New-York tribune., 1906-12-22
LICORICE CORNER UP.
Mr.. R4U ON THE STAND.
Young Company's antitrust Id
Dertisenref,t in Court.

the ITnited States Circuit Court OF the Mao
Andrews & Forbes Company and the ]. g
Young Company subsidiary corporations OF
the Tobacco Trust and of their respective
presidents for violation OF the Sherman Anti
Trust law, in monopolizing the trade in Iicorice
paste was resumed yesterday and will be con-
tinued to-day. Henry NJ. Rau. selling agent for
the MacAndrews & Forbes Company, was re-
called TO the witness stand and asked TO identify
a letter written by him to the president OF the
MaoAndrews G. Forbes Company on January
13. 1904. which contained a list of the preferred
customers OF the ]. s. Young Company and
another OF those of the J. d. Lewis Company,
of Providence and explained that no effort
would be made by one company TO sell to the
customers of the other.
After identifying this letter Mr. Rau. in ro-
ply to questions from De Lancey NicoI. Of coun-
sci for the defendant companies, went on to ex-
plain that licorice paste was made from ncorice
root from which the water had been extracted
by boiling; that the root was found on the shores
OF the Mediterranean and Black seas, In Syria,
Persia. and in Southern Russia: that, so far as
he knew. the root grew wild, gathered in
the winter by native labor from fields leased
for a term of years by government and private
owners, among them the MacAndrews & Forbes
Company; that licorice paste used ex-
clusively in the manufacture OF plug tobacco.
with the exception of tobacco designed for both
smoking and chewing purposes, and that OF late
years it's price in this country had remained
uniform. being fixed by the principal manu-
facturers at meeting in New York.
Special Attorney General Taft then resumed
his direct examination OF Mr.. Rau ana learned
from him that the MacAndrews & Forbes COM
pany probably the only importer of
licorioe root in the country and that this com
pany practically controlled the digging of Greek
root in the Orient
''They use hcorice paste in tobacco to give It
weight, do they not2" continued Mr. Taft The
witness wanted to explain. but Mr. Taft insisted
on direct answer. It was so used to certain
extent, Mr. Rau said.
Just before the noon recess E. F. Hale, the
former secretary Of the MacAndrews & Forbes
company, was recalled as a witness and identt-
fed a letter written by President Jungbluth of
the MacAndrews & Forbes company to David
Forbes. the company's agent in Constantinople
Mr.. Nicon objected to the admission of the let
ter as 1t had been written prior to the overt
acts complained Of The court overr1lled Mr.
NicoH and an exception was taken
The letter referred to the future production OF
licorics root in the Orient, and the writer sug-
gested that 1t would be necessary to shut Lewis
& Co. out Of supplies in order 10 better effect
an understanding with the firm. To accomplish
this the letter said. all the old and new root in
tne market was to be purchased
After recess Mr. Hale was asked n idan+trv
different letters which had passed between the
presidents Of the defendant COMPANIES Ona lat.
ter from President Jungbuth, Of the MacAn- !
dreWs & Forbes Company. spoke of raising the
price or Greek root to all confectioners Six weeks
later according to the evidence the Young
company old raise the price on a consignnent
TO Chicago. In another letter from Mr Jung
bluth it was said that the public should not be
allowed to know the exact nature of the rela- |
tionship between the MacAndrews & Forbes |
Company and the ]. S. Young Company. In re- |
ply TO this. President Young wrote that when |
asked by dealer in st. Johns Newfoundland |
whether the Young company was about to be
absorbed by the Tobacco Trust he had called
his attention to an advertisement then appear
ing In a tobacco trade journal. which asserted !
that the Young company would continue In the |
future as in the past, to do business without
any connection with the Tobacco Trust and |
called on all independent dealers and mann
tacturers TO stand by the Young company in its |
Tight against the American Tobacco Company
Mr.. Nicou tried hard to keep the advertise !
ment from appearing in the case, but his |
objections were Overruled, and the advertise |
ment was read 10 the jury. Mr.. Taft took oc- |
caslon 10 point out to the jury that the adver-
tlsement had appeared two months after tbe /
formation Of the ]. S. Young Comnanv
under the laws of Maine and the transfer of a |
drews & Forbes Company. a recognized sub. |
sidIary company Of the Tobacco Trust
Ihe remainder OF the afternoon session was |
taken up with the Identification of other iattors |
by MI Hale, which showed that six months
after the formation of the combination prices
were advanced and both firms refused IN enter
into any contracts calling for the future de-
livery OF paste and that the Young company |
demanded S13 cents pound for its paste while /
the MacAndrews & Forbes Company asked o |
cents. Mr. Hale, in explanation of this differ
ence' said that he thought it due to the differ
ence in the two firms branda
Mr. Taft asked him IL II was not done 10 d,roo.
the trade of the independent manufacturers 70