The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-02-19
ORIGINAL SUGAR TRUST DEED MU-
TILATED TO EvAADE, LEGIsLA-
TIVE CURIOSITY.
FACTS DEVELOPED BY LExOW.
THE VALUE OF THE DOCUMENT
DESTROYED DURING,A FORMER
INQUIRY.
RUBBER SHARES NOT ALL WATER.
Denial Entered by MIR. Flint I'm Re-
Spouse to a Direct Question on
the Point.

NEW YORK, Feb. 18.-The Iexow
committee tried conclusions with the
sugar, rubber and wall paper trusts
today at different times. With respecr
to the Sugar trust, 1t developed that
the original deed, desired by the COM
mlttee, would be Of no value, as the
ngureS were cut out Of 1t during a
previous investigation. Some papers
desired by the committee were pre-
scented, but others were said to be out
or existence. Mr.. Parsons, who multi
ated the trust deed under which the
Sugar stock was apportioned, was on
the stand, and admitted the fact.
1t was directly after the recess. the
morning having been devoted to the
Rubber trust, that the consideration
OF the affairs Of the sugar company
was again taken up. Henry o. Have
meyer and John e. Parsons, president
and counsel respectively Of the COM
pany, were present When the former
had taken the stand, he was asked a
number of questions covering ground
heretofore gone over.
DO you know where the original deed
or the American Sugar Refining COM
pany is?' finally Queried Senator
LeXOw.
No, sir, do not" was the reply.
Mr. HaVemeyer then said that 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 investigation by the senate COM
mittee. 49,
DO you mean that?"a
Yes, sir, l say that the figures were
cut out at the time of the Arnold in
vestigation by Mr.. Parsons, without
regard to anything before or since. The
figures were not replaced to my know
ledge" III
Who had the custody Of the mutt
lated trust deed?"
Mr.. Parsons
why was it that you and your as
s0clates were so solicitous to conceal
these figures?'
"A hundred people agreed to have
that done. l am not responsible, the
deed 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 your
mo, L say persecution. All the fuss
has been over that deed. If that deed
had not been in existence the investi-
air. All this thing has been swept aside
by the supreme court"
gu have been SubpOenaed to pro-
duce the original deed of trust?
Il don't believe it is In existence I
last saw it with Mr.. Parsons as GUS
tOdian."
DEED DESTROYED.
Mr.. Parsons was then sworn and
admitted having been the custodian of
the trust deed, not in a legal way, but
as counsel. He had no recollection of
having seen the portion of the deed
that was extracted and believed there
was no reason why it should have
been preserved. He had not seen the
deed since 1888. He said that at the
directors meeting the question of pro-
ducing the minute books had not been
considered. Senator LexoW then let
the other witnesses of the American
Sugar Refining company go and this
finished the probing of that company
Henry Burn, president Of the Ma
tional Wall Paper company, was then
called. He said he was not one of
the original incorporators Or original
directors of the organization which
was organized in July, 1892. The Ma
tional Wall Paper company was COM
posed of twenty-eight different COM
panies, about seventeen others having
combination had secured about IS per
cent of the business, Judging by the
machines they employed. They had 1888
machines, while there were only SO out
side the combination.
What was the capital stock is
sued?"
THE original issue was $4,000, 900,
subsequently raised to $27 ,000, 900 or
$2S, 900, 900. It was all common stock
and the corporation was not organized
in the state Of New York. The proper
distribution Of stock was arrived at
by calculating the profits of the
various concerns for certain years and
multiplied by sixteen. The OUTPUT of
| the consolidated concern in 1896 was
125.000000 rolls Of wallpaper. The con-
solidation brought about the increa Sc
Of labor in the various concerns"
Witness further testified that wall
paper had been reduced 10 per cent
and that wages had not been reduced.
but were more continuous since the
bad with the sellers or fobbers restrict
ed them to the sale of the product of
| the comhination. He had heard Of the
existence Of a wallraner trust or club
which was in competition with the Ma
tional Wallraper company. hut where
It was located or who composed it, he
did not know
On promise that Nv Burn would
produce certain statistics needed hv
the irouisitors Mr.. Rurn was excused
until 10 o'clock tomorrow morning.
FLINT UP AGAIN.
At the morning session Mr. Flint
was again on the stand. After some
preliminary questions regarding var
iOus purchases of plants, Mr.. Lexow
asked: How much of the capital stock
has been issued for properties now
! ClCsed?"
Less than 2 per cent of the total
capitalization Of the United States
| Rubber company"
ITO put it plainly, Mr.. Flint. is not
! the entire general stock of the COM
| Iany watered?"
Not as specific condition"
Now, does not a great deal of your
| stock represent only7J water, which
| your cOmpany's directors expect some
| day to develop into something which
may pay dividends?'
I'VE have our a trademarks and
| ratents, they are very valuable Just
as valuable as brick and mortar"
isn't it this practice Of issuing a
| large amount of stock for what is
called good will that has brought these
individual combinations into dis
| repute?' + ~
Mr. Flint denied that the United
| States Rubber company was In dis
| repute. Il
How do you explain that the dear
| public is only admitted to share in
| the benefits after the nominal value
| of the stock is increased"
"Well, they could not share In it un-
| til the consolidation was made.
Flow do you explain that your
vtocLrbo1dorc iporaocp1 in five vaa nc