Bryan daily eagle and pilot. [volume] (Bryan, Tex.) 1909-1918, 1911-05-30
history OF LITIGATION.

fust prosecution or recent years
irst was the Standard Oil. Be-
"A the testimony taken ins the to-
A8q case was not so extensive as
In the Standard Oil, the two
m were before the supreme court
reconsideration at the same time.
The attempt of the government to
solve the tobacco corporation as
Mating the Sherman antitrust law
* shape in 1907. In that year a
Hilton was filed in the United States
tuit court at New York The gov
Hnment asked that the American To
Ijcco Company, its officers, directors
M affiliated corporations, be prevent
4nAnd enjoined from restraining and
)nopolizing commerce in tobacco.
The restraints and the monopolies
&*ged by the government were said
have been obtained by an intricate
item of corporate organization. 1t
gan in 1890, when the first Ameri-
l Tobacco Company was organized.
e new company took over the bust
4 IS of five, independent cigarette con.
rns.
In 1898 the Continental Tobacco
Company was incorporated to take
ger the plug tobacco business of the
merican Tobacco Company and that
five Independent plug manufac-
yurers
q In 1900 the American Snuff Com
Dany was incorporated to take over
fhe snuff business of the American
Tobacco Company, of the Continental
Tobacco Company and of two other
Independent manufacturers.
g In 1901 the American Cigar Com
lpany was incorporated to take over
1.-The business of the American Tobacco
YCompany and other manufacturers and
sellers of cigars, cheroots and stogies
In the same year the Consolidated
take over in exchange for its bonds
substantially all the stock of the
\ American Tobacco Company and the
Continental Tobacco Company.
In 1903 the America Stogie Com
pany 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 Com
pany, the Continental Tobacco Com
pany and the Consolidated Tobacco
Company were merged into the pres
ent American Tobacco Company.
The government claimed that all
these organizations were created with
the definite purpose to destroy COM
petition and that they accomplished
that purpose. Each step was attacked
as a part of an unlawful plan, whose
development and progress was adj
vanced, it was charged, by duress, OPP
preston and unfair methods intended
and secure monopolies.
The 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 acqul-
sitions had been proper and that no
intent to restrain trade or monopolize
trade had prompted the creation OF
the corporations.
In addition, it was charged that the
American Tobacco Company acquired
control of the United Cigar Stores
Company, whc hconducts retail stores
in large cities, and thereby was seek
ing dominion in the retail business,
an aveneu absolutely necessary to eff
fective competition.
The tobacco organization was
charged with having a monopoly of the
licorice paste, required in the manu-
facture of tobacco, the MacAndrews
& Forbes Company, organized by the
Continental having no competitor, 1t
was said
It was also said that the defendants
had a monopoly in the tinfoil business,
the Conley Foil Company, of which
the American Tobacco Company held
a majority of the stock, producing 20
per cent of the tinfoil manufactured
in this country. Both the licorice and
the foil monopolies were said to have
been obtained in violation of the Sher-
man antitrust law.
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
TO Great Britain except as to the pur-
chase of certain amount of Leaf. in
America and the former should limit
it's business to the United States. 1t