The Washington herald., 1907-07-11

New York. July 1o-After filing in the
United States Circuit Court to-day the
bin In equity in the Federal governments
action against the American Tobacco
Company, james c. McC. Reynolds. the
governments special attorney, said that
probably criminal prosecutions would be-
gin later against some Of the defendants
in the present injunction recevership pro-
ceedings,
The bill filed to-day charges a con-
spiracy in restraint Of trade, and that
under the Sherman antitrust act IS a
criminal offense. Twenty-nine individuals
are named among the defendants, includ-
ing James B. Duke. president of the
American Tobacco Company; John 3.
Cobb. president Of the American Cigar
Company; William X Harris. chairman
of the board of managers Of the British
American Tobacco Company; Caleb c.
Dula Percival S. Hill, Thomas F. Ryan,
Pierre Lorillard. Peter A. B. Widener.
Anthony \. Brady, and W c. Reed, the
representative in this country Of the In
perial Tobacco Company. Of England.
The bill in equity asks:
First-That the court restrain the Amer
lean Tobacco Company and It's affiliated
concerns. The American Snuff Company,
the American Cigar Company. the Ameri-
can Stogie Company, the McAndrews and
Forbes Company, and the COnley Foil
Company from engaging in interstate or
foreign commerce. or.
Second-If the court should be of the
opinion that the public interests viii be
better subserved thereby, that receivers
be appointed TO take possession Of all
property. assets, business and affairs Of
the companies, and wind up the same.
and otherwise take such course in re-
gard thereto as VIII bring about cOndi-
lions in trade and commerce among the
States. and with foreign nations in har-
mOny with the law.
Asks for Injunction.
The government asks further, that the
Imperial Tobacco Company. the English
Tobacco Trust, be restrained from en-
gaging in interstate or foreign trade with
in the jurisdiction Of the United States
until such time as it shall cease 10 act
in pursuance OF the agreement executed
between it and the American Tobacco
Company, in 1892. providing for a distribu-
tion OF the worlds trade.
The Federal petition asks for a similar
Restraining order against the British
American Company, which is character
tied as an instrument created solely for
the purpose Of peTfeCting the purposes of
the illegal agreement
The Federal government asks further
that the court enjoin each Of the defend
ant companies OF which there are sixty
nine, besides the American Tobacco Com
pany, from holding or owning stock in
any other company, and also that they
be restrained from carrying out, in any
way. the present contracts, commissions,
and conspiracies aimed OF designed for
the purpose OF strengthening the mo-
nopoly.
The petition traces the history Of the
American Tobacco Company from its or
ganizatiOn in 1890.
The government alleges further that
the tobacco trust controls 50 per cent OF
the licorice, and 50 per cent Of the tin
foil products in this country. The Mean
drews & Forbes Company, and the Con-
ley Foil Company are the concerns
through which the American has "a mo-
nopoly on these products.
Unfair Trade Methods.
The government charges that the de-
PENDANTS have. from the beginning, pro-
excessively absorbed competitors and driv-
en- them out Of commerce by Oppres-
sively attacking and threatening them
with "ferocious competition and unfair
trade methods and then buying them in
or through offers Of irresistible sums OF
money.
The defendants viii have until the first
Monday in August 70 answer the COM
plant James 3. Duke, president of the
American. had this to say to-day:
For the past year the Federal Depart
ment Of Commerce has been investigating
our affairs. and in that investigation has
been furnished every possible facility by
US. The Federal Department Of Justice
has also conducted an inquiry into our
affairs Our lawyers have constantly ad-
vised and still advise that our existing
business methods and success do not in
volve any violation of any law and, we
ourselves know that they are not an In
jury or q menace to any class Of the
public-cOnsumeTs Of tobacco. producers
Of tobacco, or investors. Our success is
due to our having served the public bet
ter than ANYBODY else"