New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1895-09-21
is THERE A TOBACCO TRUSTi
THE ATTORNEY GENERAL HEARS ARGU-
MENrs ON THE QUESTION.
JOSEPH II. CHoATE COLONEL W. W. FULLER
E. n. WILSON AND b. F. EINsTE1N SPEAK
IN SYRACUSE ON OPPOSITE
SIDES OF THE CASE.

SIDES OF THE CASE.
Syracuse Sept. 2o.-The case OF C. A. Whelan &
Co against the American Tobacco Company was
begun in this city to-day before Attorney-G General
Hancock. Joseph II. Choate. Ralph Oakley and
Colonel ". w Fuller appeared for the Tobacco
Company and B. F. Einstein. E n. Wilson and NJ.
S Gintermann represented the local fighters for ap
open market
In the opneing argument Mr. Wilson tod OF the
combination of the big cigarette manufacturers.
He said the method was 10 fix list price for
cigarettes. The wholesaler could obtain ad-
vantage in selling their cigarettes. II he handled
cigarettes to their satisfaction then at the end of
certain period he got 35 cents thousand. but II
he sold to any who blacksted or did any
thing that was Objectionable he did not get any
commission.
Mr.. Hancock asked II there any restraint
on buying from other dealers. He was told that
there was and that the moment other dealers were
patronizcd the agent OF the company walked In
and shut off supplies Of the company's cigarettes.
Colonel Fuller answered the petition for the To-
bacco Company. He said that since the formation
Of the American Tobacco Company the price or
cigarettes had been lower to dealers. and In some
cases lower to consumers.
Denias to the petition followed In rapid order
and 1t was asserted that the company manufac-
tured 3OON0Oo pounds OF tobacco 10 100000 pounds
manufactured into cigarettes. The authorized cap
ital OF the company s35.0oo0O0, but only about
S29OOD00o had been issued. 1t had soid 10 Joppers
direct. and not BY consgnments and then through
agencies Dealers in paper cigarettes were not re-
ouired to enter into a contract but did so OF their
free Will.
Then Joseph II .Choate argued for the nethoo oi
business Of the company, and said it was upheld
by repeated 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
headed rivals in trade. The National Tobacco
Company. he said the real mover In the case
IL was not C. A. Whelan d Co. The petition was
made by George Whelan. paid employe OF the
National Tobacco Company the most formidable
rival of the American Tobacco Company 1t was
not the people who wanted the certificate annulled
The point which Mr. Choate made was that the
Supreme Court had no power to annul the charter
II was for the Legislature, and the Legislature had
neglected TO provide for the method. This was not
a combination he said. but a compete buy-out lie
did no. think any lawyer would jeopardze his rep
utation by calling that Illegal MI. thoa'e salu
that II he himself as an Individual was rlch enough
to buy up every tobacco business IN the c9hn,ry n
there was nothing In the laws OF the STATE OF new"
York 10 say II was Illegal ,, n,
AS 10 the company's right TO sell to ANYBODY y
chose that not Illegal II could stop seing, II
,,onsI neo CIGARETTES ,i He hoped MT Hancock would
smoke some OF the National cigarettes II would de-
eide this 49, -
Mr.. Einstein argued next He compared this com
pany 10 the Whiskey, OIL. Sugar and Gas trusts.
Whenever they got before the courts they were
called Illegal. The consignment agreements were
similar They were only method 10 XII compeu p
ton 10 carry out a conspiracy. Men had been
driven out OF the business by the companys rules
and tho trust was oppressive and tyrannical -
When the argument was ended IL was as,eeu W
By the petitioner to what evidence he desired 10
put In.