The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1907-07-10
TWO LINES OF ACTION.
Injunction or Receivership Submitted
as Alternative Methods.


New York, July 10.-In filing today Its
bill of complaint against the American
Tobacco company, commonly known as
the tobacco trust and its "a subsidiary
and affiliated corporations, each OF
which is named as a co-defendant, the
federal government is expected to de-
liver one of the most decisive blows
it has yet struck since President Reose-
welt began his campaign against the
trusts.
Proceedings begun today take the
form of a suit in equity filed IN the CIR
cult court for southern New York dis
trict under the provisions of the Sher-
man antitrust law. The summons ana
complaint represent in concrete form
the conclusion reached after an lnVesti-
CATION of the tobacco trust ana It's al
lied interests begun last winter DeIOre
special federal grand jury empanelleo
for that purpose.
During that time Judge ]. o. Mercy
nolds and Edwin p. Grosvenor VINO were
appointed special assistants to Attor-
new General Bonaparte, have examined
before the grand jury scores of import
ant witnesses.
Judge McReynolds, who filed the
complaint today said the court will be
asked to adjudge each of the corpora
tons involved as a combination in re-
straint of interstate and foreign trace
The court will be petitioned TO en1oln
each from engaging further in inter
state or foreign commerce, or, II tne
| court should hold that the public in
terests would be better subserved there-
by the alternative prayer Will be pre-
sented that receivers. be appointed to
take possession of the afails ana as
| sets of the defendant companies ana
wind them up, or else bring about con-
ditions that will place them IN narihoLS
| with the law.
The court will be further asked to
decree that the holding of stock by
| one of the defendant corporations IN
another is illegal and to en1o1n eacn
. It11cr n
Gus contracts and combina tons enter
ed into among themselves for the pur-
pose of monopoliZing the toDacco
| trade The suit involves the English
| tobacco trust as we'll. The govern
ment investigators have uncovered an
agreement in writing, 1t is stated, Pc
tween the American company ana the
ImDerial Tobacco company, the Eng
| fish combination, by which the Amer
lean trust binds itself to keep out o!
the English field and the Imperlal
company reciprocates by Withdrawing
from the United States.
| The remainder of the world trdoe
in American tobacco under the terms
of the alleged agreement Is turned
| over to a company known as the BTU
| ish-American company Whlcn was ol
| ganized in 1901, the date of the agree
ment.- The American Tobacco COM
| pany owns two-thirds of the capltal
| stock of the British-American COM
| pany. it is said, and the Imper1al com
pany owns the remaining third. Oper-
! ating under the agreement with the
| British trust it thus. according 10 the
government contention, has virtual
monopolv of the worlds trade IN
| American tobacco.
| The two English companies are OF
course outside the Jurisdiction of the
federal law. but the federal govern,
ment, it is said. will ask the court, II
| II holds that it can do so, to restrain
/ the agents of these companies. from
| hI,ving tobacco In this country until
the combina ton is broken up. me
| agreement between the American ano
the Imperial was entered into AFTER
years war between the companies