The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1897-06-16
TOBACCO TRUST ON TRIAL.
District Attoruev Olcott Told Of
Its Working to Kill Competition.
Only ONE WITNESS WAS EXAMINED.
lie snhstantiatcd thc Indictment -
the Prosecution OF the Methods
of the Company.


decided today that the trial NJ Ina Am.r,-
9S' TOBACCO eompany's Officers should pro-
. ees' With tho Jury originally selected.
Judge FtaScrald. when the proceedings
{ ooran. dcuied District Attorney olcott's
motion to have an objectionable Juror re-
moved. Hc also denied a motion made by
| LAWYER Choatc to have Juror Fash ex-
"m'ned In regard to his interview with Rc.
porter fipe. Mr. Choate then said ho
would demand 10 have tho attention of
tho Grand Jury called to Piper. and tho
editor and proprietor of the Morning Jour-
nal and Advertiser for having engaged In
a conspiracy 20 influence the action OF ius-
,cc against tho defense.
District Attorney oiectt then opened the
case for tho persecution.
Mr' olcott told Of tho formation OF tho
company. lilo said; Prior to October IL.
1882 there We're Ave great cigarette manu-
featuring concerns. Allen 4 Ginter. w.
Duke, Sons a Co. Kinney Manufacturing
company. w. S. Kimbail q Co, and Good
win CO. They had 30 per cent OF tho
EuthAr"
Mr.. olcott claimed that Allen & Ginter
ana w, Duke. Some a Co. each had took 50
hor cent. Kinney Tobacco company took 70
uef cent and kimball n Co, aud Goodwin N
Go. each took 10 per cent.
rho American Tobacco company was In
culpurated January 30, 1880. la the State u
New Jersey. No crime was committed nv
mat incorporation. but viii try 10 show
Ven that tho methods declared and carried
out under that agreement OF Incorporation
were a crime. Thcso Ave concerns main
tanned their separate establishments and
continued la make and sell their Individual
brands but when a bill OF sooda was sold,
say Tor instance by Alien 4 Gintor the
bill was made out from Allen n Ginter,
branch of the American Tobacco company.
rms was most siRnileant, II showed
mat this corporation was not formed TO
conduct cigarette buoincss IA an ordi-
nary cnrnoration ronpcwcd Of individuals,
but was a corporation OF corporations; not
TO start cigarette business. but simply
from their aggregated power to stifiio COM
petition, They sent circular to tho to-
hacoo trade saving that discount OF
certain percentage would ba made to tho
johberE who bought Of tho branches. Any
Jobbor2 oh, no, but any jobbor who
handles cienrett,s, In a satisfactory man
ner Satisfactory 20 whom Satisfactory
10 the manufacturer. Mon with money and
credit and business reputation could not
buy the goods OF tho American Tobacco
company unless. In tho opinion OF the COM
pany. they handled their goods sat!sfactor-
ily TO tho company"
MIR. olcott then took up tho provisions Of
the agreement.
cred M under tho statute laws II such
,rickcry was allowed to 20 unpublished"
said Mr.. Olcolt.
This In the svstcm undor which the
American Tobacco company disposed OF It's
goods from March ]. 1899 up 10 the lime
for striving to overcome oompe-
ltlon nv fair means; not for using it's
grasp upon 90 por cent of tho trade, but
beeause IL used its power over unwilling
lohbers TO prevent them from selling other
,lGarnttoH +"
joseph Park OF tho grocery firm Of Park
& Tiliord was the first witness. Tho gist
II his testimony as brought out by direct
and cross examination, was that Park &
rllford had an agreement with the aneri
mn Tobacco company and that under II hts
lrm WAS enabled to make u worry LARGO
profit IL wnH stipulated that no other
'ifarcttc WIS TO be handled by tho firm,
ut tho National Cigarette and Tobacco
cigarettes came on tho market
md Park Tlford bought q. 900 crsr-
ties from them. Then Mr.. Putler pre-
lmably representing the American To-
ncco oomnanv, laid down an ultimatum
nd Park & T.liord we're compelled 10 give
y Tho other cigarettes. returning them
0 the National company, The agreement
18th tho American company was In writ
~ and Mt the present time In the safe VI
ark y Tilford Under tho agreement Mr..
ark said his firm received n large amount
stock on consirnmcnt Mr.. Park tuid
10 agreement Ind been voluntary and
nat the firm expected to live up To II.
urlne the cross examination Of Nr. rnrk,
r. Chpnto declared that business prln-
piles alone were employed in the t:insac-
on NJ the business OF his clients.
"Thov arc tho same principles az nro
1p'oyed bv business houses tho world
YER" said Mr.. Choate
No further Witnesses were called before
iiournment was taken until tomorrow.