The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1907-10-15

as giving a dealer a special concession,
in return for which he was not TO
handle competing goods
1t is explained that the Amsterdam
supply Company, which buys every
thing from hardware to stationery for
the various allied companies which
own stock in il, is nothing more or
less than department store, buying
at low cost because of large purchases.
Dealing with those parts OF The
governments complaint relating 10
the organization of tine C~onsolidatedC
Tobacco Company, the Answer says IN
part:
The organization ct the Consolt-
dated Tobacco Company was not at
all for the purpose of destroying COM
petition, ~injuring or restraining inter
state or foreign commerce, CT to eA-
clude others therefrom, or to acquire
therunder a monopoly; as q matter Of
fact, there was in the nature OF things
only to Il limited extent competition
betWeen h American Tobacco COM
pany as the American TObacco Com
pany as the American Tobacco's Com
pany's business was III the manafac-
ture OF cigarettes, smoking tobacco
and little cigars, while the Continental
oba Company's business was prIn-
cipally the manufacture OF chewing
tobacco. The Consolidated Tobacco
Company in making its offer made no
threat or representation or recon-
m~endation, and considering that
the then earnings of the Amer
lean Tobacco Company, the Of
fer was a fair one, especially
to those seeking safety Of in
vestment rather than chance of large
profits. Il is true that the organization
of the Consolidated Tobacco Company
was profitable to the organizers there
of, and so justified their judgment in
making the large investment Of $30,-
400 nnH h11f fhayp was NO . CcIITann a
the time Of such investment that it
would be probable, and the profit that
has come has been in no wise illegiti-
mate
The answer then goes into the his
tory of the deal between the English
company, the Imperial Tobacco Com
pany and the American Tobacco COM
pany, which was concluded by the two
companies forming a contract. The
answer says of this contract:
"These defendants insist tina the
effect of the said contract is not to
divide territory between companies,
hut tina they involved the purchase
by the American Tobacco Company of
the American business of the Imperial
Tobacco Company and the purchase of
the Imperial Tobacco Company Of the
IEnqfish business of the American To-
bacco Company, as well as the Ogden
business, and since the English BUSH
ness of the American Tobacco Com
pany, together with the ogden bust
ness, was of greater value than the
American business Of the Imperial To-
bacco Company, the Imperial Tobacco
Company paid for this English bust
ness of the American Tobacco Com
pany not only their own American
business but a small minority-not ex-
ceeding s per cent.-of the stock of
The Imperial Tobacco Company in ad-
dition.
Then these two concerns, each hav-
ing a business foreign to both English
and America, caused the formation of
the corporation (BIitish-American
Company which acquired these two
businesses, issuing stock therefor.
They (the d~efendants) say that the
said contract is not only such as would
not be in conflict with any law of tn
United States. but it is also valid un-
der the laws of Great Britain, where
all the negotiations leading up to con-
tract were carried On and cantract was
executed, and in the courts of Which
country it Is by it's terms exclusively
enforceable"
One of the interesting features OF
the answer is that William J.. Wallace.
De Lancey Nicoll and w. W. Fuller
appear as counsel. Junius Parker IS
the counsel of record. Associate coun-
sci William j. Wallace until last MAY
was the senior Judge of this Federal
District and retired at that time, hav-
ing reached the age limit. Judge
Wallace announced at the time that
he would engage in the practice Of
law in this city, and his is the first
case in which his name has appeared.