The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1900-04-03
Guthrie Says it Seeks
! IF Sjmonton in Form
ing an illegal Com
bjnatiOn.
TO TRUSTS
BILL OF COMPLAIN
Mighty Interesting Reading
ont Some Rather Shady Things
hat Have Been Happening.
OF The FORMATION OF
THE AMERICAN TOBACCO COMPANY

@ Et hMERlC@N So"' wv
T. Constitution Vests in the General AS
H. Alone the Power to Repeal the
fbsfter ef Private Business Corpora
u tim and 10 Provide For the Man
Il ner in Which its Business
Should be Wound Up.
H. answer Of Major VIM. y. Guth-
IN the Biacllwell's Durham d
Company suit was filed here yes
A. in the office Of the clerk or the
f4cd States Circuit court.
81 is Il suit, it will be remember
by officers. directors and
&1oye% Of the American Tobacco
muany. who are also large stock
Iders in the Blackwell Company, to
" a receiver appointed for the
1fi,yell Company and close up ITS
giness.
~ suit is brought against Black
1rs Durham Tobacco Company and
minority stockholders in it, and is
sed on an interview with Maj. VIM.
Gutlrie. II of the minority stock
hers. Published in the News and
8eryer some months ago. In this
Major Guthrie declared his
fcsltion to ask the Legislature to re-
lA the charter Of the Blackwell
1mrany on the ground that it was q
As soon as the interview appeared
III president. vice-president, secreta-
treasurer and several directors ano
aploves of the American Tobacco
ia p1ny went before Judge SimonJo1
"a hHrleStOn and asked that Il re-
Ne be appointed. The petition was
s1 ted and =. S. Hill. secretary OF
u american Tobacco Company, was
nned as temporary receiver, and
hi nth at Charleston a fsc,
#the time for hearing argument as
whether the appointment OF the re
ker should be made permanent.
IN the papers filed yesterday MaJo1
Mhric makes answer only for him
II and bases his defense on the fol
Wing grounds:
That the court has no jurisdic
III.
2. That if it had Jurisdiction it ough
II to grant the relief for the reason
I'M the plaintiffs have come into cour
stuated by an improper and illega
b pose on their part: To merge th'
1ac kwell Durham Tobacco Compan,
I'LL the American Tobacco COmpan,
/ crder to create a monopoly in tn
noking tobacco business. in violation
- Constitution of North Carolin;
nd contrary TO the genius of a FREE
s. That Blackwell's Durham Tobac
08 Company being Il solvent goins
.0rpOration. chartered under the law
Month Carolina, the only cOmpeten
to repeal the charter. dis
0lte the corporation and wind up it
il vested in the General As
Of North Carolina under Arti
le VIII, section l, Of the State Con
In the answer these contentious ar
MIA r2ed on at length. and to ther
5 added a history Of the formation O
he American Tobacco Company
how ii vas originally organ
Ized in 1890 under the corporatio
avs of New Jersey and how it Ia
that time combined, consoiidat
q and merged into the American Tt
'acco Company about thirty other COZ
,~oratlons, partnerships and individu;
Germs engaged in the manufactuT
lIs cigarettes, smoking tobacco, plu
ODE Geo and c~heroots. thereby monol
llhE ng the manufacture Of Tobacco,
@ arbitrarily the prices Of til
L1a lu factured products and wipin
3Hf competition among the manufa,
NE III the purchase of leaf tObacc
- the INJURY of the farmers who Or,
nc the leaf tobacco. and without an
sor CORRESPONDING benefit to the consun
80 - JIOttuCtS
"a he substance OF the answer in q,
Ell is as follows:
Admits that B~laCkwell's Durham =.
- Company is a North Carolina CO
g 800, and that this defendant. VIM.
'1lt ID lie. is a resident Of the State.
& ADMITS that the compliments a
te$' Aoi4ers Of stock in Blackwell's Du
IT 1oD"tco Company; but the defenda
mat the compliments are also of
III the American Tobacco Coc,par
a. iolo"a; j. b. Duke, president a
"a '11'. j. b. Cobb, first vice preside
~ '"'ellcr; w. r. Harris, second vic
- =. s. Hill, secretary; Geor
~ treasurer and director; w.
VI general counsel and director; J..
ana !. 7. Wilcox, employees in t
- "lhceS OF the American Tohac
coiarauy.
N@l these cCmplainants are no. I
ui"Ve owners Of the sto4k in Biac
% Dufham Tobacco Company, in tn
+IEhl, but hold the shares in tr,
or Tor the benefit o.. the Americ
D'leo Company; that the Amer;o