New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1896-04-21
CIGARETTE TRUST AFFAIRS.
THE PRESIDENT TEsTIFIEs IN THE SUIT
TO ANNUL THE CoMPANY's CHARTER.
MR. DUKE TELLS OF THE ORGANIZATION AND
HOW THE STOCK WAS APPoRTIoNED-HIs

MIR. DUKE TELLS OF THE ORGANIZATION AMI
HOW THE STOCK WAS APPoRrIoNED-HIs
FIRM RECEIVED s74o7 600 OF STOCK.
The hearing OF testimony In the case OF John r.
Miller & Co against the American Tobacco COM
pany otherwise known the Cigarette trust 10
annul It's charter. continued In the Nice-Cnah-
cellors court in Newark yesterday. The secretary
Josiah Brown. was still on the stand. lie gave EVIL
dence as to the competitors Of the American Com
pany.
At the last hearing the secretary was asked to
produce the reports OF the American Tobacco COM
plny's agents or consgnees whose contracts hau
been cancelled Reports In sixteen such cases were
required He produced several but failed In num-
Der OF instances, because he could not find the re-
ports Those produced were read Several reports
said that the consignment contracts had been re-
voked because the dealers mentioned In the re-
ports had been found handling goods OF opposition
manufacturers The witness said the company mad
many similar reports, but they were not all OF the
same tenor
Testimony was gwen by the witness concerning
a machine bought by the American Tobacco Com
pany for the manufacture of cigarettes. 1t cost
100000 This machine was used In New Orleans
There was nothing In the consignment contract.
Mr.. Brown said. about protecting consumers. Out
the result of that goods were sold at as 10"
prices as before. BY the establishment OF the con-
signment business about 300 dealers fell on the list
furnished cigarettes and 100 in October 1882 George
Phillips auditor Of the National Cigarette Com
pany. began Issuing posters containing the words
mot made by :, trust in February, 1893 They
printed advertisements to the same effect on March
II. "a and 81. 1898.
The witness Identified the posters and pictures
before exhibited In court. OF the large poster con-
talnIngs the words "Admras. not issued by
trust" 10000 or 5000 Issued. Advertisements
to the same effect were printed In theatrical pro-
grammcs beginning in FEBRUARY. 1893.
Guy NJ. Langhorne. trustee assignee. FOR W. 3
Carroll. OF ynchburg, Va took the stand atter ise
aretes who failed last April ianghorne testified
that Carroll produced, In 1881 ioGU@ e ;l
600 The territory covered Virginia. The cause
OF the falllng-on in business the witness said was
he marke; the .'Oid Dominion brand. At first
they failed to sell. but then, the American Company
reduced by system Of rebate. the price per IoV
The result was a great and steady reduction or
lanes b. Duke. president OF the American To
bacco Company, took the stand late In the after-
noon. Prior to the formation or the american 10,
Company Mr. Duke said he or Of
ganzed under the laws of North Carolina and ana en-
gagged in the manufacture OF hnn, go 100 cIg e
arettes and 4, was probably the largest IN the
When YOU divided the stock OF the American
Tobacco Company among the five companies that
composed it did you do Il on the basis OF the output
OF elch?' asked Mr. Ensten.
Tho nnestion was objected 10 by the defence on the
ground that the stock had never been divided put
that each company bought out MT Duke ssid
the output OF each considered IN nxing me price
TO be offered each company and mat IN eaen ease
was made to the directors OF the American TOBACCO
Company. 49,, .-,.. r.h,,oo Conn,
nanvs stock W Duke. Sons h Co.. received y,,4N.-
io, OF which ssooo.co was preferred stock ana -
5000 common stock This representa- tHe stock
and business.