Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1895-11-19
Decision Of AttOrney.General Of New
York to This Effect.
NHELAN PETITION GRANTED.
Action I'm the Courts ON the Part
Of Petitioners AuthOrixed-Basis OF
tions Made.
tions Made.

ment of an action to prohibit the Ameri-
can Tobacco Company from doing busi-
ness in this State. The Attorney-Gene-
raj grants the petition of the paintirs.
1t is generally believed that this is the
first step in movement against the
different trusts, and that eventually the
legality Of the business in sugar, leather,
etc. by combined companies will be sub
ject to like review In the courts The
effort Of the Chicago Gas combination to
secure incorporation in this State is
thus headed of
1t is understood in Syracuse that At
torney-General Hancock is acting in
sympathy with Governor Morton's wishes,
ana that this decision against the tobacco
trust Is only beginning.
TEXT or DECISION.
Attorney-General Hancock. in his de-
cisiOn, says. Application has been made
10 the Attorney General 20 commence an
action i'm the name Of the people against
the American Tobacco Company, To Oh
tain a judgment restraining the company
from transacting their cigarette business
in this state. and to cancel the certiilcate
of authority heretofore granted to the
company authorizing II to carry on bust
ness i'm the state Of New York.
IL appears from the papers presented
upOn the hearing that the American To-
bacco Company is a New Jersey company
incorporated on or about January % 1890,
with a capital stock of $3,W0v1. IL j
stated i'm its articles Of Incorporation thaI
the objects for which the company was
formed were TO cure leaf tobacco, ana
10 buy. manufacture, and sell tobacco IN
Ill nj IN .gf4h hlish factories.
agencies. and depots for the sale and dis
trlbution thereof and to transport, or
cause the same 10 be transported, as
an article Of commerce, and TO DO an
things incidental to the business OF trad
ing and manufacturing aforesaid.
An action is now pending against the
company In the State of New Jersey,
by which ii Is alleged In substance thdt
the company was organized for an uEiaW-
ful purpose: that the incorpOrators ol the
company originally consisted OF firms and
corporations transacting the same kind
OF business In different States as com
petitors. and entirely Independent or
each other, manufacturing and selling
among other products 20 per cent or
the cigarettes manufactured and sold IN
the United States that said firms and
corporations. for the purpose OF prevent
ing competition among themselves and
IN DFIer 10 OUiAln Il upNtfDaF u Alt
manufacture and sale OF this particular
line Of goods, and to arbitrarily fix and
maintain the prices Of that commodity,
entered into an agreement TO organize
a corporation 20 be known as the Amerl-
can Tobacco Company. Of which they
should respectively become stockholders.
receiving full-paid stock In payment for
the purchase az them by said company
ot the property used by each of them in
the business in which they were then
engaged
CHARGE OF CONSPIRACY.
Various other allegations are con-
tainei in said complaint. charging a con-
spiracy and unlawful combination upon
the part of the original firms and cor
porations which entered into the organi-
zatlon Of the company in question, the
object Of which is alleged 70 be to es-
tablish and maintain an unlawful control
of the manufacture and sale Of said
commodity and 10 crush out competi-
ton
In brief the evidence and papers sub
mtted TO me are 10 the effect that -
per cent. or over Of the cigarettes manu-
factured and sold in this and other States
are the product Of the American Tobacco
Company. disposed OF generally through
agents. whose profits are the commissions
other words the wholesale dealer. job
ber or whoever he may be thT, obtains
this commodity from the company for
hte purpose Of commerce. is. with the ex-
ceptions / have before stated, at once
turned into an agent Of the company, and
subjected 10 its direction and control, as
To- the terms and manner in which
he shall dispose Of this particular line of
goods. 1t is claimed upon the part of
the petitioner that the real object and
purpose Of this arrangement and method
OF doing business Is TO compel jObbers
and dealers 10 refrain from selling any
cigarettes except those manufactured by
the company; and that If they handle
other brands the company refuses 10 con
sign any further goods 10 them, and
that. inasmuch rs the larger part OF the
cigarettes manufactured and sold are
produced by the factories OF the company.
such a withdra wal results I'm great in
jury 10. If not "A destruction of, the bust
ness Of said dealers. Various aiiidayits
have been presented. and depositions of
witnesses have been read tending TO
etablish this claim Of the petitioner.
From the evidence submitted to me.
the court would be authorized in holding
that far the larger portion Of the cigar
cites disposed OF I'm the State OF New
York are the product OF this company
consigned TO so-called agents and sold
by them under an arrangement. express
or implied. that they shall handle the
goods OF no other manufacturer. The con-
solidation Of the original firms and cor
poratiOns, or their constituent members,
into one corporation necessarily termi-
naTes any competition between them, and
the sale of goods by the aggregation,
having already substantial control o& the
market. upon condition that the pur-
chasers shall not handle the goods OF any
other firm or corporation. necessarily
has a tendency to complete and continue
a monopoly OF the market. as far as
tn particular commodity Is concerned.
Evidence Of this method OF transacting
business would. in my judgment, be COM
petent TO prove an original unlawful
combination or scheme upon the part Of
the organizers OF the corporation.
ACTION AUTHORIZED
Il am OF the opinion that sufficient evi-
dence has been produced upon the hear
ing 10 authorize the commencement Of an
action 10 determine whether the Ameri-
can Tobacco Company is not transacting
its business I'm the State Of New York in
an unlawful manner. in restraint OF trade
and 10 prohibit II from further transac-
zion OF such business.
THE application il granted, and an ac-
ton may be commenced upon filing "A
bond sufficient in form and amount to
indemnify the people against costs OF
suit"
The Dry-GoOds Market.
NEW YORK, November iS.--The week
opens with no break In the monotony OF