Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1911-05-30

velopment of a great business. They
said the acquisitions had been proper
and that no intent to restrain trade
or monopolize trade had prompted
the creation of corporations.
In addition II was charged that the
American Tobacco company acquired
control of the United Cigar Stores
company. which conducts retail stores
in large cities. and thereby was seek
ing dominion in the retail business.
an aveme absolutely necessary to ef-
fective competition.
The tobacco organization was
charged with having a monopoly of
the licorice paste. required In the
manufacture of tobacco. the Mae.
Andrews & Forbes company, organ
lied by the Continental. having no
competitor. ii was said.
II was also said that the defendants
had monopoly in the tinfoil business,
the Conloy Foil company, of which
the American Tobacco company held
a majority of the stock. producing 10
per cent of the tinfoil manufactured
in this country. Both the licorice and
the foil monopolies were said to have
been obtained in violation of the
sherman antitrust law,
Another phase of the litigation con
cerned the foreign trade. The petl-
tion charged that the American To-
bacco company had entered into con-
tracts with the Imperial Tobacco
company, the so-called British trust"
whereby the latter should limit It's
activities to Great Britain. except as
to the purchase of n certain amount OF
leaf in America. and the former
should limit its business to the United
States. 1t was alleged that the two
trusts organic cd the British Amer
ican company to take over the export
business of both and divide the world
between them. These contracts were
made in Great Britain.
The circuit court found that there
existed a restraint of commerce. but
said nothing about the charges of
monopolizing. In its decree the
the court dismissed the petition as to
the Imperial company and the British
American company. and from this
feature of the decree the government
appealed to the supreme court. 1t
dismissed the petition as to the United
Cigar stores company. and from this
too. the government appealed.
The circuit court decreed that the
American Tobacco company, the AM
arfAon Cn,iff anp,nnnv tho ADonrin ~ q n
Cigar company. the American Stogie
company and the MacAndrews &
Forbes company were unlawful COM
binations and restrained them from
engaging in interstate or foreign COM
merce. From this the defendants ap-
pealed to the supreme court. So did
the government. The government OBJ
iccted because the Conley Foil COM
pany and the individual defendants,
hsaded by James b. Duke, We're not
made parties to the conspiracy to re-
strain and because all were not held
to be attempting to monopolize.
The circuit court dccrced that the
American Tobacco company, the
American Snuff company. the Ameri-
can Cigar company, p. Lprillard COM
pany. II. j.. Reynolds TIoit,tceo com
pany, Blaekwell's Durham Tobacco
company and the Conley Foil company
held shares in specified corporations
and enjoined them from acquiring the
plants or business or voting the
shares of and from exercising control
over the subsidiary companies. and
enioined the subsidiary companies
from permitting control Both the
defendants and tho government ap-
pealed The latter objected princi-
pally because the Imperial Tobacco
company. the British-American To-
bacco company and the United Cigar
Stores company We're not included
among the subsidiary" companies.
and because the holding companies
were not prohibited from collecting
dividends from the subsidiary COM
ranies.
The appeals were argued before the
supreme court. first in January, 1910.
and the second time in January. 1911.
Prominent attorneys appeared. For
the government Attorney General
Wickersham and his special assistant.
J. c. McReynolds addressed the court.
For the American Tobacco companies
there appeared John G. Johnson OF
Philadelphia. Delaney Nlcoll and
lnnlus Parker of New York, while
William p. Hornbower Of New York
argued for the Imperial Tobacco
company and Sol NJ Stroock of New
York for the United Cigar stores COM
pany,