The Savannah morning news., 1901-04-09
TALKED OF TRUSTS
INDUSTRIAL COMMISSION GETS
LIGHT ON SUBJECT.
TRUSTS ARE GOOD THINGS
SAID TREASURER OF BIG RUBBER
COMPANY.

MIR. Flint Told How the Big Corpora
tions Are Financed and why They
Get Together - Economy, Better
Management and Saving in Many
Directions, Especially in Travel
ing SaIesmcn-He Fears TarIn War
and Suggests Freer Trade-HIs
Figures show the Industrials to BE
Paying Well.
Washington, April S.-Hearings on the
question of combinations OF capital were
begun by the Industrial Commission to-
day and probably will be concluded this
week. Prof. jerks of Cornell University
is conducting the examination of the wit
nesses.
Charles r. Flint, treasurer of the
United States Rubber Company and a
leading factor in a large number of cor
porations, testified to-day regarding the
financing of combinations. He said that
the reasons which dictated these combi-
nations were economy; a desire to trans
form unmarketable properties into securi-
ties of value; to provide against the effect
of death and disability of management
and to avoid the serious and disastrous
results of war between separate concerns
in the same industry. These combinations,
duction in the amount of stocks carried,
Resulting in a saving in interest, insur-
ance and shop wear. Combinations avoid
the effects of over production by regulat-
ing the production to the actual require
ments of the country.
In most cases, according to Mr.. Flint,
saving is effected by a reduction in the
number of travelling statesmen. The Uni
ted States Rubber Company, for instance,
had reduced the number of its travelling
men 25 per cent. The Rubber Goods
Manufacturing Company effected
less saving, because It's
policy has been to sustain to a greater
extent the individuality and independence
of each of its component concerns. He
said that the only material saving ef-
fected in purchase of raw material was
in instances where concerns could buy
large proportion of the worlds product.
Mr.. Flint stated that, in his opinion,
the only danger to international trade
now was that of a war of tariffs. He
advocated with qualifications such mod
iication of our tariff policy as would tend
to freer trade. The large consultations,
he said, are in a position TO gain an ad-
vantage through centralized manufac-
ture and any legal discrimination
against trusts in general would
be most disastrous to the
laboring interests and might create an
industrial panic. He regarded as impos-
sible any worldwide combination in any
industry. but in event of it's practicable
ty and of the effecting of such a combi-
nation he believed that other conditions
being equal the manufacturing of the
particular class of goods would be done
in the countries where the merchandise
could be produced to the best advantage
with relation to the market for it, He
apprehended danger in extending the
reciprocity idea too far.
He produced figures on AZ industriaIs.
not including the Standard Oil and found
the earnings on their capitalization aver
aged over Z per cent. and on the present
market price of the industry over II per
cent. indicating, he suggested, that the
profits of these combinations were being
very widely distributed.
similar computation regarding 81
railroads, he said, show average earnings
Of "A per cent. on market prices and a
trifle more than that on the par value OF
securities