The morning times., 1897-02-25
The Tobacco Trust Capitalized
Its Good Will at 500, 900, 900.
THEN LET THE PUBLIC IN
George ID. Wheeler, a Ciga Dealer,
Testified That a Jobber Cannot
Do business Unless He Agrees to
Sell Exclusively the Goods of the
Trust.

attendance or spectators this morning when
the joint legislatice Committee resumed its
investigation Of trusts, monopolies, etc
On calling the committee to order, Chair
man Lexow said the coal trust would be
taken up tomorrow. President Duke, oi
the American Tobacco Company, again took
the stand. He said that the American
Tobacco Company was capitalized origin
ally at S25,000,00O which was after.
wards increased to $2S, ,s3S, 900.
How much of the stock did your COM
pany receiver asked Chairman Lexow.
I'VE ereceived 81 ,497 ,00O," said Mr. Duke.
How much did Allen & Ginter receiver
The same as the Duke company-$7,- >
4a7 ,000.''
The witness said that Kinney 6 Co. re.
ceived $4,999, 900 in stock
How much stock was issued for the
live assets OF the various companies?''
About $5,000,U 900 worth OF stock
And how much for the good will, such
as trade marks, patents, etc."
About $4,000, 900"
The witness said that in distributing the
stock the earning capacity OF the five origi
nal companies was considered.
WHO made the appraisement?''
Mr.. Ginter. Mr.. Kinney, Mr.. Emory, Mr..
Hart aud myself
Did the number of the original stock
holders exceed fifteen?n
II think the number ranged from fifteen
to twenty-five"
The witness said that when the stock
was increased to $29.s35, 900 there were
about forty-fIye stockholders.
How many stockholders have you
now?''
About 1000 or 5000. / don't know
the exact number"
How was the stock issued?"
I'VE issued two-fifths preferred stock
ana three-fifths in common stock
Witness denied that his company had Sc
cured control OF all the cigarette making
machines, by combining with the other
companies.
Ibid you not subsequently secure control
OF machine that practically removed feaI
OF compeution?'
Some considered the Allison machine
better than ours
Has not the Allison Company organized
in conjunction with the tobacco combina-
ton?''
No. sir; not exactly, although it was
friendly"
Witness said that prior to consolidation
| the five original companies employed o ,S95
| hands, and in February, 1896. the American
| Tobacco Company had s, 194 employees.
In reply to another question, the witness
| said that the common stock in 1894 pait
2 per cent, in 1895 it paid nothing, and
| in 1896 it paid 8 per cent in cash and there
/ was also a surplus OF 81 400 900.
Witness attributed the decline in the
| price of the stock from III to So tc
| unloading. He said that he held more
| of the stock than ever before. he de
| clared that the output In cigarettes had
| almost doubledrsince the consolidation.
Francis B. Thurber then took the stand.
| He said he was president of the American
| Grocer Publishing Company He declared
| that the American Grocer was devoted to
| grocers In general, hut especially TO the
| retail trade He then read a long state
ment containing history of the trusts he
said the price OF sugar for nine years priol
| to the consolidation OF the sugar refining
| companies was 7.19 cents per pound, and
| and for the nine years succeeding z con solida-
ton was 5.27 cents per pound. The de
/ crease in the price was owing to tht
| cheaper purchases of the raw materia
and the cheapened cost OF production.
Mr.. Thrrber said that the total results
| of the combinations intelligenly admin
| istered were beneficial to the public al
| large and to the laboring classes. The
| profits of capital have been steadily de
| creasing and those of organized labor
| steadily increasing.
AT DO time" said he, would dollar
| purchase so much as at the present time
| There are good trusts and bad trusts, but
| the good trusts so far predominate thai
| such aggregations of capital should be en-
| couraged, accompanied by safeguards
against abuses.
George D. Wheeler, wholesale .ciga1
dealer from Syracuse, testified that the