The Portland daily press., 1897-02-20
AMERICAN TOBACCO WILL ESCAPE.
Trust Commission Will Not Reach That
Concern

New York, February 19.-It is said the
Lexow trust Investigation committee
will take up the alleged coal trust some
day next week. As the committee must
report to the legislature March !, it will
hardly have time to take up the affairs
of the American Tobacco Company.
Chairman Lexow announced that he
would take up the United States Rub
Der Company's affairs, and the other wit
nesses in the wall paner business were
excused until afternoon. Charles X.
Flint was then called to the stand he
said these combinations offered the only
means in the country of afford1ng cheap
prices to the consumer and r6sulGeu III
the best interests of the country IN the
main. They also wete the means OF
keeping up the price of labor. witness
denied that as one OF the proprietors oI
the COIN bination he received twice as
much DIS any of the other promoters. In
answer to a question he eaid he thought
S400, COO was fair compensation Tor pro-
noting the combination. witness
| claimed that prices today were lower
than for nine years. previous 20 bne
org anization of the United states hup-
ber.Co.
"You testified that the banking house
| which promoted the combination hh1
come to the United States company ana
offered properties. Do you Wish TO
change your testimony
s'rhe banking house had an arrange
| ment to distribute the stock to the snare
holders. There was no understanding be-
! tween the United States Rubber compa-
! ny ana the bankers. The bankers had
an arrangement with the stockholders.
| The report of the Simmons committee
was read to the witness and he was
asked if, IN the face of the report, ne STILL
persisted that there was no agreement.
He finally admitted that there was an
agreement after September 6, 1892, when
| W. b. Rollins & Co, bankers, offered
the proE critics for sale
!, Assem- blyman Bedeli tried to get Mr..
| Flint to admit that there was an agree
ment letween the United States Rubt err
COMPANY and tie bankers. Mr. Flint
asserted that if there was be had no
know ledge OF it. Assemblyman War
| ner tried TO get MIR. FLINT to admit there
was an agreement between the United
States Rubber Company and the bank
ers prior to September 6, 1922, but failed.
The agreement between the United
States Rubber Company and the BANK
ers. it was brought out, stipulated that
| this bankers should devote their energies
in the future to the acquisition of addit-
| ional ru hber manufacturing concerns in
the United States and Canada for the
| company.
chow do you explain that the agree
ment is not In the line OF MONOPOLY"
asked Senator Lexow.
"From the fact that the United States
| Rubber Company controls only Go per
cent of the rubber trade. =
."Now, is it not practically the fact that
you have formed a combination that
does not fear competition?"
''No. SIR
James B. Ford was called. He said he
was vice-president of the United States
Rubber Company. He said the rate of
wages paid by the United States Rubber
Company was as great as before the con-
| solidation.
"You were subpoenaed to produce
| schedules that contained the date of pdr
chase of the various properties. Have
you got those schednles9"
"No. sir, don't know where they
are. -
The witness said the Meyer Rubber
| Company of which he was treasurer, was
| capitalized at So, 900, 600. The stockholders
| of the MeJer company got 5000 United
| States Rubter stock for every 500 Meyer
| company stock. The Meyer stock paid
no dividend in 1899, 1861 or 1880. The
Meyer company had pHid from 20 to 90
Tho committee looked astonished at
this statement. Mr. Ford said the compa-
ny paid no dividends for the four years
preceding the consolidation because it
was increasing the value of it's pro-
ducts and getting better machinery.
Henry Burns, president of the National
Wall Paper Crompany, was recalled. He
testified that his company had no rebate
system in operation from 1898 to 1895.
Tba comnaDy offered q discount now to
jobbers. The witness denied that job
beers were compelled to discontinue bust
ness because the rebates had been cut
off. The witness said the supreme court
had passed on the rebate agreement and
organization of the company and de-
clarsd both legal. He admitted the prices
of competitors were based on the prices
of the National Wall Paper Company.
An adjournment was taken until to-
morrow morning.
Erio1tfuI Holocaust in CLEVELAND.