Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1890-03-16
THE CIGARETTE SUIT
BoNsAcK coMPANY's CLAIM AeAlNo !
ALLsN& GlNTeR INCORPORATED.
A Controversy Growing Ont Of the use
of the Machines OF tho Former
by the latter.

The suit instituted in the City circuit
Court on Friday by the Bonsack Aiachin'
Company against Allen & Ginter Incoipo-
rated grows out Of a claim OF the mt
that the former, when putting mp theL
cicarette-machines in Richmond, asreeu
with them upon price per thousand VII"
the further understanding that II the Don
sack ever allowed any other firm 70 ha'e
the machines at less price Allen 6 Ginter
should then be entitled TO terms Just a.
favorable. Now, It's alleged. other Ln az
facturers are paying less tham hiiVn g c;Dter
ter. Hence the refusal OF Alien -" ulh1oi
10 pay certain large sums OF money ~
manded bv the BOnsack Company, anu 'ho
suit is the result.
THIRTY CISrs TTn THoUaAND'
From the declaration fled in the case IL
appears that the ROYALTY which the hlch-
mond house was 10 pay was thirty cents on
every 600 cigarettes made WIN tHt M
chine and the claim Of S34, G61.0i for which
the suit ia brought is for the months Oh
October. November. December January
and February.
1t appears that in October tho number OF
cigarettes made was ZS,4OO,oOO' Oh MHI u
the ROYALTY was $3.50. This was suoISCt
( p.
attending the machines.
In November 25.9z0.00) are represented
10 have been made by this process ~
ROYALTY WAS therefore SIU6, leaving luo
balance Of 60. sos after subtractlng Sl,%'l
for tie pav Of hands operating tne ma
chimes. December 26fh an entry OF Ht'zt
j. made for protest charges on TWO slgn =
drafts drawn on Allen d Glnter. Wnich
were d1shonored by them and protested IN
the Richmond banks.
Tho number Of cigarettes made IN
Deccmberappears 10 have been |OVO.
Welding y revenue of SG.jl3.l0 had IL NOT
been disputed, afterpayiug Sl,OOito hahus
for tending the machines.
BIG MONTH.
January seems 10 have been the best
month Of all and the output was 3O.l is,oUO
cigarettes. The royalty tax was therefore
placed at 5 30if10. Deduct SIOlS ior
hands and vet there is - ,02G.f0 prott lett.
The last month embraced IN the bill was
February, when the business was not 50
large. The output was 2f.4l6.000, on Whlc1
II .333. 50 ROYALTY was charged. lake on
So ,2GJ Tor hands and the net proht claiIhed
isSG. O53 for the Bonsack Company.
There are entries Of one dollar Gach Ior
protest CHARGES on the 4th If January,
February l2lh. and March 18th.
These figures sum up S3i.6Gl.0l as INC
net amount claimed for ROYALTY. il 'ho
suit damages are placed at %4.uOO- q,
Allen Gluter make cigarettes hy mana
and IN exceedingly large numbers III add
ton TO those made by machine.
TIE TWO CONCERNS.
This suit will on its trial awaken con-
siderable public interest both because OF
the amount involved and the wealth ana
position Of the parties litigant.
} Tho IDpea.l ('fqQrgffO tOTnO1QN ls one
Of the most remarkable instances OF sue
cess and fortune which even these times
of understanding can point to. A lew
wears since a Virginia boy invented o
machine tor the manufacture OF cigarettes,
and from this invention las sprung the
great corporation which bears his name,
and which to-day has capital OF over
81 600 600 and its stock selling above par.
From the ROYALTIES paid by the manuiec-
turers of cigarettes for the use of it, ma
chimes il derives an enormous income.
The Allen g. Gnter incorporated - a
corpontion Of even greater wealth and
magnitude. IL j.. az IS well known, en-.
gagged in the manufacture and sale OF
cigarettes. It's principal Office and factory
| is IN this city. but 1t also has dcpOts and
branch offices all over the globe.
ITS JUSTICE DENIED.
The officials Of the Allen " Ginter In
corporatcd deny the justice Of the CLAIM
preferred by the Bonsack Company and
Insist that So far from owing that company
anything it Is i'm reality indebted 10 them
I'm morr than S100 900. and they will seek
in tins proceeding TO recover Judgment
acaius! tho BOu-ack Company for that
amount.
COUNSEL.
Mr.. A. II. Burroughs, of Lynchburc, was
the attorney for the Bouslck Cigarette
Company. who instituted the suit, but It Is
understood that IN addition to this gentle
man the company Viii be represented by
sevcral other prominent attorneys OF
Tvnr.burr. and associated with them one
Of the leading lawyers Of this city.
Major Legh t. Page and Mcssrs. Staples
& Munford have been retained by the Allen
& Gintcr incorporated and these gentle
men will represent the defendants when
tho cause comes on for trial.