The sun. [volume] (New York [N.Y.]) 1833-1916, 1896-12-11
CIGARETTE TR UsT 70 WEIR.
Lawyer Thomas McCarter Dennen IL in th
.Ier,s- kutf

Jersey Suit.
Tho proceedings brought byAttorney-General
Stockton OF New Jersey In the Chancery Court
to dissolve the Cigarette Trust wero continued
yesterday before Vice Chancellor Reed in Jer-
sey City. Thomas N. McCarter, ST., who repre-
rents the Acknowledgement and John II. Miller,
upon whose application the action was begun,
concluded his argument about noon. He re-
ferred to the volumlnous testimony which has
been taken, and said that it establishes in tho
most satisfactory manner these conclusionsi
Before the comb nation was Effected the par
ties to it were the manufacturers OF nearly all
the leading brands OF cigarettes in the United
States. that they were in competition
with each other. and that such COMPETE
tion was keen and tended greatly 10 the
profit of the dealers and to tho benefit of the
customers. The dealers bought of whom they
chose. sold to whom they pleased, and at such
prices as they chose. and tho trade, which was
very extensive. was entirely free. regulated only
by tho demands of the market and by the
healthy competition. The purpose OF the COM
bination was to obtain the entire control of tho
trade, to suppress all competition, not only be-
tween the parties to It, but also OF oil outside of
it, and thus control tho price In the interest of
the combination. 1t has completely accom-
plished that purpose by means of the agree
ment OF Oct. II and the certificate of incor-
poration under the laws of New Jersey. By
that incorporation they acquired no power not
previously possessed except to carry their pur-
pose into effect. BY means OF the franchise
which It acquired under that certificate OF in
corporation II has acquired the control and
mastery over the cigarette trade in the United
States. The trade in cigarettes cannot be sue
c~essfuliy conducted without the product OF this
eombinRtion.a and so impossible has it become to
conduct that business without the goods OF the
combination that those who would not yield to
It's power could not do business, Such great
and important houses AS Park d. Tllford Of New
York and William Douiton 81 Co. OF Trenton
found themselves compelled to succumb to its
CURED a complete monopoly of the trado
at prices fixed by itself. ana which
which the National Cigarette and Tobacco
Company has been compelled to make to get
extent of their baneful influence and power.
he i has Pso sERSie'e sS.i destroyed " a / large Se,{ portion i sS of
for no other cause than dealing in the goods
of n rival concern; None OF this could have been
a6fSined bT nv w iseoTno Iae 1se ,1 OF N the franchise
1t is not to the credit OF tho state of New
corporation which, driven out of every other
sraie, may ron gone here to carry on It's destroying
rule of the law"
opened the argument for the defence. He de-
MED the authority OF the court to inquire and
Tobacco Company WAS organized for an un-
lawful purpose or In an unlawful manner.
said, ITO restrain the company from using
its franchises to stne competition in the bust
ness OF manufacturing paper cigarettes or TO
inture or destroy tho business OF the National
Cigarette and Tobacco Company. or that of
comp!a!nants or any jobbers or dealers who
may desire 10 become customers of or dealers
with the NatioLaI Company. The court is also
without Jurisdiction to restrain the American
Tobacco Company from refusing to sell the
cigarettes Which it manufactures to the COM
plAiuants."
Mr.. L.ndRbury denied that the American COM
pnny was organized illegally. II Is true that 10
has never established factories in this State. but
there Is no law requiring il to do SO. The com
pany has now and always has had an Office in
this state. He denied that any stock was issued
fraudulently or without consideration. and tho
proofs fail 20 show that the. company was
monopoly in the manufacture or sale of paper
cigarettes.
The argument will be continued to-day.