The sun. [volume] (New York [N.Y.]) 1833-1916, 1893-11-17
CIGARETTE TRUST HIT AT.
IxJUxCII0N lshED ron TO PROTECT
t. FROZEN OUT JOBBERg.

Attorney-Sensrni stoekton or New Jersey
says That che Trust Hasn't Complied
With the l. ~ Under which IL Operates.
The National Tobacco Company. which man
ufactures q paper-coyered cigarette In oppo-
sition TO the cigarettes made By the Tobacco
Trust. has. through it's agents. induced Attor-
ney- General John p. Stockton OF New Jersey
to take UP its fight against the trust, which is
otherwise known as the American Tobacco
Company. Yesterday the Attorney-G General
began q suit In the Court OF Chancery in the
name OF the State. Primarily its object is to
compel the American Tobacco Company to
sell lite cigarettes and products to any jobber
who may want to bug. Incidentally. the At
torney- General attacks tho company as an IL
legally organized trust
The American Tobacco Company 10 COM
posed OF the flrms OF Allan & Ginter Of Rich
mond Va. Kinney Brothers OF New York.
the W. Duke 4 Sons Company Of New
York. William l. Kimball Company OF Ro-
chester. and W. Goodwin & Co. OF New York.
The capital stock is S35.000000 Allan &
Ginter hold 80 per cent. the Dukes 80 per
cent. Kinney 20 per cent. and the other two
concerns 10 per cent each. They manufacture
e5 per cent. OF all the paper-covered boy-de-
stroyers that are sold in the United States.
They sell them at 81. 10 thousand to jobbers.
who sell them at So so o thousand to retailers.
who. In turn. sell them for IS . thousand to
victims OF the habit
Ever since the trust was organized. It Is al
legged. 1t has endeavored 10 drive out all COM
petition By unfair means At first, It Is said.
It stipulated with the iobbers who deal with
tho retailers that II they sold any clgare tes
not made by the trust they could not purchase
trust cigarettes for less than retail price. and.
% the trust controlled all but one brand OF
cigarettes. the jobbers could not afford to han.
die that one brand and lose their trade In all
Is 50 q rec
This system after while was, discovered to
selling to, the one which 10 in force now. and
which is known az tho consignment system.
handle the goods at proft, has TO sign formed
q q part q the com plant made BY the Attorney.
iobber as an ont.and. out agent Of The trust
The Objectionable features are q part Of the
siAth clause; which says: .u,u .,,.p
ton with the business shall be 35 cents e on
81 81. provided you shall fully comply with ali
the conditions herein contained and shall CO.
ana hasds s It's st
for sale at less than $3.50"
" any proyision Of clause q Is violated.
you bhhn hot clhlLl any cOW on any
past, present. or future sales"
Clause 8, also objected to. is: We reserve
the right to decline to consign to you any
more cigarettes and to withdraw any cigar
ettss Hre a; you violate any
The. Attorney General says this contract Is
illegal, and that its object is to stop competi-
tion. He has an .aff1davit made BY John Il.
john Az sr the M
lers are tobacco jobbers. They say that when
the opposition" cigarette came out and
their customers demanded II. they purcha sed
1t. The agent OF the trust then came to them
and informed them that hereafter they would
have to pay So 80 Thousand for trust cigar
cites. When they tried to purchase them even
at that price for cash, they were informed by
officers Of the trust that their account had
been closed and would not be reopened.
The Attorney-General asks for q rule to
show cause why an injunction shall not issue
the trust from refusing to sell
their wares to the Millers and others who
want to buy them. He also attacks the legal
ity OF the company. on the ground that its
stock was not limited to the actual value Of
its property and that the assets altogether
are not equal to the amount of stock: also that
It has no factory in New Jersey. and maintains
no bona fide Office In this State. as the law re-
Quires,
The expenses Of tho suit will be paid partly |
by the State Of New Jersey and partly by the |
men who are Interested.