Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1907-07-10
SUIT To DISSOLVE
TOBACCO TRUST
Government Files One in the Unit
ed States Court IN New
York.
g. COMPANIES INVOLVED.
Asks That Existing Combinations
And Attempts to Monopolize
Be Restrained.
Trust Started in 1890 Assets Worth
About SOS, 900, 900 While They Now
Exceed S2.5, 900, 0O0.

New York, July lO.--The government
filed today in the United States court
In this city 8 petition against the Amer
lean Tobacco company. the Imperial
Tobacco company, the British American
Tobacco company, the American Snuff
company, the American Cigar company,
the United Cigar Stores company, the
| American Stogie company. the MacAri-
drews and Forbes company the Conley
Foil company and SO other corporations
| and % individuals connected with the
named companies. These corporations
| and invidivuals constitute what is gen.
orally known as the tobacco trust
| and the petition directed against them
sets forth the purpose Of the govern
| ment to dissolve this trust by breaking
up the agreements under which the
consolidated concerns are working. In
showing the growth OF the trust since
| is organization In 1890 the conclusion is
reached that al an early day. unless
prevented, il would completely monop-
oliSe the entire tobacco industry
WHAT PETITION ASKS.
That all Of the defendants are en-
gagged In interstate and foreign trade
and commerce in tobacco and products
manufactured therefrom Is alleged by
the petition. IT is stated thar the act
| Of July ?. 1890, ito protect trade and
commerce, and subsequent acts have
been violated and the government
therefore seeks TO prevent and restrain
the unlawful existing agreements. corn
binauons and conspiracies and attempts
to lnonopolize and break up perfected
monopolies. The government asks that
the existing combinations copspiracies
ana monopolies be enjoined and that
each OF the defendant companies be re-
strained from 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 United states
unless Il shall cease to observe the
| terms Of It's agreement with the Amer
| lean companies; that certain OF the de-
| PENDANTS be declared combinations In
| restraint Of trade and be enjoined from
engaging in interstate and foreign trade
and commerce, or that a receiver be ap-
pointed to take charge of their affairs
and administer them so as to bring
about conditions in harmony with the
law.
HISTORY OF THE TRUST.
The organization OF the tobacco trust,
according to the petition, dates from
the formation of the American Tobac-
co company In 1880 to acquire five COM
peting cigarette manufacturers with
joint assets much less than s25.0OO 900,
and an annual consumption OF leaf I'M
der l500o,00O pounds.
The petition shows the subseuuent
history, development and growth OF
that company until its total assets now
exceed s215 900, 900 and likewise the orr
gin and manipulation of scores of Gre
ated. acquired and controlled corpora
tons utilized as agencies to accomplish
the general design; the progressive alb
sorption and elimination OF competitora
and destruction OF formidable opposi-
ton and the entry by defendants into
various departments of manufacture
ana trade, domestic and foreign In to-
oacco products with intent to monopo-
lie. The allegation Is made that the
members OF the combination have di-
waco UP the tobacco business of the
world. assigning 10 each some specIal
territory for unmolested exploitation n
is declared that the consolidated corpo-
rations annually purchase ATE 600 000
pounds of domestic leaf and of the 10.
tai produced in the United States man
rfacture. sell and distribute more than
1000 pounds $50 per cent? of the
or the snuH; so per cent OF the cigar
cites; rs per cent of the small cigars.
70 per cent of the licorioe products. "a
per cent OF the tin foil products and IN
To 10 per cent OF the cigars and stoeies.
that they are rapidly acquiring control
or the ordinary agent ies-jobbers.
wholesalers ana retailers-throueh
which tobacco products are distributed.
or the total annual production OF do
nestle tobacco, estimated at 500 600 000
pounds, rs per cent IS purchased nv the
American Tobacco company and IFS as
soeiates and allies at prloes which Inc
government alleges TO be unlawfuliy In.
huenced by the combination. II is said
that this Is In defiance OF the us,,aI
laws of trade where open competition
by many separate and independent con-
Germs control the prices.
AM TOBACCO COMPANY.
The petition continues:
THE American Tobacco com,anv M
New Jersey, organized IN 1890 with
s25. 900 900 capital, took over inc busJ.
ness OF Allen q Ginter OF Richmond.
W. Duke Sons & Co., OF North Caro-
lima; Kinney Tobacco company: w. &
Kimball g. Co, and Goodwin 4, ca M
New York, ana thereby acquired con
troll of the manufacture. trade ana
commerce IN cigarettes. II was Inn
Its formation the Interested parties ne
gan 10 extend It's operations and with
otherf united from time to time have
steadily sought through II 10 acquire
dominion power and TO monopolise Ia.
different branches OF the tobacco in
dustry. This company has the prln-
cipal agency through which the de.
signs OF the combination have been ac-
compllshed. but many different coTpor-
ations have been organized, the control
OF many Others has been secured, ana
IN various ways these have been mani-
pulated and utilized"
OPERATIONS OF MONOPOLY.
The operations OF the monopoly ac-
oording 20 the petition, have been
along this general plan no acquire
through other eonfederated companies
the business Of successful opponents.
taking from owners ana managers and
thereafter 10 engage IN the tobacco
business to drive out other companies
by destructive competition. to deter
any who might wish to engage IN the
tobacco trade; and, finally, TO gain
control OF the agencies through which
the tobacco products vera distributed,
II IL said these things have been ac-
compllshed by means OF the increasing
power and forces OF the combination