The evening world., 1911-05-29
we're merged into the present American
Tobacco Company.
To Deetrov Cor%petitIon.

Tobacco Company.
To Destroy Competition.
The Government claimed that all these
ORGANIZATIONS were created with the
definite purpose to destroy competition
and that they accomplished that pur-
pose. Each step was attacked as a part
OF an unlawful plan, whose development
and progress was advanced, II was
charged. by duress, oppression and un-
fair methods intended 20 drive out and
keep out competitors and secure mon
opolies.
The defendants claimed that nothing
was 10 be found in the organization
OF these corporations but the orderly.
natural and legitimate development OF a
great business. They said the acquisi-
lions had been proper and that no In
tent TO restrain trade or ~monopolize
trade had prompted the creation OF cOr
poratlons.
In addition Il was charged that the
American Tobacco COMPANY acquired
control Of the United Cigars stores
Company. which conducts retail stores
in LARGE cities. and thereby was seeking
dominion in the retail business. an ave-
llNe a0NDluANAG IFt'NHhlJ w tilfNllNf
competition.
The tobacco organization was charged
with having a monopoly OF the licorice
paste required in the manufacture Of
toacco. the MacAndrows & Forbes
Company, organized by the Continental,
having no competitor. II was said.
II was also said that the defendants
had a monopoly In tho tin foil bust
ness. the Conley Foil Company. OF
which the American Tobacco Company
held a majority Of the stock, producing
Is per cent. Of the tin foil man1fac-
tured In this country. Both the ~licorlce
and the foil monopolles were said 10
have been obtained In violation OF the
Sherman antitrust law.
The Foreign Trade.
Another phase Of the litigation con-
cerned the foreign trade. The petition
charged that the American Tobacco
Company had entered into contracts
with he Imperial Tobacco Company,
the so-callcd british Trust whereby
the latter should limit It's activities to
Great Britain except as 10 the purchase
of a certain amount OF leaf IN Amer
lea ana the former should limit Its
business TO the United States.
II ~as"alleged that the two trusts
0acco COMPANY TO take over the exror,
business Of both and divide the world
between them. These contracts were
made In Great Britain.
The Circuit Court found that there
existed a restraint or commerce. but
said nothing about the charges or mo-
nopol.Zing. In It's decree the Cour ais
missed the petition a. TO the Imperial
company n the br1tish- Amerlcan
Company, me from MS feature ~ me
decree the Government appea en 70 TIE
supreme Court dismissed the pcti'loh US
TO the United 'lshr stores
ana from TINS 100 inc "oNe'""c"' ny
poalei.
The circuit 'ourt uecreeo lhat 'ne
American Tobacco tno M" ~
can snun ,ne MI -,
the .Nn'et!ea s.osIs
ana N~acahureW VIZ ~
uhla"lui coihplna''ons ~ -
taem from ehsas'ns III ,nt.Is.a'e
cign commerce. ron ,nis " 49,, o.
an,s appealeu :. "
IN aht.o,o, boc,uso ths
nv "usvn mnnnn. 80 Inc Individ,
tohIey ron .o"panS n
uai nar,,os q, ,ho COW,
hunc, W.. a,d hac,uss nil wer,
~. me- a,,a,,n,,,g 40 ,~nonopolize
Wv " -. $500"
oo'" NPPe'~
The Circuit Court decreed that I'M
American Tobacco Company. the Amer
lean Snuff Company, the American
Cigar Company. L. Iorlllard Company
X. J. Reynolds Tobacco Company
Rlackwell's Durham Tobacco Com
pany and the Conlcy Foil Company
held shares in specified corporations