The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1907-07-11
Government Files Petitions
Against Three Score Corpor-
ations i'm Great Combine.
CONSPIRACY IN RESTRAINT
OF TRADE is ALLEGED
Interesting Details of How Mon
opoIy of Worlds Trade in
Tobacco Was Acquired.

hPEnOlQSS the SpFtldl ASSlSIdnl AIiul
uev General, who fled the complaint in
the tobacco cases, today said that the
immediate prosecution of some of the
defendants named in the case was highly
proba ble that the Sherman law under
which the action is brought made n
conspiracy IN restraint of trade a crim-
inal offense.
4 great feature of the complaint to-
day is its waiver of the right of de-
manding answers under oath from cor.
porations and individuals named as de
fendants, 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
company; William X. Harris, chairman
IF the board of managers of the Brit
,sh-American Tobacco company; Caleb
G.. Dula. vice president of the American
Tobacco company, and director of the
American Snuff company; Perciyal 5.
Hill vice president of the America n
Tobacco company; ". c. Reed, agent
IN the United States for the Imperial
Tobacco company of Great Britain;
Thomas T. RYAN, Pierre Lorilard. Peter
A. B. Widener, Anthony II. Brady and
practically all of the directors of the
American Tobacco company.
Scores OF Defendants
The government fled today in the
United States Court in this city pc
tition against the American Tobacco
company, the Imperial Tobacco com
pany, the British American Tobacco
company, the American Snuff company,
the American Cigar company, the
United Cigar Stores company, the
American Stogie company, the Mac
andrews 6 Forbes company, the Con-
Icy Fell company and fftysix other
corporations and twenty-pine individ-
uals connected with the named compa-
MES, The corporations and individuals
constitute what is generally known rs
the tobacco trust, and the petition
directed against them sets forth the
purpose of the government 10 dissolve
this trust by breaking up the agree
ments under which the consolidated
concerns are working. In showing the
growth of the ''trust'' since its or
ganization in 1890 the conclusion is
reached that at an early day. unless
prevented. it would completely monopo-
lie the entire tobacco industry.
That ali of the defendants are en-
gagged IN interstate and foreign trade
and commerce in tobacco and products
manufactured therefrom is alleged by
the petition. It is stated that the act
of July 9, 1890, 'Fto protect trade and
commerce., - and subsequent acts have
been violated and the government
therefore seeks to prevent and restrain
the unlawful existing agreements. com
bnatIon5 and conspiracies and at
tempts 10 monopolize and break up per
fected monopoles. The government
asks that the existing combinations
conspirscies and monopoies be en-
Joined and that each of the defendant
companies be restrained from holding
of controlling stock In any other. IL
is asked further that the Imperial To.
bacco company be enJoined from doing
business within the jurisdiction Of the
United States unless 1t shall cease 10
observe the terms OF It's agreement
with the American companies. that
certain of the defendants be declared
combinations in restraint of trade and
be epjolned from engaging in interstate
and foreign trade and commerce, or
that A receiver be appointed 10 take
charge of their affairs and admins
Ter them so as to bring about condi-
tlo0s in harmony with the law.
Organization of Trust
The organization of the tobacco
trust, according TO the petition, dates
from the formation Of the American
Tobacco company in 1890 to acquire
FIVE competing cigarette manufacturers
with joint assets much less than S25,-
100000, and an annual consumption Of
leaf under 100000 pounds,
The petition shows the subsequent
history, development and growth Of
that company until its total assets now
exceed S275,0e2.000, and Likewise the
origin and manipulation of scores of
created, acquired and controlled cor
poratjons utilized as agencies to accom-
phsh the general design; the progress
sive absorption and elimination OF com
petitors and destruction of formidable
opposition, and the entry By defend
ants into various departments Of manu-
fscture and trade, domestic and for
eign, IN tobacco products, with intent
TO monopolize.- The allegation is made
that the members of the combination
have divided up the tobacco business
Of the world, assigning to some special
territory for unmolested exploitation.
1t is declared that the consolidated
corporations annually purchase 49,
100000 pounds of domestic leaf and Of
tho total produced in the United
States, manufacture. sell and distribute
more than s0,000,000 pounds go per
cent? Of the smoking and plug tobacco.
30 per cent of the snuff, so per cent Of
the cigarettes, IS per cent Of the sm.,.l
cigars, 95 per cent Of the licorlcc p.o-
ducts, 80 per cent of tbs tinfoil pro-
ducts, and 10 to 10 per cent of the
cigars and stogies; that they are rap
IDLY acquiring control Of the ordinary
agencies--jobbers, wholesalers and re
tailers-through which tobacco pro-
ducts are distributed
Gobbles Bulk of Product.
OF the total annual production Of DO
mestic tobacco, estimated at goo. 600.
oOo pounds, 10 per cent is purchased by
the American Tobacco company and its
associates and allies at prices which
the Government alleges to be unlawful
ily influenced by the combination II
is said that this is in defiance of the
usual laws Of trade whore open com.
petition by many separate and indie
pendent concerns controls the prices.
The petition. continues:
The American Tobacco company of
New jersey, organized in 1890 with
so0,0o0,000 capital stock. took over the
business Of Allen and Ginter of Rich.