The Norfolk Virginian. [volume] (Norfolk, Va.) 186?-189?, 1897-06-16
TOBACCO, TRUST TRIAL
Judge Fitzgerald Decides That Il Shall Pro-
ceed With the Original Jury.
CASE OPENED FOR THE PROSECUTION
"a Corporation Of efCorp0rntfo ions Not To
Conduct a. Cigarette Business. but
to StrnngIc cCompetftfon--sIclI,o eis
OF the Trust-RcccSx Tnhcu After
Examining One witness.
New York. June Is, 1897.

J
New York, June 49, 1897.
Judge Fitzgerald to-day decided that
the trial Of the ltme; lean Tobacco COM
pany's officers should proceed with the
jury originally selected w J. Bryon,
against whom charges of indiscre-
ton were made, remains a juror Judge
Fitzgerald, when the proceedings began.
denied District Attorney Olcott's motion
TO have Mr. Bryon removed. He also de-
MED motion made by Lawyer Choate
10 nave juror Fash examined IN regard
10 his Interview With Reporter Piper.
Alr. Choatc then said that he would
demand to have the attention OF the
grand jury called to Reporter piper, the
editor and proprietor of the Morning
Journal and Advertiser, for having en-
gagged IN conspiracy to influence the ac--
ton or justice against the defense.
District Attorney Olcott then opened
the case for the prosecution. Mr. Olcott
told Of the formation of the company.
lie said: Prior to October 17th 1889.
there We're five great cigarette manufac-
turing concerns-Allen & Gintcr, w.
Duke, Sons & Co, Kinney Manufac-
turing company, w. S. Iimball & Co,
and Goodwin & Co. They had 30 per cena.
or the trade. These five concerns came
to-gether."
Mr.. Olcott claimed that Allen G. Gin
ter and w. Duke, Sons & Co. each took
80 per cent; Kinney Tobacco company,
70 per cent. and kinlball & Co., and
Goodwin & Co. each 10 per cent
The American Tobacco company was
Incorporated June 10th, 1890, in the State
or New Jersey. No crime was commit
ted by that corpora ton, but I will try to
show You that the methods declared and
carried out under tina. agreement OF in
corporation were a crime.
Those five concerns maintained their
'septrdta sabi ishnlerf IS rattJis con thru ed
TO make and sell their individual brands.
but when bill OF goods was sold say
for instance, by Allen & Ginter, the bill
was made out from Allen & Ginter
Branch OF the American Tobacco compa-
ny.
This Is most significant It shows
that this corporation was not formed to
conduct cigarette business as an orCli-
nary cooperation composed Of individ-
uals, but was 4 corporation Of corpora
TINS, not TO start 4 cigarette business,
but simply from their aggrandized
power to withstrain, aye, TO stranglc
competition.
They sent circular to the tobacco
trade saying that a. discount Of a GER
tam percentage would be made to the
Jobbers who bought OF the branches
Any jobber? Oh, no; but any job
Der who handled cigarettes in salts
factory manner
satisfactory to whom? Satisfactory
to the manufa cturer. Men with money
ana credit and business reputation could
not buy the goods Of the American To
Dacco company unless, in the opinion of
the company, they handle their goods
IN manner satisfactory to the com
lpany.
This means. plainly that these goods
must be sold at any price fixed by the
company No matter what the situation
| OF the jobber may be, no matter how
much he may need money, Or how much
| ne may wish to clear out shopworn
| stock, by disposnG OF his goods at a
price lower than the cost, he cannot do
"These people control ninety per cent
| OF the cigarette trade of this country,
This means that nine out Of ten cigar
cite smokers want the cigarettes made
! by the American Tobacco COMPANY and
| unless a jobber handles these goods he
can sell only to one out Of ten Gus
TONERS and he cannot handle the Ameri-
can Tobacco company's goods except at
| their terms"
Mr. Olcott then took up the provisions
or the agreement. One was that the
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 company. The company
agreed 10 pay all freight charges. The
agents were to guarantee the company
against loss by fire. This was another
unsusal proceeding. 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 to 20 IN
punished" said Mr.. Olcott. This IS the
system under which the American To-
bacco company disposed OF its goods
from March 1st, 1892. up to the time OF
ITS Indictment. The company was no,
indicted for striving to overcome com
petition by fair means, not for using its
grasp on ninety per cent, OF the cigar
e.te trade, bu. because it used lis power
over unwilling jobbe!s TO prevent thesn
from selling other cigarettes"
Joseph Park, OF the grocery firm OF
Park & Tillford, was the first witness
The gist OF his testimony, az; brought
out by the direct and cross examine
ton, was that Park &: Tillford Ind IN
agreement with the American Toba eco
company. and that under It his firm wa :
enabled 10 make very large profit.
1t was stipulated that no other cigar
cites were to be handled by the firm
but the National Cigarette and Tobacco
company's cigarette came on the market
and Park &: 1fllford bought 25. 600 cigar,
ettes from them. Then Mr.. Butler. pre-
sumably representing the American To
baCcO company, laid down an ,,lt in, a t,,,,,