The Hartford herald. [volume] (Hartford, Ky.) 1875-1926, 1907-07-17
RULED BY THE TRUST
Is the Immense Tobacco
Trade of the World.
BIGGEST MONOPOLY ON EARTH
Handles IS per Cent. of the
Leaf Tobacco Grown
in the Country.

ment today filed in the United States
Circuit Court in this city a petition
against the American Tobacco Com
pany, the Imperial Tobacco Company,
the British American Tobacco Com
pany, the American Snuff Company,
the American Cigar Company, the
American Stogie Company, the Mac
Andrews & Forbes Company, the Cor
ley Foil Company and fifty-siX other
corporations and twenty-nine individ-
uals connected with the named COM
panies. The corporations and indi-
viduals constitute what is generally
known as the Tobacco Trust, and
the petition directed against them
sets forth the purpose of the gov
eminent to dissolve this trust by
breaking up the agreements under
which the consolidated concerns are
working. In showing the growth of
the trust since it's organization in
1890, the conclusion is reached that
at an early day, unless prevented, it
would completely monopolize the en-
tire tobacco industry.
1t is stated that the act of July
2. 1890. "to protect trade and COM
merce," and subsequent acts have
been violated and the government
therefore seeks to prevent and re-
strain the unlawful existing agree
ments, combinations and conspiracies
and attempts to monopolize and break
up perfected monopolies. The gov
eminent asks that the existing COM
binations, conspiracies and monopo-
lies be enjoined, and that each of the
defendant companies be restrained
from holding or controlling stock in
any other. 1t is asked further that
the Imperial Tobacco Company be en-
joined from doing business within the
jurisdiction of the United States until
it shall have ceased to observe the
terms of its agreement with American
companies; that certain of the de-
PENDANTS be declared combinations in
restraint of trade and be enjoined
from engaging in interstate and foreign
trade and commerce, or that a re-
ceiver be appointed to take charge of
their affairs and administer them so
as to bring about conditions in har-
mony with the law.
Of hn tobacco
trust, according to the petition, dates
from the formation of the American
Tobacco Company in 1890 to acquire
five competing cigarette manufacture
ers, with joint assets much less than
$25 zoo, 900 and an annual consumption
of leaf under 100000 pounds.
The petition shows the subsequent
history, development and growth of
that company until its total assets
now exceed 1915, 900, and likewise
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 the entry by de-
PENDANTS into various departments of
manufacture and trade, domestic and
foreign, into tobacco products with
intent to monopoliZe. The allegation
is made that the members of the COM
bination have divided up the tobacco
business of the world, assigned to
some parties special territory for un-
molested exploitation. 1t is declared
that the consolidated corporations an
nually purchase 475,000,00O pounds of
domestic leaf and of the total pro-
duced in the United States, manufac
ture, sell and distribute more than
2S0, 900, 900 pounds $50 per cent? of
the smoking and plug tobaccos; 80
per cent. of the snuff; so per cent. of
the cigarettes 70 per cent. of the
small cigars; % per cent, of the leo
rice products; so per cent, of the tin
foil products and 10 to 10 per cent.
of the cigars and stogies; that they
are rapidly acquiring control of the
ordinary manifestations, wholesal-
ers and retailers-through which to-
bacco products are distributed.
OF the total annual production of
domestic tobacco, estimated at 100000
600 pounds, rs per cent. is purchased
by the American Tobacco Company
and its associates and allies at prices
which the Government alleges to be
unlawful influenced by the combina-
ton. 1t is said that this is in defi
ance of the usual laws of trade where
open competition by many separate
and independent concerns controls the
prices.
After reciting the bitter trade war
between American and English con-
Germs, the petition shows how the con-
binations in these countries, wearying