The Bridgeport evening farmer., 1911-01-10
THE TOBACCO TRUST
Arguments in Progress Before
the u. S. Supreme Court


Washington, Jan. 10.-Before the
court of last resort yesterday began
the final supreme legal battle on
which hangs the fate of the Ameri-
can Tobacco Company and its subsi-
diary corporations.
some of the highest-prfced lawyers
in the country began their argu-
iaents before the, Supreme Court for
and against the Sherman Antitrust
law and that many tentacled-octopus,
the Tobacco Trust. On the cogency
OF their presentation of tho evidence
defends either the life or death of a
vast combine of corporations consti-
tuting business with over 100000
eooa of invested capital, and on the
one hand, strengthening of the
Sherman antitrust law, or, on the
other hand, an emasculation of that
stature which will nullify the Gov
ernmTnt's strongest weapon against
The setting for this legal Waterloo
was the small, prim chamber of the
Court, and the audience of nine JUS
tees Of the highest court, and a
closely packed crowd of lawyers, bus
mess men and visitors. The gen.
erals in command of the opposing
forces were Attorney General Wick
ersham and Special Attorney J. c.. Nc
Reynolds for the government and at
torneys John e. Johnson and VIII
Trust 20 johnson. as chief coun-
rel for the appellant, fell the duty
Of making the opening argument,
and his legal defense Of the accused
corporations consumed by far the
srsstsf part tb q e sne o iast wear when
the same case was argued, the SUI
preme Court determined to permit at
forneys three whole days in which to
present their arguments. Usually the
- - - - a.
two hours-divided equally between
opposing counsel-but in view of the
magnitude Of the questions involved
and the intrfcacies of the litigation,
II was thought best to grant almost
unlimited time for legal statements.
Piled up on the bench in front
OF the justices was a formidable ar
ray OF documents-mute evidence of
the completely of the case. The rec
ord alone in the Tabacco cases fills
The Governments brief is spread
over $40 closely printed pages; the
two briefs of attorneys for the Tobac-
CO Trust is compressed into two bull
ky volumes of about 200 pages each.
A copy of each was on the desk of
each justice
The case had its inception in a
bill of complaint filed on July 10,
1907. before the Circuit Court for the
Southern District of New York. 1t
was charged that the American To-
bacco Company had gradually acquir-
ed a monopoly of the tobacco bust
ness in the United States. by a series
of bold buccaneering exploits, had
stif1ed competition, and defied indie
pendent dealers through a network of
subsidiary companies, operating as
independent" dealers.
1t was in 1890, the Government
claims, that the idea of controlling
the tobacco industry first originated
with the heads of several big man
ufacturing companies-James b. and
Benjamin n. Duke, Thomas F. Ryan.
Pierre Lorillard, r. L. Patterson, p.
A Il. Widener and others-and the
American Tobacco Company was
shortly thereafter organized, the stock
being divided between the magnates.
From time to time. the parent COM
pany absorbed scores of competing
firms. new subsidiary corporations
were formed. and the octopus tight
ened its hold. In November 1901,
retail outlet for the trust" products
was secured through absorption of
the United Cigar stores.
All through this period of growth,
unfair competitive methods were al
legged. The counts which the gov
eminent makes include the market
ing of trust products under the
Euise Of independent goods; imita-
ton Of standard independent brands;
manipulation of markets to suit their
OWN purposes, purchasing OF trade
marks and cheapening of brands 1t
was also charged that the combine
organized corporations for the man
ufacturc of tin foil, boxes, paper. Hco-
rice, further to tighten it's grip on
the tobacco business. Companies
operating III practically every field of
the business are parties to the suit
NzarlT a year was consumed in the
taking Of testimony in the case, and
IL was not until November z! 1909
that the Circuit Court rendered an
opinion sustaining the Sherman law
and partially upholding the govern
ments contentious. But it dismissed
the bill against the United Cigar
Stores the Imperial Tobacco Co, the
British American Tobacco. and 9th