The Cairo bulletin., 1911-01-07
BEGUN BEFORE U. S. SUPREME
COURT LATE YESTERDAY
AFTERNOON.
HISTORY OF THE TRUST
Given BY Attorney Fer Government
in Opening Address--American
Tobacco Co. Controls
Susiness.


ments on tie proposed dissolution OF
the soealled tobacco trust were be-
gun late today IN supreme court OF
the ti.itCl states
As a goaf ago, when the dtssolu-
ton srit was argued for the first time
'beEo.e the court, SO today J. = NC
Reynolds, special assistant to the att
torney general In charge of the tobac-I
co fight fer the government, made the
opening address, He had not con-
cluded his rem2rks when court adj
journed until Monday. BY arrange
ment the counsel Oh both sih,es
agreed to conclude their arguments
in u hours.
This viii bring the close of the pre-
sentation about 3 o'clock next We'd
nasday afternoon.
Nj. McReynolds surprised come
members CT the court ny saying that
the dissolution was asked not only
under the Sherman law, but under the
Wilson tariff Law OF 1894.
Much discussion has taken place in
tbs "trrst case as 10 whether or not
the phrase restraint of trade" as
used Ia tie antitrust law was equiva-
lent to RESTRAINT Of fee competi-
ton"
Mr.. McReynolds pointed to the Will
son act as the congressional inter
naetation oil the Sherman act, passed
four years previous, in which al
doubt as to tna mea y had be3N r.
moved by using the phrase "res:r tat
OF free competition"
Nearly the eHtire tin p that NJ Nc
Reynolds spoke was devoted to a
vsisr5ry Of the se-oasled @tobaoce.
trust from the time the first Amer-
can Tobacco Company VS. organized
in 1899 for ire alec purpose of eft,
feetins Q moaoucly IN the cigarette
trade, thus 2yoiiing ire competition
of independent concerns, down to the
incorporation in 1904 Of The new
American tobacco Company, and hold
inc coulnanv, controlling 65 compan,
les interested in various branches OF
the tobacco business.
The suit under the Sherman anti,
trust law to dissolve the so-caled
Tobacco trust" was Instituted In
1907 in the circuit court of the United
States for The Southern district Of
New York The proceedings were
brought by the department of justice
against more than sixty corporations
ana number of individual defend
ants headed by James B. Duke.
The process Of organization Of the
combination alleged to bs unlawful
spread over many years. 1t began in
January, 1890 Then the first Ameri-
can Tobacco Company was incorpor-
ated for the purpose, 1t is alleged, Of
taking over tne business Of FIVE indie
pendent cigarette plants.
In 1898, the Continental Tobacco
Company was incorporated for the al
~'leged purpose Of taking over the plug
tobacco business Of the Amem IA To
bacco Company am the business OF
five other plug tobacco concerns.
IN 1900, the Smerican Snuff Com
pany was incorporated for the alleged
purpose of taking over the snuff bust
ness of the American Tobacco Com
pany aud two or three Independent
snuff manufacturers.
In 1901, the American Cigar Com
pany was Incorporated for the alleged
purpose of taking over the cigar bust
ness CT the American Tobacco Com
pany and an Independent manufac.
turer of cigars.
In the same year, the Consolidatet
Tobacco Company was incorporated
for the alleged purpose Of taking over
as o holding company in exchange for
its bonds substantially all of the
stock Of the American Tobacco com.
pany and the Continental Tobacco
Company.
In 1858, the American Stogie Com
pany was Incorporated for the, alleged
purpose of taking over The stogi,
business Of the American Cigar Com
pany the American Tobacco Com
pany and the Continental Tobacco
Company. Y VI sTy
In 1904, the American Tobacco com
pany. the Continental Tobacco Com
.pany and the Consolidated Tobacc,
Company were merged into the pres
eut American Tobacco Company.
II is alleged that in addition to thi
organization, the American companle
in 1902 entered into a contract with
British company, the Imperial Tobac
co company, whereby the American
companies We're limited In their busl
ness to America and the British t,
Great Britain. except that the late
corld buy leaf tobacco in the Unitet
States. It was alleged that the Brit
Concluded s,aE age
tl 48 x Z vi j. 4