The Roanoke times. (Roanoke, Va.) 1897-1977, 1897-06-17

yesterday decided that the trial OF the
American Tobacco Company's officers OH
the charge of conspiracy should proceed
with the jury originally selected w. J.
Byron, against whom charges of indiscre.
tion were made, remains IL Juror.
When the proceedings began the Judge
denied District Attorney Olcott's motion
to have Mr.. Byron removed. He also de-
MED motion made by Lawyer Joseph II.
Chaote to have Juror Fash examined in
regard to newspaper interview.
The district attorney then opened the
case for the prosecution. He said:
prior to .Octr Der IT, 1880, there were
five great cigarette manufacturing con.
Germs, Allen 81 Ginter, w. Duke, Sons &
Co., the Kinney Manufacturing Com.
pany, w. S. kimball 6: Co. and Goodwin
Il Co. They had 90 per cent of the trade.
These five concerns cana together,
MIR. Olcott stated that Allen {. Ginter
and w. Duke, Sons & Co., each took 30
per cent; the Kinney Tobacco Company
took 20 per cent. and Knmball & Co. and
Goodwin d Co. each took 10 per cent of
the stock
The American Tobacco Company,n he
continued, WAS incorporated Jar uary 90,
1890, in the State of New Jersey. No
crime was committed by that incorpora-
o'ob. cuo L Will NY W SHOW you That the
methods declared and carried out under
chat agreement Of incorporation were
crime. Those five concerns maintained
their separate establishments and con-
tinued to make and sell their individual
brands, but when bill of goods was
sold, say for instance by Allen 81 Ginter.
the bill was made ont from the Allen &c
Ginter branch of the American Tobacco
Company.
This is Significant. IE shows that the
corporation was not formed to conduct n
cigarette business as an ordinary corpo-
ration composed of individuals, but was
a corporation of corporations not to start
cigarette business, but simply from the
aggrandized power to restrain and stran-
gle competition.
They sent IL circular to the tobacco
trade, saying that discount of n certain
per cent. would be made to the jobbers
who bought of their branc hes ANY lob
Der? Oh, no! but any jobber who handles
cigarettes in IL satisfactory manner
Satisfactory to whom? Satisfactory
to the manufacturer. Men with money
and credit and business reputation could
not buy the goods of the American To
6acco Company unless, in the opinion of
the company. they bundled their goods in
manner satisfactory to the company
This means, plainly, that these goods
must be sold at any price fixed by the
company. No matter what the situation
of the lobber may be, no matter how
much he may need money, or how much
he may wish to clear out shopworn stock
by disposing of his goods mt price lower
than cost, he cannot do it.
These people control 90 per cent. of
the cigarette trade of this country. This
means that nine of the ten cigarette
smokers want the cigarettes made by the
American Tobacco Company, and unless
n Jobber handles these goods he can sell
only to one out of ten customers. He
cannot handle the American Tobacco
Company's goods except at their terms.n
Mr.. Olcott then took up the provisions
of the agreement. One was that the sell
ing prices should be such as tile tobacco
company fixed. Agents, he said, were
ooiiged to guarantee sales. All cigarettes
were TO remain the property of the ccm-
pany. The company agreed to pay all
freight charges. The agents were to have
the company guaranteed against loss by
fire. This, Mr.. Olcott said, was another
unusual proceeding. The agent agreed
to pay all charges, including taxes and
license fees. Mr.. Olcott continued:
There is nothing that could he covered
up nder the statute laws if such trickery
was allowed to go unpunished. This is
the system under which the American
Tobacco Company disposed of its goods
from March l, 1892, up to the time of it's
in1ictment. The company was not in,
uicted Tor striving to overcome competi
tion by fair means, not for using it's grasp
on 30 per cent. of the cigarette trade, but
because it used it's power over unwilling
joobers to prevent them from selling
other cigarettes.
Joseph Park, of the grocery firm of
Park d Tilford, was the first witness.
me SUBS tance Of his testimony was that
Park " Tilford had an agreement with
the American Tobacco Company and that
under 1t his firm was enabled to make
large profit. 1t was stipulated that no
other concerns cigarettes were to be han
died by the firm, but the National Ciea-
rette and Tobacco Conponv's product
came on the market md Par. 81 Tilford
bought 20. 600 cigarettes from tn. COM
pany. Then Mr.. Butler. presumably
representing the American Tobacco Com.
pany, laid down an ultimatum, IL was
testified, and Park s. Tilford were com
De'ieu TO give up the other cigarettes, re-
turning them to the National Company.
The agreement with the American To.
bacco Company was in writing. and Is at
present in the safe of Park 81 Tilford.
Under the agreement, Mr. Park said, his
firm received large amount of stock on
He also said the agree.
ment had been made voluntarily and that
the firm expected to live up to it.
During the cross examination OF Mr..
Park, Lawyer Chaotic stated that busi.
ness principles alone were employed in
the transaction of the business of his