The free lance. (Fredericksburg, Va.) 1885-1926, 1907-07-13
AFrERT0BACC0TRJST
Government Starts Suit 10
Crush t''onopoly.
INDICTMENTS THREATENED
Application Filed For Injunction
Against American Tobacco Com
pany-coneern's Assets $27s.ooo.ooo
and Capital is Only $4,000. 900.

New York. July 1.-THE govern
ment filed in TIE United States circuit
court in this city petition against the
American Tobacco company. the Ina
perial Tobacco company. the British
American Tobacco company. the Amer
lean Snuf company. the American CT
gar company. the United Cigar Stores
company. the American Stogie COM
pany. the Mac Andrews < Forbes COM
psny. the Conlcy Foil company. and
90 other corporations and 29 individ-
usls connected with the named COM
panies.
These corporations and individuals
constitute what is generally known "a
the tobacco trust. and the petition
directed against them sets forth the
purpose OF the government TO dissolve
this trust by breaking up the agree
ments under which the consolidated
concerns are working. in showing the
growth Of tho trust" since its organi-
cation en- 1890. the conclusion is reach
ca that 81 an early day. unless pre-
vented. II would completely monopO-
lie tfe entire tobacco industry.
james C. McReynolds. the special at
torncy-gCncrai. who filed the COM
plaiut said that criminal prosecution
Of some Of the defendants named in
thc case was highly probable. that
the sherman law. under which the ac-
ton IS brought. makes conspiracy
in restraint Of trade a criminal offence.
The organization OF the tobacco
trust according 10 the petition. dates
from the formation of the American
Tobacco company. In 1890. to acquire
i've competing cigarette manufactur-
Crs joint assets much less than s25.-
100000. and an annual consumption OF
lear under $1,000 000 pounds.
The petition shows tae substantial
history. development and growth of
that company until its total assets now
exceed S-75.oe0 600. aud likewise the
origin and manipulation OF scores OF
created. acquired and controlled cor
porations utilized as agencies to ac-
comnllsh the general design: the pro-
sressive absorption and elimination 81
Competitors and destruction OF formid-
able opposition. and the entry OF de-
PENDANTS into various departments OF
foreign. into tobacco products with in
tont 10 monopolize
The allegation is made that the mem
hors Of the combination have divided
rn the tobacco business Of the world.
ASSISTING 20 some special territory for
unmolested exploitation. II IS declared
that the consolidated corporations an
nually purchase AS. 600. coo pounds OF
domestic leaf. and Of the total pro-
duced In the United States manufac-
ture. sell and distribute more than
$50 oo0 GOO pounds $50 per cent? of the
smoking and plug tohaccos: 95 per
cent Of the SNUFF; so per cent OF the
cigarettes. - per cent OF the small CT
cars; 90 per cent OF the licorice pro-
ducts. 50 per cent OF the tin foil pro-
ducts and 10 TO Is per cent OF the CT
Ears and stogies. that they are rapidly
acquiring control OF the ordinary agen-
cies iobbers, wholesalers and retail
ers through which tobacco products
are distributed.
or the total annual production OF do
nestle tobacco. estimated at 500 OOO. .
GOO pounds. - pen cent. is purchased
by the American Tobacco company
and It's associates and its allies AT
prices which the government alleges
10 Doe unlawfully influenced by the
combination. II IS said that this Is in
defiance Of the usual laws Of trade
where open competition by many sepa-
rate and Independent concerns con-
Germs controls the prices.