The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1910-03-20
FIGHT TO CONTROL
DRUG BUSINESS
Big Trust May Be Forming in
This Country
WILL JOIN J. P. MORGAN
Movement on Foot to Establish Chair
of Distilleries in West for Man
ufacture of Denatured Alcohol
From Irish Potatoes

/
business of the country is now triangular,
and is getting to be hot.
While John B. Cobb of New York and
Louis K. Liggett of Boston are busily
engaged in fighting one another in the
courts, as believed, to decide the question
as to which of the interests they repre-
sent shall control the trade of another
man, {. H. Goddard, Is evolving a plan
even greater than theirs in Its inception.
John b. Cobb is believed to be a large
stoekholder in the United Cigar Stores
company, and this concern. owning stores
IN many parts of New York, as also in
other cities, is now said to be after the
control of the retail drug business of
the country. 1t is through Mr. Cobb
that it is seeking to get this control
Louis X. Liggert is president of the
United Drug company, which owns a
| number of retail stores in various cities
OF the country Mr. Liggert is planning
i control the entire retail drug trade of
the country also, as well as to prevent
Mr.. Cobb from accomplishing this
NOW comes Mr. Goddard, who is man.
ager of the American drug syndicate,
with similar end in view.
In discussing his proposition, Mr.. God
dard calls attention to the fate that has
oYertaken the small retailers in Great
Britain, who have been crushed by GER
tain big combinations. He said:
By the plan which l have in mind the
American drug syndicate may acquire
practical control of the retail drug bust
ness of the country, either by buying the
retail stores of such members or others
as may desire to sell and by co-opera-
ton with such as do not want to sell, so
that the members will be able to get the
fuli credit and support of the syndicate
without losing the identity of the in
d1Vldual druggist, yet enjoying the pro-
lection which it is proposed to extend
TO all American drug syndicate stores. T."
All Oh which means merry fight in the
drug business or combination and ulti-
mately retail drug trust, probably first
the one and then the other
Henry P. Dawson of J. P. Morgan g.
Co quietly sailed for Europe the other
day, and will, no doubt, join J. P Nor
gan on the other side. Other members
OF the house are also holding holiday: in
fact, seldom if ever have so many men,
bers of the firm been absent at one time
j. r Morgan, Jr., is al present in Chi
cago. Since Mr.. Dawson was picked by
the elder Mr. Morgan as one of his aides
several deals of the first Importance have
been largely attributed to the genius of
this young banker The Guaranty Trust
coupe was executed by him and it was he
who took foremost part in securing for
Mr.. Morgan ownership of the Equitable
Life. Strictly banking schemes consti-
tute his forte, whereas other members
Of the firm are adapted for handling rail-
road business, industrial problems and
so forth. 1t is not known whether Mr.
Davison's visit to Europe has any large
business significance; probably it hasn't.
A movement is on foot in this city to
encourage the Western farmers to turn
their potatoes into denatured alcohol by
developing a chain of small farm dis
tileries and furnishing the market with
the product. The Changers of the coun-
try are being interested and several of
these farmers organizations have already
passed resolutions asking congress to re-
move the duty from agricultural distil-
lefy apparatus and paying a bounty of
10 cents a gallon on denatured alcohol
II Is stated that there are 1900 agrcul-
tural dfstilleries in Germany from which
is supplied the larger part of the in
dustrial alcohol consumed in the country
At the recent meeting of the New York
State Grange 1t was resolved that the
New York Grange is in favor of the
farmers of the United States cooperating
together to build, equip and operate an
agricultural distllery, according to the
best European practice at such place as
may be selected as most suitable by a
committee selected for that purpose. and
that Past Master u. B. Norris is hereby
appointed to represent the New York
State Grange in this matter, and in
structed to correspond with the officials
of other state oranges, and with repre-
sentative farm leaders in states where
the grange is unrepresented, with the
70 ri mo- finr, in
forming a central committee to carry
out this work.
Fully 80 per cent was earned by the
tobacco trust on its common stock during
1903. The net earnings exceeded $30000,-
coo, and the balance available for divl-
dends was over $4,000, 000 these results
being the best recorded. After paying the
preferred dividends there remained a
balance of upwards of $20,000, 900. OF this
fully s14,0000O0 was distributed in the
form of dividends on the common stock,
against Sl3, coo in 1908. 80 100000 in 1907
and 49, 100000 in 1906. Lackawanna, it may
be remembered, did even better, yet
President Truesdale complained about the
obstacles to doing a profitable business
interposed by the government. The to-
baceo trust had had taste of the federal
administration hostility to combinations
suspected of leaning toward monopolies.
A report such as that issued by the
American Tobacco company is not calcu-
lated to draw tears of sympathy from
consumers, should the supreme court rule
that some of the trusts business methods
have not been above reproach. The to-
bacco trust does even better than the
| oil trust in the way of dividends.
.
An extremely important decision in
bankruptcy practice has just been handed
down by the United States circuit court
of appeal in the case of Schulman &
Goldstein. bankrupts, who in 1900. owing
about $4,000, after their adjudication in
bankruptcy the proceedings were referred
to Seaman Miller as referee
| Schuman, one of the -bankrupts, was
| called upon to testify before the referee
to explain the enormous shrinkage in his
| assets.
| Schulman refused to make any explana-
| ton of the disappearance of these assets.
| The referee, upon the applicati ton of
| counsel for the Merchants Protective as
| ISOLATION, made certificate to the effect
| that Schulman was committing perjury
! in deliberately Withholding facts from his
creditors which must have been within
his knowledge Upon tits certificate Judge
holt ordered Schulman's arrest end COM
mitted him to Ludlow street jail for six
months for contempt of court.
Schulman took an appeal to the circuit
court of appeals and Judge Coke of that
court has just rendered an opinion con-
Cured in by Judges Lacombe and Noyes
that the commitment for contempt was
| proper.
The Importance of this decision is thai
| n holds tbo+ hapkr11pt who commits