Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1897-06-24
LEX0W ON THESTAND
HE TEsTIFIEs IN THE TOBACCO
COMPANY TRIAL.
WHAT PRESIDENT DUKE SAID.
Ills Statements Before the New Yoru
Legislative Inyestigation-Tbe All
legged "Bf"ck Mst"-Case of Prose.
cu'fon Pr -cticnIIy Cioxed.

NEW fOkk, June 3-Judge EYfz.
gerald to-day overruled the point raised
oy counsel for the defence in the case
OF the indicted officials OF the Amerl.
can Tobacco Company that Senate,
Lexow could not be required TO testifu
is 70 the statements made by witnesses
Oeiore the recent legislative inyestlea.
ton Of so-called trusts.
senator Loxow then in response "a
questions by District-Attorney Olco.t
testified that President Duke. who was
a witness before the committee abou,
fepruary 10Th, stated that the few
manufacturers entering the American
Company did so for their mutual pro.
lection; that these firms made between
!" ana ~ per cent. Of the paper cigar.
el'es on the market: that there was ma
monopoly IN the plan Of conducting the
business OF The company; that the con.
sisnee agreement was prepared for thu
purpose Oh liking and maintaining prices.
ana was also used for the purpose Of
compelling consignees to live up to tina
| agreement.
= AVW then testified that
DoSiah bro"n OF the American Tobacco
company. entitled certain schedules
submitted to him, showing reports as
10 certain dealers in tobacco througbo,,
the country who had been "blacI<Iistad,s
| py the American Company for handlln.
goods OF the National Company and
| admitted that In substance thev wor,
correct. On cross-examination tba v,,-
| ness said that his impression was tha,
inc schedules submitted to MIR. Brown.
anu cortoporated by that witness at the
senate investigation, were procured bv
| the committee from Einstein A, Town-
SEND counsel for the National Companv-
| Dlstrlct-Attorney Olcott then verified hv
the witness copy of Browns testi.
mony In the committee record in va.
ference to the schedules and moved thai
IL De submitted as evidence. Upou re-
cioss-examination. Senator r.exow said
tnat Mr.. Duke also stated that the terms
VI the consignment agreement referred
only TO paper cigarettes.
Mr. Duke gave the iupressio, ha,or.
the committee. Senator Lexow said tba,
| the business had increased since tho o,.
sahiSauon OF the American COMPANY. rha
number of cigarettes had increased from,
two billions to four billions. Mr.. Duke
also to.d the committee that previous 10
the formation OF the American Tobacco
| company, the five manufactures which
| organized the company employed 3iN
| workmen. They now employed a. a,a
| workmen. The factories which had been
leased by the company formerly en-
| pioyed Znf workmen. The American
| Company employed 5.8l5 workmen i'm the
same work or total OF 9,lei employees.
| as compared with 5,s95 In the employ of
| the mannfaPforps
| quently leased by the company.
ANTE-COMBINE CONDITIONS.
On cross-examnation. Senator Lexow
said that President Duke testified that
az the time OF the investigation there
were more than one hundred manufac-
turers OF paper cigarettes outside OF tho
| company. some Of whom manufactured
| machinemade. while others manufac-
| tured handmade cigarettes. Reading
| from a copy Of the testimony taken be-
| fore the committee. Mr. Fuller brought
out admissions by Senator Lexow that
| President Duke had testified that only
paper cigarettes were sold under tho
! consignment agreement, while other
goods were sold on different plan. He
! also said that sometimes this arrange
! ment was withdrawn, when the COM
pany was satisfied that the terms of tho
agreement had been violated.
Mr.. Duke had also testified that be-
| fore the organization OF the American
Company paper cigarettes were sold at
cost and that then this plan was
changed in order TO give customers
share In the profits. Senator Lexow also
said that Mr.. Brown, after stating that
the blacklist" was apparently correct,
said that the majority OF these dealers
we're cut of from the use OF cigarettes
-.
prices. and that each company stood by
itself.
ON redirect examination Senator Lexow
said that President Duke had testified
mat between coo and 1000 employees had
been thrown out OF employment by the
closing of three factories when the Ameri-
can Company was formed. About one
half of these employees were re-empioyed
in other factories, and the rest by the
American Company.
Later upon re-cross-examination, Sena-
tor I.exow testified that President Duke
had said that all of the employees In the
Hlll. the Consolidated, and the Goodwin
factories. the three which were closed by
the American Company. could have se-
cured work a. other factories, and this
chance was offered to them, but they
did not care 20 accept IT,
Dlstrict-Attorney Olcott offered in evi-
dence the Official record Of the proceed
lngs before the Chancery Court In New
Jersey. in 1854 to dissolve the American
Tobacco Company A number OF the
officers OF the company fled answers In
this complaint. and William A. Butler.
who was then secretary or the COM
pany. also fled an answer
Mr.. Olcott announced that the case for
the prosecution was practically closed.
He had one or two witnesses still to
call. but their testimony would be brief.
and the defence would nave the oppor-
tunty OF opening tomorrow.