The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1908-11-08
TOBACCO TRUST
VIOLATING LAW
Biu Corporation Controls Al
most Entire Product and
May Be Dissolved.
GOVERNMENT WINS SUIT
CIRCUIT COURT DECLARES THAT
MONOPOLY EXISTS.
GOVERNMENT WINS SUIT

New York. Nov The govern
r,snts attempt 10 bring about a disso-
lptlon Of the American Tobacco com
,snv the giant corporation which
practically controls the tobacco trade
~ the world outside Of Great Britain.
has made substantial progress. After
Iong consideration of the great volume
~ testimony taken during the many
r,oDths since the suit was instituted,
soyr Judges in the United states circuit
eourt today handed down decisions
bolding that the company is operated
IN violation or the Sherman antitrust
iaw and in restraint of trade. The court
found. however, that the government
reouest for appointment of a receiver
was inprac ticable and wholly UNI
Necessary. and at the same time the
four Judges agree that the application
for an injunction against the various
subsidiary companies should be sus-
pended until after a decision on an ap-
zeal from the present judgment. the
complaint against the Imperial Tobac-
co company and the British American
company was dismissed.
Judge Lacombe, in his decision, said;
There can be little doubt that the
federal statute has been violated. Each
one OF the purchases of companies
complained OF in the petition was a
contract and combination in restraint
" competition existing when II was
entered into, and that is sufficient TO
bring IL within the ban OF this drastic
statute
One Dissenting Judge.
The governments contention that the
American Tobacco company is "A trust
operating IN restraint OF trade and in
violation OF tie Sherman antitrust
law was sustained in decisions handed
down by Judges Lacombe, Coke. NOyes
and Ward in the United States circuit
court here today. Judge Ward dis
sented.
TIE governments complaint agains-
the tobacco company included the
names of a large number of subsidiary
and allied companies. but not all Of
these are included in the decision hand
ed down by the judges of the United
States circuit court today.
The suit has been in progress for
many months and great volumes of
testimony were taken by the govern
meat and on behalf OF the defendant
c0mpanls
In he course Of these examinations
developed that the American Tobac-
90 company and it's subsidiaries prac-
tical,y controlled the tobacco trade OF
the world. This control. so far as for
egn markets are concerned. was
shown to have been of comparatively
recent origin. however, and came about
though the formation OF a working
agreement with a great British cor
Poration which previously had con-
trolled the production and consump-
Ion not only in Europe but in Asia
as we'll
Controls All Lines.
The American Tobacco company was
formed under the laws of New Jersey
IN 1904. when the old American Tobac-
20 company. the Consolidated Tobacco
company and the Continental Tobacco
company were merged under n single
head. Under an agreement reached at
hat time the parent company ac-
CURED the plants. factories. property
and trade markets of all component
companies. and in addition to that it
row owns a majority of the stock IF
the American Cigar company and OF
The common stock of the American
snuff company, the Havana Tobacco
company and the American Stogie
company. Under an agreement made
- -''- ttaF FehSA NARoAL DUSIlESS Oh the
American Tobacco company is con-
Quoted by the British american To-
hacco company. limited. This latter
corporation has capital stock of $780,
"Vo'V0e. tWO-thirds of which is owned
by the American Tobacco company.
Inc American Tobacco company itself
Is capitalized at $3.50. 900. 900. Its presi-
cent Is James p. Duke, but Thomas
Ryan, the banker and capitalist. has
oeen regarded as the dominant force
IN me great corporation.
since January. 1905, regular quarter
ul'ldends at the rate OF s per cent
year nave been paid on the preferred
S.oeK' The first dividend on common
'V ~ was ~ per cent. paid on March
$50. Since that time dividends in
80 same amount have been paid quar-
Try, and IN addition 10 per cent ex-
,sS- dividend was paid in December.
90 . per cent extra in September.
60 - per cent extra in December.
w per cent Extra in June. 1907:
pr cent extra in September. 1907.
q Per cent extra in last Deem
Extra dividends aggrega ding Is
cent on the common stock have
''n paid thus far in the present wear.