Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1911-05-30
HIGHEST COURT
UPH0LDSHOURS
OF SE|RV||CEL Law.
CONTINUED From Page j.

Ever since the standard oil case wa
decided two weeks ago, prediction
have been made that today woul
, bring the answer to the question as t
whether the tobacco companies woul
be declared unlawful and compelled
to dissolve An immense amount o
business is greatly transflxed on tn
:. last day of the term and 1t was expect
ed that in addition to the tobacco case
most of the other thirty-seven case
which have been under consideration
by the court would be decided before
the day was over.
History Of Case.
The American Tobacco corporations
were made the target of the secont
big trust" prosecution of recent
Years The first was the Standard Oil
Because the testimony taken in the
tobacco case was not so extensive az
that in the Standard Oil, the two
cases were before the supreme court
for consideration at the same time.
i The attempt OF the government tc
dissolve the tobacco corporation as
violating the Sherman antitrust law
took shape in 1907. In that year pc
tition was filed IN the United States
circuit court at New York. The gov
eminent asked that the American To
bacco company, it's officers, directors
and affiliated corporations, be pre-
vented and enjo1ned from restraining
and monopolizing commerce in to.
bacco.
The restraints and the monopOlies
alleged by the government. were said
to have been obtained by an intricate
system of corporate organization. 1t
began in 1890, when the first Amer
| lean Tobacco company was organized.
The new company took over the busi-
ness of five Independent cigarette con-
Germs.
In 1898 the Continental Tobacco
company was incorporated to take
over the plug tobacco business Of the
American Tobacco company and that
Iof five independent plug manu-
facturers.
In 1900 the American Snuff COM
pany was incorporated to take over
the SNUFF business of the American
Tobacco company Of the Continental
Tobacco company, and Of two other
Independent manufacturers.
In 1901, the American Cigar com.
pany was incorporated to take over
the business of the American To-
bacco company and other. manu-
facturers and sellers of cigars,
cheroots and stogies.
To-
Tobacco company was incorporated to
take over in exchange for It's bonds
substanti lily all of the stock Of the
American Tobacco company and the
Continental Tobacco company.
In 1903, the American Stogie COM
pany was incorporated to take over
the stogie business of the American
Cigar company, the American To
bacco company and the Continental
F, Tobacco company.
In 1904 the American Tobacco COM
pany, the Continental Tobacco COM
pany, and the Consolidated Tobacco
company were merged into the pres
ent American Tobacco company.
1 The government claimed that all
these organizations were created with
the definite purpose to destroy COM
petition and that they accomplished
that purpose. Each step was attacked
as part Of an unlawful plan, whose
development and progress was ad-
vanced, 1t was charged, by duress, op-
preston, and unfair methods intended
to drive out and keep out competitors
and secure monopolies.
The defendants claimed that moth
ling was to be found in the organiza-
ton Of these corporations, but the or
derby, natural and legitimate develop
ment of . great business. They said
the acquisitions had been proper and
that no intent to restrain trade or
monopolize trade had prompted the
creation C corporations.
In addition. it was charged that the
American Tobacco company acquired
control of the United Cigars Stores
company, which conducts retail stores
lin large cities, and thereby was seek.
ling dominion in the retail business, an
avenue absolutely necessary to ef-
fective competition.
The tobacco organization was charg-
ed with having a monopoly OF the
licorice paste, required In the manu-
1aCture OF TOBACCO, tue MdCAuuT0WS q
Forbes company, organized by the
Continental having no competitor, it
was said.
l. It was also said that the defendants
had monopoly in the tin foil busi-
ness, the Conley Foil company, Of
which the American Tobacco CON-
pany held majority of the stock, pro-
lducing Is per cent of the tin foil
manufactured in this country. Both
the licorice and the foil monopolies
were said to have been obtained In
violation OF the Sherman antitrust
law.
!. Another phase OF the litigation con-
cerned the foreign trade. The petit.
ton charged that the American To-
bacco company had entered into con.
tracts with the Imperial Tobacco COM
pany, the so-called British trust"
whereby the latter should limit it's
activities to Great Britain except as
to the purchase of a certain amount Of
leaf in America, and the former
should limit it's business of the Unit
L