New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1895-10-24
THE TOBACCO TRUST war;
ALLEGATIONS IN THE PETITION TO THE
ATTORNEY GENERAL.

THE coMPANY.s BUSINESS DECLARED TO bE An
UNLAWFUL MoNoPoLy-PowERs OF THE
STATES CHIEF PROSECUTING OFFICER
The brief IN the petition OF Charles A. Wheiah'
NJ SYRACUSE. to Attorney General Hancock TO IN
atitute proceedings against the American io
bscco Company commonly known as the Iopacc'
Trust has been placed In Mr. Hancocks hands
nv Einstcin g. Townsend. OF thir city. counsei ior
the petitioner.
Thu netition sets forti Il at Allen a. Glhter
William s. Klmball & Co, w. Duke, sons I" Co.,
Goodwin a. Co. and the Kinney TOBACCO No'''
many produced So per cent Of the cigarettes Ha"u
featured and sold in this country prior 10 the
formation Of the American Tobacco Company y"
January o. 1890 The capital stock OF the AMER
on, Tobacco Company 1t was asserted, WAS 10 pr
s25 900 900. OF which so per cent was 10 De issueo
for the plant. good will. trademarks ETC., OK the
five concerns "a follows: Allen Ginter' 81 per
cent; Duke, Sons Co., 30 per cent; Kinney W.
baoco Company. 20 per cent. the othet t"o " pe'
cent each. The residue was to be Issued IN pay
ment of live assets
While the company contends that the as'ee
ment to form this corporation was aoahooheu'
the petitioner asserts that the company was oui'
formed and the agreement plan carried out. In
March 1892 the petitioner says. The company
Man TO sell cigarettes absolutely to jooDers their
,rosts consisting Of rebates having proved I'M
,ot,sroc,orv a new course was adopted by when
&c a condition of obtaining the company's goods
the iobbors were Obliged to sign an agreement
known az the consignment agreement py
which the jobber vas constrained TO agree 10
sell the goods CT the American TOBACCO Co.'p"iis
at a price t. be fixed by the company, 70 assume
all risk in connection with the goods WHICH 20
ordinarily assumed by purchaser. Inc Joo"e''
were allowed deduction OF z per cent io' ie
,1ittances made within ten days after shipment
they were further made to agree that the sooua
should remain me property OF the company UNI"
sold by them and the said jobbers were requiteA
to cooperate with the company, promote ITO III
terest and han1le Its cigarettes 70 us 7"'s'"o
tion.'"
The petitioner proceeds The evloence is ciea'
and tho nroof indsputable that when jobber at
tempts to handle the goods OF any other cohoe'"
or does sell below the minimum price fixed by the
American Tobacco Company, thereupon ne IL pre-
vented from obtaining the goods Of the American
Tobacco Company except at the prices at wnich
he must sell the goods to the retailer;
The pettioner contends that the combination OF
these five concerns and the method by wnlch the
business of the combination Is conducted, are III
the nature Of a monopoly. in unlawful restraint u
trade and violative Of public policy. ana mat tne
,t,nrrav General has the power to institute APP
nropriate proceedings tc prevent the further con-
tinuance within the Stete of New-York OF the
acts complained against .,
large number OF cases regarding compina-
tions for controlling prices and preventing COM
notition even though there be an actual reduc-
ton in cost to the consumer. are clteo as proofs
~ the condemnation OF such combinations py
the courts ,, .x
As 10 the Tobacco Trusts technical conten-
common Law to bring the action prayed for. the
netitioner cites cases showing that the Attor-
new General must be held to have the powers
hejorpinp to the office at common law, ana
such additional powers the Legislature has
seen fit to confer upon him.