The Hartford republican. (Hartford, Ky.) 18??-1926, 1911-06-02
TOBACCO TRUST
MUST GO
Supreme Court Declares it
Unlawful Combination.
Decision Represents only a Ma
jority Opinion Of the
Court.

\ washington, May 29.-The Supreme
y Court of the United States late to-
y day decided the so-called tobacco
trusty case in favor of the Govsrra
ment 1t holds that the DESCENDANT
corporations are combination In
restraint of trade under the Sher-
man antitrust law. The decision re
presents only majority OF the court
who order the dissolution OF the al
filiated companies and enjoins the
further monopolization OF commerce
In tobacco. The opinion was read by
Chief Justice White and in 1T a VIC
latiou of Sections 1 and 2 OF the
Sherman law Is declared.
The American tobacco corporations
were made the target of the seconn
biy trusts prosecution OF recent
years. The first was the STANDARD
on Because the testimony taken
in the tobacco case was not so exteh-
silva as that in the Standard Oil. the
two cases were bsfore the Supreme
Court for consideration at the same
Tina
The attempt of the Goyernmet 10
dissolve the tobacco corporation as
violating the Sherman antitrust la"
took shape in 1907. In that year a Pc
tition was filed in the United states
Circuit Court at New York. The Gov
eminent asked that the American To-
bacco Company. It's officers.dlrscbors
and affiliated corporations be pre-
vented and enjoined from restrain
ing and monopolizing commerce IN
tobacco.
The restraints and the monopolies
alleged by the Government Were said
to have been obtained by an intricate
system of corporate organization IL
haean in 1890, when the first Amer
lean Tobacco Company was organized
The new company took over the bus
mess of five independent cigarette
concerns.
In 1898 the Continental Tobacco
Company was incorporated to take
over the plug tobacco business OIL
tha African Tobacco Company anu
that of five independent plug manulac
turers.
In 1900 the American Snuff Com
many was incorporated TO take over
tina snuff business of the American
Tobacco Company, of the Continental
Tobacco ompany, and OF two Other
independent manufacturers.
In 1901 theiAmerican Cigar Company
J was Incorporated to take over the bus
mess of the American Tobacco Com-
many and other manufacturers ana
sellers of cigars, cheroots and sto-
giles.
= In the same year the Consolidated
Tobacco Company was incorporates 10
balSa over in exchange for It's oonds
substantially all of the stock OF the
American Tobacco Company and the
Continental Tobacco Company.
In 1908 the American Stogbe Com
many was incorporated to take over
the stogie business of the American
Cigar Company. the American To
bacco Company, and the ConoineAtai
Tobacco Company.
The Government claimed INT an
thasa organizations were created win
tina definite purpose to destroy COM
natitlon and that they accomplished
that purpose. Each step was at
tackled as a part of an unlawful PLAN
whose development and progress was
advanced. II was charged. by duress'
oppression, and unfair methods inoend
ed TO drive out and keep out compe-
tltors and sssure moDopolles.
The defendants claimed that moth
ing was TO be found in the organi0a-
tlea of these corporations but the
orasrly. natural and legitimate devei-
.,opment of a great business. They
kaid the acquisitions had been prop
ar and that no intsnts 10 restrain
trade or monopolize trade had prop
"a the creation Of corporations.
= In addition, 1t was charged onat
the American Tobacco Company ac-
os,ired control of the United Cigar
stores Company. which conducts re-
tall stores in large cities and thereby
was seeking dominion In the retan