The sun. [volume] (New York [N.Y.]) 1833-1916, 1911-05-30
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I0Mbk SHy95 TY6i331
lority part Of the total production in the
| | nited 81 ttes
3 American Cigar Company.
Prior TO 1901 the American and Con-
tnent1l tobacco Companies manufac-
fnred; sold and distributd cigars. stogies
and cheroots, In the yelr az ited the com :
panies determined TO crga ge in the busi-
ness OF u large SCI 10. Under agreemen'
with Powell. smith + Co. llrge manu-
facturers and de1lels in cigars. they
caused the incorpora tion in New Jersey
/ OF m" American Cigar Company. for
/ trading and manufacturing DC, 10 which
all three conveyed their ss id business.
and II has since carried oar the same
The American and Continental comp mic.
each acquired 49, per cent of the share.
and Powell. smith 4 Co. per cent; the
original capitalization was $4,000 coo
/ ,afterward s2O,Uc OoO,, and more than
! ihree-fourths is owned by the former
4 he cigGr company acquired many COM
petl'or' ,partner3hips ard corpordti ions
engaged m intsrs. tte and foreign COM
! merce, taking from the parte, GOV enant1
against eng ging IN the tobacco business.
and IL has al-o procured the organiza ion
OF controlled CORPORATIONS which have
acquired conDetiug manufacturers. job
bers and dist rib,ifors in the United States.
Cuba and Porto kico. IL nanufsctures
sells and distributes e considerable per-
centiGe Of domestic cigars: is the dom
/ mating factor in .he tobacco business.
/ foreign and domestic. in Cuba and Porto
\ Rico and Is there engaged in tobacco
! pl1nting. II also controls corporate job
hers in California. Alabama. Virginia.
Peunsylvanin. Georgi1. Louis isiana, New
Jersey and Tennessee.
I.irorice Plant Also Absorbed.
= The Mac Andrews 4 Forbes Com
pany. manufacturers Of lcorice:
There i no question that licorice
paste L. an essential ingredient in the
manufacture Of plug tobacco. and that
one who Is debarred from obtaining
such paste would therefore be unable
I 10 engage in or carry on the manufacture
of such product. The control over this
article was thus secured: In May. 1902
the Continental Company secured con-
troll of MacAndrews 4 Forbes Company
Of Newark y J and organized for trad-
ing and manufacturing corporation
known a. the MacAndrews 4 Forbes
Company with capital OF S1.UO0.UO
81. 90 preferred and 81 OIL, 90. which
took over the business OF MacA Andre VS.
& Forbes Company and another large
competitor The Continental Company
acquired twothirds of the common stock
by agreeing 10 purchase its supply Of
paste from the new company. The Amer
CdN tObdctp tOulpauy, al tHe tifle OF
the fling Of the bill was the owner Of
81. III so OF the common stock and $780,
uOD preferred. BY various purchases
and agreements the MacAndrews d Forbes
Company acquired substantially the busi-
ness OF all competitors. Thus in June.
| 1912, il purchased the business OF the
Stamford Manufacturing Company OF
stamford. Conn. and incorporated the
National Lcorice Company, which ac-
Quired the business OF Young 4 Smylie
and F y and v p. Scudder. and the Ma
: ttional company agreed with MacAndrews
bacco manufacture. In 1905 all the stock
in the J. s. Young Company Nf. soo. .OOo).
which had been organized to take over
the business OF the J ). Young Company
Of Baltimore, Md. was acquired by the
Mac Andrews d Forbes Company. The
excess OF o. per cent. Of the licorice root
consumed in the United States.
American StOsie 90. Acquired.
-t5l American Stogie Company.
In May. 1872 the American Cigar
Company and the American and Conti-
mental tobacco compa MES caused the
American Stogie Company TO be incor-
porated in New jersey with Sli .s79. 900
capital, which Immediately took over
the stogie and tobacco busin.ss as OF the
companies named in exchange for =. 2O6
2I5 stock and then in the usual ways
acquired the business OF others in the
manufacture. sale and distribution OF
such products. with covenants not TO
compete, II acquired in exchange for
S3.s+7.725 stock all shares Of the United
States Cigar Company (which had pre-
viously acquired and owned the business
OF important competitors) and subse-
quently took the conveyance OF the plant
have been held by defendant. the Ameri-
can Cigar COmpanY.
As we think the legitimate nfeRenccs
dedncible from the undisputed facts which
We have thus stated will be sufficient TO
dispose OF the controversy. we do not
deem IL necessary to expand this state
inent SO az TO cause IL to embrace a
recital of the undisputed facts concerning
the entry OF the American Tobacco Com
pany into the retail trade through the
acquisition Of a controlling interest in
the stock Of what is known as the United
Cigar stores Company as well as to some
other subjects. which for the sake Of
brevity we likewise pass over in order
10 come at once to a statement concern
ing the foreign companies
The Foreign Companies.
The English companies:
In September. 1891. the American To- |
bacco Company purchased for S,3E 600
n Liverpool tEngland) corporation known |
as Ogden's Limited. there engaged In
products, 4 trade conflict which at once |,
ensued caused many Of tho English manu-
facturers TO combine into an ncorpora- |
tlon as the Imperial Tobacco Company /
of Great Britain and Ireland capital |
ELS 1000 afterward increased 10 els CO. !
900 sterling. The trade war was contin- |
ued between this corporation and the |
American Tobacco Company. with a re- /
suit substantially Identical with that !
which had hitherto. as We have seen
arisen from such "A situation.
In September, 1902. the Imperial and ,
the American companies entered into |
contracts executed in EnglBndh stip- |
ulating that the former should limit It's /
business e. tho United Kingdom. except .
purchasing leaf in the United States
ut buys 5tW0.OpO ponnds annually;
that the American companies should |
limit their business To the United States
its dependencies and Cuba. and that ,
the British American Tobacco Company.
with capital Of f8,ooo ,0DO sterling appor- !
toned between them. should be organ
lied, take over the export business Of .
both and operate in other countries &c
This arrangement was Immediately put
into effect and has been observed
The Imperial company holds one
third and the American company two
thirds Of the capital stock OF the British
American Tobacco Company, Limited
The latter company MAINTAINS a branch
Office in New York city and the vice.
president Of the American Tobacco Com
pany is a principal officer This com