The Norfolk Virginian. [volume] (Norfolk, Va.) 186?-189?, 1897-03-13
TOBACCO TRUST MINIS
The Suit Brought in New Jersey 10 Annu|
Its Charter Dismissed.
EQUITY COURT HAS NO JURISDICTION
Proceedings N hnnn; ShOuld Have
Hecn nj Common lnw--'Thc Suit
Arose over the Iscit,Sni ot Trtrat 70
Sell to Htnintins. Because they
IInndlcd Admiral Cigarettes.

Trenton, y. j., March 12.-In the suit
brought to arnul the charter OF the
American Tobacco company and break
up what is known as the tobacco trust,
Nice-C Chancellor Reed this morning
filed All opinion disnlissing the bill and
ending the present litigation against The
company. In the language Of the Vice
Chancellor the action was brOugh. ito
restrain the defendants from transact
ing their business and from conducting
it In Il manner prcjudicial To the coin-
plainants ana injurious to the people Of
the State of New Jersey"
OBJECTED TO THE ADMIRAL.
The bin was fled by Attorney General
Stockton on The petition Of John X. and
Frank w. Miller. jobbers in paper cigar
cites. With whom the American Tobacco
company refused to deal. according to
he allegation uf The Miilers. because
they persisted i'll also handling <the
admiral cigarette, manufactured by
q rival corporations
Among other things the bill fled set
out that for many years prior 10 Jan
uary 2l. 1850. the manufacturers conl-
posing the american Tobacco company
transacted business inlcpendently Of
each other. The trust was then formed.
being composed Of William s. kimi,all
ana James y. Hart. under The ,irnl
name nt w. >. Nimball & 90, OF Rnvh-
ester: Charles q. Emery under the firm,
name Of Goodwin & Co, Of New York
Allen & Gintor, of Virginia: w Duke
x Sons company. OF North Carolina.
and the Kinney Tohncco company. OF
New York. The capital stock was Sa5-
000,0Oo ana they have hecn selling 95 Iicr
cent. OF all the cigarettes sold III t4,c
country.
The conlpainants alleged that soon
! - : n, f1,..,-
cigarettes they received n conlnunit.a-
ton from the American Tobacco com
pany, which expressed their displca SIRE.
This was followed by Il refusal Of The
American Tobacco company 10 sell them
more goods
COURT HAS NO JURISDICTION.
Vice Chancellor Reed holds that ,hc
Equity Court has no jurisdictions; tha,
the proceedings should have been
brought in the nature Of QUO warranto
and that corporations have a right
when legally formed. 10 deal the Same as
individuals. The points raised By The
comp.ainantS and Vice Chancellor
Reeds full views may be inferred from
the following syllabus which he has at
tached TO the decision:
IA Court Of Equity does not possess
the power 10 restrain Il corporation or
ganiZed under the forms OF law from,
performing acts within its corporate
poWer, merely because some OF the
steps taken in organizing the company
may have been Irregular or because the
purpose OF the incorporators may have
been 10 establish q monopoly.
2-Undcr these conditions quo war
ranto is the proper proceeding to chal-
lenge the right OF the corporation to
exercise its franchise
81 trading or manufacturing cor
poration, until its charter is annuIled
Dy such a preceding at law, has tho
same authority as an individual trader
or manufactures to sell or consign It's
goods, to select its selling agents and
to impose conditions as to whom they
shall sell and The terms upon which
they shall sell.
4-A decree restraining The officers
ana agents of n corporation from exc
cutting corporate acts Is the same as n
decree enioinnS the corporation itself.
r. a. l.indabury. OF Elizabeth. ana
Joseph Choate, of New York conducted
the case for the American Tobacco com
pany.