The Montgomery advertiser., 1906-06-19
TOBACCO TRUST
SEVERAL OFFICIALS AND COMPA-
 MES ARE INDICTED.
Alleged that Manufacturers of Licorfce Paste Entered Into an Agree
 n,ent to Choke Independent
 Dealers in Fragrant Weed.

New York, June 1S.--The Federal grand jury today handed down an in dictment charging the McAndrew and Forbes Company, the John s. Young Company of Baltimore and the presi' dents of the two corporations, Car Jungbiuth and Howard F.. Young, with violation of the Sherman anti-trust law. The indictment is the. result oi an Investigation into the so-called to- facco trust commenced by the Federal grand jury in May. 1905.
 Bench warrants for the accused de- fsndauts were issued soon after the re- port Of the grand jury was mads. Complaints which led to the inves- tigation were made to the Govern ment by independent tobacco manu- lecturers that the McAndrews Forbes Company and the John s. Young Com pany had entered into an illegal com bfnation to control in this country the sale of licorice paste. Without this commodity. the independent plug to- bacco manufacturers would be unable to continue in business.
 It is alleged that the John s. Young Company of Baltimore under the agreement supplied the independent manufacturers with paste at prices fix ed by the trust and that the subsidiary corporations of the combinations. the Continental Tobacco " Company, the American Tobacco Company, the Amer ican snuff Company. P. Lorillard Com pany and the R. J. Reynolds. Tobacco Company were supplied by the Mo- Andrews and Forbes Company.
 As result of the complainants, Henry w. Taft, a brother of Secretary
 Taft of the War Department. Felix H
 Ivey, T. H. Grosvenor of New York and E. H. Hill of Boston. were appointed special attorneys general of the de- n r Af frfS tn p0n6nct in- vestigation and later the United States Supreme Court sustained every con- tention of the government.
 The indictment returned today first charges that the accased knowingly engaged in a combination in the re- | striction of trade and commerce, de- | stroying competition and maintaining arbitrary and non-competitive prices Tn the sale of licorice paste. The indict- ment further alleges that the accused | induced, John D. Lewis of Providence | and the Weaver and Storey Company, ] competitors, to establish and maintain | non-competitive prices greatly Tn ex- | cess of prices which would have pre-
 vailed If the alleged conspiracy had | not been formulated.
 The indictment charges that divi' sion or apportionment of the trade ano | customers was made. Nine-tentns ol the Iicorice paste sold. 1t is alleged | was IuTn1SneO Dy tHS
 Forbes Company to the so-called to-
 bacco trust and the remaining one
 tenth to the independent trade. The
 indictment charges also that the Johr
 S. Young Company entered into ar
 agreement with John Lewis Of I'rovi
 dence. whereby the latter was to bt
 allowed a profit of one cent pounc
 upon all licorice paste sold by hln
 during 1904 to the amount of one mill
 ion hounds and that he should supply
 his independent trade with SOO'OO'
 pounds.
 The John s. Young Company was t.
 allow him the same margin of profit ol
 the remaining 100000 pounds and als
 granted him the right to increase hl
 sales 50,000 pounds each year for pc
 riod of five years, the life of the con
 tract. The contract of J. s. Young Com
 pany with the McAndrews and Forbe
 Company contained a similar provision
 in regard to the sale of 10000 cases 0
 25O pounds each, 1t being understoo
 that if but 19,000 cases were sold pc
 annum, that McAndrews and Forbe
 Company will allow profit of fou
 dollars per case on the unsold one thou
 sand cases. All of the subsidiary cor
 porations agreed to maintain sue
 prices as the McAndrews and Forbe
 Company might dictate. The John I
 Lewis Company agreed to buy its lico
 rice root from the J. s. Young Com
 pany at certain stated price.