The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1896-12-09
TRUST CASE.
Eminent Lawyers Submit Argu-
ments in Chaneery This
Morning The States
Case.

Vice Chancellor Reed heard arguments
this morning in the famous case of the
Attorney General, at the relation OF
John r. Miller and Frank W. Miller,
against the American Tobacco Company.
host of distinguished lawyers, such as
Joseph H. Choate of New York, Thomas
N. McCarter of Newark, Richard v.
Lindabury of Elizabeth, w. w. Fuller
and others, were present. The fight is
over cigarettes and the chief aim is to
break the Cigarette Trust. It was begun
some years ago and eminent men like the
present Vice GhanceIlors Pitney, Emery
and Stevens, have been concerned in ii
as counsel.
This morning on presenting his brief
Tor the Attorney General Mr. Thomas
McCarter said that for many years past
II mas been the custom in the tobacco
traue for manufacturers to sell to Job
bers. who are so numerous that it would
oe practicaily impossible for the manu-
facturers to deal directly with them.
Until the trust was formed jobbers were
IN the napit of purchasing from the vari-
Gus manufacturers such brands of paper
cigarettes as they saw fit, the price being
regulated by fair competition and pur-
chased from such manufacturers as they
Pleased and thus they became necessary
agency IN the conduct of such business
Before the American Tobacco Company.
counsel said, was formed, manufacturers
We're accustomed to sell cigarettes to
Joppers at prices determined by laws of
/ tboanpetltion tbn and trade. Since, however,
the company was formed neither it nor
other corporations would make any sale
10 JoDberS unless they entered into an
agreement, the principal clause of which
The selling prices are at all times 70
pc such as the company may fix in its
seiling list sent with the goods and no
SAFES TO be made by the consignee at
loWer prices than those so fixed Com
missions for selling and for all expenses
incurred by the consignee in connection
WIN the business will be 35 cents Der
thousand on all cigarettes sold at not less
eiiah sz.oo per thousand, provided the con
signee 5isi , shall comply with these CON
Mr, McCarter then proceeded to relate
N me history OF the National Cigarette and
Lobdcco Company and the loss to the ioh-
a1rs 9,,s.;ay oy reason @ OF the threats of the
slgnments, all of which facts have repeat-
edly been related in these columns.
counsel contended thet the action Of the
taimerlcan "a u, Tohacco Company was to main
tam monopoly of the trade In cigarettes
and 70 crush out the National Cigarette
ana Tobacco Company, or any other rfval
VINO mas endeavored to put cigarettes on
lne market IN competition with the trust,
cf the act
Mr. McCorter contended that the Amert-
can Tobacco Company was never legally
organized because the incorporators, Allen
q tiinter, w. Duke, Sons & Co., Kenney
Tobacce Company and Goodwin & Com
pany, who formed the corporation never
intended to and never did carry on the
business for which it claimed to be or
san1zed IN New Jersey, and If that is es-
tabiished as a matter of fact it follows
that such attempted organization was IL
legal, and it has no claim to continue to
exercise franchises illegally usurped
-.
fore the midday adjournment. His an
sWer in the first paragraph denied that
the trust was formed to crush out others
and control the sale of cigarettes. The
question of Incorporation and the powers
OF the company were set forth at much
length when recess was taken.