Evening star., 1911-01-31
SAYS TOBACCO TRUST
CRUSHES COMPETITION
J. w. Yerkes Calls American
Tobacco Co. an Octopus at
Committee Hearing.

The American Tobacco Company. the
sO-called tobacco trust, was pictured be-
fore a subcommittee of the Senate COM
mittee on finance this morning by Attor-
ney John W. Yerkes as an octopus. using
its coupons as claws to inflict fatal in
juries to competitors.
The description was given during q
hearing on the Beveridge bill to prohibit
the issue of coupons with tobacco or
snuff. Representatives of independent to-
bacco manufacturers were heard, some In
opposition and others in favor Of the
legislation. 1t was evident the independ-
ents are split over the merits of the leg
islatiOn
The bill eliminates coupons. allows the
use of the union label on packages OF
tobacco, requires that the name of the
bona fide manufacturer shall be on every
package Of tobacco put on the marke,
and prevents the redemption of any par,
OF a package in lieu of coupons.
Mr. Yerkes, representing a number OF
independents. contended that the coupons
were not used by the tobacco trust for
the legitimate purposes of advertising.
but Ito strike down and break down the
business of small competitors" He point
ed to testimony that had been taken in
the courts in prosecution Of the so-called
trust.
Used to Secure Trade.
That testimony shows, he argued. that
the corporation will put coupons into a
package designed to fight the package
or brand of a competitor. and that as
soon as the corporation has secured con-
troll over the larger part Of the brand
Of tobacco that is produced the company
Immediately quits the use Of the coupon
Mr.. Yerkes also contended that the re-
quirement that the name of the manu-
facturer should be on the package OF
tobacco was just one. because the same
requirement is now made, by reason OF
other products. such as distilled spirits
and beer, paying an internal revenue
tax. 1t is also in line with the require
ments of the pure food law, he argued
The objections to such requirement,
he said. are to be found In the testimony
in court prosecutions. He said that the
American Tobacco Company had bought
up Independent factories, but had con-
tinued. for the purposes Of deception
abone,' to operate the factory under the
name of the Independent and had adver-
tised the factory as an Independent one.
Proposes to Strengthen Law.
Mr.. Yerkes proposed new section for
that section prohibiting the exchange OF
a part Of package in lieu Of coupon.
He argued that the section, as framed
in the bill, would not prevent the redeudp-
tion of coupons or parts Of packages by
q subsidiary company. and his amend
ment was to prevent such an evasion of
the spirit of the law.
Henry NJ. Russell. representing the
Bloch Brothers Company of Wheeling, an
Independent tobacco manufacturer, op-
posed the legislation. The company he
represents, he said, found the best way
to meet the competition OF the trust, as OF
other independents. was with coupons.
James M. O'Grady, representing an in
dependent company in Rochester, n. y,
argued that the provision against the re-
demption of any package or part of a
package was unconstitutional, because
the government could not follow the
paper and other substances used for the
packages into the byways after the con-
tents had been used.