The copper country evening news. [volume] (Calumet, Mich.) 18??-1907, 1897-02-25
Tx OF CIGARETTES.
[.,d.ot Duke Tells Lsx s. Com
|s''0v mittee About Them.
/ ron,cco TRUST PRODUCES.

..,,eu companies Are o'nso. "s ~ New
ar0orated Under the Low" . 90 Per
lDcorp' .. Trust Turns Out ID rer
Jersey an the Cigarettes Made in rms
cent Oh '...t,mony of G. Waldo smith,
Country ',,,,o ,s.ale Grocers' Association.
- Feb. 25.-The legislative
New J, investigating committee ~, ne'a as,a,
'a s " session Tuesday Inc cn,ei
ree nO1 NUS president James b. Duke
linsS' .'aorette trust. which Is incor-
. ~. under the laws OF new IT'S, Tss
p's -" american Tobacco company Inc
'n' ,.atIon and mode of operation Oh
Fsan~ have already been described.
Us uus' FAMED the fourteen tobacco
'mOanies which were consoiua ,uoorno-
,I,,ed that the trust had incorpo-
on'' " Now Jersey. though IL mas no
pea |" that state, because the taxes
Rc'oiS n,or and the laws more raVora-
ere soid that the trust now pro-
..s from so to 80 per cent. OF tue pa
Wv o,garettes made, per cent VI sne
,ohacco. 10 per cent. OF the sihon
IuE s ' and from go to 20 per cent
W. cigarettes made wholly from To-
acco. ia ,hro,,ph middle
lhis 10 ore made the agents or the
pei' hv a factors agreement, ana
Clnpam' allowed a rebate Of 10 per cent.
~, ,Ssy maintain prices and do not oeai
,be product of competing concerns
Has Closed Several Factories
:, ,hov violate the agreement the trust
s ,hor, off. and they go out OF busi-
u's Tite the sugar trust, the TOBACCO
rombination has closed several Vi us
tSo,orles The trust has peen espe-
IN, unfortunate in losses or unused
'nS,ngs nv fire. The shutdown threw
S"~t eOO employees out of work In New
vi The examination of Mr.. Duke
nos N he resumed at the next SESSION.
The only other witness of the day was
waldo smith. president of the Whoie-
=. crocers' association. 1t appears
from his testimony that this organiza
,,on which covers New YORK CITY,
sor,,on Of the state and parts OF New
ya..ov and New England, is in mori-
hurd condition. owing to the action OF
,hs sugar trust in assuming its rune
tors He said that 1t never does any
thing beyond the holding or annua
meetings. and then the city must %
r.rsacted to get quorum together
He did not know the treasurers mrs
name. and said he had spoken 10 MN
Onlv few times within the last fou
wears Mr.. Smith proved to be'a warn
mnnorter of the rebate system. whici
DESTROYS competition between grocer
and enables the trusts to secure a mo
popoly by exercising an absolute con
troll Of prices.
Thought 1t should BE Continued.
He said that the association, six year
ago secured from the sugar trust, Wit
great difficulty, the establishment OF IN
factors agreement, and he thought tina
II should be continued. though the re
bate was only two-thirds of the actus
cost of handling sugar. As sugar FUR
nishes 80 per cent. of the grocery busl
ness, il appeared, from his Statement
that the loss in distributing Ii must b
considerable.
Sine the original agreement M
Smith said, the sugar trust has mao
and changed the conditions under whic
Il supplies the trade without consuitin
him. Mr.. Searles and Mr.. Havemeye
told the committee that the associate
made these rules. From Mr.. smith
testimony. which was exceedingly eva'
i've, Senator Lexow brought out II
fact that there is no real competitio
In the refining of sugar, the "indepen'
ent" companies selling at the same prize
and under the same terms as the trus
The secretary of the association ea6
day sends out 10 the trade the trust
prices for sugar.
Duke Again on the Stand.
Mr.. Duke testified again Wednesda
He said the capital stock of the Ne
Jersey concern prior to its consolidate
was S1O,O00,000, which, with the acqui:
ton of the various companies, was 1
creased to $4,000, 900. This was subs
Quently raised to $40, 800, 900. Good wi
such as patents and trademarks, &C
100000.
How much did Allen e. Ginter I
ceive?
The same as the Duke company, s
$4,000"
The witness said Kinney e. Co.
eelved A,999, 900 in stock, with a guara
Tee Of a,50O.00o in live assets. w.
klmball & Co.. 81, 499, 900. and the Goo
win company s2,499.O0 for common a
preferred stock.
How much was issued for the II
assets OF the various companies?"
About s5,000,000 worth of stock"
And how much for good will?"
1880, OOo."