New-York tribune., 1896-04-07
AGAINST THE TOBACCO TRUST
IhE COMPLAINANT TESTIFIES IN THE
SUIT IN NEWARK.
HE TELLS OF HIS EFFORTS TO GET CIGARETTES
MADE BY THE MEMBERS OF THE TRUST
PROSCRIBED BRAND.


PRESCRIBED BRAND.
John r. Miller, Of the Newark firm Of John r.
Miller d Sons. tobacco dealers was the first wiz
ness TO testify yesterday in the Vice Chancellor :
Court in Newark In the suit OF that firm against the
American Tobacco Company. He had he said. been
IN the tobacco business for fifteen years and be-
fore the organization OF the American Tobacco
company he bought cigarettes OF the five firms rep
resented in it, From two of them Allen & Ginier
and Duke Brothers. he had presents OF money
After the formation OF the company no induce
mentS were offered. Six months after the orgdnza-
tion by new method OF sale. the products o. the
company were sold at the gross price. with > per
cent discount for cash and rebate OF 30 cents A
thousand on cigarettes costing s. 50 a thousand or
less. and 20 cents on all costing above that In
January. 1892. new contract sent out under
which the goods of the company were shipped
consignment This contract was brought to Mr
Millers store by a Mr.. Dunstatter representative
Of the company. in March or April. 1892 He was
told that he must sign it or he would get no moro
cigarettes. Under this contract the company al
lowed per cent discount for cash and rebate of
s. cents thousand. In February 1885, ne began 70
sell brand Of cigarettej not made by the trust
and soon after Mr. Dunstaticr called upon him and
tod him that mis- cigarettes from the American To-
bacco Company would thereafter cost him s. so a
thousand. with discount rebate. he had
violate clause No. of the contract Mr.. Miller
sad that he afterwari made agreement with
the manufacturers Of the prescribed cigarettes
under which ne TO be reimbursed for what he
lost on the goods Of the American Tobacco Com
pany.
lie sent an order TO the American Tobacco Com
pany and failing 10 get cigarettes he went to the
company's store In Newly Ork and Mr.. Angus
tine. the manager. who admitted that he had re-
celved the order. Mr. Miller then went 10 the office
at No. 45 Broadway. and saw Josiah Brown. secre-
tary OF the company, and was told that his ac-
counts with the company had been closed. He
afterward procured the companys goods through
Bernheim Bros. & Co., in New-York. ana paid
s. 10 thousand FOR the cigarettes. and sold them
for tho In October he received word from
Bernhe.m Bros & Co. that they had been compelled
10 sign a contract with the American Tobacco
Company under which they were not allowed TO
sell TO another jobber without the written consent
o. the company. and could not, therefore snip MN
any more goods.
Josiah Brown, secretary OF the American Tobacco &c
existence of the agreement spoken OF by Bernheim
Bros. & 90 He admitted that there was such an
mission to sell to Miller but had told that the
company wanted TO deal directly with joobers
of cigarettes. and 1t was refused him. The letter
to Mier as read showed that the company refused
handle its goods in the Newark territory.
Mr.. Lindabury counsel for the American TOBACCO
paws the lawyers in this suit He received 10
reply Nj I.!ndabury asked leave to INQUIRE Of the
witness whether the Natona! Cigarette ana looacc3
Company had induced him 10 bring the SUIT ana
whether II did not pay all the expenses OF IL lie
desired said to show that the action was tndt o'
A business rival % iujure the American Tobacco
Company. and that tho plaintiff was properly oniS
a reiator, and that the Attorney-ti-neral was I'M
properly associated In the suit Nlce-Chancci.o-
Reed refused to allow the question.
4 number OF other witnesses gave teStiin my.
among them Jonathan 6. BackweN OK Trenton;
who on DISCRIMINATION by Mr.. Lndabury said
he was Il liberty 10 give up the American Iohacco
Company goods al any time. Before the organza-
ton Of the American Tobacco Company prices we're
cut to pieces His firm now gets more proht ne
said under the consignment plan. The uust -. Inc
witness thought. better for joboers.