Albuquerque citizen. [volume] (Albuquerque, N.M.) 1907-1909, 1908-05-19
SUFFICIENT EVIDENCE
HAS BEEN SECURED
Eight Men Control Tobacco Trade
of North and South America and
Great Britain by Ownership
of Small Amount OF
Trusts Stock.

New York, May 19.-Proceedings
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 com pany 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, it 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 sixty
allied and subsidiary companies, and
about twenty individuals connected
Herewith. Among the concerns af-
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 October 19, 1904 in
New Jersey, as a consolidation of the
American Tobacco company, the Con-
solidated Tobacco company and the
Continental Tobacco company II has
$40 600, 900 common stock and s7S,-
700, 900 preferred stock. The pre-
ferred 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 Spe-
cial Prosecutor McReynolds, the evil
dence gathered by the government
shows that the American Tobacco
company, with its $274,000, 900 of as
sets, and the subsidiary companies
with their 800, 100000 of assets, to-
gether with the British American To-
oacco company, with its 800, 100000
of assets-making nearly $500, 900, 900
in all-are controlled by eight men or
estates.
These eight men, or estates, by
characteristic exercise of high fl
nance" control the whole 100000
O0O combine through their ownership
of a majority of the $4O,OOO.0OO Of
common stock Of the American To-
bacco company, the parent concern.
To do this they need hold but $2l,-
10000 of the stock.
These eight men or estates are
James b. Duke, Thomas f. Ryan, An
thony n. Brady, Benjamin n. Duke,
Colonel oliver II. Payne the estate
Of the late William l.. Elkins of Phil
adelphia; Peter \. r. Widener, of
Philadelphia, and the estate OF Will
lam c. Whitney
Ryan owns 10000 shares of the
common stock and draws an income
of nearly $4,000 a day, or 100000 a
year, from his trust holdings. Col.
Payne owns $4,000 shares, the Elkins
estate owns 10000 shares President
Duke holds $1,000 shares, and George
Arents of this city, one of the orig
inal organizers. holds 1000 shares.
The trust has been doing. until the
recent slump, a tremendously profit
able business, paying as high as 22 per
cent dividends. The dividends of 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
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. Whitneys death, has 'Oeen Thomas
F. Ryan.
The tobacco trust has a practical
monopoly of the cigar, cigarette,
snuff, licorice, cheroot and chewing
and smoking trade In North and
South America and Great Britain.