The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1907-07-11
TOBACCO TRUST
is UNDER FIRE
Government Attacks Giant
Combination That Controls
Weed That SootheS.
STRONG PETITION is FILED
ORGANIZATION ALLEGED TO BE
RESTRAINT OF TRADE.

New York, July 1O.-The government
filed today I'm the United States court in
this city a petition against the American
Tobacco company the Imperial Tobacco
company. the British-American Tobacco
company, the American Snuff company
the American Cigar company, the United
Cigar Stores company. the American Sto-
gle company, the MacAndrews and Forbes
company, the COnley Foil company and
fitty-six other corporations and twenty
nine individuals connected with the
named companies. These corporations and
individuals constitute what is generally
Known as the tobacco trust" and the pc
uton directed against them sets forth
the purpose of the government to dissolve
TINS trust by breaking up the agreements
under which the consolidated concerns
are working In showing the growth of
the trust since its organization in 1890
the conclusion is reached that at an early
day, unless prevented, it would COM
pletely monOpOlize the entire tobacco in
dustry.
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.
II is stated that the act of July . 1890,
70 protect trade and commerce." and
subsequent acts have been violated and
the government therefore seeks to pre-
vent and restrain the unlawful and exist
ing agreements, combinations and con-
nOnODO1Ze
break up perfected mOnopolies. The gov
eminent asks that the existing combina-
tons, conspiracies and monopolies be en-
joined and that each of the defendant
companies De restrained from holding or
controlling stock in any other.
After imperial Also.
1t is asked further that the Imperial
Tobacco company be enjoined from doing
business within the Jurisdiction of the
United States unless il shall cease to OBJ
= serve the ,ermS of its agreement with the
American companies: that certain of the
oetendants be declared combinations in
restraint of trade and be enjoined from
engaging in interstate and foreign trade
ana commerce. or that a receiver be ap-
pointed 10 take charge of their affairs
and administer them so as to bring about
conditions in harmony with the law
This organization of the tobacco trust
according to the petition, dates from the
formation of the American Tobacco COM
pany in 1890 to acquire five competing
cigarette manufacturers. with joint assets
much'lcss than So, 100000, and an annual
consumption OF leaf under 1900, 600
pounds.
The petition shows the subsequent his
tory, development and growth of that
company until its total assets now exceed
$z'5-D0oO, and likewise the origin and
manipulation of scores of created, ac-
quired and controlled corporations uti-
lied as agencies to accomplish the gen
eral design, the progressive absorption
structiOn of formidable opposition. and
the entry by defendants into various de-
partments of manufacture and trade do
mestic and foreign, in tobacco products
with intent TO mOnopOlize. The aHega-
JiOn is made that members of the combi-
nation have divided up the tobacco BUSH
ness of the world. assigning to each some
special territory for Unmolested exploita-
ton It is declared that the consolidated
corporations annually purchase 475, 900 OCA
pounds of domestic leaf. and of the total
produced and sold in the United States.
manufacture. sell and distribute more
than 2S9.00.e0 pounds go per cent? of the
smoking and plug tobacco: 95 per cent OF
the snuff; 80 per cent of the cigarettes: "a
per cent Of the small cigars; 81 per cent
of the licOrice products: so per cent of the
tin toiF products, and 10 to IL per cent of
the cigars and stOgieS: that they are rap
idly acquiring control of the ordinary
agencies Jobbers, wholesalers and retail
ers-thrOugh which tobacco products are
distributed.
Of the total annual production of domes-