The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1908-05-19
Proceedings Begun Today
Which May Work Disaster
With the Great S500.000,-
600 Combine.
TRUST is CONTROLLED BY
EIGHT MEN OR ESTATES.
Combination Has Secured a
Monopoly on the Tobacco
Business of Two Continents
And Great Britain.

New York. May 19-Proceeesess
which may result in the entire disso-
luton of the s500.000.000 combine
which practically controls the tobacco
business of the country were COM
menced today in the United States cir
cult court. The case OF the Govern
ment against the American Tobacco
company is set for hearing today. and
while the brilliant legal talent employ
ed by the trust" may be able TO ward
off the blow for p time. IL is alleged
that sufficient evidence has been pro-
cured TO bring about the forcible dis
solution of the combine by the federal
government. acting under the Sher-
man antitrust law
In addition to the American Tobacco
company, the government suit names
as defendants more than sixty allied
and subsidiary companies, and about
twenty individuals connected there
with Among the concerns affected
are the American Cigar company. the
United Cigar Stores company, the Am
eriCan Licorice company.
The American Tobacco company
was incorporated Oct 10. 1904. in New
Jersey. as a consolidation of the Am
erican Tobacco company. the Consoli-
dated Tobacco company and the Con
tinental Tobacco company. 1t has
$4,000, 900 common STOCK and SIS, ,700.-
600 preferred stock The preferred
stock has no voting power. that being
solely vested in the common stock,
which is limited to 6 per cent earning
power.
According TO a statement by Special
Prosecutor McReynolds. the evidence
gathered by the government shows
that the American Tobacco company,
with its S274 900, 900 of assets. and the
subsidiary companies with their $780,
100000 OF assets. together with the
British-American Tobacco company,
with its s100,000.00 of assets-mak-
ing nearly $500. 900 900 in all-are con-
trolled by eight men or estates.
These eight men. or estates. by a
characteristic exercise of high
finance control the whole $500 Ooo.-
600 combine through their ownership
of a majority of the 100000 Of COM
mon stock OF the American Tobacco
company, the parent concern. To do
this they need hold but S21 100000 OF
the stock
These eight men or estates are
Jane y. Duke. Thomas F. Ryan. An
thonx : Brady BENJAMIN n, Duke,
Col. er H. Payne: the estate of the
late William l.. Elkins. of Philadel-
phia; Peter A. B. Widener. OF Philadel-
delphia. and the estate of William c.
Whitney.
Ryan owns Go.Ooo shares of the
common stock and draws an income OF
nearly 5000 a day, or 100000 a
year, from his trust holdings. Col.
Payne owns 5000 shares. the EIkins'
estate owns 10.ODo shares. President
Duke holds 1900 shares and George
Arents of this city, one of the origi-
nal organizers. holds 12,OOO shares.
The trust has been doing. until the re-
cent slump. tremendously profitable
/ business. paying as high as % per cent
dividends. The dividends on the
preferred are'not limited in amount
The trust is controlled by the Ryan
Syndicate. which first organized the
Union Tobacco company. and then
dubbed the American Tobacco COM
pany into absorbing them at a fancy
price. after which the Ryan crowd pro-
ceeded to snatch the reins from those
whom they found in power.
The executive brains Of the trust is
President Duke. who began life in the
South without means. The financial
brains of the combine. since W. c.
Il
Ryan.
The tobacco trust has practical
monopoly of the cigar. cigarette.
licorice. cheroot and chewing and
smoking trade in North and South
America and Great Britain.