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


the petition shows how the combina-
TONS in these countries, wearying Of
competition. in 1902 entered INTO written
agreements each not to interfere with
the other along certain well-defined
lines and together forming the Imperial
Tobacco Company to carry on the trade
and in other countries with
out competition. The government de-
elares that this division of the world
has ever since been strictly observed
and the three companies with their al
lies and associates have all been apera-
ted in concerted harmony.
An interesting chapter of the petition
is devoted to methods of distributing
tobacco products. The American To-
baoco Company in 1901. the petition
states, secretly acquired control Of the
United Cigar Stores Company (for a
long time thereafter denied), and
through 1t retail tobacco stores are es-
tablished in the large cities. which, by
reason of the powerful support and in
fiuence of the combination, quickly Sc
cured a dominating position in the
trade and destroyed competitors.
The individual defendants include
James B. Duke, president of the Ameri-
can Tobacco Company since it's, organ-
~ization, who is also a member Of the
board of managers of the British-Amer-
lean Tobacco Company and of the I'm
perial Tobacco Company; John J.. Cobb,
Caleb c. Dula, Robert B. Dula. William
r. Harris and Percival S. Hill, vice.
presidents of the American Tobacco
Company; w. c. Reed, American agent
for the Imperial Tobacco Company.
with an office in Richmond, Va; Oliver
II. Payne, Thomas F. Ryan, Anthony
N. Brady. Benjamin N. Duke. IL. NJ.
Hanna, Pierre Lorillard, Grant B.
Schley, Peter A. B.. Widener and Will
hanson w. Fuller. general counsel for
the American Tobacco Company. With
the exception of Mr.. Fuller and Mr..
Reed, the defendants named are all d.
rctors Of the American Tobacco Com
papy.
Probable criminal prosecution OF some
of these defendants is limited ut by
Judge McReynolds. who investigated
the trust for the government.
In reply to a question whether he in
tended to urge the court to appoint re-
ceivers for the various corporations,
Mr.. McReynolds said he could decide
that after hearing the evidence given
by the witnesses.
"What precedent have you for ask
ing for the appointment of receivers 2
he was asked.
1.-THE Sherman law, under which this
action is brought replied Mr.. Nc
Reynolds, provides that the court may
restrain and prevent the operations Of
a combination. If the court finds that
the appointment of receivers is neces-
sary to prevent operation of this COM
bination 1t may appoint them. We ask
| the court to enjoin these companies.
II 1t did so 1t might prevent men from
buying tobacco, but If receivers are
appointed the business would be con-
tinued, the public would not be en-
barrassed by inability to purchase %
bacco, and the receiver might sell off
the various factories to independent
concerns, thus effectively dissolving the
combination"
Mr.. McReynolds said he had no idea
how soon the taking of evidence would
begin.
WASHINGTON, July 1O.-when told
of the statement made by Special
united States Attorney. James G.
| McReynolds, in charge of the prose-
cution of the tobacco trust. to the effect
that a criminal prosecution of the prin-
cipal people connected with the trust
was highly probable, Attorney-Genera
Bonaparte said today that that phase
of the matter had been n still wa'
under consideration by h department
No decision, however, has beef
reached and no nouncemen ould b.
made at this time regarding it. 1
seems more than probable that if any
criminal action is begun at all 1t vii
only be after the trial under the pres
ent bill of complaint is concluded oil
until 1t has so far progressed as to war.
rant such proceedings.