The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1897-02-28

any particular brand that the public
wants. For our own part, we would SOON
or have fewer jobbers than we now have"
New York, Feb. 24-James Il. Duke,
President Of the American Tobacco Com
pany. was one of the first to appear in
the room of the joint legislative commit
tee on trusts He brought with him the
| labor statistics asked for yesterday by
Senator Lexow. The papers show that
prior to the incorporation Of the Ameri-
can Tobacco Company in 1890, the sew
eral companies gave employment to o.
500 tobacco workers.
| To-day the number Of employees Of the
company is 9,194, making an increase
since the date of consolidation Of 3,299.
In calling to order Chairman LexOw
l4said: 1T is the intention of the commit
tee TO investigate the so-called coal trust
tomorrow. Charges have been made
that the coal combination is the most
vicious trust that exists and certain
newspapers have made specific charges
on the existence Of this combination or
trust"
President Duke then took the stand
He said that the capital stock of the
New Jersey concern prior to consolida-
ton was $10,O00,000, which, with the
acquisition Of the various companies, was
increased to S25,000,000 This was sub
quently raised to $40, $500 600.
Good will, such as patents and trade
marks, cost $6,000000.
How much did Allen and Ginter re-
ceiye?'
"The same as Duke and Company, ST.
497 900"
The witness said that Kinney and Com
pany received S4,999,000 in stock with
a guarantee of $1,500,000 in live assets.
w. S. Kimball and Company, $2,499, 900
and the Goodwin Company S2,499,OO0 Of
common and preferred stock.
How much was issued for the live as
cts of the various companies 2"
About 100000 worth of stock.
| And how much for good willY'
"$19, 100000"
| The witness said that in distributing
! the stock, the earning Of the five original
companies was increased
The number of the original stock hold
ers was from 10 to %; it is now some
where between 1000 and $1,000 Two
fifths of the company's stock to-day was
4
stock The books OF the company are
kept in the main office in New jersey.
| Asked about the machinery in the va
rfous factories absorbed in the consolida-
/ ton, witness said they were in most all
cases in high state Of efficiency.
/ did you not practically secure control
OF the machinery by constellation
mo, two competing companies had
the same machines we had"
Witness said that the fluctuations in
the stock market were made in Wall
street A dividend Of nine per cent in
cash had been declared in 1896 and there
was a surplus Mt the time Of 81 100000
Besides the surplus given, witness said
there was a 100000 surplus.
Asked by Mr. Mazet if he was not buy
Ing end calling the stocks OF the Ameri-
can Tobacco Company, Mr.. Duke said
that was private matter and he desired
to be excused from testifying in that
particular.
When did you so into the plug bust
ness?"
in 1897
How much plug tobacco is manufac-
tured annually
!
In 1889 the cost Of introducing the
plug tobacco into the foreign markets
was 100000.
Josiah Brown, Secretary OF the Am
erican Tobacco Company, since 1895, was
the next witness
How often have you gone to the main
Office in New Jersey since 1852"
about thirty times"
do you know that the books are kept
in the New Jersey Officer
Il believe they areI last saw them
there in 1896. The general books are
in New York, but the stick ledger and
minutes books are in the main Office in
New Jersey. The law provides that they
be kept there"
4 Witness said he looked after the cigar
cite end of the business.
Senator Lexow then asked the witness
to look at an abstract prepared by coun-
sci of the company indicating how many
'consignees agreements" had been re-
yoked for handling opposition goods and
cutting prices.
Mr.. Brown said the list was a, correct
one except they were cut off because they
cut prices.
Francis B. Thurber was next called.
He said he rs president of the American
Grocer Publishing Company, which Of
flee he has held during the last three
years. He was questioned briefly in re-
lation to the sugar trust.
George ID. Wheeler, a wholesale cigar
dealer in Syracuse was the next witness.
He said he had been injured by the Am
erican Tobacco Company as a holder
of the factors agreement. This was
brought about because he bought cigar
cites of the National Cigarette -Compa-
ny. The American Tobacco Company
refused TO consign him goods because he
dealt with the National Cigarette Com
pany. His suspension as a factor was
ordered by Secretary Josiah Brown, OF the
American Tobacco Company, who COM
municated with witness by mail to that
effect
Witness did not have the letter as ne
had left in his home in Syracuse.
Did the letter state why the Ameri-