The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1897-06-24
FULLER CROSS-EXAMIN INES
MAKES ONE GOOD POINT AND
NO MORE.
0LC0TT IS NEARLY READY TO CLOSE
Fuer's Point that There Were More EmpIoye
Stands Pointless Against the Further
Fact that Business Has De-
yeIoped in Greater Ratio
yeIoped in Greater Ratio.

New York, June 23.-Judge Fitzgerald
to-day overruled the point raised by coun-
sci for the defense in the case of the
indicted officials of the American Tobacco
Company that Senator Lexow could not
be requested to testify as to the state
ments by witnesses before the recent
legislative investigation of so-called
trusts.
Senator Lexow, then, in response to
questions by District Attorney Olcott,
testified that President Duke, who was
February 20, stated that the five manu-
facturers entering the American Com
pany did so for their mutual protection
and benefit that these firms made be-
tween so to 90 per cent of the paper
cigarettes on the market; there was no
monopoly in the plan of conducting the
business Of the company; that the con-
signees agreement was prepared for the
purpose of fixing and maintaining prices
and was also used for the purpose of
compelling consignees to live up to the
agreement Senator Lexow then testified
that Josiah Brown, of the American To
bacco Company, identified certain sched-
ules submitted to him, showing reports
as TO certain dealers in tobacco through
out the country, who had been black
listed" by the American Company for
handling goods of the National Company,
and aSnitted that liz substance they were
correct.
On cross-examination the witness said
that his impression was that the sched-
ules submitted to Mr.. Brown and cor
rOborated by that witness at the Sem
ate investigation, were procured by the
committee from Einstein and Townsend,
counsel for the National Company. Dis
trict Attorney Olcott then verified by the
witness copy of Browns testimony in
the committee record, in reference to the
schedules and moved that it be submitted
as evidence. Upon re-cross-examination
Senator Lexow said that Mr.. Duke also
stated that the terms of the consignment
agreement referred only to paper cigar
cites. Mr.. Duke gave the impression be-
fore the committee, Senator Lexow said,
that the business had increased since the
organization of the American Company.
The number of cigarettes had increased
from two billion to four billion. Mr..
Duke also told the committee that prev
ious to the formation of the American
Company, the five manufactures, which
organized the company, employed 3,1S1
workmen. They now employed 1873
workmen. The factories which had been
| leased by the company formerly en-
ployed 2,714 workmen. The American
Company employed 5,S15 workmen in
| the same work, or a total of 9,194 en-
| ployees as compared with 5,S95 in the
employ of the mnufactories forming or
subsequently leased by the company.
On cross-examination Senator Lexow
said that President Duke testi-
that at the time of the investiga-
ton there were more than 100 manufac-
turers of paper cigarettes outside of the
company, some of whom manufactured
| machine-made, while others manufactur-
ed handmade cigarettes. Reading from
the copy of the testimony taken before
| the committee, Mr.. Fuller brought out
admissions by Senator Lexow that Pres
ident Duke had testified that only paper
| cigarettes were sold under the consign-
ment agreement, while other goods were
sold on a different plan. He also said
| that sometimes this arrangement was
withdrawn when the company was salts
! fed that the terms of the agreement had
been violated. Mr.. Duke had also testi-
fed that before the organization of the
American Tobacco Company, paper Gig
| arettes were sold at cost and then this
| plan was changed in order to give GUS
toners a share in the profits. Senator
Lexow also said that Mr.. Brown, after
stating that the "black list" was appa-
rently correct, said that the majority of
these dealers were cut off from the use of
the cigarettes made by the company,
because they cut prices, and that each
case stood by itself.
! On redirect examination, Senator Lex
ow said that President Duke had testi-
fed that between 600 and 1000 employees
had been thrown out~of employment by
| the closing of three factories when the
American Company was formed. About
one-half of these employees were re-em-
ployed in other factories by the American
Company.
Later, upon re-cross examination, Sen
ator Lexow testified that President Duke
had said that all of the employees in the
Hill, consolidated and the Goodwin
factories, the three which were closed by
the American Company, could have Sc
cured work in the other factories and this
chance was offered to them, but they did
not care to accept.
| District Attorney Olcott offered in evil
dence the official record of the proceed
ings before the Chancery Court in New
Jersey, in 1894, to dissolve the American