Abilene weekly reflector. [volume] (Abilene, Kan.) 1888-1935, 1907-07-18
A TOBACCO TRUST
The Government Files a Petition In
New York for Its Dis
solution.
NAY ASK FOR A RECEIVER
An Injunction Against the Offending
Concerns Could Be Asked but
II Might Embarras the
Public.

| New York, July 1.-THE govern
ment Wednesday filed In the Unitet
States circuit court In this city 1
petition against the American To
bacco company. the Imperial Tobac
CO company, the British.AmericaI
Tobacco company, the American
Snuff company, the American Cigar
company, the United Cigar Stores
company, the American Stogie com
pany, and Sc other corporations and
20 individuals connected with the
named companies. These corpora.
tons and individuals 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 consolidated con-
Germs are working. In showing the
growth Of the trust" since Its or
ganizatlon in 1890, the conclusion is
reached that at an early day, unless
prevented, 1t would completely mo-
nopolize the entire tobacco industry.
The organization Of the tobacco
trust, according to the petition,
dates from the formation Of Ameri.
can Tobacco company in 1890 to ac-
Quire, five competing cigarette man.
ufacturers, with joint assets much
less than $25,000,000 and an annual
consumption Of leaf under 100000
pounds.
The petition shows the subsequent
history, development and growth Of
that company until It's total assets
row exceed $275,OO0OO0 and like
wise the origin and manipulation
of scores Of created, acquired and
controlled = corporations utilized as
agencies to accomplish the general
design; the progressive absorption
and elimination of competitors and
destruction of formidable opposition;
and entry by defendants into various
departments of manufacture and
trade, domestic and foreign into TO-
bacco products with intent to monop.
ollie. 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
annually purchase ATS,
100000 pounds of domestic leaf and
Of the total produced In the United
States manufacture, sell and distrib'
ute more than 28O,O00,000 pounds $50
per cent? Of the smoking and plug to-
baccos; 95 per cent Of the snuff, so
per cent of the cigarettes, rs per |
sent of the small cigars, 95 per cent
If the licorice products, 80 per cent
If the tin foil products and 10 to Is
yer cent Of the cigars and stogies;
hat they are rapidly acquiring con-
.rol Of the ordinary agencies-Job-
,ers, wholesalers and retailers
through which tobacco products are
distributed.
James G. Reynolds, the special as
istant attorney general appointed to
prosecute the so-called tobacco trust
declared Wednesday after filing the
complaint in the case that the ques-
ion whether he would urge the court
o appoint a receiver for the various
ompanies would depend entirely upon
he evidence secured from witnesses
ummoned. He said also that Grimm
| prosecution of the defendants nam
d in the complaint is highly probable
nd that the Sherman law, under
vhich this action is brought, makes a
in restraint Of trade Grim
nal offense.. A significant feature
the complaint Wednesday is its wal
er Of the right of demanding an
wers under oath from corporations and
ldiyiduals named as defendants, az
he making Of such answer under oath
light confer immunity from prOsecu'
On.