Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1895-11-19
AGAINST A TRUST.
Opinion Of the Attorney General
Of New York.
BIG TOBACCO COMBINE INVOLVED.

DfCI0f0yiOn
bissation In Restraint Of Trade and Com
petition and That . Suit May He Com
menced Agaicst the Same in New York
Judge Kicks hAnders Decislon Of Inter-
est to National banks.
SYRACUSE, n. Y, Nov. 19-Attorney
General Hancock has granted the applica-
tion Of c. A. Whclan & Co., Of this city,
for the commencement Of an action to Re-
strain the American Tobacco company
from doing business in this state and to
cancel its certificate Of authority. The at
| torney general in his statement reviewed
the evidence presented in the briefs that 30
per cent. Of the cigarettes made in the
United States are the product of the
| American Tobacco company, and are sold
under an arrangement by which the
Wholesale firms are called agents and al
lowed commissions for profits, and that if
they handle goods of any other make the
| company refuses to consign more goods to
them. Then he says:
Makes . Monopoly of the Market.
1.-The consolidation of the original firms
and corporations, or their constituent
Rembers into one corporation necessarily
| terminates any competition between them.
And the sale Of goods by the aggregation
having already substantial control of 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. If 1 understand
the position taken by the counsel for the
company, wholly disputing the charges
that the con my has adopted any such
method Of transacting business as have
indicated, they claim the right to impose
these conditions.
Operates Is q Restraint of Trade.
IA corporation doing business in this
state and having substantial control
| ought not to be permitted to impose rs n
general prerequisite upon the purchase Of
Its commodities-wheth- designated as
agents or nOt-that they shall obtain
goods from no other source. The enforce
ment Of such a condition must necessarily
operate as u restraint of trade and pre-
| vent competition. The purchaser who
| deals in the merchandise OF the corpora
ton enforcing the restriction is pre-
| vented from selling the wares of any
| other manufacturer, and on the other
| hand his customers must take the goods
furnished by the party exacting obedience
of the demand or go elsewere to make
| their purchases.
Purchaser q Party to the Scheme.
ITO carry such rule to its logical sc.
qucncc would enable the wealthy corpora
ton which has obtained q monopoly Of the
market to continue the monopoly and to
| drive out of business poorer and less fortu-
nate competitors. The purchaser under
1 rrxyn
really been made party to u scheme which
has tendency to give control Of the
| market to the exclusion of all competitors.
Such n method of transacting business is
against public policy, and would not re-
ccive the approval of the courts of the
statc in the case of domestic corporation.
Foreign Incorporation Is No bar.
"Why then should it then be permitted
| In foreign corporation? A certificate of
| authority to do business in this state is
| granted upon the understanding that
business will he such as may be carried on
by company Incorporated under our
laws and in accordance with the laws and
public policy of the state, and the foreign
corporation that has filed the proper pa
pers and received its certificate is accorded
the same but no greater rights than do
nestle corporation.
AUTHORITIES the ffifng OF suit.
| Il am of the opinion that sufficient evil
dence has been produced upon the hear
ing to authorize the commencement of an
action to determine whether the American
Tobacco company is not transacting its
business in the state of New York in an I'M
lawful manncr,in restraint Of trade, and to
prohibit it from further transaction of such
business. The application is granted, and
an action NAV be commenced upon filing
II bond sufficient in form and amount to
indemnify the people against the costs of
suits"
LIABILITY OF BANK STOCKHOLDERS,
Important Decision of q Case by United
| States Judge Kicks.
| CLEVELAND, Nov. 19--Judge Ricks Of
| the United States circuit court sitting at