Arizona republican. [volume] (Phoenix, Ariz.) 1890-1930, 1911-05-30
THE TOBACCO TRUST
ORDERED DISSOLVED
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advanced. it was charged. by duress.
oppression, and unfair methods in
tended to drive out and keen ont
competitors and secure mOnopolies.
Inc defendants claimed that nothing
was to be found in the organization of
these corporations. but the orderly
natural and legitimate development
OF a great business. They said the
acquisitions had been proper and that
no intent To restrain trade or mo-
nopoilZe trade had prompted the Gre
alton of corporations.
In addition ii was charged that the
American Tobacco company ac-
quired control of the United
Cigar Stores company. which con-
ducts retail stores in large cities
and thereby was seeking dominion in
the retail business. an avenue alb
solutely necessary to effective compe-
tition
Other Monopolies.
The tobacco organization was charg-
ed with having a monopoly Of the
licorice paste. required in the man
ufacture of tobacco, the MacAndrews
& Forbes company, organized by the
Continental having no competitor. it
was said
1t 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 n majority of the stock. produc-
ing per cent OF the tin foil man
ufactured in this country. Both the
licorice and the foil monopolies were
said to have been obtained i'm viola
ton Of the sherman antitrust law.
The The Tentacles Abroad
Another phase of the litigation con-
cerned the foreign trade The petition
charged that the American Tobacco
company had entered into contracts
with the Imperial Tobacco company.
the so-called british Trust" whereby
the latter should limit its activities 10
Great Britain except as to the pur-
chase Of a certain amount of leaf in
America and the former should limit
its business to the United States. Il
was alleged that the two "tl1rstq"
organized the BfitiSh-Amer;can To-
bacco company to take oyer the ex
port business Of both and divide
the world between them. Tnesc CON
tracts were made in Grea: Britain.
The circuit court found tia. tIerc
existed a restraint OF commerce. but
said nothing about the charges Of
monopoliZing. In its decree The court
dismissed the petition as - the I'm
perial company and the British Nm,r-
lean company and from this feature
Of the decree the government app. aled
to the supreme court 1t dismissed
the petition as To the United Cigar
stores company. and from this too.
the government appealed
Four OutIawed.
The circuit court decreed that the
American Tobacco company. the
American Cigar company. the Amer
lean StOgie company and MacAndrevs
e 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 lid
the government The government OBJ
jected because the Conley Foil COM
pany and the individual defendants
headed by James r. Duke. were not
made parties To- the conspiracy to
restrain and because all were not
held To he attempting to monopOliZe
The circuit court decreed that the
American, Tobacco company. the
American Snuff company, the Amer
lean Cigar company, p. Lorillard COM
pany, r ]. Reynolds Tobacco COM
pany. Blackwelrs Durham Tobacco
company and the Conley Foil company
held shares in specified corporations
and enjoined them from acquiring the
plants or business or voting the shares
Of and from exercising control over
the subsidiary companies, and en-
joined the subsidiary companies
from permitting control
Both the defendants and the gov
eminent appealed The latter OBJ
jected principally because the I'm
perial Tobacco company, the British
American Tobacco company and the
United Cigar Stores company Were
not included among the subsidiary
companies. and because the holding
companies were not prohibited from
collecting dividends from the "subsid-
larry companies.
The appeals were argued before
the supreme court, first in January.
1910. and the second time in January.
1911. Prominent attorneys appeared
For the government Attorney General
Wickersham and his special assis-
tant. J. G. Reynolds, addressed the
court For the American Tobacco
companies there appeared John u.
Johnson of Philadelphia, Delaney
Nicoll and Junius Barker of New
York. while William b. Hornblower of
New York and Sol NJ. Stroock of New
York for the United Cigar stores
company