The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1899-02-02
I taken as conclusive evidence that the
scheme has slipped a cog somewhere.

taken as conclusive evidence that the
scheme has slipped cog somewhere.
When the movement for the organtza-
ton of the trust was first started Mr..
Flint-who was selected to engineer the
Schme because of his success in launching
the United States Rubber Company on its
successful career-approached the propri-
etors of the India Rubber World to secure
the support of their paper for the enter
prise. Right here he encountered an I'M
Jointly owned and edited by H. C. Pear
son and John r. Dunlap. While Mr..
Pearson was inclined to look with favor
on the proposition, Mr.. Dunlap declared
he would have nothing to do with it. He
was alternately cajoled and threatened,
but all to no purpose. Finally Mr.. Dun
lap, in view of the difference Of opinion
on the subject prevailing between him
self and his partner, offered to sell his
share of the paper outright. This did not
suit Mr.. Flint, however. He desired above
all things to retain the services of Mr..
Dunlap with the paper-perhaps fearing
that If he should dispose of his share in
the publication Mr.. Dunlap might imme-
diately start a rival sheet, which would
be bound to antagonize the rubber con-
solidation scheme.
According to the story going the rounds
in this city, a plan was concocted to
Mr. Pearson paid visit to the office of
Mr. Flint in New York. After a brief
consultation with Mr.. Flint and S, P. Colt
of the United States Rubber Company
scheme, Mr.. Dunlap was sent for. and
asked to state his position. Just what
occurred is not stated, but a stenog-
rapher, secreted in the room, is said to
have made a verbatim report of all that
transpired. With this report as evidence
Mr.. Flint is alleged to have threatened to
attempting to extort money under threat
of making injurious publications"
The following day representative of
or frio d In hor IJc
Mr.. Dunlap that If he would withdraw his
opposition there would be no prosecution
and that the events of the preceding day
should be considered as never having
taken place-in other words it was "all a
blunder." AS an earnest of his sincerity
or the sincerity of the trust he repre-
tensive advertising in the India Rubber
World If it would adopt a friendly atti-
tude, and actually submitted an order for
oyer $4,000 worth of space in the paper.
lures of the trust. however, and the
agent of the monopoly left the sanctum
with the understanding that it was to be
war to the knife
One OF the arguments used by the pro-
moters of the new scheme is that the
combination of the leading manufacturers
OF rubber goods will enable the trust so
formed to Immediately reduce the price
OF its products ia per cent, by reason of
reduced operating expenses. The history
of the United States Rubber Company is
this idea. 1t is further claimed that by
reason of its greater capital and increased
facilities, the trust could control the price
of the raw product, and thereby shut out
the competition of the smaller concerns
operating independently. The opponents
of the trust point to the fact that with all
It's immense capital the United States
Rubber Company has not been a glorious
success, 1naSmuch as a number of fac
tories which it was compelled to buy at
fabulous prices paid larger dividends than
the trust can ever hope to pay. For in
stance, the Converse Company paid 81 800, :
600 in single year on capitalization of
5000 900, which is more than the trust
which absorbed it has paid in any one
year with a capital of $40 900 900. 1t is also
claimed that the rubber business offers
irresistible inducements for money MAX
ing for persons with comparatively small
capital, and that trust or no trust, inde-
pendent factories are bound to continue
to exist and flourish and that as one is
bought up another will take its place. In
fact the business of starting factories for
the purpose of selling the same to the
trust may soon come to be recognized
and nr0fitn hIa Industry