New-York tribune., 1907-07-11

the control of the tobacco industry in Great Britain
" !en the British-American company formed
lIle entire tobacco trade Of the world with the
ception Of that in the United States and Great
Britain. turned 10 it, the American To-
oacco Company retaining the Anne riCan field and the
imperial Tobacco Company that in the British
isles The government maintains that the British
American company exercises "a monopoly this
countrys export tobacco trade. The court is asked
also TO exclude the Imperial Tobacco Company from
operations mere until IL shall disregard the terms
Of the agreement made in September. 1862 by which
IL undertook 70 keep out of the American field in
return Tor Ike promise from the American COM
faly TO refrain from competition in Great Britain
Aftfr asking that all the defendants be restrained
by the court from engaging IN interstate OF foreign
trade a petition is made for receivers for ths
property, assets, business and affairs Of the de
PENDANTS, If the court should be Of opinion thai
iHe bv public interests viii he better snoserved there
In speaking OF The application for the receiver
snip, Mr.. McReynolds said that il the opinion
oI me government officials that when the case
came TO trial II would be concusively proved that
each and all of the defendants were in a combina-
uoI.' "hlch exercised an almost complete monopoly
OF ihe tobacco business. The Sherman law and
other antitrust laws passed subsequently by Con-
srtSS give the courts entire power to shut out the
defendants from continuing in business.
lEeaIl2lnS that such drastic action. If taken i'm
medlately. would mean great hardship for the gen
eral public, the government suggests the appoint
ment Of the receivers as the only way out of the
difficulty. Mr.. McReynoIds seems to feel confident
that the courts have 1t within their power to take
such action and compel the dissolution of the
trust as far possible into the original componeut
established S'''''
THINKS RECEIVERS PROBABLE
because such petition has never been pre-
sented before he said. 1t does follow that
the application for receivers will upheld by
the courts. The question may he said to be a prob-
lem which has long been forming for solution in
the industrial history of the country. and
the time to solve it. before competition is wiped
out and becomes impossible # is a suggestion for
the relief Of the present iutolerahle situation and is
me best We have been able 10 make we shall not
insist on the receivers if the courts can suggest
/ some better remedy which may meet the needs ot
the situation The absolute observance of an in
junction against the tobacco companies # II
granted by the courts might shut off a the
supply Of tobacco but receivers representing the
government might prevent such a public dePriva-
tion, for they could supervise The workings of TIE
businesses now under trust domination and
that tney were continued, but IN entire conformity
to the law
Lawyers in general were unprepared to give
opinions OF the governments action or 70 say how
SucI d Fan'cai move would he regarded by the
courts. II will be a long and bitter fight every
step Of The way and Il is certain that the Tobacco
trust VIII spare no expense in fighting off the pro
posed governmental supervision and disintegra-iou
Of its business
The expressed waving on the part of ,ho GOV
ernment Of the right of demanding answers under
oath from the defendants gave the tobacco com
panys officials something else besides the receiver
ship suggestion think about. II Is uul.kev how
ever that the government viii take any steps in
The immediate future To have the compsnys
officials indicted for conspiracy. although such
Ion was taken in the case Of the presidents of the
MacAndrews & Forbes COMPANY and The J. (
ouhg company, of Baltimore, last winter, when
he workings Of the ncorice paste
brought to the attention Of the court
Both OF The companies convicted but the
jury I'm the United States Circuit Court absolved
Karl Jungbluth and Howard + Young. the TWO
presidents. from the charges made against them.
The Tobacco Trust fought that case vigorously.
and although the companies convicted. con
sidered that the case had been in the acqut-
raj of the individual defendants Il was said a.
the time that while the ordinary business
looked vith dsfavor upon the methods and opera
lions Of a trust and would not hesitate In imposing
upon corporatioHs violating ;he antitrust laws
substantial penalty lie felt difidence in i'm
posing the hardsiips Of Imprisonment upon indi-
Yduai officers Of the corporation
II is questionable, however whether the ordinary
business mans sympathy and admiration for the
ingenuity shown by his brother business man in
tend 10 the officials OF the Tobacco Trust in
charges Of conspiracy IN restraint OF trade
Trough, against them.
SLUMP IN STOCK PRICES.
American Tobacco securities We're weak on the
Stock Exchange and in the curb market while the
entire list Of securities was depressed under the
influence cf selling based in part the action Of
the government In bringing suit against the To-
bacco Trust American Tobacco preferred declined
2Ss and the bonds ~ and l% for the IS and 6s,
spectively. hile the curb the stock dropped -
points small transactions.
The American Tobacco Company was organized
in October 1904. rs a merger Of the old American
Tobacco Company, the Consolidated Tobacco Com
pany and the Continental Tobacco Company. A.
the time of the merger the outstanding stocks and
bonds Of the three companies amounted TO $3.50 l50.
90. The American Tobacco Company was
formed Rith authorized capital Of SlSiOJOOO0 Of
which StO.ytgjJ per cent preferred and
SlgGG,og0 common stock, a large issue OF per
cent bonds also put out by the company. and
months after the formation Of the combination
the outstanding capital amounted S255, Do 100.
Since that time the company mas purchased and
cancelled bonds 10 the Of S2il01 10 leaving
its present capitalization s231 l9 $50 which is
S133 5s,O5) less than the total capitalization Of The