The times. [volume] (Richmond, Va.) 1890-1903, 1895-11-19
AMERICAN TOBACCO co.
ATTORNET-GENEA HASCOch'S DE
CISfON AGAINST 1T.
Application for Restraining Order IN fre-
ven. the Company From THANKSGIVING
Their Cigarette Business.

General Hancock TINS tNeihns go. ~
his decision in the case. the c a" F" MEAN
a CO.. OF Syracuse. against the Ameri-
can Tobacco Company, a proceeding pre-
iiminary TO the commencement OF an ac-
ton to prohibit the American Tobacco
Company from doing business IN TINS
State.
The Acknowledgement grants the petit
ton for the plaintiffs.
IL is generally believed that this IS a
first step in a movement against the
different trusts. and that eventually the
Legality Of the business in sugar leather.
etc. by the combined companies will
be subject 10 like review in the courts.
The effort OF the Chicago gas combina-
ton TO secure incorporation IN this state,
Is thus headed OF II is understood in
Syracuse that Attorncy-Gereral Hancock
is acting in sympathy with Governor
Morton's wishes, and that this decision
against the tobacco trust is only be
ginning.
GENERAL HANCOCtrS DECISION.
Attorney-General Hancock. in his de-
cision, says:
Application has been made to the At
torney-Generai TO commence an action IN
the name of the people against the
American Tobacco Company. TO obtain d
judgment restraining the company from
transacting their cigarette business IN
this State. and TO cancel the certificate
Of authority heretofore gantcd 10 the
company. authorizing it TO carry on ousl-
ness I'm the State of New York IL ap-
pears from the papers presented upon the
hearing that the American Tobacco COM
pauy is a new Jersey Company moor
porated on or about January ~ 1879, WIN
a capital stock of S35,pD0eJ. IL IS stated
i'm its articles Of incorporation that the
objects for which the company was form
ed were 10 cure leaf tobacco. and 10 buy,
manufacture and sell tobacco IN all its
forms. and TO establish factories, agencies,
and depOts for the sale and distribution
thereof. and TO transport or cause the
same 10 be transported. as an article OF
commerce. and to do all things Incidental
10 the business Of trading and manuiac-
turing aforesaid.
An action is now pending against the
company I'm the State Of New Jersey, by
which it is alleged. in substance. that
the company was organized for an UNI
lawful purpose; that the incOrpOrators or
the company consisted of firms and cor
porations. transacting the same Kind or
business i'm different states. as compeu-
tors. and entirely independent Of each
other. manufacturing and selling, among
other products. % per cent. Of the cigar
cites manufactured and sold I'm the United
States. that said firms and corporations,
for the purpose Of preventing competition
among themselves, and I'm order 10 OBTAIN
a monopoly Of the manufacture ana sale
OF this particular line Of goods, and TO ar
bitrarlly fix and maintain the prices of
tirit commodity. entered into an agree
ment to organize Il corporation 10 be
known as the American Tobacco Com
panv of which they should respectively
become stockholders. receiving full-paii
stock i'm payment for the purchase or
them by said company OF the property
used by each Of them In the business IN
which they were then engaged.
CHARGES OF CONSPIRACY.
Various other allegations are contained
in said comulaint. charging a conspiracy
and unlawful combination upon the part
of the original firms and corporations
which entered into the organization OF
the company i'm question. the object OF
which is alleged 10 be TO establish ana
uxa,tain an unlawful control OF the
manufacture and sale of said commonly
and 10 crush out competition.
In brief. the evidence and papers submit
ted 10 me are TO the effect that ~ per
cent. or over Of the cigarettes manuiac-
tured and sold i'm this and other states
are the rciuct Of the American Tobacco
Comranv. disposed of generally through
agents. whose profits are the commissions
allowed on the sales made by them, IN
other words. the wholesale dealer. job
her or whoever he may be that obtains
This commodity from the company for
the purpose Of commerce Is, with the
exceptions / have before stated, at once
turned into an agent of the company ana
subjected 20 it's direction and contfol as
20 the terms and manner IN when ne
shall dispose OF this particular line OF
goods. II is claimed upon the part or the
petitioner that the real object ana pur-
pose of this arrangement and method OF
doing business is TO compel jobbers ana
dealers to refrain from selling any cigar
cites except those manufactured by the
company. and that II they handle other
brands the company refuses 10 consign
any further goods 10 them, and that mas
much as the larger part Of the cigarettes
manufactured and sold are produced by
the factories of the company, such a
withdrawal results i'm great injury 10, it
not destruction Of. the business OF said
dealers Various affidavits nave been pre-
scented and dispositions Of witnesses have
been read tending 10 establish this claim
Of the petitioner
CONSIGNED TO AGENTS.
From The evidence submitted 10 me. the
Court would be authority in holding that
far the greater portion of the cigarettes
disposed Of in the State of New York
are the product Of this company, consign-
cd 10 sO-called agents and sold by them
under an arrangement express or i'm
piled that they shall handle the goods of
no ether manufacturer. The cOnsolida-
ton of the original firms and corpora
lions coz their constituent members into
one corporation necessarily terminates
any competition between them and the
sale OF goods by the aggregation. hav-
ing already substantial control OF the
market upon condition that the purchas-
crs shall not handle the goods OF any
ether firm or corporation. necessarily has
tendency To complete and continue a
monopoly Of the market as far as the
particular commodity is concerned
Evidence of this method of transactng
business would. in my judgment. be COM
petent to prove an original unlawful COM
binatiOn or scheme upon the part Of the
organizers of the corporation.
am OF the opinion that sufficient evil
dence has been produced upon the hear
Ing 10 authorize the commencement OF
an action 10 determine whether the
American Tobacco Company is not trans
acting his BUSINESS i'm the State OF New
York in an unlawful manner, I'm restraint
OF trade. and TO prohibit il from further