The news-democrat. (Providence, R.I.) 1906-1909, 1907-07-10
GOVERNMENT IS
HOT AFTER THE
TOBACCO TRUST
CONTINUED from Page one.)

| tCOntlnued from rage One.)
| The organization OF the tobacco trust
dates from the formation of the AmerI-
can Tobacco company In 1920 to acquire
| Ave competing cigarette manufacturers
with joint assets much less than $25, 900, 900.
and an annual consumption of leaf under
| 100000 pounds. The petition shows sub
| sequent history and growth of that com
pany until its total assets now exceed
| s275. 900. 900. and likewise the origin and
manipulation OF scores OF created, ac-
quired and controlled corporations util-
lied as agencies to accomplish the general
design; the progressive absorption and ell
mination OF competition and destruction
OF opposition and the entry by the defend
ants into various departments OF manu-
facture and trade, domestic and foreign,
into tobacco products with intent to mo-
nopoize. The allegation Is made that the
members OF the combination have divld-
ed up the worlds tobacco business. IL Is
declared that the consolidated corpora
tions annually purchase AIS. 10000 pounds
OF domestic leaf and of the total produced
In the United States manufacture. sell and
distribute more than $50. 100000 pounds.
OF the total annual production OF do
nestle tobacco. estimated at S00.O00.O 900
pounds, 70 per cent is purchased by the
American Tobacco company and Its as
SOCRATES ana dllleS Ut prices WHICH tne
government alleges TO be unlawfully In
fiuenced by the combination. The petition
continues:
THE American Tobacco company OF
New Jersey organized in 1890 with $2500o,-
600 capital. took over the business OF Allen
e. Ginter Richmond; w. Duke Sons a
Co. of North Carolina; Kinney Tobacco
company. w. S. Kimball & Co. and Good
win g. Co.. OF New York and thereby
acquired control OF the manufacture
trade and commerce In cigarettes 1t was
Immediately successful and shortly after
It's formation the interested parties begin
10 extend it's operations and with others
united from time to time have steadily
sought through II TO acquire domain over
and to monopoize the different branches
OF the tobacco industry.
OPERATION OF THE MONOPOLY.
The operations of the monopoly, ac-
cording TO the petition, have been along
this ground plan:
To acquire through one OF the confed-
Grated companies the business OF success
full opponents. taking from owners and
managers agreements not thereafter to
engage I'm the tobacco business: to drive
out other opponents by destructive COM
petition; to deter any who might wish TO
engage In the trade and finally to gain
control OF the agencies through which
tobacco products were distributed. II IL
sald tnese tnlngS nave Deen accomplished
by means of the increasing power and
resources of the combination and by ac-
quiring control interests in the stock OF
corporations thereafter operating with
out competition. Many kinds of unfair
trade have been resorted 10. II Is said, a
favorite one being TO cause a corpora
tlon secretely controlled to advertise st.
self as wholly Independent and free from
association with trusts and combinations
to offer Its goods below cost, to initiate
competing brands, and in these ways TO
use the same for the destruction of real
independents.
The American Tobacco company in 1901.
the petition states, secretely acquired
control OF the United Cigar Stores COM
pany (for long time thereafter denied)
and through It retail stores are estab-
lished in tbs large cities which, by rea-
son OF the powerful support and infiu-
ence OF the combination. quickly secured
a dominating position In the trade and
destroyed competitors.
CRIMINAL PROSECUTION.
James G.. McReynolds. the special as
sistant attorney general who filed the
complaint in the tobacco case said today
that criminal prosecution of some OF the
defendants named in the case was highly
probable: that the Sherman law under
which the action Is brought makes a
conspiracy In restraint of trade a GRIM
inal offeDse.