The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1907-07-11

tic tobacco. estimated at sOO.Oo0.O00 pounds.
20 per cent is purchased by the Ameri-
can Iooacco company and its associates
and allies at prices which the govern
ment alleges to be unlawfully influenced
by the combination. 1t is said that this
is in defiance of the usual laws of trade
where open competition by many separate
and independent concerns control the
prices.
The petition continues:
The American Tobacco company of
New Jersey, organized in 1890, with S25,-
O00,OO0 capital took over the business of
Allen K Ginter of Richmond. Va; w
Duke Sons & Co. of North Carolina: Kim
ney Tobacco company; w. s. Kimball &
Co., and Goodwin & Co. of New York.
and thereby acquired control of the man
ufacture. trade and commerce in cigar
cites. 1t was Immediately successful and
shortly after its formation the interested
parties began to extend its operations
and with others united from time to time
have steadily sought through it to acquire
dominant power and monopolize the diff
ferent branches of the tobacco industry.
This company has the principal agency
through which the designs Of the combi-
nation have been accomplished, but many
different corporations have been organ
lied, the control of many others has been
secured, and in various ways these have
been manipulated and utilized
How Combine Works.
The operations of the monopoly, accord
ing TO the petition, have been along this
general plan: To acquire through other
confederated companies the business of
successful opponents, taking from owners
and managers and thereafter to engage
in the tobacco business; to drive out
other companies by destructive competi-
ton; to deter any who might wish TO en-
gage in the tobacco trade; and, finally,
to gain control of the agencies through
which the tobacco products were distrib-
uted.
1t is said these things have been accom-
plished by means of the increasing pow
er and forces of the combination and by
acquiring controlling interests in the stock
of corporations thereafter operating with
out competition. Many kinds of unfair
trade methods have been Tesorted to, il Is
said, a favOrite one being to cause a cor
pOrdtiOn secretly controlled to advertise
itself as wholly Independent and free from
association with their associates and COM
binations, to offer its goods below cost, to
initiate competing brands, and in these
ways to use the same for the destruction
of real Independents.
After reciting the bitter trade war be-
tween American and English concerns,
the petition shows how the combinations
in these countries, WeaTying of cOmpeti-
ton, in 1902, entered into written agree
ments each not to Interfere with the other
among certain well defined lines and to-
gether forming the Imperial Tobacco COM
pany, to carry on the trade and commerce
in other companies without competition
The government declares that this divi-
strictly observed and the three companies
with their allies and associates have all
been operated in harmony.
An interesting chapter Of the petition is
devoted to methods of distribution of to-
baccO products The American Tobacco
company in 1901. the petition states. Sc
cretly acquired control of the United CT
gar Stores company (fOr a long time
thereafter denied) and through its retail
tobacco stores are established in the large
cities which by reason of the powerful
support and influence of the combination
have quickly secured a dominating posi-
ton in the trade and are destroying COM
petition
The Individual Defendants.
A great feature of the complaint today
is its waiver of the right of demanding
answers under oath from corporation
and individuals named as defendants, as
the making of such answer under oath
might confer immunity from prosecution.
The individuals named as defendants
and as witnesses are James B. Duke,
/ president of the American Tobacco COM
pany; John Is. Cobb, president of the
American Cigar company: William K
/ Harris. chairman of the board of man
ayers of the British-American Tobacco
of the American Tobacco company, and
director of the American Snuff company;
Percival S Hill. vice-Dresident of the
American TOba eco company; n. c. Reed,
agent in the United States for the I'M
perial Tobacco company of Great Britain;
Thomas F. Ryan, Pierre Lorillard, Peter
A B. Widener. Anthony n. Brady and
practically all of the directors OF the
American Tobacco company.