The Waxahachie daily light. [volume] (Waxahachie, Tex.) 1894-current, 1911-05-29

IS 4 SWEEPING DECISION


Associated Press Special
Washington Maf 2e The tni-
ted States supreme court thia after
noon la decision held the Ameri-
cau Tobacco company ihe so-csllea
tobacco tfusi to be q combination Boz
restraint of rade and Ia violation of
sections one aud t&o of the sher-
man antitrust law
The American Tobacco corpora
iions were made the target 81 The
second big trust prosecution OF
recent years The first was the
standard Oh Because the testimony
takea ia the tobacco case was not so
extensive as that ia the Standard
OIL. the Two cases were before the
supreme court for consideration at
the same time
The attempt OF tha government 70
( dissolve the tobacco corporation as
violating the sherman anti-trus,
I law took shape In 1917 In tina
year, a petition was filed in the Uni
ted states circuit court at New York
The government asked that the A ~
I erican Tobacco company. it's Officers,
/ dire tors and AFFILIATED corpora
tions, be prevented and enjoined
from restraining and monopolizing
commerce in tobacco
The restraints and the monopo-
said to have been obtained by an
intricate system of corporate organ
ization 1t began in 1890, when the
first American Tobacco company
was organized The new company
took over the business of five indie
pendent cirgarette concerns
IN 1898, the Continental Tobacco
company was Incorporated to take
over the plug tobacco business Of the
American Tobacco company and that
of five Independent plug manufac-
turers
In 1900, the American Snuff
company was incorporated TO take
over the snuff business Of the Amer
lean Tobacco company, of the Con-
tinental Tobacco company, and Of
two other Independent manufactur-
ers
In 1901, the American Cigar com
pany was incorporated to take over
| the business of the American Tobac-
co company and other manufactur-
eFs and sellers OF cigars, cheroots
and stogies
/ In the same year, the Consolidat-
| ed Tobacco company was incorpofa-
| ted to take over in exchange for its
| bonds substantially all of the stock
of the American Tobacco company
and the Continental Tobacco com
! pany
! In 1903, the American Stogie
I company was incorporated to take
over the stogie business of the Am
erican Cigar company, the American
| Tobacco company, and the CONT
mental Tobacco company.
In 1904, the American Tobacco
company, the Continental Tobacco
company, and the Consolidated To
bacco company were merged later
into the present American Tobaeco
company. :
4 The government claimed that all
these organizations We're created
\ with the definite purpose to destroy
competition and that they aecomp'
s 1ished that purpose Each step was
attacked as part of an unlawful
plan whose development and prog
ress was advanced. it was charged
bsS duress, oppression, and unfail
methods intended to drive out anc
keep out competitors and secure
monopoHes.
The defendants claimed that moth
ing was to be found in the organiza
ton of these corporations, but the
orderly, natural and legitimate de
velopment of a great business. The!
said the acquisitions had been prop
er and that no intent to restrain
trade or monopolize trade haC
prompted the creation of corpora
lions
In addition. ii was charged tina
the American Tobacco company &C
quired control OF the United
Cigar Stores company, which con
duets retail stores in large cities