The Bemidji daily pioneer. [volume] (Bemidji, Minn.) 1904-1971, 1907-07-12
WAR ON BIG TRUST
Government Begins Suit Against
Tobacco Combination.
OCTOPUS GROWING RAPIDLY
Petition Declares That at an Early
Day. Unless Prevented, Consoli
dated Concerns Will Completely
MQnonoliZe the Entire industrA Is

Monopolize the Entire Industry.
New York, July THE govern.
ment has filed in tho United States
circuit court in this city a petition
against the American Tobacco com.
pany, the Imperial Tobacco company,
the British-American Tobacco com
pany, the American Snuff company,
the American Cigar company, the
United Cigar Stores company, the
American Stogie company, the Mac.
Andrews & Forbes company, the Con.
ley Foil company and fifty-six other
corporations and twenty-nine individ.
uals connected with the named com.
panies. These corporations and in
dividuals constitute what,is generally
known as the tobacco trust and the
petition directed against them sets
forth the purpose Of the government
to dissolve this trust by breaking up
the agreements under which the con.
solidated concerns are working. In
showing the growth of the trust since
It's organization in 1890 the conclu
sion is reached that at an early day,
unless prevented, it would completely
monopolize the entire tobacco indus
try
That all of the defendants are en-.
gagged in interstate and foreign trade
and commerce in the tobacco and
products manufactured therefrom is
alleged by the petition. 1t is stated
that the act of July 2, 1890, Ito pro
tect trade and commerce." and sub
sequent acts have been violated and
the government therefore seeks tC
prevent and restrain the unlawful eX.
listing agreements, combinations and
conspiracies and attempts to monopo'
lie and break up perfected monop-
olies.
Injunction or Receiver Asked.
The government asks that the exist
ing combinations, conspiracies and
monopolies be enjoined and that each
of the defendant companies be re-
strained from holding or controlling
stock in any other. It is asked fur.
Their that the Imperial Tobacco COM
pany be enjoined from doing business
within the jurisdiction of the United
States until it shall cease to observe
the terms of it's agreement with Amer.
lean companies; that certain defend.
ants be declared combinations in re-
straint Of trade and be enjoined from
engaging in interstate and foreign
trade and commerce, or that a receiver
be appointed to take charge of their
affairs and administer them so as to
bring about conditions in harmony
with the law.
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 manufacture
ers with joint assets much less than
$25,0O0.000 and an annual consump-
ton of leaf under 100000 pounds
The petition shows the subsequent
history, development and growth of
the company until it's total assets
now exceed 1915, 100000 and likewise
the origin and manipulation of scores
corporations utilized as agencies to
accomplish the general design; the
progressive absorption and elimina-
ton of competitors and destruction of
formidable opposition and the entry
by defendants into various depart
ments of manufacture and trade, do
nestle and foreign, into tobacco prod
int t0
Worlds Business ParcelIed Out.
The allegation is made that the
members of the combination have
divided up the tobacco business of the
world, assigning to each special terri
tory for unmolested exploitation. 1t
is declared that the consolidated cor
porations annually purchase 475,O00,-
900 pounds of the domestic leaf and Of
the total produced in the United
States manufacture, sell and dis
tribute more than 2S0,000,000 pounds
go per cent? of the smoking and plug
tobaccos, .95 per cent of the snuff, 80
per cent OF the cigarettes, 70 per cent
of the small cigars, IS per cent of the
licorice products, 80 per cent of the
tin foil products and 10 to Is per cent
of the cigars and stogies; that they
are rapidly acquiring control of the
ordinary agencies-jobbers, whole
salers and retailers through which
tobacco products are distributed.
OF the total annual production Of
domestic tobacco, estimated at $780,
100000 pounds, 75 per cent is pur-
chased by the American Tobacco COM
pany and it's associates and it's allies
at prices which the government al
the combination.
An interesting chapter of the petit
tlon is devoted to methods of distribu-
tion of tobacco products. The Amer
lean Tobacco company in 1901, the
petition states, secretly acquired con-
troll of the United Cigar Stores COM
lany (for long time thereafter de-
nied) and through 1t retail tobacco
stores are established In the large
cities, which. by reason of the power
full support and influence of the COM
bination, quickly secured dominat
Ing position in the trade and destroyed
competitors.
In filing its bill of complaint the
government has delivered one Of the
most decisive blows it has yet struck
since President Roosevelt began the
campaign against the trusts.
GRAIN DEALERS TO FIGHT
Plan War to Finish on farmers EIe.