Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1897-02-25
LARGE NUMBER or srECTA-
TORS IN ATTENDANCE.
AMERICAN TOBACCO COMPANY.
How It's Component Parts We're
Rated ut the ConsoIidstion-F. D..
Thurbcr Tanks Trusts Are BeneH-
cIaI 10 the Public.

committee 10 order, Chairman Lexow
said the Coal Trust would be taken up
tomorrow.
President Duke. OF the American To-
bacco Company. again took the stand.
He said that the American Tobacco
company was capitalized originally at
sED0c0. which was afterward in
creased to S2s.Ss5ce.
.How much Of the stock did your COM
many receiver" asked Chairman Lexow.
1--WE received S74s7oOo" said Mr.. Duke.
$50 you received 100000 for good will,
such as patents and trade-marks?"
eyes. sir"
How much did Allen & GiRter re-
coive?'
.'The same as the Duke Company-S7.-
4gtoN"
The witness said that Kinney & Co.
received $lsa9oOO I'm stock; S. Kimball &
Co. &C. $4,000. and the Goodwin Company.
s. E2oo.
'How much stock was issued for the
live assets Of the verious companes?'
about $4,000 worth of stock?"
"And how much for the goodwill, such
rs trademarks. patents, etc?'
about Sses0OOo"
The witness said that in distributing
the stock the earning capacity of the
five original companies was considered.
"Who made the appraisementE
"Mr Ginter, Mr. Kinney, Mr. Hart
end myself
did the number Of the original stock-
holders exceed hfteen?'
81 think the number ranged from fif-
teen 10 twenty-five
the witness said that when the stock
was increased TO so So. .000 there were
about forty stockholders.
'How many stockholders have you
now?" - 49,,
exact number ~
eve issued two-hfths in preferred
stock and three-hfths in common stock.
CIGARETTE-M MACHINES.
witness denied that his company had
secured control Of all the cigarette
,nsking machines by combining with the
other companies.
.Did YOU not subsequently secure co"'IO,
Of a machine that practically remover
fear OF competition
.Some considered the Allison machine
better than ours.
HAS not the AlllSon ftihbeN9 ~ '5'---
ized i'm conjunction with the tobacco COM
bination?" ..
"NO. sir; not exactly althoush was
friendly" -.,,,o
Witness said that. prior to consolida-
+,on the i've original companies en-
Moved 5.sg5 hands; and in February io'o
The American Tobacco Company H"u
e19i employees. A. ,.,.
In reply 10 another question: the W w
ness said that the common STOCK III Io1i
Maid u per cent; in 1890, it PAID nolhl"s'
and in 1896 it paid per cent, III GO CaS,,' o9n
and there was also surplus OF sl40o'vy0.
Witness attributed the decline IN the
,,-lce az the stock from l17 10 % 70 un-
loading. He said that he held more OF
.be e+cclz now than ever before. lie de-
Clared that the output in cigarettes had
almost doubled since the consolidation
Josiab Brown. Of Springfield, y. J.' sec
retarv OF the American Tobacco com
many. was then called. In reply 10 Il
question. the witness SAID thaI H'os' "a
tba business was done IN New York, but
the books were kept i'm New JERSEY,
Witness looked after the cigarette emu
Of the business. Witness could not ten
how many held common and pre-
farrad stock. The common stock, ne
said. was more largely dealt IN. lie coulu
NOT explain the fall in the price OF the
stock from III to &c, but said II mlghI Z
have been due TO the taxes that nau
been imposed on the company ana olilel
disturbing elements.
FRANCIS b. THURBER.
Francis b. Thurber then took tne
stand He said he was president Ol tne
"American Grocer" Publishing Company
44e declared mat the american Grocer
vas devoted to grocers i'm general put
cs-a-iallv TO the retail trade. lie theh
resT d long statement containing MS
80, of tbe trusts. He said the average
rrice Of sugar for nine years prior 10
- oorso1idation Of the sugar refining
oo-orenies was 719 cents per pound ana
for the nine years succeeding consohua-
ZION was 527 cents per pound. Ihe ue-
oroaee I'm the price was owing 10 'he
toare, purchase Of the raw material
,d the cheapened cost OF production
Mr. Tburbcr said that the total resui19
81 tba combinations. intelNgently auiiiili
sstered were beneficial 10 the puphc az
large and 10 the laboring class, ~
nro0ts OF capital have been steaully uo
creaslng and those Of organized i"o'i
steadily increasing. ,, dollar
at no time" said he, would uoI"' -
nurcbase so much as at the present I'm,
Tbere are good trusts and bad trusts out t
The good trusts so far predomlnate 'ho'
such ageregations Of capital should De en- en-
couraged accompanied by saies ""' N'
When Mr. Yhurber had concluded ms
remarks regarding trusts, he was asAeu -
they EXPRESSED his theories as TO Voi''o,''e
,tors as a whole or those commonly caAeu
t.,,s+s and be replied that he referred 10
them generally as well as specihcaily' nv
contended that the Capitalization OF cap
tal was the natural condition OF the tline'
Witness would not admit that cohceh'l l%
tfon ~ capital prevented competition ~
declared that competition was ACTIVE "'
present. and that fl was bound 10 lici Il - s.s1
against the American sugar ,l'cl''.i',s
Company Witness peheNeu' ,,e,,ee,
that the limited price system is heCe9
sifv In modern trade. lie did not DeueNe
mat the stock Of every combination W.
nut ON the market and speculated IN 4ne
Standard Oil Company, he said cou4u no'
De called speculative I'm any way
In reply 10 "a question. the witness saiu
he did not believe that the American gu
gar-Rehning Company could buy up Il II
desired all the rival concerns.
could not the American Sugar-hehnlhs
Company with its control OF from 40 10
So per cent. OF the output and its capi-
talizauon OF S15.Oo000O freeze out all com
Petition
"No. SIR. Il could not. The existence OF
other rehneries proves that
Senator McCarren az this juncture look
hand.
ANTI-MONOPOLY LEAGUE.
81 don't want TO be personal" he said
"but were you not once connected Win
the Anu-Monopoly Lacquer
yes, sir. / had the honor OF ioIi'lins
that league"
"And the principles OF the league were
opposed 20 the Capitalization OF capital
'eThe real object of the league was 10