The Madison daily leader. [volume] (Madison, S.D.) 1890-current, 1907-07-11
WAR ON BIG TRUST
Government Begins Suit Against
Tobacco Combination.
OCTOPUS GROWING RAPIDLY
Day, Urless Prevented, ConsoIi-
dated Concerns Will Completely
Monopoiize the Entire Industry.

Day, UrleSs Prevented, Consoli'
dated Concerns viii Completely
Monopoiize the Entire Industry.
New York, July 1.-THE govern
ment has filed in the United States
circuit court in this city a petition
against the American Tobacco COM
pany, the Imperial Tobacco company,
the British Tobacco com
pany, the American Snuff company,
the American Cigar company, the
United Cigar Stores company, the
American Stogie company, the Mac
Andrews & Forbes company, the Con-
ley Foil company and fifty-six other
corporations and twenty-nine individ-
uals connected with the named COM
panies. These corporations and In
dividuals constitute what Is generally
known as the tobacco trust and the
petition directed against them sets
forth the purpose of the government
to dissolve this trust by breaking up
the agreements under which the con-
solidated concerns are working. In
showing the growth of the trust since
its organization in 1890 the cOnclu-
sion is reached that at an early day,
unless prevented it would completely
monopolize the entire tobacco indus
try.
That all of the defendants are en-
gagged in interstate and foreign trade
and commerce in the tobacco and
products manufactured therefrom Is
alleged by the petition. 1t is stated
that the act of July 2, 1890, ito pro-
tect trade and commerce." and sub
sequent acts have been violated and
the government therefore seeks to
prevent and restrain the unlawful ex-
listing agreements, combinations and
conspiracies and attempts to monopo-
lie and break up perfected monop-
olies.
Injunction or Receiver Asked.
The government asks that the exist
ing combinations, conspiracies and
monopolies be enjoined and that each
of the defendant companies be re-
strained from holding or controlling
stock in any other. 1t is asked fur
ther that the Imperial Tobacco COM
pany be enjoined from doing business
within the Jurisdiction of the United
States until it shall cease to observe
the terms of its agreement with Amer
lean companies; that certain defend
ants be declared combinations in re-
straint of trade and be enjoined from
engaging in interstate and foreign
trade and commerce, or that receiver
be appointed to take charge of their
affairs and administer them so as to
with the law.
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 cigarette manufactur-
ers with Joint assets much less than
$25, 100000 and an annual consump-
ton of leaf under 100000 pounds.
The petition shows the subsequent
history. development and growth of
the company until it's total assets
now exceed s275 100000 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 elimina
ton of competitors and destruction of
formidable opposition and the entry
by defendants into various depart
nents of manufacture and trade, do
mestfc and foreign, into tobacco prod
ucts with intent to monopolize.
Worlds Business ParceIIed Out.
The allegation is made that the
members of the combination have
divided up the tobacco business of the
worlI, assigning to each special terri
tory for unmolested exploitation. 1t
Is declared that the consolidated cor
porations annually purchase 475,000,-
600 pounds of the domestic leaf and of
the total produced In the United
States manufacture, sell and dis
tribute more than 2S0,000.000 pounds
$50 per cent? of the smoking and plug
tobaccos, 95 per cent of the snuff, 80
per cent of the cigarettes, rs per cent
of the small cigars, 95 per cent OF the
licorice products, 80 per cent of the
tin foil products and 10 to Is per cent
Of the cigars and stogies; that they
sre rapidly acquiring control Of the
ordinary agencies-jobbers, whole
salers and retailers-through which
tobacco products are distributed.
Of the total annual production of
domestic tobacco, estimated at S00,-
100000 pounds, rs per cent is pur-
chased by the American Tobacco CON-
pany and it's associates and it's allies
at prices which the government al
leges to be unlawfully influenced by
tle combination.
An interesting chapter of the peti-
lion is devoted to methods OF distribu-
ton of tCtacco products. The Amer
lean Tobacco company in 1901, the
letition states secretly acquired con-
trol Of the United Cigar Stores CON-
lany lfor. a long time thereafter de-