The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1911-01-06
TIME is CALLED.
Final Round in the Fight Be-
tween the Tobacco Trust
And the United States Govern
ment Has Begun.
THE OPENING ADDRESS
Is Made by J. G.. McReynolds for
Uncle Sam.
Delaney Nicoll Replies on Be-
half of Defense.
ADDRESS

Washington, jan 6.-The final con-
test over the dissolution of the Ameri-
Can Tobacco corporations began today
in the supreme court of the United
States. J. c. McReyno1ds, special as
sistant to the attorney general Of the
United States, made the opening ad-
dress to the court on behalf OF the
government. He was followed by De-
lancey NicolL one of the half dozen
or more attorneys representing the So
called tobacco trust
History of the Case.
The suit under the Sherman anti
trust law to dissolve the so-called ''to-
bacco 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
of individual defendants headed by
James B. Duke.
The process of organization of the
combination alleged to- be unlawful
spread over many years. It began in
January, 1890. Then the first Ameri-
can Tobacco company was lncorpor.
ated for the purpose, it 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
bacco company and the business OF five
other plug tobacco concerns.
In 1900, 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 1ndepend-
ent snuff factories.
In 1901, the American Cigar com
pany was incorporated for the alleged
oft 70 iTc tho aiO4r hI1Sl-
ness of the American Tobacco COM
pany and an Independent manufact-
urer of cigars. see
IN the same year. the Consolidated
Tobacco company was incorporated Tor
the alleged purpose of taking over ds
a holding company in exchange for its
bonds substantially all of the stock OF
the American Tobacco company anc
the Continental Tobacco company.
In 1908, the American Stogie COM
pany was incorporated for the alleged
purpose of taking over the stogie bust
ness of the American Cigar company.
the American Tobacco company and
the Continental Tobacco company.
Merger In 1904.
In 1904, the American Tobacco conf
pany, the Continental Tobacco COM
pany and the Consolidated Tobacco
company were merged into the present
American Tobacco Company.
1t is alleged that In addition to this
organization, the American companies
in 1902 entered into contract with a
British company, the Imperial Tobacco
company, whereby the American COM
panies were limited in their business to
American and the British to Great
Britain, except that the latter could
buy leaf tobacco in the United States.
1t was alleged that the British-Ameri-
can Tobacco company was organized 20
take over the export business of both
the British and the American COM
panies.
Testimony was presented to prove
that the defendants produced 70 per
cent of the smoking tobacco made in
this country; 70 per cent Of the
cigarettes; 81 per cent of the plug AMI
twist tobacco; 81 per cent of the fin
cut tobacco; SO per cent of the little
cigars; SO per cent of the snuff; 90 per
cent of the licorice paste;. rs per cent
of tn, tin foil and most of the tobacco
extracts, boxes and containers.
Three OF the four. judges on the cir
cult bench united in decree. This
decree dismissed the petition. as to the
Imperial company and the British
American company, and the United
Cigar Stores company, which was
claimed to be the retail branch of the
organization. This action formed one
Of the grounds for appeal by the gov
eminent to the supreme court.
Circuit Court Decree.
The decree adjudgei tie other de-
PENDANTS to be parties to an unlawful
combination, but said nothing about the
inonopolizing charges. This failure fur
nished another ground for appeal by
the government. The American To-
bacco company, the American Snuff
company, the American Cigar company,
P. Iorillard company, r. J. Reynolds
Tobacco company, BlackWelfs Durham
Tobacco company and the Conley Foil
company were adjudged to hold shares
in a number of specified tobacco cor
porations and were enjoined from ac-
quiring the plants or business or yot-
ing the shares of and from exercising
control over these subsidiary compan-
fes. The government was dissatisfied
because the holding companies were not
enjoined from collecting dividends from
the subsidiary companies.
The defendants appealed to the SUI