The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1897-02-24

brought Out Dy the IexoW Iuve9tfSo-
tIon, Fix the Price and Dictate the Ex-
elusive Sale OF Their Goods Through the
Grocers' Association, the Members of
which Received Rebates for Their
Trouble - Duke. of Cigarette Fame, Is
at Present on the Stand.
New York. Feb. 23.-The joint iegisia-
tive committee appointed to investigate
the existence Of trusts and monopolies
in this state, resumed its sittings today.
G. Waldo Smith, president OF the Whole
sale Grocers association OF this city and
vicinity. was the first witness. He said
that mis- association, which is not incor-
porated. operates over New Jersey. Con-
necsicut. part OF Massachusetts,, New
Hampshire. Vermont and the Hudson as
far as Poughkeepsis, ". Y
Mr.. Havemeyer and John z. Searles
OF the American Sugar Refining COM
pany, held conference with the officers
Of the Wholesale Grocers association on
June 6, last year.
Where d.: you get the prices of su-
gar frcm?"
THE prices come from the sugar re-
fineries every morning
Chairman Le&ow asked a number OF
questions designed 10 elicit admissions
from him that the Grocers association is
dominated by the American Sugar Re
filming company, but they were parried.
~
formation of the Wholesale Grocers as
ISOLATION the grocers lost by selling su-
gar. In reply to another question Mr..
Smith said he had no knowledge OF the
Grccers association drawing up a code
CT rules making the price OF sugar uni
form.
DO you wish 10 be understood that the
American Refining company is respon-
siole for the code of rules making the
price of sugar on an equality everywhere
and noe the Wholesale Grocers associa-
tion?"
The Wholesale Grocers association
had nothing TO do with that rule 10 my
knowledge and has had nothing to do
With since six years ago."
AGREEMENT. NOT A TRUST.
The witness said that the sugar refin-
cries at the solicitation of the southern
and western grocers. adopted the price
fixed by the American Sugar Refining
company as the standard all over the
country
Witness identified copy of the form
Of affidavit made to maintain the fixed
prices of sugar signed by his partner,
Mr. Sales.
I'VE went" the witness said. "to the
sugar refineries. They said, we will give
list Of customers and If you can get
80 per cent Of them to ask for what YOU
want. we will grant it,
Then it was the American Sugar Re
filming company which proposed the
Wholesale GrOcers association"
NO association was formed at that
time. 1t was simply an agreement-we
asked for a rebate which would prevent
the cutting of prices
Mr.. Smith said il was simply bust
ness transaction on the part OF the
Wholesale Grocers association TO fix the
prices first.
Does not the American Sugar REIN
ing company refuse to sell to the retail
er direct?"
''No sir; 1 think it sells to large retail
ers.''
Does not a factors making or I'M
making depend upon his securing a fac
tors agreement for the American Su-
gar Refining company and it's allies?'
FEARS UNIVERSAL RUIN.
1T depends on whether ne can sell SUI
gar or not. The destruction OF the Job
Der lies in fierce competition. A man
not having a factors agreement would
ne put TO great disadvantage as compar-
Ell with his competitors. Without the
factors agreement free competition
would follow and universal ruin would be
the result, added the witness.
THE TOBACCO TRUST.
James b. Duke. president OF the Amer
lean Tobacco company, was the next
witness. The company was organized
under the laws Of New Jersey in 1890
The Allen and Ginter company, with
Duke and Sons. the Kinney company.
and the Kimball and Goodwin companies
Of New York and Rochester. were the
concerns originally combined.
Did you take in other companies az
ter you organized?"
Yes sir, nine others
Did the American Tobacco company
receive the books OF the old companies? p
mo sir; they remained with the old
companies"
DC YOU operate under a factors
egrssmret?'
mo sir; we call ours a consignment
agreement"
Mr.. Duke said It was not The usual Gus
tom os the company 10 sell directly "a
the retailers. He testified 70 having oc-
casicnal dealings with the Wholesale
Grocers association, and added that only
a small percentage Of his jobberz were
associated with the Wholesale Grocerg
association.
HE ANSWERS DIRECTLY.
Senator Lexow read some OF the
clauses in the agreement between the
Wholesale Grocers association and the
American Tobacco company which prO-
rided that the gr5csrs association. in
handling the produc: OF the American
Tobacco company exclusively. would
receive a rebate OF ~ Per cent on he
sale Of cigarettes
Don't you think, Mr.. Duke. TIA;
system Of that kind VIII Inevitably Gre
ale a monopoly"
NO sir
DO you compel The eons.gnees 70 hx
2 price -
YES sir"
Is Il fact that man como: 10
Business unless ne handles your cigar
et,As2"
Tile can 90 business. bu, Re cannot
make az much money"
Adjourned until tonsorrox-
Lcuisviile. ks Feb. "a special . ne I