The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1907-07-11

with AHeticnn companies; that certain
I VI the defendants be declared com
! bihations IN restraint of trade, ana
sba enipined from engaging IN inter
atate and foreign trace and com
n1ercc, or that receiver be appothrte'
sotake charge OF their affn.rs ana AZ
Minister them SO as to BRING ahou'
ronditions inf harmony with the law.
Controls Entirc business.
,rhe petition shows tho history ae'
rsaopment and growth of the AMER
4 rdrt company from 1890 UNI NGN "s
total assets exceed s2i5"o",u"u. utu
likewise the origin and nanlpulaue:'
~ scores az created, ACQUIRED ans S"n-
4,,oI1ea corporations. utilized ms ascn-
4 ,,je. ~ accomplish the genera! destg'f
a sha nrorressive absorption and eliinlha.
in,, ar competitors and destruction o.
rormidable opposition anu tho en..
Nv attendants ;nto Snrscus depa E.' wee 20
nj manufactures and trade. uol'ie 'ss,,,,
(. nnd forcien. in tobacco proourts WV
intent to monopoll"e' n,. ~,
tThe allegation Is MADE va ~
members of the coinofna.i'o , or 40
iIled Hup tine tobacco business mess. ~ -. w
SibrId assigning to some spcciai yer
~ nt,toiestea exploitation ~ j
f1aclarea that tho consolida',o.u o ~, n n"o
Satlons annually purchase f,'fue0'.No
mounds OF domestic Leaf, anu y. W. wy.
Total produced in the uni.eu L..s,,a.
lsnanufarture sell and distribute tlorS
,'ssn 400 On pounds $50 per cent,)
snf the smoking and plug topaccos, Y.
war cent. of the snuff, SO per cent %
fpe cigarettes. 70 per cent OF the slllall
cigars, s5 per cent. of the licorics pro
.xluots, 30 per cent, Of the TIN ioll P i,
fdticts, and 10 10 - pcs cen' % ''te
cigars and stcg!cs; that they hls lap
i16ly acquiring control of the ordlharE
q Observation-Disclosures wholesalers ana re-
fai,ers through which tobacco products
IRE distributed.
or the total annual production OIL
domestic tobacco. estimated at So''
100000 pounds, 70 per cent. Is Put-
chased by the American Tobacco COM
many and it's associates and its allies
at prices which the government al
ieres to be unlawfully influenced by
the combination =
II is said that this is in defiance of
the usual laws of trade where open
rompetition by many separate and in
4 dependent concerns control tue prices
Buy Up Independents.
The operations of the monopoly. ac-
cording to the petition, have been along
this general pIan. u uSuuiie hIiiou u
one OF the confederated companies the
business of successful opponents. talk
ing from owners and managers agree
anerts not thereafter to engage IN the
Sohacco business; to drive out other
opponents by destructive competition
to deter any who might wish to en-
gage In the trade; and finally TO galr
control OF the agencies through which
Il tobacco products We're distributed. i
is said these things have been accom-
plished by means of the increasing
power and resources of the combina
zion and by acquiring controlling in
teresis in the stock of corporation
thereafter operated without compei
ton. Many kinds of unfair trade meth
DDS have been resorted to, 1t is said
n q favorite one being to cause a cor
pornt1on secretly controlled to ad
yertise itself as wholly Independent
and free from association with trust
and combinations. to offer its good
below cost, to initiate competin
brands, and in these ways to use TN
same for the destruction of real in
dependents.
Spreads to All Quarters.
After reciting the bitter trade ";
between American and English col
Germs, the petition shows how Il
combinations in these countries, wear.
ing of competition in 1902 entered in
written agreements each not TO int
fere with the other along certain We
defined lines, and together forming I
Imperial Tobacco Company to car
on the trade and commerce in och
countries without competitions I
government declares that this divis
of the world has ever since been stric
~ observed, and the three compan!
with their allies and associates ha
all been operated in concert and ha
Inony.
An interesting chapter of the pc
ton is devoted to methods of distr
buting tobacco products. The Amc
can Tobacco Company in 1901 the +
titIon states. secretly acquired contr
of the United Cigar stores Compa
(for long time thereafter deniedl, a
through it retail tobacco stores are {
tablished in the large cities, which,
reason of the powerful support n
iunuence of the combination, qucl
secured a dominating position in
trade and destroyed competitors.