The evening times. [volume] (Grand Forks, N.D.) 1906-1914, 1911-05-30
Declared Combination in Vic.
lation Of Sherman Anti
Trust Law
ASSOCIATE JUSTICE HARLAN
FILES DISSENTING OPINION
Takes Issue With the Court on Ques.
ton Of Judicial Legislation and
Reading Into the Law Things That
the Legislature Did Not Include.

can Tobacco company and its access
sories and subordinate corporations
and companies including the English
corporation late yesterday were held
by the supreme court Of the United
States to be co-operators In COM
bination illegal under the Sherman
antitrust act. The court sent the
case back to the lower court with d.
rections to hear further the parties
SO as to ascertain whether q new con-
dition cannot be recreated In har-
mony with the law. Justice Harlan
concurred in part with the courts
opinion and dissented In part.
The American Tobacco corporations
were made the target Of the second
big trust" prosecution Of recent
years. The first was the Standard
Oil. Because the testimony taken In
the tobacco case was not 80 extern
sive as that In the Standard Oil, the
two cases were before the supreme
court for consideration at the same
time.
The attempt Of the government to
dissolve the Tobacco corporation as
violating the Sheram nanti-trust law
took shape in 1907. In that year, q
petition was filed in the United States
circuit court at New York. The gov
ernment asked that the. American To-
bacco company, its officers, directors
and aflliated corporations, be pre-
vented and enjoined from restraining
and monopolizing commerce in tobac-
co.
The restraints and the monopolies
alleged by the government. were said
to have been obtained by an intricate
system Of corporate organization. It
began In 1890 when the ffrst American
Tobacco sc6rhpany was organized. The
new company took over the business
Of i've Independent cigarette con-
Germs.
In 1898, the Continental Tobacco
company was Incorporated to take
over the plug tobacco business of The
American Tobacco company and that
of five Independent plug manufac-
turers.
In 1900, the American Snuff COM
pany was Incorporated to take over
the SNUFF business of the American
Tobacco company, Of the Continental
Tobacco company, and Of two other
Independent manufacturers.
In 1901, the American Cigar COM
pany was incorporated to take over
the business of the American Tobac-
co company and other manufacturers
and sellers of cigars, cheroots and
stogies.
In the same year the Consolidated
Tobacco company was incorporated to
take over In exchange for it's bonds
substantially all of the stock Of the
American Tobacco company and the
Continental Tobacco company.
In 1908, the American stogie COM
,pany was incorporated to take over
the stogie business Of the American
Cigar company. the American Tobac-
co company, and the Continental To-
bacco company.
In 1904, the American Tobacco
company, the Continental Tobacco
company, end the Consolidated To-
bacco company were merged into the
present American Tobacco company.
The government claimed that all
these organizations were created with
the definite purpose to destroy COM
petition and that they accomplished
that purpose. Each step was attack
ed as part Of an unlawful plan,
whose development and progress was
advanced, 1t was charged, by duress,
oppression, and unfair methods in
tended to drive ont and keep out
competitors and secure monopolies.
The defendants claimed that moth
ing was to be found in the organiza-
tion Of these corporations, but the or
derly, natural and legitimate devel-
o2rocEt Of great business. They
sxic the acquisitions had been proper
ana that no intent to restrain trade
or nonopoliza trade had prompted
the creation Of corporations.
In addition, It 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
seeking dominion In the retail bust
moss. an avenEe absolutely necessary
to effective competition.
The tobacco organization was
charged with having monopoly Of
the licorice paste, required In the
Manufacture Of tobacco, the MacAn-
6rews q Forbes company, organized
BY the Continental having no compel
itor, Il was said.
. Il was also said that the defend
ants had Q monopoly in the tin foil
business. the Conley Foil company. Of
which the American Tobacco COM
pany held . majority Of the stock.
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