Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1911-01-07
Government Claims Great Com
bine Is in Violation of Both
Sherman Act and of Wilson
Tariff Law of 1894.
EXHAUSTIVE HISTORY
UF GREAT ORGANIZATION
Claimed It Has Not Only Ellmi-
mated Competition in United
States but in British Isles and
in Cuba,

in Cuba,
NY Morning Journal Special Leased wtrsl
Washington, Jan. s--oral argu-
ment OF the proposed dissolution OF
the so-caiied tobacco trust hegan
late today in the supreme court
As a year ago, when the dissolution
suit was argued for the. first time
before the court. so today j G. Me-
Reynolds. special assistant 10 the at
torney geenral made the opening adj
dress lie had not concluded his re-
marks when court adjourned until
Monday. Hy arrangement counsel on
both sides agreed to conclude their
arguments IA twelve hours This Will
bring the close OF the presentation
about D. m. next Wednesday. Al that
time the Standard OH dissolution suit
win be taken up for oral argument.
AT least one important result WAS
accomplished in the first few minutes
that Mr.. McReynolds spoke.
He surprised some members Of the
court by saying the dissolution WAS
lasked not only under the sherman
antitrust low, hut under the Wilson
tariff act OF 1894,
MIR. McReynolds told the court this
was the first case that had ever been
brought under the Wilson tariff act.
This. he explained, applied to instan-
ces Of restraint OF trade where an
importer was party
| Much discussion had taken place IN
| the trust cases as to whether the
phrase restraint OF trade" as used in
the Shermnn antitrust lsa was eool-
valent to restraint Of free coinpetI-
ton
Mr.. McReynolds pointed To tho
Wilson act as the congressional IN.
depreciation or the sherman act. pass
ed fo}r years previoup In which all
doubt as TO the meaning had been
removed by using the phrase restraint
Of free competition.
Nearly the entire time that MIR, Me-
Reynolds spoke was devoted To his
tory of tho sp-ralled tobacco trust
from the time the first American To-
baeco company was organized In 1890
for the alleged purpose Of effectine a
monopoly In the cigarette trade, down
to the incorporation In 1904 OF the
new American Tobacco company az
a holding company, controlling sixty
five companies interested In varions
branches of the tobacco business.
He described the plug war; about
1892, resulting in the organization OF
the Continental Tobacco company by
which he alleged. peace was restored
and competition of independents was
eliminated. He told OF similar COM
hnatIons In the snuff, cigar and sto-
gle trade.
These combinations, he described
as designed TO remove competition.
once organized. he told how compet-
Ing plants were purchased each pur-
chnse being accompanied by covenant
on the part of those selling out not
to engage In the business OF manu-
featuring or selling tobacco within
from ten ia twenty years In the unitec
Statce except Nevada and territory
or Two
Finally. he turned to the contracts
of the American Tobacco company
with the so-called British tobacco
trust" the Imperial Tobacco company.
By these contracts. he said the trade
of the world In tobacco had been par
celled out the American trust taxi
Inc the United States and Cuba for
its own the British trust Great
Britain, ireland. the Isle OF Man and
the British American tobacco COM
pnnv, organized by the two trusts car
rying on the tobacco business In the
rest of the world.
lie alleged that competition for the
purehasc 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 or New
York. The proceedings was brought
hy the department OF Justice against
more than sixty corporations and
number of individual defendants head
ed by James II. Duke.
The process Of organization OF the
combination alleged to be unlawful
spread over many years. II began In
January, 1899. Then the first Amer
lean Tobacco company was incorpor-
ated for the purpose, 1t is alleged, OF
taking over the business OF five In
dependent cigarette plants.
In 1898. the Continental Tobacc"
eompnny was incorporated for the
alleged purpose of taking over the
plug tobacco business OF the American
Tobacco company and the business OF
five other plug tobacco concerns.
In 1900. the American snuff COM
pany was incorporated for the aileg-
ed purpose OF taking over the snuff
business OF tho American Tobacco