Gloucester County Democrat., 1907-07-18
sorporate stockholders in the Standard

liz Il Stdte4iltIiI iSS ueSI O} LIE O1utSA .
Of the company it is contended that.
since tlle enactment of the interstate
commerce law in 1887 the company
has observed its provisions; that it well
comes the law and the principle of
equity embodied in it. They say that
the old system of special rates and re-
bates was obnoxious to them and never
a source Of profit, as the net rate was
always their basis for the selling price,
of which the consumer had the benefit;
hence it is absolutely untrue that re-
bates are the basis of Standard Oil
prosperity according to 0S statement.
They attribute their prosperity to ''cor-
rect apprehension of the possible mag
nitude and Importance of the petro-
leum business" and their providing
better and more economical methods.
Tobacco Tsust Prosecuted.
In the United States circuit court at
New York special counsel, James G.
McReynolds and G. P. Grosyenor, for
the government, fled a bill in equity
against the American Tobacco COM
pany, known as the $230,000,000
tobacco trust, seeking to have the
merger declared a combination in
restraint of trade, and that each
constituent company be restrained
from engaging in business under
the present organization, or from
owning stock in any other company.
The court was also asked to declare
Illegal and to abrogate the contracts on
which the merger of the English and
American tobacco interests were ac-
complished in 1902. And. finally, it is
asked that the court appoint receivers
the various companies, and, if neces-
sary, to wind them up. In all sixty
five companies and twenty-nine indi-
viduals are named.
Mr. NRc&eynolds did not hesitate to
suggest the prosecution of individuals
as likely to follow. AT the head of
this list of individuals stands James B.
Duke, president of the American To
bacco company, and Thomas f. Ryan,
its principal financial backer The bill
of complaint dates the various con-
tracts and combinations back to Jan.
l, 1891, and says that the defendants
from that time aimed to dominate the
tobacco industry and have progressive
" absorbed competitors and driven
them out of business by attacks,
threats or bribes In this connection 1t
shows up the organization of the Unit
ed Cigar Stores company in 1901 for
the purpose of monopolizing the retail
trade. This company at first was able
to conceal its association with the
trust, but the control of the latter
gradually became known to the public.
Under various names it is charged that
the trust maintains monopoly of the
snuff, licorice and tinfoiI business as
business of the United States, while
the American Cigar company enables
1t to dominate the trade in cigars and
leaf tobacco between this country and
Cuba and Porto Rico
Ryan Belmont Merger Unlawful.
Judge Holt Of the federal circuit
court at New York, in overruling
demurrer of the Interborough Metro
politan company to suit brought by
Daniel w. Burrow, Chicago stock
holder of said company, to have the
great New York city traction merger
set aside On the ground of its illegality,
holds that the Interborough- Metropoli-
tan is an illegal combination. The
company had contended that it was
not a monopoly because other COM
panies We're not excluded from the
transportation field, but the judge re-
piled that a monopoly may effectually,
if not legally, prevent competition, and
that it was difficult to see how the
monopoly in New York city could be
more complete. as every surface, ele-
vated and subway railroad in Manhat-
tan and the Bronx had been combined
in one management and control
Attorney General Jackson, on behalf
of the state, began proceedings against
this traction merger, and Justice Plat
EEK ordered that the Interborough COM
pany show cause on July 19 why its
charter should not be annulled on the
ground of Illegal monopoly.
To Break Telegraph Combine.
Attorney General Jackson of New
York has appealed to the supreme
court of New York county for the ap-
pointment of referee to take testi-
mony on his allegation that the Postal
and Western Union Telegraph COM
panies have formed a combination to
increase rates of service in that and
other states. This is preliminary to
his action to restrain the said combi-
nation, and requires that Messrs.
Gould, Schiff, Jesup, Hartman, Mac
kay, Clowry and other officials of the
two companies shall testify before the
referee. 1t is charged that this COM
bination was made last January and
that it has resulted in an increase of
5 cents message of ten words. and
also that the companies have agreed
to establish at various places common
Offices and to divide the profits and
business received