The sun. [volume] (New York [N.Y.]) 1833-1916, 1907-07-11
NEUTRALITY-SUSPICIOUS.
THREATENED, BESIDES THE RE-
OWNERSHIP SUITS.
nsiIl In Equity Filed Here Yeste rdsy Alleges
FNrOc,ous Competition. Unfair Trade
Methods. Imitation Of Trade Marks
and False Pretences Of Independence.

After fling in the United States Circuit
Court here yesterday the bill in equity IN
the Federal Governments action against
the American Tobacco Company. James G..
McReynolds, the Governments special at
torney. said that criminal prosecutions will
probably be begun later against some Of
the defendants. The bill filed yesterday
charges a conspiracy in restraint of trade,
and that under the Sherman anti-trust
act In a criminal offence. Twenty-nine in
dividuals are named among the defendants.
including James Il. Duke. president OF the
American Tobacco Company; John Is. Cobb,
president Of the American Cigar Company:
william X. Harris. chairman OF the board
OF managers OF the British American To-
bacco Company; Caleb {. Dula. Percival =.
Hill. Thomas F. Ryan. Pierre Lorillard,
Peter A. b. Widener. Anthony N Bradv
and W G. Reed, the representative in this
country OF the Imperial Tobacco Company
OF England. The bill in equity asks:
l. That the court restrain the American
Tobacco Company and its affiliated con-
Germs. the American Snuff Company. the
American Cigar Company, the American
Stogie Company, the McAndrews 4 Forbes
Company and the Conley Foil Company,
from engaging in interstate or foreign COM
merce, or
2. If the Court should be OF the opinion
that the public interests will be better
subserved thereby that receivers be APP
pointed to take possession of all property,
assets, business and affairs Of the COM
panies and wind up the same. and otherwise
take such course in regard thereto as will
bring about conditions in trade and COM
MERGE among the States and with foreign
nations in harmony with the law.
The Government asks further that the
Imperial Tobacco Company. the English
Tobacco Trust. he restrained from engaging
in interstate or foreign trade within the
jurisdiction OF the United States until such
TIM as 10 shall cease to act in pursuance
of the agreement executed between il and
the American Tobacco Company in 1902
providing for a distribution Of the worlds
trade. II asks for n similar restraining
order against the British American Com
pany. which is characterized as an instru-
ment created solely for the purpose of
perfectinR the purposes OF the illegal gree
ment. The British American Company
requires annually about 20, 900, 600 pounds Of
American tobacco. and the Imperial com
pany also draws upon us for a large supply.
A restraining order such as the Govern
ment seeks would prevent the compa MES
from trading in American raw material
The Federal Government asks further
that the court %enjoin each of the defendant
companies. of which there are sixty nine
besides the American Tobacco Company.
from holding or owning stock in any other
company. and also that they he restrained
from carrying out in any way the present
contracts. combina tons and conspiracies
designed to strengthen the monopoly.
The petition traces the history Of the
American Tobacco Company from it's or
ganization in 1890. and gives its total
output in 1905. compared with the total
for the United States. as follows:
Derend1nt,'
T0tGI Us. output.
plug hhd smoking
Snun pounds. ........... 23GoO!ODO % GOOOUI
Cigarettes. ,...,....;.. o.32sOoOU 4,goOOOVOO
Cigars. stoglrS. &c. .......7 SIS OOOOO Sts,IS5OOO
The Government alleges further that the
toba eco trust controls o. per cent. Of the
licorice and 80 per cent. Of the tinfoil prod
ucts in this country through the Nc
Andrews Il Forbes company and the
Conlcy Foil Company: also that the de-
PENDANTS have progressively absorbed COM
petitors and driven them out of
I'M NAAIV I'M ~ On ~
tRsm with "ferncions connno,;,i"n nuf
Unfair trade methoIs y and IT, anu
,ham In or hromoh - ~ rr JuyIus
smms az money Au ,his nnss ip
nnlv thronyh ,b.;r n,.rma %H p1n an
and rasonrcas in co,nhina.inn ~ III Powwel
Gnvarnmsnt aliagss has III, tne
con,netit;on innnss;hla '' """'o ehec'i'e
IT, 10 f,rtbar .IIogad ,ha, ,bo u
has not oniv comnaliad its NV nnIerIoah
.aII thar hvs;nosSns ,n ,ha IN '1oIs 70
To- mada ,han, ahG,a,n thus., pu. mas
rayrain from enc ,ing 81 H. ,ehneas 10
na.s u'itbon, ~ 800 - nnea pus'-
"oo y nts sn snn,raJ y w. =
aha,a aanara H. %aan nayS Ine toinPla,ht,
but ,bs M massn nd Ira "a ~ aD"nuoneu
Ia onpoarns hawa baam tnese ahu o,ner
oan,ion with ,ha 1871 oJun u ~ useu "a con-
hs, ,ha daSandn ~ oud ~ biun.s Operated
ny , Wv !, eaLrion my "Ht peth 500
srs 'Ous Wy '"e o''s'nai max
srh. do,o,don. . l. .a
uatn5 and a.a " - aaSseu' nave coh-
sHGn "a az" ooatrnI 10 ootceanne 'neir
anp ~ Sn.i' .o,hiahies WHICH are
apPeahnk ~, JislneSSo ne n"sis tnat tney
. Tnoity nnusprmueht 4l the trust. The
p.onnioh "ddaoatrlHeS 'ILs az an attempt
O"h7'ch'' nVSciN anu uNiIduu tue puDnC