Morris tribune. [volume] (Morris, Minn.) 1880-2000, 1907-07-20

were about>A0 per cent. Later Secre-
tary Pratt of the Standard confirmed
the impression of Mr.. Rockefeller
that the stock was $1OO,000,OOO and
that the dividends during the years
mentioned were 40 per cent. Mr.. Pratt
added that the net earnings in 1908
were $4,000, 900, $61, 100000 for 1904
and $57 100000 for 1905. He declared
that the entire outstanding stock was
employed In the petroleum business,
but thought controlling interest in
the Standard Oil Company Of Indiana
was held by individuals who were
corporate stockholders in the Standard
Oil Company of New Jersey.
In statement issued by the officers
Of the company it is contended that
since the enactment of the interstate
commerce law in 1887 the company
has observed it's 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
source of profit, as the net rate was
always their basis fer 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 this 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 Trust Prosecuted.
In the United States circuit court at
New York special counsel, lanes G.
McReynolds and G. P. Grosvenor, for
the government, filed bill in equity
against the American Tobacco COM
pany. known as the 100000
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 &C.
complshed in 1902 And, finally, it is
asked that the court appoint receivers
to take possession Of the assets of all
the various companies. and, if neces-
sary, to wind them up. In all sixty
five companies and Twenty-Five indi-
viduals are named.
Mr.. McReynolds did not hesitate to
suggest the prosecution of individuals
as likely to follow At the head of
this list of individuals stands James 3.
Duke, president Of the American To
bacco company, and Thomas F. Ryan,
it's principal financial hacker. The bill
of complaint dates the various con-
tracts and combinations back to JAN
1, 1891. and says that the defendants
from that time aimed to dominate the
tobacco industry and have progressive
ly absorbed competitors and driven
them out Of business by attacks,
threats or brides. In this connection it
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 it's 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 tinfoil business as
we'll as so per cent Of the leaf tobacco
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 a
demurrer of the marlborough Metro
politan company to a 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 it's illegality,
holds that the marlborough Metropoli-
tan is an illegal combination. The
company had contended that it was
not a monopoly because other COM
panies were not excluded from the
transportation field, but the judge re-
piled that monopoly may effectuaIly.
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-
waited 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 10 why it's
charter should not be annulled on the
ground of illegal monopoly.
To Break Telegraph Combine.
Attorney General Jackson of New
York has appealed 70 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
Is. IL