The Vinita daily chieftain. [volume] (Vinita, Indian Territory [Okla.]) 1902-1913, 1911-01-06
HEARING BEGUN IN
TOBACCO CASES
Organization of Tobacco Companies
Now Alleged to Be Unlawful Has
Spread over Many Years.
BY Associated Press.

Washington, D. c., Jan. 6.-The suit
for the dissolution of the Tobacco
Trust" is being argued before the
supreme court today.
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 was brought by the
department of justice against more
than sixty corporations and a number
Oh individual defendants headed by
James B. Duke.
The process of organization of the
combination alleged to be unlawful
spread over many years. 1t began
in January, 1890 Then the first Amer
lean tobacco company was incorporat
ed for the purpose, it is alleged, of TAX
ing over the business of five independ
ent 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
bacco company and the business o.
five other plug tobacco concerns.
In 1900, the American Snuff com
pany was incorporated for the alleged
purpose Of taking over the snuff busi
ness of the American Tobacco com
pany and of two or three independent
snuff manufacturers.
In 1901, theh 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 manufacturer
of cigars.
In the same year, the Consolidated
Tobacco company was incorporated
for the alleged purpose of taking Owe
as holding company in exchange fol
its bonds substantially all of the stocl
of theh American Tobacco company
and the Continental Tobacco company
In 1903, the American company wa.
Incorporated for the alleged purpose
OF taking over the stogie business o.
the American Cigar company, tn,
American Tobacco company and the
Continental Tobacco company.
In 1904, the American Tobacco com
pany, the Continental Tobacco com
pany and the Consolidated Tobacco
company were merged into the presen
American Tobacco company.
1t is alleged that in addition to this
organization the American companies
in 1902 entered into contract with
British company, the Imperiad To
bacco company, whereby the American
companies were limited to their bust
ness to America and the British tt
Great Britain, except that the latte
could buy leaf tobacco in the United
States. 1t was alleged that the British
American Tobacco company was or
ganized to take over the export bust
ness of both the British and the Amer
lean companies.
Testimony was presented to Prov
that the defendants produced 20 pc
cent of the smoking tobacco made il
this country; 7S per cent of the Gig
arettes; 81 per cent of the plug ant
twist tobacco; 81 per cent of the fine
cut tobacco; SO per cent of the littl,
cigars; SO per cent of the snuff; 81
per cent of the licorice paste; rs pc
cent of the tin foil and most of tn,
tobacco extracts, boxes and contain
ers
Three of the four judges on the cir
cult bench united in decree. Thi!
decree dismissed the petition as t
the Imperial company and the British
American company, and the United
Stores company, which was claimed tt
be the retail branch of the organiza
ton. This action formed one of tn,
grounds for appeal by the govern
ment to the supreme court.
The decree adjudged the other de