The morning news. [volume] (Savannah, Ga.) 1887-1900, 1897-06-24
LEX0W'S TONGUE LET LOOSE.
THE SENATOR ON THE STAND IN
THE TOBACCO TRUST TRIAL.

THE TOBACCO TRUST TRIAL.
He Tells What Witnesses Testified to
Before the Recent Investigation
by the New York Legislature Com
corning the So-CaIIed Trusts-NIr.
Brown of the Trust Admitted the
Correctness of His COmpnny's
Black List-Prcsident Dukes Fig
ures of the Effect on Labor of the
Organization of the Trust.
New York. June 2S.-Judge Fitzgerald to-
day overruled the point raised by the
counsel for the defense in the case of the
indicted officials of the American Tobacco
Company that Senator Lexow could not
be required to testify as to the state
ments by witnesses before the recent leg
islative investigation of so-called trusts.
Senator Lexow, then, in response to
questions by District Attorney Olcott. tes-
titled that President Duke, who was
witness before the committee about Feb.
20, stated that the manufacturers enter
ing the American company did so for their
mutual benefit and protection; that these
firms made between so and 30 per cent. of
the paper cigarettes on the market; that
there is no monopoly in the plan of con-
Quoting the business of the company;
that the consignees' agreement was pre-
pared for the purpose of fixing and main
tanning prices. and was also used for the
purpose of compelling consignees to live
up to the agreement.
Senator Lexow then testified that Jo-
siah Brown of the American Tobacco
Company Identified certain schedules sub
mitted to him, showing reports as to GER
tain dealers in tobacco throughout the
country, who had been "blacklisted' by
the American company for handling goods
of the National company, and admitted
that in substance. they were correct.
On cross examination the witness said
that his impression was that the sched-
ules submitted to Mr.. Brown and corrobo-
rated by that witness at the Senate inves-
tigation were procured by the committee
from Einstein & Townsend, counsel for
the National Tobacco Company.
District Attorney Olcott then verified
by the witness a copy of Browns testi-
mony before the committee and moved
that 1t be submitted as evidence
Upon re-cross examination Senator
Lexow said that Mr. Duke also stated in
his testimony that the consigness agree
ment referred only to paper cigarettes.
Mr. Duke gave the impression before the
committee, Senator Lexow said, that the
business had increased since the organiza-
ton of the American Tobacco Company
The number Of cigarettes had increased
from 2,OO,oO0 to 4.OO0,000. Mr.. Duke also
told the committee that previous TO the
formation of the American company the
five manufacturers who organized the
company, employed 31S1 workmen. They
now employed 1873 Workmen. The fac
tories which had been leased by the COM
pany formerly employed 2.7l4 workmen.
The American company employed 5,S15
Workmen in the same work, or a total of
5,194 employees, as compared with $500 in
the employ of the manufactures forming
or subsequently leased by the company
On cross examination Senator Lexow
said that President Duke testified that at
the time of the investigation there were
more than 100 manufacturers of paper
cigarettes outside Of the company, some
of whom manufactured machine made,
while others manufactured hand made
cigarettes.
Reading from the copy of the testimony
taken before the committee, Mr.. Fuller
brought admissions by Senator Lexow
that President Duke had testified that
only paper cigarettes were sold under the
consignment agreement, while other goods
were sold on a different plan. He also
said that sometimes this arrangement was
Withdrawn when the company was salts
fed that the terms of the agreement had
been violated.
Mr.. Duke had also testified that before
the organization of the American COM
pany paper cigarettes were sold at cost,
and this plan was changed In order to give
customers a share in the profits. Senator
Lexow also said Mr.. Brown, after stat
ing that the "black list" was apparently
correct, said that the majority of these
dealers were cut off from the use of ciga-
rettes made by the company, because they
cut prices and that each stood by itself
on redirect examination, Senator Lexow
said that President Duke had testified that
between go and 1000 employees had been
thrown out of employment by the closing
of three factories, when the American
company was formed. About one-half of
these employees were re-employed in other
factories established by the American
company.
Later, upon recrossexamination Sena-
tor Lexow testified that President Duke
had said that all Of the employees in the
Hill, the Consolidated and the Goodwin
factories. the three whichpwere closed by
the American company could have Sc