The daily morning journal and courier., 1906-06-19
TOBACCO MEN INDICTED
BENCH WARRANTS ISSUED FOR
 MEN NAMED IN THEM.

Antl-Trust Law--Federal Grand Jury
 in New York Has Been for Several
 Months Investigating Matter.
 New York, June 1S.-The federal grand jury handed to Judge Lacombe in the United States court to-day, sev- eral indictments, and bench warrants were issued for the men named in them. United States Commissioner Shields, clerk of the court, refused to make public the names until the men could be arraigned in court, but 1t was learn ed on apparently good authority that the indictments were for two tobacco companies and an officer of each.
 The indictments charge that the per- sons named have violated the antitrust law in actions involving restraint of trade.
 For several months the federal grand jury, with Henry W. Taft as it's special adviser, has been Investigating the con- duct of the American Tobacco compa- ny, called the Tobacco trust, and its satellites.
 After a conference between the att torneys for the defendants and Messrs. Taft and Levy it was agreed that Messrs. Jungbluth and Young should appear on Wednesday and give bail in $5O00 each.
 Complaints which led to the investi- gation were made to the government by independent tobacco manufacturers that the McAndrews & Forbes company and the John s. Young company had entered into an illegal combination to control in this country the sale of lic- orice paste. Without this commodity the independent plug tobacco manu- lecturers were unable to continue in business.
 The indictment returned to-day charged that the accused knowingly engaged, and conspired in combination in restraint of trade and commerce, de- stroying competition and maintaining arbitrary and non-competitiye prices in the sale of licorice paste. It further 
 D. Lewis, of Providence, and the Weav- CT & Sterry company, of New York, competitors, to establish and maintain nol- competitive prices greatly in ex- cess of prices which would have pre- vailed if the alleged conspiracy had not been formulated.
 The indictment charges that divis- ion or apportionment of the trade to customers was made. Nine-tenths of the licorice paste sold, 1t is alleged, was furnished by the McAndrews & Forbes company to the so-called tobacco trust, and the remaining one-tenth to the in- dependent trade. The indictment chargs also that the J. s. Young company en- tered into an agreement with John D. Lewis, of Providence, whereby the lat ter was to be allowed a profit of one cent a pound upon all licorice paste sold by him during 1904 to the amount of one million pounds, and that he should supply his independent trade with 9OO,Oo0 pounds. The J. S. Young company was to allow him the same margin of profit on the remaining one hundred thousand pounds, and also granted him the right to increase his sales fifty thousand pounds each year for period of five years, the life of the contract,
 The indictment contains long series of correspondence signed by the accused both as corporations and individuals all showing a control of the licoriee paste market and a constantly increas- ing price to be charged to the independ- ent manufacturers. Letters to some of the independent manufacturers show a | refusal to fill orders, in one instance 8 demand for 200 cases being sealed down to fifty.