The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1897-06-17
THE FAMOUS CASE WAS OPENED
UPIy NEW YORK CITY YES
TERDAY.
A STATEMENT BY The PROSECUTION
District Attorney OIcOtt Endenv"red
to Show How the Trust StrangIch
CompetitiOn-Memb of
Grocery Firm Testified.

decided today that the trial of the Ameri-
can Tobacco company's officers should
proceed with the jury originally selected.
w. j. Bryon, against whom certain
charges of indiscretion were made, re-
mains juror.
Judge Fitzgerald, when the proceed
ings began, denied District Attorney Oh
colts motion to have Mr.. Bryon removed.
He also denied motion made by Lawyer
Choate to have Juror Fash examined in
regard to his interview with Reporter
Piper.
Mr.. Choat then said he would demand
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 engaged in
conspiracy to influence the action of JUS
tice against the defense.
District Attorney Olcott then opened the
case for the prosecution. Mr.. Olcott told
of the formation of the company. He
said:
prior to October II, 1888, there were
five great cigarette. manufacturing con-
-. All. 2. C;.to, NY NIB co,s g..
cerhs-Alieh N pih'er' w. Luke 'oohs ~
Co., Kinney Manufacturing company, w.
) Kimball IL Co. and Goodwin " Co.
They had 30 per cent of the trade. These
five great concerns came together.
Mr.. Olcott claimed that Allen u Ginter
and w. Duke Sons d Co. each took 80
per cent, Kinney Tobacco company took
% NOR cont and J[imholl 4, IN and
Goodwin a. Co. each took 10 per cent.
The American Tobacco company was
Incorporated January j, 1870, in the state
of New Jersey. NO crime was committed
by that incorporation, but it will try to
show you that the methods declared ana
carried out under that agreement OF IN
corporation were crime. These hve cor, con
Germs nlalntaihea their separate es'aphsI II
ments ana continued 10 make them sen
thelr lndlVidual Draids, pui Wheh soouS
were SOLD, Tor instance, by Aleh " Tinter'
the bill was MADE out from the nlieh "
Ginter 'branch OF the American Iopacco
company :,
ms was most sishihcah'' us II showed
that TINS corporation was NOT loriheu ~
conduct Il cigarette business as an orGl-
nary corporation composed OF individuals,
but was corporation OF corporations, not
to start cigarette business, put SIMPLY
from their aggrandized power TO strange
competition. 1880
Ihey sent circular TO the tobacco
trade, saying that a discount OF certain
percentage would be made TO the Jobbers
who bought OF the branches.
ANY JobberE
"Oh, no; but any JobDers VINO handle
cigarettes in satisfactory manner
,Satistactory TO whom.
satisfactory to the manufacturer. Men
with money ana credit ana business repu-
tation could not buy the goods OF the
American Tobacco company, unless, IN
the OPINION OF the company, tney handle
their goods satisfactory. to the company"
Taking up the provisions OF the agree
ment, he said:
There Is nothing that could not be Gov
cred up under the statute laws if such
trickery was allowed to 60 unpublished"
This is the system under which the
American Tobacco company disposed of
its goods from March /. 1892, up to the
time of its indictment. The company was
not indicted for striving to overcome COM
petition by fair means, not for using its
grasp on 90 per cent of the trade, but
because it used its power over unwilling
jobbers to prevent them from selling other
cigarettes.
Joseph Park of the grocery firm of
Park X T'ilford, was the first witness.
The gist of his testimony as brought out
by direct and crOSS-pyDminntion was that
Dorl, 4, T;lford had an ,uroon,nnt ,,,;th