Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1911-01-07
CLUB OVER
TOBACCO TRUST
CONTINUED from First Pase5

OF taking over the plug tobacco business
OF the American Tobacco company and the
business OF five other plug tobacco con-
Germs.
In 1900 the American Snuff company was
Incorporated for the alleged purpose OF
taking over the snuff business Of the Amer
lean Tobacco company and Of two or throo
Independent snuff manufacturers.
In 1901 the American Cigar company was
incorporated for the alleged purpose OF
taking over the cigar business Of the
American Tobacco company and an indie
pendent manufacturer Of cigars.
In the same year the Consolidated To-
baoco company was Incorporated for the
alleged purpose Of taking over as a hold
ing company in exchange for its bonds
substantially all OF the stock OF the Amer
lean Tobacco company and the Continental
Tobacco company.
In 1903 the American StOgie company was
Incorporated for the alleged purpose Of
taking over the stogie business of the
American Cigar company, the American
Tobacco company and the Continental To-
bacco company.
In 1904 the American Tobacco company
the Continental Tobacco company and the
0bhoollAdNNu AObdNIo 'NoiuphnA were
merged into the present American To-
becoo company.
Contract with British Company.
It is alleged that in addition to this or
sanitation the American companies in 1909
entered into a contract with British com
pany, the Imperial TOBACCO company,
whereby the, American companies were
limited in their business TO America and
the British to Great Britain, except that
the latter could buy leaf tobacco in the
United States, II was alleged that the
Briush-American Tobacco company was
organized to take over the export business
Of both the British and the American
companies.
Testimony was presented to prove that
the defendants produced 70 per cent Of the
smoking tobacco made in this country, "a
per cent Of the cigarettes. 81 per cent Of the
fine cut tobacco, 50 per cent OF the little
! cigars, 90 per cent Of the snuff, IS per
cent OF the licorice paste, rs per cent OF
the tinfoil and most OF the tobacco ex-
! tracts, boxes and containers.
Three Of the four judges on the circuit
bench united in a decree. This decree dis
missed the petition as TO the Imperial COM
| pany and the sh-American company
anu the OhiNou OABdIs olo1eS Company
which was claimed to be the retail branch
OF the organization. This action formed
one OF the grounds for appeal by the gov
eminent TO the supreme court.
The decree adjudged the other defend
ants to be parties to an unlawful
combination, but said nothing about
the monopolizing charges. This. failure
furnished another ground for appeal
\ By the government. The American
Tobacco company, the American Snuff
company. the American Cigar company.
P. .Lorillard company r. j. Reynolds To-
baceo company, Blackwell's Durham To
bacco company and the Conley Foil com.
pany were adjudged to hold shares in u
number Of specified tobacco corporations
and enjoined them from acquiring the
/ plants or business or voting the shares OF
and from exercising control over these
subsidiary companies. The government
was dissatisfied because the holding COM
panies were not enjoined from collecting
dividends from the subsidiary companies.
The defendants appealed to the supreme
court because the petition OF the govern
ment was notl dismissed to1toto.