Omaha daily bee., 1907-07-11


who filed the complaint in the tobacco
cases. said today that criminal prosecu-
ton OF some of the defendants named in
the case was highly probable; that the
Sherman law under which the action Is
brought makes a conspiracy in restraint
OF trade criminal offense.
NEW YORK, July 1O-The government
today filed in the United States court in
this city a petition against the American
Tobacco company the Imperial Tobacco
company, the tish-American Tobacco
company, the American SNUFF company. the
American Cigar company, the United Stores
company the United Stogie company. the
MacAndrews & Forbes company, the Con-
ley Foil company and ffty-six other cor
porations and twenty-nine individuals con-
nected with the named companies. These
corporations and individuals constitute
what is generally known as the Tobacco
trust" and the petition directed against
them sets forth the purpose of the govern
ment to dissolve this trust by breaking up
the agreements under which the consolida-
ted concerns are working. In showing
the growth of the trust since it's organ
ization in 1880 the conclusion is reached
that at early day. unless prevented, it
would completely monopolize the entire
tobacco industry.
That all of the defendants are engaged
in interstate and foreign trade and COM
merce in tobacco and products manufac-
tured therefrom Is alleged by the petition.
1t is stated that the act of July g. 1890, ito
protect trade and commerce." and subse-
quent acts have been violated, and the gov
ernment therefore seeks TO prevent and re-
strain the unlawful existing agreements,
combinations and conspiraces and attempts
TO monopolize and break up perfected
monopolies The government asks that the
existing combinations, conspiracies and
monopohes be enjoined and that each of
the defendant companies be restrained
A from holding or controlling stock in any
other company.
Aim at ImPerinI Company.
II is further asked that the Imperial
Tobacco company be enjoined from doing
business within the jurisdiction of the
United States that II shall cease to OBJ
serve the terms of its agreement with
American companies; that certain of the
defendants be declared combinations in re-
straint OF trade and be enioined from en-
gaGlng in interstate and foreign trade and
commerce, or that receiver be appointed
TO take charge of their affairs and admin
lister them SO as to bring about conditions
in harmony with the law.
The organization Of the Tobacco trust, nc
cordlng to the petition, dates from the for
nation OF the American Tobacco company
in 1880 10 acquire Ave competing cigarette
manufactures with joint assets much less
than S25,0O0,00O and annual consumption
of leaf under 100000 pounds.
The petition shows the subsequent history,
development and growth of that company
until it's total assets now exceed $3.50 600 600
and likewise the manipulation and opera
tion OF created, acquired and controlled cor
porations utilized as agencies TO accomplish
the general design; the progressive absorp-
tion and elimination OF competitors and de-
struction Of formidable opposition and the
entry by defendants into various depart
ments of manufacture and trade, domestic
and foreign, into tobacco products with
intent to monopolize
Special Territory Assigned.
The allegation is made that the members
of the combination have divided up the to-
bacoo business OF the world, assigning to
some special territory for unmolested ex-
plotation. 1t is declared that the consoli-
dated corporations annually purchase 475,-
OOc 900 pounds OF domestic leaf and OF the
total production in the United States manu-
facture. sell and distribute more than $50,
10000 $50 per cent? OF the smoking and plug
tobaccos, % per cent of the snufI. 80 per
cent of the cigarettes. rs per cent Of the
small cigars 80 per cent of the licorice
products, so per cent OF the tin foil prod
ucts and 10 20 10 per cent OF the cigars and
stogies that they are rapidly acquiring
control OF the ordinary agencies-Jobbers,
wholesalers and retailers-throuEh which
tobacco products are distributed.
OF the total annual production of domes-
tic tobacco, estimated at SOO.O00.OOO pounds
T5 per cent is purchased by the American
Tobacco company and its associates and its
allies at prices which the government al
Ieges 70 be unlawrully Influenced by the
combination. It is said that this Is In de-
hance Of the usual laws OF trade where
open competition by many separate and in
dependent concerns control the prices.
How Monopoly Operated.
The operations OF the monopoly. according
10 the petition, have been along this genera
plan: To acquire through other confed
Grated companies the business of successful
opponents, taking from owners and man
ayers contracts not TO thereafter engage
in the tobacco business; to drive out other
opponents by destructive competition; t.
deter any who might wish to engage in the
trade, and, finally, to gain control OF the
agencies through which tobacco products
were distributed II is said these things
have been accomplished by means OF IN,
increasing power and forces OF the com
binAtion and by acquiring controlling IN
terests In the stock OF corporations there
after operating without competition. Many
kinds Of unfair trade methods have beer
resorted TO, It Is said. favorable one being
10 cause a corporation seoretly controlled
70 advertis, itself as wholly indepsndeai
and free from association with trylctS ant
combinations; 10 offer It's goods bsl,w cost
to initiate corporation brands and In thes,
ways 20 use the same for the destruction
OF real Independents.
An Interesting chapter OF the petition Is
devoted TO methods of distribution OF to
baceo products. The American Tobacco