The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-06-16
TRICKS OF A BIG TRUST
METHODS OF THE AMERICAN TO-
BACCO COMPANY VENTILATED.
Trial of the Indicted Officers of the
MOnOpOly-FOrced to Accept Juror
They Did Not Want.

NEW YORK, June 15.-Judgo Fitzgerald
to-day decided that the trial OF the Amer
lean Tobacco Company's officers should
proceed with the jury originally selected
w. j. Bryon, against whom certain charges
of indiscretion were made, remains a juror
Judge Fitzgerald, when the proceedings be-
gan, denied District Attorney Olcott'S mo-
ton to have Mr.. Bryon removed He also
denied motion made by Lawyer Choate
TO have Juror rash examined in regard 10
his interview with Reporter Piper Mr..
Choate then said he would demand TO have
the attention of the grand jury called 10
Reporter Piper, the editor and proprietor
OF the Morning Journal and Advertiser, for
having engaged in u conspiracy TO influence
the action OF justice against the defense.
District Attorney Olcott then opened the
case for the prosecution. He told of the
formation of the company, saying Prior
10 Oct. Z, 1883, there were five great cigar
cite manufacturing cOncernS-Alien IL Gin
ter, W. Duke Sons & Co., the Kinney
Manufacturing Company, w. S. kimba1l
d Co and Goodwin * Co. They had ~
per cent. of the trade. These five concerns
came together" MIR. Olcott claimed that
Allen & Ginter and w. Duke Sons & Co.
each took 30 per cent; the Kinney Tobacco
Company too 70 per cent. and kimball az
Co. and Goodwin 81 Co. each took III per
cent. The American Tobacco Company was
Incorporated Jan. 20, 1880, in the State OF
New Jersey. mo crime was committed by
that Incorporation he said but l will try
to show you that the methods declared
and carried out under that agreement OF in
corporation were a crime. Those five con-
Germs maintained their separate establish
mentS and continued to make and sell their
individual brands, but when bill OF goods
was sold, say, for instance, by Allen q
Ginter, the bill was made out from Allen d
Glnter, branch of the American Tobacco
Company. This is most significant. II
shows that this corporation was not formed
to conduct a cigarette business as an or
binary corporation composed or individuals,
but was corporation of corporations not
to start cigarette business, but Simply
from their aggrandiZed power to strange
competition. They sent circular 10 the
tobacco trade saying that a discount OF
certain percentage would be made TO the
jobber who bought of the branches. Any
jobber? Oh no. but any jobber who handles
cigarettes in satisfactory manner.
Satisfactory to whom? Satisfactory, to the the
manufacturer. Men with money and creqlt
and business reputation could not BUY the
goods of the American Tobacco company
unless in the opinion of the company they
handle their goods in manner SATISFACTORY
TO the company. .. -
MIR. OIcott then took up the provisions Of
the agreement There is nothing that
could not be covered up under the statue
laws if such trickery was allowed 10 go u vi
punished" said he. This Is the system
under which the American Tobacco COM
pany disposed of it's goods from Marcn M l.
1892 up to the time of its indictment. Inc
company was not indicted for STRIVING 70
overcome competition by falr means, toe
for using it's grasp on 80 per cent. OF the
cigarette trade but because it used its
power over unwilling jobbers to prevent
Joseph Park, of the grocery firm or Park
& Tilford. was the first witness Inc glst
Of his testimony as brought out by direct
and cross-examination, was that Park q
Tilford had an agreement with the Ameri-
can Tobacco Company and that under 1t
his firm was enabled to make a very large
profit 1t was stipulated that no other
cigarette was to be handled by the f1Pm, but
the National Cigarette and Tobacco Com
panys cigarette came on the market ana
Park & Tilford bought $4,000 cigarettes
from them Then Mr. Butler, presumably
representing the American Tobacco COM
pany laid down an ultimatum and Park q
Tilford were compelled to give up the other
cigarettes, returning them to the National
Company The agreement with the Ameri-
can Tobacco Company was in writing and
at present in the safe of Park & Tilford
Under the agreement, Mr.. Park said, his
firm received a large amount of stock on
consignment. Mr.. Park said the agreement
had been made voluntarily and that the
firm expected to live up to 1T.
During the cross eXaminatton of Mr. Park
Mr.. Choate declared that business princi-
pies alone were employed in the transaction
in the business of his clients. They are
the same principles as are employed by
business houses the world over" said Mr..
Choate. No further witnesses were called
before adjournment was taken until to-
morrow.