New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1897-06-19
TRUSTS PLAN EXPLAlNED'
rr,u A,,rp,cAN TOBACCO COMPANY WAS
FORMED TO REDUCE EXfENsH''
SAYS A WITNESS.

A.. ,,s,cted directors OF the Amer'-
Inc u'a' - co,,no,v went On yesterday IN 'he
courtroom Of Part Nv OF tue 'ou, -, n.n,ch the
sessions and the change OF rooms W ~ tho
,o,sa ara dust raised In the oes" ..o,y
',o So yrore avoided, was a rehe1 10 man.
oo,od with the trial. James D. puNo q,
nre.,dent of the tobacco company was ,,,od ont
court Yesterday morning anu was ,.,ouoh he
80 ,rsnv as the Cigarette King "i''"e
never smokes cigarettes =. =, o'clock
r,-oceeainrs for the day began a. - - :,
wben Theodore T. Allen. the orga'''@e' "
~. trust was recalled 10 the witness-chait "
rar,v 10 questions by Assistant Distric'-A..o'"e'
rvsrpenter Mr. Allen said that several VI ..a
PENDANTS told him before the trust vas
that those who going into inc uue. -,
s.,.,red about 80 per cent OF the cisare''es so
70 the trade 10 this country the WITNESS s"'a -
"a hrought u,,t against the defendants TOT CUM
,.,.s,ons for his services In forming the uus''
IN. suit has been settled he said' ana iie "0'
no fllwtll toward any OF the defenoahte' A..
Mr. Fuller objected to the introoucuon Va w
annual reports Of the trust, out 'he op'eo"o.
ovsrruled by Judge Fitzgerald. The witness ioehu-
49, 81. s,gne,ures Of several Of the directors as
rrxsd 20 legal documents He said he had oeen
told by Mr. Duke previous to the io'nao" -
the trust that It cost his firm s5osUU ioi "u' "a,
Using In 1855 Mr.. Ginter had tod MN 'ha' ms
arm had expended $4,000 for advertisihs IA ..e
same wear There was talk by some OF .he W.
PENDANTS about aVoions coiiP
tember 1889. 81.
Cross-examned by Mr.. Fuller. the witness sa4o
the trust was formed for the purpose Oh pio'"o.De
economy In the manufacture OF c'gare'tes' on o.p
rambler 6. 1899 MIR. Allen said. he received ie,'".
from Allen & Giner in which the firm sta'eo tna'
=. -. d,,.rse IN Joining a trust" but II the other
companies were considering combination the h''n
might be induced TO Join In the plan After inc io
nation Of the American Tobacco COMPANY .ne On
ness said the price OF cigarettes WIS ieu
csnts q thousand. Since this rSductioil 'i'
10 after the formation OF the American A'oao''
Comnany there had been no increase IN 'He 49,
Tba witness said that the present price was 10 pc'
ran, below what 1t when the companies "eie
doing business independently. he was Ho' co." .'
TO saw whether there were more Whoiesaio
IN business in New-York in 1889 or 1870 na- go.
we're IN 1889 Neither he permitted by the Coui
~ Gov whether the names of the cigarette manu-
faoturers we're recognized as part oi Inc 80 ~
mark on the goods made by theln H. ra,1e manu-
kNew business IN wnich go, he said they were
nf3cers of the American Tobacco Sonpa mScsa ..
witness was n not he Dstrct-Attorneys office in
regard 10 becoming a witness MI Md hem asked to
Solicit subscriptions from rival cohcS,mS in The
suit against the American owever sustained he
direction to this question entered oS ''e p''
"9 Fuller requested that the witness proE1Hce "a
court to-day letter which he receiveu on 1o lend
1851 from Einsein THWnse He was also asked
DIS anu " Nv Of a letter sent in answer 10 ,lle
pr receiyed from Einstein Townsend MI; IT,, fa 20
Seeae so weared by questioning tna ina. ne grant
DC re ga a bref Wrangle between the prosecute"
cd defence He will be on hand again S94onv
az pa,cr Uauptmann. of the HauDtneiil Ooiit' 20
,ad nv Mr. Allen and prepared hinsei 10 ma az
&c the wrongs he suffered al the naros "a 81
'robacco Trust His company does ousl re9ioms n
&c Mr. Hauptrnann testified that pleNio iiI,o ~
October 1893 his firm handled ABOUT ~ ~ 1Saa he
trnst cigarettes annually, In OCTOBER tosT, w
bought stock from the NatohTTt bacco COMPANY re-
and after that the American IOpdeSO 30 bad VIC.
snsad ~ nil his orders declaring that ne hu ,r,St
lated the cast-iron dgreeiheh. ~ g. onis head
held the iobbers. He went to the 81 Luis nd
CHARTERS of the American Tobacco Ooh kRta latter
SsJ a conversation with Mr.. Bro"iii ,,irni c;Sar-
tod him that he must quit seliii6 tirn ~ Goods
cites Or the trust would qul. id him that the
Of its manufacture Brown too MN IN es ner cent
american Tobacco Company SOLO ~ Oh % pponntrv
~ eli The cigarettes manufactured IN ine 'r"sts
and did not see why he woud hVt s 1noun that II
soou.ss, Nv the trust he would sell 22VGVo cisar-
cites in 1898 II ne did not give up h ,ae eiied
Cites no more of his orders would pc hi 6in.t
"Did YOU give In TO MN ashed -"' $1,000
II aid not" the reply. =, 49, .nar,can To-
80 sent TO the witness by the AmeIIca 80
1900 COMPANY was offered in eVlueIice am
II vas 10 the effect that the conpan! Ie xcan ~
H4soontinue sending him further goods eAccP Coz
70 ois.ns n,ithout discount. Not until June 1881
as ftba witness again able 10 purchafse Got
We merican Tobacco Companys mauhl ' 1rhe
cash had been paid by him for the tr sd he was
.,st also refused to sell to him. he salu anu ne =,
oiinwed 10 buy goods from other nrinS III o.
I0,,s that handled the trust clgarettes nc rhny
go seid ne never was agent Tor the truSt; -
might have called 1t that nui ne,nnallv during his
raminat,on and seemed to ENJOY tne 81 "a
80 stiI on the stand when the trlai WIS a"Jo"'A
until next Monday morning.