The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1897-06-18
THE TOBACCO TRUST TRIAL.
The Judge Refuses tn Interfere with the
Composition OF the Jury Openirg
Speech for the State-The First witnea.-

The Judge Refuses tn Interfere with the
Composition OF the Jury Openirg
Speech for the state-The First witnes.-
| New York. June i5.-Judge Fitzgerald to-
/ day decided that the trial OF the American
Tobacco Company's officers should pro-
coed with the jury originally selected. w.
j. Bryou. against whom certain charges
Of indiscreuon were made. remains n
juror. Judge Fitzgerald when the pro-
ceedings began. denied District Attorney
olcotts motion TO have Mr.. Rryon re
moved. He also denied a motion made
by LAWYER Choa,e 10 have Juror Fashs
examined IN regard TO hts interview with
1 Reporter Piper.
Mr.. Choate then said that he would de-
mand 20 nave n" attention OF the grand
and proprietor OF The Morning Journas
and Advertiser, for having engaged in n
conspiracy TO influence the action Of JUS
| tice against the defense.
| District Attorney Olcott then opencd
| the case for the prosecution. He told Of
the formation Of the company. he said.
Prior to October nth. l>G. there were
FIVE great cigarette manufacturing con-
Germs. Allen & Ginter. W. Duke. Sons &
Company: Kinney Manufacturing Conn
pany: w. s. kimhali Il Co. and Good
win & 90. They had ca per cent. OF the
trade. These Ave concerns came togethcr.
Allen & Ginter and W. Duke. Sons a 90.
each took % per cent; kinney Tobacco
Company. ~ per cent. and kimball Il
Co. and Goodwin & Co. each 10 per cent.
The American Tobacco Company WAS in
corporated January 2th. iS.l. In the state
OF New Jersey. Those five concerns main
tanned their separate establishments and
continued 10 make and sell their individ-
ual brands, but when "A bill OF goods was
sold. say for instance by Allen & Cintcr.
the bill was made out from Alien n
Ginter. branch OF the American Tobacco
Company. This Is most significant. IL
shows that this corporation was not form
Cd TO conduct a cigarette business as an
ordinary corporation composed OF iudivid-
uals. but was "A corporation OF corpora
tions. not to start "A cigarette business.
but simply from their aggrandixel power
TO withstrain. aye. TO strangle competi-
ton.
They sent "A circular 10 the tobacco
trade saying that a discount OF "a Ger
tain percentage would be made TO tho
jobbers who bought OF the branchcs-any
jobber who handles cigarettes In a satis-
factory manner. satisfactory to whom
Satisfactory TO the manufactures. Men
with money and credit and business rcpu-
tation could not buy the goods OF Inc
American Tobacco Company unless. in the
opinion OF the company. they handle their
goods I'm a manner satisfactory To the
company. This means plainly that these
goods must be sold at any price fixed by
the company. No matter how much he
may need money, or how much ne may
wish TO clear out shop worn stock. by
disposing OF his goods at "A price lower
than the cost. he cannot do IL. These
people control 90 per cent. of the cigarette
trade Of this country. This means that
nine oul VI ttGl i EfIlthfi VAN
the cigarettes made by the American To-
bacco Company and unless "A jobber
handles these goods he can sell only 10
one out OF ten customers. and he cannot
handle the American Tobacco Company's
goods except at their terms
Mr.. Olcott then took up the provisions
of the agreement. One was that the sell
ing prices should be such as the tobacco
company fixed. Agents. he said. were
Obliged TO guarantee sales. Real agents
do not do this. All cigarettes were to
remain tho nrnIgrfN of the TnrlnlnN The
company agreed TO pay All freight
charges. The agents were Ia have guar
anteed the company loss by fire. Iht,
was another unusual proceeding. The
agent agreed TO pay all charges, including
taxes and license fees.
Jos. Park. of the grocery firm OF Park
& Tillford was the first witness. The gist
of his testimony. as brought out 10y the
direct examination and cross examination,
was that Park d Tillford had an agree
ment with the American Company and
under 1t the firm was enabled to make n
very large profit. 1t was stipulated that
no other cigarette was to be handled 10y
the firm. but the National Cigarctt" Cons
pany'S cigarettes came on the market and
Park x Tillford bought 25.o1 cigarettes
from them. Then Mr.. Butler. presumably
representing the American Tobacco Conn
panY laid down an ultimatum and Park Il
Tillford were compelled to give up the
other cigarettes. returning them to the
National Company. The agreement with
the American Tobacco Company was in
writing and Is at present in the safe OF
Park q Tillford. Under the agreement,
Mr.. Park said. his firm received a large
amount Of stock on consignment. Mr..
Park said the agreement had been made
voluntarily and that the firm expected TO
live up to 1t.
During the cross examination OF Mr..
Park. Mr.. Choate declared that business
principles alone were entered In tn" trans
action of the business OF his clients.
They are the same principles a. are en-
ployed by business houses the world
over" said Mr.. Choate.
No further witnesses were called before
adjournment was taken until tomorrow.