The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1895-09-21
FIGHTING THE TRUST
THE NEARING OF AN ACTION
AGAINST THE AMERICAN
TOBACCO COMPANY.
TO DRIVE IT OUT OF NEW YORK

WIN conspiracy ana COntended
That its Capital was Fictitious and
That its Greed Would Never be Sat-
isfied Until it had Eaten up other
COrpOratlOns--The Trust Defended
by Mr.. Choate and Mr.. Fuller.
SYRACUSE, N. Y, Sept. 20.-The hear
ing before Attorney General Hancock in
the action brought by O. A, Whelan, of
this city, against the American Tobacco
Company, to restrain the trust from
doing business in this State, was begun
to day. Joseph H. Ohoate, with Ouden
and Oakley, appeared for the American
Tobacco Company, and E N. Wilson, of
this city, with Einstein and Guterman,
Of New York, as counsel for Mr.. Whelan.
Mr.. Wilson opened the argument,
fully setting forth the allegations of the
petitioners and charging the trust with
conspiracy. He said that each of the
firms comprising it had formerly done
business separately. The capital stock
of the corporation, he said, was $685.
900, 900, although the actual assets of
the firms comprising the trust was uot
more than $4,000, 900. He contended
that the capital was fictitious and the
avarice and the greed of the trust would
never be satisfied until it had eaten up
other corporations. Uader the methods
employed it would be an easy matter for
the trust to pay a dividend of ten to
twelve per cent.
Col. Fuller, at the close of Mr.. Wilson's
address, presented the claims of the
American Tobacco Company. The first
important contention that he made on
behalf of the trust was that the price of
cigarettes, both to jobbers and con-
sumers, has been lower since the Ameri-
can Tobacco Company organized than
ever before. The trust, he said, denies
that since its organization it has alb
sorbed any other manufacturers. He
charged the petitioner with recklessness
in the charges made.
| The trust alleges, he said, that is in
| creased its business In other lines of to-
bacco much more than in cigarettes. 1t
uses 80, 900, 900 pounds of tobacco annu-
| ally in other ways than cigarette manu-
| facture, while it uses but ten million
| pounds of tobacco annually In making
cigarettes. 1t is admitted that the trust
| fixes the price of its own goods, and also
| that in certain cases it has refused to
consign its cigarettes to certain jobbers,
but only because its own goods were
being improperly used. 1t is denied that
ninety five per cent Of the cigarettes sold
in the State are its own manufacture.
Col. Fuller presented an affidavit de-
nying the allegation of George ]. Whe-
ian; also another affidavit from Secretary
Brown, of the trust, denying that job
bers were intimidated or threatened. He
then presented some resolutions adopted
by the iobbers and wholesale dealers OF
New York City, in which the criticisms
against the methods Of the trust are de-
n0unced as malicious and unwarranted.
A letter was read, signed by number
Of dealers in this city, IN which the COM
pany is urged not to change its course,
in which the signers declare themselves
as not being in sympathy with @. A.
Whelan & 90. in their contentious.
Joseph II. ChOate made one of his
characteristic arguments. He said that
the American Tobacco Company stands
for the absolute freedom of trade fer
itself and for everybody else. He re-
minded the Attorney General that his
action must be based upon the law and
facts and that he was not to be governed
by socialistic principles or in behalf of
the hOt-headed rivals of trade.
Mr. Choate said the National Tobacco
Company was the real mover in the
present case and that Whelan & Co., were
merely ignre-heads. He said shat while
Mr.. Wilson had argued the case, Mr..
Einstein, the recognized advisor of the
National Tobacco Company sat behind
and pulled the wires The speaker did
not think that the Attorney General had
the power to bring such a suit as was
asked any more than a private indi-
vidual had The public, he thought,
was little interested in the controversy
or its decision. The origin of the cor
poration was mentioned by Mr. ChOate
and he said that those composing the
new concern had the same right to sell
out and end rivalry.
Mr.. Choate further said that he was
prepared in advance to hear law pro-
posed which would limit a mans sccu-
mutations, but there was no such law
now and he hoped it would bo very
long time before the people so stultifed
themselves. He held that the American
Tobacco Company was doing legal busi-
ness. 1t was not contended, he said,
that the cigarettes of the American To-
bacco Company were sold at unreasona-
bic prices but the fact was that the
company sold,so cheap.that petitioner,
the National Tabacco Company could not
compete with it successfully.
Mr.. Einstein replied to this argument,
holding that the defense was evasive and
mere sophistry. He produced the evil
dence Of Frederick p Hier, Of thR city,
In the New Jersey cases, Mr. Hier,
when he signed the agreement, had Ad-
miral cigarettes ia stock, and was told
that unless be discontinued their sale,
he would be cut off from selling the
American Tobacco Company's goods.
At the conclusion of the argument
Attorney General Hancock asked the at
torneys to submit their briefs within
thirty days.