The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1893-11-17
TOBACCO TRUST HIT At
Attorney General Stockton
Asks For an InjunC-
ton to Protect
Jobbers.
specia, to The JERSEY City Ne,us.

TRENTON, Nov. II. 1S93.-AStorney
General Stockton has begun a suit
against the Tobacco Trust because of
their interference in the business of some
Of the tobacco iopbers of the State aud
their violation of the law against combl-
nations and trusts. The Attorney Geu-
eral moves { the instance Of john s
Miller and Frank w. Miller, tobacco
iobbers In the city Of Newark. and the
the Chancery Office contains at least TO-
900 words and is devoted to the history
OF the organization Of the Tobacco Trust.
and their various devices to monopo-
iize the cigarette business in New Jersey.
The bill seeks for q rule to sho cause
whv an injunction should not be granted
restraining this Tobacco Trust from re-
fusing to make sales to jobpsrs because
they handle other cigarettes.
ILLEGAL ORGANIZATION.
The bill also attacks the American
Tobacco Company. as the trust 10 called.
because it is lille gallY organized under
Tobacco Company is an aggregation OF
the cigarette manufacturers in the
United States and was formed by
the absorption of the business and
property of William S.. kimble,
Goodwin & Co.. Allen & Ginter. w.
Dukes Sons & Co. and the Kinney To-
pacco Company, having cigarette cons
Germs located In different parts OF the
United States. aud they sell IS per ceut.
of all tie cigarettes used In this country.
By the formation OF their trust they have
c. nspired together to control and mouop-
olizs the entire business of the manufac-
rure n sale of cigarettes. To further this
~aA fhn OknrA fnf- N - -
make a distribution OF the property
held by each n the organization OF
the company with a capital stock
of $50. 900. 600. They Incorporated under
the laws of New Jersey. filing their
certificate in the Office of the County
Clerk of Essex county. but the Attorney
General aud the oratols In the suit will
show that the attempted corporation was
nugatorY. and that the corporation aid
not intend rs they stated In their article
of incorporation, to establish any factor
les or depors In the State of New jersey,
and that they never had an Office in the
State of New Jersey.
ARBITRARY AGREEMENT.
The particular complaint of the orators
is that they have been selling the pro-
ducts of this American Tobacco Com-
pany according to the agreement which
they make with jobbers, and which
agreement is altogether arbitrary and to
the pest Interests OF the company,
and to the discontinue OF the job
hers; that there are throughout the
United States a large number OF iobbers
who handle these cigarettes under these
unfayorable conditions. The company
compelled them to handle the products
OF their various factories, assum
ing the risk after being delivered by a
common carrier, but are not the property
of the joDber. but re naiu in his posses
sion uutil sold. and that he must sell
them at the rate of 50. so a thousand, and
be allowed thirty-dve cents per thousand
for the sale. The company reserved the
right to refuse to deliver goods to tina
jobber IL they saw fit. The compiainanrs
further stated that have recently been
obliged to handle other cigarette. not
made by the American Tobacco COM
pany. because their trade demands 1t, and
for this the American Tobacco Company
refused to deliver to them any of the
several brands of cigarettes made by
them, which has interfered very serious
II with their trade, 1nsomuch that they
are unable to supply their customers aud
are daily losing money, and want the
court to come and interfere with any
such arbitrary arrangement on the part
OF this Tobacco Company.