The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-02-25
LE1OW WILL TAKE A TURN AT TIL
BLACK DIAMOND oCTo-
PUS.
EXPENSIVE GOOD WILL
THE TOBACCO TRUST ExPEyDEr
TWENTY MILLIONS TO ACQUIRE
A SUPPLY.
AGGREGATED CAPITALS nUEENsE
oe'A]atioh' In the View of Mn
Thurber, u Natural Evolution
of the Times.

NEW YORK, Feb. 24.-Janes
Duke, president Of the American To.
Dacco company, was one of the first
10 appear today in the room Of ths
JOINT legislative committee on trusts
lie brought with him the labor statis
tlcs asked for yesterday by Senator
LeXoW. The papers show that prior ia
the incorporation Of the American To.
oacco company, in 1890, the several
companies gave employment to $500
tobacco workers Today the number
OF employees in the employ of the com.
pany is 9,194, making an increase since
the date of consolidation of 1929 hands
In calling to order Chairman Lexov
said:
1T is the intention of the committee
to investigate the so-called coal trust
tomorrow. Charges have been made
that the coal combina ton is the most
vicious trust that exists, and certain
newspapers have made specific charges
of the existence of this combination o.
trust"
President Duke then took the stand
He said that the capital stock of the
New Jersey concern. prior to consoli.
dation, was SIC, 900, 900. which with the
acquisition Of the various companies
was increased to SIS, 600 O0O This was
subsequently raised to SIS, $3.50, COO
How much was issued for the live
assets of the various companies?''
About $5,O00000 worth of stock"
And how much for good wiIl?"
1919, 990, 000.''
The witness said that in distributing
| the stock the earning capacity Of the
five original companies was increased
The number of the original stockhold,
ers was from fifteen to twenty-five; II
is now somewhere between 1000 and
5000. Two-fifths of the company'l
stock today was preferred, and three.
f1fths was common stock. The books
Of the company are kept in the mair
office in New Jersey. An effort wa.
made to have Mr. Duke admit that BY
the consolidation the trust secured con.
troll of competing cigarette rolling ma
chimes, but his responses were Of q
negative character.
Mr.. Mazet asked Mr. Duke if he was
not buying and selling the stock Of the
American Tobacco company. Mr.. DUKE
said that was a private matter and he
desired to be excused from testifying
in that particular regard.
Francis B. Thurber was next called
He said he was president of the Amer
lean Grocer Publishing Company
which office he has held during the last
three years. Mr.. Thurber said that
aggregations Of capital ought to re-
ceive encouragement and not be sub
jected to unnecessary obstruction
Combinations inteligently admins
tered were beneficial to the public at
large and to the Iaboring classes,
THE profits Of capital he said, 'have
been steadily decreasing. and those
of organized labor steadily increasing"
Mr.. Thurber cOntended that the cen.
trahzatiOn of capital was a natural
evolution Of the time. He further
explained to the committee the history
of the beneficence Of centralized cap.
ital and dWelt at some length upon the
vulnerability Of such concerns as thu
American Sugar Refining company te
the competition Of solvent and ably
managed companies with perhaps q
fftieth of the capital represented by
the corporation named.
After recess Mr.. Thurber was re,
called, and, on being asked where hg
got the information that the American
Sugar Refining company made a third
of cent profit per pound said that
it was the general opinion in the gro
Gerry trade for eight years past.
How do you reconcile the figures
with the fact that the company has
paid an average dividend Of 91b pei
cent on a capital of SO 900, 900, an eX.
ira dividend Of 10 per cent and a sur
plus Of $4,000 900 annually?"
Mr.. Thurber made hurried calcula.
ton and contended that his figures
We're correct.
VIM. R. Harris, auditor of the To-
bacco company, followed Mr.. Thurber
His testimony was unimportant and
referred especially to the location OF
the books of the company in New Jer-
sey and why they were kept there
George D. Wheeler. a wholesale cigar
dealer in Syracuse, was the next Wit
ness. He said he had been injured by
the American Tobacco company as a
holder of the factors agreement This
was brought about because ne bought
cigaretts of the National Cigarette
company. The American Tobacco COM
pany refused to consign his goods be-
cause he dealt with the National Gig
arrette company. His suspension as
a factor was ordered by Secretary
Josiah Brown, of the American To-
baccO company, who communicated
with witness by mail to that effect.
Witness did not have the letter as he
had left 1t in his home in Syracuse.
That's how the American Tobacco
company does business the witness
said
Did the letter state why the Ameri-
can Tobacco company refused to sup
ply you with goods?"
mo, sir"
"How, then, do you know it is be-
cause You bought goods Of the Ma
tiona1 Cigarette company. that they
refused to sell you goods"
'They cut off other jobbers for the
same reason"
During Wheeler's testimony W. W.
Fuller, counsel for the American To-
bacco company. ELECTED the fact that
Wheeler until a year ago had been a
salaIied employe of the National Gig
arTette company.
Il desire to say" said Mr.. Fuller,
that this witness is but the mouth
piece of the National Cigarette com
pany who brought all the litigation
against the American Tobacco COM
pany."
Some testimony OF inmateriaI in
portance followed. and adjournment
was taken until tomorrow morning.