Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1895-09-21
AGAINST TOBACCO CO.
Case Of C. A. Whelan & Co., at Syria.
cuSe, New York, Begun.
, OPENING ARGUMENTS.
THE
Mr. Chonte Among Counsel for the
Defendant. Which Denies That IL
Is Conducting an Illegal or OPP
pressive business.

SYRACUSE, y. Y. September 2o.-The
case Of c. A. Whelan az Co. against the
American Tobacco Company was begun
in this city to-day before Attorney-Gene-
raj Hancock. Joseph II. Choate, Ralph
Oakley, and W. W. Fuller appear for
the tobacco company, and B. f. Einsteln,
F. 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 the big cisa-
rette manufacturers. He said the method
was to fix a llst-price for cigarettes. The
wholesaler could obtain no advantage In
selling their cigarettes IL he handled
cigarettes to their satisfaction, then the
wholesaler, at the end of a certain period
was given 50 cents a thousand, but II ne
sold to one who was black-isted. or did
anything that was Objectionable, he did
not get any commission.
Mr. Hancock asked If there was any
restraint on buying from other dealers.
He was told that there was. and that
the moment other dealers were patron
lied. the agent of the company walked
i'm and shut off the supply of the COM
pany's cigarettes
Mr.. Fuller answered the petition for the
tobacco company. lie claimed that the
prices of cigarettes since the formation
Of the American Tobacco Company had
been lower TO dealers and not any more
and I'm some cases lower 10 con-
s,,,,ars rbe American Tobacco
Company was not charitapie
organizations, but business concern, anu
IL denied being a trust Outside OF the
five who first went into the company
but one other company had ever become
a part of H. II admitted that II had pur-
chased various tobacco businesses, Out
not cigarette factories.
DENIALS TO PETITION.
Denials to the petition followed In rapid
order. and 1t was ASSERTED that the com
many manufactured 300O.0oO pounds OF
tobacco TO 1,C00,QJ0 pounds manufacturer
into cigarettes. The authorized capItai
is x35OOO.O00. but only about S29,0oOU mas
been issued. IL mad SOLD 10 jOboers dlrec'
and not by consignment. Dealers III
paper cigarettes We're not required "
enter into the contract, but ala so vi
their own free will. The company ad-
mitted having refused TO sell cigarettes
TO certain cOnsgnees. but denied that
II was TO prevent competition. lt was
because the goods had been used to sell
other goods.
The American Tobacco Company de-
MED that IL was conducting an Illegal
or opprcssfve business and insisted trat
il was doing a legitimate business.
Resolutions adopted by tobacco-dealers
I'm various centres were READ. lhese
favored the consignment system OF the
tobacco company. and were passed be-
cause the newspapers attacked the COM
.any.
Mr.. Fuller answered Mr.. Wilson that
all the slgners were agents and 'mployees
OF the company.
Resolutions from New York. Albany.
syracuse. Rochester, Troy, Buffalo. Ba-
tayia. Binghamtor, Dunkirk, Utica, Lock-
port. and Oswego were presented.
Mir. Fuller made a short argument
and came TO the point that II the officers
I'm the company had done wrong ndict
them. but he could not raise an injunction
against the company. The tobacco COM
panv was ready TO stand by its agree
ment.
MIR. CHOATE.
Then came Joseph H. Choate lie ar
g1led for the method of business Of the
company. and said he was upheld by
repeated decisions OF the Court Of Appeals
Of this State.
The Attorney-General did not sit mere
as AN apostle or Socialist. or the friend or
sore-headed rivals In trade.
Then he cOntrasted the parties. The
National Tobacco Company was the real
mover In the matter IL was not &. "A.
Whean q Co. The petition was made
by George Wheian. a paid employee OF
the National Tobacco Company. the most
formidable rival OF the American Tobacco
Company.
When the arguments were concluded,
II was agreed to put i'm briefs inside OF
thirty days. after a decision by the
petitioner as to what evidence lie de-