Mexico Missouri message., 1907-07-18
GOVERNMENT ALLEGES THAT A
MONSTER MONOPOLY HAS
BEEN FORMED.
THREE FIRMS ARE MENTIONED
Petition Says illegal Combination Was
Erected Seventeen Years Ago
Buys IS Per Cent Of
Product.

New York--The government fled In
enc United States circuit court in this
city a petition against the American
Tobacco Co. the Imperial Tobacco
Co, the British.American Tobacco Co.
the American snufi Co.. the American
Co, the United Cigar Stores Co.. the
American Stogie Co., the McAndrews
a Fortes Co. the Conley-Foil Co,
and sc other corporations and 20 in
dividuals connected with the named
companies.
These corporations and individuals
constitute what Is generally known as
che Tobacco Trust" and the petition
directed against them sets forth the
purpose OF the government TO dissolve
ahis trust by breaking up the agree
ments under which the consolidated
concerns are working. In showing the
growth OF the trust since its organi-
Eation In 1890 the conclusion Is reach
ed that at an early day. unless pre-
vented. 10 would completely monopo-
lize the entire tobacco industry.
Operate In Restraint Of Trade.
That all the defendants are engag.
ed In Interstate and foreign trade
and commerce in the tobacco and pro-
ducts manufactured therefrom is al.
legged by the petition. II Is stated that
the act Of July 2. 1890, ito protect
trade and commerce. and subsequent
acts have been violated. and the gov.
eminent therefore seeks to prevent
and restrain the unlawful existing
agreements. combinations and con.
splraies and attempts TO monopoliZe
and break up perfected monopoiles.
The government asks that the ex.
listing combinations. conspiracies and
monopolles be enjoined and that each
of the defendant companies be re.
strained from holding or controlling
stock In any other. II Is asked furth.
er that the Imperial Tobacco Co. be
enjoined from doing business within
the Jurisdiction OF the United States
until Il shall cease 10 observe the
terms OF its agreement with Ameri-
can companies: that certain OF the de.
PENDANTS be declared combinations in
restraint Of trade and be enjoined
from engaging in interstate and for.
eign trade and commerce. or that a
receiver be appointed TO take charge
Of their affairs and administer them
40 as to bring about conditions in
harmony with the law.
Was Organized In 1890.
The organization of the Tobacco
Trust, according to the petition. dates
from the formation of Amedican To-
bacco Co. in 1890 to acquire Ave COM
peting cigarette manufacturers. with
Joint assets much less than $25. 00O,-
600. and an annual consumption Of
leaf under l5.000.000 pounds.
The petition shows the subsequent
history, development and growth OF
that company until its total assets
now exceeds S275.o00.o00 and like
wise the origin and manipulation Of
scores OF created, acquired and con.
frolled corporations utilized as agen.
cies to accomplish the general dc.
sign; the progressive absorption and
elimination Of competitors and de-
structiOn OF formidable opposition,
and the entry by defendants into
various departments of manufacture
and trade. domestic and foreign, into
tobacco products with intent to mo.
nopolize.
Buys IS Per Cent Of Product.
or the total annual production OF
domestic tobacco. estimated at $780,.
100000 pounds, 75 per cent is pur.
chased by the American Tobacco Co.
and its associates and It's allies at
prices which the government alleges
90 be unlawfully influenced by the
combination. Il Is said this Is de.
ssanee OF the usual laws of trade
where open competition. by many sep.
arate and independent concerns, con.
troll the prices.