The Hartford herald. [volume] (Hartford, Ky.) 1875-1926, 1908-11-11
GIGANTIC TRUST
HOLDS TOBACCO
Of the Notwithstanding
Revelations.
THE OUTCOME OF A BIG SUIT
Which Shows How the Weed
IS Manipulated by Two
Great Countries.

New York, Nov. 9-The contention
of the Government that the American
Tobacco Company is a trust, operat-
ing in restraint of trade and competi-
ton in violation of the Sherman an
THRUST law, WIS sustained to-day in
decisions handed down by Judges La
combe, Coke and Moves in the Unit
ed States Circuit Court here. Judge
Ward handed down a dissenting opin-
ion. In the suit against the Ameri-
can Tobacco Company, which was
prosecuted by James c. McReynolds
and Edwin p. GrcsvenOr, special as
sistRnts of the United States Attor-
ney Genreal, the Government asked
for an injunction dissolving the COM
bination of the American Tobacco
Company and its subsidiary compan-
les on the ground that it was illegal,
in that it operated in restraint of
trade and commerce The Governmel q
also asked the United States Circuit
Court to appoint a receiver to wind up
the affairs of the allied corporations.
While finding that there was an
illegal combination as charged Judges
Lacombe, Coke and NOyes, in their
opinion, say that injunctions should
issue against all the defendants ex-
cept the United Cigar Stores Com
pany. The injunctions re,however,
pany The injunctions are, however,
stayed pending an appeal to the Unit
ed States Supreme Court.
The petition asking for the ap-
pointment of a receiver to take charge
Of the companies included in the
combine was refused as being Inn
practicable and wholly unnecessary"
The Imperial Tobacco Company and
the British-American Tobacco COmpa-
ny, English corporations, were incMd-
ed in the Governments suit. but the
complaints against these companies
were dismissed.
The suit has been in progress for
many months and great volumes OF
testimony were taken both by the
Government and on behalf of the de-
PENDANT companies. In the course of
these subsidiaries practically controll-
ed the tobacco trade of the world. Thi
control, so far as foreign markets Is
concerned, was shown to have been
of comparatively recent origin, how
ever, and came about through the
formation of a working agreement
with a great British corporation
which previously had controlled the
production and consumption not only
in Europe, but in Asia as well.
TheAmerican Tobacco Company WIS
formed under the laws of New Jersey
in 1904, when the old American To-
bacco Company, the Consolidated Com
pany and the Continental Tobacco
Company were merged under a single
head. Under an agreement reported
at UldJ JlIle Tue parent COMPANY az
quired the plants, factories, property
and trade marks of all the component
companies, and in addition to that 1t
new owns a majority of the stock
of the American Cigar Company, and
Of the common stock of the Ameri-
can Snuff Company, the Havana To-
bacco Company and the American Sto-
gle Company. Under an agreement
made in 1902 the vast export business
of the American Tobacco Company is
conducted by the British-American To
bacco Company, limited. The latter
corporation has a capital stock cf
$50, 900, 900, two thirds of which is
owned by the American Tobacco Com
pany, which is capitalized at $780,
900, 1000. Its President is James b.
Duke, but Thomas f. Ryan, the bank
err and capitalist, has been regarded
as the dominant force in the greet