Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1897-06-16
TOBACCO co. TRIAL.
II PROCEEDS WITH BRYON RE-
NAMING a JUROR.
CASE FOR THE PROSECUTION.

TcstiGcs.

proceed with the jury originally selected
". ). Bryon, against whom certain
charges of indiscretion were made, re-
mains juror. Judge Fitzgerald. when
the proceedings began, denied District
Attorney Olcotts motion to have Mr.
Bryon removed. lie also denied a motion
made by Lawyer Choate to have Juror
Fash examined in regard to his interview
With Reporter Piper
Mr. Choate then said that he would de-
mand to have the attention Of the grand
jury called TO Reporter Piper and the
editor and proprietor Of the Morning
Journal and Advertiser for having en-
! gagged IN a conspiracy 10 influence the
action Of justice against the defence.
District-Attorncy Olcott then opened
the case for the prosecution. Mr.. Oh
colt tod of the formation Of the COM
| pany. lie said:
! prior TO October II, 1889. there were five
/ great cigarette manufacturing concerns
Allen x Ginter, W. Duke, Sons & Co.,
| the Kinney Manufacturing Company, W..
:. Kimbal x Co.. and Goodwin q Co.
| They had 80 per cent. of the trade. These
| I'VE NplAtll4o Ncllit ttENA4lfis
Nh. Olcott GAINED that Allen d Ginter
! and w. Duke, Sons & Co. each took 30
per cent, the Kinney Tobacco Company
| - per cent, and Kimball II Co and Good
win d CO. each 10 per cent.
"The American Tobacco Company was
! incorporated January 90 1880. in the State
! Of New Jersey. No crime was committed
| by that corporation, but ! viii try TO
! show you that the methods declared and
carried out under that agreement of in
corporation were a crime.
CHOSE five companies maintained
/ their separate establishments and con-
tnuod to make and sell their individual
! brands. But when a bill of goods was
! sold. say, for instance, by Allen * GIN
ter. the bill was made out from Allen %
| Ginter, branch Of the American To-
! bacco Company
SIGNIFICANT.
This is most significant. 1t shows
| that the corporation was not formed 10
conduct cigarette business, as an or
dinary corporation, composed OF indi-
| Viduals, but was a corporation Of cor
! porations, not to start a cigarette busi-
ness, but simply, from their aggrandized
power. 20 restrain, aye, to srangie
competition.
trade saying that a discount Of "a GER
! tain percentage would be made 10 the
| jobbers who bought of the branches.
! Any jobbcr? on, no; but any jobber
who handled cigarettes I'm a satisfactory
! manner Satisfactory to whom? Salts
! factory TO the manufacturer Men with
| money and credit and business reputa-
/ lion could not buy the goods of the
American Tobacco Company unless, in
the opinion of the company, they handled
! their goods in g. manner satisfactory
10 the company.
This means, plainly. that these goods
must be sold at any price fixed by the
! company. 10 matter what the situation
| Of the jobber might be; no matter how
| much ne might need money, or how
much he might wish TO clear out shop
worn stuff, by disposition of his goods
! at "A price lower than the cost, he could
not do it.
These people control 90 per cent. Of
/ the trade of this country. This means
! that nine out of ten cigarette smokers
| want the cigarettes made by the Ameri-
! can Tobacco Company. and unless
| jobber handles these goods he can sell
/ only to one out of ten customers, and he
! cannot handle the American Tobacco
| Company's goods except at their terms"
! The TRADE AGRE EMi-NI.
Mr. Olcott then took up the provisions
| Of the agreement. one was that the
| selling prices should be such as the To-
| bacco Company fixed. Agents, he said,
were obliged TO guarantee sales. Real
| agents do not do this. All cigarettes
! were to remain the property of the COM
! pany. The company agreed to pay all
/ freight charges. The agents were to
! guarantee the company against loss by
/ ire. This was another unusual proceed
| ing The agent agreed to pay all
! charges. including taxes and license fees.
There IS nothing that could not be
covered up under the statute laws, if
such trickery was allowed 10 90 unpun-
| ished," said Mr.. Olcott. This is the
system under which the American To-
bacco Company disposed Of its goods
from March /, 1892, up TO the time Of its
Indictment The company was not in
! dicted for striving to overcome competi-
ton by fair means, not for using its
grasp on 80 per cent. of the cigarette
trade but because it used its power
over unwilling 1obbers to prevent them
from selling other cigarettes"
Joseph Park, Of the grocery firm of
Park & Tlford. was the first witness.
The gist Of his testimony. as brought out
by the direct and the cross-examination,
was that Park & Tiford had an agree
ment with the American Tobacco Com
pany. and that under 1t his firm was
unable to make a very large profit 1t
was stipulated that no other cigarette
was to be handled by the firm, but the
National Cigarette Company's cigarette
came on the market. and Park & Til
ford bought 5000 cigarettes from them.
Then Mr. Butler, presumably represent
ing the American Tobacco Company, laid
down an ultimatum, and Park & Tilford
were compelled 70 give up the other
cigarettes, returning them TO the Ma
tional Company. The agreement with the
American Tobacco Company was in
writing. and is at present in the safe
of park e Tilford. Under the agree
,nent Mr.. Park said his firm received a
large amount OF stock on consignment.
MIR. Park said the agreement had been
made voluntarily, and the firm expected
TO live up to it.
During the cross-oXamination OF Mr.
park. Mr.. Choate declared that business
principles alone were employed in the
transactions OF his clients. "They are
the same principles as are employed by
business houses tho world over" said
Mr.. Choate.
No further witnesses were called be-
fore an adjournment was taken until
tomorrow.
RAILWAY MASTER MECHANICS.
r,.~ Of Their Tlirtiefh An