The evening star and Newark advertiser. [volume] (Newark, N.J.) 1907-1908, 1907-07-10

~ &tNENH int [AAG
question whether he would urge the
court to appoint a receiver for the vari-
ous companies would depend entirely
upon the evidence sucured from the
witnesses summoned upon his COM
plant.
A significant feature of the complaint
is the waiver of the right of demanding
answers under a from corporations
and individuals named as defendants in
his complaint, as the making of such
answer under oath might confer i'm
munity from prosecution.
These corporations and individuals
constitute what Is generally known as
the Tobacco Trust" n the petition
directed against them sets forth the
purpose of the government to dissolve
this trust by breaking up the agree
ments under which the consolidated
concerns are working. In showing the
growth of the trust since its organiza-
ton in 1890. the conclusion is reached
that at an early day, unless prevented,
1t would completely monopolize the en-
tire tobacco industry.
That all of the defendants are en-
gagged In interstate and foreign trade
and in leaf tobacco and prod
~ GU lncltlTOIn Is dllck6Q
by the petition. 1t is stated that the
act of July 2, 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, COM
binations and conspiracies and attempts
to monopolize. and to break up monop-
olies. The government asks hat the
existing combinations, consplracies and
monopolies be enjoined, and that each
of he defendant companies be re-
strained from holding or controlling
stock In any other.
1t Is asked further that the Imperial
Tobacco Company be enjoined from
doing business within the Jurisdiction
of the United States until it shall cease
to observe the terms of It's agreement
with American companies; that cer-
tain of the defendants be declared
combination in restraint of trade, and
be enjoined from engaging In inter-
state and foreign trade and commerce,
or that a receiver be appointed to take
charge of their affairs and administer
them so as to bring about conditions
in harmony with the law
The organization of the tobacco trust,
according to the petition, dates from
the formation of the American To-
bacco Company in 1890 to acquire five
competing cigarette manufacturers,
with joint assets much less han $685.
600. 900, and an annual consumption of
leaf under $1,000, 900 pounds.
The petition shows the subsequent
history, development and growth Of
that company until its total assets now
exceed $275, 900. 900, and likewise the
origin and manipulation of scores Of
created, acquired and controlled cor
porations utilized as agencies to ac-
complish the general design; the pro-
gressive absorption and elimination of
competitors and destruction Of formula
BILE opposition, and the entry by de-
PENDANTS into various departments of
manufacture and trade, domestic and
foreign, into tobacco products with in
tent to monopolize.
The allegation is made that the MEM
bers of the combination nave divided
up the tobacco business of the world,
assigning to some special territory for
unmolested exploitation.
1t is declared that the consolidated
corporations annually purchase 475. 000,-
600 pounds of domestic leaf, and of the
total produced In the United States
manufacture, sell and distribute more
than $50, 900, 900 pounds $50 per cent?
of the smoking and plug ~tobaccos, 95
per cent. of the snuff, 80 per cent. Of
the cigarettes, 70 per cent. of the small
cigars, 95 per cent. of the licorice
products, so per e of the tinfoil
products and 10 to Is per cent. of the
cigars and stogies; that they are rap
idly acquiring control of the ordinary
agencies-jobbers. wholesalers and re-
tailers-through which tobacco
products are distributed.
OF the total annual production Of
domestic tobacco, estimated at 800, 000,-
900 pounds, rs per is purchased
by the American Tobacco Company
and its associates and its allies at
prices which the government alleges
to be unlawfully influenced by the
combination. 1t is said that this is in
defiance of the usual laws of trade
where open competition by many sep
arate and Independent concerns con-
troll the prices.
The petition continues:
1.-THE American Tobacco Company Of
New Jersey, organized in 1890. with
$25, 900. 900 capital, took e the BUSH
ness OF Allen u dlHleT, Oh flCHtIlJIu1
w. Duke Sons & Co., of North Caro-
lima; Kinney Tobacco Company. w. S.
Kimball & Co, and Goodwin & Co, of
New York, and thereby acquired con-
troll of the manufacture, trade and
commerce in cigarettes. 1t was i'm
mediately successful, and shortly after
its formation the interested parties
began to extend its operations. and
with other united from time to time,
have steadily sought through 1t TO ac-
fquire dominion over and to m~onopolize
the different branches of the tobacco
industry. This company has the prin-
cipal agency through which the designs
of the combination have been accom-
plished, u many different corpora
tons have been organized. the control
of many others been secured, n in
various ways these have been manipu-
lated and utilized"
The operations of the monopoly, ac-
cording to the petition, have been
along this general plan: To acquire
through one of the confederated COM
panies the business of successful OPP
ponents, taking from owners and man
ayers agreements not thereafter to en-
gage in the tobacco business; to drive
out other opponents by destructive
competition; to deter any who might
wish to engage in the trade, and final
1u IN gain aonfrol of the panrtaG