The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1897-06-16

NEW YORK. Jane E-Iuage Fitzgerald
to-day decided that the trial az the Amer;-
can Taoaccc Company officials should pro-
coed wstn tire jary originally selected. w.
j. Sryan. against wnora certain charges Of
indiscretiaa were made. remains as a 1ur-
or
Mr.. oIco,s told OF the formation of ire
company he SAID. Prior 20 October l.,
isss. there were i've great cigarette manu-
featuring concerns-Aiier Il Ginter. Duke
sons 8 Co, Kinney Manufacturing Com
rany. W ). kiznhsli & CO. aud Goodwin d
So- They had ~ per cent. % the trade.
These five concerns came together.
TIE American Tobacco Company was
Incorporated January - Isso in the state
OF New Jersey. No crime was committed
by that incorporation. but I viii try 10
rieo out under that agreement of ineor-
poratton were a crime. These five cpn-
Germs maintained their separate essah-
ishments and continued 10 make and sell
their individual brands. but when a bill of
goods was sold say. for instance. by Al
len 4 Gsnter, the hill was made OUT for
Allen Ginter's branch OF the American
Tobacco Company.
This is the most significant. II shows
that this corporation was not formed 10
conduct a Cigarette business as ordinary
corporations composed Of individuals but
was corporation OF corporations. not To
start cigarette business bat simply from
the aggregated power 10 strange competi-
ton
MIR. Olcott then took up the provisions
OF the agreement
There Is nothing that could not be
covered under the statute laws IL such
trickery was allowed to so unpublished -
said Mr.. oieost. This is the system UNI
der which the American Tobacco Com
pany disposed OF its goods from March /.
isS2. mp 10 the time OF It's indictment. The
company was not indicted for striving to
overcome competition by fair means. nor
for using Its grasp on 90 per cent. of the
cigarette trade, Sut because II used it's
power over UNIV filing iobbers to prevent
them from selling other cigarettes"
Joseph Park. az the grocery firm OF Park
X Tilford. was the first witness The gist
OF his testimony. as brought out by direct
aud cross-examtnatton. was that Park q
ififord had an agreement with the Ameri-
can Tobacco Company. and that under IL
his firm was unable to make very large
profits. 1t was stipulated that no other
cigarette was to he handled by the firm,
bat the National Cigarette and Tobacco
Company's cigarette came on the market
and Park & Tflfcrd bought . N1 cigarettes
from them Then Mr.. Butler presumably
representing the American Tobacco Com
pany laid down an uiiimatun. and Park
& Ttiford were compelled TO give up the
other cigarettes. returning them 10 the Ma
tiSnai Company. The agreement with the
American Tobacco Company was in writ
ing, and at present in the safe OF Park &
Tfhord. Under the agreement. Mr.. Park
said. his firm received large amount of
stock on consignment. Mr.. Park said tho
agreement had been made Voluntarily and
that the firm expected TO live UP TO H.
During the cross-examination of Mr.
Park Mr.. Choate declared that business
principles were employed in the transac-
ton OF the business Of his clients
They are the same principles as are en-
rloyed by business houses the world over"
said Mr.. Caoate.
No further witnesses were called before
adjournment was taken until tomorrow.