Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1911-05-30

/ responsibility in the case as ulip' teu
i ~ the court below. Instead OF dls-
| missing the bill as to the Imperial
| Tobacco Co, the socalled BrlusH
| trust and as to the British Amerlcah
| Tobacco Co. the creation of the two
| parent tobacco trusts, these two cor
| pcrations were held to be Co-operators
| in the unlawful combination. So too
| was the United Cigar Stores Co, a
| retail organization with stores
| throughout the country.
Unlike the Standard Oil Co, which
took no steps today for hearing, Will
liam K. Perkins of counsel for the
American Tobacco Co, asked the
court after the announcement of the
decision for ieave to present a petition
and a stay of the issuance OF the man
date of the court 80 days. The re-
quest was granted. Shortly atterwafa
the court adjourned until next DC
tober.
Chief Justice Whites opinion may
be grouped under three heads. First
| he gave a statement OF the history oil
| the case and dwelt upon what ne
called the "UndisPuted facts. Next
he took up the NEE ming of the Sher-
man antitrust law and its application
| to the case at bar, and lastly, he
considered the remedies to he applied.
AT the outset of his statement OF
facts. he divided the So American cor
porate defendants into three groups
TIE American Tobacco Co. because
| of its dominant relation to the sub
| iect matter of the controversy was
designated as the Primary defend
ant" The American Snuff Co, the
American Cigar Co. the American
| Stogie Co, MacAndrews and FORBES
Co, and the conley Foil CO., were
| named as Accessory defendants
| The SO other American corporations
| were denonIinated the Subsidiary de-
| PENDANTS" The two English corpor-
ations, the Imperial Tobacco Co, ana
the British American Tobacco Co, as
well as the % individual defendants
headed by James b. Duke, remain
unc,assified.
The "Ilndisputed facts" in the case
we're divided by the chief justice IN
to two periods The one being from
the time OF the organization of the
first. OF tile old American Tobacco
Co, IN 1890, to the organization OF
he Continental Tobacco Co.. in 1898,
and the other being from the date
of that organization to the beginning
of the case under review.
The chief justice dwelt at length
upon the organization of the old
American Tobacco Co, in January,
1890. lust before the Sherman anti
described
the organization of the American
Tobacco Co. to carry on the business
Of 1--WE distinct concerns which. at
the time were manufacturing % per
cent. of all the domestic cigarettes
produced in the United States. Prior
to the organization of this company
the chief justice said that the five
concerns were engaged in Pierce and
abnormal competition.
lie told in much detail how the
American Tobacco Co expanded. BY
the end of 1891, he said, the company
mad become factor in all branches
Of the tobacco business. Specific
Instances of coNtraets being entered
into to prevent persons who sold out
TO the American Tobacco Co, from
10 to 20 years were cited. The Amer
lean Tobacco CO. acquired between
1891 and 1893. he said, Is growing to-
bacco concerns. The organization of the
Continental Tobacco Co. was next de-
scrioed.
There is no dispute" says the chief
Justice, that as early as 1893. the
president of the American Tobacco
Co, by authority of the corporation,
sought to bring about combination
of the plug tobacco interests and upon
the failure to accomplish this, rulnous
competition, by lowering the price of
plug below its cost, ensued. As re-
suit of this warfare. which continued
until 1898, the American Tobacco Co.
sustained severe losses aggregating
more than $4,00D,000 The warfare
produced it's natural result not only
because the company acquired during
the last two years of the campaign,
as we have stated, control of import
ant plug tobacco concerns, but others
engaged in that industry came to
terms. We say this because in 1898,
in connection with several leading
plug manufacturers, the American
Tobacco Co. organized New Jersey
corporation, styled the Continental
Tobacco Co. for trading and manu-
featuring" with a capital of $4,000
|000. afterwards increased to 100000,
600.
The new company issued its stock,
the chief justice said, and took trans
fers to the plants, assets and busi-s
nesses of five large and successful
plug manufacturers. The American
Tobacco Co, transferred to 1t its plug
business and MIR. Duke, president of
the American Tobacco Co. also be-
lcame president of the Continental Co."
The second period, or that follow
ing the organization of the Continental
Tobacco Co. was narrated next. OF
these years, Chief Justice White said: