The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-11-04
SUIT AGAINST BANANA TRUST.
A RIVAL COMPANY ASKS FOR
$4,000 900 DAMAGES.

W
In a suit against the United Fruit Com
pany fled yesterday in the United States
Circuit Court the American Banana Com
pany, an Alabama corporation, alleges that
he defendant company has secured a
monopoly Of the banana trade by unfair
uIsthods. asks indirectly that the boundary
dispute between Panama and Costa Rica
he settled and demands g., 900, 600 damages.
The plaintiff corporation alleges that
the defendant corporation was organized
on March 30, 1890, by consolidating twelve
large concerns and a number of individuals
who had previously been engaged in active
competition for the banana trade. Four
Of these concerns imported bananas from
he West Indies, while the others dealt
only in Central and South American prod
uCts.
The purpose of this consolidation, il is
alleged, was to secure a monopoly of the
banana trade and regulate the supply and
prices of bananas imported into this
country. The capital OF the defendant
corporation is said to be So, 600, 900. OF
his sll 900, 900 was actually subs bed,
andthis amount was subsequently increased
to SIS. 49,. 900.
In 1899 and 1900, it is alleged, the de-
fendant bought out "A number OF COM
~oetitors and extracted from them the
promise not to engage in the banana trade
again. These concerns included the Belize
Royal Mail and Steamship Company, S.
Oteri, John 3. Woods. the Snyder Banana
company, the Boston Fruit Company, the
american Fruit Company, the Quaker
'ity Fruit Company and others. BY this
means, it is alleged, competition in the
panana trade was killed and the defendant
secured a monopoly.
In consequence OF this monopoly, il is
further charged, the West India Fruit
company, the Monumental Fruit Company
and Berger & Son vent out Of business,
while the Eureka Banana and DEVELOPMENT
Company failed and was bought by the
defendant.
1t is further alleged that during 1899
the defendant made contracts with most
Of the firms still in the business regulating
prices and the amount of bananas to be i'm
ported by each. n that later the Fruit
Dispatch Company was organized, which
was to act as the selling agent of all the
concerns in the agreement and sell at a
fixed price. The stock of this concern.
the complaint says, is held by the defendant
corporation.
1t is further alleged that the defendant
entered into similar agreements regarding
the amount and price of bananas to be i'm
ported with a number Of other fruit con-
Germs that did not enter the Fruit Dispatch
agreement.
TIT chief competitor left, Comas Il Nc
Connell, the complaint alleges, was o
40 reduced that it agreed to a ~reorganiza-
ton whereby Andrew w. Preston, an officer
Of the defendant company. was to hold one
share more than half the stock Of the con-
Germ and TO have power to elect three OF
the five directors. Later the Fruit Dis
patch Company was made the exclusive
selling agent of the new Comas-McConnell
Company.
BY these means, it is asserted, and by
making long time contracts with banana
firms in the United States a complete mon
opoly was gained and all competition killed.
In the spring OF 1904. it is charged, and in
direct violation OF United States statutes,
the defendant tried to induce the Republic
Of Panama to grant it exclusive shipping
privileges in the ~Changuinola and Sixola
A year EARL er, it is alleged, Herbert
T.. Mcconnell started a banana plantation
along the banks of the Sixola River and
in conformity with the laws of Colombia.
He also began the construction of a railway
TO the seaport of Gadocan. IL is also set
forth hat Gov. Duran of the Department
Of Panama for the United States Of Colom-
bia granted to one Romero the concession
for a railway from the Sixola River to
Gadocan, which concession efter being
> approved by the Colombian Congress
was transferred by Romero Ia Mcconnell.
On June %, 1853, Gov. Duran, il is alleged.
recommended to his Government that
Costa RIGA, which also claimed the terri
tory through which this railway was to
be allowed to administer the laws
here. Soon afterward, it is stated, he
resigned his GovGnorship and became
an attorney for the defendant company.
The most startling accusation made by
the plaintiff is to the effect that the de-
PENDANT induced the government Of Costa
Rica TO send soldiers to seize n. L.. Neon
nell's plantation. The soldiers were with
drawn in three months. Mcconnell then
rold the plantation to the plaintiff and six.
later, in July, 1904, more Costa
Rican soldiers seized the place and hold it
10 this day. They also hold a shipload of
supplies they seized and have stopped all
work on the railway. !
II is further alleged that in 1900 the Costa /
Government awarded the plantation
10 Jose Aguilar, its Secretary Of Foreign
Relations, the title being confirmed by the
Aguilar then transferred the plan
tation to c. X. Minor, An agent for the de-
PENDANT.
The plaintiff states that it expended S4SO.-
20 on the plantation, which came into
full bearing in October, 1906 that the fruit
on the trees, az plaintiff is not allowed
10 ship it, while at the same timeit has to
aforce OF men to keep the planta-
ton in shape.
Had It not been for this opposition, the
complaint declares, the plaintiff would ave
cleared te4 500 a month, from October, 1905.
IL is also declared that il has suffered in
the seizure of the railway right Of way. In
view Of these things the 81, 900 900 damages
are asked for through Wheeler, Curtis a
Haight, the plaintiffs lawyers.
The reply 10 these charges, which was
alsO filed yesterday, admits the statements
~ to the defendants incorporation and
capitalization, and the failure Of the CON-
Germs mentioned, but denies any resp nsibil-
ity in the matter. 1t also denies that any
were made In restraint Of trade
or that a promise was extracted from the
bought out that they would not
engage in the banana trade again.
The answer admits that Mcconnell made
q plantation along the SixOla River, but
AYERS that Mcdonald had no right Al IN