The morning news. [volume] (Savannah, Ga.) 1887-1900, 1895-09-21
NO COMPROMISE THE CRY.
Trust Advances the Price of Chew
ing Tobacco.


St Louis. No. Sept 2O.-Yesterday
quotations from the New York stock
exchange showed a jump Of many points
in the certificates of the American Tobac-
CO Company, and a rumor became current
that st. Louis manufacturers and the
trust had agreed upon a division of bust
ness. James T. Drummond. president of
the Drummond Tobacco Company. told a
reporter that the breach between the
trust and outsiders was wider than ever.
He stated that the rumOr grew out OF
the fact that the Drummond company
had advanced the price Of one brand Of
chewing tobacco TO pront basis. he
further stated that on oct. 10 the local
factories would begin the manufacture
of cigarettes. The Liggett 4 Meyers
their cigarette factory on the
same date. Brands have been registered
and machinery placed. Both prummond
and representative Of the Liggett &
Meyers company state there will be no
compromise with the trust
Syracuse, N. Y, Sept. 2O.-The case of
c. A. Whelan & Co. against the Ameri-
can Tobacco Company was begun in this
city to-day before Attorney General Han
cock.
Col W. w. Fuller appear for the tobacco
company and i. f. Einstein, Z. n. Wilson
and NJ s. Gintermann represent the local
fighters for an open market.
In the opening argument Mr.. Wilson
told of the combination of big cigarette
manufacturers. He said the method was
to fix a list price for cigarettes. The
wholesalers could obtain no advantage IN
selling their cigarettes.
Mir. Hancock asked If there was any re-
straint on buying from other dealers. He
was told that there was and that the mo-
ment other dealers were patronized the
agent of the company walked in and shut
off the supply of the companies ctga-
rettes.
Col. Fuller answered the pelIuUn for the
tobacco company. He claimed that the
prices of cigarettes since the formation of
the American Tobacco Company had been
lower to dealers and not any more, and
in some cases, lower to consumers. The
American Tobacco Company was not a
charitable organization, but a business
concern, and it denied being trust Out
side of the five who first went into the
company, but one other company had ever
become part of it. 1t admitted that IL
had purchased various tobacco businesses,
but not cigarette factories.
Denials to the petition followed in rapid
order, and il was asserted that the COM
pany manufactured 10000 600 pounds of
tobacco to 100000 pounds manufactured
into cigarettes. The authorized capital of
the company is $35. 00O0 900. but only about
$29 600 has been issued. 1t had sold 20
jobbers direct and not by consignments,
and then through agencies Dealers in
paper cigarettes were not required to en-
ter into contract but did so of their own
free will. The company admitted having
refused to sell cigarettes to certain con-
signees, but denied that it was to prevent
competition. 1t was because the goods had
been used to sell other goods.
The American Tobacco Company de-
MED that it was conducting an Illegal
or oppressive business. and insisted that
1t was doing a legitimate business
Resolutions adopted by tobacco dealers
in various cities were read. These IA
vored the consignment system of the to-
baccO company, and were passed, be-
cause the newspapers attacked the COM
pany. Mr.. Fuller said that all the sign
ers were agents and employees of the
company. Resolutions from New York.
Albany, Syracuse, Rochester, Troy, Buff
falo Batavia, Binghamton, Dunklr1,
Utica. Lockport and Owego were pre-
sented.
Col. Fuller made a short argument
and came to the point that if the OFF,
GERS in the company had done wrong,
injunction against the company. The to-
bacco company was ready to stand by its
agreement.
Then came Joseph H. Choate. He ar
gued for the methods of business of the
company, and said he was upheld by re-
peated decisions of the court of appeals
of this state. The attorney general did
not sit here as an apostle of socialism or
the friend of sOre-head rivals in trade.
Then he contrasted the parties. The Ma
tional Tobacco Company was the real
mover in the matter 1t was c. A. Whe-
Ian q Co. The petition was made by
George Whelan, a paid employe of the
National Tobacco Company, the most for
midable rival of the American Tobacco
Company.
When the arguments vera concluded it
was agreed to put in briefs inside of
toner as TO what evidence he desired to
nut in.