New-York tribune., 1907-07-11
TOBACCO CASE OPENS.
TRUST RECEIVERS SOUGHT
Restraint of Trade and Illegal Com
bindtiOn CHARGED.

step II WHICH was IikeN yesterday morning hV
the fling in the United States Circuit Court of
the complaint against the American Tobacco Com
pany its officials and subsidiary corporations may
not be confined 10 civil PROCEEDINGS for the ap-
pointments Of receivers 10 abolish the nonopolies
which prevail in many industries in the United
States to-day.
The main struggle will be centered by the gov
eminent in its attempt to convince the courts that
the appointment of receivers for the though
adinltOed 10 he drastic measure. is the only
means by which the certain extinction of all
competition worthy OF the name in the powder
and tobacco and other fields under trust domina-
ton may be prevented. Though the proposition to
have receivers appointed perfectly solvent cor
poratons against the wish of their officars and
stockholders has never been tested IN the courts
before, II IS the contention OF the government Of
action.
In addition to the civil suits to have The various
uOsts restrained from engaging in interstate trade
n violation OF the federal laws. the government
may institute criminal proceedings against the
Ieins persons in the trusts who really respon-
sble for the organization of the for the
obtaining OF the monopoies which they exercise.
Conspiracy to restrain trade. as pointed by
James c McRey-nolds. special assistant the At
torney General is under the Sherman law n Grim
inal offence Mr. McReynolds said that the ques-
ton Of having James B. Duke and the other officers
and directors OF the trust indicted under this
charge had been considered by the department at
Washington. and this statement confirmed by
Attorney General Bonaparte at the capital last
night.
In anticipation of such against the in
div1dual defendants named in the complaint fled in
the court yesterday the department careful
TO waive the right 10 demand answers under oath.
Answers thus given would mean that the defend
ants would be immune from prosecution. II is felt
by government officials that clear Of fragrant
monopoly can be readily proved against the To-
bacco Trust without res1rting 10 such expedient
OTHER OFFICIALS NAMED
The other officials Of the American Tobacco
Company besides MT. Duke who may later in the
strusgfe between the government and the tobacco
trust have 10 face criminal prosecution are, as
named in the complaint filed yesterday. Percval
6. Hill and Caleb c. Dula. ice-presidents of the
American Tobacco Company; William X. Harris,
chairman Of the board Of managers OF the British
American Tobacco Company: John B. Cobb, presi-
dent Of the American Cigar Company; w & Reed
agent in the United States for the Imperial To-
bacco Company Of Great Britain; Williamson W.
Fuller. chief counsel OF the American Tobacco
Pierre Lorillard Anthony y. Brady, Peter A B.
Widener, Benjamin " Duke, Grant 3. Schey
George Arents, Robert B. Dula Paul Brown. ROB
ert D Lewis. George A. Hene, Thomas J. Aialo-
ney, Robert x Smith. George W. Watts George
c. Allen, William n. McAlister Herbert q. Kings
bury, H n. Hanna, Rufus :. Patterson. Frank II
Ray and Charles X. Strotz
The complaint was filed yesterday morning by
Henry L stimson. United States Attorney for this
district, and by NJ. NCReynolds. In addition 20
their signatures the bill are those Of Attorney
General BonapGrte, Milton .. Purdy. Assistant At
torney General, and Edwin o Grosvenor Special
Assistant Attorney General. MessTs. Purdy and
Grosyenor. with Mr.. McReynods have been esCe-
cay assigned TO the task OF ferreting out he real
workings OF the tobacco trust and discovering IFS
violations OF the antitrust laws
a copy Of the bill Of complaint was Immediately
served az the Offices Of the American Tobacco Com
paay and like service will he made t,pon au the
other corporate and individual defendants as early
possible. This will take sometime n aecon1-
pish. as The homes OF the officials and the Offices
q the corpora tons scattered all over the coun
Try The defendants will have until the first Mon
day IN August 10 file their answers TO the charges
"a lhe complaint Even If no demurrer be entered
by any of the defendants no extension OF time
N "Hlch TO answer be asked. IL s certain that II
WI! De Wen into the fall before the case Will come
Up Tor hearing, but II will occasion no SURPRISE II
me defendants ask for more time 10 answer he
complaint and then file demurrer 10 the entire
Just what course they viii pursue in .be ~asa
20 not been decided upon yesterday by the to-
nscc' people themselves. After being closeted for
IILe "ilIe With Junius Parker. associate coun-
SCI f'l the American Tobacco COMPANY Pr4siden.
