Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1911-01-07

! lean Tobacco Co., organized by the
| two TRUSTS" carrying on tobacco bus
| iness in the rest of the world. As
| q result of the combinations he alleged
that competition for the purchase of
leaf tobacco had been eliminated in
| the United States.
The suit under the sherman anti
trust law to dissolve the so-called
Tobacco trust was Instituted IN 1907
in the Circuit Court OF The United
States for the Southern District Of
New York. The proceedings We're
brought by the Department of Justice
against more than sixty corporations
and number of individual defendants
headed by James b. Duke.
The process of organization of the
combination alleged To he unlawful
spread over many years. 1t began in
January, 1890. Then the first Ameri-
can Tobacco Company was incor-
porated for the purpose, il is alleged,
of taking over the business of five in
dependent cigarette plants.
In 1898. the Continental Tobacco
Company was Incorporated for the al
legged purpose Of taking over the plug
tobacco business of the American To-
baeco Company and the business of
five other plug tobacco concerns.
In 1909, the American Snuff Com
pany was incorporated for the alleged
purpose of taking over the snuff bust
ness Of the American Tobacco Com
pany and of two or three independent
snuff manufacturers.
In 19o1. the American cigar Com
pany was Incorporated for the alleged
purpose of taking over the cigar bust
ness Of the American Tobacco Com
pany and an independent manufacture
or ii cigars.
In the same year, the Consolidated
Tobacco Company was incorporated
for the alleged purpose u taking over
as holding company in exchange for
its bonds substantially all Of the stock
Of the American Tobacco Company and
the Continental Tobacco Company.
In 1903. the American Stogie Com
paIy was Incorporated for the alleged
purpose of taking over the Stogie bust
ness of the American Cigar Company,
the American Tobacco Company and
,he Continental Tobacco Company.
In 1904 the American Tobacco Com
pany. the Continental Tobacco Com.
pany and the Consolidated Tobacco
Company were merged into the pres
ent American Tobacco Company.
Ii is alleged that in addition to this
rganization the American companies
n 1902 entered into a contract with a
british Company. the Imperial To-
'acco Company, whereby the Ameri-
an companies We're limited in their
'nsineSs to America and the British TO
treat Britain. except that the latter
ould buy leaf tobacco in the United
;tates. 1t was alleged that the Brit
sh- American Tobacco Company was
arganized to take over the export
business Of both the British and the
american companies.
Testimony was presented to prove
hat the defendants produced 90 per
ent. of the smoking tobacco made in
lis country; 13 per cent. of the
Cigarettes; 81 per cent. OF the plug
nd twist tobacco; 81 per cent. of the |
ne cut tobacco SO per cent. of the
tile cigars; sc per cent. of the snuff:
: per cent. of the licorce paste; Is
or cent. OF the tin foil and most of
lie tobacco extracts. boxes and con-
liners. |
Three of the four judges on the cir
lit bench united in decree. This
'ecree dismissed the petition as TO the
aperial Company and the British |
American Company, and the United |
igaf Stores Company. which was
aimed to be the retail branch of the |
rganization. This action formed one |
the grounds for appeal by the gov
nment to the Supreme Court.
The decree adjudged the other de- |
.ndants to be parties to an unlawful |
combination. but said nothing about |
he monopolizing charges. This fail |
-e furnished another ground for APP |
al by the government. The Ameri- |
IN Tobacco Company, the American
huff Company. the American Cigar
lmpany, p. Lorillard Company. r.
eNnolds Tobacco Company, Black |
ellis Durham Tobacco Company and
Ne Coniey Foil Company were ad-
dged to hold shares in a number of |
,ecified tobacco corporations and en-