Daily press. [volume] (Newport News, Va.) 1896-current, 1907-11-28
So Called Trust CIdse 10 Tia 8usl:
ness Of the United Cigar
Company.
Vice PRESIDENT HILL ON sIAul
AdmitS That What ls Supposed 20 he
Rival Concern is Given Llssrsiii
oiseounts-How Cigar Imoprtcrs
A'c Forced TO Enter Into an Agree.
ment TO Maintain Prices. n.
nv Aesociatod prassl

my Associated Press)
MEM YORK, Nov. a7--Tne nat,irs
of the relation existing between tho
American Tobacco Company mud tlses
United Cigar Stores Company. whscn3
has large number of retail storas
throughout the country, was Inquiries
into ut today's session i'll the hearing
In the case OF The United States
against the so called tobacco trust.
forr United States Commissioner
Shields.
While il was not established by dr.
direct admission that tho stores WE'RE
absolutely controlled by the Arneri.f
can Tobacco Company, much of thu
testimony wus to the effect TINT un-i
usually close relations existed batwee
the Two companies.
7. o. Hill. vice president of fliS
American Tobacco Company. was tftes
Ionly witnesB examined today. Asis
said that while no never knew Of
lRpacliic denial of the report. that tho
united Cigar Stores Company was
owned by tho American ToDacco COM
pany, he. did not recall that such own. u
inE;iiip itsd SeYs;gs heen adtui.tedl s.
!. He said slha he'd lcEyis u tsle lsposFi
edge of tina management Of tho II
tod CiEir Stores Company, hut III Was
given .hesboneiit OF regular trade dfA
lcornts given to jobbers who encDSir,
aged the use OF the American Coil
pany's products. These discounts
amounted To from seven to ten per &
cent. besides the usual two per cont
for cash.
Mr.. Hi said the American Com.
pany sells to no other retail tobac.
lconists III New York. Asked who
fNnished the money to start the
business OF the United Cigar Stores
Company, Mr. Hill said he did Eos
know. Asked IA to the ownership 81 !
the jobbing concerns by his corpor4s
ton throughout the country Mr.. Hill
faid It had been Interested In onlg
one and that was in New vrleanB.
Whether the United Cigar Stores Com.
pnny had an interest in "a concern Ia :
Chicago. he said he did not know. Il
dozen or more concerns had tho
conlpany's production ind got the
same allowance he said
The concerns which handled the
American Tobncco Company's pro-.
ducts exclusively get an additional ais
,iowance.
How Importers Are coereea.
J Several letters from Mr., Hilrs perl
Bonal letter book relating to plan ]
to maintain prices on imported goods.
were read. II provided that import
crs. Including Park AZ 'rilford ard
AckcT Merrill & Condit of New York
who sold Havana cigars to retailers
jand lobbers at the same price.
| This might cause denioralizatiou
of business for a time he said. but In
the end II would result in forcing thhlS
importers into an agreement 10 n,ainz
tain prices
/ Mr.. lin said that the Ancricon
Tobacco Company owned small
amount OF stock In the Ackcr, Merrill
& Condit Company, but none in the
I, Park & Tilford concern.
4 Another letter written TO the Am0ri.
can Tobacco Company's confidential
agent in California siid Il compans
twas 10 be formed in California IN cen
j junction with Blasskover who hi-
ready was doing 4 large business theirs
10 push the American oompaay'g
goods in that market.
The American Company's connecticr,
With the company was to bo kept So
cret.
4 Mr.. Hill said today that that plnns
was carried out and that eventualsf
I, Blasskoycr took ownership OF tho e3ls
tire business. That the American 10;
hacco Company In 1904 owned ierge
interest in n factory In New Ofieans
operated MS Craft & Company and
kept the fact OF lis partial owner
ship q secret, was disclosed by M
other letter,
The hearing will DO continued on !
Friday.