DlKe mad the following statement sent out 20 the
We have not read the bill filed bv the govern
Iaehi against the American Tobacco COMPANY and
o.LeT corporations and Individuals For the last
;taf me federal Department OF Commerce has
-'lEesl! eating our affairs. and in that invest-
saon has been furnished every possible fac:I+,- h.
- me federal Department Of Justice has also
- tettd an inquiry into our affairs. This latter
Ies oeen by requiring witnesses. many OF our
oH4e@iS ana employees. 70 appear before the sue
'essINe FEDERAL grand uries IN New York and fed
IA grand jIries in other states. Since tho Su
f7Iae court gave legal sanction TO that method OF
4sHs-uon- more than a year ago. have Of
,eIec 10 obstacles whatsoever to the inquiry nm
nave co-operated with the counsel for The Rovern-
mem 10 the end that they might find out all that
our lawyers have constantly advised and SIN
.Eise- --at our existence business methods and
success do not involve any violation OF anv law
1io we ourselves know that they ara not a. iu{r,.
u menace. 10 any class Of the public-consuu1ers
" looacco. producers Of tobacco or investors orr
fsss f,t Is due TO our having served the public
better than anybody else
y IS expected that the return 10 the CITY TO-
-ay % W W Fuller, chief counsel for the com
LlLIy uere VIII be a conference. at which the
preliminary plans for the fight against +be po,aro
-i,HIS new antitrust policy will be outlined and a
-. +hce of the companys methods Of conducting
~ business viii be prepared for the p,blic Fa
-olo MT Dukes statement, the nearest thing 10 a
!@pT from the tobacco company TO the allegations
| - ne governments complaint brief state
-H"H' Ialding the British American Tobacco Com
80, as a powerful pioneer force in creating a
ll@rkft for American grown tobacco IN foreign
'oun'r.cs" "
HAVE MADE 4 GOOD MARKET
ne American grower Of tobacco. said this
stetenent a debt Of gratitude 70 the Fr,tisb-
te-lcan company for opening up the markets Of
- world 10 him. Forty million pounds Of tobacco
ln"h ~ this country, It is asserted are now
ltiit1eu annually 10 foreign countr.es-notabIv
fa-e :. tNlrica' India and AustralIa-whereas be
-''V lns organization OF the companv there was
Sech demand for American grown tobacco.
81 y-'ouI subsidiary and allied corporations Of
.'i@ american Tobacco Company are named In the
,-'i'alh' among them the Britis-Amerlcan To-
eocco Company Limited: the Imperial Tobacco
ANY Of Great Britain and Ireland Limited;
ne american snun Company. the American cigar
'Lilfaf1y. the American Stogie Company the p
--I"-afd Company. the r. J. Reynolds Tobacco
g. c'"Iaily, the s AnaTgyros. the United Cigar
.''offs Company, the MacAndrews & Forbes Com
9@Iy, me J. ;, Young Company. OF Baltimore; the
-1hIeg toi Company. the Manhattan Rriar Pipe
ohlpany, the International Cigar Machinery Com
pahy and the Florodora Tag Company
an OF the defendants. il is asserted are engaged
- - Interstate and foreign trade in tobacco and ar
les MANUFACTURED therefrom or useful therein
@lo are violating the provisions of the Sherman
- 49, ana acts Subsequently passed with view 10
inc regulation 4 the trust evil BY DESTROYING all
~, o. competition. the complaint asserts, a monop-