Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1894-12-16
ITS POWERFUL GRIP.
Dealers Testify to The American Tobacco
Conpany's Supremacy.
HAD TO MAINTAIN PRICES.
..,,,.r. Who Sold at Iess Than Monopoly
Rates Were Refused Further
Supplies.
~ow York Ucrald.)

hanco Company IL MADE dcie""""' WI
,a,, ,,hbers In the paper-cigarette busi-
nex. alleging that the company IL mo-
ro.o,, Assigned 20 crush competition,
car,. nm again on Thursday In this city.
Tn. adjourned hearing was had in the
osces Of Ejnstein & Townsend. NO. "
Liberty street.
r,dge Frederick w. stevens, Of New
arx n. j.: Il. F. Einstein, and Felix IL
Levy. counsel for compliments, ana H.
v I5naabury. John II. Emery and Luz
clan ouein. counsel for defendant, were
present. Commissioner Clary was au-
,hor,zed 10 take testimony here.
Mr. Lew called Abraham I. Arih-
s,ronr NJ No as west Inst street., TO the
stand. His place OF business ne Saiu' W,
a, No 1a3 Eighth avenue. lie testiheu
.hat ne was a jObber In cigars, TOBACCO
ond cigarettes. and that he did business
with the American Tobacco COMPANY,
with whom he had contract. ne w.
shown a copy Of the contract puI "o",t
moi swear that he had signed Il. Ihen IL
appeared there were two cohtrac' el'lI
re- acknowledged he signed the secohi
ono q, June. 1894. He said an agent OF
ave company brought the document 10
hi,, ara he signed II without reading II
he merely glanced at H.
"vvere Won ever charged with vomiting
4he FIRST contractY" asked Mr. Levy
.syes. / had a letter from Mr.. Brown
secretary of the company. The purport'
10 the best Of my belief. was that 'hey
refused 20 consign any more goous 10
me. But we continued 20 buy goods rlgn-
nSc,5 7 went 10 see Mr.. Brown. lie
claimed there was party under me who
sold cigarettes below the price agreed
upon"
Then he was asked about a selling
nrice-list and he said he had received
one from the company. 1t was stipulated
mat their 5.cent goods should be sold at
$50 per thousand. Under this agree
fnent he received n rebate OF per cent
For seventeen days. however after re-
ceiving the complaint from the secre-
tary OF the American Tobacco com
many. he did not get the beneht OF tne
rebate: he had 10 send n check for the
fulI amount After he signed the second
contract he said he was not allowed TIE
per cent. rebate.
Mr Levy asked him If he had violated
the second agreement, and tie WITNESS
replied: =, 800.
ed with violating the second agreement
,ossph Resnck, OF No. 50 Canal street,
Is n iobber and retailer In the TOBACCO
business. He was a customer OF the
defendant company. with whom he signed
an agreement on March 2. 1892. He iden-
titled a COPY Of his agreement. the nrst
clause of which ran: THE selling prices
Mt all times shall be such as we may
fix On our selling list. and there shaH oe
no sales at lower prices than those ilNed'
on OF
many. brought him the contract. which inc
agent said he could sign or not, as ne
pleased.
"pld YOU not ask him." said Mr.. Levy.
what would happen If you did not sign
IT."
The witness replied that he wanted TO
read Il, but the agent said he had no
time to stay there for him 10 read IT,
In July, 1899 he received a letter from the
company which stated that he WesnlcD
would get no more cigarettes from II.
lie went 10 see Mr.. Sperry at No. 20
broadway. who was clerk in the cigar
cite department who told him that he
had been cutting the prices.
MIR. Lindabury here interposed with
the objection that his side objected 10 al
that testimony as irrelevant
THAT FIRE INSURANCE.
Witness then went on to say that he
had denied cutting prices and Mr.. Sperry
said ne should see MIR. Brown. which he
did a few days after Mr. Brown then
Told him that he had been selling the
cigarettes at less than the price fixed
by the company-s3.S0 per thousand. To
Counsellor Levy he said that . per cent.
of his profits came from the sale Of
cigarettes. He had not been charged
with violating his second agreement.
"Did you carry 1ire insurance. coun-
ecl asked.
Yes"
was 1t ever made out in the name
OF the American Tobacco Company
Mr.. Lindabury objected to this question.
and also 10 all questions exposing his
business in the hearing of his compe-
UtOrs.
Then 10 Judge Stevens wi ness said he
had once been manufacturer Of spe-
clal brand Of cigarette which he called
the High Toned" That was about five
years ago He gave it up six months
after the organization OF the American
Tobacco Company. In amended answer
he said he began the manufacture of
that cigarette seven years ago. and con-
tinued 1t for two years. 1t paid him at
first, but not subsequently. He was not
Informed. he said, by the American To-
bacco Company that he must stop making
that cigarette.
Mr.. Levy: Who makes the "High-
Toned" cigarette now?
A. The American Tobacco Company.
O. When did they begin TO manufacture
Il?
A. a couple Of months after I gave II
UP. -,
Q. Did you sell them an interest in IT.
a Yes.
Mr.. Lindabury: object
Mr.. Levy: Did you have the trade
mark registered?
A. No, sir.
O. Have YOU sued the American To
bacco Company for infringing that trade
mark?
Mr.. LIndabury objected. and the CUES
ton was withdrawn.
To Judge Stevens witness said ina
two months after stopping the manu-
facture OF the High-Toned cigarette n
saw Mr.. Butler. a member OF the com
pany. with reference to selling out e
the trust. Mr.. Butler told him his com
pany would make II pay.
BROKE UP MANUFACTURING.
Isaac Boss, Of No. 90 Allen street,
tobber In cigars and cigarettes said ~
had been In business at that address 10
seven years. Up 10 the time OF the forma
tion Of the American Tobacco Compan!
ne was a retailer. then he became Job
Der. He went TO Mr.. Brown ana asHe'
the secretary to put him ION the list,
and he signed a contract 90 keep up IN
prices" Mr. Brown told him he mus
not sell az a lower rate.
Witness said he was charged last yea
with violating his agreement. When n
saw MIR. Brown the latter told him h
had evidence OF that fact. Witness be
came contrite and signed second agree
Yrent.
Arnold Diamond, Of No. Ct Canal street
5obber. said before the trust was forme
he made cigarettes himself. When h
broke his contract with the company h
was Informed they would sell him n
more goods He made TWO more agree
nrepts broke the second, but was mo
charged with violating the third"
Bernard Bershatsky, Of No. II Granar
avenue. Brooklyn, jobber and retailer
SAID he dealt with q number OF manufaC
tarers before the trust was formed. III
entered into contracts with It, and had
great deal Of trouble In getting 'reir
t'atod' after breaking his agreements.
Henry Berbert, OF No. $50 Bushwic
avenue. BROOKLYN Julian Ehrmann, an
others gave similar testimony. Be-bei
SOFA million and half OF cigarettes bs
iore he was hauled up for violation {
us contract. Mr.. Elnstein in his exam
naton OF Witness Ehrmann. wanted I
hot sA... - . H. tsa. -.