The Washington herald., 1907-10-22

The administration launched thunder
bolt in its prosecution of the trusts, when
it announced yesterday the seizure by
the government OF property belonging to
corporations allied with the American To-
bacco Company in Virginia. The seizure
amounted TO only about SIOC0, but the
novelty of the proceeding is none the less
striking for IT is the first instance in
which the Federal government has in
voked section G Of the Sherman antitrust
law, although that statute was enacted
more than seventaan years ago.
Hundreds Of prosecutions have been
made by the government under authority
of the sherman law. and some of the
most radical measures Of the Roosevelt
administration have been instituted under
its provisions but up TO this time section
8 has been a dead letter so far as any
action by the Department of Justice is
concerned. A part of the official notice
given out by Attorney General Bonaparte
in regard 70 the surprising Invocation of
section reads as follows:
"The collector OF customs at Norfolk.
Va, under direction Of the Secretary Of
the Treasury and in conjunction with the
United States attorney for the Eastern
district of Virginia. has seized l75 cases.
containing S.50000 cigarettes. valued at
$7,272J0, which We're in transit from fac
tories of the British-American Tobacco
Company, Limited, located in Petersburg.
Va. and Durham, \. c., 10 New York
and foreign countries.
This seizure was made under section
6 of the sherman antitrust law, which
reads. Any property owned under any
contract. OF by any combination. OF pur-
suant to any conspiracy (and being the
subject thereof mentioned in section OF
this act, and being in the course Of
transportation from one State 10 another,
or 70 a foreign country. shall be forfeited
10 the United States, and may be seized
and condemned by like proceedings as
those provided by law for the forfeiture.
seizure. and condemnation Of property
imported into the United States contrary
20 law
Springs "A Surprise.
The plans for this seizure We're kept Il
profound secret. and It is believed that
the American Tobacco Company and the
allied corporations We're entirely unpre-
pared for the step. The so-called tobacco
trust which consists Of several domestic
corporations which are strongly allied
with several powerful English companies.
Is already under prosecution by the Fed
eral government. the proceeding having
been instituted i'm New York early last
summer. Il is expected that the seizure
of tangible property belonging to the So
called trust will precipitate an action at
law in the courts in Virginia, and, if the
tobacco corporation makes any attempt
10 recover its property and to prevent
its disposition according TO the law OF
seizure many facts of value 10 the gov
ernment prosecutors i'm the principal case
against the trust iu New York viii be
brought out
The Attorney General said
LegnI Fight Expected.
"The information on seizure viii be
filed to-day at Richmond. and viii state
tile cause Of seizure TO DE that the prop
erty was owned under a contract entered
into I'm 1901 by two American tobacco
compauies-that is 10 say, the American
Tobacco Company and the American
Cigar Company-with three great Eng
lish concerns, namely, the Imperial To-
bacco Company Of Great Britain and
ireland. Limited. Ogdcns' Limited. and
the Brtish-American Tobacco Company.
Limited. in which contracts it was
agreed substantially that the American
and English companies should not COM
pete with one another in the territories
given 10 each.
In this contract, the corporations
named in effect divided up the world
among them. so far as the tobacco busi-
ness was concerned. The Information also
contains counts charging that the to-
bacc0 was owned by a combination in
restraint of trade and pursuant to a
conspiracy in restraint Of trade which
Is a mere variation Of the language Of
the charge stating the causes of for
feiture.
This is a proceeding against the prop
erty itself and not against any indi-
viduals. If the owners of the property
want TO make defense. they must come
into court and claim the property, and
file their written pleadings, denying the
charges set out in the information, and
show that the unlawful combination IN
restraint Of trade charged in the in
formation does not in fact exist. This
is the first time that proceedings have
been taken 10 enforce this section Of the
Sherman law"