The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1911-05-30
KNOCKOUT IS
GIVEN TRUST
BY DECISION
American Tobacco Company
Held by the Supreme Court
to Be Operating in Re-
straint of Trade.
Continued from Page One.)

/
pany, and the British-American To
baco company and its subsidiaries, was
dismissed. The other defendants. par
ties to combinations in restraint of
trade, were enjoined; the American
Cigar company, the American Stosie
company, and other companies We're
|adjudsed unlawful combinations and
enjoined from interstate commerce.
The American Tobacco company, Am
lerican Snuff company, American CT
gar company, P. Lorillard company, r.
~. Reynolds Tobacco company, Black
wells Durham Tobacco company and
the Conley Foil company were ad-
Judged as holding shares in specified
corporations, and were enjoined from
acquiring the plants or businesses, or
voting the shares Of and from exercis-
ing control over the issuing compan-
lies The decision further enjoined the
Issuing companies from permitting
control one of another, through owner
lship of stocks.
From this decision appeals were fill
ed by the government, and the defen-
dants, and the case was brought to the
supreme court of the United States.
where it was docketed December 90,
l19OS. There were two cases, that OF
the government, appellant, VS.. The
american Tobacco company and 9th
ers; and that of the American Tobacco
company and others, appellant, VS.. the
United States.
Unsatisfactory Ruling.
The decision obtained in the New
York court was not satisfactory to
either the government or to the to-
bacco interests, but on the whole 1t
was conceded that the government
came off with first honors in the first
round of the fight.
The objection found to the New
York decision by Attorney Wicker
Wickersham was the decision of the
court, dismissing the petition concern
ing the individuals, dismissing the Pc
> tition as to the Imperial Tobacco com
2 pany, the British-American Tobacco
l. company, and the domestic corpora
;. lions controlled by the latter, and al
3 SO the petition as to the participation
of the United Cigar Stores company
in the trust.
i The American Tobacco Trust, as
: the company has been popularity term
= ed, is composed of sixty-five corpora
1 TONS The largest eight concerns in
e the trust are the American Tobacco
company, $11S,931 500; Imperial To
bacco company of Great Britain, $50
+ O0O, 900; Havana Tobacco company
$35 900, 900; the American Snuff com
e company, $2O,O0O,00 American Stog
4 Re company, $11,s55,00 MacAndrews
& Forbes company, $7,000,0O0; ano
the United Cigar Stores company, ST.,
l65O,OOO. The domestic companies con
sumo 100000, 900 pounds of tobacco an
|. nually.
] The original American Tobacco com
pany was organized by James B. Duke
and several others in 1890. In two de
! cades it had absorbed practically the
entire tobacco industry of the United
States and in the language of Attor
ney General Wickersham, obtained Il
\ through "duress, wicked and unfail
. methods"
Admit Organization.
The American Tobacco company, III
, answering the allegations of the gov
t eminent, admitted organization of the
y various companies named in the gov
g ernments complaint, the purchase b,
+ it of the plants and businesses, ant
e the general unification of the inter
+ ests through the consolidation and &C
e quisataion of stock in these compan
|. les. 1t denied, however, that there
Il trade, either in the United States OF
o Great Britain. The properties tina
lwere acquired, it declared, were &C
e Quired as investments. These com
d panies, a majority of whose stock il
held by some other, are either rur
as branches of the owner. the seper
: ate organization being preserved fo1
q trade purposes, or are uncontrolled b.
and in active competition with thu
owning companies and with each 9th
Ier it declared. 1t is also averred tina
e interstate and foreign commerce hat
9 not been restrained or monopolized.
e The history of these cases in thu
r supreme court of the United State:
q shows that on February 1, 1909, mo
ition was made to advance the cas'
Il for hearing. Argument was set TO
e October II, 1909, but on that date tn
y leases we're reassigned for hearing De
n cember IS, 1909 Owing to a crowded
docket, the cases were reassigned TO
e january 5, 1910, when they were iai'
before the court. In the following
e April, the court of its own motion re
5 stored the cases to the docket to b.
: reargued. They went over until tn
+ fall of 1910.
Before the fall term of court, Jus
!tice Brewer died, and later Chief Jus
!tice Fuller. Before congress convened
h Justice Moody resigned The deplete'
/ bench made it advisable to have tn
= leases reargued before a full bench
consequently after appointments wer'
! Imade, the cases were docketed and as
signed for argument on aJnuary )
1911.
Governments Demand
. Attorney General Wickersham ant
: Assistant Attorney General Reynolds
: lin presenting the governments con
Il - 49,