New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-05-30
TOBACCO COMPANY'S SUIT
First Action Against Concern
Taken Here in 1907.
ORGANIZED II YEARS AGO
Charged with Making Combina.
ton with British Trust to
Divide Worlds Business.


Divide Worlds Business.
The attempt Of the government 10 dis
solve the American Tobacco Company as
violating the Sherman antitrust law took
form in 1877.
| On July 10 or that year the government
fled in the United States Circuit Court in
this city bill in equity. which asked that
| each constituent company Of the trust be
restrained from engaging in interstate or
foreign commerce under the present or
ganlzatton. that each company be pro-
hibited from owning eny stock IN any other
company in the trust that all OF the con
tracts. combinations and conepiracies"
complained Of he declared illegal. and that
each COMPANY he restrained from carving
them out: that the court declare illegal
and abrogate the fundamental contracts on
which the merger cf the American and
English tobacco interests was effected in
| the fall 81 1902. that the trust and all 81 its
constituents be restrained from continuing
! IN the monopoly Of the tobacco leaf bust
ness Of the country. and that the court -
II deem T. wise. appoint receivers. 70 take
possession cf all m. assets Of the various
I y
W
The defendants named IN The bill were
sixty-fvs corporations and tventy-n,ns in
dividual. TIE corporations were The
American Tobacco Company and its .ubor-
dinete companies ths American SnuT
Compsnv. The SNUFF Trust the NacAn-
drews E Forbes Company. the icorice
| Trust: the Conlev Foil Company. the Tin
! foil Trust the American Cigar COMPANY.
The United Cigar Stores Company. the
American Stoeie Company and the TWO big
English allies Of The American Tobacco
! Company, the Imperial Tobacco Company
and III. British-Anerican Tobacco Com
PAW. Among the individuals named yer.
/ Thomas 2 RYAN and James z Duke ana
! the other chief directors and ofrcers OF
the American Tobacco Company and af-
| fliated concerns
Tc Dominate Tobacco Industry.
| The bill traced the progress of the To-
bacco Trust as far back as 1871. alleging
that the defendants have had the Tex
panding purpose 70 dominate 'he tobacco
| industry" and IN pursuance ~ that pur
pose have progressively absorbed com
petitors and driven them out OF business
BY attacking them and threatening 10 al
/ tack them With ferocious competition and
unfair trade methods ard then buy-rE them
| in. or through offers OF irresistible sums 81
money
/ The plants secured. the complaint con-
tinued. were zenerallv abandoned but the
names ard brands IF the old concerns we're
used IN connection nth the products ~
plants operated BY fha trust y was FUR
thsr alleged that the defendants had en-
tered into contracts. combinations and con
spiracies 70 apportion among themselves
the trade Of the world ths American To-
bscoo Company 70 operats in this country,
the Imperial Tobacco Company ~ London
TO cover the English field and The British
American Tobacco Company to conduct
business IN the rest 81 the world
Another allegation vas that the defend
! ants had concealed their ownership OF con-
trored companies ard procured and per-
r-ittsd such cor1ps nies 20 te held ONT and
advertised as wholly independent OF the
trust OF any continuation, intending 20
! r,isfead deceive and defrsud the public
and more effectively cripple existing com
peti-ors and keep out rev ones II vas
I also charged thet the trust Rad n certain
| districts reduced prices of irs products be
lou the cost ~ production. Nth ne %
Zee, OF DESTROYING competition. and IN otnAr
! districts had hid vt the price Of rsv ma
! ,er+als above the real value. 1ith the same
object
The cas-. ra= argued in Msy. l1s. IN the
Tinted states Circuit Court IN this city
before Judges Ls oor1be Moves. COKE ana
Ward and IN Novsn1ber the Arst three
handed down opinions UNFOLDING the gov
ernr1ert contention, Judge Ward present
ing dissenting opinion. Il vas agreed ~
al four Judges thst the case snouid ~
dismissed as 70 the United cigar stoves
| Company. The Imperial Tobacco COMPANY
and the British American Tobacco com
nsnv- and that no receiver should he sp-
nointed for anv ~ the companies While
,ha court found that = violation ~ the
Sherman law had been committed and that
an Injunction should issue against some ot
,he defendants 10 prevent continuance NJ
.ucb violation. the decision cleared the
American Tobacco Company Of the charges
~ nursuinz dishonest or oppressive prac-
| tees
Declared Unlawful Combination,
The Circuit Court decread that the
American Tobacco COMPANY, the Amer
can Snuff Company. the American cigar
| Cor,nsnv the American StogiA Company
and the NscAndreUs g forbes Company
were unlawful combinations. and 70
strained them from engaging in interstate
| mr. foreign commerce From this the de-
| PENDANTS appealed 70 the Supreme Court.
| So did the government The government
| Objected because the Conlev Foil Company
and the individual defendants. headed ny
lanes 2 Duke. were not made parties 10
| the conspiracy 70 restrain. and because all
were not held 70 he attempting 70 nonopo-
/ HZe
TIL. case was argued before the Suprems
/ Court NJ the United States in January. 1910
John g Johnson. Delaney Nicoll and "
Bourks Cochran appearing for the defend
ants. and ! o. McReynolds for the gov
ernment. on the reargument. I'm January.
| 1q1I Nessrs Johnson. Nicon and Horn
bIover presented the case Of the defend
| ants and ATTORNEY General Wickershsn,
and Mr. McReynclds argued the cause %
| the government
The old American Tobacco "ompanv vas
| Incorporated az Trenton in January. 1880
as consolidation Of the cigarette concerns
Of Allen & Ginter. ". Duke. Sons & CO.
| the Kinney Tobacco Coupany " Kim
hall q CO and Goodwin & 90. II was not
until 1895 however. that the active develop
corporation OF to-day began. through me
absorption Of the Leading independents and
Of the Cuban manufacturers IN that yea