The news & observer., 1896-12-11
AMERICAN TOBACCO SUIT
ooMpLAiNANTs' COUNSEL sU5
MlTS HIS ARGUMENT.
In Reply, is Tainted With SIur at the
Name Of RItgeid or Lack of
Better Defence.

New York, Dec. 10.-The American
Tobacco Company to-day denied the pow
en- of the New Jersey Ga8;.cg.y court -
restrain its operation. Counsellor Richard
n. Lindabury argued before EiceChau.
cellor Raed, in the Jersey City Chancery
chambers, that the suit Of john Il. Miller
end Sons, in the Attorney General nam",
to restrain the American Tobacco Com
pany, should have been brought III o
court Of law and not in the court of
equity.
Thomas n. MeCarter completed his
opening argument for the complainant
when the hearing was resumed to-day.
He said the trust had killed competition
in the manufacture of cigarettes. Before
the combination the parties to it We're
competitors. The competition tended 10
the benefit Of the dealers and the bene
fit of the consumers. The trade was re-
gulated by demands Of the market. The
evidence taken in this case established
that by means of the certificates Of IN
corporation the combination had acquired
control over the cigarette trade in the
United States THAT the trade in cigarettes
cannot be successfully conducted without
the goods OF the combination That
those who would not yield to It's power
could not do business, and important
houses found themselves compelled TO
succumb to it's influence and power
1t has already acquired for itself, he
argued, a complete monopoly of the
whole trade, at prices fixed by itself
and which admit Of no deviation. and the
desperate struggle which the National
Cigarette and Tobacco Company has
been compelled to make to get the least
f0Othold in the market shows the extent
OF the baneful influences and power
and it has completely destroyed a large
portion Of the business of j II. Miller
q Sons for no other cause than dealing
in the goods of a rival concern, none of
which could have been accomplished
without the use Of the franchise of in
corporation in New Jersey.
1t is not to the credit OF the State Of
New Jersey, said the counsel, that she
should become the foster-mother of every
corporation, which, driven out Of every
other State, may come here to carry on its
destroying business. The court ought not
to hesitate for a moment to bring these
corporations under the rule of the law.
Mr.. Lindabury, in his opening address
said If the opinions of the Attorney
General Of Governor Altgeld, Of Illinois,
favored the complainants, the defend
ants had judicial decisions on their side.
Mr.. McCarter thought the weight Of
the decisions the other way and said:
The President Of the United States
has called attention to monopolies as one
of the crying evils Of the day"
Mr.. Lindabury argued at length against
the Chaneery Courts jurisdiction. The
chancellor had ruled that he Chancery
Court could not look beyond regularity
of organization. The complainants ask
ed for a perpetual injunction restraining
the company from exercising it's fran
chise 1t is stated that court of Chan
Gerry is entitled without jurisdiction to
do that. The remedy is by quo war
ranto. The Chancery Court cannot de-
termine the validity Of a corporation
regularly formed.
He declared that the company now has |
and always has had an Office in that
State; that the company has always
done all that part Of the business in
the State Of New Jersey that the law
required to be done; that 10 part of tne
capital stock was issued either franlu- /
lently or without consideration.