The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1911-05-30
w. D. HoRNnLowER,
Counsel of Imperial Tobacco Co,
to drive out and keep out competitors

Il
and secure monopolieS.
The defendants claimed that nothing
was to be found in the organization OF
these corporations. but the orderly,
natural and legitimate development of
great business. They said tho ac-
quisitions had been proper, and that
no intent to restrain trade or monopo-
iize trade had prompted the creation of
corporations.
In addition. 1t was charged that the
American Tobacco Company acquired
control of the United Cigar stores Com
pany, which conducts retail stores in
large cities. and thereby was seeking
dominion in the retail business. an
avenue absolutely necessary to effec-
tive competition.
Inc tobacco organization was charged
with having monopoly of the licorice
paste required in tho manufacture OF
tobacco. the A1acAndrews g. Forbes
company. organized by the Continental
having no competitor, it was said
t was also said that the defendants
had a monopoly in the tin foil bust
ness. the Conley Foil Company. OF
which the American Tobacco Company
held a mapority Of the stock, produo-
ing rs per cent. of tho tin foil manufac-
tured In this country. Both the licorice
and the foil monopolies were said to
have been obtained in violation Of the
Sherman antitrust law.
Another phase OF the litigation con-
cerned the foreign trade. Tho petition
charged that the American Tobacco
Company had entered into contracts
with the Imperial Tobacco Company,
the so-calied British trust" whereby
the latter should Unit its activities to
Great Britain except as to the purchase
OF certain amount of leaf in America,
and the former should limit its business
to the United States. 1t was alleged
that the two trusts" organized the
BTitish-American Tobacco Company. to
tako over the export business OF both
and divide the world between them.
These contracts were made In Great
Britain.
Court Finds Restraint. III
The Circuit Court found that thore
existed n restraint of commerce, but
said nothing about the charges of mo-
Inopolizing. In It's decree the court dis
missed the petition as to the Imperial
| Company and the British mcrican
Company, and from this feature of the
decree the government appealed TO the
Supreme Court 1t dismissed the petit
ton as to the United Cigar Stores Com
pany, and from this, too. the govern
ment appealed.
The Circuit Court decreed that the
American Tobacco Company. the Amer
lean Snuff Company. the American CT
gar Company. the American Stogie
Company and NfacAndrews & Forbes
Company were unlawful combinations
and restrained them from engaging in
interstate or foreign commerce. From
this the defendants appealed TO the
Supreme Court. So did the govern.
iaent, The government objected be.
cause the Conley Foil Company and
the individual defendants. headed By
James B. Duke, were not made parties
to the conspiracy to restrain and be-
cause all were not held to be attempt
1. ing 10 monopolize.
The Circuit Court decreed that the
American Tobacco Company, the Amer
/ lean Snuff Company. the American CT
| gar Company, p. Lorlllard Company, r
| j. Reynolds Tobacco Company, Black
wells Durham Tobacco Company ant
! the Conley Foil Company held shares
| In specified corporations, and en3oinec
| them from acquiring the plants or bus
iness or voting the shares OF and from
exercising control over the subsidiary
! companies and enjoined the "snbsidi-
1 ary'' companies from permitting oon'
| troll, Both the defendants and thu
government appealed. The latter OBJ
jeoted principally because the lmpe
rial Tobacco Company, the British
| American Tobacco Company ana TN
United Cigar Stores Company, we're
not Included among the "suosidiary
companies, and because the holding
companies we're not prohibited from
collecting dividends from the "subsid
| larry" companies.
The appeals were argued before IN
| Supreme Court. first in January l9!o
and the second time In January. III
| Prominent attorneys appeared 70
tho government, Acknowledgement
| wickersham and his special ass'stan !
| j. G, McReynolds, addressed tne COW
| For the American Tobacco Companie
there appeared John G. Johnson.
Philadclphia Delaney Nicon ana ~
Mus Parker. OF New York, while WI
| liam B fIornblower. OF New YORK. ar
aued for the Imperial Tobacco Com
pany. and Sol NJ. Stroock, OF New orN
for the United Cigar Stores company.