Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1908-05-19
70 PROBE TOBACCO TRUST.
Proceedings Begun to Dissolve $780,
100000 Corporation.

New York, MMay 19-Proceeding
which may result in the entire disso-
luton of the $500, 100000 combine
which practically controls the tobacco
business of the country were com-
menced today in the United States
circuit court. The case Of the gov
ernment against the American Tobac-
co Company is set for hearing today.
and while the brilliant legal talent
employed by the trust" may be able
to ward off the blow for time. 1t Is
alleged that sufficient evidence has
been procured to bring about the fore
ible dissolution Of the combine by the
federal government, acting under the
Sherman antitrust law.
In addition to the American Tobac-
co Company, the government suit
names as defendants more than six
ty allied and subsidiary companies, and
about twenty individuals connected
Herewith. Among the concerns at
fected are the American Cigar Com
pany, the United Cigar Stores Com
pany, the American Snuff Company,
and the American Licorice Company
The American Tobacco Company
was incorporated Oct. 10, 1904, in New
Jersey. as a consolidation Of the Amer
lean Tobacco Company, the ConsoH-
dated Tobacco Company, and the Con-
tinental Tobacco Company II mas
SAC, 100000 common stock and $7S,70O,-
900 preferred stock. The preferred
stock has no voting power, that De-
ing. vested in the common stock, Wh1cn
is limited to 6 per cent earning power
According to statement by Spe-
cial Prosecutor McReynolds, the ev1-
dence gathered by the government
shows that the American Tobacco,
Company, with its $274,o00,000 of as
sets. and the subsidiary companies,
with their $100O0O,00O assets, togeth-
er with the British American''Toba
co Company. with it's 100000 OF
nearly s5O0,000,0QO In
all-are controlled by eight men or es-
tates.
These eight men, or estates, by a
characteristic exercise of high
finance" control the whole $500 ,0OO,-
600 combine thru their ownership OF
a majority of the $40,000.000 OF COM
mon stock Of the American Tobacco
Company, the parent concern. To do
this they need hold but $2l,OOO,O0 OF
the stock.
These eight men or states are
James b. Duke, Thomas F. Ryan.
Anthony N. Brady, BENJAMIN N.
Duke, Col oliver n. Payne; the es-
tate of the late William L. Elkins.
Of Philadelphia: Peter A. 3. Wide
ner, Of Philadelphia, and the estate
of William c. Whitney.
RYAN owns $4,000 shares OF the
common stock and draws an income
of nearly $4,000 day, or 100000 a
year, from his trust holdings. Colonel
Payne owns $1,000 shares, the Ekins'
estate owns 10000 shares, President
Duke holds $4,000 shares, and George
Arents. Of this city, one Of the original
organizers, holds 10000 . shares. The
trust has been doing, until the recent
slump, a tremendously profitable bus
mess. paying as high as % per cent
dividends. The dividends on the pre-
ferred 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 fancy
price. after which the Ryan crowd
proceeded 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 finan-
cial brains of the combine. since w.
c. whitney's death, has been Thomas
F. Ryan.
The tobacco trust has practical
monopoly Of the cigar. cigaret snuff.
licor.ce, cferoot and chewing and
smoking trade in North and South
America and Great Britain.