of trust?'