Birmingham state herald., 1897-06-24
LEXOW HAS HIS SAY
To the Committee Investigating the Gig arette Trust-What Duke and .
 Brown Had Said.

New York, June 23.-Judge Fitzgerald today overrnled the point raised by coun- sei for thendefense in the case of the in
 dicted officers of the American Tobacco Co. that Senator I.exow could not require the accused to answer the questions in c6urt
 Senator Lexow then replying to ques-
 tions by District Attoreny Olcott, said that the different tobacco firms went into. a combination for their mutual bene- fit, and that these firms made between 80 and go per cent of the paper cigarettes on the market; there was no monopoly
 in the plan of conducting the business
 of the company; that the eonsignee's agreement was made for the purpose of fixing and maintaining rates and causing conslgnees to live up to the agreement.
 Senator Lexow then testified that Joshua Brown, Of the Tobacco company, identified certain schedules submitted to him and showing tobacco dealers throughout the country who had been
 blaeklisted. for handling the goods of the Ma tional Tobacco company, and admit ted in substance they were correct. Witness added that his personal inn precision was that the schedule submit ted to Mr. Brown and corroborated by
 that witness at the senate investigation we re approved by the committee and the | counsel of the Nationa! Tobacco com X panys' 5fe ot sAE
 District Attorney OIcott then verified
 bys,witness copy of Browns testimony
 before the contmirtee. and moved that It
 be submitted as evidence.
 |. On e-assenblirg under cposs examina-
 tbon Senator Iexow State d that MT. Duke r also ssa i'd that the terms of the coneigDee
 agreement referred only to paprT ciga- reftes .Mr. Duke gave the impression be-
 fore gth5s committee, MT. Lexow sta ed,
 thaiv the business had increased 50 per
 cena since the organization of the Ameri-. can Tobacco company. see.
 The number of eigar;t es had l1creas- ed from 1000, 600, GOO to 4000. 900 00o. MT.
 Duke also told the committee hat pre-. TIious to the formation of the American IT ihacce company 'Jhe five companl-s that
 orgardledi the company employed S.l00
 wccknlen They now employed 3t46O
 wol k msi9s The factories which had b en
 leased by the companies formerly em-
 plcyed 2.710 workmen.t The American
 cpmpany employed 5,Sl0 workmen in the same work or a totaa of 9,174 employees as compared with a,S90 in the employ of the factories Subsequently leased by the com pariy. Mr Duke testified at the same time that there were more than one hun dr'ed mannfacturers of paper cigarettes
 orps side Of i;hla company, some of whom manufacglrsd machine made. while others malrufactured hand made ciga- rettes- .S,',,
 Reading from copy of the testimony
 taken from the committee MT. FuFlsr
 brought admissions from MT. Lexow that Presi I,anss, Duke had tes flied hat only
 paper c.garsttes were sald under the cor-
 srgne's agreemeult while other goods
 wef,s. sp1d, orr a, cifferepr plan. He also said thai sometimes Lis arrangement was wrthdra wn when the company was
 s!aitalied the U rms of the agreemeni hud been violated, MT Duke had lso testi. fled than shefore che formation of the
 Amer.cara Tnbacco company ,cigarstt 8
 werp sold at a. pleft and that the compa- my was organized to aibow the customers i to p5t'icipaie in the profits.
 On redirect examination, Senator Lex oW said President |. Duke had testified that between coo and 900 employees had ! been thrown out of employment by the | closing of three factories when the
 American company was formed. About one-half of these employees were re-em-
 ployed in other factories established by the American company. Later. upon re- cross examination, Senator Lexow testi- fled that President Duke had said that
 all of the employees in the Hill. the Con- solidated the Goodwin factories the |, three which were closed by the American Tobacco company, could have secured work in other factories, and this oppor- tunity was offered them. but they re- fused.
 The district attorney submitted the proceedings before the chancery court in New Jersey to dissolve the company in 1894. The counsel for the defense also filed an answer.
 Mir. Olcott announced that the case for the prosecution was practically closed. He had two or three witnesses. to call | yet. but their testimony would be brief. 2 The court adjourned until tomorrow.