The Hartford herald. [volume] (Hartford, Ky.) 1875-1926, 1911-05-31
THE GOVERNMENT
SCORES A VICTORY
Over the Tobacco Trust
in Noted Case.
SUPREME COURT HANDS DOWN
A Decision In Litigation That
Affects Future of Big
Corporation.
VIOLATION OF SHERMAN LAW

Washington, May 29.-The SUI
preme Court of the United States
late to-day decided the so-called
tobacco trust case in favor of the
Government. II holds that the de-
PENDANT corporations are combi-
nation in restraint of trade under
the Sherman antitrust law. The
decision represents only majority
- of the court, who order the disso-
luton of the affiliated companies
and enjoin the further monopoli-
cation of commerce in tobacco. The
opinion was read by Chief Justice
White and in it a violation OF Sec
lions 1 and 2 of the Sherman law is
declared.
The American tobacco corpora
lions were made the target of the
second big trust" prosecution of
recent years. The first was the
Standard Oil. Because the testi-
mony taken in the tobacco case was
not so extensive as that In the
Standard Oil, the two cases were
before the Supreme Court for con-
sideration at the same time.
The attempt of the Government
to dissolve the tobacco corporation
as violating the Sherman antitrust
law took shape in 1907. In that
year a petition was filed in the Unit
ed States Circuit Court at New
York. The Government asked that
the American Tobacco Company, its
officers, directors and affiliated cor
porations, be prevented and enjoined
from restraining and monopolizing
commerce in tobacco.
The restraints and the monopo-
lies alleged by the Government
were said to have been obtained by
an intricate system of corporate or
ganization. It began in 1890, when
the first American Tobacco Com
pany was organized. The new COM
pany took over the business of five
Independent cigarette concerns.
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
manufacturers.
In 1900 the American Snuff Com
pany was incorporated to take over
the snuff business of the American
Toracco Company, of the CONT
mental Tobacco Company, and of
two other independent manufacture
ers.
In 1901 the American Cigar Com
pany was incorporated to take over
the business of the American To- |
bacco Company and other manufac-
turers and sellers of cigars, che
roots and stogies.
In the same year the Consolidat-
ed Tobacco Company was incorpo-
rated to take over in exchange for
its bonds substantially all of the
stock of the American Tobacco
Company and the Continental To-
bacco Company.
In 1903 the American Stogie
Company was incorporated to take
over the stogie business of the
American Cigar Company, the
American Tobacco Company, and
the Continental Tobacco Company.
In 1904 the American Tobacco
Company, the Continental Tobacco
Company. and the Consolidated To-
bacco Company were merged into
the present American Tobacco Com
PAW.
The Government claimed that all
these organizations were created
with the definite purpose to destroy
competition and that they accom-
plished that purpose. Each stem
was attacked as a part of an I'M
lawful plan, whose DEVELOPMENT
and progress was advanced, u was
charged, by duress. oppression and
unfair methods intended to drive
out and keep out competitors and
secure monopolies.
The defendants claimed that
nothing was to be found In the or 9
renization of these corporations but 9
The orderly. natural and lesitimste |
development of a great business. I