The Bourbon news. [volume] (Paris, Ky.) 1895-19??, 1909-08-31
PARIS KENTUCKY TUESDAY AUGsUT 81 1909
Big Suit Against Burley Tobacco
Society.

More than 100000 farmers OF Ken
lucky, Indiana and Ohio who raised
BuIley tobacco and pooled it with the
Burley Tobacco Society in the 1906 and
1907 crops are drawn into a suit that
will be filed in the Federal Courts in
Covington, KY, probably today. At
torney Smith HIckenlooper, of Cincin-
natl announced the case Saturday. The
proceedings, to be brought under the
Sherman antitrust act, will directly
involve alleged damages of S130, 528, :
48, and, if the suit is successful, ap-
proXimately 81, GOO, 900 and the life Of
the Tobacco Society are at stake. 1t
may mean also reopeEing of the
great tobacco war. Clark & Scott Co,
Scranton, Pa, tobacco manufacturers,
are to bring suit through their brokers,
w. D. Collins & Bro, Louisville and
Cincinnati, represented by Attorneys
Outcalt Hicklenlooper.
The direct charge in the suit to be
filed is that the 0urley Tobacco Society
is combination in restraint of trade.
The proceedings are the most vital and
far reaching that have been filed in
this sort of alleged violation of the
law since the far famed $29, 900, 900
fine administered to the Standard Oil
Company by Federal Judge Lands and
reversed.
In the pooled crops of 1906 and 1907
there was an estimated amount of at
least lis, 000,0 600 pounds of Burley
tobacco. Following this pool, the
nignt-rider depredations came on.
The storm broke over Kentucky and
strife aud bloodhsed were continued
for long time.
Gradually the price of tobacco adj
vanced. Sales were made ar Winches-
ter and the Burley Society, it was
conceded. controlled the future manip-
ulations Of the great crop. In Novem-
Der, 1908, there were $4,000, 900 pounds
of tobacco still in the warehouses.
The American Tobacco Co., known as
the Tobacco Trust, bought Is per cent.
of this amount. The remainder was
to be taken over by the Independents.
1t was directly result of this last
sale at Winchester that the suit of
Clark & Scott is to be brought.
1t is alleged that $43, 506.80 in ex-
cess of a reasonable price was charged
by the Burley Society for the tobacco
shipped to the Scranton, Pa, concern.
L hO Manufactured uuuCA LHC SSAtuo VI
the antitrust act, has right to sue
for three times the amount of damages
and attorneys fees. This sale and
others were negotiated by contracts
with the Borley Society similar to the
ones by which the tobacco trust got its
big scare.
The independent manufacturers say
that they were forced to buy this last
of the so, 100000 pounds of tobacco or
else shut down. 1t is alleged the indie
pendents were forced to pay as high as
IL cents pre- pound for scrap tobacco
that formerly sold for about 3 or
cents a pound.
The majority of the growers of Ken
lucky are involved. If the suit is won
by the manufacturers the matter Will
be presented to the United States Dis
trict Attorney for procedure againts
the Burley Society to cease further
operations. In addition, should the
suit be successful, all the other indie
pendents will no doubt follow in the
path marked by the Scranton, Pa,
men. This will involve the sum of at
least $4,000, 900 in damages.