The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1906-07-08

Investigating THE
TRUST METHODS.
4 (Conti,lued from First Page.)
4 maintaining l'afbltrary ana norl-conpeti.-5
i tive sales OF ,licorice paste.,.l q 1T Il 53s
4 Licorlcc paste Is an absolutely essential
4 ingredient In the manufacture Of toba Geo..
4 The nine independent" tobacco factories
4 in Richmond use Wherein the neig n
4 borhood Of q million pounds {of the paste
4 Der annum and Virginia factories out sdo
| of Richmond probably consume aamllli on
/ and half more. The quantity OF licorice
produced in spnp ana elsewhere - III
\ tied and 1t Is q product THAT pie
CAPITAL and good business tact couid very
ensiy control If not 4 prevented \ w "a ".
IJpI to about sew en- \ years age Wlle .i
| +horo was an open market and plenty OF
competitions Virginia. and North caro- Car
linn tobn cconists obtained al the licorce
innstc they needed In their business ne 3, az
from Ave to six cents per pound ~ ny
they have to pay ten cents p po %. ~.
a ai, cannot always get as much as they
need oven at that fancy figure.
|sl0,rhef evidence BET fore the Federal granu
,iury inS New Y ork upon which the IN.
dictmcnts referred to above were ou IN
shown fact, tho indictments themselves ~.
that, beginning late IN the l1liie-
ties, Sy the tobacco trust. having. so.sst,
control OF the firm Of N1acA =. % :. ana
Forbes;anl incorporated the Mac AndreWs"-
Forbes Company licoricei importer conf m
menced to absorb other licor1cei import
Ing concerns, until now they aDsoiutely
control rnnety-eight perscent.$of the nc
Eorice that comes to this country.
How the Combine Works.
g81Y th,s he true. 1t cam readily be seen
now the tobacco trust can make com pet
Ing tobacco manufact rs pay s45 s 'l
$nrice as the trust may choose ior llco-
rice, thus putting themSt TO great ulsau,
Va ntage as competitors in the TOBACCO
mark It. 81 . y. !, . =, "a ,,non
b ona nretext and another re use to let
troublesome competitors a4 have ilcorlce
haste at any price and thus force &tiielli
Sent OF the tobacco manufacturing pu JUS.
,naas Tor without licorice they could not
make chewing tobacco at Il an az. ! ing
pendent manufacturersAha have believed !. ior
several years that such IS the 8rl ma pul-
nose OF the combination, and ~ IS n1ulnly
because Of this belief that the the govern
ment has been appealed TO- 70 nave y, Us -.
MA I'd turtles Investigate the trust method Is
The government, therefore, sent two spe,
&cinl attorneys, William H. Taft, Jr., ana
9Felix IA. Levy, to New York. to push the n
Investigation, which IS still on. Inc ITS l'
fruits ARE the indictments OF the con-
Germs and persons named.
Plain T Testimony.
The testimony before the grand Jury
showed, according to published !, REPORTS
that the Continental Tobacco COMPANY ON =,
witch ia the plug tobacco manufacturing
department Of the American Tobacco
Company. acquired In 1900 the Mellor y
.Rittneho,lse Goa licortce paste concern
and In 1902 the Continental, throuen n ms ms
COMPANY. got control Of the A1acAndrews
6 Forbes concern and reorganizcd the
two into the present NlacAndrews d
Forbes Company, which tafterward abs y
sorbed the business Of the Stamford
Manufacturing Company.
n The indictments take up tho history. OF
the NIacAndrews e. Forbes Company at
this point The Intention credited to the
; tobacco trust to monopolize the entire
American licorice paste was carrinl mo
effect in December, 19o3. After consld-
cradle negotiation with the ]. S, Young
Company, still posing as an independent
concern, made n contract with John ID a
Lewis OF Providence, whereby 1t agreed
to buy at n profit all the licorice paste
!, lie did not sell under a certain amount
on the understanding that he would keep
his prices on the commodity up to the
tariff then fixed.
In similar manner the j. s. Young
Company came to an understanding with
Weaver & Sterry, Limited, Its sole re-
naming competito OF any note. BY
these measures the MacAlndrews &
Forbes Company. by the summer Of 1904,
according to the indictments. had ac-5
CURED absolute control OF nincty-eight
per cent. OF the licorice paste business
Of the country.
Young Had Good Thing.
The arrangement with the ]. s. Young
Company allowed 1t the profits on 100000
pounds Of licorice r, paste a year whether
1t sold 1t or not. The j. 8. Young Com
pany contracted with J. D. Lewis that
| he would sell not moro than 100000
pounds In 1904, with an allowance OF
! 90, 900 more to sell each succeeding year
| If he sold more than the allotment no
must pay his profits In that back to the
J., s. Young Company, and must, in
any event, ''malntain the arbitrary and
non competitive prices for tho llcorice
paste sold BY him"
| Under these arrangements. as shown
| by letters quoted In the indictments, the
price OF llcorlce paste. which before the
! combination was six and O half cents a
| pound, was raised BY ono cent and
| half-cent advances to ten cents. Its
market price up to few days ago.
How They Divided Up.
The MacAndrews & Forbes Company
| got rs customers all the manufacturers
! OF plug and smoking tobaccos In the
trust Including the Continental Tobacco
Company, the American Tobacco Com
pany, tho American Snuff Company, the
| =, L,orlllard Company the r. ~, Rey-
/ nolds Tobacco Company and Others,
The MacAndrews & Forbes Co. charged
these concerns the full rate and then
covered It's profits back into the treasury
Of the Tobacco trust. .
1t is charged that the John S. Young
1 Company, with headquarters In Balt!-
more. supplied licorice paste to the in
dependent plug tobacco manufacturers at
competitive prices fixed by the tobacco
trust. and for the past three years. until