New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1897-02-24

NO association formed at that time. 1t was
simply an agreement We asked for rebate
which would prevent the cutting of prices"
Then you granted what you asked?"
Yes sir We asked the American Sugar Re-
fning Company to fix a price and to maintain
that price. In other words. asked for pro-
lection. and they gave II to us"
Senator Lexow then asked the witness II he be-
lieved that factors agreements did not destroy
competition.
COMPETITIONS AND COMBINATIONS.
Without competition the whole trade of the
United States would be destroyed" he said. and
In almost the same breath he contendcd that COM
binations a benefit to the consumer as they
to trade.
''I'ut how do you account for the fact that trade
went on for 800 years Of the Christian era prior to
the organization Of these syndicates?'
simply because twenty-five years ago not per
OF all the goods sold in the retail stores were
of uniform quality and price. Now % per cent are
Of uniform quality. cost and price"
Now is 1t not fact that the Wholesale Gro
GERS Association is tail to the kite of the Amer-
can Sugar Refinery
mo. sir
Mr.. Smith continued to defend the making of
factor agreements by the trusts. Without the ex
stence of the agreements he said 1t would be posi-
bic for man IN a hundred to cut the price OF
and consequently TO work to the detriment
of the other ninety-nine. He maintained. as ana
refused TO any dealer, unless there was doubt as
to his financial ability TO meet his obligations
Senator McCarren then examined the witness az
some length. and compared the system by when
sugar was sold with that by which other staple
groceries were handled by the retailers Mr.. Smith
explained that each class of goods was sold on a
different basis but least sixty cases the goods
sold on what practically amounted 10 FACTOR
agreement. although no written agreement existed.
Rebates were granted condition that there
should be no cut in prices.
Before ending his evidence. Mr. Smith, as many
of The trust promoters who have given testimony
found an opportunity to denouncc the interference
nv legislative bodies with commercial corpora
tons.
JAMES B. DUKE ON THE STAND.
When Mr.. Smith left the stand Senator Lexow
al nounced that the committee would next take up
the American Tobacco Company James b. DUKE
the president Of the company. which Is popularity
known as the Tobacco Trust the first witness
called to testify to the operations of this company
He informed the committee that the American 10 ~
corporaed under the laws of NewJersey. Mr..
Duke the outset was unable TO suppS tne COM,
pany should have been organized in New-Jerseyy,
but eventually Senator Lexow forced him 70 aomi,
that the reason was TO be found In the fact that
the laws Of New-Jersey were more considerate anu
to trusts than the s laws sas OF be sy before
demonstrated In the case OF the sugar anu h""'e'
trusts 49,, .o,,.oo, oor,nory was frs. organized,
brought out the following weTe
f pnbe sons CO.. ae of &orih " Carolina
bail CO. Of RochessT GSodT ompSny cot Of New
York Subsequently the trust acquired these add Of
r wn1e tho o
W Gail Ak and Mar6ugg Br0 81 Ssw O. Orleans Rfa
mend @ BrOfIs CT ar Company
II. Ellis & Co., Of Baltimore. ana a. Il. Martin "
Having obtained the names Of these subsidiary AIRY
companies controlled by the ameI h ,o,ive
that urged the New-Jersey incorporation 49,, :,
win rou reB Bsde he and iaia that s wat was the
nature of the situation that justified the organize
ton Of company IN the ssn ,nat oi in that State
iinguished from the four States In which 1t owned
Wei" replied Mr.. Duke, with considerable n hest esd
then. again. counsel advised us to organize In New
the preliminary taxes made lower? ~,
Eyes, and the yearly taxes also" answered MI
rs 1T not fact that the primary reason for the ne
%ew"Jersey was that the laws of that state per-
NIT one company to acquire the STOCKS ana Sc
turites Of other companies 'rahsac'ne suo''''
TALLY the same business? . 49, Ala m, roo,,
That did not move us because we e,S do not mean
Were you principally concerned IN the ma Inn
up Of the corporation OF which you are no" pfeSi-
so far o6eo ST IN
was the question of taxation?"
| YES. SIR
| A MONOPOLY OF 90 PER CENT.
Then Mr.. Lexow branched off in the direction of
| ,nouirng as 10 the amount Of business controhed
| ny the American Tobacco Company. Mr.. DUKE IN
| renlv TO questions admitted that his company mao
| n monopoly Of actually about 30 per cent OF the
cigarette trade of the country In what are known
as the "all-tobacco' brands OF cigarettes ne 'eSu
| fed that the trust made ABOUT oo OF " pei o "
/
The committee would IKE to know s ,bs{ ve
| Mr.. Lexow whether all the factories tnat g9 9
| have named as being bought up are now running
Co. the Hail factory and the Consolidated cg h
cite factory I'VE closed down these fact9ries' er
manufactured there were removed to other fac
tories which we owned and are nov ueiE obarco
COMPANY in these instances, did not BUY me Dui 1
ngs factories bu, simply bought ar up move tnS making
! IN some of our other factories 49,, ,, -,
80 How Iho cn many m feno Myfs ''S'"''Se
u 1T was only small concern. ! cannot exac ht
s say no" M nha6lv not more than 1O When we
moved the brand to our Roches ao,o tbege o
''' aHow many employees were discharged from
Halls factory.
have you no figures which will shoW even wen ap
nrovimatcIv how many hands were dlscnatSe,ui:
well, as a guess. should say from ABOUT lou "
"Now. was the number not something Ike 4'u'
Il don't think 1t was as many as thaiI, on this
However when pressed more closely on 70 ' nc
cOnt Mr.. Duke 1elt nlnlSel coI'' qiiIs
tonuicden that in the busy season Hairs 1acto.S
might have employed as many as sy e" ouas
tsinnjnp that the Consolidated cigarette factory
might have employed 800 hands ne admitI .a
ann am down but he said that its trade had been
removed to another factory which me uns. n.
factmre of the Consolidated companys bran9 nae had
! ttaon removed to Baltimore. and that many OF "a.
oooomnanv's employees had received offers OF piaces
in baltimore He was unable NAP to 10 ovs s themselves
nv ~ ,bn offer Mr. Duke added that since the en-,
iareement Of the Twenty-second-st factory, pW ~
by the company the NUMBER Oh "'"uS '''N
doubled - ,,o, ,ho American Tobacco
| Company sells to It's FACTORS OF agents. va" ~
! dwelt rpon by the committee. ~. ., s,o NJ
w., have abolished system lot inc s"ic ~
| xonds through the agency or factors, VIII
yJhu n, vou have agreements have you not! was