The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1897-02-24

New York, Feb. 23.-The joint legislative
committee investigating trusts. etc, in
this state, resumed its hearings this
morning.
Waldo Smith. president of the Whole
sale Grocers' association, said his asso-
citation was not incorporated and extended
through New York. New Jersey, New
Hampshire and Vermont. To obtain ad-
mission each member of a firm had 10
pay so a year He denied that his asso-
citation controlled the price of sugar in
any way. The only thing the association
did, he said was to send out a list of the
changes of prices IN sugar prepared by
the secretary. Witness said grocers all
over the country adopted the prices of the
American Sugar Refining company as
the standard.
Mr. Smith said his firm bought goods
from the American Sugar Refining COM
pany and from the Mollenhauer com
Dany-
And you get the same discount from
both comDanies?"
Yes, sir"
Then the product of the Molenhauer
company is fixed by the quoted prices of
the American Sugar Refining company
Mr.. Smith said he had no knowledge of
any such thing. He said the Wholesale
Grocers' association had asked the
American Sugar Refining company for d
rebate which would prevent the cutting OF
prices In other words. they asked for
protection, and the sugar company gave
it to them. Witness said that sugar was
sold wherever the grocers organization
existed a the same price.
James r. Duke, president of the Amer
lean Tobacco company, was the next wit
ness. He said the company was organized
in New Jerse. because the laws there
were more favorable.
There were five companies organized
into the American Tobacco company
w. Duke Sons * Co., Allen & Ginter. w.
s. Kimball & Co, Kinney Tobacco com
pany and Gordon & Co. The companies
were incorporated in 1890.
Nine concerns were taken in after the
organization. No manufacturing was
done in New Jersey Several factories
had been closed. but the witness could
rot say how many people were thrown
out of employment. but said great many
Were re-employed
laent?''
MO, sir; we call ours a consignment
AGREEMENT
A copy of this was produced and placed
in evidence. In reply to another oues-
ton the witness said the firms controlled
from so TO 30 per cent of the cigarette
trade.
How many competing COMPANIES were
left at the time of the Organizations"
About one hundred
The witness said the agreement referred
to the sale of cigarettes.
Then you have this agreement with
wholesale grocers?
Yes. sir
rs it a fact that the greater number
of your consignees are wholesale
grocers?"
No. sir
The witness said that if the consignees
violated any clause in the agreement it
was withdrawn.
The consignees are allowed under the
agreement 253 pre- cent commission. and
an additional ~ per cent if they handle
the cigarettes of the American Tobacco
company exclusively, and if they do not
sell or in any way aid in the sale or dis
tribution of cigarettes of other. manu-
factureTS.
Then you compel the eonsignees to fix
a price,"
Yes. sir
rs it not a fact that man ca-not
do business unless he handles your
cigarettes?"
He can do business. but he cannot
make as much money"
Does not that state of things tend
to make = monopoly"
No, sir; for the simple reason that We
make and sell our brands and any other
person can make their brands"
Is Il not fact that the small mer-
chant must take your brand TO success
fully do business, and do you not. by the
creation of the intermediate system of
rebates and discounts, practically secure
for YOUR products a monopoly"
No. sir; take another brand which the
public wants and another manufacturer
can supply the whole business.
Senator LeXow announced an adjourn
ment until 10 O'Clock tomorrow morning.