Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1911-01-07
FOR DISSOLUTION.
Final ContestlAgsinst the
Tobacco Corporation
Is Begun in the Supreme
Court al Washington.
Instituted in 1907 Under the Sher-
man Antitrust Law.

Washington. Jan. 6-Orai arguments
OF The proposed dissolution of the So
called Tobacco Trust We're begun
late toGay in the supreme court o.
the United States.
As gear ego, when the dissolution
suit was argued for the first time
before the court. So today, J. c. Me
Reynolds. special assistant to the at
tDrney genera in charge of the to-
bacco night for the government made
the opening address TO the court H
had not concluded mis- remarks wher
court adjourned until No lddy.
By arrangement with the court.
counsel on both sides agreed to con-
eluee their arguments in l. hours
This will bring the close of the pre-
sentation about p. NJ. next Wednes.
day At that time, the Standard OF
dissolution salt will be taken up il.
oral argument.
Al least one important resalI was
accomplished in The Few minutes that
Mr.. NcReSnolds spoke He surprised
some members of the court by stating
t'ia1 the dissolution was asked not
only under the sherman antitrust
law. but under the Wilson tariff act
Of 1894
Mir. .IcHcynolds told tin court that
this was the firsi case ,hat nau ever
been brought under the Wilson tariff
act. The law. he explained, applied
To instances of restraint of trade whert
an importer was party. Tits infor-
nation was brought out by questions
from Justice Lurton.
Il do this because | never heard
al the Wilson act in this case be-
| fore" said the justice. Mr.. McReynolds
| assured him that It had been men
| toned IN the first argument
| Much discussion had taken place il
| the trust casts az to whether the
| phrase Restraint Of trade" as used il
| The sherman antitrust law, was
! equiVale nj to Restraint of free com
| petition
Dr. McReynolds pointed To the Will
son act as the congressional inter
pr, tation Of the Sherman act. passed
cur years previous in which all doub
as tn the meaning had been removed
Ay using the phrase Restraint %
free competition.
| Nearly the entire time that Mr.. Nc
| Reynolds spoke was devoted to a his
| tory If the So-called Tobacco Trust
| from the time the first American To
! hacco Co, was organized in 1890 fo
the alleged purpose of effecting a
monopoly in the cigarette trade. dow
to the incorporation in 1904 of the new
| American Tobacco Co, IS "A holdin,
| Co.. controlling 60 companies inter
| eStcd in various branches of the TO
| bacc0 business.
He dc scribed the Plug war abou
1884, resulting in the organization o
the Continental Tobacco Co. by which
he alleged, peace was restored art
| competition of independents was clmi
mated He told of a similar combina
| ton, in the snuff. cigar and stor
trade "A stogie as your honors ma.
know he said, lis a cheap cigar"
| These combinations he described a
| designed to remove competition. One
organized he told how competing
plants were purchased. each purchas
being accompanied by covenants o
| the part Of those who We're selling on
net to engage in the business OF man
ufacturing or selling tobacco With
from 10 tc 20 years in the Unite
| States. except Nevada and a territor
| IL two.
Finally he turned to the contract
I of tie American Tobacco Co., with til
called British Tobacco Trust, II
Imperial Tobacco Co.. by these con
tracts, he sud, the trade of the worl
in tobacco had been parcelled GU
between them. the American Trust
taking the United States and Cub
for it's own: British Tobacco Trust
Greas Britain AMI Ireland and tt
Isl. ol Nan; and the British Amel