The daily telegram. [volume] (Clarksburg, W. Va.) 1901-1926, 1911-05-30
Like tie Standard 9
in Restraint 8 Iface
Says the Court
Of TElE Case
Is a Sketch Of Much Interest
to All Those Studying
the Trust Question.

The Supreme Court OF the Unttqd
States late yesterday held that the
American Tobacco Company opaF
ates in restraint OF trade ana IN W.
oIation OF the Sherman anti-trust
law
The American Tobacco corpora-
t!ons were made the target % TIE
second big trust prosecution %
recent years. The s{rst vas the
standard OIL Company Becedsa
the testimony taken In the tobaceo
case was not so extensive as that
in the Standard Oil. the Two eases
were before the Supreme Cont -
the United States for considerations
at the same time.
The attempt of the government 70
dissolve the Tobacco corporation as
violating the Sherman anti-efust
law took shape in 1907. In that
year a petition was hled IN the
United States circuit court At New
York. The government asked that
the American Tobacco COMPANY. 90
officers, directors and aflliatod cor
porations. be prevented and enjoined
from restraining and monOpolizins
commerce in tobacco.
The restraints and the monopoiies
alleged by the government were
said to have been obtained By az 81
tricate system OF corporate orBef
cations. Tt being In 1926 when
the first American Tobacco Company
was organized. The new Seoupaily
took over the business Of hve In
dependent cigarette concern
In 1898, the ContinentaI Tohacco
Company was Incorporated 70 TAKE
over the plug tobacco busIness Of
the American Tobacco COMPANY anu
that OF i've Independents plug manii7
facturers.
In 1900, the American SnuR Cons
pany was incorporated TO take over
the snuff business Of the American
Tobacco Company, Of the Continen7
tai Tobacco Company, and OF two inc
dependent manufacturers.
In 1901, the American Cigar
Company was Incorporated to take
over the business Of the American
Tobacco Company and other naanu-
Eacturers and sellers OF cigars, che
roots and stogies.
In the same year, the Consolldatea
Tobacco Company was incorporated
to take over in exchange for ita
bonds substantially all OF the stock
of the American Tobacco COMPANY
and the Continental Tobacco Cons
pany.
IN 1903, the American stoEle
Company was incorporated to take
over the stogie business OF the
American Cigar Company. the
American Tobacco Company and the
Continental Tobacco Company.
In 1904, the American Tobacco
Company. the Continental Tobacco
Company and the Consolidated To-
bacco Company were merged into
the present American Tobacco Cons
pany.
The government claimed that All
these organizations were createu
with the definite purpose to destroy
competition and they accomplished
that purpose. Each step was at
tackled as a part OF an unlaWtui
plan, whose Development ana
progress was advanced. 1t was
ClATRGQp Dy uuAN7ssor nFfA
unfair methods intended to drive
out and keep out competitors and
secure monopolies.
The defendants claimed that nota-
ing was to be found in the organtza-
ton of these corporations. but the
orderly, natural and legitimate de-
velopment of great business. q iaess
said the acquisition had been proper
and that no intent to restrain trade
or monopolize trade had led 70 me
creation of the corporal
In addition, It was nay ,
the American Tobaeco my az
auired control OF the GaF
stores Company, which ~ TO-
tail stores in large cite md there-
by was seeking dominion "a tho re-
tail business. an avenue baoIutely
necessary to effective comps itton.
The Tobacco organization vas
charged with having q monopoly q
the llcorice paste, required Ia the
OF tobacco, the ac-
Andrews & Forbes Company or
zanized by the continental having
no competitor. It was Hatd.