New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1895-11-19
THE TOBACCO TRUST BEATEN
aTTORN Y-GENERAL HANCOCK SAf'
IT'S METHODS ARE UNLAWFUL.

| Whelan & Co, Of syracuse. against the N"'-'''""
| Tobacco Company. proceeding preliminary 10 '''
! beginning of an action 10 prohibit the America"
| COMPANY from doing business In this state me AZ
torney General grants the petition of the p'ih,'"S
II IS generally believed that this Is hrst step III
Increment against the different trusts. ana th"'
| eventually the legality of the business IN sugar
leather etc. by the combined companies VIII be SUP
iec,ed 10 Ike review the courts. The effort OF the
Chicago gas combination to secure Incorporation IL
| this State is thus headed off Ii is dnders'oou !"
| Syracuse that Attorney General Hancock is acting
| in sympathy with Governor Mortons wishes. ana
that this decision against the Tobacco Trust is ony
| a beginning Attorney Gene raj Hancock III MS de
| csion. says:
| Application has been made to the AtoIney-Gen-
era TO begin an action in the name OF the people
| against the American Tobacco Company 10 OBTAIN a
judgment restraining the company rom ana 40 can
eel the cert fcate Of authority heretofore gianteI
10 the company authorizing ii to carry on pusih.s
| in the STATE Of New-York. 1t appears from tne
papers presented upon the hearing that the AMER
| can Tobacco Company is NeW'eennS isos NH a
cnDidI srock Of s ooOlo In the month Of peceinber
lsS2 the company fled in the proper ON III tIrS
c,o,o Sworn COM, OF articles III incorporation
and statement setting forth The business ana o."
jects Of the bs eerfcae in the ordinary fora
au:horizng the company to do business IN 'l, 80
Of NewYork An M a sin,e Of Sew in which
Il is alleged in substance that the =,
gained for an o1fhaiy consisted arms
and corporations transactng the SAM h % entire
ness n of each other manufacturing ana
selling among other products )" per n thn United
States: that said firms and corporations, o hem !
purpose % IN order 70 obtain monopoly of the
manufacture and sale OF TINS PAW tho prices
69od hs ana commodty enterei to
organize corporation 10 I've ~ should respcc-
fn Y hecome sio khoders receiving fun pad s.0ok
pah~ of the property used by each Of then IN '
business in which they were Ine comnanv appears
90 hsve been 10 constitute the dealers hanII,rs d
selling he for the disposal Of that particular
commodity and TO issue TO lis on
are designated as selling lists TIE those sang
with It provides in substance among noa,nrfacnfei
hat cigarettes Of the various brands deajer and
by the company are TO b" sent 70 M hs hat The
reods are not to be held lower prices man
fixed By the company. the draI"r 10 rnmain the
nropery Of the corporation until sold by ne Geai
Commissions for selling ana ex," ~. les. than 81 %
PEI, le ,b ocondltIons herein contained and sAaI
Sooperate with the cqmpany ana prom9isg Ell
rests and handle Its cgaictiTs 10 H. naragraph
i2b n he asrsemen it further stppeted nat
i the eHpSa as directly or indirectly sold cigarettes
at lower than the fixed prices or MAJ nov r he other
w rdHs ne of the agreement the company sna.
have the right 10 deieTmne "a, an Contributions var
0ea'er b ma condons are contained in the consisn
pen !: aSss p1ovd EafR ha pef
han lie the goods OF the company does no, ra,e
viii sell him cigarettes at list prices net w'ne eX
cent for freight appears TO be the faet tnSt WIN
the exception Of certain, GheaPerI sa to se directly
!" dealers but has disposed of tnls line OF soou5S
through its agents apPoln'Sea IN the "'N''''' anu
ui2 In b ae the evidence ana submitted 70 me
Sigarettes manufactured and sold in ths anG otner
the pr9duct OF tns fhToagh agents
u6nss profits are he commissions allowed on me
sales made by theM IN 1tn S mSv be- thai Obtains
this commodity from the company loi Hr M GhtP( oT
stated nj once turned into an agent OF the company
and subjected direction and control a. 70 ~, ~
naricuar line Of goods 1t Is claimed upon the part
OF the petitioner that the fsa oDge Gn ' buspess -
TO compel jobbers and dealers TO refal rom nv ,h
companv and that If they handle other brands me
company refuses to consign any TURNER sop'S t
~ The Cigarettes manufactured and sold are pro
duced by the factories OF the COMPANY; sueh Miun
ton Of the business OF said dealers. arlouS a.,
NSavits have been presented and dispositions OF Wit
nesses have been read tending to establish inns .
claim Of the petitioner. ,..., -. $50 .hs oo,r.
would be authorized in holding lhat far the Larger
portion Of the o his 81 nompany con-
signed so-calied asens ana i3l BY ths,n ui h
handle the goods of no other manufacturer ne /
consolidation of the original firms and corpoIauoons
or their constituent members into one corporation
necessarily terminates any
them and the sale al EIOG Control of ts mark
upon condition that the purchasers shall not hamae
sarily has a tendency to complete and continue
monopoly Of the market as far as me parb eh@G
of transactng business would IN M ,udsnT ee
Ion or scheme upon the part Of the organizers oil
If Correctly understand the position taken by me
learned counsel for the company. While disputns
the charges that the Officers OF the company nav
! have indicated. they claim the right 10 impose D
s 10 the facts Of ills case In my judg
ment. a corporation doing business N TINS Htalr
not 10 permitted TO impose as general provision
upon the purch,sers OF rs ,Sl1 nSiaa
roods from no other source. The enforcement ~ .
sYcb condiiicu must necessarily operate re
straint OF trade AMI prevent competition; Inc .
purchaser who deals IN inc merchandise 81 nc cor
poreton enforcing The restriction Is prevented from
selling the wares OF any other manufacturer and. .
on the other haid. his customer. must TAX me .
the demand or go elsewhere TO make helr pur
quence would enable the wealthy corporation which +
Ia oh. aimed monopoly OF the market. to continue
;ess fortunate competitors The purchaser under
such an arraneemsnt ana conafac, has rea.y ben
20 give control Of the market TO the vendor to he
II transactng business under tho circumstances
disclosed Is against pubic policy. ana voud not
caeo Of q domestic corporation. Why. then shoull .
il be permitted IN foreign corporation? - cor
granted upon the understanding tina, the business
be Such may De carried on 10y COMPANY
Incorporated under our laws. ana in accordance with
the avs and nIbic policy Of the state ami the for
egn CORPORATION that has filed the proper papers
and received certificate accorded the same. but
no greater rights than domestic corporation
Ample authority has been conferred unon OFT
courts to supervise and keep within the lines OF
law cornoraf!ons organized in pursuance Of the
statutes Of the State OF New-fork. They NAV be
restrained from transactng business not authorized
by their articles o. incorporation or from exercs-
ing any franchise liberty or privilege not author
.zed by law TIL, courts may arnul The corporate
existence Of a cOrpo alton which trarsacts an
illegal business or !mpose condition Of frr
Their existence n discontiHuance of Illegal methods.
| have doubt that they have sufficient jur.dc
ton a foreign CORPORATION to restrain IL from
transactlng Illegal business OF from pursuing