Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1907-07-10
UNCLE SAN AFTER
TOBACCO TRUST"
Government Filled Petition
Against Tobacco Companies
and Other Corporations
WILL TRY TO DISSOLVE TRUST
The Growth Since Its Organization in
1890 Shows That in Near Future It
Would MonopoIize Entire Tobacco
Industry-Does 80 Per Cent of To.
bacco Business of Country.

OaCCO ouSuuSSS VI SOOik'
New York, July 10.-The government
today filed in the United States circuit
court, a petition against the American
Tobacco Company the British Amer
lean Tobacco Company, the American
Snuff Company, the American Cigar
Company, the United Cigar Stores
Company, the American Stogie Com
pany, the McAndrews and Forbes Com
pany, the Coonley Foil COMPANY, and
ffty-six other corporations, and twen-
ty-nine individuals, connected with
the named companies,
These corporations and individuals
constitute what is generally known as
the tobacco trust and the petition is
directed against them and sets forth
that the purpose of the government Is
to dissolve this trust, by backing up
the agreements under which the con-
solidated concerns are working. In
i "
showing the growth of the trust
since it's organization in 1890, the con-
clusion is reached that at an early day
unless prevented, it would completely
monopolize the entire tobacco indus
try.
Commercial Acts Violated.
That all defendants are engaged IN
interstate and foreign trade and com
lnerce in the tobacco and products
manufactured therefrom, is alleged by
the petition 1t is stated that the act
of July 2, 1890, TO protect trade and
commerce." and subsequent acts, have
been violated, and the government
asks that existing combinations, con-
spiracies, and monopolies be enjoined,
and that each defendant company be
restrained from holding or controlling
stock in any other. 1t is asked fur
lther, that the Imperial Tobacco Com
pany be enjoined from doing business
within the jurisdiction of the United
States, until 1t shall cease to observe
the terms of Its agreement with the
American Companies, that certain of
the defendants be declared combina-
tions in restraint of trade and be en-
Joined from engaging in interstate ana
foreign trade and commerce, or that q
receiver be appointed to take charge
of their affairs and administer them
so as to bring about the condition IN
harmony with the law.
Tobacco Trust Organized in 1890.
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 cigaret manufacturers,
with joint assets Of much less than
$4,000, 900. and the annual consump-
ton Of leaf under 15,000,O00. The pc
tition shows the subsequent history,
development and growth of the COM
pany until its total assets now exceed
s275, 100000, likewise the origin and
manipulation of scores of created, ac-
quired and controlled corporations
utilized as agencies to accomplish a
general design; progressive absorption
and elimination of competitors, and de-
struction of formidable opposition; and
entry by defendants into the various
departments of manufacture and trade.
domestic and foreign, into the tobacco
products with the intent to monopolize.
The allegation is made that members
of the combination have divided up
the tobacco business of the world, as
signing to some special territory for
unmolested exploitation.
Purchase Big Amount Of Domestic
Leaf.
1t is declared the consolidated cor
pora tions annually purchase 475,000,-
600 pounds of domestic leaf, and of a
total produced in the United States,
manufacture, sell and distribute more
than 2sO,OOO,OOO pounds ESQ per cent?
of smoking and plug tobaccos; 95 per
cent of snuff, 80 per cent of cigarets:
IS per cent of small cigars; 95 per cent
of licoricE products, 80 per cent Of tin
foil products 10 to Is per cent Of ci-
sars and stog:es; that they are rapid
ly acquiring control of the ordinary
ta,la.s-thru which the tobacco prod.
ucts are distributed.
The total annual production Of 90
mestlc t. be eco, estimated at Sn0.G01,0G
pornGs, Is per cent is pu.. d by
TIE Aina'.ean Tobacco Coz oa0y aid
us associates and its allies, a; prices
which the government alleges TO be
unlaw fully Influenced by the 'o:rt're-
ton. 1t is said this is in dennance Of
the usual laws of trade, where open
competition by many separate and in
dependent concerns. control the prices
Some Will Be Prosecuted.
The special assistant to Attorney
General McReynolds. who filed COM
plant in the tobacco case, said today
that criminal prosecution of some Of
the other defendants named in the case
is highly probable; that the Sherman
law under which the action was
brought, makes conspiracy in restraint
of trade criminal offense.
No Hearing Before Court Today.
The significant feature of the COM
plaint filed by McReynolds is waiver
by him of the right of demanding an
swers under oath from corporations
and individuals named as defendants
in the complaint. as making of such
answer under oath might confer i'm
munity from prosecution. There was