The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1897-06-16
WITH IRON GRIP.
The American Tobacco Co. Con-
trolls Cigarette Trade
NEUTRALITY-SUSPICIOUS. Brought
Out in the Trial.
STRINGENT RULES
Were Applied in Dealing With
the JObbers.
Not Permitted to Handle Goods
of Other Concerns.

New York, June 16.-At the hearing or
the American Tobacco company case yes
terday, Mr.. Olcott told of the formation
of the company. He said:
Prior to October l, 1883, there were five
great cigarette manufacturing concerns.
Allen & Ginter, Duke Sons & Co., Kinney
& Co., w s Kimban & Co. and Goodwin
& Co They had nearly all the trade.
These five came together.
The American Tobacco company was
Incorporated January 20, 1880. in the state
of New Jersey. No crime was committed
by that Incorporation, but I will try to
show you that the methods declared and
carried out under that agreement of in
corpora ton were a crime.
These five concerns maintained their
separate establishments and continued to
make and sell their individual brands. but
when a bill of goods was sold, say, for in
stance, by Allen & Ginter, the bill was
made out for Allen & enters branch of
the American Tobacco company.
This is most significant. It shows
that this corporation was not formed to
conduct cigarette business as an ordi-
nary corporation composed of individuals.
but was a corporation of corporations, not
to start a cigarette business, but simply
the aggrandized power to strangle compe-
tition.
''They sent circular to the tobacco
trade saying that discount of a certain
percentage would be made to the jobbers
who bought of the branches.
ANY jobber? Oh no, but any jobber who
handles cigarettes in a satisfactory man
ner.
Satisfactory to whom? Satisfactory to
the manufacturer. Men with money and
credit and business reputation could not
buy the goods of the American Tobacco
company unless in the opinion of the
company they handle their goods in a
manner satisfactory to the company"
Mr.. Olcott then took up the provisions
of the agreement.
There is nothing that could not be COW
cred up under the statute laws if such
trickery was allowed to go unpunished,'
said Mr.. Olcott. This is the system under
which the American Tobacco company
disposed of its goods from March 1, 1892,
up to the time of its indictment. The
company was not indicted for striving to
overcome competition by fair means, not
for using its grasp 80 per cent of the
cigarette trade, but because it used it's
power over unwilling jobbers to prevent
them from selling other cigarettes"
Joseph Park, of the grocery firm of
Park & Tilford, was present. The first of
his testimony as brought out by the di-
rect cross-examination was that Park &
Tilford had an agreement with the Ameri-
can Tobacco company and that under it
his firm was unable to make very large
profits It was stipulated that no other
cigarette was to be handle by the firm
but the National Cigarette and Tobacco
company's cigarette came on the market
and Park & Tnford bought $4,000 cigar
cites from them.
Then Mr. Butler, presumably represent
ing the American Tobacco company, laid
down an ultimatum and Park 6, Ti1ford
were compelled to give up the other
cigarettes. returning them to the National
company. The agreement with the Amer
lean Tobacco company was in writing and
at present in the safe of Park & Tilford
Under the agreement, Mr.. Park said. his
firm received a large amount of stock on
consignment. Mr.. Park said the agree
ment had been made voluntarily and that
the firm expected to live up to it
During the s-examina ton Mr.. Park
said that business men alone were en-
ployed in the transaction of business of
his clients.
No further witnesses were called be-
fore adjournment was taken until TODAY