The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1897-06-19
A GRINDING MONOPOLY
DEALERS NOT ALLOWED TO BUY
ANTITRUST GOODS.
THE TRIAL NOT YET CONCLUDED
Damaging Testimony For the Trust--Mr. Fuller
For the Company Asked Questions for
an Hour All of Which Were
Ruled Out,
Ruled Out.

New York, June lS.-The trial of the
officers of the American Tobacco Com
pany, indicted for alleged conspiracy
under the antitrust law of this State,
was resumed today after an intermission
of day. Theodore Allen was recalled
by the prosecution and questioned re-
specting the number of all tobacco ci-
garettes manufactured in 1888, as COM
pared with the number of paper cigar
cites made at that time. He could not
say what the statistics were. Asked again
concerning his suit against the defend
ants at the time of the formation of the
so-called trust for commissions earned as
alleged in bringing the companies to-
gether. he declared that all differences
had since been amicably adjusted and
that he was now on good terms with all
of them.
An attempt on the part of the prose
cution to bring out evidence as to the
methods of the trust prior to 1890 was
objected to by Mr.. Choate and the object
ton was sustained The witness, Mr..
Allen. testified that in conversation with
Mr.. Duke, previous to the formation of
the combination, he told him it cost his
firm S5OS,OOO for advertising in 1888.
Ginter told him it cost his firm $2500O0
for advertising the same year. There was
some talk as to the remedy for competi-
ton.
On cross-examination witness said that
the consolidation was formed for the pur-
pose of promoting economy in the manu-
facture of cigarettes. He had received a
letter from Allen e. Ginter on September
6, 1889, in which the firm stated that they
were averse to joining a trust in the lit
eral meaning of the term, but if other
companies were considering a combina-
ton they might be induced to join in the
plan. Witness said that the presene price
of cigarettes was Is per cent less than
when the companies were doing business
independently.
Mr.. Fuller requested that the witness
produce in court tomorrow letter which
he received from Einstein & Townsend
on May 27, 1897 asking him to lend his
aid to the prosecution. He was also asked
to produce a copy of the letter he sent in
answer. Mr.. Fuller occupied more than
an hour putting questions relatives to
4
turers to the witness, all of which were
ruled out. Peter Hauptmann, of the firm
of Peter Hauptmann & Co, dealers and
jobbers in tobacco and cigars, was called
after Mr. Allen had become so wearied
that he asked to be excused for the day
Mr.. Hauptmann's firm does business in
st. Louis. He testified that previous to
1893 his firm handled about 100000
trust cigarettes yearly In 1893 he
bought cigarettes from the National
Cigarette Company and after that the
American Tobacco Company refused to
fill his orders, claiming that he had vio-
lated the agreement by which the trust
held the jobbers. He went to the st. Louis
headquarters of the American Tobacco
Company and had conversation with
Mr.. Brown. The latter told him that he
must quit selling Admiral cigarettes or
the trust would stop selling him the
goods Of its manufacture. Brown toll
him the American Tobacco Company
sold 81 or 9S per cent of all the cigarettes
manufactured in the country and did not
see why he would not sell trust goods
exclusively. He was told by Mr.. Brown
that If he stuck by the trust he would
sell 100000 cigarettes.
Witness was asked by District Attor-
ney Olcott if he gave in to Mr.. Brown
and replied that he did not A letter sent
to the witness by the American Tobacco
Company was offered in evidence and
read. 1t was to the effect that the com
pany felt constrained to discontinue send
ing him further goods except at net prices
without discount Not until June. 1896
was the witness able to purchase goods
of the American Tobacco Companys
Spot cash had always been
paid by him for the trust goods. The
trust not only refused to sell him tobac-
co, but he also was not allowed to buy
goods from other firms in st. Louis that
handled the trust cigarettes. He said he
never was an agent of the trust.