The semi-weekly messenger., 1907-11-29
AMERICAN TOBACCO COMPANY
Government Investigating its
Methods of Business
Tries to Ascertain its Relations With
Cigar Co.-Admitted by Official
That Relations Were Close, But
Would not Admit Ownership.

New York, November 27.-The ma
cure of the relations existing between
tn American Tobacco Company and
the United States Cigar Stores Com
pany which has a large number OF re-
tail stores throughout the country, was
inquired into at today's session in The
hearing in the case of the United
States against the sO-called tobacco
trust
The hearing is taking place before
United States Commissioner Shields
While it was not established by direct
admission that the relations were abb
solutely told by the American To-
bacco Company, much of the testimony
was to the effect that unusually close
relations between the two companies
P. O. Hill, vice-president of the Amer
lean Tobacco Company, was the only
| witness examined today. He said that
while he never knew of a specific de-
nial of the report that the United Ci-
gars stores company, was owned Dy
| the American Tobacco Company, he
did not recall that such ownership hod
ever been admitted. He said he had
very little knowledge Of tke manage
ment of the United Cigar Company,
giving it the benefit Of regular trade
discounts given to jobbers who en-
| couraged the use of the American
| Company's products. These discounts
amount to from seven to ten per cent.
| besides the usual discount of two per
| cent. for cash. Mr.. Hill said the
| American company sells to no other
retail tobacconists in New York. Asked
| who furnished the money to start
| the business of the United Cigar stores
| company, Mr.. Hill said he did not
| know. Asked as to the ownership of
| the iobbing concerns By his corpora
| ton throughout the country, Mr.. Hill
| said it had interest in only one, that
| was in New Orleans. Asked if The
| United Cigar Stores Company had an
interest in a concern in Chicago. Mr.
Hill said he did not know. A dozen
concerns or more handled the COM
pany's product in New England and
get the same allowance, he said. Con
Germs which handled the American To
bacco Company's products exclusively
however, got an additional allowance
Several letters from Mr.. Hills person
al letter books relating to a plan tc
maintain prices of imported goods, s,wert
read It provided importers, includ
ing Parker and TilkfOrd and Acke]
|
to sell Havana cigars to retailers an(
jobbers at the same price. This Nigh
cause a decentralization of business fo
a time, the letter said, but in the ent
would result in forcing the importer
into an agreement to maintain prices
Mr.. Hill said the American Tobacco
Company owned a small amount O
stock in the Acker, Mccall and Con
dit company, but none at all in tn
Parker and ITilford concern.
Another letter, written to the Amer
lean Tobacco Company's confidentia
agent in California said compan
was to be formed in California il
conjunction with Blasskover, who al
ready was doing a large business ther
to push the American Company
goods in that market The Amerl
| can COmpany's connection with th
, company was to be kept secret.
. Mr.. Hill said today that that plan wa
carried out but that eventually BlasS
kover took ownership of the entir
business. =.
That the American Company in 19C
; | owned a large interest IN a factor
in New Orleans, operated as Craft an
Company, and kept the fact Of il
: | partial ownership secret, was disclose
: by another letter.
The hearing will be continued Fr
, | day.
2 WILL ARRIVE TOMORROW