New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1896-04-18
THE REPORTS NOT PRODUCED
THREATS OF ARREsTING THE CIGARETTE
TRUSTS SECRETARY.
HE SHOWS THAT HIS SUBPOENA DID NOT CALL
FOR THE PRODUCTION OF THE PAPERS
LIVELY HEARING At TIE SUIT TO


LIVELY HEARING AT THE SUIT TO
ANNuI THE COMPANIES CHARTER
The examination Of Josiah Brown. secretary Of
the American Tobacco Company. resumed In
the Vice-Chancellors Court in Newark. yesterday
In the suit against the company to annul the charter
The witness continued reading from the company's
list OF "consignees who had been cut of from the
privilege Of selling the companys cigarettes There
were frequent Interruptions and questions by the
counsel for the complainant firm. and at stage
OF the proceedings an exciting scene occurred
Thomas ~ McCarter. the examining counsel de-
manding that he witness be attached for contempt
Of court In refusing to obey his subpoena.
The witness explained why the. firm Of c. A.
whelan & Co.. Of Syracuse n. Y. or 1t
was because George Whelan. the active member Of
the firm. became employee Of the National Cigar
cite and Tobacco Company at O salary Of 1900
year. and pushed the sale OF a brand OF cigarettes
not made by the trust The company considered this
firm as really part OF the National Cigarette and
Tobacco Company. and therefore refused to sell II
any more goods. Mr. Einstein asked II the Ma
tional Cigarette and Tobacco Company wanted to
buy cigarettes Of your company you would not sell
them at any price,"
NO. Sir" said the witness: I'VE do not propose to
have goods used for the purpose Of selling those
OF the National company"
Mr.. Brown related why the agreement Of the s. g.
Sleeper Company, Of Boston, was cancelled. Presi-
dent Flanders. Of that company. was presiden: Of
the Wholesale Grocers' Association OF New England.
consisting OF thirteen local associations. Mr..
Flanders had resolution adopted by the Executive
Committee Of the association condemnng the Amer
lean Tobacco Company's methods. which was pub
lished In the newspapers The witness went through
New-England and found that large majority OF
the members Of the different associations ignored
this action Mr. Flanders had admitted that his firm
was to receive 5000 cash from the National Cigar
cite and Tobacco Company. and then. In install
ments. sums up to $25.0Oo as the sales Of the Ma
tional company's goods should increase. This was
In addition 10 rebates.
MERELY TO MAINTAIN PRICES.
In regard to the adoption Of the new agreement
OF October /. 1895. the witness said there two
reasons. one to give larger percentage on the
higher priced goods and the other favor dealers
who handled the company's goods exclusively. The
purpose of adopting the consgnee plan was to pro-
tec the goods mainta prices and retain the title Of
the goods until they were sold The company's busi-
was also falling of between the time of the
abandonment Of the rebate system and the adoption
OF the consgnee plan and dealers were urging them
to adopt some system to maintain prices. The con-
sgnee plan had not been thought OF when the rebate
system abandoned.
The output Of the company in cigarettes in 1890
2157 s9l 900 and In 1891 24774S0o About two thou
sand consignees signed the agreement OF March J..
1892
There was a sharp passage between Mr.. Brown
and Mr.. Einstein the distinction between job
bers and retailers. which the Vice-Chancellor cut
short with his gavel. Mr. McCarter then took the
witness In hand. The witness said that In cancelng
consignees agreements he never reported 10 the
Board Of Directors. He had. perhaps. consulted the
president in individual cases. but he used his
discretion. and his acts had never been overrued.
He had not looked for certain reports OF the COM
pany's agents which he had been directed to look
up in the early part OF the examination because his
counsel had advised him not TO DO so.
Mr.. McCarter said: II ask you to produce those
reports"
They are not in my possession" replied the wit
ness; they the property Of the company"
do you refuse to produce themT'
IF counsel tells me / cannot do It, cannot
do you refuse TO produce them?" repeated Mr..
McCarter.
II do" said the witness:
WHO, tod you y.On need not produce them
Was that since you were subpoenaed to produce
the books and papers of the companyr'
Where ca are those reports now7"
' at he Sswals a the once
Have yoq seen any Of them m. a,siy ,r. vs.,.ra.v
YOU have access to them, have you not!'
what do you mean by thaty
II mean that counsel has instructed me that ]
cannot take the company's records without being
Has any one else Instructed you to that ehfect?'
What right had Mr.. Butler to interfere with
your management OF the cigarette department.
He is the vice-presdent and my superior oni-
Mr. McCarter said that he wanted move to
produce called for under the subpoena served
upon him. The section Of the company.s by.aws
WAS read by dr. Mccarte and he then
ARE these reports in your custody and have
# think they have BEEN said the witness.
| DEFECTIVE SUBPOENA.
Mr.. McCarter asked the Court to issue order
| calling upon the witness TO produce the papers.
The Vice-Chancellor said that he must be informed
what books and papers Mr.. Brown was required
| by the subpoena produce In court. Thereupon
the son of Mr. McCarter. who served the subpoena,
was placed on the stand Mr.. Lndabury exam
ned him. and then producing the copy served on Mr.
Brown asked the e-Chancellor to compare the
two paper To the surprise and dismay OF the
an error the witness had not been directed to pro-
duce the books and papers Of the American To-
Ssp produce a contracts and agreements between
you and the American Tobacco COMPANY Il was was
the form Of subpoena used TO summon the Jo9W1e e
and 13 ee or ecose
remarked to WIZ Mr. crown , ''''' ~
well. you won't have to go to jail this hot day.
When the court reconvened for the afternoon
session Mr. Mccarter announced that Il was his In
tention to have a new subpoena served on the wit
II. S from Ss sn
system. He said he would ask no further questions
at that time. . .
for the defence. Mr.. Lndabury asked him II he had
a list Of cigarette manufacturers other than those
Included in the American Tobacco Company. The
witness said he had not and II would take con-
siderable time TO make out list Of manufseturers
Tobacco Company. Mr. Lindabury read list OF
cigarette manufacturers and requested Mr. Brown
~ make a statement as to whether each was In
existence or not in 1883; The witness named from
r, st the time the American Tobacco Company
was formed A lot Of advertising matter put out
We ,he National Cigarette and Tobacco Company
oSS,art,sns a certain brand Of cigarette pro-
duced in court. There were eight-sheet posters
streamers ten feet long. theatre programmes and