The morning news. [volume] (Savannah, Ga.) 1887-1900, 1897-06-16
TOBACCO TRUST ON TRIAL.
BRYON A JUROR DESPITE THE PRO-
TEST AGAINST HIM.

MIR. ChORte to Call the Attention of
the Grand Jury to the Reporter
and the Editor and Proprietor of
the Morning Journal.
New York, June 15.-Judge Fitzgerald to-
| day decided that the trial of the American
| Tobacco Company's officers should pro-
ceed with the jury originally selected
w. ]. Bryon, against whom certain
charges of indiscretion were made, remains
a juror
Judge Fitzgerald, when the proceedings
| began, denied District Attorney Olcott's
motion to have Mr.. Bryon removed.
He also denied motion made by Lawyer
| Choate to have Juror Fish examined in
regard to his interview with Reporter Pi-
per. Mr.. Choate then said that he would
demand to have the attention of the grand
jury called to Reporter Piper and the edi-
tor and the proprietor of the Morning Jour
nal and Advertiser for having engaged in
| a conspiracy to influence the action of jus
| tice against the defense.
District Attorney Olcott then opened the
case for the prosecution. Mr.. Oicott told
of the formation of the company. He said,
prior to Oct. II, 1899, there were five
great cigarette manufacturing concerns
Allen & Ginter Dukes Sons & Co., Kinney
Manufacturing Company, w S. Kimball
& Co. and Goodwin & Co. These five con-
| Germs came together" Mr. Olcott claimed
| that Allen & Ginter ana w. Dukes Sons
& Co. each took 80 per cent, the Kinney
Tobacco Company 20 per cent, and Kim
hon q 10 q
cent.
1.-The American Tobacco Company was
| incorporated in January, 1890, in the state
of New Jersey. No crime was committed
by that Incorporation, but 1 will try to
show you that the methods declared and
carried out under that incorporation were
a crime, These five concerns maintained
their separate establishments and contin-
| ued to make and sell their individual
brands, but when a bill of goods was
sold, say for instance, by Allen & Glnter
| that bill was made out from Allen g.
| Ginter, branch of the American Tobacco
| Company.
''rhis is most significant. 1t shows that
this corporation was not formed to con
| drct cigarette business as an ordinary
corporation, company Or individuals, but
! corporation Of corporations, not to start
| their aggrandized power to restrain aye,
to strangle competition.
They sent circulars to the tobacco
| trade, saying that a discount of a certain
percentage would be made to the jobbers
| who bought of the branches. Any jobber
| who handles cigarettes in a satisfactory
manner satisfactory to whom? Sat
| isfactory to the manufacturer. Men with
| money and credit and business reputation
could not buy the goods of the American
Tobacco Company unless in the opinion
| of the company they handled their goods
| in n manner satisfactory to the company
This means plainly that these goods
| must be sold at any price fixed by the COM
| pany. No matter what the situation of
| the jobber may be; no matter how much
| he may need money, or how much he may
wish to clear out shop-worn stock by dis
| posing of goods at a price lower than the
| cost, he cannot do it.
| 'These people control 30 per cent. OF the
| cigarette trade of this country. This
means that nine out of ten cigarette
| smokers want the cigarettes made by the
| American Tobacco Company, and unless
| jobbers handle these goods he can sell
| only to one out of ten customers, and he
cannot handle the American Tobacco
Company's goods except at their terms"
Mr.. Olcott then took up the provisions
of the agreement One was that the SELL
ing price should be such as the tobacco
company fixed. Agents, he said, were OBJ
liged to guarantee sales. Real agents do
not do this. All cigarettes were to re-
main the property of the company. The
company agred to pay all freight charges
The agents were to have guaranteed the
company against loss by fire. This was
another unusual preceding The agent
agreed to pay all charges including taxes
and licenses.
There is nothing that could be covered
up under the statute laws If such trick
cry Is allowed to go unpunished" said Mr.
Olcott. "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 20 overcome COM
petition by fair means, not for using its
grasp on 30 per cent. Of the cigarette
smokers, but because It used It's power
over unwilling jobbers to prevent them
from selling other cigarettes. ."
Joseph Park. of the grocery firm Of
Park & Tilford was the first witness.
The gist Of his testimony, as brought
out by the direct and cross examination
was that Park e. Tilford had an agree
ment with the American Tobacco Com
pany and that under IL his firm was
unable to make a very large profit IL
Tas stipulated that no other cigarette
was to be handled by the firm, but the
National Cigarette and Tobacco Company
came on the market and Park & Tllford
bought 5000 cigarettes from them. Then
Mr.. Butler, presumably representing the
American Tobacco Company, laid down
an ultlmatum and Park a. TifOrd were
compelled 20 give up the other cigarettes.
returning them to the National company.
The agreement with the American To-
bacco Company was In writing and is AZ
present IN the safe OF Park & Tllford.
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 10 live up 10
it. During the cross examination OF Mr.
Parks Mr.. Choate declared that busl-
ness principles alone were employed In
the transactions OF his clients. They are
the same principles as employed In BUSH
nesss the world over.
no further witnesses were called and an
adjournment was taken tlll tomorrow.
Three Nominations sent In