Los Angeles herald., 1909-12-31
TOBACCO TRUST
AGAIN ATTACKED
BY WICKERSHAM
MONOPOLY is DENOUNCED BY
PROSECUTOR
ATTORNEY GENERAL ARRAloNs
HUGE COMBINE
Various Coalitions" Representing
Crushed Rivals of Corporation,
Traced, and IlIegallty Of Con-
Germ Shown In Brief
tAssociated Pressl

wv printed brief of PCS pages At
torney General Wickersham
and his special assistant, J. G. Nc
| Reynolds, today presented to the SUI
preme court of the United Sttaes the
suit of the government in the famous
| tobacco trust cases, which will be
argued next week in that court
The cases were tried in the United
| States circuit court for the southern
district of New York, which, after dis
| missing the petition as to foreign to-
bacco companies and some of the sub
ordinate American companies, ad-
| Judged the others to be parties to an
unlawful conspiracy and enjoined them
from continuing their operations and
| from engaging in interstate commerce.
The attorney general takes the posi-
tion that the findings, sweeping as
they seem to have been, were not
broad enough. and he asks the su-
preme court to extend them so as to
widen their scope to take I'm foreign
companies and some individuals re-
lieved from the operation of the YER
dict. Many other extensions OF the
judgment are also requested.
Coalition Traced
After showing that in 1890 compet-
tion was free, the various coalitions
are traced In the document and facts
are given to show that the combina-
tion has grown until it's combined as
sets amount to $400,000,000
1t is asserted that the combination
makes all the cigarettes for export
and almost three-fourths of the smok-
ing tobacco and cigarettes for domes-
tic sale; more than three-fourths of
the plug, twist and finecut tobacco
and almost all of the snuff and little
cigars that are made.
1t is declared that "the defendants
have persistently exercised duress,
have practiced wicked and unfair
methods and used their great power in
oppressive ways"
Further it is asserted that they
have been actuated by a fixed purpose
to destroy competition and to obtain
monopolies.
Competitors have gradually disap-
peared and the combination, now
strongly entrenched, unduly restricts
the business of those in the trade and
prevents others from entering, it is
declared.
Putting aside, for the time, the ef-
feet of the Sherman antitrust law,
under which the suit was brought, il
is contended that the combination un-
der the name of the American Tobac-
co company was illegal when 1t was
entered into in 1890, because ii was
contrary to the common law. Con-
tending for the right of congress TO
enact antitrust legislation, it is as
serted that the essential purpose of
the Sherman law is to prevent injury,
not merely to reverse a course of con-
duct.
Not Civil Right
The attorney general also lays down
the general proposition that "the
right freely to buy, sell and transfer
property is not a fundamental civil
right to be exercised without limita-
tion as interested parties may de-
termine." and he adds the assertion
that 'it is subordinate TO public policy
and the lawfully expressed will of
congress-"
Coming to specific instances relative
to operation of the trust, 1t is de-
clared that substantially all estab-
lished jobbers in New England were
induced to throw out independent
products. as were those of Philadel-
phia, New York and manv other
specified places.
It is asserted that Independent job
bing in New York was destroyed by
the organization of the Metropolitan
Tobacco company, which was given
an exclusive avenue for the sale of
trust goods.
It is also asserted that "bush-
whacl1ing" methods were resorted to
in the use of union labels. and the
method in this proceeding is de-
nounced as ubiquitous" and one
such as is inhibited by a civilized con-
science"
Indeed, it is declared that "the rec
ord contains much evidence and a vast
deal of correspondence concerning op-
erations of these bushwhacking conf
panies which disclose amazing deprav-
ity and show with clearness how these
sinister agencies were effectively util-
ized'
Advertising Methods
Advertising methods of the trust
were referred to as means of influ-
encing both business and public senti-
ment and it Is said that not less than
$40, O00 600 were expended in this way
in 1906.
The attorney general interprets the
complaint as not merely directed to the
acquisition and ownership Of stocks or
other property, but as against the COM
pany's operations in commerce.
Competition has been persistently de-
stroyed, scores of contracts have re-
tired skilled men from the trade, many
have been forced out. and the neces-
sary result of the plan long followed
has been to give the defendants power
to exclude others and exercise mo-
nopoly, it is declared.
He seems inclined to the view that a
receiver should be appointed for the
business of parties to the combination,
and he adds
1.-THE very existence of certain de-
PENDANTS is criminal, and certainly they
cannot rightfully complain because re-
strained from carrying out the unlaw-
full purpose of their creation; they are
wllfully in positions where every act
is a transgression."