The Mena weekly star., 1907-07-18
AE TER TOBACCO TRUST
Government Files Lengthy Petition Against Combine in Federal
 Court at New York.
ASKS THAT 4 RECEIVER BE APPOINTED

Existing Combinations, Conspira-
 cies and Monopoiies EnIoined and
 Defendant Companies Restrained
 From Holding Stock in Others.
 New York, July 1.-The govern ment Wednesday filed in the United States circuit court in this city a petition against the American To- bacco company, the Imperial Tobac- co company, the British-American Tobacco company. the American Snuff company, the American Cigar company, the United Cigar Stores company, the American Stogie com pany, and 56 other corporations and 20 individuals connected with the named companies. These corpora tions and individuals constitute what is generally known as the Tobacco trust" and the petition directed against the msets forth the purpose of the government to dissolve this trust by breaking up the agreements under which the consolidated con cerns are working. In showing the growth of the trust" since it's or ganization in 1890. the conclusion is reached that at an early day, unless prevented, 1t would completely mon- opolize the entire tobacco industry.
 That all of the defendants are en- gagged in interstate and foreign trade and commerce in the tobacco and products manufactured there from it Is alleged by the petition. It is stated that the act of July 12, 1890, Ito protect trade and commerce" and subsequent acts have been yio- lated and the government therefore seeks to prevent and restrain the unlawful existing agreements com binations and conspiracies and at teppts to monopolize and break up perfected monopolies. The govern ment asks that the existing combi nations, conspiracies and monopolies be enjo;ned and that each of the defendant companies be restrained form holding or controlling stock in any other. It is asked further that the Imperial Tobacco company be enjoined from doing business within the jurisdiction of the Tnited States until 1t shall cease to observe the can companies; that certain of the defendants be declared combina- tions in restraint of trade and be enjoined from engaging in inter state and foreign trade or commerce, or that a receiver be appointed to take charge of their affairs and ad- minister them so as to bring about conditions in harmony with the law
 The organization of the tobacco trust, according to the petition, dates from the formation of Ameri- can Tobacco company in 1890 to ac- quire, five competing cigarette man. ufacturers, with joint assets much less than s25,000,000 and an annual consumption of leaf under l5.o00,o00 bounds.
 history development and growth of that company until it's total assets TOW exceed $275,0o0,000 and like wise 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 destruction of formidable opposition and entry by defendants into various departments of manufacture and trade, domestic and foreign, into to- lacco products with intent to monop- olize The allegation Is made that the members of the combination have divided upon the tobacco business of the world, assigning to some special territory for unmolested exploitation It is declared that the consolidated corporations annually purchase 475, 100000 pounds of domestic leaf and of the total produced in the United States manufacture, sell and distrib' ute more than 2S0000.000 pounds (S0 per cent of the smoking and plug to- baccos; 95 per cent of the snuff 80 per cent of the cigarettes, 75 per cent of the small cigars, 95 per cent of the licorice products. 80 per cent of the tin foil products and 10 to 15 per cent of the cigars and stogies; that they are rapidly acquiring con trol of the ordinary agencies-job- bers. wholesalers and retailers through which tobacco products are distributed.
 Of the total annual production of domestic tobacco. estimated at S00,- 100000 pounds. 75 per cent Is pur- chased by the American Tobacco company and its associates and it's allies at prices which the government alleges to be unlawfully influenced by the combination. It Is said that this is in defiance of the usual laws of trade where open competition by many separate and independent con cerns control the prices.