The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1911-01-11
Final Oral Statements Are
Made in Great Trust Suit,
One of Most Important Ev-
er Before Body.
UNCLE SAM THINKS
COMPANY IS TRUST
Suit Was Originally Filed in
a New York Federal Court,
but Ruling Did Not Please
Either.

tAmerican News Service)
Washington. Jan, l1--Final oral
arguments in the dissolution suit OF
the government against the Tobacco
Trust are being heard in the supreme
court today. The Standard Oil case
will follow
The Tobacco Trust suit was brought
by the government against the Amer
lean Tobacco company, it's officers, ii-
rectors, and affiliated corporations for
the purpose of seeking to prevent and
restrain monopolies in tobacco, and re-
lated commodities alleged to be con.
Quoted in violation of the Sherman
antitrust law, and certain provisions
of the Wilson tariff act.
Originally the suit was filed by the
government in the United States cir.
cult court for the southern New York
district, July 10, 1907. In May. 1908.
it was argued before circuit court
judges Lacombe. Cox. Noyes and
Ward. November z. 1908, the court
handed down it's decision, three judges
concurring. and one dissenting
The decision dismissed the petition
as to the individual defendants. the
United Cigar Stores company, the I'M
perial Tobacco company and It's SUBJ
salaries. but adjudged the other de-
fendants. parties to combinations in
restraint of trade and enjoined them:
adjudged the American Cigar COM
pany, the American Stogie company,
and MacAndrews & Forbes unlawful
combinations. and enjoined them from
interstate commerce. 1t also adjudged
the American Tobacco company, AM
erican Snuff company, American Gig
ar company, p. Lorillard company, r.
j. Reynolds Tobacco company, Black
wells Durham Tobacco company, and
the Conley Foil company as holding
shares in corporations of the alleged
trust, and enjoined them from acquir-
ing tobacco plants or business or vot-
ing shares Of and exercising control
over the issuing companies. It fur
ther enjoined the issuing companies
from permitting control. one anoth-
er, through ownership OF stocks
Cross appeals were filed by the gov
ernment and the defendants, and the
case was sent to the supreme court
OF the United States. where 1t was
docketed December %, 1908.
AS the Tobacco Trust case went to
the United States supreme court, 1t
consisted of two cases One was that
of the government, appellant VS.. the
American Tobacco company and 9TH
ers, and the other. that of the Ameri-
can Tobacco company and others, ap-
pellants. VS.. the government. Neither
| the government, nor the American To-
bacco company was satisfied with the
decision of the circuit court for the
southern district of New York, though
the decision on the whole was de-
cided victory for the government.
| Attorney General Wickersham, In
reviewing the findings of the New
York court made objections to por-
tions OF the decision. 1t was his con-
tention that the petition filed by the
government should not have been dis
missed by the court as concerning tho
individuals. and that the court wrong
fully dismissed the petition as to the
Imperial Tobacco company, the Brit
ish American Tobacco company, and
domestic corporations controlled by
the latter, on the ground that every
act done in pursuance of the contracts
effected between English and Ameri-
can companies in September. 1902,
within the United States, should have
been declared unlawful Further 1t
was contended by Mr.. Wickersham
that the governments petition as to
the alleged participation of the United
Cigar stores company should not have
been dismissed by the lower court.
And finally he declared the decree Of
the court was incomplete in that the
defendants were not adjudged parties
to unlawful contracts and conspira-
cies.
That the case is one OF the largest
with which the department of justice
has had to deal within the past few
years can be gathered from the stand
point of the capital of the companies
!. involved. There are sixty-hye corpor-
lations defendants, the largest eight Of
which have capital OF more than
$500, ,000,00 Most of the companies
were incorporated in New Jersey, two
are in Great Britain. The corpora
.ions with their capital are the Ann
erican Tobacco company, $118,931,s
500: Imperial Tobacco company Of
Great Britain $90,000.O0O; Havana
Tobacco company. $4,000. 900: the
American Snuff company, 325.000. 900;
. American Cigar company. $20.O0O. 600:
. American Stogie company $11, ,S55, 900;
MacAndrews & Forbes company, 81
0o0,O 900, and the United Cigar stores
company, $1,650,0OO. All of these are
| charged by the government with be-
| ing parties to contracts, agreements,
. combinations and conspiracies in re-
straint of interstate and foreign com
lmerce in tobacco and its products.