The news & observer., 1896-12-12
CHOATE DEFENDS TRUST.
PLANTS HIS CASE ON FREE
RIGHT OF COMPETITION"
Makes a Phiable Picture of the Ameri-
can Tobacco Company's Being
Pursued by Rivals.

New York, Dec 1.-THE defence of
the American Tobacco Company, which
was begun by II. " Lindabury before
Vice Chancellor Reed, in Jersey City
yesterday was continued when court
opened to-day. After occupying an hour
and half in endeayoring to show that
the Chancery court has not the power
to invaiidate the charter Of the company
he was followed by Joseph II. Choatc,
also counsel for the defence. In the
course of a speech Of three hours, Mr..
Choate said:
81 desire to plant his case on the fun
damental right of free competition. That
is the doctrine on which we stand. !
am aware that a great deal of abuse ex-
lists in the books against aggregrations
of capital We know that the bench Of
one State has been filled with Populists.
There are many judges not unmindful
of popular applause. We are now in
jurisdiction that for a century has been
renowned for it's impartial administra
ton Of justice"
Mr.. Choate read the fourteenth amend
ment to the Federal Constitution which
provides that no State shall make any
law abridging the privilege Of immunities
of any citizen of the United States.
In 1883 the National Cigarette and To
bacco Company was organized.
This company" said Mr.. Choate, SIS
the real complainant in this case. 1t
is one great competition. It's admirable
cigarettes are sold in every State and
country in the United States, and what
! money they don't expend in trying to
down us in the courts they divide among
their stockholders.
''They have pursued unfair and think
felonious methods in fighting our com
pany.
''They have falsely initiated our labels.
They have maliciously assailed us in the
! courts. They tried to get us indicted in
, New York before this case was decided
by your honor
'It is our right so long as our methods
are lawful and honest to get as much out
of the cigarette business as we can. to
make as much money as we can. That
is the object of business. They cannot
bring us into a court of equity to restrain
us from committing an indictable offence.
A court of equity cannot restrain the ex-
ercise of corporate functions"
Mr. Choate touched on the re-organiza-
tion of the company on January u, 1890
and the terms of the companies agree
ment with jobbers. The property of the
original companies was purchased by the
American Tobacco Company. The job
bers became the company's agents. Mr..
Choate continued: "There is no statute
Of New Jersey which limits the num-
Der of factories a corporation may buy.
There is 70 law of New Jersey forbid
ding the American Tobacco Company to
purchase all the tobacco factories in the
| United States.
Having acquired the business they
proceeded to deal with tobacco as they
had a right. They commenced business
in March, 1890. They made an agree
ment with the jobbers.
There are {, 1000 jobbers in the United
States. We have been able to reach
only 1000 That does not look much
like n monopoly
You can buy cigarettes to-day as
cheaply as before the organization of
the company and of a better quality"
Benjamin f. Einstein viii close for the
complainants