New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-05-06
TOBACCO TRUST INQUIRY.
PROBE By GRAND JURY.
Violating Anti-Trust Lac Charged
H. ". Taft, Federal Counsel.

The federal grand jury, it was ascertained
yesterday. has begun an investigation Of the
American Tobacco Company. commonly known
as the Tobacco Trust, and a number OF sub
sidiary companies. AS the inquiry is under
the antitrust law and is instigated by the
Department Of Justice. which has retained emil
nent special counsel as assistant United States
Attorney General, it promises to prove OF i'm
portance and TO be far reaching in its results.
TWO or three witnesses have been examined
every day. This was not known to any Of the
officials in the Federal Building, and even the
Assistant United States District Attorneys who
were before the federal grand jury ig-
norant of the proceedings. It was learned
that Henry ". Taft, brother of the Secretary
Of War. had been appointed a Special Assistant
United States Attorney General to conduct the
investigation and had as his assistant Felix
H. Levy.
For the last few days the federal grand jury
mas been examining Edwin F. Hale the sec
retory of the McAndrews & Forbes Company,
one Of the large subsidiary companies. Mr..
Hale, 1t was ascertained. had refused to
s"er number of questions the ground
that they would tend to incriminate him, and
others on the ground that the answers would
be too vouminous to be produced at such short
notice. Consequently a presentment of over
SIX typewriter pages was handed in TO Judge
Lacombe Of the United States Circuit Court
late yesterday afternoon by the federal grand
jury, and after argument the court directed
that Hale must answer the questions. The
presentment viii not be made public until
Hale's examination is ended When the grand
jury filed in II was accompanied by Henry W.
Taft and Felix H. Levy. With them were also
John D. Lindsey Delaney Nicou and a law
yer named aPrker, OF the firm Of Nicoll, Ana
Lindsay VIII for duri,, z
Hale.
Hale was also brought in by United States
Marshal Henkel, who had been ordered to pro-
duce him, but he not under arrest. Fore
man Thomas NJ Folsom then handed a present
ment to the judge which contained a list of
questions and answers which Mr.. Taft informed
the court Nj Hale had refused to answer after
appearing in obedience to a subpoena duces
tecum served by the grand jury and executed by
Marshal Henkel
The witness is in court" said Mr. Taft land,
following such procedure, is willing to retire
with the grand jury and to answer such ques-
tons as are in the presentment. l would sug
gest that such procedure be followed
j Mr. Nicoll, counsel for Mr.. Hale, said that he
had no objection and the court directed that the
questions be answered. The grand jury, with
counsel and witness, then retired.
- The arguments disclosed that acting as AS
'sistant United States Attorney General and as
SISTED by Mr. Levy, Mr. Taft was also conduct
ing an investigation of the American Tobacco
Company and, 1t Is said, number Of subsidiary
companies 1t then leaked out that the head
officers Of the subsidiary companies of New
York and in the neighborhood have been ex-
amined for some days, only two or three wit
snesses being examined each day. Every effort
had been made TO keep the inquiry a secret
BIZ Mr.. Taft declined to answer questions regard
ing the nature Of the investigation beyond an
,nouncing it was under the antitrust law. The
presentment, he said, would not be made public
until after the examination of the recalcitrant
witness is ended
Hale was first served with a subpoena on April
% by a deputy United States marshal under
Marshal HenkePs orders. This subpoena called
for Hale's appearance before the grand jury on
May 2, at IL O'Clock. On that day he was re-
subpoenaed by United States Marshal Henkel
personally the subpoena being subpoena duces
tecuIn. The United States marshal brought him
and the papers and books called by the subpoena
before the grand jury.