The evening times. [volume] (Grand Forks, N.D.) 1906-1914, 1911-01-07

SOAS VA SuC Oo10
The suit under the Sherman anti
trust law to dissolve the so-called
Tobacco trust was instituted in
1907 IN the circuit courtfof the United
States for the southern district of
New York. The proceedings were
brought by the department Of Justice
against more than sixty corporations
and a number Of individual defend
ants headed by James B. Duke.
The process Of Organization Of the
combination alleged to be unlawful
spread over many years. It began in
January, 1890. Then the first Amer
lean Tobacco company was incorpor-
ated for the purpose. it Is alleged, Of
taking over the business Of five inde-
pendent cigarette plants.
In 1898, the Continental Tobacco
company was incorporated for the
alleged purpose of taking over the
plug-tobacco business of the Ameri-
can Tobacco company and the busi-
ness of five other plug tobacco con-
Germs. n
In 1900, the< s,.rtcan Snuff COM
,p,ny was organ.tate',r the alleged
.plypose of taking osss Etc.. snuff bus
mess of the American ~ &oo. COM
pany and Of two or three Il
ent snuff manufacturers. O.,
In 1901, the American Cigar COM,
pany was incorporated for the alleged
purpose of taking over the cigar bus
mess of the American Tobacco CON-
pany and an Independent manufac-
turer of cigars.
In the same year the Consolidated
Tobacco company was incorporated
for the alleged purpose of taking
over as holding company in ex-
change for its bonds substantially all
of the sstock Of the American Tobac-
co company and the Continental To-
bacco company.
In 1908, the American stogie COM
pany was incorporated for the alleged
purpose Of taking over the stogie
business of the American Cigar COM
pany, the American Tobacco company
and the Continental Tobacco COM
pany.
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.
1t is alleged that in addition "a.
this organization the American COM
panies in 1902 entered into contract
with British company, the Imperial
Tobacco company, whereby the Amer
ican companies were limited in their
business to American and the British
to Great Britain, except that the lat
ter could buy leaf f1tobAcco.i In the Unit
ed States. It was alleged that the
British American company was or
ganized to take over the export bus
mess of both the British and the
American companies.
Testimony was presented to prove
that the defendants produced seventy
per cent of the smoking tobacco made
in this country seventy-three per cent
Of the cigarettes; eighty -one per cent
of the plug and twist tobacco; eighty
one per cent of the fine-cut tobacco;
eighty mine per cent of the little Gig
ars ninety-six per cent of the snuff;
ninety-five per cent Of the licorice
paste; seventy five per cent of the tin
foil and most of the tobacco extracts,
boxes and containers.
Three of the four judges Of the cir
cult bench united in decree. This
decree dismissed the petition as to
the Imperial company and the Brit
ish-American company and the United
Cigar Stores company, which was
claimed to be the retail branch of the
organization. This action formed one
of the grounds for appeal by the gov
ernment to the supreme court.
The decree adjudged the other de-
PENDANTS to be parties to an unlawful
combinations but said nothing about
the monopolizing charges. This fail
ure furnished another ground for
appeal by the government. The
American Tobacco sompany the
American Snuff company, the Ameri-
can Cigar company. P. Lorillard COM
pany, r. ]. Reynolds Tobacco COM
pany, Blackwell's Durham Tobacco
company and the Conley Foil company
were adjudged to hold shares in a
number of specified tobacco corpor-
ations and enjoined them from ac-
puiring the plants or business or
voting the shares of and from exer-
cising control over these subsidiary
companies.
The defendants appealed to the sup
rene court because the petition Of
the government was not dismissed in
total.